Morro Bay City Council
June 25, 2024

CITY OF MORRO BAY
City Council Regular Meeting Agenda

Tuesday, June 25, 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 Presentation of "Parks Make Life Better Month" 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.
•
Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering.
•
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.
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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.e.

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

1. May 28, 2024 - Special City Council Meeting 7

2. May 28, 2024 - Regular Council Meeting 10

3. June 11, 2024 - Special Closed Session Meeting 17

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

1. Proclamation declaring July 2024 as "Parks Make Life Better Month"
19 7.c General Municipal Election Resolutions for November 5, 2024 Election 20 (City Clerk)
Recommended Action
Adopt Resolution No. 35-24 calling a general municipal election for November 5, 2024, and requesting consolidation of the election with the County, and Resolution No. 36-24 adopting regulations for candidate statements; and

1. Adopt Resolution No. 37-24 allowing for the filing of rebuttal arguments to the primary written arguments in support of and opposing Measure A-24.

2. 7.d Resolutions approving Tentative Agreements and Successor MOUs for Morro Bay Peace Officers Assoc., SEIU Local No. 620, and Morro Bay Firefighters Assoc., and approving salaries and benefits for Unrepresented Confidential, Management, and Department Heads 30 (City Manager)
Recommended Action
Staff recommends the City Council:

Adopt Resolution No. 38-24 approving the Tentative Agreement for and Successor Memorandum of Understanding (MOU) as

1.

agreed to by the Morro Bay Police Officers Association
(“MBPOA”) with an effective date of July 1, 2024.

Adopt Resolution No 39-24 approving the Tentative Agreement for and Successor Memorandum of Understanding (MOU) as
agreed to by the SEIU (Service Employees International Union) Local No. 620 with an effective date of July 1, 2024.

2. Adopt Resolution No. 40-24 approving the Tentative Agreement for, and Successor Memorandum of Understanding (MOU) as agreed to by the Morro Bay Firefighters Association (MBFFA) with an effective date of July 1, 2024.

3. Adopt Resolution No. 41-24 approving the unrepresented Confidential employees' salary and benefits resolution effective July 1, 2024.

4. Adopt Resolution No. 42-24 approving the unrepresented Management employees' salary and benefits resolution with an effective date of July 1, 2024.

5. Adopt Resolution No. 43-24 approving the unrepresented Department Head employees' salary and benefits resolution with an effective date of July 1, 2024.

6. The terms of the proposed MOUs (Memorandum of Understanding) and Resolutions are within the authority parameters approved by the Council in closed session. Each union's membership has voted on and approved the proposals.

7.e Adopt Resolution No. 44-24 Revising the Terms of the City's Reimbursement Agreement with the California Governor's Office of Emergency Services to add the Deputy Chief and Seasonal Firefighter Job Classifications
195
(Fire Department)
Recommended Action
Adopt Resolution No. 44-24 rescinding and replacing Resolution No. 62- 21 and revising the terms of the City’s reimbursement agreement to include the classifications of Deputy Chief and Seasonal Firefighter.

8. PUBLIC HEARING ITEMS

8.a Adoption of Resolution No. 45.24 Directing the Levy of the Annual Assessment for the Cloisters Landscaping and Lighting Maintenance Assessment District
199
(Public Works Department)
Recommended Action
Conduct the public hearing and approve the levy of the annual

assessment for the Cloisters Landscaping and Lighting Maintenance Assessment District (LLMAD) by adopting Resolution No. 45-24.

8.b Adoption of Resolution No. 46-24 Directing the Levy of the Annual Assessment for the North Point Natural Area Landscaping and Lighting Maintenance Assessment District
204
(Public Works Department)
Recommended Action
Conduct the public hearing and approve the levy of the annual assessment for the North Point Natural Area Landscaping and Lighting Maintenance District (LLMAD) by adopting Resolution No. 46-24.

9. BUSINESS ITEMS

9.a Resolutions Approving Fiscal Year (FY) 24-25 Operating and Capital Budgets; FY 24-25, FY 25-26 and FY 26-27 Salary Schedules; New Job Classifications; Investment Policy; and FY 24-25 GANN Appropriations Limit
208
(City Manager/Finance Department)
Recommended Action
Staff recommends the City Council:

Adopt Resolution No. 47-24 adopting the Fiscal Year (FY) 2024-25 Operating and Capital Budgets; and

1. Adopt Resolution No. 48-24 approving the FY 2024-25, FY 2025-26, and FY 2026-27 Salary Schedules; and

2. Adopt Resolution No. 49-24 approving Recreation Specialist and Assistant to the City Manager/Public Relations Manager Job Classifications and Job Descriptions; and

3. Adopt Resolution No. 50-24 readopting the City’s Investment Policy; and

4. Adopt Resolution No. 51-24 setting the FY 2024-25 GANN Appropriations Limit at $35,461,193.

5. 9.b Council Consideration to Affirm Staff Authority to Execute Amendment to State Revolving Fund (SRF) Construction Loan Agreement 368
(Public Works Department)
Recommended Action
Affirm Staff Authorization to execute an amendment to the SRF Construction Loan Agreement (Loan Amendment) with the State Water Resources Control Board for a needed extension of the Construction Completion Date and SRF loan repayment dates, as well as providing for additional budget for WTTP decommissioning and demolition. This Amendment is required to be executed by June 30, 2024, by the State

Water Board.

10. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS

11. ADJOURNMENT
The July 9, 2024 Regular Meeting has been canceled. The next Regular Meeting will be held on July 23, 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

SPECIAL MEETING OF CITY COUNCIL
May 28, 2024, 3:00 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
Administrative Programs Manager Melissa Green
_____________________________________________________________________

1. ESTABLISH QUORUM AND CALL TO ORDER
Mayor Wixom called the meeting to order at 3:06 p.m. with all members present.

2. PUBLIC COMMENT FOR ITEMS ON THE AGENDA
https://youtu.be/LP4MkziW-bs?si=g7Mvz5B4_pPjIaJj&t=54
Mayor Wixom opened public comment for items on the agenda:
 Bill Luffee, Morro Bay, suggested transient occupancy tax and sales tax projections were too low and surplus was too high and that adjusting those figures would free up funds for other purposes. He also recommended the City increase funding for pavement and focus on 4 - 5 capital projects per year.
 Terry Simons, Morro Bay, was concerned the emphasis was on raising rates rather than seeking opportunities to reduce costs.  Barry Branin, Morro Bay, questioned the continued need for the WRF surcharge.

2 The public comment period was closed.

3. SPECIAL MEETING AGENDA ITEM(S)

3.a Budget Study Session - Review of Fiscal Year 2024-25 Draft Proposed Budget
https://youtu.be/LP4MkziW-bs?si=XakSnA1Tiaurjfgv&t=414
Finance Director Conrad and Administrative Programs Manager Green presented the Draft Proposed FY 2024-25 Operating and Capital Budget and responded to Council inquiries.

Following discussion and consideration of Citizen Finance Advisory Committee recommendations, there was Council consensus to continue funding the Harbor Patrol Officer Reserve Program from Measure E, and to increase funding for the Annual Pavement Management Program by reallocating $350,000 from Sidewalk Improvements and Local Roadway Safety Plan. The Council was supportive of the requested changes to fulltime and part-time staffing.

Mayor Wixom adjourned the meeting at 5:17 p.m. and announced the meeting would reconvene either after the conclusion of the Regular Meeting or on Wednesday, May 29th.

Following the Regular Meeting, there was consensus to continue the Special Meeting to Wednesday, May 29th, at 4:00 p.m. at the Morro Bay Veterans Hall.

The Council reconvened on Wednesday, May 29th, at 4:03 p.m. with all members present.
https://youtu.be/ZG0WwW2pQQM?si=PJEe_kRVt6-8CBfu&t=8
Mayor Wixom reopened public comment for items on the agenda. https://youtu.be/ZG0WwW2pQQM?si=qlYc5QDIAlQ54Zdy&t=42
 Terry Simons, Morro Bay, questioned available revenues to cover the $3.5 Million annual payment for the WRF.

The public comment period was closed.

The Council directed staff to allocate an additional $1 Million from Emergency Reserves to the Annual Pavement Management Program for a revised total funding of $1.6 Million. Staff requested flexibility on the funding source and offered to bring forward a recommendation for consideration during budget adoption.

No formal action was taken by the City Council.

4. ADJOURN
The meeting adjourned at 5:02 p.m.

3 _________________________
Dana Swanson
Clerk

1 MINUTES - MORRO BAY CITY COUNCIL

REGULAR MEETING
May 28, 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
_____________________________________________________________________

1. ESTABLISH QUORUM AND CALL TO ORDER
Mayor Wixom called the meeting to order at 5:34 p.m. with all members present.

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/BJGlrriNBDU?si=uR1E7K9BYJ9ksBlX&t=107

4.c City Manager Reports, Announcements and Presentations https://youtu.be/BJGlrriNBDU?si=iqezB8Usn3aVphN1&t=1125

2 4.d Subcommittee Reports
https://youtu.be/BJGlrriNBDU?si=MMilOO8O_OJb1GU2&t=1923 a. Water Reclamation Facility & Morro Bay / Cayucos Sanitary District JPA
b. Morro Bay Power Plant (Vistra)
c. Offshore Wind Energy
d. Downtown Design District

5. RECOGNITION AND PRESENTATIONS

5.a Hunger Awareness Day Proclamation
https://youtu.be/BJGlrriNBDU?si=5bsS6yKwuwwsVjwA&t=2246 Mayor Wixom announced the recipient was unable to attend tonight's meeting.

5.b Fitness Works Proclamation
https://youtu.be/BJGlrriNBDU?si=5Eqera0nVlDkaLhY&t=2258 Presented to owners, Debbie Kaloi-Pettit and Joe Pettit.

5.c Safe Boating Week Proclamation
https://youtu.be/BJGlrriNBDU?si=ZRhRLYLZeuKoU5ck&t=2544 Presented to Harbor Patrol Supervisor, Becka Kelly.

6. PUBLIC COMMENT
https://youtu.be/BJGlrriNBDU?si=W4aIf7bt_TYZhkNw&t=2734  Christine Robertson, San Luis Coastal Education Foundation, introduced Madi Funk and Bowie Marshall, 5th Grade students at Del Mar Elementary who, along with Principal Michael Wood, appreciated the City's financial support that allowed them to attend Camp Ocean Pines.  Larry Truesdale, Morro Bay, commented on his analysis of BESS facility failures.
 June McIvor, Community Engagement Manager for Invenergy, thanked Mayor Wixom, Mayor Pro Tem Landrum, Harbor Director Schiafone and City Manager Kimball for the tour and encouraging open dialogue regarding offshore wind.
 Linda Winters, Morro Bay, hoped residents acknowledged those who served our country this Memorial Day and expressed gratitude for the Fitness Works crew and City staff.

3  Natalie Teichmann, Cayucos resident and Morro Bay business owner, proposed to purchase City-owned property at 781 Market Ave.  Neil Portlock, Cambria, spoke in support of Let's Get Tuned studio.  Garry Johnson, Morro Bay, commented on potential causes of lithium ion battery fires and failures.
 Jon Nowaczyk, co-owner of the business at 781 Market Ave., commented on the value of Let's Get Tuned studio.
 Grace Leonti, Morro Bay, shared her vision for a mural at the Atascadero Road underpass.
 Annette Logan, Cambria, spoke in support of Let's Get Tuned studio.  An unnamed resident commented on various events that occurred in the month of May.
 Steve Ray, Morro Bay, announced an event in support of Measure A-24 sponsored by Citizens for Estero Bay Preservation to be held Saturday, June 1st, at the Morro Bay Community Center. He also encouraged residents to attend Coastal Commission Meetings being held June 12 - 14 at the Inn at Morro Bay.
 Jon Henry, Cambria, spoke in support of Let's Get Tuned studio.  Seychelles Cannes, Morro Bay, invited everyone to attend June 1st kick off event for Measure A-24.
 Jeff Eckles, Morro Bay, inquired about the return on investment for the Ironman event and encouraged the Council to hold budget meetings in the evening.
 Betty Winholtz, Morro Bay, questioned business license renewal fees and encouraged the City to hold closed session and special meetings on a different day rather than in the afternoon prior to regular meetings.  Terry Simons, Morro Bay, commented on the Ironman event and various issues from the budget study session.
 Nicole Dorfman, Morro Bay, encouraged the Council to split up closed session and regular meetings and shared information from the BOEM report regarding environmental impacts of offshore wind.  Jonathan Stoff urged the City to allow Let's Get Tuned to remain at its current location.
 Julia Thompson, Board President for Gala Pride & Diversity Center, appreciated the City's recognition and support for Pride Month.  Judy Setting, Morro Bay, spoke against the proposed BESS Project.

4  Don Maruska, San Luis Obispo County resident and Morro Bay business owner, spoke in support of Item 7.d. and offered to support the City's efforts by facilitating outreach events.

End of public comment.

7. CONSENT AGENDA
https://youtu.be/BJGlrriNBDU?si=DS7ohIpk3y0OhEjD&t=6162 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.

Mayor Wixom opened public comment for the consent agenda; seeing none, the public comment period was closed.

Motion by Council Member Barton
Seconded by Council Member Landrum
Approve Consent Agenda Items 7.a through 7.g as submitted.

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. May 14, 2024 Special Closed Session Meeting
b. May 14, 2024 Regular Meeting

7.b Approval of Proclamations
Approve as submitted.
a. Proclamation declaring June 7, 2024 to be "Hunger Awareness Day" b. 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
c. Proclamation declaring National Safe Boating Week May 18 through May 24, 2024
d. Proclamation declaring June 2024 as Pride Month

7.c Presentation of Allocation of Water Equivalency Units (WEU) for Fiscal Year (FY) 2024/25

5 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 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
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
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
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

9. BUSINESS ITEMS

9.a Short-Term Rental Ordinance Implementation Update
https://youtu.be/BJGlrriNBDU?si=x8EY7tvwckh6G0Uk&t=6187

6 Interim Community Development Director Codron presented the report and responded to Council inquiries.

Mayor Wixom opened public comment on Item 9.a.
https://youtu.be/BJGlrriNBDU?si=K7wOqc2wjpXuncG_&t=8360  Garrett Key, Morro Bay, shared his experience on the short-term rental (STR) wait list and frustration with lack of staff communication.
 Michelle Leicester-Cadaret, Morro Bay, offered comments and suggestions for addressing illegal STRs.
 Jeff Eckles, Morro Bay, appreciated the City's requirement signage be legible from the street and suggested the City develop an app that identifies permitted STRs.
 Terry Simons, Morro Bay, urged the City to aggressively pursue compliance or abandon the ordinance.
 Nicole Dorfman, Morro Bay, asked how to distinguish STRs from unhosted hotels, favored increased fines for violations, and hoped to incentivize those who have STRs to convert them to long-term rentals.
 Helene Finger, Morro Bay, offered suggestions for modifying the workflow (Attachment 2) and urged the City to make public the list of current permit holders and those on the waitlist.

End of public comment.

Staff responded to comments raised during public comment.

Following discussion, there was Council concurrence to direct the following efforts:
 Prioritize and bring forward recommendations for increased fines to be codified in Chapter 1 of the Morro Bay Municipal Code,  Bring forward recommended changes to the fee structure for homeshare rentals,
 Bring forward recommendations for addressing non-compliant properties,
 Offer digital signage template meeting the City's requirements for optional use by property owner/manager, and
 Following solid implementation of the existing ordinance, produce and make available to the public a complete, accurate and verifiable list of permitted STRs and the waitlist.

7 No formal action was taken by the City Council.

10. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS
https://youtu.be/BJGlrriNBDU?si=Wut3w7-A9iVq-AWy&t=11210 Council Member Landrum requested discussion and consideration of revised sign regulations as it pertains to political signs. It was agreed there would be no immediate action on this item.

Council Member Landrum requested consideration of a ban on the use of Glysophate in public spaces. There was Council support to have the Public Works Advisory Board review the issue and make a recommendation to Council.

11. ADJOURNMENT
The meeting adjourned at 8:47 p.m.
/s/ Dana Swanson, City Clerk

1 MINUTES - MORRO BAY CITY COUNCIL

CLOSED SESSION MEETING
June 11, 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
Finance Director Emily Conrad
Public Works Director Greg Kwolek
Harbor Director Ted Schiafone
Human Resources/Risk Manager Rachael Hendricks
Harbor Business Coordinator Lori Thompson
_____________________________________________________________________

1. ESTABLISH QUORUM AND CALL TO ORDER
Mayor Wixom called the meeting to order at 3:00 p.m. with all members present.

2. SUMMARY OF CLOSED SESSION ITEMS

3. CLOSED SESSION PUBLIC COMMENT
Tara Patterson, Morro Bay, offered comments on item 4.c and shared that she is a tenant of Bayfront Marina and hopes the City and Master Lease Holder can come to a solution.

4. THE COUNCIL WILL CONVENE IN CLOSED SESSION

4.a CONFERENCE WITH LABOR NEGOTIATORS
City Designated Representatives: Rachael Hendricks, Human Resources/Risk Manager; Yvonne Kimball, City Manager
Employee Organizations: Morro Bay Firefighters' Association; and Unrepresented Employees

4.b CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION

2 Significant exposure to litigation pursuant to Government Code subdivision 54956.9(d)(2): One Matter

4.c CONFERENCE WITH REAL PROPERTY NEGOTIATOR - GOVENMENT CODE SECTION 54956.8
Property: Lease Site 30W-33W, 201 Main Street, WBAM LLC., Bayfront Marina
Property Negotiators: Craig and Kathy Shafer (WBAM, LLC) Agency Negotiators: Ted Schiafone, Harbor Director; Yvonne Kimball, City Manager; and Chris Neumeyer, City Attorney
Negotiation: Price and Terms of Payment

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 5:05 p.m.

Respectfully submitted,
/s/ Heather Goodwin, Deputy City Clerk

A PROCLAMATION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY
DECLARING JULY 2024
AS “PARKS MAKE LIFE BETTER MONTH”

CITY COUNCIL
City of Morro Bay, California
WHEREAS, Parks and Recreation promotes physical, emotional, and mental health and wellness through organized and self-directed fitness, play, and activity; and WHEREAS, Parks and Recreation supports the economic vitality of communities by partnering with local businesses and non-profits, and offering events for resident’s engagement; and WHEREAS, Parks and Recreation creates memorable experiences through youth sports and enrichment activities, teen centers and programs, senior activity centers, adult fitness and enrichment programs, free community events, and beyond; and
WHEREAS, Parks and Recreation fosters social cohesiveness in communities by celebrating diversity, providing spaces to come together peacefully, modeling compassion, promoting social equity, connecting social networks, and ensuring all people have access to its benefits; and WHEREAS, Parks and Recreation supports human development and endless learning opportunities that foster social, intellectual, physical, and emotional growth in people of all ages and abilities; and WHEREAS, Parks and Recreation strengthens community identity by providing facilities and services that reflect and celebrate community character, heritage, culture, history, aesthetics, and landscape; and WHEREAS, Parks and Recreation facilitates community problem and issue resolution by providing safe spaces to come together peacefully and serving as key points of service, helping our communities heal both physically and emotionally; and
WHEREAS, Parks and Recreation sustains and stewards our natural resources by protecting habitats and open space, connecting people to nature, and promoting the ecological function of parkland; and WHEREAS, Parks and Recreation supports safe, vibrant, attractive, progressive communities that make life better through positive alternatives offered in their recreational opportunities; and WHEREAS, Parks and Recreation remains versatile and innovative in providing vital services to communities through local, national, or global emergencies, all while adhering to guidelines set forth by governing agencies; and
WHEREAS, The California Park & Recreation Society has released a statewide public awareness campaign, “Parks Make Life Better!®” to inform citizens of the many benefits of utilizing parks, facilities, programs, and services.

NOW THEREFORE, BE IT RESOLVED, that the City Council of the City of Morro Bay recognize the importance of access to local parks, trails, open space, and facilities for the health, wellness, development, inspiration, and safety of all residents and declares July 2024 as “Parks Make Life Better!®” Month.

IN WITNESS WHEREOF I have hereunto
set my hand and caused the seal of the City
of Morro Bay to be affixed this 25
th day of
June 2024

CARLA WIXOM, MAYOR
City of Morro Bay, California
AGENDA NO: 7.b.1
MEETING DATE: June 25, 2024

Prepared by: DS Dept Review: _______
City Manager Review: CM City Attorney Review: LNL
Staff Report
TO: Honorable Mayor and City Council DATE: June 17, 2024 FROM: Dana Swanson, City Clerk
SUBJECT: General Municipal Election Resolutions for November 5, 2024 Election

RECOMMENDED ACTION

1. Adopt Resolution No. 35-24 calling a general municipal election for November 5, 2024, and requesting consolidation of the election with the County, and Resolution No. 36-24 adopting regulations for candidate statements; and

2. Adopt Resolution No. 37-24 allowing for the filing of rebuttal arguments to the primary written arguments in support of and opposing Measure A-24.

FISCAL IMPACT
The estimated cost for calling and holding a general municipal election on November 5, 2024 for the election of the mayor and two council members is approximately $30,000 and the estimated cost for submitting proposed Measure A-24 to the qualified voters is $5,000. This sum has been provided for in the City Clerk’s Proposed FY 2024/25 Budget.

BACKGROUND/DISCUSSION
In order to initiate the election process for a general municipal election to be held on Tuesday, November 5, 2024, two resolutions are presented for consideration by the Mayor and City Council.

These two resolutions are pursuant to the provisions of law relating to elections in General Law Cities, in the State of California.

Resolution Calling for a General Municipal Election for November 5, 2024:

The first resolution calls and gives notice of the General Municipal Election to be held on November 5, 2024, for the election of the position of Mayor for a full term of two years, and two members of the City Council for full terms of four years each, and further requests that the County Board of Supervisors consolidate the General Municipal Election with the statewide general election to be held on the same date. Services provided by the County in a consolidated election include ballot creation, printing, mailing, collection, and counting, voter registration, and voting site operation. The City’s request for consolidation commits to reimbursing the County for its costs associated with consolidation.

The formal nomination period for candidates will run from July 15 through August 9, 2024, and the filing deadline will be extended to August 14, 2024, if an incumbent does not file. Information regarding the 2024 Election will be available on the City website.

AGENDA NO: 7.c
MEETING DATE: June 25, 2024

01181.0001/478309.1 CFN
Resolution Adopting Regulations for Candidate Statements:

The second resolution adopts regulations pertaining to candidate’s statements to be submitted to the electorate prepared by any candidate for a municipal election, including the costs of such materials, foreign language translations as required by state law, and provision that the candidate’s statements may be 200 words (the City Council may authorize 200 words or 400 words, pursuant to Election Code § 13307(a)(1)).

Resolution allowing for Rebuttal Arguments to the Primary Arguments filed in Support of and Opposing Measure A-24:

In September 2023, the City Council adopted Resolution No. 61-23 calling for a General Municipal Election for the submission of Measure A-24 (proposed Ordinance 659) to the qualified voters of the City, and Resolution No. 62-23 setting priorities for filing primary arguments for and against the proposed measure and directing the City Attorney to prepare an Impartial Analysis. The proponents of the measure would be expected to file an argument in favor of the proposed measure and, pursuant to Election Code section 9282, the Council had the option but declined to appoint one or two Council members to write an argument against the ballot measure. Perhaps based on that decision, the Council declined at that time to adopt a resolution allowing for the filing of rebuttal arguments to the primary written arguments.

The previously formed General Purpose Committee, Citizens for Estero Bay Preservation, has been redesignated as a Primarily Formed Committee in support of Measure A-24 and is expected to file a written argument in favor of Measure A-24 that will be printed in the voters’ information guide. A Committee Against Morro Bay Initiative Measure A-24 has also been established and is expected to file a written argument against Measure A-24. In order to provide registered voters a more thorough understanding of both perspectives, it is recommended the City Council adopt Resolution No. 37-24 allowing for rebuttal arguments to be filed. If adopted, the proponents and opponents of Measure A24 would have 10 calendar days to review the primary arguments and file rebuttals to those arguments with the City Clerk’s office for publishing in the voters’ information guide.

CONCLUSION
Staff recommends Council approve the two election Resolutions Nos. 35-24 and 36-24 for the holding of a general municipal election on November 5, 2024, and adopt Resolution No. 37-24 allowing for the filing of rebuttal arguments to the primary written arguments in support of and opposing Measure A-24.

ATTACHMENTS

1. Proposed Resolution No. 35-24 calling for a General Municipal Election for Nov 5, 2024

2. Proposed Resolution No. 36-24 adopting Regulations for Candidate Statements

3. Proposed Resolution No. 37-24 allowing for Rebuttal Arguments for/against Measure A-24

4. Link to adopted Resolutions No. 61-23 and 62-23.

01181.0001/799609.1
RESOLUTION NO. 35-24

RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA,

CALLING FOR THE HOLDING OF A GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 5, 2024, FOR THE PURPOSE OF ELECTING

CERTAIN OFFICERS OF SAID CITY AS REQUIRED BY THE PROVISIONS OF THE LAWS

OF THE STATE OF CALIFORNIA RELATING TO GENERAL LAW CITIES AND MORRO BAY MUNICIPAL CODE SECTION 2.09.010; AND, REQUESTING THE BOARD OF

SUPERVISORS OF SAN LUIS OBISPO COUNTY TO CONSOLIDATE SAID ELECTION

WITH THE STATEWIDE GENERAL ELECTION TO BE HELD IN THE COUNTY ON TUESDAY, NOVEMBER 5, 2024 PURSUANT TO SECTION 10403 OF THE ELECTION CODE; AND, OTHER ELECTION MATTERS AS REQUIRED BY LAW

T H E C I T Y C O U N C I L
City of Morro Bay, California
WHEREAS, Measure “J-14” was passed by the citizens of Morro Bay at the election held in November 2014 and codified as Resolution No. 78-14, amending Morro Bay Municipal Code Section 2.09.010 to have the General Municipal Election held at the time of the Statewide General Election; and
WHEREAS, under the provisions of the laws relating to the general law cities in the State of California and Morro Bay Municipal Code Section 2.09.010, a General Municipal Election shall be held on Tuesday, November 5, 2024 for the purpose of the election of two (2) members of the City Council of the City of Morro Bay for the full term of four (4) years, and for the election of one (1) Mayor of the City Council of the City of Morro Bay for the full term of two (2) years; and WHEREAS, it is desirable that said General Municipal Election be consolidated with the Statewide General Election to be held on the same date and that within the City of Morro Bay the precincts, polling places and election officers of the two elections be the same, and that the County Election Department of the County of San Luis Obispo canvass the returns of the General Municipal Election and that the election be held in all respects as if there were only one election.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. That pursuant to the requirements of the laws of the State of California and Morro Bay Municipal Code Section 2.09.010, there is called and ordered to be held in the City of Morro Bay, California, on Tuesday, November 5, 2024 a General Municipal Election for the purpose of electing two (2) members of the City Council of the City of Morro Bay for the full term of four (4) years, and for the purpose of electing one (1) Mayor of the City Council of the City of Morro Bay for the full term of two (2) years.

SECTION 2. That the ballots to be used at the election shall be in form and content as required by law.

SECTION 3. That the City Clerk is authorized, instructed and directed to coordinate with the County of San Luis Obispo Clerk-Recorder to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the election.

Resolution No. 35-24

01181.0001/799609.1
SECTION 4. That the voting sites for the election shall be open at such hours and on such days as determined by the San Luis Obispo County Clerk Recorder (Registrar of Voters) provided that the opening and closure of voting sites is conducted in accordance with Sections 10242 and 14401 of the Elections Code of the State of California.

SECTION 5. That in all particulars not recited in this resolution, the election shall be held and conducted as provided by law for holding municipal elections.

SECTION 6. That notice of the time and place of holding the election is given and the City Clerk is authorized, instructed and directed to give further or additional notice of the election, in time, form, and manner as required by law.

SECTION 7. That pursuant to the requirements of Section 10403 of the Elections Code, the Board of Supervisors of the County of San Luis Obispo is hereby requested to consent and agree to the consolidation of a General Municipal Election with the Statewide General Election on Tuesday, November 5, 2024, for the purpose of the election of one (1) Mayor, and two (2) Members of the City Council.

SECTION 8. That the County Election Department is authorized to canvass the returns of the General Municipal Election. The election shall be held in all respects as if there were only one election, and only one form of ballot shall be used.

SECTION 9. That the Board of Supervisors is requested to issue instructions to the County Election Department to take any and all steps necessary for the holding of the consolidated election.

SECTION 10. That the City of Morro Bay recognizes that additional costs will be incurred by the County by reason of this consolidation and agrees to reimburse the County for any costs.

SECTION 11. That the City Clerk is hereby directed to file a certified copy of this Resolution with the Board of Supervisors and the County Election Department of the County of San Luis Obispo.

SECTION 12. The City Council authorizes the City Clerk to administer said election and all reasonable and actual election expenses shall be paid by the City upon presentation of a properly submitted bill.

SECTION 13. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original resolutions. //
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Resolution No. 35-24

01181.0001/799609.1
SECTION 14. This Resolution is effective on the day of its adoption.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 25
th day of June 2024 following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

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

01181.0001/799616.1
RESOLUTION NO. 36-24

RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA,

ADOPTING REGULATIONS FOR CANDIDATES FOR ELECTIVE OFFICE,

PERTAINING TO, AND COSTS OF, CANDIDATE STATEMENTS SUBMITTED

TO THE VOTERS AT THE CONSOLIDATED GENERAL MUNICIPAL
ELECTION TO BE HELD ON TUESDAY, NOVEMBER 5, 2024

THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, California Elections Code section 13307 provides the governing body of any local agency shall adopt regulations pertaining to materials prepared by any candidate for a municipal election, including costs of each candidate statement.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. General Provisions. Pursuant to California Elections Code section 13307, each candidate for elective office to be voted for at the Consolidated General Municipal Election to be held in the City of Morro Bay on November 5, 2024, may prepare a candidate's statement on an appropriate form provided by the City Clerk. Such statement may include the name, age, and occupation of the candidate and a brief description, not exceeding 200 words, of the candidate's education and qualifications expressed by the candidate himself/herself. Such statement shall not include party affiliation of the candidate, nor membership or activity in partisan political organizations. The statement shall be filed in the City Clerk’s Office at the time the candidate's nomination papers are filed. The statement may be withdrawn, but not changed, during the period for filing nomination papers and until 5:00 p.m. of the next working day after the close of the nomination period.

SECTION 2. Foreign Language Policy.
a. Candidates have the option to have their statement translated into another language and printed at an additional cost. Translation will be performed by the County of San Luis Obispo prior to publication.
b. Pursuant to the Federal Voting Rights Act, candidate’s statements will be translated into all languages as required by the County of San Luis Obispo. c. The County will mail separate sample ballots and candidates’ statements in non-English languages (as required by the Federal Voting Rights Act) to only those voters who are on the county voter file as having requested a sample ballot in a particular language. The County will make the sample ballots and candidates statements in the required languages available at all polling places, on the County’s website, and in the Election Official’s office.

SECTION 3. Payment.
a. Each candidate is required to pay for the cost of translating and printing his/her candidate statement in English and Spanish (and any language as required by the

Resolution No. 36-24

01181.0001/799616.1
Federal Voting Rights Act and/or State law) in the voters’ pamphlet. b. The City Clerk shall estimate the total cost of printing, handling, translating, and mailing each candidate statement filed pursuant to this section, including costs incurred as a result of a candidate choosing to translate a statement into another language, and including costs incurred as a result of complying with the Voting Rights Act of 1965, as amended, and require each candidate filing a statement to pay in advance to the City of Morro Bay his/her estimated pro rata share as a condition of having his/her statement included in the voters' pamphlet. The estimate is an approximation of the actual cost that varies from one election to another and the actual cost may be significantly more or less than the estimate, depending upon the actual number of candidates filing statements. Accordingly, the City Clerk is not bound by the estimate and may, on a pro rata basis, bill each candidate for additional actual expense, or refund any excess paid, depending upon the final actual cost. In the event of underpayment, the City Clerk shall require the candidate to pay the balance of the cost incurred. In the event of overpayment, within 30 days after the election, the City Clerk shall pro-rate the excess amount among the candidates and refund to each candidate his/her share of the excess amount.

SECTION 4. Additional Materials. No candidate is permitted to include additional materials in the sample ballot package.

SECTION 5. Miscellaneous.
a. All translations shall be provided by professionally-certified translators pursuant to state and federal law.
b. The Elections Official shall comply with all recommendations and standards set forth by the California Secretary of State regarding occupational designations and other matters relating to elections.

SECTION 6. The City Clerk shall provide each candidate, or his/her representative, a copy of this resolution at the time nominating petitions are issued.

SECTION 7. All previous resolutions establishing City Council policy on payment for candidate statements are hereby rescinded.

SECTION 8. This resolution applies only to the election to be held on November 5, 2024, and shall then be rescinded.

SECTION 9. The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original resolutions.
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Resolution No. 36-24

01181.0001/799616.1
SECTION 10. Effective Date. This Resolution is effective on the day of its adoption.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 25
th day of June 2024 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

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

RESOLUTION NO. 37-24

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA,

PROVIDING FOR THE FILING OF REBUTTAL ARGUMENTS REGARDING THE SUBMISSION OF ORDINANCE NO. 659(B) TO THE QUALIFIED VOTERS OF THE CITY AS A PROPOSED MEASURE A-24

THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, a General Municipal Election is to be held in the City of Morro Bay, California, on November 5, 2024, at which there will be submitted to the voters a ballot measure to consider adopting Ordinance No. 659(b) entitled, “Initiative Measure to Amend City of Morro Bay’s General Plan (Plan Morro Bay), adopted by City Council on May 25, 2021, to prohibit, unless approved by Morro Bay Voters, any change to Land Use Designations of Visitor-Serving Commercial or Commercial/Recreational Fishing, on Certain designated Parcels within the City”; and WHEREAS, California Elections Code § 9285 authorizes the City Council, by majority vote, to adopt provisions to provide for the filing of rebuttal arguments regarding City measures submitted at municipal election;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

Section 1. That pursuant to Elections Code § 9285, when the City’s elections official has selected the arguments for and against the foregoing measure, which will be printed and distributed to the voters, the City’s elections official shall send copies of the argument in favor of the measure to the authors of the argument against, and copies of the argument against to the authors of the argument in favor. The author or a majority of the authors of an argument relating to the foregoing city measure may prepare and submit a rebuttal argument not to exceed two hundred and fifty (250) words in length. A rebuttal argument may not be signed by more than five (5) authors. The rebuttal arguments shall be filed with the City Clerk not more than ten (10) days after the final date for filing direct arguments. The final date for filing direct arguments is July 19, 2024, and thus such rebuttal arguments shall be filed with the City Clerk no later than the close of business on Friday, August 2, 2024. The rebuttal arguments shall be accompanied by the Form of Statement to be Filed by Author(s) of Argument as provided for in California Elections Code § 9600. Rebuttal arguments shall be printed in the same manner as the direct arguments.

Each rebuttal argument shall immediately follow the direct argument which it seeks to rebut.

Section 2. That all previous resolutions providing for the filing of rebuttal arguments for City measures are repealed.

Section 3. That the provisions of Section 1 of this Resolution shall apply only to the General Municipal Election to be held on November 5, 2024, and shall then be repealed.

RESOLUTION NO. 37-24
PAGE 2 OF 2
2 Section 4. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions. This Resolution shall be effective immediately upon passage and adoption.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Morro Bay, California, at a regular meeting held on the 25th day of June 2024.

AYES:

NOES:

ABSENT:

ABSTAIN:

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

Prepared By: RH, EC________ Dept Review: _________
City Manager Review: YK_____ City Attorney Review: _ASF__ Staff Report
TO: Honorable Mayor and City Council DATE: June 20, 2024 FROM: Yvonne Kimball, City Manager
PREPARED BY: Rachael Hendricks, Human Resources/ Risk Manager Emily Conrad, Finance Director
SUBJECT: Resolutions approving Tentative Agreements and Successor MOUs for Morro Bay Peace Officers Assoc., SEIU Local No. 620, and Morro Bay Firefighters Assoc., and approving salaries and benefits for Unrepresented Confidential, Management, and Department Heads

RECOMMENDED ACTION
Staff recommends the City Council:

1. Adopt Resolution No. 38-24 approving the Tentative Agreement for and Successor Memorandum of Understanding (MOU) as agreed to by the Morro Bay Police Officers Association (“MBPOA”) with an effective date of July 1, 2024.

2. Adopt Resolution No 39-24 approving the Tentative Agreement for and Successor Memorandum of Understanding (MOU) as agreed to by the SEIU (Service Employees International Union) Local No. 620 with an effective date of July 1, 2024.

3. Adopt Resolution No. 40-24 approving the Tentative Agreement for, and Successor Memorandum of Understanding (MOU) as agreed to by the Morro Bay Firefighters Association (MBFFA) with an effective date of July 1, 2024.

4. Adopt Resolution No. 41-24 approving the unrepresented Confidential employees' salary and benefits resolution effective July 1, 2024.

5. Adopt Resolution No. 42-24 approving the unrepresented Management employees' salary and benefits resolution with an effective date of July 1, 2024.

6. Adopt Resolution No. 43-24 approving the unrepresented Department Head employees' salary and benefits resolution with an effective date of July 1, 2024.

The terms of the proposed MOUs (Memorandum of Understanding) and Resolutions are within the authority parameters approved by the Council in closed session. Each union's membership has voted on and approved the proposals.

ALTERNATIVES
The Council may choose not to adopt the proposed Resolutions and provide alternative direction to staff.

AGENDA NO: 7.d
MEETING DATE: June 25, 2024

FISCAL IMPACT
The proposed MOU changes align with the Council’s previously authorized allocations for Cost-ofLiving Adjustments (COLA), market and internal equity adjustments, and benefits changes. If all MOUs and resolutions are approved, the total cost to the City in Fiscal Year (FY) 2024-25 will be approximately $765,000.

BACKGROUND
The City has three represented employee associations or bargaining groups: the Service Employees International Union (SEIU) for miscellaneous employees, the Morro Bay Peace Officers Association (MBPOA), and the Morro Bay Firefighters Association (MBFFA). Additionally, the City has three unrepresented employee groups: Management, Confidential, and Department Heads. All groups have contracts or resolutions that expire June 30, 2024.

The City’s negotiating team and employee groups started meeting in early spring to negotiate on successor MOUs (Memorandum of Understanding) with all labor negotiations for successor contracts completed. Historically, the City prepares updates to the unrepresented groups' salaries and benefits with a resolution after the represented employee groups have negotiated, typically following the COLAs received by the SEIU group.

In comparison with previous negotiations, this round of negotiations stood out for a few reasons:
 The negotiations were led by employees. This approach differs from that of legal counsel driven. Employee-led negotiations fosters trust, supports team building and promotes leadership development. This method would not have been successfully implemented without the talented and dedicated team of employees and the support from the City Council.  The agreements are valid for a 3-year term, allowing additional time to focus on operational priorities.
 Addresses the 2023 Classification and Compensation Study.

DISCUSSION
Labor negotiations typically result in compensation increases for employees. This year is no exception. As stated above, the recent Classification and Compensation Study played a critical role in this year’s bargaining discussions. In 2022, the City began to conduct a Classification and Compensation Study, which was completed in 2023. This Study found that the City of Morro Bay's compensation for many classifications lagged behind comparable cities. Both the City and employee bargaining groups entered this year’s negotiations with the expectation of some level of equality adjustments to address the study's findings. While the proposed increases will not fully bring City employee compensation to the market median, they represent a significant step toward the goal of remaining competitive and aiding in retention and recruitment efforts.

Overall, the Agreements and the Resolutions contain salary increases across all employee groups.

These increases address the following key work-force related factors:
 Competitive Compensation: To attract and retain qualified professionals in a competitive job market.
 Addressing Turnover: High turnover rates lead to increased recruitment and training costs and loss of institutional knowledge, which affects operational efficiency.  Cost of Living Adjustments: Regular COLAs are necessary to help employees cope with

inflation and maintain their purchasing power.
 Equity Adjustments: The compensation study highlighted significant disparities that need to be addressed to ensure fair and competitive wages.
 Recognition and Incentives: Introducing new incentives and increasing existing ones acknowledges City employees' hard work and dedication, fostering a more motivated and stable workforce.

By implementing these changes, the City of Morro Bay continues to create a more attractive and competitive work environment, ultimately benefiting the community through improved services and stability. The proposed adjustments are a strategic investment in the City’s most valuable asset—its employees, who deliver the services to the citizens and visitors of Morro Bay.

Morro Bay Peace Officers Association (MBPOA)
MBPOA represents a total of 15 police officers and sergeants. The Police Department has had significant recruitment and retention challenges. For example, the City has had an open Police Sergeant position for more than 1.5 years, with very few qualified applicants applying and none making it through the background and offer process. The average tenure of a Police Officer in the City of Morro Bay is currently 2.2 years, which is extremely low. The primary reason cited for Police Officers leaving the City of Morro Bay or not accepting a position is low compensation.

The recent 2023 Classification and Compensation Study with data effective July 1, 2023, found that our Police Officer and Police Sergeant positions were compensated lower than all comparable agencies except one. That agency implemented equity adjustments in September 2023, of 12.5% for Police Officers and 15% for Police Sergeants, further widening the gap and placing Morro Bay below every other comparable agency. This proposed MOU works towards getting the police officers and police sergeants closer to market with COLA and market equity adjustments over three years.

Highlights of the changes in the FY2025 – FY2027 MBPOA MOU are as follows:
 Three-year contract, effective July 1, 2024 – June 30, 2027.  COLA (Cost of Living Allowance): The terms of the MOU provide for a 4% wage increase effective at the beginning of the pay period that contains July 1st of each year. o 4% July 1, 2024
o 4% July 1, 2025
o 4% July 1, 2026
 Market Equity Adjustments: To work towards becoming more competitive for recruitment and retention purposes the City will provide a phased approach towards market equity. Effective the beginning of the pay period that contains July 1 each year, as follows:
o 4% July 1, 2024
o 3% July 1, 2025
o 3% July 1, 2026
 POST (Police Officer Standards Training) Education Pay – Modest increases to Police Officer Standards and Training (POST)
o Intermediate POST certificate- $230 to $275 a month
o Advanced POST certificate- $230 to $275
o Supervisors (Sergeants only) certificate- $140 to $200  Health Insurance—Retain the current health insurance cafeteria contribution model, which is

the same for all employee groups.
 Deferred Compensation 457 retirement plan contribution o 2:1 match up to $1200 per year. This amount is equivalent to what SEIU and the Morro Bay Fire Fighters Association receive.
 Retention Incentive Program: Implement a retention incentive program based on years of sworn Morro Bay Police Department service. The proposed Retention Incentive Program aims to boost long-term retention, by creating a stronger incentive for officers to stay with the Morro Bay Police Department (MBPD). The program also recognizes MBPD employees' experience and loyalty, reduces recruitment and training costs, and improves institutional knowledge and continuity. The program is a strategic investment that aims to address the critical issue of retention at MBPD, while fostering a stable and experienced workforce, ultimately leading to improved public safety.

The program provides for pay incentives as follows:
o Upon completion of the 3rd year of sworn Morro Bay Police Department experience, a 2% premium
o Upon completion of the 9th year of sworn Morro Bay Police Department experience, a 4% premium
o Upon completion of the 15th year of sworn Morro Bay Police Department experience, a 6% premium
SEIU (Service Employees International Union) Local No. 620 SEIU includes 50 employees, covering a wide range of essential City services. Employees under this unit often are assigned to remain “on standby” to report beyond normal work hours. The proposed MOU includes COLAs to assist with inflation, ensure employees can maintain their standard of living, and further assist in closing the gap to median market wages, Additionally, the introduction of a longevity incentive for those employees that have 10 or more years of service and modest adjustments to Standby Pay recognizes the dedication and availability of our SEIU employees. SEIU requested adding Juneteenth as a holiday acknowledging with state and federal recognition of this day.

Highlights of the changes in the FY2025 – FY2027 SEIU MOU are as follows:
 Three-year contract, effective July 1, 2024 – June 30, 2027.  COLA (Cost of Living Allowance): The terms of the MOU provide for a 5% wage increase effective at the beginning of the pay period that contains July 1st of each year.  5% July 1, 2024
 5% July 1, 2025
 5% July 1, 2026
 Longevity Incentive – Create a longevity incentive for SEIU employees who have served the City for ten or more years.
 After 10 years of employment, $25 per year will go into the employee’s deferred compensation plan. This amount is NOT (Public Employee Retirement System) PERSable. Example: Employees with 10 years of service will receive 10 years x $25 = $250 into their deferred compensation retirement account. If an employee has 14 years of service, they will receive 14 x $25 = $350 annually into their deferred compensation account. This amount would be credited once per year in September.  Health Insurance—Retain the current health insurance cafeteria contribution model, which is

the same for all employee groups.
 Addition of the Federal Holiday Juneteenth to the City’s holidays for the SEIU group.  Standby Pay Increase – For those employees who are assigned Standby Duty, the City shall increase the standby pay rate to $50 a day for weekdays and $60 per day for weekends and holidays.

Morro Bay Firefighters Association
The Morro Bay Firefighters Association (MBFFA) consists of 13 employees, including Firefighters, Fire Engineers, and Fire Captains. Fire personnel face unique challenges and risks, necessitating competitive compensation to attract and retain skilled professionals. The proposed MOU includes both COLAs and phased market equity adjustments, addressing disparities identified in the compensation study. Improvements in vacation accrual rates and the introduction of longevity pay incentives further recognize the demanding nature of their work and support our fire personnel's retention.
 Three-year contract, effective July 1, 2024 – June 30, 2027.  COLA (Cost of Living Allowance): The terms of the MOU provide for a 3% wage increase effective at the beginning of the pay period that contains July 1st of each year.  3% July 1, 2024
 3% July 1, 2025
 3% July 1, 2026
 Market equity adjustments phased over three years.
 5% July 1, 2024
 3% July 1, 2025
 3% July 1, 2026
 Incremental increase to vacation hours to median annual vacation hours of agencies surveyed. This adjustment would increase vacation hours by 45 hours annually for those with 21+ years of service. For those at 4 years of service, it would increase hours by 4.5 hours annually.
 Longevity pay incentive of:
 After 20 years of service – 1%
 After 25 years of service – 2%
 After 30 years of service – 3%
 Health Insurance—Retain the current health insurance cafeteria contribution model, which is the same for all employee groups.
 Educational incentive
 $1,000 annually for those with Bachelor’s degree
 $2,000 annually for those with Master’s degrees (no MBFFA employee has this degree currently)
 Bilingual incentive pay
 Add bilingual incentive pay, with the same benefit as the MBPOA and SEIU, $75 a month for written Spanish and $75 a month for verbal Spanish.

Unrepresented Confidential, Management, and Department Head Employees The group includes 27 unrepresented employees, including all Managers (17), Confidential (four), and Department Heads (six). Historically, their compensation has been adjusted by

mirroring SEIU’s COLAs and benefits increases. While not included in this resolution, the City Manager’s compensation has also historically been adjusted with the same COLA as SEIU.

Unlike SEIU, unrepresented employees did not receive equity adjustments following the 2023 Classification and Compensation Study. The high turnover in these roles highlights the need for competitive compensation to maintain institutional knowledge and operational continuity. The current average tenure of Department Heads is now 2.4 years, Management employees have an average tenure of 6.6 years, and Confidential employees have an average tenure of 1.75 years, which is comparably low for employees in the public sector. Almost all employee departures cited the need for increased salaries and benefits as their rationale for moving to other agencies.

Highlights of the changes in the FY2025 – FY2027 Unrepresented Salary and Benefits Resolutions are as follows:
 Three-year unrepresented salary and benefits resolution  COLAs of 5% each year on July 1
 The addition of the Juneteenth holiday
 Health Insurance – maintain our current model for all employees. o 100% lowest cost PPO for employee only, 90% for employee + 1, and 89% for employee + family
 Equity adjustments to classifications found to be under-market in the 2023 Classification and Compensation Study:
o Phased equity adjustments for Police Commander – these adjustments equate to the same percentage increases the MBPOA are receiving considering COLAs.
 July 1, 2024 – 3% equity adjustment
 July 1, 2025 – 2% equity adjustment
 July 1, 2026 – 2% equity adjustment
o Phased equity adjustments for Deputy Fire Chief/Fire Marshall – these adjustments equate to the same percentage increases that the MBFFA are receiving considering COLAs.
 July 1, 2024 – 3% equity adjustment
 July 1, 2025 – 1% equity adjustment
 July 1, 2026 – 1% equity adjustment
o Phased equity adjustments for the following management classifications:

Accounting Manager, Chief Building Inspector/Plans Examiner, City Clerk, Information Technology Manager, Planning Manager, Recreation Services Manager, Human Resources/Risk Manager, and Senior Civil Engineer.  July 1, 2024 – 3% equity adjustment
 July 1, 2025 – 2% equity adjustment
 July 1, 2026 – 2% equity adjustment
 Longevity incentive to deferred compensation (same as SEIU). o For those with 10+ years of service, $25 each service year into their deferred compensation. (No CalPERS cost.) At present, only three Management employees qualify for this benefit.

CONCLUSION
Staff believes that the proposed MOUs and resolutions represent a fair and responsible agreement that addresses the needs of both the City and its represented Police, SEIU, Fire and unrepresented employees. Staff recommends the City Council adopt Resolution No. 38-24, Resolution No. 39-24, and Resolution No. 40-24 approving the Tentative Agreements and the Successor MOUs to the MBPOA, SEIU, and MBFFA groups as tentatively agreed to and Resolution 41-24, Resolution No. 42-24, and Resolution No. 43-24 approving the salaries and benefits for the City’s unrepresented groups.

As the City Manager, I would like to express my gratitude to the City’s negotiation team, the employee bargaining groups, and other employees for their tremendous effort in completing the negotiations.

The proposed agreements and resolutions embody a great deal of trust, skills, and commitment to collaboration and long-term partnerships. I also want to thank this Council for your tireless involvement, sage wisdom and thoughtful guidance throughout these often stressful negotiation processes. It is the outstanding teamwork among all stakeholders and our collective dedication to our city that has brought us to this milestone. I look forward to our continued success together.

ATTACHMENTS

1. MBPOA Resolution No. 38-24
a. Exhibit 1 – MBPOA MOU 2024-2027 Tentative Agreement
b. Exhibit 2 – MBPOA MOU 2024-27

2. SEIU Resolution No. 39-24
a. Exhibit 1 – SEIU MOU 2024-2027 Tentative Agreement
b. Exhibit 2 – SEIU MOU 2024-27

3. MBFFA Resolution No. 40-24
a. Exhibit 1 – MBFFA MOU 2024-2027 Tentative Agreement
b. Exhibit 2 -- MBFFA MOU 2024-27

4. Unrepresented Confidential Employees Resolution No. 41-24

5. Unrepresented Management Employees Resolution No. 42-24

6. Department Heads Resolution No. 43-24

01181.0026/799029.1
RESOLUTION NO. 38-24

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA,

APPROVING THE TENTATIVE AGREEMENT FOR AND THE SUCCESSOR

MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF MORRO BAY AND THE MORRO BAY PEACE OFFICERS’ ASSOCIATION
FOR THE PERIOD OF JULY 1, 2024 THROUGH JUNE 30, 2027

T H E C I T Y C O U N C I L
City of Morro Bay, California
WHEREAS, the City of Morro Bay (“City”) has, and continues to recognize the Morro Bay Peace Officers’ Association (“MBPOA”), as the sole exclusive employee organization representing the City’s employees designated as being in the Law Enforcement Unit, including the classifications of Police Officer, Senior Officer and Sergeant, for all matters concerning wages, hours, and other terms and conditions of employment; and WHEREAS, the current Memorandum of Understanding (“MOU”) between the City and MBPOA (“MBPOA MOU 2022-2024), which was duly approved by the City Council on June 28, 2022, is set to expire on June 30, 2024; and
WHEREAS, the City and MBPOA entered into negotiations for a successor MOU covering the period of July 1, 2024 through June 30, 2027; and
WHEREAS, the City’s labor relations representatives and the MBPOA representatives successfully met and conferred to negotiate both a Tentative Agreement for the successor MOU and also the successor MOU between the parties, pursuant to both the Meyers-Milias-Brown Act (“MMBA”) (Gov’t Code Section 3500-3511) and the City’s Employer-Employee Relations Resolution, Resolution No. 08-17, and have jointly prepared and executed the attached Tentative Agreement (“MBPOA MOU 2024-2027 Tentative Agreement”), and the successor MOU between the City and MBPOA, for the period July 1, 2024 through, and including, June 30, 2027 (“MBPOA MOU 2024-2027”), which were ratified by MBPOA on or about May 10, 2024; and WHEREAS, the MBPOA MOU 2024-2027 Tentative Agreement and MBPOA MOU 2024- 2027 are subject to City Council acceptance and approval, which are made a part hereof by this reference; and
WHEREAS, once approved by the City Council, the MBPOA MOU 2024-27 shall become binding agreements between the City and MBPOA.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, AS FOLLOWS:

Section 1. The above recitals are true and correct.

Section 2. The City Council approves the MBPOA MOU 2024-2027 Tentative Agreement between the City and MBPOA for the period of July 1, 2024 through, and including June 30, 2027, a copy of which is attached hereto as Exhibit 1.

Section 3. The City Council approves the MBPOA MOU 2024-2027 as the successor MOU between the City and MBPOA for the period of July 1, 2024 through, and including, June 30, 2027, a copy of which is attached hereto as Exhibit 2.

Section 4. The City Clerk shall certify the passage and adoption of this Resolution and enter it into the book of original resolutions.

Section 5. This resolution shall be effective immediately upon its passage and adoption.

PASSED AND ADOPTED, by the City Council of the City of Morro Bay, at a regular meeting thereof held on the 25th day of June 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSE:

________________________________________
CARLA WIXOM, Mayor
ATTEST:
______________________________
DANA SWANSON, City Clerk

RESOLUTION NO. 39-24

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA,

APPROVING THE TENTATIVE AGREEMENT FOR AND THE SUCCESSOR

MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF MORRO BAY AND THE SERVICE EMPLOYEES INTERNATIONAL UNION (SEIU), LOCAL 620, FOR THE PERIOD OF JULY 1, 2024 THROUGH JUNE 30, 2027

T H E C I T Y C O U N C I L
City of Morro Bay, California
WHEREAS, the City of Morro Bay (“City”) has, and continues to, recognize the Service Employees International Union (“SEIU”), Local 620, as the sole exclusive employee organization representing the City’s miscellaneous employees for all matters concerning wages, hours and other terms and conditions of employment; and
WHEREAS, the current Memorandum of Understanding between the City and SEIU Local 620 (“SEIU MOU 2022-2024”), which was duly approved by the City Council on June 1, 2022, is set to expire on June 30, 2024; and
WHEREAS, the City and SEIU Local 620 entered into negotiations for a successor MOU covering the period of July 1, 2024 through June 30, 2027; and WHEREAS, the City’s labor relations representatives and the SEIU Local 620 representatives successfully met and conferred to negotiate both a Tentative Agreement for the successor MOU and also the successor MOU between the parties, pursuant to both the MeyersMilias-Brown Act (“MMBA”) (Gov’t Code Section 3500-3511) and the City’s Employer-Employee Relations Resolution, Resolution No. 08-17, and have jointly prepared and executed the attached Tentative Agreement (“SEIU MOU 2024-2027 Tentative Agreement”), and the attached successor MOU between the City and SEIU, for the period July 1, 2024 through, and including, June 30, 2027 (“SEIU MOU 2024-2027”), which were ratified by SEIU Local 620 on May 29, 2024; and
WHEREAS, the SEIU MOU 2024-2027 Tentative Agreement and the SEIU MOU 2024-27 are subject to City Council acceptance and approval by formal resolution of the City Council; and WHEREAS, the MMBA requires pursuant to Government Code Section 3505.1 as follows:
“If a tentative agreement is reached by the authorized representatives of the public agency and a recognized employee organization or recognized employee organizations, the governing body shall vote to accept or reject the tentative agreement within 30 days of the date it is first considered at a duly noticed public meeting. A decision by the governing body to reject the tentative agreement shall not bar the filing of a charge of unfair practice for failure to meet and confer in good faith. If the governing body adopts the tentative agreement, the parties shall jointly prepare a written memorandum of understanding.” WHEREAS, once approved by resolution of the City Council, the SEIU MOU 2024-2027 Tentative Agreement and the SEIU MOU 2024-27 shall become binding agreements between the City and SEIU Local 620.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, AS FOLLOWS:

Section 1. The above recitals are true and correct.

Section 2. The City Council approves the SEIU MOU 2024-2027 Tentative Agreement between the City and SEIU Local 620 for the period of July 1, 2024 through, and including, June 30, 2027, a copy of which is attached hereto as Exhibit 1.

Section 3. The City Council approves the SEIU MOU 2024-2027 as the successor MOU between the City and SEIU for the period of July 1, 2024 through, and including, June 30, 2027, a copy of which is attached hereto as Exhibit 2.

Section 4. The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original resolutions.

Section 5. This resolution shall be effective immediately upon its passage and adoption.

PASSED AND ADOPTED, by the City Council of the City of Morro Bay, at a regular meeting thereof held on the 25th day of June 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSE:

________________________________________
CARLA WIXOM, Mayor
ATTEST:
______________________________
DANA SWANSON, City Clerk

01181.0026/799029.1
RESOLUTION NO. 40-24

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA,

APPROVING THE TENTATIVE AGREEMENT FOR AND THE SUCCESSOR MEMORANDUM

OF UNDERSTANDING BETWEEN THE CITY OF MORRO BAY AND THE
MORRO BAY FIREFIGHTERS ASSOCIATION, IAFF LOCAL 3725
FOR THE PERIOD OF JULY 1, 2024 THROUGH JUNE 30, 2027

T H E C I T Y C O U N C I L
City of Morro Bay, California
WHEREAS, the City of Morro Bay (“City”) has, and continues to, recognize the Morro Bay Firefighters Association, IAFF Local 3725 (“MBFFA”), as the sole exclusive employee organization representing the City’s fire fighting employees as defined by the parties in their labor agreements, for all matters concerning wages, hours and other terms and conditions of employment; and
WHEREAS, the current Memorandum of Understanding (“MOU”) between the City and MBFFA covering the period July 1, 2022 through June 30, 2024 was duly approved by the City Council on August 9, 2022 (“MBFFA MOU 2022-2024”); and
WHEREAS, the City and MBFFA entered into negotiations for a successor MOU covering the period of July 1, 2024 through June 30, 2027; and
WHEREAS, the City’s labor relations representatives and the MBFFA representatives successfully met and conferred to negotiate both a Tentative Agreement for the successor MOU and also the successor MOU between the parties, pursuant to both the Meyers-Milias-Brown Act (“MMBA”) (Gov’t Code Section 3500-3511) and the City’s Employer-Employee Relations Resolution, Resolution No. 08-17, and have jointly prepared and executed the attached Tentative Agreement (“MBFFA MOU 2024-2027 Tentative Agreement”), and the successor MOU between the City and MBFFA, for the period July 1, 2024 through, and including, June 30, 2027 (“MBFFA MOU 2024-2027”), both of which were ratified by MBFFA on or about June 13, 2024; and WHEREAS, the MBFFA MOU 2024-2027 Tentative Agreement and MBFFA MOU 2024-27 are both subject to City Council acceptance and approval; and WHEREAS, the MMBA requires pursuant to Government Code Section 3505.1 as follows:
“If a tentative agreement is reached by the authorized representatives of the public agency and a recognized employee organization or recognized employee organizations, the governing body shall vote to accept or reject the tentative agreement within 30 days of the date it is first considered at a duly noticed public meeting. A decision by the governing body to reject the tentative agreement shall not bar the filing of a charge of unfair practice for failure to meet and confer in good faith. If the governing body adopts the tentative agreement, the parties shall jointly prepare a written memorandum of understanding.” WHEREAS, once approved by the City Council the MBFFA MOU 2024-27 Tentative Agreement and the MBFFA MOU 2024-27 shall become binding agreements between the City and MBFFA.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, AS FOLLOWS:

Section 1. The above recitals are true and correct.

Section 2. The City Council approves the MBFFA MOU 2024-2027 Tentative Agreement between the City and MBFFA for the period of July 1, 2024 through, and including, June 30, 2027, a copy of which is attached hereto as Exhibit 1.

Section 3. The City Council approves the MBFFA MOU 2024-2027 as the successor MOU between the City and MBFFA for the period of July 1, 2024 through, and including, June 30, 2027, a copy of which is attached hereto as Exhibit 2.

Section 4. The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original resolutions.

Section 5. This resolution shall be effective immediately upon its passage and adoption.

PASSED AND ADOPTED, by the City Council of the City of Morro Bay, at a regular meeting thereof held on the 25th day of June 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSE:

_____________________________________
CARLA WIXOM, Mayor
ATTEST:
______________________________
DANA SWANSON, City Clerk

RESOLUTION NO. 41-24

RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA

AMENDING AND RESTATING THE PREVIOUSLY ADOPTED

COMPENSATION AND BENEFITS FOR THE UNREPRESENTED CONFIDENTIAL

DESIGNATED EMPLOYEES OF THE CITY OF MORRO BAY

T H E C I T Y C O U N C I L
City of Morro Bay, California
WHEREAS, Section 36506 of the California Government Code requires the City Council to fix the compensation of all appointive officers and employees by resolution or ordinance; and
WHEREAS, Morro Bay Municipal Code Section 2.20.020 also provides the salaries and compensation of officers and employees of the City of Morro Bay (“City”) shall be as fixed and determined by resolution of the City Council, except as specifically fixed in Chapter 2.20 of the Morro Bay Municipal Code; and
WHEREAS, the City has established a system of classification for all positions within the City service with descriptive occupational titles, used to identify and distinguish classifications and/or positions from one another, based on job duties, essential functions, knowledge, skills, abilities and minimum requirements; and WHEREAS, the Meyers-Milias-Brown Act (“MMBA”) (Government Code sections 3500 et seq.)1 governs labor relations between local government employers and employees and Section 3507.5 thereof permits a public agency to adopt local rules and regulations providing for the designation of the “confidential” employees of the public agency and restricting such employees from representing any employee organization, which represents other employees of the public agency, on matters within the scope of representation; and
WHEREAS, the City’s Employer-Employee Relations Resolution, Resolution No. 08- 17, represents the City’s adoption of local rules and regulations for the administration of employer-employee relations, including but not limited to the designation of “confidential” employees, defined as meaning those employees who are “privy to decisions of City management affecting employer-employee relations;” and
WHEREAS, the City has designated such “confidential” employees as more fully identified and listed herein below; and
WHEREAS, the “confidential” employees identified and listed herein are “unrepresented,” meaning that they are not part of any City Council-determined appropriate bargaining unit nor represented by any recognized employee organization as defined by the City’s Employer-Employee Relations Resolution and the MMBA; and WHEREAS, the City Council deems it is in the best interest of the City to adjust the compensation of the unrepresented confidential employees, whose titles are listed herein, 1 Unless otherwise stated, references to Sections will be to the Government Code.

Resolution No. 41-24

by a Cost of Living Adjustment (COLA) salary increase established by City Council for these employees for FY 2024/25, FY 2025/26, and FY 2026/27; and NOW, THEREFORE, BE IT RESOLVED that the Morro Bay City Council does hereby adopt this Resolution, amending and restating the previously adopted and amended schedule of compensation and benefits for the City of Morro Bay’s unrepresented confidential employees and superseding and replacing any prior compensation and benefits resolutions, contracts, agreements or memorandum for such employees, including but not limited to Resolution No. 34-17 as follows:

A. POSITION LIST
The following is a list of the authorized confidential positions:

Executive Assistant/Deputy City Clerk
Fiscal Analyst
Human Resources Analyst I
Human Resources Analyst II
Senior Accounting Technician
B. NORMAL WORK HOURS
Confidential employees work eight hours per day, five days per week, consistent with City business hours (unless participating in an alternative work schedule) and are subject to overtime compensation.

C. COMPENSATORY TIME OFF (“CTO”)
Confidential employees may take CTO in lieu of paid overtime. CTO may be accrued up to a maximum of sixty (60) hours. Once the maximum accrual is reached, excess overtime is paid at the time it is incurred, until the CTO accrual balance falls below the maximum accrual limit. CTO must be approved in advance by the employee’s Department Director.

D. ADMINISTRATIVE LEAVE
Confidential employees receive up to forty-five (45) hours in paid administrative leave annually in a lump sum accrual at the beginning of each fiscal year. The administrative leave bank may never accrue more than sixty-nine (69) total hours, limiting the number of hours credited to the employee’s administrative leave bank on July 1st of each year.

New confidential employees will be provided a pro-rata share of the annual fortyfive (45) hour accrual of administrative leave upon employment.

Administrative leave time must be taken off on an hour-for-hour basis equaling employee actual time off, regardless of accumulation rates. Administrative leave is a compensable leave, and any remaining hours in the employee’s bank will be paid out upon separation from City service, at the employee’s current hourly rate of pay.

Resolution No. 41-24

E. VACATION LEAVE
Confidential employees accrue vacation, based on the schedule below:

Service Years
Entitlement
in Days
1 thru 2 10
3 thru 4 11
5 thru 6 12
7 thru 8 13
9 thru 10 14
11 thru 12 15
13 thru 14 16
15 thru 16 17
17 thru 18 18
19 thru 20 19
21 or more 20
Confidential employees are subject to a maximum leave accumulation of two hundred twenty (220) hours. Any hours exceeding the maximum accumulation as of November 1st of each year will be paid out in the pay period including December 1 st.

Confidential employees will be provided an option to convert up to 40 hours of vacation into compensation per calendar year, subject to meeting the following requirements, provided that at the time of the conversion request at least 20 hours of vacation time remains in the employee's vacation bank. To be eligible for cash out of accrued vacation leave, an employee must pre-elect the number of vacation hours they will cash out, up to a maximum of 40 hours, by December 15 of the preceding calendar year. The election will apply only to vacation hours accrued in the next calendar year. The election to cash out vacation hours in each designated year is irrevocable. Confidential employees who elect to cash out vacation leave hours must cash out the number of accrued hours pre-designated on the irrevocable election form provided by the City. Employees who pre-designate cash out amounts may request a cash out at any time in the designated calendar year by submitting a cash out request at least 30 days in advance to Human Resources.

Human Resources will confirm the cash out amount has accrued and is consistent with the amount the employee pre-designated, then forward to payroll to complete the cash out request. If the full amount of hours designated for cash out is not

Resolution No. 41-24

available at the time of cash out request, the maximum available will be paid.

For Confidential employees who have not requested payment of the elected cash out amount by November 1 of each year, payroll will automatically cash out the predesignated amount in a paycheck issued on or after the payroll date including November 1. Additionally, the City may, prior to the end of the calendar year, automatically cash out the vacation leave accrued each pay period by an employee such that the vacation leave cash out is consistent with the employee’s pre-elected number of vacation leave cash out hours for that year.

Employees who do not pre-designate vacation leave cash out hours or who decline the cash opt option by the December 15 deadline will be deemed to have waived the right and will not be eligible to cash out any vacation leave in that year.

Vacation accrual is a compensable leave; any hours remaining in the employee’s vacation bank will be paid out upon separation from City service, at the employee’s current hourly rate of pay.

Vacation leave time must be taken off on an hour-for-hour basis equaling employee actual time off, regardless of accumulation rates.

F. HOLIDAYS
The following days are paid holidays for confidential employees:

Independence Day July 4th
Labor Day 1st Monday in September
Veteran's Day November 11th
Thanksgiving Day 4th Thursday in November
Day after Thanksgiving Friday after Thanksgiving
Christmas Day December 25th
New Year's Day January 1st
Martin Luther King, Jr. Day 3rd Monday in January
Spring Break Holiday Observed the Friday before Easter weekend Washington's Birthday 3rd Monday in February
Memorial Day Last Monday in May
Juneteenth June 19th
Floating Holiday Varies
Floating Holiday Varies
Any holiday, which falls on a Saturday or Sunday, will be officially designated as a “HOLIDAY” on the prior Friday (if Saturday) or Monday (if Sunday).

For confidential employees, one holiday equals eight hours unless the employee is working the 9/80 alternative work schedule, in which case one holiday may equal eight or nine hours depending on whether the normally scheduled work day is an eight- or nine-hour work day for that employee.

When a holiday is proclaimed by the Mayor of the City, each employee shall be

Resolution No. 41-24

granted time off in the same number of equivalent hours. Such time off shall be authorized by the Department Head.

Floating holiday hours are recorded in a bank in July of each fiscal year and may be carried over to the next fiscal year, to a maximum accumulation of forty-eight (48) hours of holiday time. Hours of holiday time accumulated over forty-eight (48) hours will be paid out in December.

Floating holiday pay is a compensable leave, and any remaining hours in the employee’s bank will be paid out upon separation from City service, at the employee’s current hourly rate of pay.

G. SICK LEAVE
All employees accrue ninety-six (96) hours per year in a sick leave bank to be used for employee illness, forty-eight (48) hours of which may be used in the care of the employee’s family member for illness or for any other reason mandated by law.

Upon retirement from City service, remaining unused sick leave converts to time served under the applicable contract between the City and the California Public Employees' Retirement System (“CalPERS”), if any.

Based on individual utilization of paid sick leave in the preceding calendar year, confidential employees may convert unused accumulated sick leave into paid vacation leave once per calendar year, pursuant to the formula below:

Sick Leave
Utilization
Sick Leave
Maximum
Conversion to
Vacation Leave
0 hours 96 hours 48 hours
.25 to 8 hours 72 hours 36 hours

8.25 to 16 hours 48 hours 24 hours

16.25 to 25 hours 24 hours 12 hours
Over 25 hours 0 hours 0 hours
At least one hundred sixty (160) accrued hours must remain in the confidential employee’s sick leave bank for an employee to be eligible for conversion or for a conversion to be authorized. In addition, the right to convert does not carry over or rollover from calendar year to calendar year; failure to request conversion in any calendar year eliminates the right to do so for that calendar year.

Upon the Service Retirement of a confidential employee, who has more than ten years of service with the City, said employee shall be entitled to receive payment for up to the first ninety days of their accrued sick leave at twenty-five percent of the employee's rate of pay, as of the date of service retirement. Unused sick leave converted to service credit for CalPERS purposes cannot be compensated (converted to dollars). Service Retirement is defined as service retirement from both the City and CalPERS. Voluntary separation or termination actions are excluded from this benefit.

Resolution No. 41-24

H. RETIREMENT BENEFITS
All employees enrolled in the CalPERS retirement system bear the risk of payment of any increases in the employee contribution above the current percentage made by the action of CalPERS, the California Public Employees Pension Reform Act of 2013 (“PEPRA”) or related legislation, and/or the State Legislature.

All employee CalPERS contributions are paid to CalPERS, based upon tax treatment currently permitted by the State Franchise Tax Board and the Internal Revenue Service (“IRS”).

The following is descriptive information on City CalPERS-contracted Miscellaneous retirement plans:

CalPERS Miscellaneous Plans
All employees pay 100% of the employee contribution to CalPERS, which is currently:

1. Tier 1 Classic members = 8%

2. Tier 2 Classic members = 7%

3. Tier 3 PEPRA members = one-half the normal cost of retirement (currently

6.75%)
Tier 1: All employees, who were hired prior to December 10, 2011, receive the following CalPERS retirement formula and optional benefits (existing Tier 1 employees, promoted to another position within the City, will not be considered new hires, with respect to retirement formulas):

1. 2.7% @ 55 formula (Section 21354.5)

2. Unused Sick Leave Credit (Section 20965)

3. Military Service Credit (Section 21024 & 21027)

4. Final Compensation 1 Year (Section 20042)

5. 1959 Survivor Benefit, Level 4 (Section 21574)

6. Pre-Retirement Option 2W Death Benefit (Section 21548) Tier 2: All employees, who were hired on or after December 10, 2011, but before January 1, 2013, and those hired on or after January 1, 2013, who meet the CalPERS definition of classic member as determined by CalPERS under PEPRA and related legislation receive the following CalPERS retirement formula and optional benefits:

1. 2% @ 60 formula (benefit factor increases to 2.418% @ 63+) (Section 21353)

2. Unused Sick Leave Credit (Section 20965)

3. Military Service Credit (Section 21024 & 21027)

4. Final Compensation 3 Years (Section 20037)

5. 1959 Survivor Benefit, Level 4 (Section 21574)

6. Pre-Retirement Option 2W Death Benefit (Section 21548) Tier 3: All employees, who were hired on or after January 1, 2013, and meet the definition of new member, as determined by CalPERS under PEPRA and related

Resolution No. 41-24

legislation pursuant to PEPRA, receive the following CalPERS retirement formula and optional benefits:

1. 2% @ 62 formula (benefit factor increases to 2.5% @ 67+) (Section 7522.20)

2. Final Compensation 3 Years (Section 20037)

3. Member contribution rate of fifty percent of the expected normal cost rate, which is currently 13.5% (6.75% is employee’s portion)

4. Unused Sick Leave Credit (Section 20965)

5. Military Service Credit (Section 21024 and 21027)

6. 1959 Survivor Benefit, Level 4 (21574)

7. Pre-Retirement Option 2W Death Benefit (Section 21548) Employee Cost Sharing: CalPERS Classic Member Tier 1 & 2 employees shall make a 1% cost sharing contribution to the employer’s contribution to CalPERS effective the first full payroll period after City Council approval of a CalPERS Contract Amendment providing for such payment commencing FY 23/24, but in no event sooner than the pay period including July 1, 2023.

I. HEALTH/LIFE/VISION/DENTAL INSURANCE
All employees receive the following contribution toward the purchase of CalPERS health insurance, which includes the required CalPERS monthly contribution:

City will pay an amount equal to 100% of Employee-only premium, 90% of Employee + one premium, and 89% of Employee + two or more (family coverage) premium for the lowest-cost PPO plan offered by CalPERS.

For calendar years 2024 and 2025, City will contribute 100% of the dental and vision premiums for Employees and their dependents.

City will pay up to a 5% increase in premiums for calendar year 2026 and up to a 5% increase for calendar year 2027 through the end of the 2027 calendar year.

Employees will pay for any increase beyond 5%.

Life insurance is provided at $50,000 per employee.

For retired employees, City contributes the required CalPERS monthly contribution towards CalPERS health plans, as selected by retiree.

J. DEFERRED COMPENSATION PROGRAM
Confidential employees receive a matching contribution up to $1,500, per calendar year, paid to employee’s deferred compensation plan, or approved retiree medical savings plan. City matching contributions are paid on a 2:1 basis (e.g., employee contributes $2, City matches $1).

K. LONGEVITY INCENTIVE
Once annually, for employees who have been continuously employed with City for ten (10) years of full-time employment, City shall contribute to the employee's

Resolution No. 41-24

deferred compensation plan (Section 457 account) $25 per year for each whole year of continuous full-time employment with City, plus an additional $25 per year for each whole year of continuous full-time employment completed after ten (10) years.

For example:

If an employee has been employed full-time with the City for 10 years, the City will contribute $250 that year ($25 for each year of continuous full-time employment).

If an employee has been employed full-time with the City for 14 years, the City will contribute $350 that year ($25 for each year of continuous full-time employment).

Whole years of full-time employment shall be determined on September 1st of each year.

Fractions of a year will be rounded down to the nearest whole year.

Deposits into the deferred compensation plan shall be made in one lump sum no later than the second pay period in September.

L. EDUCATION INCENTIVE
City will reimburse its confidential employees for costs associated with job-related and job-required certifications, correspondence courses, and/or licenses (except Class III driver’s license), upon successful completion of the examination or course by the employee. Written authorization, from the employee’s Department Director, is required in advance. Reimbursement includes application fees, examination fees, and certificate fees. Renewal fees may be paid in advance by City. This provision does not apply to continuing education requirements.

City will provide a City vehicle, when available, for required transportation, and will permit paid time for employee to take examinations, scheduled during normal working hours. If no City vehicle is available, employee may take their personal vehicle; however, no mileage payments are authorized of the use of personal transportation. Time spent, outside normal working hours, shall not be compensated.

M. COLLEGE DEGREES
Confidential employees, hired on or after January 1, 1998, shall not be eligible for this incentive.

For confidential employees, hired prior to January 1, 1998, City will pay the following education incentives, on base salary, for an Associate of Arts (“AA”) or Bachelor’s degree, unless the employee’s job description requires an AA or Bachelor’s degree, or the employee is promoted to a position requiring an AA or Bachelor’s degree:

1. AA degree = $600 annually

2. Bachelor’s Degree = $1,200 annually
N. COMPENSATION ADJUSTMENTS

Resolution No. 41-24

Annual Cost of Living Adjustments (COLA) and/or equity adjustments may be given to confidential employees, as recommended by the City Manager and approved by the City Council; though neither is guaranteed.

1. Effective the pay period including July 1, 2024, City shall provide a 5% COLA increase to base salaries for all confidential employees (see Exhibit A updated salary table).

2. Effective the pay period including July 1, 2025, City shall provide a 5% COLA increase to base salaries for all confidential employees (see Exhibit B updated salary table).

3. Effective the pay period including July 1, 2026, City shall provide a 5% COLA increase to base salaries for all confidential employees (see Exhibit C updated salary table).

O. SPECIAL PAY
Confidential employees, who are required by their supervisor to attend meetings, outside the normal work schedule, for the purpose of taking minutes of said meetings, shall be paid a minimum of four (4) hours at time and one-half, without regard for hours actually worked during the work week. Minutes, taken at meetings during regular work hours, shall be included in employee’s regular rate of pay, and not compensated beyond that.

PASSED AND ADOPTED, by the City Council of the City of Morro Bay, at a regular meeting thereof held on the 25th day of June 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

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

Resolution No. 41-24

ATTACHMENT A

CONFIDENTIAL PAY SCHEDULE
EFFECTIVE JULY 1, 2024

HOURLY RATES

POSITION
STEP
1 STEP
2 STEP
3 STEP 4
STEP
5 HUMAN RESOURCES ANALYST I

31.96 33.56

35.24 36.99

38.84 EXECUTIVE ASSISTANT/DEPUTY
CLERK

34.34 36.06

37.85 39.75

41.74 SENIOR ACCOUNTING TECHNICIAN

35.69 37.47

39.35 41.32

43.39 FISCAL ANALYST

38.43 40.35

42.37 44.49

46.71 HUMAN RESOURCES ANALYST II

38.43 40.35

42.37 44.49

46.71

Resolution No. 41-24

ATTACHMENT B

CONFIDENTIAL PAY SCHEDULE
EFFECTIVE JULY 1, 2025

HOURLY RATES

POSITION
STEP
1 STEP
2 STEP
3 STEP
4 STEP
5 HUMAN RESOURCES ANALYST I

33.56 35.24

37.00 38.84

40.78 EXECUTIVE ASSISTANT/DEPUTY CLERK

36.06 37.86

39.74 41.74

43.83 SENIOR ACCOUNTING TECHNICIAN

37.47 39.34

41.32 43.39

45.56 FISCAL ANALYST

40.35 42.37

44.49 46.71

49.05 HUMAN RESOURCES ANALYST II

40.35 42.37

44.49 46.71

49.05

Resolution No. 41-24

ATTACHMENT C

CONFIDENTIAL PAY SCHEDULE
EFFECTIVE JULY 1, 2026

HOURLY RATES

POSITION
STEP
1 STEP
2 STEP
3 STEP
4 STEP
5 HUMAN RESOURCES ANALYST I

35.24 37.00

38.85 40.78

42.82 EXECUTIVE ASSISTANT/DEPUTY CLERK

37.86 39.75

41.73 43.83

46.02 SENIOR ACCOUNTING TECHNICIAN

39.34 41.31

43.39 45.56

47.84 FISCAL ANALYST

42.37 44.49

46.71 49.05

51.50 HUMAN RESOURCES ANALYST II

42.37 44.49

46.71 49.05

51.50

01181.0004/991190.1
RESOLUTION NO. 42-24

RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA,

AMENDING AND RESTATING THE PREVIOUSLY ADOPTED

COMPENSATION AND BENEFITS FOR THE UNREPRESENTED MANAGEMENT

DESIGNATED EMPLOYEES OF THE CITY OF MORRO BAY

T H E C I T Y C O U N C I L
City of Morro Bay, California
WHEREAS, Section 36506 of the California Government Code requires the City Council to fix the compensation of all appointive officers and employees by resolution or ordinance; and
WHEREAS, Morro Bay Municipal Code Section 2.20.020 also provides the salaries and compensation of officers and employees of the City of Morro Bay (“City”) shall be as fixed and determined by resolution of the City Council, except as specifically fixed in Chapter 2.20 of the Morro Bay Municipal Code; and WHEREAS, the City has established a system of classification for all positions within the City service with descriptive occupational titles, used to identify and distinguish classifications and/or positions from one another, based on job duties, essential functions, knowledge, skills, abilities, and minimum requirements; and WHEREAS, the Meyers-Milias-Brown Act (“MMBA”) (Government Code sections 3500 et seq.)1 governs labor relations between local government employers and employees and Section 3507.5 thereof permits a public agency to adopt local rules and regulations providing for the designation of the “management” employees of the public agency and restricting such employees from representing any employee organization, which represents other employees of the public agency, on matters within the scope of representation; and
WHEREAS, the City’s Employer-Employee Relations Resolution, Resolution No. 08-17, represents the City’s adoption of local rules and regulations for the administration of employer-employee relations, including, but not limited to, the designation of “management” employees, summarized in brief from that resolution as generally defined as meaning those employees who have significant responsibilities for formulating and administering City policies and programs and the authority to exercise independent judgment to hire, discipline, promote discharge; assign, or transfer other employees or who have the responsibility to use independent judgment to direct such employees, adjust their grievances, or recommend personnel action; and
WHEREAS, the City has designated such “management” employees as more fully identified and listed herein below, and
1 Unless otherwise stated, references to Sections will be to the Government Code.

Resolution No. 42-24

01181.0004/991190.1
WHEREAS, the “management” employees identified and listed herein are “unrepresented,” meaning that they are not part of any City Council determined appropriate bargaining unit nor represented by any recognized employee organization as defined by the City’s Employer-Employee Relations Resolution and the MMBA; and
WHEREAS, the City Council deems it is in the best interest of the City to adjust the compensation of the unrepresented management employees, whose titles are listed herein, by a Cost of Living Adjustment (COLA) salary increase established by City Council for these employees for FY 2024/25, FY 25/26, and FY 2026/27.

NOW, THEREFORE, BE IT RESOLVED the Morro Bay City Council does hereby adopt this Resolution, amending and restating the previously adopted and amended schedule of compensation and benefits for the City of Morro Bay’s unrepresented management employees and superseding and replacing any prior compensation and benefits resolutions, contracts, agreements or memorandum for such employees, including, but not limited to, Resolution No. 33-17 as follows:

A. CLASSIFICATION/POSITION LIST
The following is a list of authorized management classifications:

Accounting Manager
Administrative Programs Manager
Assistant to the City Manager/Public Relations Manager
City Clerk
City Engineer
Deputy Chief/Fire Marshal
Human Resources/Risk Manager
Information Technology Manager
Maintenance Division Manager
Management Analyst
Planning Manager
Police Commander
Recreation Services Manager
Senior Civil Engineer
Senior Planner
Support Services Manager
Utility Division Manager
B. NORMAL WORK HOURS
Management employees are expected to work during normal City business hours and may be required to work longer hours (more than an eight-hour day and more than five days per week). However, they are not subject to overtime compensation, as they are considered exempt employees within the definition of the FLSA. The occasional use of alternative work schedules can be implemented upon approval of the City Manager.

Resolution No. 42-24

01181.0004/991190.1
C. EXEMPT TIME OFF
As stated in B above, management employees are considered exempt employees. However, the City provides various leave banks for employees’ use, with accrual and use record-keeping being required to properly maintain the leave banks.

Time off of less than two continuous hours in a day does not need to be recorded by exempt employees. Abuses of this exception, such as daily use or random periods within a day, will not be allowed. This exception is also not allowed to be combined with any leaves.

D. ADMINISTRATIVE LEAVE
Management employees receive up to seventy-two (72) hours annually in paid administrative leave in a lump sum accrual at the beginning of each fiscal year.

The City Manager or designee, upon recommendation by the management employee’s Department Head, may grant additional administrative leave to the management employee. The administrative leave bank may never accrue more than ninety-six (96) total hours, which may limit the number of hours credited to the employee’s administrative leave bank on July 1st of each year.

New management employees will be provided a pro-rata share of the annual seventy-two-hour administrative leave bank upon employment.

Administrative leave time must be taken off on an hour-for-hour basis equaling employee actual time off, regardless of accumulation rates. Administrative leave is a compensable leave, and any remaining hours in the employee’s bank will be paid out upon separation from City service, at the employee’s current hourly rate of pay.

E. VACATION LEAVE
Management employees accrue vacation, based on the schedule below. The City Manager shall have the authority to decide service years as the they see fit.

Service Years
Entitlement in
Days
1 thru 2 10
3 thru 4 11
5 thru 6 12
7 thru 8 13
9 thru 10 14
11 thru 12 15
13 thru 14 16
15 thru 16 17
17 thru 18 18
19 thru 20 19

Resolution No. 42-24

01181.0004/991190.1
21 or more 20
Vacation leave time must be taken off on an hour-for-hour basis equaling employee actual time off, regardless of accumulation rates.

Management employees are subject to a maximum leave accumulation of three hundred (300) hours. Any hours exceeding the maximum accumulation as of November 1st of each year will be paid out in the pay period including December 1st.

Management employees will be provided an option to convert up to 40 hours of vacation into compensation per calendar year, subject to meeting the following requirements, provided that at the time of the conversion request at least 20 hours of vacation time remains in the employee's vacation bank. To be eligible for cash out of accrued vacation leave, an employee must pre-elect the number of vacation hours they will cash out, up to a maximum of 40 hours, by December 15 of the preceding calendar year. The election will apply only to vacation hours accrued in the next calendar year. The election to cash out vacation hours in each designated year is irrevocable. Management employees who elect to cash out vacation leave hours must cash out the number of accrued hours pre-designated on the irrevocable election form provided by the City. Employees who pre-designate cash out amounts may request a cash out at any time in the designated calendar year by submitting a cash out request at least 30 days in advance to Human Resources. Human Resources will confirm the cash out amount has accrued and is consistent with the amount the employee pre-designated, then forward to payroll to complete the cash out request. If the full amount of hours designated for cash out is not available at the time of cash out request, the maximum available will be paid.

For Management employees who have not requested payment of the elected cash out amount by November 1 of each year, payroll will automatically cash out the pre-designated amount in a paycheck issued on or after the payroll date including November 1. Additionally, the City may, prior to the end of the calendar year, automatically cash out the vacation leave accrued each pay period by an employee such that the vacation leave cash out is consistent with the employee’s pre-elected number of vacation leave cash-out hours for that year.

Employees who do not pre-designate vacation leave cash-out hours or who decline the cash opt option by the December 15 deadline will be deemed to have waived the right and will not be eligible to cash out any vacation leave in that year.

Vacation accrual is a compensable leave, and any hours remaining in the employee’s vacation bank will be paid out upon separation from City service, at the employee’s current hourly rate of pay.

Resolution No. 42-24

01181.0004/991190.1
F. HOLIDAYS
The following days are paid holidays for management employees:

New Year's Day January 1st
Martin Luther King, Jr. Day 3rd Monday in January
Spring Break Holiday Observed the Friday before Easter weekend Washington's Birthday 3rd Monday in February
Memorial Day Last Monday in May
Juneteenth June 19th
Independence Day July 4th
Labor Day 1
st Monday in September
Veteran's Day November 11th
Thanksgiving Day 4th Thursday in November
Day after Thanksgiving Friday after Thanksgiving
Christmas Day December 25th
Floating Holiday Varies
Floating Holiday Varies
Any holiday, which falls on a Saturday or Sunday, will be officially designated as a “HOLIDAY” on the prior Friday (if Saturday) or Monday (if Sunday).

For management employees, one holiday equals eight hours, unless the employee is working the 9/80 alternative work schedule where one holiday may equal eight or nine hours depending on the normally scheduled workday being either an eight- or nine-hour work day for that employee.

Floating holiday hours are recorded in a bank in July of each fiscal year and may be carried over to the next fiscal year, to a maximum accumulation of fortyeight (48) hours of holiday time. Hours of holiday time accumulated over fortyeight (48) hours will be paid out in December. All leave time (vacation, sick leave, holiday, etc.) will be taken off on an hour-for-hour basis equaling employee actual time off from work during normal business hours, regardless of accumulation rates.

Floating holiday pay is a compensable leave, and any remaining hours in the employee’s bank will be paid out upon separation from City service, at the employee’s current hourly rate of pay.

G. SICK LEAVE
All employees accrue ninety-six (96) hours per year in a sick leave bank to be used for employee illness, forty-eight (48) hours of which may be used to care for the employee’s family member for illness or any other reason mandated by law. All leave time (vacation, sick leave, holiday, etc.) will be taken off on an hour-for-hour basis, equaling employee actual time off from work during normal business hours, regardless of accumulation rates.

Resolution No. 42-24

01181.0004/991190.1
Upon retirement from City service, remaining unused sick leave converts to time served under the applicable contract between the City and the California Public Employees' Retirement System (“CalPERS”), if any. Sick leave converted to service credit for CalPERS purposes cannot be compensated (converted to dollars).

Based on individual utilization of paid sick leave in the preceding calendar year, management employees may convert unused accumulated sick leave into paid vacation leave once per calendar year, pursuant to the formula below:

Sick Leave
Utilization
Sick Leave
Maximum
Conversion to
Vacation Leave
0 hours 96 hours 48 hours
.25 to 8 hours 72 hours 36 hours

8.25 to 16 hours 48 hours 24 hours

16.25 to 25 hours 24 hours 12 hours
Over 25 hours 0 hours 0 hours
At least one-hundred sixty (160) accrued hours must remain in the management employee’s sick leave bank for an employee to be eligible for conversion or for a conversion to be authorized. In addition, the right to convert does not carry over or rollover from calendar year to calendar year; failure to request conversion in any calendar year eliminates the right to do so for that calendar year.

Upon the Service Retirement of a management employee, who has more than ten years of service with the City, said employee shall be entitled to receive payment for up to the first seven hundred twenty hours of their accrued sick leave at thirty-five percent of the employee's rate of pay, as of the date of service retirement. Service Retirement is defined as service retirement from both the City and CalPERS. Voluntary separation or termination actions are excluded from this benefit.

H. RETIREMENT BENEFITS
All employees, enrolled in the CalPERS retirement system, bear the risk of payment of any increases in the employee contribution, above the current percentage, made by action of CalPERS, the California Public Employees Pension Reform Act of 2013 (“PEPRA”) or related legislation, and/or the State Legislature.

All employee CalPERS contributions are paid to CalPERS, based upon tax treatment currently permitted by the State Franchise Tax Board and the Internal Revenue Service (“IRS”).

Resolution No. 42-24

01181.0004/991190.1
The following is descriptive information on City CalPERS-contracted retirement plans:

CalPERS Miscellaneous Plans
All employees pay 100% of the employee contribution to CalPERS, which is currently:

1. Tier 1 Classic members = 8%

2. Tier 2 Classic members = 7%

3. Tier 3 PEPRA members = one-half the normal cost of retirement (currently 6.75%)
Tier 1: All employees, who were hired prior to December 10, 2011, receive the following CalPERS retirement formula and optional benefits (existing Tier 1 employees, promoted to another position within the City, will not be considered new hires, with respect to retirement formulas):

1. 2.7% @ 55 formula (Section 21354.5)

2. Unused Sick Leave Credit (Section 20965)

3. Military Service Credit (Section 21024 & 21027)

4. Final Compensation 1 Year (Section 20042)

5. 1959 Survivor Benefit, Level 4 (Section 21574)

6. Pre-Retirement Option 2W Death Benefit (Section 21548) Tier 2: All employees who were hired on or after December 10, 2011, but before January 1, 2013, and those hired on or after January 1, 2013, who meet the CalPERS definition of classic member, as determined by CalPERS under PEPRA and related legislation, receive the following CalPERS retirement formula and optional benefits:

1. 2% @ 60 formula (benefit factor increases to 2.418% @ 63+) (Section 21353)

2. Unused Sick Leave Credit (Section 20965)

3. Military Service Credit (Section 21024 & 21027)

4. Final Compensation 3 Years (Section 20037)

5. 1959 Survivor Benefit, Level 4 (Section 21574)

6. Pre-Retirement Option 2W Death Benefit (Section 21548) Tier 3: All employees, who were hired on or after January 1, 2013, and meet the definition of new member, as determined by CalPERS under PEPRA and related legislation, receive the following CalPERS retirement formula and optional benefits:

1. 2% @ 62 formula (benefit factor increases to 2.5% @ 67+) (Section 7522.20)

2. Final Compensation 3 Years (Section 20037)

Resolution No. 42-24

01181.0004/991190.1

3. Member contribution rate of fifty percent of the expected normal cost rate, which is currently 13.5% (6.75% is employee’s portion)

4. Unused Sick Leave Credit (Section 20965)

5. Military Service Credit (Section 21024 and 21027)

6. 1959 Survivor Benefit, Level 4 (21574)

7. Pre-Retirement Option 2W Death Benefit (Section 21548) CalPERS Safety Plans
All employees pay 100% of the employee contribution to CalPERS, which is currently:

1. Tier 1 and Tier 2 Classic members = 9%

2. Tier 3 PEPRA members = 13.0% (50% of the normal contribution rate) Tier 1: All employees, who were hired prior to September 17, 2011, receive the following CalPERS retirement formula and optional benefits (existing Tier 1 employees, promoted to another position within the City, will not be considered new hires, with respect to retirement formulas):

1. 3% @ 50 formula (Section 21362.2)

2. Unused Sick Leave Credit (Section 20965)

3. Military Service Credit (Section 21024 & 21027)

4. Final Compensation 1 Year (Section 20042)

5. 1959 Survivor Benefit, Level 4 (Section 21574)

6. Pre-Retirement Option 2W Death Benefit (Section 21548) Tier 2: All employees, who were hired on or after September 17, 2011, but before January 1, 2013, and those hired on or after January 1, 2013, who meet the definition of classic member, as determined by CalPERS under PEPRA and related legislation, receive the following CalPERS retirement formula and optional benefits:

1. 3% @ 55 formula (Section 21363.1)

2. Unused Sick Leave Credit (Section 20965)

3. Military Service Credit (Section 21024 & 21027)

4. Final Compensation 3 Years (Section 20037)

5. 1959 Survivor Benefit, Level 4 (Section 21574)

6. Pre-Retirement Option 2W Death Benefit (Section 21548) Tier 3: All employees, who were hired on or after January 1, 2013, and meet the definition of new member, as determined by CalPERS under PEPRA and related legislation, receive the following CalPERS retirement formula and optional benefits:

1. 2.7% @ 57 formula

2. Final Compensation 3 Years (Section 20037)

Resolution No. 42-24

01181.0004/991190.1

3. Member contribution rate of fifty percent of the expected normal cost rate, which is currently 26% (13.0% is employee’s portion)

4. Unused Sick Leave Credit (Section 20965)

5. Military Service Credit (Section 21024 and 21027)

6. 1959 Survivor Benefit, Level 4 (21574)

7. Pre-Retirement Option 2W Death Benefit (Section 21548) Employee Cost Sharing: CalPERS Classic Member Tier 1 & 2 employees shall make a 1% cost sharing contribution to the employer’s contribution to CalPERS effective the first full payroll period after City Council approval of a CalPERS Contract Amendment providing for such payment commencing FY 23/24, but in no event sooner than the pay period including July 1, 2023.

I. HEALTH/LIFE/VISION/DENTAL INSURANCE
All employees receive the following contribution toward the purchase of CalPERS health insurance, which includes the required CalPERS monthly contribution:

City will pay an amount equal to 100% of Employee-only premium, 90% of Employee + one premium, and 89% of Employee + two or more (family coverage) premium for the lowest-cost PPO plan offered by CalPERS.

For calendar years 2024 and 2025, the City will contribute 100% of the dental and vision premiums for Employees and their dependents.

The city will pay up to a 5% increase in premiums for the calendar year 2026 and up to a 5% increase for the calendar year 2027 through the end of the 2027 calendar year. Employees will pay for any increase beyond 5%.

Life insurance is provided at $50,000 per employee.

For retired employees, City contributes the required CalPERS monthly contribution towards CalPERS health plans, as selected by retiree.

J. LONG-TERM DISABILITY (“LTD”) INSURANCE PROGRAM
Management employees do not participate in the California State Disability Insurance program. City provides LTD to its management employees and pays the cost for the plan.

K. DEFERRED COMPENSATION PROGRAM
Management employees receive a matching contribution up to $1,500, per calendar year, paid to employee’s deferred compensation plan, or approved retiree medical savings plan. City matching contributions are paid on a 2:1 basis (e.g., employee contributes $2, City contributes $1).

Resolution No. 42-24

01181.0004/991190.1
L. LONGEVITY INCENTIVE
Once annually, for employees who have been continuously employed with City for ten (10) years of full-time employment, City shall contribute to the employee's deferred compensation plan (Section 457 account) $25 per year for each whole year of continuous full-time employment with City, plus an additional $25 per year for each whole year of continuous full-time employment completed after ten (10) years.

For example:

If an employee has been employed full-time with the City for 10 years, the City will contribute $250 that year ($25 for each year of continuous full-time employment).

If an employee has been employed full-time with the City for 14 years, the City will contribute $350 that year ($25 for each year of continuous full-time employment).

Whole years of full-time employment shall be determined on September 1st of each year.

Fractions of a year will be rounded down to the nearest whole year.

Deposits into the deferred compensation plan shall be made in one lump sum no later than the second pay period in September.

M. SPECIAL PAY
Management employees may receive up to $150 reimbursement per fiscal year, to purchase steel-toed shoes, as required in the performance of their job duties. Proof of purchase is required, and reimbursement is based on price paid, not to exceed $150 per fiscal year. Once purchased, footwear must be worn while working.

N. COMPENSATION ADJUSTMENTS
Annual Cost of Living Adjustments (COLA) and/or equity adjustments may be given to management employees, as recommended by the City Manager and approved by the City Council, though neither is guaranteed.

1. Effective the pay period including July 1, 2024, City shall provide a 5% COLA increase to base salaries for all management employees (see Exhibit A updated salary table).

2. Effective the pay period including July 1, 2025, City shall provide a 5% COLA increase to base salaries for all management employees (see Exhibit B updated salary table).

Resolution No. 42-24

01181.0004/991190.1

3. Effective the pay period including July 1, 2026, the City shall provide a 5% COLA increase to base salaries for all management employees (see Exhibit C updated salary table).

4. Effective the pay period including July 1, 2024, in addition to the COLA above, City shall provide a 3% Equity Adjustment increase to base salaries for the Chief Building/Plans Examiner, City Clerk, Information Technology Manager, Recreation Services Manager, Planning Manager, Human Resources/Risk Manager, Accounting Manager, Senior Civil Engineer, Deputy Chief/Fire Marshal, and Police Commander.

5. Effective the pay period including July 1, 2025, in addition to the COLA above, City shall provide a 2% Equity Adjustment increase to base salaries for the Chief Building/Plans Examiner, City Clerk, Information Technology Manager, Recreation Services Manager, Planning Manager, Human Resources/Risk Manager, Accounting Manager, Senior Civil Engineer, and Police Commander, and a 1% Equity Adjustment increase to the base salary for the Deputy Chief/Fire Marshal.

6. Effective the pay period including July 1, 2026, in addition to the COLA above, City shall provide a 2% Equity Adjustment increase to base salaries for the Chief Building/Plans Examiner, City Clerk, Information Technology Manager, Recreation Services Manager, Planning Manager, Human Resources/Risk Manager, Accounting Manager, Senior Civil Engineer, and Police Commander, and a 1% Equity Adjustment increase to the base salary for the Deputy Chief/Fire Marshal.

O. EDUCATION REIMBURSEMENT
City will reimburse its management employees for costs associated with jobrelated and job-required certifications, correspondence courses, and/or licenses (except Class III driver’s license), upon successful completion of the examination or course by the employee. Written authorization, from the employee’s Department Director, is required in advance. Reimbursement includes application fees, examination fees, and certificate fees. Renewal fees may be paid in advance by City. This provision does not apply to continuing education requirements.

City will provide a City vehicle, when available, for required transportation, and will permit paid time for employee to take examinations, scheduled during normal working hours. If no City vehicle is available, then City will reimburse mileage for the use of the management employee’s personal vehicle, at current IRS mileage rates.

Resolution No. 42-24

01181.0004/991190.1
PASSED AND ADOPTED, by the City Council of the City of Morro Bay, at a regular meeting thereof held on the 25th day of June 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

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

Resolution No. 42-24

01181.0004/991190.1

ATTACHMENT A

MANAGEMENT PAY SCHEDULE
EFFECTIVE JULY 1, 2024

ANNUAL SALARY
POSITION STEP 1 STEP 2 STEP 3 STEP 4 STEP 5

MANAGEMENT ANALYST

81,619

85,696

89,981

94,474

99,195

POLICE SUPPORT SERVICES MANAGER

81,619

85,696

89,981

94,474

99,195

MAINTENANCE DIVISION MANAGER

95,451 100,214 105,227 110,490 116,022

ADMINISTRATIVE PROGRAMS MANAGER

95,451 100,214 105,227 110,490 116,022

ASSISTANT TO THE CITY MANAGER/PUBLIC

RELATIONS MANAGER

95,451 100,214 105,227 110,490 116,022

SENIOR PLANNER

95,451 100,214 105,227 110,490 116,022

CHIEF BUILDING INSP/PLANS EXAMINER

98,176

103,085

108,222 113,651 119,330

CITY CLERK

98,176

103,085

108,222 113,651 119,330

INFORMATION TECHNOLOGY MANAGER

98,176

103,085

108,222 113,651 119,330

RECREATION SERVICES MANAGER

98,176

103,085

108,222 113,651 119,330

PLANNING MANAGER

107,994 113,402 119,059

125,008 131,248

HUMAN RESOURCES/RISK MANAGER

107,994 113,402 119,059

125,008 131,248

ACCOUNTING MANAGER

107,994 113,402 119,059

125,008 131,248

SENIOR CIVIL ENGINEER

107,994 113,402 119,059

125,008 131,248

CITY ENGINEER

123,739 129,917

136,406

143,250

150,405

UTILITY DIVISION MANAGER

123,739 129,917

136,406

143,250

150,405
DEPUTY CHIEF / FIRE MARSHAL 131,186 137,758

144,622 151,861 159,453

POLICE COMMANDER

142,896

150,030 157,539

165,402 173,701

Resolution No. 42-24

01181.0004/991190.1

ATTACHMENT B

MANAGEMENT PAY SCHEDULE
EFFECTIVE JULY 1, 2025

ANNUAL SALARY
POSITION STEP 1 STEP 2 STEP 3 STEP 4 STEP 5

MANAGEMENT ANALYST

85,696

89,981

94,474

99,195

104,146

POLICE SUPPORT SERVICES MANAGER

85,696

89,981

94,474

99,195

104,146

MAINTENANCE DIVISION MANAGER

100,214

105,227

110,490

116,022

121,826

ADMINISTRATIVE PROGRAMS MANAGER

100,214

105,227

110,490

116,022

121,826

ASSISTANT TO THE CITY MANAGER/PUBLIC

RELATIONS MANAGER

100,214

105,227

110,490

116,022

121,826

SENIOR PLANNER

100,214

105,227

110,490

116,022

121,826

CHIEF BUILDING INSP/PLANS EXAMINER

105,040

110,302

115,794

121,597

127,691

CITY CLERK

105,040

110,302

115,794

121,597

127,691

INFORMATION TECHNOLOGY MANAGER

105,040

110,302

115,794

121,597

127,691

RECREATION SERVICES MANAGER

105,040

110,302

115,794

121,597

127,691

PLANNING MANAGER

115,544

121,347

127,400

133,765

140,442

HUMAN RESOURCES/RISK MANAGER

115,544

121,347

127,400

133,765

140,442

ACCOUNTING MANAGER

115,544

121,347

127,400

133,765

140,442

SENIOR CIVIL ENGINEER

115,544

121,347

127,400

133,765

140,442

CITY ENGINEER

129,917

136,406

143,229

150,405

157,934

UTILITY DIVISION MANAGER

129,917

136,406

143,229

150,405

157,934

DEPUTY CHIEF / FIRE MARSHAL

139,048

146,016

153,296

160,971

169,021

POLICE COMMANDER

152,901

160,534

168,563

176,987

185,869

Resolution No. 42-24

01181.0004/991190.1

ATTACHMENT C

MANAGEMENT PAY SCHEDULE
EFFECTIVE JULY 1, 2026

ANNUAL SALARY
POSITION STEP 1 STEP 2 STEP 3 STEP 4 STEP 5

MANAGEMENT ANALYST

89,981

94,474

99,195

104,146

109,346

POLICE SUPPORT SERVICES MANAGER

89,981

94,474

99,195

104,146

109,346

MAINTENANCE DIVISION MANAGER

105,227

110,490

116,022

121,826

127,920

ADMINISTRATIVE PROGRAMS MANAGER

105,227

110,490

116,022

121,826

127,920

ASSISTANT TO THE CITY MANAGER/PUBLIC

RELATIONS MANAGER

105,227

110,490

116,022

121,826

127,920

SENIOR PLANNER

105,227

110,490

116,022

121,826

127,920

CHIEF BUILDING INSP/PLANS EXAMINER

112,403

118,019

123,906

130,104

136,635

CITY CLERK

112,403

118,019

123,906

130,104

136,635

INFORMATION TECHNOLOGY MANAGER

112,403

118,019

123,906

130,104

136,635

RECREATION SERVICES MANAGER

112,403

118,019

123,906

130,104

136,635

PLANNING MANAGER

123,635

129,834

136,323

143,125

150,280

HUMAN RESOURCES/RISK MANAGER

123,635

129,834

136,323

143,125

150,280

ACCOUNTING MANAGER

123,635

129,834

136,323

143,125

150,280

SENIOR CIVIL ENGINEER

123,635

129,834

136,323

143,125

150,280

CITY ENGINEER

136,406

143,229

150,384

157,934

165,838

UTILITY DIVISION MANAGER

136,406

143,229

150,384

157,934

165,838

DEPUTY CHIEF / FIRE MARSHAL

147,389

154,773

162,490

170,622

179,171

POLICE COMMANDER

163,613

171,766

180,357

189,384

198,890

01181.0004/301248.2
RESOLUTION NO. 43-24

RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA

AMENDING AND RESTATING THE PREVIOUSLY ADOPTED MAXIMUM

COMPENSATION AND BENEFITS FOR CERTAIN CITY DEPARTMENT HEAD

POSITIONS

T H E C I T Y C O U N C I L
City of Morro Bay, California
WHEREAS, Section 36506 of the California Government Code requires that a city council fix the compensation of all appointive officers and employees by resolution or ordinance; and
WHEREAS, Morro Bay Municipal Code Section 2.20.020 also provides that the salaries and compensation of officers and employees of the City of Morro Bay (“City”) shall be as fixed and determined by resolution of the City Council, except as fixed in Chapter 2.20 of the Morro Bay Municipal Code; and
WHEREAS, the Morro Bay City Manager has the authority to appoint, remove, promote and demote any officers and employees of the City, including Directors, except the city attorney, pursuant to Morro Bay Municipal Code Section 2.12.090; and WHEREAS, the City currently has department heads that include the Community Development Director, Finance Director, Fire Chief, Harbor Director, Police Chief, and Public Works Director (hereinafter collectively referred to as “Directors”); and
WHEREAS, the salaries and compensation of the Directors have been fixed pursuant to the Combined Salary Schedule adopted by the City as part of the fiscal year budget process as updated from year to year; and
WHEREAS, the City Council now desires to approve the compensation range and benefits for the City’s Directors such that the City Manager shall be authorized to appoint Directors and provide for salary and benefits within the limitations of this resolution, without requiring the City Council to individually approve each Director’s employment contract; and
WHEREAS, the City Council now desires to adopt a resolution of salaries, compensation and benefits for the Directors.

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

Section 1. The City Council hereby approves the Executive Salary Schedule effective July 1, 2024 attached as Attachment A.

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01181.0004/301248.2 -2-
Section 2. The City Council hereby approves the Executive Salary Schedule effective July 1, 2025 attached as Attachment B.

Section 3. The City Council hereby approves the Executive Salary Schedule effective July 1, 2026 attached as Attachment C.

Section 4. Annual Cost of Living Adjustments (COLA) and/or equity adjustments may be given to Director employees, as recommended by the City Manager and approved by the City Council, though neither is guaranteed.

1. Effective the pay period including July 1, 2024, City shall provide a 5% COLA increase to base salaries for all Director employees (see Exhibit A updated salary table).

2. Effective the pay period including July 1, 2025, City shall provide a 5% COLA increase to base salaries for all Director employees (see Exhibit B updated salary table).

3. Effective the pay period including July 1, 2026, City shall provide a 5% COLA increase to base salaries for all Director employees (see Exhibit C updated salary table).

Section 5. Directors with an existing employment contract with the City are entitled only to the level of salary and benefits contained herein or already existing in their respective contracts prior to the adoption of this resolution should those preexisting contracts be amended or replaced with new contracts. Accordingly, this resolution shall not be deemed to limit compensation or benefits provided for in an existing employment contract with the City that is inconsistent with this resolution.

Implementation of the accrual caps herein shall not result in loss of existing or vested leave balances as of the date of adoption of this resolution.

Section 6. The City Council hereby approves the maximum level of benefits and other compensation, not including salary, for Directors as set forth below. In the event the City Manager desires to exceed any of the parameters set forth herein, City Council authorization shall be required.

A. Workweek and Hours. Directors are expected to engage in the hours of work that are necessary to fulfill the obligations of the position, must be available at all times, and must devote a great deal of time outside the normal office hours to the business of the City. The proper performance of duties will require Directors to generally observe normal business hours (currently 8:00 a.m. to 5:00 p.m., Monday through Friday, including a standard one-hour lunch period), as set by the City and as may be duly revised from time-to-time and approved by the City Manager, and will also often require the performance of necessary services outside of normal business hours.

B. At-Will Employment. The employment of Directors with the City is “atwill,” and Directors serve at the pleasure of the City Manager pursuant to Section

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01181.0004/301248.2 -3-

2.12.090 of the Morro Bay Municipal Code. As such, subject to Section 4 of this resolution, the City Manager may terminate a Director’s employment at any time, with or without cause and with or without advance notice.

C. Exempt Status. Employees subject to this resolution are considered to be “exempt” employees within the definition of the Fair Labor Standards Act (FLSA) and shall not receive overtime compensation for time worked outside of the regular work schedule.

D. Professional Development and Professional Dues.

1. Professional development. Subject to the prior written approval of the City Manager, the City shall pay for travel and subsistence expenses of Directors for official travel, meetings and seminars necessary to continue professional development, and to adequately pursue necessary official and other functions for the City in accordance with approved budgetary limitations.

2. Professional dues. Subject to the prior written approval of the City Manager, the City shall pay the professional dues and subscriptions necessary for Directors’ participation in such national, regional, state, and/or local associations and organizations as are necessary and desirable for continued professional participation growth and advancement and for the good of the City, in accordance with approved budgetary limitations.

E. Vacation Leave.

1. Accrual rate. Directors shall be entitled to paid vacation leave as provided below. City Manager shall have the authority to decide service years as the City Manager sees fit.

Service
Years
Vacation
Days
0-2 12
2-4 14
4-6 16
6-8 18
8+ 20

2. Advances. The City Manager shall have the authority, in his or her discretion, to advance up to a total of ten (10) vacation days to a new Director at the start of the Director’s appointment and at no other time.

3. Other Vacation Leave Requirements. All other contract language relating to vacation leave, including Accrual Caps, Cash Out and Usage, will be consistent with the adopted City Council Management Employees Compensation and Benefit Resolution in force at the time the Department Head contract is executed.

Vacation leave time must be taken off on an hour-for-hour basis equaling employee actual time off, regardless of accumulation rates.

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01181.0004/301248.2 -4-
F. Holiday Leave.

1. The following days are paid holidays for Director employees:

New Year’s Day
Martin Luther King Day
Spring Break Holiday
President's Day
Memorial Day
Juneteenth
Independence Day
Labor Day
Veteran's Day
Thanksgiving Day
Day after Thanksgiving Day
Christmas Day
Two (2) floating holidays

2. Employees may accumulate up to a maximum of forty-eight (48) hours holiday time. Hours of holiday accumulated over forty-eight (48) hours will be paid off. Holiday time is a compensable leave, and any hours remaining in the employee’s holiday bank will be paid out upon separation from City service, at the employee’s current hourly rate of pay.

G. Administrative Leave.

1. Accrual rate. Each Director is eligible to earn up to eighty (80) hours of administrative leave per fiscal year. The time during the fiscal year, at which an employee may take administrative leave, shall be determined by the City Manager.

The City Manager may, due to exceptional and documented circumstances warranting additional administrative leave, grant administrative leave in excess of the eighty (80) hour limit but no more than one hundred twenty (120) hours.

2. Accrual cap/cash-out. The administrative leave bank may never accrue more than one hundred twenty (120) total banked hours which may limit the number of hours credited to the employee’s administrative leave bank on July 1st of each year. Administrative leave is a compensable leave, and any hours remaining in the employee’s administrative leave bank will be paid out upon separation from City service, at the employee’s current hourly rate of pay.

3. Advances. The City Manager shall have the authority, in his or her discretion, to advance up to a total of five (5) days administrative leave to a new Director.

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01181.0004/301248.2 -5-

4. Usage. Administrative leave time must be taken off on an hourfor-hour basis equaling employee actual time off, regardless of accumulation rates.

Up to eighty (80) hours of administrative leave per fiscal year may be taken by a Director, subject to written advance approval of the City Manager.

H. Sick Leave.

1. Accrual rate. Directors shall accrue one (1) day paid sick leave per month. Directors shall be entitled to receive cash payment for up to 50% of unused sick leave upon termination of employment, provided that such amount shall not exceed $4,500. Directors are entitled to payment for unused sick leave, pursuant to this section, upon resignation, only if thirty (30) days written notice of intent to resign is given to the City.

2. Conversion. Directors may convert up to ninety-six (96) hours of unused, accumulated sick leave into paid vacation once during the following fiscal year on a ration of two sick leave hours for one vacation hour. At least twenty-four (24) hours shall remain in a Director’s sick leave bank after any conversion is authorized.

In addition, the right to convert does not carry over or rollover from calendar year to calendar year; failure to request conversion, in any calendar year, eliminates the right to do so for that calendar year. Sick leave that is compensated or converted to vacation cannot be used towards the California Public Employees' Retirement System (“CalPERS”) sick leave credit option at retirement.

3. Advances. The City Manager shall have the authority, in his or her discretion, to advance up to a total of five (5) days sick leave to a new Director.

4. Usage. Sick leave time must be taken off on an hour-for-hour basis equaling employee actual time off during normal City business hours, regardless of accumulation rates.

I. Retirement Benefits.

1. City contributions. The City will pay the employer portion of retirement contribution to the California Public Employees’ Retirement System (CalPERS). Employees are required to pay their full member contributions for whichever plan they are eligible for pursuant to the City’s contract with CalPERS. (As of the date of adoption of this resolution, contributions rates are as follows: 1) classic members, Tier 1 - 8% Miscellaneous/9% Safety; 2) classic members, Tier 2 - 7% Miscellaneous/9% Safety; or 3) PEPRA members, Tier 3 — 6.75% Miscellaneous/13% Safety.)

2. Employee Cost Sharing. CalPERS Classic Member Tier 1 & 2 employees shall make a 1% cost sharing contribution to the employer’s contribution to CalPERS effective the first full payroll period after City Council approval of a CalPERS Contract Amendment providing for such payment commencing FY 23/24, but in no event sooner than the pay period including July 1, 2023.

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01181.0004/301248.2 -6-

3. CalPERS contract provisions.
(a) Tier I Miscellaneous– Miscellaneous Directors who were hired prior to January 1, 2012 shall be provided with the following CaIPERS retirement formula and optional benefits (existing employees promoted to another position within the City will not be considered new hires with respect to retirement formulas):
(i) 2.7% @ 55 formula (Section 21354.5)
(ii) Unused Sick Leave Credit (Section 20965)
(iii) Military Service Credit (Section 21024 & 21027)
(iv) Final Compensation 1 Year (Section 20042)
(v) 1959 Survivor Benefit, Level 4 (Section 21574)
(vi) Pre-Retirement Option 2W Death Benefit (Section
21548)
(b) Tier II Miscellaneous– Miscellaneous Directors who were hired on or after January 1, 2012, but before January 1, 2013, and those hired on or after January 1, 2013 who are determined to be a “classic” member by CalPERS shall be provided with the following CaIPERS retirement formula and optional benefits:
(i) 2% @ 60 formula (benefit factor increases to 2.418% @ 63+) (Section 21353)
(ii) Unused Sick Leave Credit (Section 20965)
(iii) Military Service Credit (Section 21024 & 21027)
(iv) Final Compensation 3 Years (Section 20037)
(v) 1959 Survivor Benefit, Level 4 (Section 21574)
(vi) Pre-Retirement Option 2W Death Benefit (Section
21548)
(c) Tier III (PEPRA) Miscellaneous- Pursuant to the California Public Employees' Pension Reform Act of 2013 (PEPRA), effective January 1, 2013, Directors hired, who meet the definition of “new” member under PEPRA as determined by CalPERS, will be covered by following retirement formula and receive the following CaIPERS optional benefits:
(i) 2% @ 62 formula (benefit factor increases to 2.5% @ 67+) (Section 7522.20)
(ii) Final Compensation 3 Years (Section 20037)
(iii) Member contribution rate of fifty (50) percent of the expected normal cost rate, which is currently 13.5%
(6.75% is employee's portion)
(iv) Unused Sick Leave Credit (Section 20965)
(v) Military Service Credit (Section 21024 and 21027)
(vi) 1959 Survivor Benefit, Level 4 (21574)
(vii) Pre-Retirement Option 2W Death Benefit (Section
21548)

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01181.0004/301248.2 -7-
(d) Tier I Safety– CalPERS Safety Directors, who were hired prior to September 17, 2011, shall be provided the following CalPERS retirement formula and optional benefits (existing employees, promoted to another position within the City, will not be considered new hires, with respect to retirement formulas):
(i) 3% @ 50 plan (Section 21362.2)
(ii) Unused Sick Leave Credit (Section 20965)
(iii) Military Service Credit (Section 21024 & 21027)
(iv) Final Compensation 1 Year (Section 20042)
(v) 1959 Survivor Benefit, Level 4 (Section 21574)
(vi) Pre-Retirement Option 2W Death Benefit (Section
21548)
(e) Tier II Safety– CalPERS Safety Directors, who were hired on or after September 17, 2011, and those hired on or after January 1, 2013 who meet the definition of a “classic” member under PEPRA as determined by CalPERS, shall be provided the following CalPERS retirement formula and optional benefits:
(i) 3% @ 55 plan (Section 21363.1)
(ii) Unused Sick Leave Credit (Section 20965)
(iii) Military Service Credit (Section 21024 & 21027)
(iv) Final Compensation 3 Years (Section 20037)
(v) 1959 Survivor Benefit, Level 4 (Section 21574)
(vi) Pre-Retirement Option 2W Death Benefit (Section
21548)
(f) Tier III (PEPRA) Safety- Pursuant to PEPRA, effective January 1, 2013, Safety Directors hired, who meet the definition of “new” member under PEPRA as determined by CalPERS, will be covered by following retirement formula and receive the following CaIPERS optional benefits:
(i) 2.7% @ 57 formula (benefit increases to …)
(ii) Final Compensation 3 Years (20037)
(iii) Member contribution rate of fifty (50) percent of the expected normal cost rate (currently 13%)
(iv) Sick Leave Option (Section 20965)
(v) Military Service Credit (Section 21024)
(vi) 1959 Survivor Benefit Level 4 (Section 21574)
(vii) Pre-Retirement Death Option 2W (Section 21548)
J. Health, Life, Dental and Vision. All Directors shall receive the following contribution toward the purchase of CalPERS health insurance, which includes the required CalPERS monthly contribution:

City will pay an amount equal to 100% of Employee-only premium, 90% of Employee + one premium, and 89% of Employee + two or more (family coverage) premium for the lowest-cost PPO plan offered by CalPERS.

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01181.0004/301248.2 -8-
For calendar years 2024 and 2025, City will contribute 100% of the dental and vision premiums for Employees and their dependents.

City will pay up to a 5% increase in premiums for calendar year 2026 and up to a 5% increase for calendar year 2027 through the end of the 2027 calendar year. Employees will pay for any increase beyond 5%.

Life insurance is provided at $50,000 per employee.

For retired Directors, City contributes the required CalPERS monthly contribution towards CalPERS health plans, as selected by retiree.

K. Long-Term Disability (“LTD”) Insurance Program. Management employees do not participate in the California State Disability Insurance program. City provides LTD to its management employees and pays the cost for the plan.

L. Deferred Compensation. Directors shall have the option to participate in the deferred compensation program offered by the City, subject to the terms and conditions of the 1978 Revenue Act and Section 457 of the Internal Revenue Code. The City will contribute up to $3,500 per calendar year to the deferred compensation program. Any required match, from no match to a 2:1 match, will be negotiated by the City Manager.

M. Longevity Incentive. Once annually, for employees who have been continuously employed with City for ten (10) years of full-time employment, City shall contribute to the employee's deferred compensation plan (Section 457 account) $25 per year for each whole year of continuous full-time employment with City, plus an additional $25 per year for each whole year of continuous full-time employment completed after ten (10) years.

For example:

If an employee has been employed full-time with the City for 10 years, the City will contribute $250 that year ($25 for each year of continuous full-time employment).

If an employee has been employed full-time with the City for 14 years, the City will contribute $350 that year ($25 for each year of continuous full-time employment).

Whole years of full-time employment shall be determined on September 1st of each year.

Fractions of a year will be rounded down to the nearest whole year.

Deposits into the deferred compensation plan shall be made in one lump sum no later than the second pay period in September.

N. Automobile Allowance. Directors shall receive $250.00 per month or the use of a take home City vehicle as determined by the City Manager.

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01181.0004/301248.2 -9-
O. Cost of Living Adjustments (COLA). Salary increases to the established salary ranges in Attachment A, B, and C shall only be as dictated and approved by City Council. The movement between steps of a salary range are entirely within the purview of the City Manager.

P. Uniforms. The Police Chief and Fire Chief shall receive uniform allowances in an amount consistent with the highest-ranking subordinate classification in their Department.

Q. Bonding. The City shall bear the full cost of any fidelity or other bonds required for a Director under any law or ordinance.

R. Education Incentives. The City shall reimburse the costs for job-related and job-required certifications, correspondence courses, and licenses upon successful completion of the examination or course by the employee, having written authorization in advance from the City Manager. This shall include application fees, examination fees, and certificate fees. Renewal fees may be paid in advance by the City. This provision does not apply to continuing education requirements.

S. Severance. Directors shall be entitled to severance only as provided in this section. Any and all severance rights are conditioned upon and in consideration for execution of a standard agreement of separation, severance, and general release in a form acceptable to and approved by the City Attorney. The severance rights provided for herein shall constitute the sole and only entitlement of a Director with respect to severance pay in the event of the termination, other than for cause.

1. Amount. In the event a Director is terminated without cause and does not challenge such termination, including but not limited to by means of appeal or civil or administrative claim, then the City shall pay severance in an amount equal to the monthly base salary of the Director then in effect (excluding the value of any other benefits) multiplied by four (4). The severance payment shall not include the monetary value of benefits during said time, but salary only. Prior to such termination, in order to be eligible for severance as provided in this Section, a Director must have worked for the City a minimum of six (6) months.

Should a Director be terminated for cause, as defined in this section below, the City shall have no obligation to pay the severance provided for above.

Additionally, should a Director resign or otherwise initiate termination of his or her employment with the City, then the City shall have no obligation to pay the severance provided for above.

2. “Cause” defined. For the purposes of this resolution, “cause” for termination shall include, but not be limited to, the following: (1) willful or persistent material breach of duties or inattention to duties, (2) résumé fraud or other acts of material dishonesty, (3) unauthorized or excessive absence or leave, (4) conviction of a misdemeanor involving moral turpitude (i.e., offenses contrary to justice, honesty, or morality), (5) conviction of a felony under

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01181.0004/301248.2 -10-
California law, (6) violation of the City’s anti-harassment policies and/or a finding that legally prohibited personal acts of harassment against a City official or employee or legally prohibited personal acts of discrimination against a City official or employee has occurred, (7) violation of state law or the City’s Municipal Code or ordinances, rules, and regulations, (8) use or possession of illegal drugs in violation of state law and/or City policy, (9) engaging in conduct tending to bring embarrassment or disrepute to the City, (10) any illegal or unethical act involving personal gain, including conviction of theft or attempted theft, (11) significant mismanagement of City finances, (12) any pattern of repeated, willful and intentional failure to carry out materially significant and legally constituted directions or policy decisions of the City Council or City Manager, (13) gross misfeasance or gross malfeasance, or (14) any similar cause. For any of the foregoing, the City may, in its discretion, place a Director on paid or unpaid administrative leave until resolution.

3. Limitation. Government Code Section 53260 provides that all contracts of employment with a city must include a provision limiting the maximum cash settlement for the termination of the contract to the monthly salary (excluding benefits) multiplied by the number of months left on the unexpired term, but not more than eighteen (18) months if the unexpired term exceeds eighteen (18) months. Accordingly, should such proposed severance payment exceed the amount authorized to be paid under Government Code Section 53260, then the amount paid to Employee shall be reduced in the amount necessary to comply with such statute. (For example, if termination occurs with two (2) months left in the term, severance would be equal to the monthly base salary multiplied by two (2) rather than the four (4) months provided herein.)
T. Relocation Reimbursement. The City Manager shall have the discretion to reimburse a newly hired Director for the Director’s actual costs of relocation in order to work for the City, up to $5,000 for in-state relocations, and up to $10,000 for out of state relocations. Prior to such reimbursement, the newly hired Director shall provide to the City Manager receipts or other reasonable proof documenting the costs incurred in relocation. The expenses eligible for reimbursement shall be only those expressly stated herein and only include the following items/categories: hiring of a moving service or rental of a moving truck or equipment; renting a temporary home, apartment or hotel costs while house-hunting for a more permanent residence; lease cancelation fees; shipping and temporary storage of personal belongings and furniture; ad travel costs from prior residence to new residence, whether temporary or not.

If, following reimbursement for relocation expenses as provided in this section, a Director voluntarily leaves City employment, then Director shall be responsible for repayment to the City the amount of relocation reimbursement as follows:

Duration of employment Percentage of relocation
reimbursement
owed to City

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01181.0004/301248.2 -11-
Less than one year 100%
1 – 2 years 50%
2 – 3 years 25%
3 + years 0%
Any relocation reimbursement repayment required pursuant to this section shall be made to the City no later than the Director’s last day of City employment. The City shall have the right but is not limited to this form of recovery only, to deduct any relocation reimbursement amount owed to the City pursuant to this section from a Director’s accrued leave to be paid out upon separation.

In the event a Director is terminated, then no repayment to the City for relocation reimbursement shall be required.

Section 7. The position of Police Chief remains entitled to all protections and rights afforded under California law, including, but not limited to, those set forth in the Public Safety Officers Procedural Bill of Rights Act (Gov’t Code 3300-3313). The position of Fire Chief remains entitled to all protections and rights afforded under California law, including, but not limited to, those set forth in the Firefighters Procedural Bill of Rights Act (Gov’t Code 3250-3262).

PASSED AND ADOPTED by the City Council, City of Morro Bay at a regular meeting thereof held on the 25th day of June 2024 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSE:

CARLA WIXOM, Mayor
ATTEST:

DANA SWANSON, City Clerk

01181.0004/301248.2

ATTACHMENT A

DIRECTORS PAY SCHEDULE
EFFECTIVE JULY 1, 2024

ANNUAL SALARY
POSITION STEP 1 STEP 2 STEP 3 STEP 4 STEP 5

COMMUNITY DEVELOPMENT

DIRECTOR

157,310

165,173

173,451

182,125

191,235

PUBLIC WORKS DIRECTOR

157,310

165,173

173,451

182,125

191,235

FINANCE DIRECTOR

157,310

165,173

173,451

182,125

191,235

HARBOR DIRECTOR

160,264

168,272

176,696

185,515

194,792
FIRE CHIEF (Sworn)

160,264

168,272

176,696

185,515

194,792
POLICE CHIEF (Sworn)

160,264

168,272

176,696

185,515

194,792

Resolution No. 43-24

01181.0004/301248.2 -13-

ATTACHMENT B

DIRECTORS PAY SCHEDULE
EFFECTIVE JULY 1, 2025

ANNUAL SALARY
POSITION STEP 1 STEP 2 STEP 3 STEP 4 STEP 5

COMMUNITY DEVELOPMENT DIRECTOR

165,173

173,430

182,125

191,235

200,803

PUBLIC WORKS DIRECTOR

165,173

173,430

182,125

191,235

200,803

FINANCE DIRECTOR

165,173

173,430

182,125

191,235

200,803
FIRE CHIEF (Sworn)

168,272

176,696

185,536

194,792

204,526
POLICE CHIEF (Sworn)

168,272

176,696

185,536

194,792

204,526

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01181.0004/301248.2 -14-

ATTACHMENT C

DIRECTORS PAY SCHEDULE
EFFECTIVE JULY 1, 2026

ANNUAL SALARY
POSITION STEP 1 STEP 2 STEP 3 STEP 4 STEP 5

COMMUNITY DEVELOPMENT DIRECTOR

173,430

182,104

191,235

200,803

210,850

PUBLIC WORKS DIRECTOR

173,430

182,104

191,235

200,803

210,850

FINANCE DIRECTOR

173,430

182,104

191,235

200,803

210,850
FIRE CHIEF (Sworn)

176,696

185,536

194,813

204,526

214,760
POLICE CHIEF (Sworn)

176,696

185,536

194,813

204,526

214,760

Prepared By: __DM________ Dept Review: ________
City Manager Review: __YK_____ City Attorney Review: ___LNL____ Staff Report
TO: Honorable Mayor and City Council DATE: June 5, 2024 FROM: Daniel McCrain, Fire Chief
SUBJECT: Adopt Resolution No. 44-24 Revising the Terms of the City’s Reimbursement Agreement with the California Governor’s Office of Emergency Services to add the Deputy Chief and Seasonal Firefighter Job Classifications

RECOMMENDED ACTION
Adopt Resolution No. 44-24 rescinding and replacing Resolution No. 62-21 and revising the terms of the City’s reimbursement agreement to include the classifications of Deputy Chief and Seasonal Firefighter.

ALTERNATIVES
Take no action. This would prevent the positions of Deputy Chief and Seasonal Firefighter from receiving reimbursement from the California Governor’s Office of Emergency Services, Fire Rescue Division.

FISCAL IMPACT
The recommended action will have a positive fiscal impact on the City. The fiscal impact varies depending on hours committed to Mutual Aid Assignments. The wages paid to classified employees are reimbursed at their actual rate of pay by the California Office of Emergency Services (“OES”) Mutual Aid Agreements. An additional 21.967% administrative fee is paid to the City for all hours reimbursed. Portal to portal pay would result in a larger administrative fee than direct hours worked.

This administrative fee contributes to the Departments operating budget for equipment replacement.

The salary schedule on file with the State of California is updated each time there is a salary adjustment within our department.

BACKGROUND
Fire Department response personnel in Resolution No. 62-21 included Fire Chief, Division Chief, Fire Marshal, Fire Captain Paramedic, Engineer, Engineer Paramedic, Firefighter, Firefighter Paramedic, Reserve Engineer, Reserve Firefighter, and Seasonal Firefighter. This resolution was in place before the creation of the Deputy Chief or Seasonal Firefighter ranks at the Morro Bay Fire Department. The Division Chief/ Fire Marshal position is changing the title to Deputy Chief to better align with the actual job duties performed by this position. We are also adding the position of Seasonal Firefighter since we have transitioned from Reserve Firefighters. Having a resolution that describes all titles and AGENDA NO: 7.e
MEETING DATE: June 25, 2024

positions is essential for proper reimbursement from OES for mutual aid responses.

DISCUSSION
The compensation of a classified employee at “Portal to Portal” means that the employee is paid from the time they depart their home station for a Mutual Aid assignment until the time that they return to their duty station. They are compensated for all hours away from home assisting the State Mutual Aid System. The employee’s salary during this assignment is reimbursed at an agreed upon rate equal to the employees’ actual rate of pay. The employee will be paid at either an overtime rate or straight time rate depending on each individual Memorandum of Understanding or contract.

Since the creation of a Deputy Chief classification within the Morro Bay Fire Department occurred, there must be a resolution adding this position for the State to reimburse the Department at the appropriate pay scale. Traditionally Management, overtime exempt employees are compensated overtime pay in addition to their base salary under these agreements because participation in the Mutual Aid System is above and beyond the scope of their normal contractual duties. This is important because unlike performing additional duties at home as expected of managers, these employees are committed away from home for an extended period of time performing a specialized task necessary to the successful mitigation of an incident.

The State OES reimbursement is to eliminate any financial burden of the employee’s agency by allowing participation in the Mutual Aid System without encumbering any additional costs. These agreed upon rates provide a framework to compensate these highly trained and experienced managers for their participation in these crucial Emergency Management roles during Mutual Aid incidents. The advancement of digital technology has made it possible for executive employees to continue performing a majority of their assigned City duties while assigned to these Mutual Aid assignments further reducing the impact on City operations.

CONCLUSION
Adding the Deputy Chief and Seasonal firefighter job classifications to the resolution ensures that the City of Morro Bay will be reimbursed at an appropriate pay rate for any time the Deputy Chief or Seasonal Firefighters are assigned to a Mutual Aid incident. There is no additional financial burden to the City or Fire Department. Portal to Portal pay is the standard compensation because the employee is away from their home station and tasked with additional duties for the greater good of the State Mutual Aid System to manage large or complex incidents.

ATTACHMENT

1. Resolution No. 44-24

01181.0004/741016.l
RESOLUTION NO. 44-24

RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA

IDENTIFYING THE TERMS AND CONDITIONS FOR FIRE DEPARTMENT

RESPONSE AWAY FROM THEIR OFFICIAL DUTY STATION AND

ASSIGNED TO AN EMERGENCY MUTUAL AID INCIDENT AND
RESCINDING RESOLUTION NO. 62-21

THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, the City of Morro Bay Fire Department is a public agency located in the County of San Luis Obispo, State of California; and
WHEREAS, it is the City of Morro Bay's desire to provide fair and legal payment to all its employees for time worked; and
WHEREAS, the City of Morro Bay Fire Department has in its employ designated Fire response personnel as follows: Fire Chief, Deputy Chief, Division Chief, Fire Marshal, Fire Captain, Fire Captain Paramedic, Engineer, Engineer Paramedic, Firefighter, Firefighter Paramedic, Reserve Engineer, and Reserve Firefighter; and
WHEREAS, the City of Morro Bay Fire Department desires to add the positions of Deputy Chief and Seasonal Firefighter to designated Fire response personnel; and WHEREAS, the City of Morro Bay will compensate its employees portal to portal while in the course of their employment and away from their official duty station and assigned to an emergency incident, in support of an emergency incident, or pre-positioned for emergency response; and
WHEREAS, the City of Morro Bay will seek reimbursement for qualifying mutual aid responses such that all City Costs, including but not limited to personnel, apparatus, equipment, and administrative costs, incurred in connection with qualifying mutual aid responses do not have a net negative impact on the City's financial position.

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

1. Resolution No. 62-21 is hereby rescinded.

2. Personnel shall be compensated according to Memorandum of Understanding (MOU), Personnel Rules and Regulations, and/or other directive that identifies personnel compensation in the workplace.

3. In the event a personnel classification does not have an assigned compensation rate, a "Base Rate" as set forth in an organizational policy, administrative directive or similar document will be used to compensate such personnel.

4. The City of Morro Bay Fire Department will maintain a current salary survey or acknowledgement of acceptance of the "base rate" on file with the California Governor's Office of Emergency Services, Fire Rescue Division.

5. All personnel will be compensated (portal to portal) beginning at the time of dispatch to the

01181.0004/741016.l
return to jurisdiction when equipment and personnel are in service and available for agency response.

6. Fire Department response personnel include: Fire Chief, Deputy Chief, Division Chief, Fire Marshal, Fire Captain, Fire Captain Paramedic, Engineer, Engineer Paramedic, Firefighter, Firefighter Paramedic, Reserve Engineer, Reserve Firefighter, and Seasonal Firefighter.

7. The Fire Chief, Deputy Chief, and Division Chief, as FLSA-exempt employees, shall be compensated at their base hourly wage, when providing such emergency response services. All other classified response personnel shall be eligible for overtime compensation when providing such emergency response services, in accordance with personnel rules and regulations, their current Memorandum of Understanding, and all other applicable state and federal laws.

PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 25th day of June 2024 on the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSE:
________________________
CARLA WIXOM, Mayor
ATTEST:
_________________________
DANA SWANSON, City Clerk

Prepared By: ___CC____ Dept Review: __GK__
City Manager Review: __YK ____ City Attorney Review: __LNL__ Staff Report
TO: Honorable Mayor and City Council DATE: June 13, 2024 FROM: Cindy Cecil, PE – City Engineer
SUBJECT: Adoption of Resolution No. 45-24 Directing the Levy of the Annual Assessment for the Cloisters Landscaping and Lighting Maintenance Assessment District

RECOMMENDED ACTION
Conduct the public hearing and approve the levy of the annual assessment for the Cloisters Landscaping and Lighting Maintenance Assessment District (LLMAD) by adopting Resolution No. 45-24.

ALTERNATIVE
Not adopt Resolution No. 45-24 and provide alternative, specific directions for staff.

FISCAL IMPACT
By adopting Resolution No. 451-24, $148,944 will be collected through an assessment of all benefiting parcel owners in the Cloisters subdivision for the Cloisters LLMAD for the maintenance of the Cloisters Park and Open Space.

SUMMARY
At the May 14, 2024, City Council meeting, Council adopted Resolution No. 28-24 approving the Engineer’s Report describing the annual maintenance to be completed at the Cloisters Park and Open Space and declaring the City’s intent to levy an annual assessment to finance this maintenance. The assessment, projected at $1,241.20 per assessable lot in the Cloisters subdivision for Fiscal Year (FY) 2024/25, will be collected by the County Assessor’s Office.

The true costs of maintaining Cloisters Park, Open Space, trails, as well as the medians and parkways within the district, far exceed the revenue received in the assessment amount. All maintenance costs in excess of the district’s available revenues will continue to be subsidized by the General Fund per City Council direction on May 24, 2004, which has been subsequently incorporated into annual budget adoption resolutions since as detailed in the May 14, 2024, City Council Staff Report. As part of the assessment process, the City ordered the preparation of an Engineer’s Report, approved May 14, 2024, adopted a resolution of intention to levy an assessment, and set June 25, 2024, as the public hearing date on the proposed levy of assessment. The required noticing was published in the local newspaper per State requirements. The Council must hold a public hearing before considering continuing the levy of the annual assessment.

AGENDA NO: 8.a
MEETING DATE: June 25, 2024

BACKGROUND/DISCUSSION
Cloisters LLMAD was formed with the development of Tract 1996 in the Fall of 1996, just prior to the passage of Proposition 218. In 2004, a court determined, due to a lawsuit filed by three Cloisters residents, there are many special benefits associated with the Cloisters LLMAD. The Cloisters’ lots directly benefit from the Cloisters open space and close proximity of the public park, bicycle pathway, right of way landscaping, Environmentally Sensitive Habitat restoration areas and coastal access.

There was also created and reserved in favor of each owner in the Cloisters development, easements for view, open space, scenic, passive recreation and coastal access across the entirety of Lots 121, 122 and 123, which shall not be developed with any improvements or structures, unless necessary and proper for the restoration and maintenance of the Environmentally Sensitive Habitat Area. That court determined further special benefits include: improved aesthetic appeal of nearby parcels, improved dust control, enhanced adaptation of the urban environment within the natural environment, improved erosion resistance, improved drainage and flood control, enhanced crime deterrence and aid to police protection, increased nighttime safety on roads and highways, improved visibility for pedestrians and motorists, improved ingress and egress to property, reduced vandalism and other criminal acts and damage to improvements or property, improved traffic circulation, reduced nighttime accidents, and special enhancement to property value resulting from the above benefits.

The court also determined the City does not need to, nor is it required to, prepare an annual redetermination of the separation of special and general benefits. The court specially held:
“When the special assessment district was formed the owner of all of the parcels consented to its formation. Moreover, the owner did not object to the amount of the assessment, which the City based upon the cost of the special benefits being conferred on the properties within the assessment district, nor to the specific amount allocated to each parcel as its proportionate share. Because express consent to the amount and allocation of the assessment was given by petitioners' predecessor, and petitioner's purchased their properties with actual or constructive knowledge of the amount of the assessment, it is too late for them now to withdraw the consent and attack the amount of the assessment.”
Up until 2015, this required public hearing was advertised as a “protest hearing,” where those in the assessment district could file protests to the continuation. State law does not require a protest hearing so long as there are no increases in the assessment. Currently, there are no proposed increases to the assessment amount.

Staff continues to recognize the importance of proper maintenance of the Cloisters Park and Open Space, which are outlined in the Engineer’s Report, but occasionally the level of maintenance does not meet the expectations of some residents. Due to funding limitations, resources required for District maintenance are utilized as efficiently as possible. The increase in the cost of goods and services now precludes a fund surplus for carryover to be set aside for capital projects. The fund surplus reserved for capital and larger maintenance projects is detailed in the Engineer’s Report approved by City Council on May 14, 2024. Once the remaining surplus funds are exhausted, the City will propose capital improvements through the normal budget process with the use of General Funds, Measure Q & E Funds, or other sources such as grant funding.

CONCLUSION
Staff recommends continuation of the assessment of the property owners within the Cloisters LLMAD to fund the City’s maintenance of the Cloisters Park and Open Space with supplemental funding coming from the general fund.

ATTACHMENT

1. Resolution No. 45-24

RESOLUTION NO. 45-24

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA

DIRECTING THE LEVY OF THE ANNUAL ASSESSMENT

FOR THE CLOISTERS LANDSCAPING AND LIGHTING

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

THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, on May 14, 2024, the City Council adopted Resolution No. 28-24 declaring the Council’s intent to levy an assessment for the annual maintenance of the Cloisters Park and Open Space within the Cloisters Landscaping and Lighting Maintenance Assessment District (the “District”) and approving the Engineers Report; and
WHEREAS, a public hearing for the levy of the annual assessment of the District was scheduled for June 25, 2024, at or about 5:30 p.m., in a hybrid format with opportunities for public comment both an in-person meeting at the Morro Bay Veterans Memorial Building, 209 Surf Street, Morro Bay, CA 93442 as well as through virtual public participation; and WHEREAS, notices regarding the proposed assessment listing the date, time, and location of the public hearing were published in the local newspaper; and WHEREAS, the City Council did take public testimony from all interested parties as to the levy of the annual assessment for the District on June 25, 2024, at the Morro Bay Veterans Memorial Building, 209 Surf Street, Morro Bay, CA 93442.

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

1. The annual levy for the maintenance of the District, generally located as shown on Exhibit “A” attached hereto, is hereby ordered and the assessment of $148,944 to be equally distributed per assessable parcel for the Fiscal Year 2024/25 is hereby confirmed.

2. Adoption of this Resolution shall constitute the levy of an assessment for the Fiscal Year 2024/25 and the City Clerk shall file the diagram and assessment with the County of San Luis Obispo Auditor.

PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held this 25
th day of June 2024 by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSED:
_______________________________

CARLA WIXOM, MAYOR
ATTEST:
________________________________

DANA SWANSON, CITY CLERK

Exhibit “A”

CLOISTERS

LANDSCAPING AND LIGHTING

MAINTENANCE ASSESSMENT DISTRICT

DISTRICT BOUNDARY DIAGRAMS
The boundary diagrams for the District have previously been submitted to the City Clerk in the format required under the 1972 Act and, by reference, are hereby made part of this Report. The boundary diagrams are available for inspection at the office of the City Clerk during normal business hours. The following diagram provides an overview of the District.

Prepared By: _CC______ Dept Review: __GK __
City Manager Review: __YK____ City Attorney Review: __LNL_ Staff Report
TO: Honorable Mayor and City Council DATE: June 13, 2024 FROM: Cindy Cecil, PE – City Engineer
SUBJECT: Adoption of Resolution No. 46-24 Directing the Levy of the Annual Assessment for the North Point Natural Area Landscaping and Lighting Maintenance Assessment District

RECOMMENDED ACTION
Conduct the public hearing and approve the levy of the annual assessment for the North Point Natural Area Landscaping and Lighting Maintenance District (LLMAD) by adopting Resolution No. 46-24.

ALTERNATIVES
Not adopt Resolution No. 46-24 and provide alternative, specific directions for staff.

FISCAL IMPACT
By adopting Resolution No. 46-24, $5,645 will be collected through an assessment of all parcel owners in the North Point subdivision for the maintenance of the North Point LLMAD and Natural Area.

SUMMARY
At the May 14, 2024, City Council meeting, the Council adopted Resolution No. 29-24 approving the Engineer’s Report describing the annual maintenance to be completed at the North Point Natural Area and declaring the City’s intent to levy an annual assessment to partially finance the maintenance covered by the district. The assessment of the North Point subdivision is $5,645 or $564.50 per parcel for Fiscal Year (FY) 2024/25 and will be collected by the County Assessor’s Office.

The approved Engineer’s Report detailed that the costs for maintenance of the North Point Natural Area exceed the revenue received in the assessment amount. Costs not covered by the North Point assessments are covered by the City’s General Fund. As part of the assessment process, the City ordered the preparation of an Engineer’s Report, approved May 14, 2024, adopted a resolution of intention to levy an assessment, and set June 25, 2024 as the public hearing date on the proposed levy of assessment. The required noticing was published in the local newspaper per State requirements. The Council must hold a public hearing before considering continuing the levy of the annual assessment.

CONCLUSION
AGENDA NO: 8.b
MEETING DATE: June 25, 2024

Staff recommends continuation of the annual assessment of the property owners within the North Point Natural Area LLMAD, for maintenance needs, by adopting Resolution No. 46-24.

ATTACHMENT

1. Resolution No. 46-24

RESOLUTION NO. 46-24

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA

DIRECTING THE LEVY OF THE ANNUAL ASSESSMENT FOR THE NORTH POINT

NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE

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

THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, on May 14, 2024, the City Council adopted Resolution No. 29-24 declaring the Council’s intent to levy an assessment for the annual maintenance of the North Point Natural Area Landscaping and Lighting Maintenance Assessment District (the “District”) and approving the Engineers Report; and
WHEREAS, a public hearing regarding the levy of the annual assessment of the District was scheduled for June 25, 2024 at or about 5:30 p.m., in a hybrid format with opportunities for public comment both an in-person meeting at the Morro Bay Veterans Memorial Building, 209 Surf Street, Morro Bay, CA 93442 as well as through virtual public participation; and WHEREAS, notices regarding the continuation of the proposed assessment listing the date, time and location of the hearing were published in the local newspaper; and WHEREAS, the City Council did take public testimony from all interested parties as to the levy of the annual assessment for the District on June 25, 2024, at the Morro Bay Veterans Memorial Building, 209 Surf Street, Morro Bay, CA 93442.

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

1. The annual levy for the maintenance of the District generally located as shown on Exhibit “A,” attached hereto, is hereby ordered and the assessment of $5,645 to be equally distributed per assessable parcel for the Fiscal Year 2024/25 is hereby confirmed.

2. Adoption of this Resolution shall constitute the levy of an assessment for the Fiscal Year 2024/25 and the City Clerk shall file the diagram and assessment with the County of San Luis Obispo Auditor.

PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting held this 25
th day of June, 2024 by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

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

Prepared By: ________EC _____ Dept Review: __MAG____
City Manager Review: _YK_______ City Attorney Review: __CFN____ Staff Report
TO: Honorable Mayor and City Council DATE: June 11, 2024 FROM: Yvonne Kimball, City Manager
PREPARED BY: Emily Conrad, Finance Director
Melissa Green, Administrative Programs Manager
SUBJECT: Resolutions Approving Fiscal Year (FY) 24-25 Operating and Capital Budgets; FY 24-25, FY 25-26 and FY 26-27 Salary Schedules; New Job Classifications; Investment Policy; and FY 24-25 GANN Appropriations Limit

RECOMMENDED ACTION
Staff recommends the City Council:

1. Adopt Resolution No. 47-24 adopting the Fiscal Year (FY) 2024-25 Operating and Capital Budgets; and

2. Adopt Resolution No. 48-24 approving the FY 2024-25, FY 2025-26, and FY 2026-27 Salary Schedules; and

3. Adopt Resolution No. 49-24 approving Recreation Specialist and Assistant to the City Manager/Public Relations Manager Job Classifications and Job Descriptions; and

4. Adopt Resolution No. 50-24 readopting the City’s Investment Policy; and

5. Adopt Resolution No. 51-24 setting the FY 2024-25 GANN Appropriations Limit at $35,461,193.

FISCAL IMPACT
The total Citywide revenue budget for FY 2024-25 is $50.3 million (net of transfers), an increase of 5% over prior year, and the citywide expenditure budget for FY 2024-25 is $60.6 million (net of transfers), a 24% decrease over the prior year’s amended budget. This decrease is due to the substantial completion of the water treatment facility construction. Expenditures in excess of revenue will be covered by available fund balance to be used for one-time capital projects.

BACKGROUND
The City Council conducted two budget study sessions on May 28 and 29, 2024. During these discussions, the Council reviewed the City’s Operating and Capital Budget and provided feedback.

On May 21, 2024, the Citizens Finance Advisory Committee (CFAC) reviewed the Proposed Budget, including the Measure E Fund Budget. CFAC provided input that Council considered at the Budget Study Sessions in late May.

AGENDA NO: 9.a
MEETING DATE: June 25, 2024

DISCUSSION
Budget Changes: City Council made several changes to the FY 2024-25 proposed budget as presented during the budget study sessions in May 2024.

Staff has documented all changes from the Proposed budget that the Council reviewed in May to the Revised Proposed version dated June 25, 2025. The changes are summarized below and included in full detail as Exhibit 1 to Resolution No. 47-24 (Attachment 1) with references to the digital budget book sections and page numbers for the printed budget book. In addition to these substantive changes, minor narrative edits were implemented to ensure accurate and clear descriptions of all budget activity.
 Updated citywide personnel budgets in accordance with Council-approved increases for unrepresented groups, as well as tentative agreements with the Service Employees International Union (SEIU), Morro Bay Police Officers Association (MBPOA), and Morro Bay Fire Fighters Association (MBFFA);
 Decreased budget for the contract with the Chamber of Commerce;  Added revenue and expenditure budget to reflect Visit Morro Bay’s donation to the City’s 60th Anniversary celebrations;
 Added carryforward budget in Measure E for the Standards of Cover Study in progress (approved in the FY 2023-24 budget);
 Decreased the Water Operating Fund budget for water and electricity costs, more in line with actuals;
 Added budget for Utility Discount Program (equal to prior year);  Added an additional $25K Community Grants budget and budget for a professional goals facilitator to the City Council budget (both offset by ARPA revenues);  Updated IT Fund for needed software;
 Added budget for Annual Pavement Management Program for revised total new funding of $1.6M at the direction of the Council:
o Reallocated $350,000 from Sidewalk Improvements and Local Roadway Safety Plan; o Allocated $1,000,000 ($650,000 from General Fund and $350,000 from General Fund Capital Accumulation Fund);
o Maintained an estimated $269,666 from SB-1/RMRA funding.

The FY 2024-25 operating budget represents a structurally balanced budget with robust reserve levels which will be relied upon in the coming years absent a change in current revenue trends. In the General Fund, ongoing revenues are approximately $19.2 million. Ongoing General Fund expenditures (net of one-time transfers and capital expenditures) are approximately $19.1 million.

This projected ongoing operating surplus of $0.1 million (or up to $1.6 million if capital contributions had to be temporarily paused) will help maintain stability in the General Fund should a mild recession occur.

The City’s reserves in FY 2024-25 will protect the City's ability to continue to deliver core services in the event of an emergency, such as a natural disaster or significant fiscal distress. This budget projects that the City will have a total of over $16 million in reserves at the conclusion of the budget year, which equates to approximately 40% of the Citywide operating budget in FY 2024-25.

Salary Schedule and New Classifications:

To implement pay changes consistent with the FY 2024-25 operating budget, staff recommends that the Council approve the FY 2024-25, FY 2025-26, and FY 2026-27 Salary Schedules by adopting Resolution No. 48-24. The proposed salary schedules include the Cost-of-Living Adjustments (COLAs) and market/equity adjustments outlined in the tentative agreements and memorandums of understanding presented to the Council this evening in Consent Agenda Item 7d. The Salary Schedule also includes title changes for the following classifications:
 Consolidated Maintenance Superintendent  Maintenance Division Manager  Senior Administrative Services Analyst  Administrative Programs Manager  Information Systems Technician  Information Technology Manager  Finance Manager  Accounting Manager
 Fire Marshal/Division Chief  Deputy Chief/Fire Marshal These new titles better reflect the work being performed by the incumbents and are consistent with local government classification titles within our county. The Maintenance Division Manager and Administrative Programs Manager classifications will remain in their current scale, increased by COLA. The remaining classifications are proposed to move to higher scales, reflecting equity adjustments recommended by the City’s Classification & Compensation Study and Human Resources.

Staff also recommends the Council adopt Resolution No. 49-24 approving the Recreation Specialist job classifications, job descriptions, and establishing the salary range. The City and Service Employees International Union Local 620 (SEIU Local 620) met and conferred regarding the addition of this classification to the City’s Miscellaneous Employees Unit and regarding compensation and job description for this classification. At the Proposed Budget Study Sessions on May 28 and May 29, 2024, the Council approved two new full-time Recreation Specialist positions to replace two longterm part-time positions, Aquatics Coordinator and Kids Club Director. Additionally, Council approved a new position in the City Manager’s Office. The Assistant to the City Manager/Public Relations Manager job classification, job description, and salary range is also recommended for adoption via Resolution No. 49-24. Following approval at the City Council Budget Study sessions, city staff proceeded with the development of the job classifications/descriptions and salary placement. These are now being presented to Council for review and approval.

Fiscal Policies: In preparing this budget, staff took its primary direction from the guidelines established in the City of Morro Bay Fiscal Policies. There are several key fiscal policies that rise to the level of Council review and approval standards and are reviewed regularly by City Council. These policies are referenced and summarized in the City’s Budget document and posted in full on the City’s website. This report includes a resolution (Resolution No. 50-24) for Council to readopt the City’s Investment Policy as is required annually by State law. There are only minor technical updates to the policy. The policy delegates to specific positions and corresponding City personnel the authority to invest City funds. The previously approved title changes of two of the Finance Department’s positions required that this section be updated in the policy (page two). “Assistant City Manager/Administrative Services Director/Treasurer” was updated to “Finance Director/Treasurer”, and “Finance Manager” was updated to “Accounting Manager. The updated policy is included in Attachment 4.

Fiscal policies that City Council has reviewed recently but do not require changes at this time include the following, which were last reviewed and updated with the Council resolutions noted: Fund Balance Reserve Policies (Resolution No. 37-22), Revenue and Expenditure Policy (Resolution Nos. 52-21 and 53-21), Debt Management Policy (Resolution No. 43-18), Short-Term Fiscal Emergency Plan (Resolution No. 97-18), Long-Term Financial Planning Policy (Resolution No. 09-19), Financial Policies Related to Capital Assets (Resolution No. 59-19), and Donations and Grant Management Polices (Resolution No. 61-19). These policies are available in full on the City's website.

GANN Limit: State law requires the adoption of an annual appropriations limit, which restricts the growth of tax-funded programs and services by limiting the appropriation of proceeds of taxes. For FY 2024-25, the City of Morro Bay remains well under its appropriations limit. Proposition 4, known as the Gann Initiative, was approved by the California electorate in 1979. It is intended to restrict the growth of tax-funded programs and services by limiting the appropriation of the proceeds of taxes to the 1978-79 base year limit, as adjusted annually for changes in population and inflation. Proceeds of taxes in excess of the appropriations limit, with some exceptions, must be returned to the taxpayers by refund or reduction in tax rates unless an extension of the limit is approved by a majority popular vote. Proceeds of taxes include tax revenues and investment earnings related to those tax revenues, proceeds from licenses and users/charges to the extent that they exceed the cost to cover those services, and discretionary tax funds used for contingency, emergency, unemployment, reserve and retirement sinking funds, trust, or similar funds.

In June 1990, California voters approved Proposition 111, amending the Gann Initiative to provide local agencies with the option of using either the city or county population change percentage (whichever is greater). Another provision of the amendment states that the Gann limit would be triggered only if tax proceeds exceed the limit for two consecutive fiscal years. Additionally, the proposition requires an annual review of the appropriations limit calculation by a qualified independent auditor in conjunction with the annual financial audit.

The City is calculating this limit using the San Luis Obispo County population change and the California Per Capita Personal Income, referred to as the Price Factor (explained in exhibits to Attachment 5). According to the California Department of Finance, the population of San Luis Obispo County decreased by 0.08 percent between January 1, 2023, and January 1, 2024. The Per Capita Cost of Living increased by 3.62 percent. Applying these factors results in the following:
2024-25 Population and Per Capita Cost of Living Change Calculation:
 Per Capita Cost of Living Change = 3.62 percent
 Population Change = -0.08 percent
 Per Capita Cost of Living converted to a ratio: (3.62 + 100) divided by 100 = 1.0362  Population converted to a ratio: ( -0.08 + 100)/100 = 0.9992 Calculation Factor for FY 2024-25: 1.0362 x 0.9992 = 1.0353710 Prior year limit $34,249,744
Calculation Factor per DOF guidance x 1.0353710
Equals Appropriation Limit = $35,461,193
The FY 2024-25 budget estimate of revenues from the proceeds of taxes is $17,735,310, which is well below the appropriations limit (by $17,725,883 or 49.99%). Thus, the City’s finances are not

impacted by the appropriation limit. The calculation of estimated proceeds of taxes for FY 2024-25 is shown in detail in Exhibit 1 of Resolution 51-24. The calculation of FY 2024-25 Appropriations Limit is shown in Exhibit 2 of Resolution 51-24, along with a historical listing of prior year limits. Exhibit 3 of Resolution 51-24 is a copy of the California Department of Finance's change in population estimates between January 1, 2023 and January 1, 2024 and the California Department of Finance's published price factor.

CONCLUSION
Staff recommends adopting Resolution No. 47-24, which adopts the Fiscal Year 2024-25 Operating and Capital Budget, including the changes presented as an exhibit to the resolution. Staff also recommends approval of Resolution Nos. 48-24, 49-24, 50-24, and 51-24 associated with the FY 2024-25, FY 2025-26, and FY 2026-27 Salary Schedules, new job classifications, readopted investment policy, and the GANN appropriations limit.

ATTACHMENTS

1. Resolution No. 47-24 Adopting the FY 2024-25 Operating and Capital Budget as amended by changes contained in Exhibit 1.
a. Exhibit 1 – Changes since May 28-29 Budget Study Sessions (Errata) b. Exhibit 2 – Link to the Final Budget for FY 2024-25
i. Both the Digital Budget Book and the printable PDF version are available on the City’s website at https://www.morrobayca.gov/827/Budget.

2. Resolution No. 48-24 Adopting FY25-FY27 Salary Schedules a. Exhibit 1 – 2024-25 Salary Schedule
b. Exhibit 2 – 2025-26 Salary Schedule
c. Exhibit 3 – 2026-27 Salary Schedule

3. Resolution No. 49-24 Adopting Recreation Specialist Job Classification and Assistant to the City Manager/Public Relations Manager Job Classification a. Exhibit 1 – Recreation Specialist - Aquatics Job Description b. Exhibit 2 – Recreation Specialist – Youth Services Job Description c. Exhibit 3 – Assistant to the City Manager/Public Relations Manager Job Description

4. Resolution No. 50-24 Readopting the Investment Policy a. Exhibit 1 – 2024 Investment Policy

5. Resolution No. 51-24 Adopting the GANN Appropriations Limit for FY 2024-25 a. Exhibit 1 – 2024-25 Calculation of Estimated Proceeds of Taxes b. Exhibit 2 – 2024-25 Calculation of Appropriations Limit c. Exhibit 3 – 2024-25 California Department of Finance Price Factor and Population Estimates

6. Staff Presentation

RESOLUTION NO. 47-24

RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA,
ADOPTING THE FISCAL YEAR 2024-25 OPERATING AND CAPITAL BUDGET

T H E C I T Y C O U N C I L
City of Morro Bay, California
WHEREAS, the City of Morro Bay is required to appropriate and expend funds, to conduct the day-to-day business activity of the City; and
WHEREAS, the Morro Bay City Council finds and determines those appropriations and expenditures are necessary for continued efficiency, economy, and effectiveness of the City government operations; and
WHEREAS, the continuing efforts of staff to operate the business of the City, within an approved budget, and to create savings, wherever feasible, are acknowledged by the City Council; and WHEREAS, the City Council reviewed the Proposed Budget on May 28 and 29, 2024 and provided input, and there are no subsequent changes to the proposed budget since the May 28-29, 2024 Budget Study Sessions; and
WHEREAS, the City Council recognizes that Capital Improvement Projects and one-time expenditures of the American Rescue Plan Act (ARPA) and General Fund Vehicle Maintenance funds that were authorized and approved in the current and prior fiscal years, may not be completed by June 30, 2024; and
WHEREAS, the total Proposed Citywide revenue budget for FY 2024-25 is $50.3 million and the proposed citywide expenditure budget for FY 2024-25 is $60.6 million (net of transfers); NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California:

1. The Fiscal Year 2024-25 Operating and Capital Budget, attached hereto as Exhibit 2, at https://www.morrobayca.gov/827/Budget, and incorporated herein by reference, including the administrative corrections outlined in Exhibit 1 hereto and any amendments made during the City Council meeting dated June 25, 2024, are adopted and incorporated herein by reference; and

2. Staff is directed to incorporate the administrative corrections outlined in Exhibit 1 hereto and any amendments made during the City Council meeting dated June 25, 2024 and to prepare and publish a final adopted budget document, with approved amendments; and

3. Subject to paragraph 4, below, the City Manager is authorized to transfer appropriations within the adopted budget, including from and to capital projects or capital outlay items, so long as those changes do not significantly and negatively prevent implementation of any City Council direction or policy, and total appropriations are not exceeded; and

4. City Council approval is required to transfer appropriations between funds and may approve amendments to adopted budget by adoption of one or more resolutions; and

5. Notwithstanding paragraph 4 above, the City Council authorizes and directs staff to complete any necessary year-end reconciliation of allocations to and from compensated

absences reserves in accordance with the City of Morro Bay Reserve Policy, established by City Council via Resolution 37-22; and

6. City Council authorizes and directs the carry forward of unspent budget balances for capital projects, ARPA-funded projects, and General Fund Vehicle Replacement funds approved in the current and prior fiscal years, but not completed by June 30, 2024, to the Capital Improvement Project budgets, ARPA Project budgets, and GF Vehicle Replacement Fund budgets for the FY 2024-25 fiscal year; and

7. City Council approval is required for any proposed increase to the number of CalPERS benefited, budgeted positions, hired; and

8. Per City Council minute order May 24, 2004, any expenditures, in excess of the assessments received for the Cloister Assessment District, will be subsidized by the General Fund, without additional request made to the City Council; and PASSED AND ADOPTED, by the City Council of the City of Morro Bay, at a regular meeting thereof held on the 25th day of June 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

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

EXHIBIT 1 FY 2024-25 CHANGES FROM PROPOSED BUDGET TO ADOPTED BUDGET Description
Digital Budget Book
Section
Printed
Budget
Page Proposed
Adopted
Change
Amount Change Reason/Comment
Updated expenditures in Fund 907 to reduce Chamber of Commerce Consulting Services budget to $50,000.

Economic Development Fund Summary (Expenditures by Fund) 169 205,000 $ 155,000 $ (50,000) $ Per City Council action taken May 14, 2024.

Added $10,000 donation from Visit Morro Bay for 60th Anniversary celebration Recreation Services Department (Revenues by Source) 278 - $ 10,000 $ 10,000 $ Recognize additional revenue from donations Added $10,000 to Recreation Services supplies budget for 60th Anniversary celebration Recreation Services Department (Expenditures by Function) 281 - $ 10,000 $ 10,000 $ Offsetting expenditure for Visit Morro Bay donation Added $30,000 in Measure E, Non-Departmental, Consulting Services to recognize remaining budget necessary for Standards of Cover study authorized in FY24 budget and not yet completed.

Measure E Fund Summary (Expenditures by Department) 130 - $ 30,000 $ 30,000 $ Study in progress; because unused operating budget does not carry-forward each year, Council must authorize this budget again in FY25.

Moved BESS Developer Reimbursement Agreement revenue and offsetting expenditure from General Fund (001-7105) to Developer Reimbursement Agreements Fund (045-8806).

Developer Reimbursement Fund Summary 138 - $ 250,000 $ 250,000 $ Tracking all Developer Reimbursement Agreements (DRA) in one fund provides greater clarity and visibility and is consistent with current procedure for new agreements.

This fund was created after the BESS project started and this agreement is the last to be transitioned to the new DRA fund.

Updated water budget for Water Operating Fund to reflect better estimate based on recent actuals.

Water Operating Fund Summary (Expenditures by Expense Type) 191 50,000 $ 25,000 $ (25,000) $ In line with recent actuals.

EXHIBIT 1 FY 2024-25 CHANGES FROM PROPOSED BUDGET TO ADOPTED BUDGET Description
Digital Budget Book
Section
Printed
Budget
Page Proposed
Adopted
Change
Amount Change Reason/Comment
Updated electricity budget for Water Operating Fund to reflect better estimate using recent years' actuals.

Water Operating Fund Summary (Expenditures by Expense Type) 191 550,000 $ 300,000 $ (250,000) $ High budget estimates in recent years were due to uncertainty of WRF electrical consumption; two years' of operating actuals have informed the current projection.

Sewer Operating Fund Transfer In from Utility Discounts/Rebates Fund Sewer Operating Fund Summary (Revenues by Source) 184 - $ 37,000 $ 37,000 $ Utility Discount Fund Summary was not completed at time of Proposed Budget release.

Sewer Operating Fund Transfer Out to Utility Discounts/Rebates Fund Sewer Operating Fund Summary (Expenditures by Expense Type) 186 - $ 30,000 $ 30,000 $ Utility Discount Fund Summary was not completed at time of Proposed Budget release.

Water Operating Fund Transfer In from Utility Discounts/Rebates Fund Water Operating Fund Summary (Revenues by Source) 190 - $ 30,000 $ 30,000 $ Utility Discount Fund Summary was not completed at time of Proposed Budget release.

Water Operating Fund Transfer Out to Utility Discounts/Rebates Fund Water Operating Fund Summary (Expenditures by Expense Type) 191 - $ 30,000 $ 30,000 $ Utility Discount Fund Summary was not completed at time of Proposed Budget release.

Utility Discounts/Rebates Transfers In from Operating Funds Utility Discount Fund Summary (Revenue by Fund) 195 - $ 60,000 $ 60,000 $ Utility Discount Fund Summary was not completed at time of Proposed Budget release.

Utility Discounts/Rebates Transfers Out to Operating Funds Utility Discount Fund Summary (Expenditures by Fund) 196 - $ 67,000 $ 67,000 $ Utility Discount Fund Summary was not completed at time of Proposed Budget release.

Utility Discounts/Rebate Line Items Entered

EXHIBIT 1 FY 2024-25 CHANGES FROM PROPOSED BUDGET TO ADOPTED BUDGET Description
Digital Budget Book
Section
Printed
Budget
Page Proposed
Adopted
Change
Amount Change Reason/Comment
Removed supplies & services expenditure budget from ARPA.

American Rescue Plan Act Fund (ARPA) Fund Summary (Expenditures by Function) 137 35,000 $ - $ (35,000) $ Residual budget not yet expended from ARPA funds; transfer to General Fund for revenue recovery due to COVID-19. No expenditures to post in ARPA fund.

Added transfer out of ARPA to General Fund to include previously budgeted supplies & services, plus remaining unspent funds from prior years.

American Rescue Plan Act Fund (ARPA) Fund Summary (Expenditures by Function) 137 - $ 60,504 $ 60,504 $ Residual budget not yet expended from ARPA funds; transfer to General Fund for revenue recovery due to COVID-19. No expenditures to post in ARPA fund.

Updated transfer in to General Fund from ARPA Fund
General Fund Fund Summary (Revenues by Source) 100 - $ 60,504 $ 60,504 $ Residual budget not yet expended from ARPA funds; transfer to General Fund for revenue recovery due to COVID-19.

Updated City Council Consulting Services Budget to Reflect ARPA-funded goals facilitator City Council (Expenditures by Function) 205 - $ 29,200 $ 29,200 $ Staff recommends budgeting $25K for a professional facilitator for City Council Strategic Planning Updated City Council Payment to Other Agency Budget to reflect ARPA-funded Community Grants Program Increase City Council (Expenditures by Function) 205 36,500 $ 61,500 $ 25,000 $ Staff recommends budgeting $25K for a one-time increase to Community Grants Program (offset by ARPA funding) Added Info Tech Research Group IT Audit & Support contract to Information Technology Consulting Services Budget Information Technology Fund Summary (Expenditures by Expense Type) 124 69,300 $ 119,300 $ 50,000 $ Recommended to support new IT leadership Added CivicPlus Compliance Module to the Information Technology Digital Services budget Information Technology Fund Summary (Expenditures by Expense Type) 124 447,252 $ 455,252 $ 8,000 $ Recommended to increase ADA compliance

EXHIBIT 1 FY 2024-25 CHANGES FROM PROPOSED BUDGET TO ADOPTED BUDGET Description
Digital Budget Book
Section
Printed
Budget
Page Proposed
Adopted
Change
Amount Change Reason/Comment
Added DebtBook contract to Information Technology Digital Services Budget Information Technology Fund Summary (Expenditures by Expense Type) 124 455,252 $ 479,252 $ 24,000 $ Recommended to track and report debt per Government Accounting Standards Board; cost partially offset by staff time efficiency
Added funding contribution from Capital Accumulation Fund to General Capital Improvements Fund for the Annual Pavement Management Program General Fund Capital Accumulation Fund Summary (Expenditures by Fund) 116 144,579 $ 494,579 $ 350,000 $ Per City Council Direction at Budget Study Session #2 Removed expenditure budget for Sidewalk Improvements/Street Tree Replacement Project in General CIP Fund Measure Q&E Fund Summary (Expenditures by Department) 129 250,000 $ - $ (250,000) $ Per City Council Direction at Budget Study Session #1 Removed budget for Local Roadway Safety Plan Project in General CIP Fund Measure Q&E Fund Summary (Expenditures by Department) 129 100,000 $ - $ (100,000) $ Per City Council Direction at Budget Study Session #1 Increased expenditure budget for Annual Pavement Management Plan in General CIP Fund Measure Q&E Fund Summary (Expenditures by Department) 129 269,999 $ 619,999 $ 350,000 $ Per City Council Direction at Budget Study Session #1 Added transfer out of General Fund for Annual Pavement Management Program funding General Fund Summary (Expenditures by Expense Type) 105 - $ 650,000 $ 650,000 $ Per City Council Direction at Budget Study Session #2 Updated transfer into General CIP Fund for Annual Pavement Management Program funding General Government Capital Projects Fund Summary (Revenue by Fund) 133 269,999 $ 1,619,999 $ 1,350,000 $ Per City Council Direction at Budget Study Session #2 Entered CFAC Changes Approved by City Council

RESOLUTION NO. 48-24

RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA,
APPROVING MODIFICATIONS TO THE FISCAL YEAR 2024-25,
FISCAL YEAR 2025-26, AND FISCAL YEAR 2026-27 SALARY SCHEDULES

T H E C I T Y C O U N C I L
City of Morro Bay, California
WHEREAS, the California Public Employees’ Retirement System (CalPERS), has requested all CalPERS employers list their compensation levels on one document, approved and adopted by the governing body, in accordance with 2 California Code of Regulations (CCR), section 570.5, and meeting all of the following requirements thereof:

1. Has been duly approved and adopted by the employer’s governing body in accordance with requirements of applicable public meetings laws;

2. Identifies the position title for every employee position;

3. Shows the pay rate for each identified position, which may be stated as a single amount or as multiple amounts within a range;

4. Indicates the time base, including, but not limited to, whether the time base is hourly, daily, bi-weekly, monthly, bi-monthly, or annually;

5. Is posted at the office of the employer or immediately accessible and available for public review from the employer during normal business hours or posted on the employer’s internet website;

6. Indicates an effective date and date of any revisions;

7. Is retained by the employer and available for public inspection for not less than five years; and

8. Does not reference another document in lieu of disclosing the pay rate; and WHEREAS, the formal approval of the pay schedules requires that they are duly approved and adopted by the City Council, and the 2 CCR 570.5 regulation requires the adoption of the Salary Schedule for Fiscal Year 2024-25, Fiscal Year 2025-26, and Fiscal Year 2026-27, attached as Exhibits A-C and incorporated herein by reference.
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NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Morro Bay does hereby approve the Fiscal Year 2024-25, Fiscal Year 2025-26, and Fiscal Year 2026-27 Salary Schedules attached hereto as Exhibit A-C.

PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 25th day of June 2024 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

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

CITY OF MORRO BAY

COMBINED PAY SCHEDULE
FISCAL YEAR 2024-25: Effective 07/01/2024
TITLE GROUP STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 SEIU LOCAL 620 GROUP STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 ACCOUNT CLERK IN-TRAINING MISC 18.96 19.92 20.92 21.96 23.06 39,437 41,434 43,514 45,677 47,965 ACCOUNT CLERK I MISC 22.93 24.08 25.28 26.54 27.87 47,694 50,086 52,582 55,203 57,970 CONSOLIDATED MAINTENANCE WRK I MISC 22.93 24.08 25.28 26.54 27.87 47,694 50,086 52,582 55,203 57,970 OFFICE ASST. III MISC 22.93 24.08 25.28 26.54 27.87 47,694 50,086 52,582 55,203 57,970 OFFICE ASST. IV MISC 24.79 26.03 27.33 28.70 30.14 51,563 54,142 56,846 59,696 62,691 ACCOUNT CLERK II MISC 25.76 27.05 28.39 29.82 31.31 53,581 56,264 59,051 62,026 65,125 CONSOLIDATED MAINTENANCE WRK II MISC 25.76 27.05 28.39 29.82 31.31 53,581 56,264 59,051 62,026 65,125 RECREATION SPECIALIST MISC 25.76 27.05 28.39 29.82 31.31 53,581 56,264 59,051 62,026 65,125 ACCOUNT CLERK III MISC 27.58 28.97 30.42 31.93 33.53 57,366 60,258 63,274 66,414 69,742 CONSOLIDATED MAINTENANCE WRK III MISC 27.58 28.97 30.42 31.93 33.53 57,366 60,258 63,274 66,414 69,742 PERMIT TECHNICIAN MISC 28.08 29.47 30.95 32.50 34.13 58,406 61,298 64,376 67,600 70,990 ADMINISTRATIVE TECHNICIAN MISC 28.08 29.47 30.95 32.50 34.13 58,406 61,298 64,376 67,600 70,990 BUILDING PERMIT TECHNICIAN I MISC 28.08 29.47 30.95 32.50 34.13 58,406 61,298 64,376 67,600 70,990 SUPPORT SERVICES TECHNICIAN MISC 28.08 29.47 30.95 32.50 34.13 58,406 61,298 64,376 67,600 70,990 PROPERTY EVIDENCE CLERK MISC 28.08 29.47 30.95 32.50 34.13 58,406 61,298 64,376 67,600 70,990 COMMUNITY SERVICES OFFICER MISC 28.08 29.47 30.95 32.50 34.13 58,406 61,298 64,376 67,600 70,990 MECHANIC MISC 28.97 30.42 31.94 33.54 35.22 60,258 63,274 66,435 69,763 73,258 RECREATION COORDINATOR MISC 28.97 30.42 31.94 33.54 35.22 60,258 63,274 66,435 69,763 73,258 ENGINEERING TECHNICIAN III MISC 32.81 34.45 36.18 37.99 39.89 68,245 71,656 75,254 79,019 82,971 MAINTENANCE LEADWORKER MISC 32.81 34.45 36.18 37.99 39.89 68,245 71,656 75,254 79,019 82,971 BUILDING PERMIT TECHNICIAN II MISC 32.81 34.45 36.18 37.99 39.89 68,245 71,656 75,254 79,019 82,971 UTILITY OPERATOR MISC 32.87 34.51 36.24 38.04 39.95 68,370 71,781 75,379 79,123 83,096 UTILITY SUPPORT COORDINATOR MISC 32.87 34.51 36.24 38.04 39.95 68,370 71,781 75,379 79,123 83,096 ASSISTANT PLANNER MISC 34.18 36.44 37.67 39.56 41.54 71,094 75,795 78,354 82,285 86,403 BUILDING INSPECTOR MISC 34.34 36.06 37.85 39.75 41.74 71,427 75,005 78,728 82,680 86,819 BUILDING INSPECTOR/CODE ENF OFFICER MISC 34.34 36.06 37.85 39.75 41.74 71,427 75,005 78,728 82,680 86,819 RECREATION SUPERVISOR MISC 34.45 36.18 37.99 39.89 41.88 71,656 75,254 79,019 82,971 87,110 HARBOR PATROL OFFICER MISC 34.53 36.27 38.07 39.98 41.98 71,822 75,442 79,186 83,158 87,318 UTILITY OPERATOR MC (MULTIPLE CERT) MISC 35.16 36.93 38.77 40.71 42.75 73,133 76,814 80,642 84,677 88,920

HOURLY RATES ANNUAL SALARY EQUIVALENT

CITY OF MORRO BAY

COMBINED PAY SCHEDULE
FISCAL YEAR 2024-25: Effective 07/01/2024
TITLE GROUP STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6

HOURLY RATES ANNUAL SALARY EQUIVALENT
IT SYSTEMS ANALYST MISC 38.43 40.35 42.37 44.49 46.71 79,934 83,928 88,130 92,539 97,157 ENGINEERING TECHNICIAN IV MISC 38.43 40.35 42.37 44.49 46.71 79,934 83,928 88,130 92,539 97,157 ASSISTANT ENGINEER MISC 38.43 40.35 42.37 44.49 46.71 79,934 83,928 88,130 92,539 97,157 ASSOCIATE PLANNER MISC 38.43 40.35 42.37 44.49 46.71 79,934 83,928 88,130 92,539 97,157 BUILDING INSPECTOR/PLANS EXAMINER MISC 38.43 40.35 42.37 44.49 46.71 79,934 83,928 88,130 92,539 97,157 CONSOLIDATED MAINT FIELD SUPV MISC 38.43 40.35 42.37 44.49 46.71 79,934 83,928 88,130 92,539 97,157 PUBLIC WORKS INSPECTOR MISC 38.43 40.35 42.37 44.49 46.71 79,934 83,928 88,130 92,539 97,157 HARBOR BUSINESS COORD MISC 38.94 40.89 42.93 45.08 47.33 80,995 85,051 89,294 93,766 98,446 LEAD UTILITY OPERATOR MISC 39.17 41.13 43.18 45.34 47.61 81,474 85,550 89,814 94,307 99,029 OPERATIONAL TECHNOLOGY SPECIALIST MISC 41.12 43.18 45.33 47.60 49.98 85,530 89,814 94,286 99,008 103,958 HARBOR PATROL SUPERVISOR MISC 42.66 44.79 47.03 49.38 51.86 88,733 93,163 97,822 102,710 107,869 ASSOCIATE ENGINEER MISC 44.19 46.40 48.72 51.16 53.72 91,915 96,512 101,338 106,413 111,738 WASTEWATER SYSTEMS SUPV MISC 44.19 46.40 48.72 51.16 53.72 91,915 96,512 101,338 106,413 111,738 MORRO BAY PEACE OFFICERS' ASSOC. GROUP STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 POLICE OFFICER POA 39.53 41.50 43.58 45.76 48.05 50.45 82,222 86,320 90,646 95,181 99,944 104,936 POLICE DETECTIVE POA 41.50 43.58 45.76 48.05 50.45 52.97 86,320 90,646 95,181 99,944 104,936 110,178 POLICE SCHOOL RESOURCE OFFICER POA 41.50 43.58 45.76 48.05 50.45 52.97 86,320 90,646 95,181 99,944 104,936 110,178 POLICE SENIOR OFFICER POA 41.50 43.58 45.76 48.05 50.45 52.97 86,320 90,646 95,181 99,944 104,936 110,178 POLICE SERGEANT POA 50.67 53.21 55.87 58.67 61.59 64.68 105,394 110,677 116,210 122,034 128,107 134,534 MORRO BAY FIRE FIGHTERS ASSOC. GROUP STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 FIREFIGHTER FFA 25.83 27.13 28.48 29.91 31.41 75,217 79,003 82,934 87,098 91,466 FIREFIGHTER/PARAMEDIC FFA 28.41 29.84 31.33 32.90 34.54 82,730 86,894 91,233 95,805 100,580 FIRE ENGINEER FFA 28.24 29.66 31.14 32.69 34.33 82,235 86,370 90,680 95,193 99,969 FIRE ENGINEER/PARAMEDIC FFA 31.07 32.63 34.26 35.96 37.77 90,476 95,019 99,765 104,716 109,986 FIRE CAPTAIN FFA 32.48 34.08 35.79 37.58 39.46 94,582 99,241 104,220 109,433 114,908 FIRE CAPTAIN/PARAMEDIC FFA 35.72 37.50 39.38 41.34 43.42 104,017 109,200 114,675 120,382 126,439 FIRE MARSHAL FFA 38.55 40.47 42.49 44.61 46.85 112,258 117,849 123,731 129,904 136,427

CITY OF MORRO BAY

COMBINED PAY SCHEDULE
FISCAL YEAR 2024-25: Effective 07/01/2024
TITLE GROUP STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6

HOURLY RATES ANNUAL SALARY EQUIVALENT
UNREPRESENTED CONFIDENTIAL GROUP STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 HUMAN RESOURCES ANALYST I CONF 31.96 33.56 35.24 36.99 38.84 66,477 69,805 73,299 76,939 80,787 EXECUTIVE ASSISTANT/DEPUTY CLERK CONF 34.34 36.06 37.85 39.75 41.74 71,427 75,005 78,728 82,680 86,819 SENIOR ACCOUNTING TECHNICIAN CONF 35.69 37.47 39.35 41.32 43.39 74,235 77,938 81,848 85,946 90,251 FISCAL ANALYST CONF 38.43 40.35 42.37 44.49 46.71 79,934 83,928 88,130 92,539 97,157 HUMAN RESOURCES ANALYST II CONF 38.43 40.35 42.37 44.49 46.71 79,934 83,928 88,130 92,539 97,157 UNREPRESENTED MANAGEMENT GROUP STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 MANAGEMENT ANALYST MGMT 39.24 41.20 43.26 45.42 47.69 81,619 85,696 89,981 94,474 99,195 POLICE SUPPORT SERVICES MANAGER MGMT 39.24 41.20 43.26 45.42 47.69 81,619 85,696 89,981 94,474 99,195 MAINTENANCE DIVISION MANAGER MGMT 45.89 48.18 50.59 53.12 55.78 95,451 100,214 105,227 110,490 116,022 ADMINISTRATIVE PROGRAMS MANAGER MGMT 45.89 48.18 50.59 53.12 55.78 95,451 100,214 105,227 110,490 116,022 ASST. TO THE CITY MANAGER/PR MANAGER MGMT 45.89 48.18 50.59 53.12 55.78 95,451 100,214 105,227 110,490 116,022 SENIOR PLANNER MGMT 45.89 48.18 50.59 53.12 55.78 95,451 100,214 105,227 110,490 116,022 CHIEF BUILDING INSP/PLANS EXAMINER MGMT 47.20 49.56 52.03 54.64 57.37 98,176 103,085 108,222 113,651 119,330 CITY CLERK MGMT 47.20 49.56 52.03 54.64 57.37 98,176 103,085 108,222 113,651 119,330 INFORMATION TECHNOLOGY MANAGER MGMT 47.20 49.56 52.03 54.64 57.37 98,176 103,085 108,222 113,651 119,330 RECREATION SERVICES MANAGER MGMT 47.20 49.56 52.03 54.64 57.37 98,176 103,085 108,222 113,651 119,330 PLANNING MANAGER MGMT 51.92 54.52 57.24 60.10 63.10 107,994 113,402 119,059 125,008 131,248 HUMAN RESOURCES/RISK MANAGER MGMT 51.92 54.52 57.24 60.10 63.10 107,994 113,402 119,059 125,008 131,248 ACCOUNTING MANAGER MGMT 51.92 54.52 57.24 60.10 63.10 107,994 113,402 119,059 125,008 131,248 SENIOR CIVIL ENGINEER MGMT 51.92 54.52 57.24 60.10 63.10 107,994 113,402 119,059 125,008 131,248 CITY ENGINEER MGMT 59.49 62.46 65.58 68.87 72.31 123,739 129,917 136,406 143,250 150,405 UTILITY DIVISION MANAGER MGMT 59.49 62.46 65.58 68.87 72.31 123,739 129,917 136,406 143,250 150,405 DEPUTY CHIEF / FIRE MARSHAL MGMT 63.07 66.23 69.53 73.01 76.66 131,186 137,758 144,622 151,861 159,453 POLICE COMMANDER MGMT 68.70 72.13 75.74 79.52 83.51 142,896 150,030 157,539 165,402 173,701

CITY OF MORRO BAY

COMBINED PAY SCHEDULE
FISCAL YEAR 2024-25: Effective 07/01/2024
TITLE GROUP STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6

HOURLY RATES ANNUAL SALARY EQUIVALENT
DEPARTMENT HEADS/EXECUTIVE GROUP STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 COMMUNITY DEVELOPMENT DIRECTOR EXEC 75.63 79.41 83.39 87.56 91.94 157,310 165,173 173,451 182,125 191,235 PUBLIC WORKS DIRECTOR EXEC 75.63 79.41 83.39 87.56 91.94 157,310 165,173 173,451 182,125 191,235 FINANCE DIRECTOR EXEC 75.63 79.41 83.39 87.56 91.94 157,310 165,173 173,451 182,125 191,235 HARBOR DIRECTOR* EXEC 77.05 80.90 84.95 89.19 93.65 160,264 168,272 176,696 185,515 194,792 FIRE CHIEF (Sworn) EXEC 77.05 80.90 84.95 89.19 93.65 160,264 168,272 176,696 185,515 194,792 POLICE CHIEF (Sworn) EXEC 77.05 80.90 84.95 89.19 93.65 160,264 168,272 176,696 185,515 194,792 CITY MANAGER CM 101.94 104.50 107.10 109.78 112.53 212,035 217,360 222,768 228,342 234,062 *Position will be eliminated on 7/20/2024.

CITY OF MORRO BAY

COMBINED PAY SCHEDULE
FISCAL YEAR 2025-26: Effective 07/01/2025
TITLE GROUP STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 SEIU LOCAL 620 GROUP STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 ACCOUNT CLERK IN-TRAINING MISC 19.91 20.92 21.97 23.06 24.21 41,413 43,514 45,698 47,965 50,357 ACCOUNT CLERK I MISC 24.08 25.28 26.54 27.87 29.26 50,086 52,582 55,203 57,970 60,861 CONSOLIDATED MAINTENANCE WRK I MISC 24.08 25.28 26.54 27.87 29.26 50,086 52,582 55,203 57,970 60,861 OFFICE ASST. III MISC 24.08 25.28 26.54 27.87 29.26 50,086 52,582 55,203 57,970 60,861 OFFICE ASST. IV MISC 26.03 27.33 28.70 30.14 31.65 54,142 56,846 59,696 62,691 65,832 ACCOUNT CLERK II MISC 27.05 28.40 29.81 31.31 32.88 56,264 59,072 62,005 65,125 68,390 CONSOLIDATED MAINTENANCE WRK II MISC 27.05 28.40 29.81 31.31 32.88 56,264 59,072 62,005 65,125 68,390 RECREATION SPECIALIST MISC 27.05 28.40 29.81 31.31 32.88 56,264 59,072 62,005 65,125 68,390 ACCOUNT CLERK III MISC 28.96 30.42 31.94 33.53 35.21 60,237 63,274 66,435 69,742 73,237 CONSOLIDATED MAINTENANCE WRK III MISC 28.96 30.42 31.94 33.53 35.21 60,237 63,274 66,435 69,742 73,237 PERMIT TECHNICIAN MISC 29.48 30.94 32.50 34.13 35.84 61,318 64,355 67,600 70,990 74,547 ADMINISTRATIVE TECHNICIAN MISC 29.48 30.94 32.50 34.13 35.84 61,318 64,355 67,600 70,990 74,547 BUILDING PERMIT TECHNICIAN I MISC 29.48 30.94 32.50 34.13 35.84 61,318 64,355 67,600 70,990 74,547 SUPPORT SERVICES TECHNICIAN MISC 29.48 30.94 32.50 34.13 35.84 61,318 64,355 67,600 70,990 74,547 PROPERTY EVIDENCE CLERK MISC 29.48 30.94 32.50 34.13 35.84 61,318 64,355 67,600 70,990 74,547 COMMUNITY SERVICES OFFICER MISC 29.48 30.94 32.50 34.13 35.84 61,318 64,355 67,600 70,990 74,547 MECHANIC MISC 30.42 31.94 33.54 35.22 36.98 63,274 66,435 69,763 73,258 76,918 RECREATION COORDINATOR MISC 30.42 31.94 33.54 35.22 36.98 63,274 66,435 69,763 73,258 76,918 ENGINEERING TECHNICIAN III MISC 34.45 36.17 37.99 39.89 41.88 71,656 75,234 79,019 82,971 87,110 MAINTENANCE LEADWORKER MISC 34.45 36.17 37.99 39.89 41.88 71,656 75,234 79,019 82,971 87,110 BUILDING PERMIT TECHNICIAN II MISC 34.45 36.17 37.99 39.89 41.88 71,656 75,234 79,019 82,971 87,110 UTILITY OPERATOR MISC 34.51 36.24 38.05 39.94 41.95 71,781 75,379 79,144 83,075 87,256 UTILITY SUPPORT COORDINATOR MISC 34.51 36.24 38.05 39.94 41.95 71,781 75,379 79,144 83,075 87,256 ASSISTANT PLANNER MISC 35.89 38.26 39.55 41.54 43.62 74,651 79,581 82,264 86,403 90,730 BUILDING INSPECTOR MISC 36.06 37.86 39.74 41.74 43.83 75,005 78,749 82,659 86,819 91,166 BUILDING INSPECTOR/CODE ENF OFFICER MISC 36.06 37.86 39.74 41.74 43.83 75,005 78,749 82,659 86,819 91,166 RECREATION SUPERVISOR MISC 36.17 37.99 39.89 41.88 43.97 75,234 79,019 82,971 87,110 91,458 HARBOR PATROL OFFICER MISC 36.26 38.08 39.97 41.98 44.08 75,421 79,206 83,138 87,318 91,686 UTILITY OPERATOR MC (MULTIPLE CERT) MISC 36.92 38.78 40.71 42.75 44.89 76,794 80,662 84,677 88,920 93,371

HOURLY RATES ANNUAL SALARY EQUIVALENT

CITY OF MORRO BAY

COMBINED PAY SCHEDULE
FISCAL YEAR 2025-26: Effective 07/01/2025
TITLE GROUP STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6

HOURLY RATES ANNUAL SALARY EQUIVALENT
IT SYSTEMS ANALYST MISC 40.35 42.37 44.49 46.71 49.05 83,928 88,130 92,539 97,157 102,024 ENGINEERING TECHNICIAN IV MISC 40.35 42.37 44.49 46.71 49.05 83,928 88,130 92,539 97,157 102,024 ASSISTANT ENGINEER MISC 40.35 42.37 44.49 46.71 49.05 83,928 88,130 92,539 97,157 102,024 ASSOCIATE PLANNER MISC 40.35 42.37 44.49 46.71 49.05 83,928 88,130 92,539 97,157 102,024 BUILDING INSPECTOR/PLANS EXAMINER MISC 40.35 42.37 44.49 46.71 49.05 83,928 88,130 92,539 97,157 102,024 CONSOLIDATED MAINT FIELD SUPV MISC 40.35 42.37 44.49 46.71 49.05 83,928 88,130 92,539 97,157 102,024 PUBLIC WORKS INSPECTOR MISC 40.35 42.37 44.49 46.71 49.05 83,928 88,130 92,539 97,157 102,024 HARBOR BUSINESS COORD MISC 40.89 42.93 45.08 47.33 49.70 85,051 89,294 93,766 98,446 103,376 LEAD UTILITY OPERATOR MISC 41.13 43.19 45.34 47.61 49.99 85,550 89,835 94,307 99,029 103,979 OPERATIONAL TECHNOLOGY SPECIALIST MISC 43.18 45.34 47.60 49.98 52.48 89,814 94,307 99,008 103,958 109,158 HARBOR PATROL SUPERVISOR MISC 44.79 47.03 49.38 51.85 54.45 93,163 97,822 102,710 107,848 113,256 ASSOCIATE ENGINEER MISC 46.40 48.72 51.16 53.72 56.41 96,512 101,338 106,413 111,738 117,333 WASTEWATER SYSTEMS SUPV MISC 46.40 48.72 51.16 53.72 56.41 96,512 101,338 106,413 111,738 117,333 MORRO BAY PEACE OFFICERS' ASSOC. (Sworn) GROUP STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 POLICE OFFICER POA 42.30 44.41 46.63 48.96 51.41 53.98 87,984 92,373 96,990 101,837 106,933 112,278 POLICE DETECTIVE POA 44.41 46.63 48.96 51.41 53.98 56.68 92,373 96,990 101,837 106,933 112,278 117,894 POLICE SCHOOL RESOURCE OFFICER POA 44.41 46.63 48.96 51.41 53.98 56.68 92,373 96,990 101,837 106,933 112,278 117,894 POLICE SENIOR OFFICER POA 44.41 46.63 48.96 51.41 53.98 56.68 92,373 96,990 101,837 106,933 112,278 117,894 POLICE SERGEANT POA 54.22 56.93 59.78 62.78 65.90 69.21 112,778 118,414 124,342 130,582 137,072 143,957 MORRO BAY FIRE FIGHTERS ASSOC. (Sworn)GROUP STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 FIREFIGHTER FFA 27.38 28.76 30.19 31.70 33.29 79,731 83,749 87,913 92,310 96,940 FIREFIGHTER/PARAMEDIC FFA 30.11 31.63 33.21 34.87 36.61 87,680 92,107 96,708 101,541 106,608 FIRE ENGINEER FFA 29.93 31.44 33.01 34.65 36.39 87,156 91,553 96,125 100,901 105,968 FIRE ENGINEER/PARAMEDIC FFA 32.93 34.59 36.32 38.12 40.04 95,892 100,726 105,764 111,005 116,596 FIRE CAPTAIN FFA 34.43 36.12 37.94 39.83 41.83 100,260 105,181 110,481 115,985 121,809 FIRE CAPTAIN/PARAMEDIC FFA 37.86 39.75 41.74 43.82 46.03 110,248 115,752 121,547 127,604 134,039 FIRE MARSHAL FFA 40.86 42.90 45.04 47.29 49.66 118,984 124,925 131,156 137,708 144,610

CITY OF MORRO BAY

COMBINED PAY SCHEDULE
FISCAL YEAR 2025-26: Effective 07/01/2025
TITLE GROUP STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6

HOURLY RATES ANNUAL SALARY EQUIVALENT
UNREPRESENTED CONFIDENTIAL GROUP STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 HUMAN RESOURCES ANALYST I CONF 33.56 35.24 37.00 38.84 40.78 69,805 73,299 76,960 80,787 84,822 EXECUTIVE ASSISTANT/DEPUTY CLERK CONF 36.06 37.86 39.74 41.74 43.83 75,005 78,749 82,659 86,819 91,166 SENIOR ACCOUNTING TECHNICIAN CONF 37.47 39.34 41.32 43.39 45.56 77,938 81,827 85,946 90,251 94,765 FISCAL ANALYST CONF 40.35 42.37 44.49 46.71 49.05 83,928 88,130 92,539 97,157 102,024 HUMAN RESOURCES ANALYST II CONF 40.35 42.37 44.49 46.71 49.05 83,928 88,130 92,539 97,157 102,024 UNREPRESENTED MANAGEMENT GROUP STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 MANAGEMENT ANALYST MGMT 41.20 43.26 45.42 47.69 50.07 85,696 89,981 94,474 99,195 104,146 POLICE SUPPORT SERVICES MANAGER MGMT 41.20 43.26 45.42 47.69 50.07 85,696 89,981 94,474 99,195 104,146 MAINTENANCE DIVISION MANAGER MGMT 48.18 50.59 53.12 55.78 58.57 100,214 105,227 110,490 116,022 121,826 ADMINISTRATIVE PROGRAMS MANAGER MGMT 48.18 50.59 53.12 55.78 58.57 100,214 105,227 110,490 116,022 121,826 ASST. TO THE CITY MANAGER/PR MANAGER MGMT 48.18 50.59 53.12 55.78 58.57 100,214 105,227 110,490 116,022 121,826 SENIOR PLANNER MGMT 48.18 50.59 53.12 55.78 58.57 100,214 105,227 110,490 116,022 121,826 CHIEF BUILDING INSP/PLANS EXAMINER MGMT 50.50 53.03 55.67 58.46 61.39 105,040 110,302 115,794 121,597 127,691 CITY CLERK MGMT 50.50 53.03 55.67 58.46 61.39 105,040 110,302 115,794 121,597 127,691 INFORMATION TECHNOLOGY MANAGER MGMT 50.50 53.03 55.67 58.46 61.39 105,040 110,302 115,794 121,597 127,691 RECREATION SERVICES MANAGER MGMT 50.50 53.03 55.67 58.46 61.39 105,040 110,302 115,794 121,597 127,691 PLANNING MANAGER MGMT 55.55 58.34 61.25 64.31 67.52 115,544 121,347 127,400 133,765 140,442 HUMAN RESOURCES/RISK MANAGER MGMT 55.55 58.34 61.25 64.31 67.52 115,544 121,347 127,400 133,765 140,442 ACCOUNTING MANAGER MGMT 55.55 58.34 61.25 64.31 67.52 115,544 121,347 127,400 133,765 140,442 SENIOR CIVIL ENGINEER MGMT 55.55 58.34 61.25 64.31 67.52 115,544 121,347 127,400 133,765 140,442 CITY ENGINEER MGMT 62.46 65.58 68.86 72.31 75.93 129,917 136,406 143,229 150,405 157,934 UTILITY DIVISION MANAGER MGMT 62.46 65.58 68.86 72.31 75.93 129,917 136,406 143,229 150,405 157,934 DEPUTY CHIEF / FIRE MARSHAL MGMT 66.85 70.20 73.70 77.39 81.26 139,048 146,016 153,296 160,971 169,021 POLICE COMMANDER MGMT 73.51 77.18 81.04 85.09 89.36 152,901 160,534 168,563 176,987 185,869

CITY OF MORRO BAY

COMBINED PAY SCHEDULE
FISCAL YEAR 2025-26: Effective 07/01/2025
TITLE GROUP STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6

HOURLY RATES ANNUAL SALARY EQUIVALENT
DEPARTMENT HEADS/EXECUTIVE GROUP STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 COMMUNITY DEVELOPMENT DIRECTOR EXEC 79.41 83.38 87.56 91.94 96.54 165,173 173,430 182,125 191,235 200,803 PUBLIC WORKS DIRECTOR EXEC 79.41 83.38 87.56 91.94 96.54 165,173 173,430 182,125 191,235 200,803 FINANCE DIRECTOR EXEC 79.41 83.38 87.56 91.94 96.54 165,173 173,430 182,125 191,235 200,803 FIRE CHIEF (Sworn) EXEC 80.90 84.95 89.20 93.65 98.33 168,272 176,696 185,536 194,792 204,526 POLICE CHIEF (Sworn) EXEC 80.90 84.95 89.20 93.65 98.33 168,272 176,696 185,536 194,792 204,526 CITY MANAGER CM 107.04 109.73 112.46 115.27 118.16 222,643 228,238 233,917 239,762 245,773

CITY OF MORRO BAY

COMBINED PAY SCHEDULE
FISCAL YEAR 2026-27: Effective 07/01/2026
TITLE GROUP STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 SEIU LOCAL 620 GROUP STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 ACCOUNT CLERK IN-TRAINING MISC 20.91 21.97 23.07 24.21 25.42 43,493 45,698 47,986 50,357 52,874 ACCOUNT CLERK I MISC 25.28 26.54 27.87 29.26 30.72 52,582 55,203 57,970 60,861 63,898 CONSOLIDATED MAINTENANCE WRK I MISC 25.28 26.54 27.87 29.26 30.72 52,582 55,203 57,970 60,861 63,898 OFFICE ASST. III MISC 25.28 26.54 27.87 29.26 30.72 52,582 55,203 57,970 60,861 63,898 OFFICE ASST. IV MISC 27.33 28.70 30.14 31.65 33.23 56,846 59,696 62,691 65,832 69,118 ACCOUNT CLERK II MISC 28.40 29.82 31.30 32.88 34.52 59,072 62,026 65,104 68,390 71,802 CONSOLIDATED MAINTENANCE WRK II MISC 28.40 29.82 31.30 32.88 34.52 59,072 62,026 65,104 68,390 71,802 RECREATION SPECIALIST MISC 28.40 29.82 31.30 32.88 34.52 59,072 62,026 65,104 68,390 71,802 ACCOUNT CLERK III MISC 30.41 31.94 33.54 35.21 36.97 63,253 66,435 69,763 73,237 76,898 CONSOLIDATED MAINTENANCE WRK III MISC 30.41 31.94 33.54 35.21 36.97 63,253 66,435 69,763 73,237 76,898 PERMIT TECHNICIAN MISC 30.95 32.49 34.13 35.84 37.63 64,376 67,579 70,990 74,547 78,270 ADMINISTRATIVE TECHNICIAN MISC 30.95 32.49 34.13 35.84 37.63 64,376 67,579 70,990 74,547 78,270 BUILDING PERMIT TECHNICIAN I MISC 30.95 32.49 34.13 35.84 37.63 64,376 67,579 70,990 74,547 78,270 SUPPORT SERVICES TECHNICIAN MISC 30.95 32.49 34.13 35.84 37.63 64,376 67,579 70,990 74,547 78,270 PROPERTY EVIDENCE CLERK MISC 30.95 32.49 34.13 35.84 37.63 64,376 67,579 70,990 74,547 78,270 COMMUNITY SERVICES OFFICER MISC 30.95 32.49 34.13 35.84 37.63 64,376 67,579 70,990 74,547 78,270 MECHANIC MISC 31.94 33.54 35.22 36.98 38.83 66,435 69,763 73,258 76,918 80,766 RECREATION COORDINATOR MISC 31.94 33.54 35.22 36.98 38.83 66,435 69,763 73,258 76,918 80,766 ENGINEERING TECHNICIAN III MISC 36.17 37.98 39.89 41.88 43.97 75,234 78,998 82,971 87,110 91,458 MAINTENANCE LEADWORKER MISC 36.17 37.98 39.89 41.88 43.97 75,234 78,998 82,971 87,110 91,458 BUILDING PERMIT TECHNICIAN II MISC 36.17 37.98 39.89 41.88 43.97 75,234 78,998 82,971 87,110 91,458 UTILITY OPERATOR MISC 36.24 38.05 39.95 41.94 44.05 75,379 79,144 83,096 87,235 91,624 UTILITY SUPPORT COORDINATOR MISC 36.24 38.05 39.95 41.94 44.05 75,379 79,144 83,096 87,235 91,624 ASSISTANT PLANNER MISC 37.68 40.17 41.53 43.62 45.80 78,374 83,554 86,382 90,730 95,264 BUILDING INSPECTOR MISC 37.86 39.75 41.73 43.83 46.02 78,749 82,680 86,798 91,166 95,722 BUILDING INSPECTOR/CODE ENF OFFICER MISC 37.86 39.75 41.73 43.83 46.02 78,749 82,680 86,798 91,166 95,722 RECREATION SUPERVISOR MISC 37.98 39.89 41.88 43.97 46.17 78,998 82,971 87,110 91,458 96,034 HARBOR PATROL OFFICER MISC 38.07 39.98 41.97 44.08 46.28 79,186 83,158 87,298 91,686 96,262 UTILITY OPERATOR MC (MULTIPLE CERT) MISC 38.77 40.72 42.75 44.89 47.13 80,642 84,698 88,920 93,371 98,030

HOURLY RATES ANNUAL SALARY EQUIVALENT

CITY OF MORRO BAY

COMBINED PAY SCHEDULE
FISCAL YEAR 2026-27: Effective 07/01/2026
TITLE GROUP STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6

HOURLY RATES ANNUAL SALARY EQUIVALENT
IT SYSTEMS ANALYST MISC 42.37 44.49 46.71 49.05 51.50 88,130 92,539 97,157 102,024 107,120 ENGINEERING TECHNICIAN IV MISC 42.37 44.49 46.71 49.05 51.50 88,130 92,539 97,157 102,024 107,120 ASSISTANT ENGINEER MISC 42.37 44.49 46.71 49.05 51.50 88,130 92,539 97,157 102,024 107,120 ASSOCIATE PLANNER MISC 42.37 44.49 46.71 49.05 51.50 88,130 92,539 97,157 102,024 107,120 BUILDING INSPECTOR/PLANS EXAMINER MISC 42.37 44.49 46.71 49.05 51.50 88,130 92,539 97,157 102,024 107,120 CONSOLIDATED MAINT FIELD SUPV MISC 42.37 44.49 46.71 49.05 51.50 88,130 92,539 97,157 102,024 107,120 PUBLIC WORKS INSPECTOR MISC 42.37 44.49 46.71 49.05 51.50 88,130 92,539 97,157 102,024 107,120 HARBOR BUSINESS COORD MISC 42.93 45.08 47.33 49.70 52.19 89,294 93,766 98,446 103,376 108,555 LEAD UTILITY OPERATOR MISC 43.19 45.35 47.61 49.99 52.49 89,835 94,328 99,029 103,979 109,179 OPERATIONAL TECHNOLOGY SPECIALIST MISC 45.34 47.61 49.98 52.48 55.10 94,307 99,029 103,958 109,158 114,608 HARBOR PATROL SUPERVISOR MISC 47.03 49.38 51.85 54.44 57.17 97,822 102,710 107,848 113,235 118,914 ASSOCIATE ENGINEER MISC 48.72 51.16 53.72 56.41 59.23 101,338 106,413 111,738 117,333 123,198 WASTEWATER SYSTEMS SUPV MISC 48.72 51.16 53.72 56.41 59.23 101,338 106,413 111,738 117,333 123,198 MORRO BAY PEACE OFFICERS' ASSOC. (Sworn) GROUP STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 POLICE OFFICER POA 45.26 47.52 49.89 52.39 55.01 57.76 94,141 98,842 103,771 108,971 114,421 120,141 POLICE DETECTIVE POA 47.52 49.89 52.39 55.01 57.76 60.65 98,842 103,771 108,971 114,421 120,141 126,152 POLICE SCHOOL RESOURCE OFFICER POA 47.52 49.89 52.39 55.01 57.76 60.65 98,842 103,771 108,971 114,421 120,141 126,152 POLICE SENIOR OFFICER POA 47.52 49.89 52.39 55.01 57.76 60.65 98,842 103,771 108,971 114,421 120,141 126,152 POLICE SERGEANT POA 58.02 60.92 63.96 67.17 70.51 74.05 120,682 126,714 133,037 139,714 146,661 154,024 MORRO BAY FIRE FIGHTERS ASSOC. (Sworn)GROUP STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 FIREFIGHTER FFA 29.02 30.49 32.00 33.60 35.29 84,506 88,787 93,184 97,843 102,764 FIREFIGHTER/PARAMEDIC FFA 31.92 33.53 35.20 36.96 38.81 92,951 97,639 102,502 107,628 113,015 FIRE ENGINEER FFA 31.73 33.33 34.99 36.73 38.57 92,398 97,057 101,891 106,958 112,316 FIRE ENGINEER/PARAMEDIC FFA 34.91 36.67 38.50 40.41 42.44 101,658 106,783 112,112 117,674 123,585 FIRE CAPTAIN FFA 36.50 38.29 40.22 42.22 44.34 106,288 111,500 117,121 122,945 129,118 FIRE CAPTAIN/PARAMEDIC FFA 40.13 42.14 44.24 46.45 48.79 116,859 122,712 128,827 135,262 142,076 FIRE MARSHAL FFA 43.31 45.47 47.74 50.13 52.64 126,119 132,409 139,019 145,979 153,288

CITY OF MORRO BAY

COMBINED PAY SCHEDULE
FISCAL YEAR 2026-27: Effective 07/01/2026
TITLE GROUP STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6

HOURLY RATES ANNUAL SALARY EQUIVALENT
UNREPRESENTED CONFIDENTIAL GROUP STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 HUMAN RESOURCES ANALYST I CONF 35.24 37.00 38.85 40.78 42.82 73,299 76,960 80,808 84,822 89,066 EXECUTIVE ASSISTANT/DEPUTY CLERK CONF 37.86 39.75 41.73 43.83 46.02 78,749 82,680 86,798 91,166 95,722 SENIOR ACCOUNTING TECHNICIAN CONF 39.34 41.31 43.39 45.56 47.84 81,827 85,925 90,251 94,765 99,507 FISCAL ANALYST CONF 42.37 44.49 46.71 49.05 51.50 88,130 92,539 97,157 102,024 107,120 HUMAN RESOURCES ANALYST II CONF 42.37 44.49 46.71 49.05 51.50 88,130 92,539 97,157 102,024 107,120 UNREPRESENTED MANAGEMENT GROUP STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 MANAGEMENT ANALYST MGMT 43.26 45.42 47.69 50.07 52.57 89,981 94,474 99,195 104,146 109,346 POLICE SUPPORT SERVICES MANAGER MGMT 43.26 45.42 47.69 50.07 52.57 89,981 94,474 99,195 104,146 109,346 MAINTENANCE DIVISION MANAGER MGMT 50.59 53.12 55.78 58.57 61.50 105,227 110,490 116,022 121,826 127,920 ADMINISTRATIVE PROGRAMS MANAGER MGMT 50.59 53.12 55.78 58.57 61.50 105,227 110,490 116,022 121,826 127,920 ASST. TO THE CITY MANAGER/PR MANAGER MGMT 50.59 53.12 55.78 58.57 61.50 105,227 110,490 116,022 121,826 127,920 SENIOR PLANNER MGMT 50.59 53.12 55.78 58.57 61.50 105,227 110,490 116,022 121,826 127,920 CHIEF BUILDING INSP/PLANS EXAMINER MGMT 54.04 56.74 59.57 62.55 65.69 112,403 118,019 123,906 130,104 136,635 CITY CLERK MGMT 54.04 56.74 59.57 62.55 65.69 112,403 118,019 123,906 130,104 136,635 INFORMATION TECHNOLOGY MANAGER MGMT 54.04 56.74 59.57 62.55 65.69 112,403 118,019 123,906 130,104 136,635 RECREATION SERVICES MANAGER MGMT 54.04 56.74 59.57 62.55 65.69 112,403 118,019 123,906 130,104 136,635 PLANNING MANAGER MGMT 59.44 62.42 65.54 68.81 72.25 123,635 129,834 136,323 143,125 150,280 HUMAN RESOURCES/RISK MANAGER MGMT 59.44 62.42 65.54 68.81 72.25 123,635 129,834 136,323 143,125 150,280 ACCOUNTING MANAGER MGMT 59.44 62.42 65.54 68.81 72.25 123,635 129,834 136,323 143,125 150,280 SENIOR CIVIL ENGINEER MGMT 59.44 62.42 65.54 68.81 72.25 123,635 129,834 136,323 143,125 150,280 CITY ENGINEER MGMT 65.58 68.86 72.30 75.93 79.73 136,406 143,229 150,384 157,934 165,838 UTILITY DIVISION MANAGER MGMT 65.58 68.86 72.30 75.93 79.73 136,406 143,229 150,384 157,934 165,838 DEPUTY CHIEF / FIRE MARSHAL MGMT 70.86 74.41 78.12 82.03 86.14 147,389 154,773 162,490 170,622 179,171 POLICE COMMANDER MGMT 78.66 82.58 86.71 91.05 95.62 163,613 171,766 180,357 189,384 198,890

CITY OF MORRO BAY

COMBINED PAY SCHEDULE
FISCAL YEAR 2026-27: Effective 07/01/2026
TITLE GROUP STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6

HOURLY RATES ANNUAL SALARY EQUIVALENT
DEPARTMENT HEADS/EXECUTIVE GROUP STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 COMMUNITY DEVELOPMENT DIRECTOR EXEC 83.38 87.55 91.94 96.54 101.37 173,430 182,104 191,235 200,803 210,850 PUBLIC WORKS DIRECTOR EXEC 83.38 87.55 91.94 96.54 101.37 173,430 182,104 191,235 200,803 210,850 FINANCE DIRECTOR EXEC 83.38 87.55 91.94 96.54 101.37 173,430 182,104 191,235 200,803 210,850 FIRE CHIEF (Sworn) EXEC 84.95 89.20 93.66 98.33 103.25 176,696 185,536 194,813 204,526 214,760 POLICE CHIEF (Sworn) EXEC 84.95 89.20 93.66 98.33 103.25 176,696 185,536 194,813 204,526 214,760 CITY MANAGER CM 112.39 115.22 118.08 121.03 124.07 233,771 239,658 245,606 251,742 258,066

RESOLUTION NO. 49-24

RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA,

APPROVING NEW JOB CLASSIFICATIONS AND

NEW AND AMENDED JOB DESCRIPTIONS
WHEREAS, the Council desires to approve new “Recreation Specialist” job classification, set compensation range for the classification, and adopt job description for the classification; and WHEREAS, the City and Service Employees International Union Local 620 (SEIU Local 620) met and conferred regarding the addition of the above-referenced classification to the City’s Miscellaneous Employees Unit and regarding compensation and job description for this classification; and
WHEREAS, the Council desires to approve new “Assistant to the City Manager/Public Relations Manager” job classification, set compensation range for the classification, and adopt job description for the unrepresented Management classification.

NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Morro Bay does hereby attest:

1. The represented full-time classification of “Recreation Specialist” is hereby created. The classification will be included within the City’s Miscellaneous Employees Unit, which is represented by the Service Employees International Union, Local 620 (SEIU Local 620). The job description for this new classification, attached hereto, is hereby adopted. The initial hourly compensation for the Recreation Specialist classification shall be as follows:

Step 1 Step 2 Step 3 Step 4 Step 5

25.76 27.05 28.39 29.82 31.31

2. The unrepresented full-time classification of “Assistant to the City Manager/Public Relations Manager” is hereby created. The classification will be included within the City’s Unrepresented Management Employee Group. The job description for this new classification, attached hereto, is hereby adopted. The initial annual compensation for the Assistant to the City Manager/Public Relations Manager classification shall be as follows:

Step 1 Step 2 Step 3 Step 4 Step 5
95,451 100,214 105,227 110,490 116,022

3. This resolution shall be effective as of the date of its adoption //
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PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 25th day of June 2024 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

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

RECREATION SPECIALIST - AQUATICS

DEFINITION
Under the supervision of the Recreation Supervisor, the Recreation Specialist is directly responsible for the City’s aquatics program located on the Morro Bay High School campus.

The position coordinates and oversees the daily operation of the aquatics program. Incumbents will plan, organize, and coordinate a full complement of aquatics and recreation programs, activities, and special events.

ESSENTIAL DUTIES AND RESPONSIBILITIES
• Plans, organizes, and coordinates the operations of the aquatics and recreation programs.
• Ensures aquatics programs follow local, state, and federal regulations and requirements; monitors changes in laws, regulations, or technology that may affect programs.
• Monitors and inspects recreation facilities for safety and security. • Schedules facility operations and maintenance with the SLCUSD District and coordinates preparation and use of facilities for programs. • Provides staff with all necessary safety equipment and training with a focus on risk management.
• Coordinates the recruitment, training, and work of part-time staff and volunteers, and is responsible for staffing schedules.
• Participates in the development, implementation, and maintenance of program goals and objectives.
• Coordinates and reviews all program paperwork, including injury report forms, timecards, and supply requests; maintains accurate records and files.
• Oversees program events and activities, including swim lessons, and ensures staff ratios.
• Prepares, updates, and maintains reports, correspondence, and staff manuals.
• Maintains accurate and current certification records for all lifeguard staff.

• Serves as emergency substitute of program(s) including the capacity of a lifeguard as needed including proper response to life-threatening emergencies and administration of first aid and emergency care. • Establishes and maintains effective relationships with user groups, staff, and administration.
• Instructs Red Cross courses, including Lifeguard Training, CPR, and Emergency Response.

QUALIFICATIONS:

Knowledge of:
• Principles and techniques of organizing and implementing a variety of aquatics and recreation programs and activities.
• Principles and practices of employee leadership, including work planning, assignment, and feedback.
• Safety precautions and procedures as required for aquatics and recreation programs.
• Modern office practices, methods, and computer equipment and applications related to work.
• Lifeguard safety policies, water hazards, lifesaving techniques, and first aid.
• Safe aquatic facility operations, including facility policies and procedures, and facility rules and regulations.
• Aquatic instruction, first aid, water safety, and rescue/lifeguarding techniques.
• Organization and administration of swimming lesson programs. • Record-keeping methods and procedures.

Ability to:
• Properly schedule and promote programs, activities, and staff. • Maintain accurate records and prepare related reports. • Coordinate and monitor the work of others.
• Effectively and tactfully communicate in both oral and written form. • Work with diverse populations and maintain an inclusive environment.

Education & Experience:
• Graduation from High School.

• Two (2) years of progressively responsible experience in aquatics programming including twelve (12) months of experience providing direction to staff.
• Must obtain an AB 1207 (Child Abuse Mandated Reporter) certificate within the first month of hire.
• American Red Cross Lifeguard Training Certificate or equivalent upon hire.
• American Red Cross First Aid for Public Safety Personnel (Title 22) or equivalent upon hire.
• America Red Cross Lifeguard Instructor Certificate, preferred, but must be obtained within 6-months of hire date.
• Nationally recognized swim instruction certification or license is desired.
• Possession of a valid California driver license and satisfactory driving record.

TOOLS & EQUIPMENT USED
Personal computer including word processing, spreadsheet, and presentation software; mainframe computer system; 10-key calculator; telephone; copy machine; fax machine; iPad; smartphone.

PHYSICAL DEMANDS
The physical demands described here are representative of those that must be met by an employee to successfully perform the essential functions of this job.

Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions.

While performing the duties of this job, the employee is frequently required to sit and talk or hear, use hands to finger, handle, or feel objects, tools, or controls; and reach with hands and arms. The employee is occasionally required to walk.

The employee must occasionally lift and/or move up to 25 pounds. Specific vision abilities required by this job include close vision and the ability to adjust focus.

WORK ENVIRONMENT
The work environment characteristics described here are representative of those an employee encounters while performing the essential functions of this job. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions.

The noise level in the work environment is usually moderate.

SELECTION GUIDELINES
Formal application, rating of education and experience, oral interview, and reference check; job related tests may be required.

The duties listed above are intended only as illustrations of the various types of work that may be performed. The omission of specific statements of duties does not exclude them from the position if the work is similar, related or a logical assignment to the position.

The job description does not constitute an employment agreement between the employer and employee and is subject to change by the employer as the needs of the employer and requirements of the job change.

RECREATION SPECIALIST – YOUTH SERVICES

DEFINITION
Under the supervision of the Recreation Supervisor, the Recreation Specialist is directly responsible for the City’s before and after-school childcare program located on the Del Mar Elementary school campus.

The position coordinates and oversees the daily operation of the before and after-school childcare program, out-of-school camps, and Summer camp.

Incumbents will plan, organize, and coordinate youth services and recreation programs, activities, and special events.

ESSENTIAL DUTIES AND RESPONSIBILITIES
• Plans, organizes, and coordinates age and developmentally appropriate program content.
• Ability to manage up to 50 children using part-time staff and positive guidance techniques.
• Works collaboratively with school administrators, staff, and outside agencies.
• Maintains all center-related paperwork, billing, and payments. • Implements appropriate guidance techniques and philosophies for staff and participants.
• Coordinates the recruitment, training, and work of part-time staff and volunteers, and is responsible for staffing schedules.
• Participates in the development, implementation, and maintenance of program goals and objectives.
• Monitors and inspects program site for safety and security; coordinates facility needs with school district personnel.
• Performs related duties similar to the above in scope and function as required.

QUALIFICATIONS:

Knowledge of:
• Early Childhood Education principles.

• Leadership, organization, and planning methods
• Principles and techniques of organizing and implementing a variety of youth services and recreational activities.
• Principles and practices of employee leadership, including work planning, assignment, and feedback.
• Safety precautions and procedures required for youth services programs.
• Child development, positive guidance, and curriculum development. • Modern office practices, methods, and computer equipment and applications related to work.

Ability to:
• Coordinate all activities occurring in the childcare program during program hours including staff, children, family, and school partner interactions.
• Facilitate staff training.
• Coordinate staff schedules and shift changes on an ongoing basis and monitor the work of part-time staff.
• Engage large groups of children in enriching activities while ensuring safety for all participants.
• Maintain accurate records and prepare related reports. • Effectively and tactfully communicate in both oral and written form. • Work with diverse populations and maintain an inclusive environment.

Education & Experience:
• Graduation from High School.
• Twelve (12) semester units in the specific area of Early Childhood Education (Child Growth and Development, Child, Family, and Community, Child Health, Safety, and Nutrition, and Activities for Children), and three (3) units of in Childcare Administration. • Two (2) years of progressively responsible experience in a licensed childcare program including twelve (12) months of experience providing direction to staff in a childcare program.
• Must obtain an AB 1207 (Child Abuse Mandated Reporter) certificate within the first month of hire.
• Certification in American Red Cross 1st Aid/CPR (can be completed within six (6) months of employment).

• Possession of a valid California driver license and satisfactory driving record.

TOOLS & EQUIPMENT USED
Personal computer including word processing, spreadsheet, and presentation software; mainframe computer system; 10-key calculator; telephone; copy machine; fax machine; iPad; smartphone.

PHYSICAL DEMANDS
The physical demands described here are representative of those that must be met by an employee to successfully perform the essential functions of this job.

Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions.

While performing the duties of this job, the employee is frequently required to sit and talk or hear, use hands to finger, handle, or feel objects, tools, or controls; and reach with hands and arms. The employee is occasionally required to walk.

The employee must occasionally lift and/or move up to 25 pounds. Specific vision abilities required by this job include close vision and the ability to adjust focus.

WORK ENVIRONMENT
The work environment characteristics described here are representative of those an employee encounters while performing the essential functions of this job. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions.

The noise level in the work environment is usually moderate.

SELECTION GUIDELINES
Formal application, rating of education and experience, oral interview, and reference check; job related tests may be required.

The duties listed above are intended only as illustrations of the various types of work that may be performed. The omission of specific statements of duties

does not exclude them from the position if the work is similar, related or a logical assignment to the position.

The job description does not constitute an employment agreement between the employer and employee and is subject to change by the employer as the needs of the employer and requirements of the job change.

ASSISTANT TO THE CITY MANAGER/

PUBLIC RELATIONS MANAGER

DEFINITION
Reporting to the City Manager, the Assistant to the City Manager at Morro Bay engages in diverse responsibilities within the City Manager’s office. This role initially will focus on enhancing community public outreach and communication efforts. It involves strategic analysis, research, effective communication, project oversight, and emphasizing collaboration within departments and within the community. The ideal candidate demonstrates excellent teamwork qualities alongside exceptional interpersonal and communication skills, has a strong background in social media and analytics, and can strategically and thoughtfully navigate crisis communications. This is an exempt full-time position and within the unrepresented management classification. The position is expected to attend evening meetings and occasionally work on weekends and holidays when necessary.

ESSENTIAL DUTIES AND RESPONSIBILITIES
• Under limited supervision, this position provides various strategic support to the City Manager.
• Communication: Drafts written correspondence for the City Manager and City Council, coordinating the dissemination of public information through various channels, including the City’s website and social media accounts, press releases, media outlets, and newsletters. Acts as the City’s Public Information Officer when assigned. In an emergency, this position is expected to help disseminate and coordinate vital information to ensure public safety.
• Community Engagement and outreach: Guided by established City priorities, plans, organizes, and implements public outreach initiatives, effectively utilizing social media and web-based tools to enhance citywide communication and engagement. This position focuses on increasing public awareness of City programs, explaining City processes and how tax dollars are spent.
• Issue Resolution: Responds to public inquiries and resolves complaints as assigned and on behalf of the City Manager and City Council, fostering positive community relations.

• Legislative Monitoring: This position supports the City Manager in tracking state and federal legislation pertinent to Morro Bay's interests. • External Representation: Effectively represents the City Manager in meetings with neighboring cities, community agencies, and governmental bodies to build partnerships with businesses, organizations, and regional stakeholders. Provides quality reports to the City Manager, the Executive Team, or the boards/committees. • Manages sensitive or confidential issues, answers questions where judgment and knowledge of City policies and regulations are necessary, and acts to support Council collective goals and objectives. • Strategic Planning: Manages the citywide goal-setting process and assists in the management. Develops and reviews City’s communication plan, manages interdepartmental coordination as needed, independently leads complex research, and develops recommendations related to a variety of operational issues with citywide impacts. • Project Management: Carries out special projects of the City Manager, spearheads complex project studies when assigned, conducts comprehensive analysis, and prepares reports for the City Manager.

Effectively manages a wide range of assigned projects from start to finish with minimal supervision while ensuring appropriate check-ins to report on progress.
• Serves as a liaison for the Executive Team by providing management direction, expediting workflow City wide, and facilitating the achievement of departmental programs when assigned.
• Policy Development: Contributes to formulating, recommending, and administrating policies and procedures aligned with organizational goals.
• Performs other duties as assigned.

QUALIFICATIONS:

Knowledge of:
• Public Administration: An understanding of public administration principles, practices, and procedures. This includes knowledge of organizational structures, budgeting processes, and public policy formulation and implementation.
• Government Operations: Familiarity with local government agencies' basic organization and functions, including knowledge of municipal

services, regulatory frameworks, and the roles and responsibilities of different departments within the city government.
• Legislative Processes: A solid grasp of local, state, and federal legislative processes. This includes understanding how laws are enacted, amended, and enforced and the role of elected officials, legislative bodies, and administrative agencies in the policymaking process.
• Policy Analysis: Proficiency in conducting legislative policy analysis. This involves researching, evaluating, and recommending policy options to address emerging issues, achieving organizational goals, and aligning with community needs and priorities.
• Community Engagement: This includes knowledge of strategies for outreach, public participation, and stakeholder engagement to foster transparency, trust, and collaboration between the city government and its residents.
• Legal and Regulatory Compliance: Awareness of relevant laws, ordinances, regulations, and legal requirements affecting municipal operations. This includes knowledge of municipal codes, land use regulations, environmental laws, ethics rules, and public records laws. • Communication Skills: Strong written and verbal communication skills are essential for effective communication with diverse stakeholders, including elected officials, City staff, community members, and external partners. This includes preparing clear and concise reports, presentations, and correspondence.
• Technology and Data Management: Proficiency in using technology tools and systems for data analysis, project management, communication, and information dissemination is important. This includes familiarity with software applications, databases, social media platforms, and digital communication tools.
• Leadership and Management: Knowledge of leadership principles, management techniques, and organizational development is beneficial.

This includes understanding how to motivate teams, foster collaboration, delegate tasks, manage conflicts, and promote a positive work culture within the City Manager's office and across departments.

Ability to:
• Analytical Skills: Proficient in problem analysis and solution proposal, with the ability to negotiate and collaborate effectively.

• Communication: Strong written and oral communication skills, including the ability to craft complex reports and engage effectively through social media platforms.
• Leadership: Demonstrates effective leadership, management, and strategic planning abilities.
• Interpersonal Skills: Capable of establishing and maintaining productive working relationships, both internally and externally.
• Adaptability: Exhibits initiative, independent judgment, and the capacity to prioritize tasks, meet deadlines, and streamline processes. • Establish and maintain effective relationships with the City officials, employees, other governmental and community organizations, and the public.
• Demonstrate a high level of proficiency in various software applications, including spreadsheets, databases, and presentation software.

Education & Experience:
• Bachelor’s degree in Public Administration, Public Policy, Business Administration, or related fields with major course work in Public Relations, Communications, or Journalism, coupled with four years of progressively responsible community-based experience; OR • Master’s degree with two years of relevant experience. Prior experience in city government is advantageous.
• Applicants with any equivalent combination of education and experience will be considered.
• Possession of, or ability to obtain, a valid California Driver's License by time of appointment.

TOOLS & EQUIPMENT USED
Personal computer including word processing, spreadsheet, and presentation software; mainframe computer system; 10-key calculator; telephone; copy machine; fax machine; iPad; smartphone.

PHYSICAL DEMANDS
Must possess mobility to work in a standard office setting and use standard office equipment, including a computer; to operate a motor vehicle; and to visit various City and meeting sites; vision to read printed materials and a computer screen; and hearing and speech to communicate in person, before groups, and

over the telephone. This is primarily a sedentary office classification although standing in and walking between work areas may be required. Finger dexterity is needed to access, enter, and retrieve data using a computer keyboard or calculator and to operate standard office equipment. Positions in this classification occasionally bend, stoop, kneel, reach, push, and pull drawers open and closed to retrieve and file information. Employees must be able to lift, carry, push, and pull materials and objects necessary to perform job functions. focus.

WORK ENVIRONMENT
Employees work in an office environment with moderate noise levels, controlled temperature conditions, and no direct exposure to hazardous physical substances. Employees may interact with upset staff and/or public and private representatives in interpreting and enforcing departmental policies and procedures. This position is expected to attend evening meetings and occasionally work on weekends and holidays when necessary.

SELECTION GUIDELINES
Formal application, rating of education and experience, oral interview, and reference check; job related tests may be required.

The duties listed above are intended only as illustrations of the various types of work that may be performed. The omission of specific statements of duties does not exclude them from the position if the work is similar, related or a logical assignment to the position.

The job description does not constitute an employment agreement between the employer and employee and is subject to change by the employer as the needs of the employer and requirements of the job change.

RESOLUTION NO. 50-24

A RESOLUTION OF THE CITY COUNCIL OF

THE CITY OF MORRO BAY, CALIFORNIA
RESCINDING RESOLUTION NO. 41-23, DESIGNATING AND AUTHORIZING

INVESTMENT TRANSACTION OFFICERS AND ESTABLISHING

INTERNAL CONTROL POLICY FOR INVESTMENT TRANSACTIONS

THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, the City of Morro Bay has cash in its possession that exceeds the amount needed for day-to-day transactions; and
WHEREAS, the City of Morro Bay has an obligation to its citizens to effectively and safely manage that money while optimizing its earning potential; and
WHEREAS, it is necessary to designate, via Resolution, the transaction officers who have the authority to invest the City’s funds; and
WHEREAS, on June 13, 2023, the Morro Bay City Council adopted Resolution No. 41-23, which established the transaction officers with the authority to invest the City’s funds; and WHEREAS, with this Resolution, the Morro Bay City Council is rescinding Resolution No. 41-23 in its entirety; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California:

1. Resolution No. 41-23, relating to designating and authorizing investment transaction officers is rescinded in its entirety and replaced with this Resolution.

2. The “Investment Policy” as set forth in Exhibit A, attached hereto and incorporated herein, is hereby approved and hereby established as City policy.

3. The individuals holding the City offices/positions listed below are designated as transaction officers who are authorized to open and close investment accounts within the scope of the City’s Investment Policy:

City Manager
Finance Director/Treasurer
Accounting Manager
Fiscal Analyst

4. For purposes of internal controls, the City will require written approval of one of the above designated authorized representatives, prior to another one of the designated authorized representatives initiating a deposit, withdrawing funds or making any other change in the account.
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5. Provision for socially responsible investing have been incorporated as previously adopted by the City Council.

PASSED AND ADOPTED, by the City Council of the City of Morro Bay, at a regular meeting thereof held on the 25th day of June 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSED:
______________________________________
CARLA WIXOM, Mayor
ATTEST:
____________________________
DANA SWANSON, City Clerk

EXHIBIT ''A''

CITY OF MORRO BAY

INVESTMENT POLICY

PURPOSE
This investment policy establishes the practices and procedures to be used in managing the City of Morro Bay's (City) portfolio in accordance with the requirements of the State of California Government Code and the guidelines provided by the California Debt and Investment Advisory Commission (CDIAC) and the Government Finance Officers Association (GFOA).

SCOPE OF THE POLICY
This policy governs the investment of money that is not required to meet the immediate needs of the City.

LEGAL AUTHORITY
Government Code Sections: California Government Code Sections 53600 to 53609, 53635, and 16429.1 govern the investment of local agency funds.

Legislative Changes: Any applicable legislative actions will be acted on as of their effective dates and will be incorporated into the policy annually, specifying the California Government Code sections that have been added, deleted, or amended.

OBJECTIVES
The City Treasurer will consider the following factors in priority order when assessing investment opportunities:

Safety: The primary objective is the preservation of principal. Capital losses will be avoided, whether from default or erosion of market value, meaning that the City will not sell or trade an investment because of market fluctuation. The two types of risk to be minimized are:

1. Credit risk - the risk that an issuer or other counterparty to an investment will not fulfill its obligations; and

2. Interest rate or market risk - the risk that changes in interest rates will adversely affect the fair value of an investment.

Liquidity: The second objective is the liquidity of the portfolio. The portfolio should remain sufficiently flexible to enable the City to meet the operating requirements that are reasonably anticipated. To ensure liquidity, the investment policy must recognize that calculating cash flows are the basis of any good investment strategy. Meeting the daily cash flow demand goes hand-in-hand with meeting the City's liquidity needs.

Yield: The third objective, behind safety and liquidity, is attaining a market rate of return throughout the budgetary and economic cycles.

While managing the portfolio, the Treasurer, and designated staff, will strive to maintain public trust by avoiding any transactions that might impair public confidence in the City. When selecting investment instruments, the Treasurer, and designated staff, will remain cognizant of any social and policy considerations that have been established and defined in this policy.

GENERAL STRATEGY
The Treasurer, and designated staff, may follow a passive or active investment strategy. Passive investment policies adhere to the investment goal of holding investments to maturity. Active investment strategy is the buying and selling of investments to achieve a certain benchmark objective. Great care, coupled with the advice of a fiscal agent, should be followed with an active investment policy.

The City follows the passive investment strategy of holding investments to maturity.

STANDARD OF CARE
Prudent Investor Standard: The prudence standard for trust investing traces back to Harvard College v. Amory, 26 Mass. (9 Pick.) 446 (1830). Judge Samuel Putnam stated that trustees should ''observe how men of prudence, discretion and intelligence manage their own affairs, not in regard to speculation, but in regard to the permanent disposition of their funds, considering the probable income, as well as the probable safety, of the capital to be invested."
This standard will be followed by the Treasurer, and designated staff.

Ethics and Conflict of Interest: The Treasurer, and designated staff, shall refrain from personal business activities that could conflict with the proper execution of the investment program or which could impair their ability to make impartial decisions.

Delegation of Authority: The following positions and corresponding City personnel are delegated the power to invest the funds of the City:

City Manager
Finance Director/Treasurer
Accounting Manager
Fiscal Analyst
These designations may change with the annual affirmation of this policy. Each delegate must adhere to the requirements set forth in the investment policy.

SAFEKEEPING AND CUSTODY
Third-party Safekeeping: Ownership of the City's investment securities will be protected through third-party custodial safekeeping. The custodian will provide the City with a safekeeping receipt or monthly, itemized statement. Exceptions to this requirement are made for certificates of deposit, money market funds and investment pools.

Internal Controls: These are designed to ensure that the assets of the City are protected from theft, loss, or misuse. Such internal controls that are in place include:

1. Control of collusion;

2. Separation of duties;

3. Safekeeping of securities; and

4. Written confirmation of telephone transactions and wire transfers.

The City will separate the person who authorizes or performs the transaction from the person or people who ultimately record or otherwise account for the transaction to achieve separation of duties. Moreover, the City will require written approval of one of the above designated authorized representatives who is not also recording the transaction, prior to another one of the designated authorized representatives initiating a deposit, withdrawing funds, or making any other change in the account. •

Delivery vs. Payment: All investment transactions should be conducted using standard delivery vs. payment procedures. In delivery vs. payment, the purchaser pays for the securities when they are delivered either to the purchaser or his/her custodian and ensures that securities are deposited in an eligible financial institution prior to the release of funds.

AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
The City will only conduct business with approved banks, savings and loans, credit unions, and securities brokers/dealers. A list of financial dealers and institutions is to be maintained. Broker/dealers and institutions must meet all requirements established by federal and state law.

SUITABLE AND AUTHORIZED INVESTMENTS
Authorized Investment Types: The City, by virtue of California Government Code Sections 53600 - 09, has the ability to invest in numerous types of instruments. The City has looked at its goals, objectives, and standards of care in establishing a list of authorized investment types that also meet statutory requirements.

Those types of investment instruments that meet the criteria for the City are:

1. Securities of the U. S. Government, or its agencies;

2. California's Local Agency Investment Fund (LAIF) pool;

3. FDIC Insured Certificates of Deposit up to $250,000;

4. Bankers' Acceptances (not exceeding 40% of the City's portfolio/max maturity 180 days);

5. Money Market funds;

6. Collateralized deposits;

7. Passbook savings accounts; and

8. Repurchase agreements and reverse repurchase agreements (no more than 25% of the City's portfolio).

Prohibited Investment Types: In addition to a listing of authorized investments, California Government Code Section 53601.6 prohibits local agencies from investing in the following instruments:

1. inverse floaters;

2. range notes or mortgage-derived, interest-only strips;

3. any security that could result in zero interest accrual if held to maturity;

4. stock; and

5. futures or options.

There may be additional investment instruments in which the City does not want the Treasurer to invest, and those will be defined in future investment policies.

INVESTMENT PARAMETERS
Diversification of Investments: The City may choose to impose more stringent restrictions or further restrictions on other investment instruments, depending on its investment goals and risk tolerances, than those proposed in the California Government Code Sections 53600 - 09. The City has indicated those authorized investments as follows:

1. money market funds;

2. collateralized deposits;

3. securities of any one issuer, not to exceed 5% of the City's portfolio, except those obligations of the U.S. government, U.S. governmental agencies, and U.S. government-sponsored enterprises;

4. mutual funds; and

5. FDIC insured certificates of deposits.