Morro Bay City Council
September 10, 2024

CITY OF MORRO BAY
City Council Regular Meeting Agenda

Tuesday, September 10, 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 - Verbal Update of Current Subcommittee Activities

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
None

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:
•
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.
•
All remarks should be addressed to Council, as a whole, and not to any individual member thereof.
•
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.
•
Your participation in City Council meetings is welcome and your courtesy will be appreciated.
•
The Council in turn agrees to abide by its best practices of civility and civil discourse according to Resolution No. 07-19.
•

7. CONSENT AGENDA

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

Recommended Action
Approve consent agenda items 7.a through 7.d

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

1. August 27, 2024 - Regular Council Meeting 6

7.b Approval of Proclamations

1. Proclamation recognizing September 15-October 15, 2024 as "National Hispanic Heritage Month"
15 Recommended Action
Approve as submitted.

7.c Designation of Voting Delegate and Alternate at League of California Cities 2024 Annual Conference Business Meeting
16 (City Clerk)
Recommended Action
Select City Manager Kimball, as the voting delegate for the upcoming annual business meeting to be held at the League of California Cities Annual Conference; and

1. Authorize the City Clerk to complete the League of California Cities’ online submission form attesting that council action was taken and affirming the selection of the voting delegate.

2. 7.d National Opioid Settlement Agreements with Kroger Co. 41 (City Attorney)
Recommended Action
Approve Settlement Agreements and Participation Forms for the City’s participation in the National Opioid Settlement Agreements with Kroger Co.

1. Approve the California State-Subdivision Agreements
Regarding Distribution and Use of Settlement Funds relating to the National Opioid Settlement Agreements with Kroger Co.

2. Adopt Resolution No. 60-24 approving and authorizing the City Manager to carry out all necessary acts such that the City can participate in the National Opioid Settlements with Kroger Co., including signing necessary documents and transmittal thereof

3.

as necessary.

Approve disbursement of initial partial settlement funds to County (default option) while reserving option for direct distribution of further settlement funds to City later in time.

4. 8. PUBLIC HEARING ITEMS
None

9. BUSINESS ITEMS

9.a Advisory Board Interviews and Appointments 50
(City Clerk)
Recommended Action
Conduct interviews and make appointments to fill unscheduled vacancies on the Citizens Oversight/Finance Advisory and the City’s representative on SLOCOG Citizens Transportation Advisory Committee.

9.b Consolidation of Morro Bay Transit Administration, Operations, and Maintenance into the San Luis Obispo Regional Transit Authority 70 (Public Works Department)
Recommended Action
Authorize consolidation of Morro Bay Transit (MBT)
administration, operations, and maintenance into the San Luis Obispo Regional Transit Authority (RTA) and direct staff to return to Council with an agreement for provision of MBT services by the RTA for authorization to execute, such
agreement pending and conditional upon any required meet and confer or applicable union negotiations; and

1. Direct staff to prepare an amendment with MV Transportation (a third-party vendor providing driver and dispatch services) to extend the current agreement to align with RTA consolidation and return to Council for authorization to execute.

2. 9.c Approval of Updated Harbor Vitality Director Classification and Job Description Revised Pay Schedules, and Amendment to Compensation and Benefits Resolution for City Department Heads to Reflect Updates 77 (City Manager/Human Resources/Risk Manager)
Recommended Action
Adopt Resolution No. 61-24 updating the Harbor Director Job Description to Harbor Vitality Director; and

1. Adopt Resolution No. 62-24 revising Fiscal Years 24-25, 25-26, and 26-27 pay schedules, decreasing the salary for the Harbor Vitality Director to align with other Morro Bay non-sworn

2.

director positions; and
Adopt Resolution No. 63-24 amending the previously adopted maximum compensation and benefits for certain City
department head positions.

3. 10. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS

11. ADJOURNMENT
The next Regular Meeting will be held on September 24, 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

REGULAR MEETING
August 27, 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
Public Works Director Greg Kwolek
Community Development Director Airlin Singewald
Police Chief Amy Watkins
Fire Chief Dan McCrain
_____________________________________________________________________

1. ESTABLISH QUORUM AND CALL TO ORDER
Mayor Wixom established a quorum and called the meeting to order at 5:31 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 closed session meeting was held.

4.b Mayor and Councilmembers' Reports, Announcements and Presentations
https://youtu.be/nvV_3lwBOe8?si=7yiemQ0k7BqAq7eS&t=158

4.c City Manager Reports, Announcements and Presentations https://youtu.be/nvV_3lwBOe8?si=ac4GILNVAIyQXeFN&t=957

4.d Subcommittee Reports - Verbal Update of Current Subcommittee Activities

2 https://youtu.be/nvV_3lwBOe8?si=iqgH_nAeJr0JsVwR&t=1066 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

6. PUBLIC COMMENT
https://youtu.be/nvV_3lwBOe8?si=zibRyeKAK02dRA0j&t=1241  Cherise Hansson, Chair of the Morro Bay Chamber of Commerce Board of Directors, introduced Dina Lundquist, the Chamber's newly appointed Chief Executive Officer.
 Dina Lundquist, Morro Bay Chamber of Commerce CEO, introduced herself to the community.
 Garry Johnson, Morro Bay, shared information gleaned from his research on various types of lithium batteries.
 Linda Winters, Morro Bay, was re-inspired to raise the American flag demonstrating her national pride.
 Rachel Wilson, Cayucos, commented on the proposed BESS Project and issues raised in the August 2nd Coastal Commission letter.  An unnamed resident offered comments.
 Margaret Carman, Morro Bay, requested the Council respond to Senator Laird's offer to hold informational meetings regarding the costs and potential rate impacts of extending Diablo Canyon power plant operations and suggested the Community Center be offered as a venue.  Tina Metzger, Morro Bay, requested the Council direct a pause in accepting new BESS project applications until siting and development standards have been approved.

End of public comment.

7. CONSENT AGENDA
https://youtu.be/nvV_3lwBOe8?si=6--lFiPhVT_yGeCo&t=2500 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.

3 Mayor Wixom opened public comment for items on the Consent Agenda.  Steve Paige, Morro Bay, commented on Item 7c, requesting the draft EIR for the BESS project be amended to address additional concerns.  Betty Winholtz, Morro Bay, commented on Item 7c, questioning the timeline for deliverables and suggesting the large number of comments resulted from an inadequate draft EIR. Regarding Items 7f and 7g, she questioned the budget and opined it was odd to have a middle man overseeing the pavement project.

End of public comment.

Council Member Landrum pulled Items 7c and 7g.

Motion by Council Member Landrum
Seconded by Council Member Edwards
Approve Items 7.a, 7.b, 7.d, 7.e, 7.f, 7.h & 7.i 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. July 23, 2024 - Regular Council Meeting
b. August 13, 2024 - Special Closed Session Meeting
c. August 13, 2024 - Regular Council Meeting

7.b Acceptance of California Office of Traffic Safety (OTS) Grant

1. Authorize the Fire Department to accept the grant award from the California Office of Traffic Safety Grant program for hydraulic extrication equipment; and

2. Authorize the City Manager to approve execution of grant related documents, subject to City Attorney review and approval as to form; and

3. Adopt Resolution No. 54-24 to amend the Fiscal Year (FY) 2024-25 Operating & Capital Budget.

7.c Approval of Amendment No. 6 to Environmental Impact Report (EIR) Contract with Rincon Consultants for the Vistra Battery Energy Storage System (BESS) Project at 1290 Embarcadero
https://youtu.be/nvV_3lwBOe8?si=9-_iHAWDvLHDffA6&t=2992

4 Community Development Director Singewald responded to Council questions and issues raised during public comment.

Motion by Mayor Wixom
Seconded by Council Member Edwards
Approve Amendment No. 6 to the EIR contract for the Vistra Battery Energy Storage System (BESS) project EIR at 1290 Embarcadero. The City Attorneys' Office has reviewed Amendment No. 6 (Attachment 2) as to form, such Amendment subject to final approval as to form by the City Attorney.

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

7.d Award of Contract to AAAA Engineering Contracting, Inc., for the Sequoia Court Storm Drain Repair Project
Award a contract to AAAA Engineering Contracting, Inc., for the Sequoia Court Storm Drain Repair Project for a total of $433,840, which includes a 10% contingency budget executable by the City Manager. The contract (Attachment 1) has been reviewed and approved as to form by the City Attorneys' Office.

7.e Award of Contract to Hartzell General Engineering Contractor, Inc., for Lift Station 1 Force Main Replacement Project and Approval of Resolution No. 55-24 Amending the Fiscal Year (FY) 2024-25 Operating & Capital Budget

1. Award a contract to Hartzell General Engineering Contractor, Inc., (Hartzell) for the Lift Station 1 Force Main Replacement Project for a total of $414,568, which includes a 10% contingency budget executable by the City Manager. The contract (Attachment 1) has been reviewed and approved as to form by the City Attorneys' Office; and

2. Adopt Resolution No. 55-24 amending the FY 2024-25 Operating & Capital Budget to add $69,568 to the List Station 1 Force Main Replacement Project budget.

7.f Approval of SB-1 Funding Project List for FY 24/25 Pavement Management Plan Project
Adopt Resolution No. 56-24 approving the Fiscal Year 2024/25 project list for use of Senate Bill 1 (Road Repair and Accountability Act of 2017) Road Maintenance and Rehabilitation Account (RMRA) funds.

5 7.g Approval of Contract with Filippin Engineering for Performing Construction Management and Inspection Services for the 2024 Pavement Rehabilitation Project
https://youtu.be/nvV_3lwBOe8?si=hq64m0x8cBww6H0I&t=3810 Public Works Director Kwolek responded to Council questions and issues raised during public comment.

Motion by Mayor Wixom
Seconded by Council Member Barton
Approve and execute contract in the amount of $334,936.80, which includes a 10% contingency executable by the City Manager, with Filippin Engineering (FE), to perform Construction Management and Inspection Services for the 2024 Pavement Management project (Attachment 1). The City Attorneys’ Office has reviewed and approved the contract with FE (Attachment 1) as to form.

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

7.h Adoption of Resolution No. 57-24 Approving Amendment # 1 to the Master Lease Agreement with WBAM LLC, Lease Site 30W-33W, Bayfront Marina located at 201 Main Street
Adopt Resolution No. 57-24, approving Amendment 1 to the Master Lease Agreement.

7.i Central Coast Community Energy Proposed Amendment to Joint Powers Agreement
Receive and file.

8. PUBLIC HEARING ITEMS

9. BUSINESS ITEMS

9.a Award of Contract to Souza Construction for the 2024 Pavement Rehabilitation Project
https://youtu.be/nvV_3lwBOe8?si=OOlyRevNYvp-Jj2c&t=5028 Public Works Director Kwolek presented the report and turned to Joe Ririe, Pavement Engineering Inc., to present pavement management principles, assessment findings, and recommendations.

Mayor Wixom opened public comment for Item 9.a.
https://youtu.be/nvV_3lwBOe8?si=5ZeEYB8m9ac3aRSx&t=8258

6  Betty Winholtz, Morro Bay, requested a list of streets to be paved.  Jeff Eckles, Morro Bay, appreciated the presentation and suggested it be included in the agenda packet for public review.  Michelle Leicester-Cadaret, Morro Bay, asked how continuous failure and slippage could be prevented on streets along Panorama.
 Nattalia Merzoyan, Morro Bay, agreed with the previous speaker, noting similar damage occurs on the golf course road.

End of public comment.

Public Works Director Kwolek committed to publishing the list of streets to be paved on the City website.

Motion by Council Member Landrum
Seconded by Council Member Ford
Award a contract to Souza Construction (Souza), for the 2024 Pavement Rehabilitation Project for a total of $4,383,595.98, which includes a 10% contingency budget executable by the City Manager. The City Attorneys’ Office has reviewed the contract with Souza (Attachment 1) as to form, such contract subject to final approval as to form by the City Attorney prior to full execution.

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

9.b Authorization to Submit a Grant Application for California Coastal Commission (CCC) Local Coastal Program (LCP) Local Assistant Grant Program Funding and Increase Grant Budget for the Waterfront Master Plan Update
The Council took a brief recess at 7:58 p.m. and reconvened at 8:07 p.m. with all members present.
https://youtu.be/nvV_3lwBOe8?si=IHw-erX7IR_LqbfB&t=9462 Community Development Director Singewald presented the report and responded to Council inquiries.

Mayor Wixom opened public comment for Item 9.b.
https://youtu.be/nvV_3lwBOe8?si=pGOy0zBFRoHbmc8s&t=9925  Betty Winholtz, Morro Bay, stated developing street ends along Embarcadero did not necessarily reflect public comment and hoped the development and correctness of which street ends should be

7 developed, or retained for parking, be evaluated. Regarding development at the Rock, she hoped there would be a project vs. no project option.

End of public comment.

Motion by Council Member Barton
Seconded by Council Member Landrum
Adopt Resolution No. 58-24 authorizing staff to submit a grant application for California Coastal Commission (CCC) LCP Local Assistance Grant Program to fund the update of the City’s 1996 Waterfront Master Plan in the amount of $750,000. This is a $250,000 increase to the amount authorized by the City Council for the same grant application on September 26, 2023.

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

9.c Amend Council Policies & Procedures Section 5.5, for Elected Officials Not Running for Office, to Conduct Town Halls Under Section 5.5 During Election Season; and 2) Authorize Section 5.5 for Potential for Potential Upcoming Town Hall Meetings
https://youtu.be/nvV_3lwBOe8?si=0ySmFhJtIUCgAESv&t=10760 City Attorney Neumeyer presented the report and responded to Council inquiries.

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

Following Council discussion, there was consensus to move forward with Option A.

Motion by Council Member Ford
Seconded by Mayor Wixom
To adopt Resolution No. 59-24 with language in Option A to affirm that Council by agendized action by consider specific exceptions to the restrictions in Section 5.5 during election season for Council Members not running that election season for re-election.

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

8 Motion by Council Member Ford
Seconded by Council Member Landrum
To approve Mayor Pro Tem Landrum's request to hold potential upcoming town hall meetings for possible topics including homelessness, the downtown, harbor issues, waterfront sustainability, and what local government can do, and what is in our water, air and food. Any of those topics are acceptable.

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

9.d Update on Fiscal Year (FY) 2023-24 and 2024-25 City Council Goals and Action Items
https://youtu.be/nvV_3lwBOe8?si=2a1ND2K2pIAm9UrQ&t=12698 City Manager Kimball presented the report and, along with Mr. Neumeyer and Staff, responded to Council inquiries.

Council Member Ford requested discussions regarding 781 Market Avenue come back to closed session. Mayor Wixom suggested a holistic look at City-owned property including Teen Center or other major properties.

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

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

10. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS
https://youtu.be/nvV_3lwBOe8?si=Z7k4CmnzxDwEgfef&t=14813 Council Member Ford encouraged Council Members to write letters to our federal representatives to urge improvement upon the FEMA reimbursement process.

Council Member Landrum requested a list of report of pending future agenda items. Staff committed to sharing that working document with the Council.

Council Member Landrum commented on the request to ask Senator Laird & Assembly Member Addis how quickly and where the meeting regarding Diablo Canyon power plant extension would be held and offer City facilities as a potential venue. Mayor Wixom agreed to submit a letter on the City's behalf.

Council Member Landrum requested support for a pause on processing new BESS project applications until the City establishes and approves siting and development standards. There was majority Council support for a review and discussion of alternatives, the Council did not authorize the work effort to prepare a moratorium.

9 11. ADJOURNMENT
The meeting adjourned at 9:50 p.m.
/s/ Dana Swanson, City Clerk

AGENDA NO: 7.b.1
MEETING DATE: September 10, 2024

A PROCLAMATION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY RECOGNIZING
SEPTEMBER 15 – OCTOBER 15, 2024
AS “NATIONAL HISPANIC HERITAGE MONTH”

CITY COUNCIL
City of Morro Bay, California
WHEREAS, the City of Morro Bay is welcoming, inclusive, and dedicated to improving the quality of life for those who live, work, and visit here; and WHEREAS, what began in 1968 as Hispanic Heritage Week under President Lyndon Johnson and was expanded by President Reagan in 1988 to cover a 30-day period starting on September 15, the United States observes Hispanic Heritage Month; and WHEREAS, Hispanic Heritage Month celebrates the histories, cultures and contributions, of those whose ancestors came to America from Spain, Mexico, the Caribbean, and Central and South America; and
WHEREAS, the purpose of Hispanic Heritage Month is to create awareness of the contributions of people of Hispanic Heritage to the American culture. Many people of Hispanic Heritage serve as civil rights leaders and community organizers, politicians, teachers, journalists, first responders, artists, healthcare professionals, athletes, inventors, entertainers, and more; and
WHEREAS, Hispanic Heritage Month is tied to the celebration of the rich tapestry of our community and reflects an array of distinct cultures; and WHEREAS, Morro Bay is fortunate to count among its population a large number of residents of Spanish and Latin American descent, who grow businesses, offer innovative ideas, strengthen our economy, create jobs, and contribute to our daily lives.

NOW, THEREFORE, BE IT RESOLVED that Morro Bay City Council does hereby proclaim September 15 - October 15, 2024 as "National Hispanic Heritage Month" and invite the community to learn more of the Hispanic culture, people, traditions and values that have positively enriched our community.

IN WITNESS WHEREOF I have hereunto
set my hand and caused the seal of the City
of Morro Bay to be affixed this 10th day of
September 2024
______________________________
CARLA WIXOM, Mayor
City of Morro Bay, California

Prepared By: DS Dept Review:___
City Manager Review: __YK______ City Attorney Review: __ Staff Report
TO: Honorable Mayor and City Council DATE: August 30, 2024 FROM: Dana Swanson, City Clerk
SUBJECT: Designation of Voting Delegate and Alternate at League of California Cities 2024 Annual Conference Business Meeting

RECOMMENDED ACTION

1. Select City Manager Kimball, as the voting delegate for the upcoming annual business meeting to be held at the League of California Cities Annual Conference; and

2. Authorize the City Clerk to complete the League of California Cities’ online submission form attesting that council action was taken and affirming the selection of the voting delegate.

ALTERNATIVE(S)
The Council may choose not to select any delegates; however, the City would not have voting rights at the annual business meeting.

BACKGROUND
In order to conduct the annual League of California Cities’ business meeting, held in conjunction with the League of California Cities Annual Conference, every represented city must have its city council designate a voting representative who will be registered at the conference and present at the annual business meeting (the General Assembly). Each member city may also appoint up to two alternates, one of whom may vote in the event the designated voting delegate is unable to serve in that capacity.

Conference attendance provides an exceptional opportunity for elected officials to hear from leading experts, expand their knowledge regarding municipal government, and view innovative resources that could benefit the delivery of services, enhance resources, and strengthen the City.

DISCUSSION
The League of California Cities 2024 Annual Conference and Expo is being held October 16 - 18, 2024, in Long Beach, California. The Opening General Session is tentatively scheduled at 1:30 p.m. on Wednesday, October 16, with educational sessions Wednesday afternoon through noon Friday. The League’s Annual Business Meeting and General Assembly will be held at 8:30 a.m. on Friday, October 18. The delegates in attendance at the General Assembly are asked to vote AGENDA NO: 7.c
MEETING DATE: September 10, 2024

2 on resolution(s) submitted by member agencies and developed for the Assembly’s consideration.

If adopted, then the resolutions are used to set League policy or to provide direction for the League’s work efforts in the coming year. This year one resolution is being offered for membership consideration; the details of the proposed resolution are provided in Attachment 1 (beginning on page 9).

1. A RESOLUTION OF THE GENERAL ASSEMBLY OF THE LEAGUE OF

CALIFORNIA CITIES CALLING FOR THE CALIFORNIA LEGISLATURE TO ENACT LAWS THAT ENSURE THAT “WHAT APPLIES TO ONE, APPLIES TO ALL” IN THE

FAIR AND EQUAL TREATMENT OF ALL GOVERNMENTAL OFFICIALS AT ALL LEVELS IN THE STATE OF CALIFORNIA.

Source: City of Glendora
Concurrence of five or more cities/city officials
City officials: April A Verlato, Mayor, City of Arcadia; Robert Gonzales, Mayor, City of Azusa; Tim Hepburn, Mayor, City of La Verne; Bill Uphoff, Mayor, City of Lomita; John M.

Cruikshank, Mayor, City of Ranchos Palos Verdes
Referred to: Governance, Transparency and Labor Relations Policy Committee

In order to vote at the League of California Cities 2024 Annual Conference Business Meeting, the City Council must select a voting delegate. In the event the designated voting delegate is unable to serve in this capacity, the City Council may appoint up to two alternate voting delegates. The voting delegate must be registered to attend the conference; however, they may register for Friday only. Currently, City Manager Kimball is registered to attend the League of California Cities Annual Conference.

CONCLUSION
Staff recommends the City Council appoint City Manager Kimball as the voting delegate for the upcoming annual business meeting to be held at the League of California Cities Annual Conference.

ATTACHMENT(S)

1. 2024 Resolutions Packet

2023-2024

CAL CITIES OFFICERS
President
Daniel T. Parra
Mayor
Fowler
First Vice President
Lynne Kennedy
Mayor Pro Tem,
Rancho Cucamonga
Second Vice President
Gabe Quinto
Council Member,
El Cerrito
Immediate Past President
Ali Sajjad Taj
Mayor Pro Tem,
Artesia
Executive Director
and CEO
Carolyn M. Coleman
1400 K Street, Suite 400, Sacramento, CA 95814 • 916.658.8200 • calcities.org August 28, 2024
TO: Mayors, Council Members, City Managers, and City Clerks RE: Cal Cities 2024 Resolution Packet
Sixty days before the Cal Cities Annual Conference and Expo, Cal Cities members may submit resolutions on issues of importance to cities. This year, Cal Cities received one resolution by the Aug. 17 deadline.

The attached packet contains the proposed resolution, supporting letters from city officials, and an analysis of the resolution by Cal Cities. The packet includes detailed information on the resolution process.

We encourage each city council to consider the resolution and determine a city position so your voting delegate can represent your city’s position on the resolution.

Voting Delegates: City councils must appoint a voting delegate to vote during the General Assembly. Each city may also appoint up to two alternate delegates. If your city has not already done so, please appoint your voting delegate by Sept. 25. The voting delegate packet contains more information.

The Cal Cities 2024 General Assembly will be held Oct. 18 at 8:30 a.m. in the Long Beach Convention Center during the Annual Conference and Expo.

For questions about resolutions, voting delegates, or the General Assembly, please contact Zach Seals.

2024
Resolutions
Packet

2024 Resolutions Packet
Information on 2024 Resolutions Process
Consideration by Policy Committee (pre-conference)
Per the Cal Cities bylaws, the Cal Cities President has referred the submitted resolution to the Governance, Transparency, and Labor Relations Policy Committee. The committee will meet on Oct. 3 at 10 a.m. via Zoom to review the resolution and make a recommendation that will be sent to the Resolutions Committee. A public comment period will be held during the meeting. Register for the meeting here.

A list of recommendations the policy committee may make during its meeting are on page three of this packet.

Consideration by Resolutions Committee (during conference) On Oct. 17 at 1:30 p.m. the Resolutions Committee will meet to review the resolution and the recommendation of the policy committee.

The Resolutions Committee consists of one representative from each of Cal Cities caucuses, departments, divisions, and policy committees, as well as up to ten additional appointments made by the Cal Cities President. A public comment period will be held during the meeting. Refer to the onsite conference program for the location.

A list of recommendations the Resolutions Committee may make during its meeting are on page three of this packet.

Consideration by the General Assembly (during conference) The General Assembly will convene on Oct. 18 at 8:30 a.m. to consider any qualified resolutions. To vote during the General Assembly, voting delegates must have checked-in at the voting delegate booth.

Conference attendees will receive materials for the General Assembly on the evening of Oct. 17. For more information on voting and discussion procedures during the General Assembly, see page four of this packet.

Petitioned Resolutions (during conference)
The petitioned resolution is an alternate method to introduce policy proposals during the annual conference. To initiate a petitioned resolution, voting delegates from 10% of member cities must sign the petition. The resolution and signatures are due at least 24 hours before the beginning of the General Assembly. Voting delegates who have checked-in at the voting delegate booth can receive more information on petitioned resolutions at the booth onsite.

1 Sixty days before the
Annual Conference
and Expo, Cal Cities
members may submit
policy proposals on
issues of importance
to cities. The resolution must
have the concurrence of at least
five additional member cities or
individual members.

How it works: Cal Cities
Resolutions and the General Assembly
General Assembly
General Resolutions Policy Committees
Developing League of California Cities policy is a dynamic process that engages a wide range of members to ensure Cal Cities represents cities with one voice. These policies directly guide Cal Cities’ advocacy to promote local decision-making, and lobby against statewide policies that erode local control.

The resolutions process and General Assembly is one way that city officials can directly participate in the development of Cal Cities policy. If a resolution is approved at the General Assembly, it becomes official Cal Cities policy. Here’s how resolutions and the General Assembly work.

The petitioned
resolution is an
alternate method
to introduce policy
proposals during
the annual conference. The
petition must be signed by
voting delegates from 10% of
member cities, and submitted to
the Cal Cities President at least
24 hours before the beginning
of the General Assembly.

Petitioned Resolutions
The Cal Cities
President assigns
general resolutions
to policy committees
where members
review, debate, and recommend
positions for each policy proposal.

Recommendations are forwarded
to the Resolutions Committee.

Who’s who
The Resolutions Committee
includes representatives
from each Cal Cities
diversity caucus, regional
division, municipal
department, and policy
committee, as well as
individuals appointed by
the Cal Cities president.

Voting delegates
are appointed by each
member city; every city
has one voting delegate.

The General Assembly is a
meeting of the collective
body of all voting
delegates —one from
every member city.

Seven policy committees
meet throughout the year
to review and recommend
positions to take on bills
and regulatory proposals.

Policy committees include
members from each Cal
Cities diversity caucus,
regional division, and
municipal department,
as well as individuals
appointed by the Cal
Cities president.

During the General Assembly, voting delegates
debate and consider general and petitioned
resolutions forwarded by the Resolutions
Committee. Potential Cal Cities bylaws
amendments are also considered at this meeting.

Cal Cities policy
development is a memberinformed process,
grounded in the voices and
experiences of city officials
throughout the state.

For more information visit www.calcities.org/general-assembly Prior to the Annual Conference and Expo
Resolutions Committee
The Resolutions
Committee considers
all resolutions. General
Resolutions approved1 by
either a policy committee
or the Resolutions Committee are next
considered by the General Assembly.

General resolutions not approved, or
referred for further study by both a
policy committee and the Resolutions
Committee do not go to the General
Assembly. All Petitioned Resolutions
are considered by the General
Assembly, unless disqualified.2
During the Annual Conference and Expo
1 The Resolution Committee can amend a general resolution prior to sending it to the General Assembly. 2 Petitioned Resolutions may be disqualified by the Resolutions Committee according to Cal Cities Bylaws Article VI. Sec. 5(f). Page 21 of 111 2 2024 Resolutions Packet
Policy Committee and Resolutions Committee Actions
The submitted resolution will be heard by the policy committee to which it was assigned, and the Resolutions Committee. The below table shows what recommendations these bodies may make on the resolution.

Policy Committee Actions Resolutions Committee Actions
Approve Approve
Disapprove* Disapprove*
No Action No Action
Amend and approve Amend and approve
Refer to appropriate policy committee
for further study*
Approve as amended
Refer as amended to appropriate
policy committee for further study*
Refer to appropriate policy committee
for further study*
Refer as amended to appropriate
policy committee for further study*
Approve with additional
amendment(s)
Additional amendments and refer to
appropriate policy committee for
further study*
*If a resolution is disapproved or referred for further study by all policy committees to which it is assigned and the Resolutions Committee, it will not proceed to the General Assembly.

3 2024 Resolutions Packet
General Assembly Voting and Discussion Procedures
Discussion Procedures:

Discussion procedures during the General Assembly are guided by two calendars:
the Consent Calendar and the Regular Calendar. As seen below, resolutions are calendared by the recommendations they receive from policy committees and the Resolutions Committee.

For General Resolutions:

Policy Committee
Recommendation
Resolutions Committee
Recommendation Calendar
Approve Approve Consent Calendar
Approve Disapprove or refer Regular Calendar
Disapprove or refer Approve Regular Calendar
Disapprove or refer Disapprove or refer Does not proceed to General Assembly
For Petitioned Resolutions:

Policy Committee
Recommendation Resolutions Committee Action Calendar
N/A
Approve Regular Calendar
Disapprove or Refer Regular Calendar
Disqualified Does not proceed to General
Assembly
Items on the Consent Calendar will be presented as one motion during the General Assembly from the Resolutions Committee chair. Unless an item on the Consent Calendar is set aside by the majority of the General Assembly, a vote will be taken on the whole calendar. It an item is set aside, it will be opened for discussion, followed by a vote.

Items on the Regular Calendar will be presented individually by the Resolutions Committee chair. After a recommendation is presented by the Resolutions Committee chair, the resolution will be opened for discussion by the General Assembly. A vote will take place following discussion.

Voting Procedures:

Per Cal Cities Bylaws Article XII, Sec. 2, all votes will be conducted by voice vote first. If the presiding official cannot determine the outcome a vote will be taken by an alternative method, typically a raise of voting cards by voting delegates. A roll call vote may be called for by delegates of ten percent or more of the General Assembly.

4 2024 Resolutions Packet
2024 Resolution

1. Resolution on Fair and Equal Treatment of All Governmental Officials at All Levels submitted by City of Glendora
• Letters of concurrence submitted by:
i. April A. Verlato, Mayor, City of Arcadia
ii. Robert Gonzales, Mayor, City of Azusa
iii. Tim Hepburn, Mayor, City of La Verne
iv. Bill Uphoff, Mayor, City of Lomita
v. John M. Cruikshank, Mayor, City of Rancho Palos Verdes • Referred to Governance, Transparency, and Labor Relations Policy Committee
• Policy Committee Recommendation:
• Resolutions Committee Recommendation:

5 2024 Resolutions Packet
Resolution No. 1: Fair and Equal
Treatment of All Governmental
Officials at All Levels submitted by
City of Glendora

6 2024 Resolutions Packet

1. A RESOLUTION OF THE GENERAL ASSEMBLY OF THE LEAGUE OF

CALIFORNIA CITIES CALLING FOR THE CALIFORNIA LEGISLATURE TO ENACT LAWS THAT ENSURE THAT “WHAT APPLIES TO ONE, APPLIES TO ALL” IN THE

FAIR AND EQUAL TREATMENT OF ALL GOVERNMENTAL OFFICIALS AT ALL

LEVELS IN THE STATE OF CALIFORNIA
Source: City of Glendora
Concurrence of five or more cities/city officials
City Officials: April A. Verlato, Mayor, City of Arcadia; Robert Gonzales, Mayor, City of Azusa; Tim Hepburn, Mayor, City of La Verne; Bill Uphoff, Mayor, City of Lomita; John M. Cruikshank, Mayor, City of Rancho Palos Verdes
Referred to: Governance, Transparency and Labor Relations Policy Committee
WHEREAS, the General Assembly of the League of California Cities objects to the practice of the California Legislature of imposing rules limiting authority or regulating the conduct of local municipal officials that do not also apply to elected officials of the State of California; and WHEREAS, examples of such rules or regulations that apply to local city elected officials that do not otherwise apply to the elected officials of the State of California include, but are not limited to:

California’s open meeting rules, codified in the Ralph M. Brown Act, Government Code, Chapter 9, §§ 54950 et seq., which purport to “declare[] that the public commissions, boards and councils and the other public agencies in this State exist to aid in the conduct of the people’s business. It is the intent of the law that their actions be taken openly and that their deliberations be conducted openly,” but which limits its application to “local agencies,” but not including elected officials of the State of California; Creating “one-off” exemptions, in the form of Senate Bill No. 174, from the California Environmental Quality Act (“CEQA”) which purportedly requires all government agencies to consider the environmental consequences of their actions before approving plans and policies or committing to a course of action on a project in order to demolish and then rebuild State offices for the Governor and other State officials;

7 2024 Resolutions Packet
Adopting rules, in the form of Senate Bill No. 1439, amending the Political Reform Act (the “Act”), by removing the exception for local elected officers from contribution limits requiring disqualification on development project decisions,” but not including elected officials of the State of California;
Adopting rules, in the form of Assembly Bill No. 571, that apply to city and county candidates for local elected office, but not to candidates for state-wide office, including, but not limited to: prohibiting the making a contribution over the AB 571 limit to another candidate in jurisdictions subject to the AB 571; requiring a candidate that has qualified as a committee to establish a separate controlled committee and campaign bank account for each specific office; prohibiting a candidate from redesignating a committee for one election for another election.

WHEREAS, the General Assembly of the League of California Cities now calls upon the Governor and the California Legislature to adopt a policy, practice, and procedure requiring, in their legislative activities, that “what applies to one applies to all.”
NOW, THEREFORE, BE IT RESOLVED at the League General Assembly, assembled at the League Annual Conference on October 18, 2024 in Long Beach, California, that the League calls upon the Governor of the State of California and the elected members of the California Legislature, including all members of the Senate and Assembly to adopt the following policy:
“The California State Legislature shall not enact, and the Governor shall not sign into law, any law or regulation that applies solely to elected officials of California cities and counties, unless such law or regulation also applies equally to members of the California State Assembly and Senate. This prohibition shall not apply to laws or regulations affecting the inherent powers of the legislative branch under the California Constitution.”

8 2024 Resolutions Packet
Resolution No. 1: Letters of
Concurrence

9 July 10, 2024
The City Council of Glendora
is proposing the following resolution for consideration at the California League of Cities annual conference
on
October 18, 2024
Proposed Resolution: (“To ensure fairness and equal treatment for all government officials in California”)
“The California State Legislature shall not enact, and the Governor shall not approve, any law or regulation that applies solely to elected officials of California cities and counties, unless such law or regulation also applies equally to members of the California State Assembly and Senate. This prohibition shall not apply to laws or regulations affecting the inherent powers of the legislative branch under the California Constitution.”
The following five city council members are in concurrence with their letters of support (attached):
✓ Mayor John Cruikshank, City of Rancho Palos Verdes
✓ Mayor Bill Uphoff, City of Lomita
✓ Mayor Robert Gonzales, City of Azusa
✓ Mayor April Verlato, City of Arcadia
✓ Mayor Tim Hepburn, City of La Verne
Please confirm receipt of this request.

Sincerely,
Michael Allawos
Council Member
City of Glendora

10

11

12

13

14

15 2024 Resolutions Packet
Resolution No. 1: Staff Analysis

16 League of California Cities Staff Analysis on Resolution No. 1 Staff: Johnnie Pina, Legislative Affairs, Lobbyist
Committee: Governance, Transparency, and Labor Relations Summary:

This Resolution states that the League of California Cities shall call upon the Governor of the State of California and the elected members of the California Legislature, including all members of the Senate and Assembly to adopt the following policy:
“The California State Legislature shall not enact, and the Governor shall not sign into law, any law or regulation that applies solely to elected officials of California cities and counties, unless such law or regulation also applies equally to members of the California State Assembly and Senate. This prohibition shall not apply to laws or regulations affecting the inherent powers of the legislative branch under the California Constitution.”
Background:

This resolution states that examples of the California Legislature imposing rules limiting authority or regulating the conduct of local municipal officials that do not also apply to elected officials of the State of California include, but are not limited to:
• California’s open meeting rules, codified in the Ralph M. Brown Act, Government Code, Chapter 9, §§ 54950 et seq.;
• “One-off” exemptions, in the form of Senate Bill No. 174, from the California Environmental Quality Act (“CEQA”);
• Rules, in the form of Senate Bill No. 1439, amending the Political Reform Act (the “Act”); and
• Rules, in the form of Assembly Bill No. 571, that apply to city and county candidates for local elected office, but not to candidates for state-wide office.

Ralph M. Brown Act
The California Attorney General’s (AG) Office defines The Ralph M. Brown Act (Brown Act) as what governs meetings conducted by local legislative bodies, such as boards of supervisors, city councils and school boards. The AG’s office states the Act represents the Legislature’s determination of how the balance should be struck between public access to meetings of multi-member public bodies on the one hand and the need for confidential candor, debate, and information gathering on the other.

The Ralph M. Brown Act governs local agencies, the Bagley-Keene Open Meeting Act covers all state boards and commissions, and Government code

17 9027 governs the state Legislature. The California Constitution also mandates open meetings for state agencies, boards, and commissions. Specifically, the Constitution requires that each local agency comply with the Brown Act (Article I, section 3(b)(7)): and that the proceedings of each house of the Legislature be open and public (with exceptions for employment matters; matters affecting security; confer with legal counsel; and to meet as a caucus (Article IV, section 7).

Although fairly detailed requirements apply to state agencies and other state bodies, they do not apply to the Legislature. The Legislature has Constitutional authority to adopt rules for its proceedings that are consistent with the requirement that the proceedings of each house and the committees be open and public.

Another notable difference between the Legislature and a city council is the ability for Legislators to have a caucus to discuss a bill, express how they will vote, and to count votes. This is not allowed under the Brown Act. One other difference is that the laws governing teleconferencing for members of the state Legislature is far less flexible than it is for local bodies. However, state agencies have more flexibility than locals in that regard.

California Environmental Quality Act (“CEQA”)
The Resolution cites the Legislature's action in exempting from CEQA the reconstruction of the State Capitol Annex building. The State Legislature enacted the California Environmental Quality Act (CEQA) in 1970, establishing it as a public disclosure law for the environmental review of discretionary projects and a process for mitigating or avoiding potential environmental impacts.

SB 174 (Committee on Budget and Fiscal Review) Chaptered by Secretary of State. Chapter 74, Statutes of 2024 was signed into law July 2, 2024. This bill exempts the work performed under the State Capitol Building Annex Act of 2016 from the California Environmental Quality Act (CEQA). In this example the Legislature exempted themselves as not being considered a “public agency,” “state agency,” or “lead agency” under CEQA. A lead agency under CEQA is the public agency that has the principal responsibility for carrying out or approving a project that is subject to CEQA.

Over the years, the Legislature has also created many CEQA exceptions and exemptions for local projects involving local agencies as well.

The Political Reform Act (PRA) - Senate Bill No. 1439
SB 1439 (Glazer) Chaptered by Secretary of State. Chapter 848, Statutes of 2022 amends section 84308 and is aimed at preventing "pay-to-play" practices, in part by prohibiting parties, participants, and their respective agents in a

18 proceeding involving a license, permit, or other entitlement for use from contributing more than $250 to an officer of an agency during a 12 month period. When the Levine Act was first enacted in 1982, Section 84308 applied to appointed members of boards and commissions who were running for elective office. SB 1439 expended this law to now apply to local elected officials. Since it is focused on permits and licenses, it now applies to State agencies and local agencies that approve permits and licenses. Section 84308 does not apply to the Legislature or the Courts. It is important to note that unlike local governments, neither issue permits and licenses.

The Political Reform Act (PRA) - Assembly Bill No. 571
AB 571 (Mullin) Chaptered by Secretary of State. Chapter 556, Statutes of 2019 established default campaign contribution limits for county and city office at the same level as the limit on contributions from individuals to candidates for Senate and Assembly, effective January 1, 2021. This bill permitted a county or city to establish its own contribution limits, which would prevail over these default limits.

The Resolution cites AB 571 as an example of treating cities differently than the State. The Fair Political Practices Commission clarifies in their AB 571 fact sheet that under AB 571 a city may elect to have "no" contribution limit in which case the state contribution limit will not apply as a default for that jurisdiction. A city or county can set contribution limits higher than the default state limit, AB 571 sets a default in line with contributions Assembly Members and Senators if a city or county is silent on contribution limits.

Fiscal Impact:

Unknown.

Existing Cal Cities Policy:

Mission Statement
To expand and protect local control for cities through education and advocacy to enhance the quality of life for all Californians.

We Believe:
• Local self-governance is the cornerstone of democracy. • In the involvement of all stakeholders in establishing goals and in solving problems.
• In conducting the business of government with transparency, openness, respect, and civility. The spirit of honest public service is what builds communities.
• Open decision-making that is of the highest ethical standards honors the public trust.
• The vitality of cities is dependent upon their fiscal stability and local autonomy. The active participation of all city officials increases Cal Cities’ effectiveness.

19 • Partnerships and collaborations are essential elements of focused advocacy and lobbying.
• Ethical and well-informed city officials are essential for responsive, visionary leadership and effective and efficient city operations.

Comments:

Additional Examples
The Legislature has passed and the Governor has signed many laws that apply to local governments and do not apply to the state or the state Legislature. This year AB 2561(McKinnor) was introduced, which requires local governments to present in a public meeting a detailed report about their vacancy rates and detailed information about their hiring practices. This is an attempt to address public sector vacancy rates. This bill does not apply to the state in a time when they are also dealing with high vacancy rates.

Additionally, there were several bills that aim to amend the Levine Act, which now applies to local elected officials, to make changes to SB 1439, referenced previously in the analysis. None of the bills would amend the law to be applicable to Assembly Members or Senators.

AB 817 (Pacheco), co-sponsored by Cal Cities tried to bring parity to the Brown Act by making the teleconference rules for state advisory bodies the same for local advisory bodies but the Legislature struck the bill down.

Applying to elected officials or to the legislative body? Legislature or the State? The resolution also states, “… applies solely to elected officials of California cities and counties, unless such law or regulation also applies equally to members of the California State Assembly and Senate.”
This portion of the resolve clause is specifically speaking to local elected officials and State Assembly Members and Senators. However, many of the “where as” clauses are in reference to laws that apply to cities, the state and the Legislature as government agencies and not specifically to the elected officials on the governing bodies. For example, the Brown Act applies rules to the Legislative body and not the individual council member. Additionally, the city council as a whole is the lead agency under CEQA and not the individual council members.

Inherent Powers of the Legislative Branch
The resolution also states, “This prohibition shall not apply to laws or regulations affecting the inherent powers of the legislative branch under the California Constitution.”
It is unclear what inherent powers of the legislate branch under the California Constitution means in this context. The legislative branch does have the power

20 of preemption over cities and can state that a change in law is a matter of state wide concern. This allows the legislative branch to apply new laws or amend existing laws to apply to general law and charter cities. It seems like the last sentence of the resolve clause could negate the rest of the resolve clause if not clarified.

Support:

The following letters of concurrence were received:

April A. Verlato, Mayor, City of Arcadia
Robert Gonzales, Mayor, City of Azusa
Tim Hepburn, Mayor, City of La Verne
Bill Uphoff, Mayor, City of Lomita
John M. Cruikshank, Mayor, City of Rancho Palos Verdes

21 Staff Report
AGENDA NO: 7.d
MEETING DATE: September 10, 2024
01181.0001/1013388.1
Prepared By: ____CFN____ Dept Review:_____
City Manager Review: __YK______ City Attorney Review: __CFN____ TO: Honorable Mayor and City Council DATE: September 3, 2024

FROM: Chris F. Neumeyer, City Attorney
SUBJECT: National Opioid Settlement Agreements with Kroger Co.

RECOMMENDED ACTION

1. Approve Settlement Agreements and Participation Forms for the City’s participation in the National Opioid Settlement Agreements with Kroger Co.

2. Approve the California State-Subdivision Agreements Regarding Distribution and Use of Settlement Funds relating to the National Opioid Settlement Agreements with Kroger Co.

3. Adopt Resolution No. 60-24 approving and authorizing the City Manager to carry out all necessary acts such that the City can participate in the National Opioid Settlements with Kroger Co., including signing necessary documents and transmittal thereof as necessary.

4. Approve disbursement of initial partial settlement funds to County (default option) while reserving option for direct distribution of further settlement funds to City later in time.

ALTERNATIVES
Do not approve settlement agreements and related items; or, opt in for City receipt of settlement funds rather than default to County and/or State receipt of settlement funds.

FISCAL IMPACT
If the City participates, the funds will automatically be allocated to the County, unless the City opts to receive the funds directly. The City may later in time request direct payment to City (rather than default to the County). If the City does not participate at all, then the City’s share goes to the State of California. At this point actual distributions have not been conclusively calculated as the amounts depend on completion of process. In 2023 and 2021, the Council approved national opioid settlement agreements with other defendants and the County estimated the amount then, respectively, to be approximately $252,000 over 6-15 years for City’s share, and approximately $322,000 over 18 years for City’s share. Staff recommends that the City (at least initially) default its funds to the County (rather than receive funds directly or default the funds to the State of California).

The use of settlement funds is restricted and the City reasonably does not have the infrastructure, resources and personnel to immediately and directly use the settlement funds in compliance with the settlements. Furthermore, direct receipt of the funds requires annual reporting obligations and possible audits. Prospectively upon further review and analysis on potential future direct municipal use of the funds the City may opt to receive funds directly.

01181.0001/1013388.1 2

BACKGROUND
In 2021, the City entered into settlement agreements with McKesson Corporation, Cardinal Health, Inc., and AmerisourceBergen Corporation. (collectively, the “Distributors”) and Johnson & Johnson, Janssen Pharmaceuticals, Inc., Ortho-McNeil-Janssen Pharmaceuticals, Inc., and Janssen Pharmaceutica, Inc. (collectively, the “Manufacturer”) (“2021 Settling Defendants”). The 2021 settlement agreement related to litigation (the City was not a party to this litigation) by various States, cities, and counties relating to the 2021 Settling Defendants’ manufacture and distribution of opioids and, in particular, the impact of such activities upon the national opioid epidemic (“2021 Settlement”).

In 2023, the City entered into similar settlement agreements with Teva, Allergan, Walmart, Walgreens, and CVS, who are additional defendants that are retailers and manufacturers of opioids (“2023 Settling Defendants”). These settlement agreements with the 2023 Settling Defendants contained similar terms as the 2021 Settlement (“2023 Settlement”).

Now, another national settlement has been reached with the Kroger Co. chain of pharmacies on the opioid matter (“Kroger Settlement”). The terms of the Kroger Settlement are similar to the 2021 Settlement and the 2023 Settlement, which includes the requirement that a critical mass of participation is required, provides for a broad release of Kroger Co. from liability relating to opioids, and, further, direct or indirect payment of settlement funds to the various local agencies agreeing to participate. Additional information about these settlements can be found here:
https://nationalopioidsettlement.com/

DISCUSSION
With respect to the release, as indicated above, it is a very broad release covering any activities by Kroger Co. relating to opioids, such as those relating to manufacture, distribution, or sale of opioids within the City.

With respect to the settlement funds, the Kroger Settlement would provide up to a total of $1.2 billion to participating states/subdivisions, which will be paid over an 11 year period. It is estimated that California will be eligible to receive up to $122 million of the settlement amount. This amount assumes maximum participation. Similar to the prior settlement agreements, the more local agencies that participate, the more funds will be available. However, the City’s share has yet to be determined as it is dependent upon participation levels. It must be emphasized that this $1.2 billion amount is an estimate and assumes a best-case scenario where all relevant affected agencies participate. As stated, the actual amount will not be known until the process has completed.

Similar to the prior settlement agreements, the use of the funds is restricted to opioid remediation (e.g., addiction treatment programs). By default, these funds are allocated to the County, but the City is able to elect to receive a direct distribution at any time, provided that the election is made at least 60 days prior to a distribution date; however, use of the funds also requires strict accounting requirements. These requirements only apply to the City if it elects to receive direct distribution and does not apply to the City if the funds go to the County. In terms of enforcement, the State enforces the expenditure requirements. Because of this, it is recommended that the funds be allocated to the County.

Approval of Recommendation Nos. 1 and 2 would authorize the City to participate in the National Opioid Settlements with Kroger Co. and, further, approve an agreement with the State of California on the distribution of settlement funds, consistent with the Kroger Settlement.

01181.0001/1013388.1 3
(Attachments 1, 2, and 3).

Approval of Recommendation No. 3 would approve and authorize the City Manager to carry out all necessary acts such that the City can participate in the National Opioid Settlements with Kroger Co., including signing necessary documents and transmittal thereof as necessary.

Approval of Recommendation No. 4 affirms that City reserves future option to request direct distribution of further settlement funds to City later in time.

Council approval and authorization for execution, submission, and receipt of all required documents must be completed by September 11, 2024.

ATTACHMENTS

1. Settlement Participation Form for the City’s participation in the National Opioid Settlements with Kroger Co.

2. 2024 Settlement Agreement with Kroger Co. available at https://nationalopioidsettlement.com/wp-content/uploads/2024/05/Kroger-MultistateSettlement-Agreement-Circulated-to-States-March-25-2024.pdf

3. Proposed California State-Subdivision Agreements Regarding Distribution and Use of Settlement Funds in the Kroger Settlement, available at https://oag.ca.gov/system/files/media/kroger-state-subdivision-agreement.pdf

4. Resolution No. 60-24 approving and authorizing the City Manager to carry out all necessary acts such that the City can participate in the National Opioid Settlement with Kroger, including signing necessary documents and transmittal thereof as necessary.

K-1

EXHIBIT K
Subdivision Participation and Release Form
Governmental Entity: State:

Authorized Official:

Address 1:

Address 2:

City, State, Zip:

Phone:

Email:

The governmental entity identified above (“Governmental Entity”), in order to obtain and in consideration for the benefits provided to the Governmental Entity pursuant to the Settlement Agreement dated March 22, 2024 (“Kroger Settlement”), and acting through the undersigned authorized official, hereby elects to participate in the Kroger Settlement, release all Released Claims against all Released Entities, and agrees as follows.

1. The Governmental Entity is aware of and has reviewed the Kroger Settlement, understands that all terms in this Participation and Release Form have the meanings defined therein, and agrees that by executing this Participation and Release Form, the Governmental Entity elects to participate in the Kroger Settlement and become a Participating Subdivision as provided therein.

2. The Governmental Entity shall promptly, and in any event no later than 14 days after the Reference Date and prior to the filing of the Consent Judgment, dismiss with prejudice any Released Claims that it has filed. With respect to any Released Claims pending in In re National Prescription Opiate Litigation, MDL No. 2804, the Governmental Entity authorizes the Plaintiffs’ Executive Committee to execute and file on behalf of the Governmental Entity a Stipulation of Dismissal with Prejudice substantially in the form found at https://nationalopioidsettlement.com/.

3. The Governmental Entity agrees to the terms of the Kroger Settlement pertaining to Participating Subdivisions as defined therein.

4. By agreeing to the terms of the Kroger Settlement and becoming a Releasor, the Governmental Entity is entitled to the benefits provided therein, including, if applicable, monetary payments beginning after the Effective Date.

5. The Governmental Entity agrees to use any monies it receives through the Kroger Settlement solely for the purposes provided therein.

6. The Governmental Entity submits to the jurisdiction of the court in the Governmental Entity’s state where the Consent Judgment is filed for purposes limited to that court’s role as provided in, and for resolving disputes to the extent provided in, the Kroger Settlement.

The Governmental Entity likewise agrees to arbitrate before the National Arbitration Panel

K-2
as provided in, and for resolving disputes to the extent otherwise provided in, the Kroger Settlement.

7. The Governmental Entity has the right to enforce the Kroger Settlement as provided therein.

8. The Governmental Entity, as a Participating Subdivision, hereby becomes a Releasor for all purposes in the Kroger Settlement, including without limitation all provisions of Section XI (Release), and along with all departments, agencies, divisions, boards, commissions, districts, instrumentalities of any kind and attorneys, and any person in their official capacity elected or appointed to serve any of the foregoing and any agency, person, or other entity claiming by or through any of the foregoing, and any other entity identified in the definition of Releasor, provides for a release to the fullest extent of its authority. As a Releasor, the Governmental Entity hereby absolutely, unconditionally, and irrevocably covenants not to bring, file, or claim, or to cause, assist or permit to be brought, filed, or claimed, or to otherwise seek to establish liability for any Released Claims against any Released Entity in any forum whatsoever. The releases provided for in the Kroger Settlement are intended by the Parties to be broad and shall be interpreted so as to give the Released Entities the broadest possible bar against any liability relating in any way to Released Claims and extend to the full extent of the power of the Governmental Entity to release claims. The Kroger Settlement shall be a complete bar to any Released Claim.

9. The Governmental Entity hereby takes on all rights and obligations of a Participating Subdivision as set forth in the Kroger Settlement.

10. In connection with the releases provided for in the Kroger Settlement, each Governmental Entity expressly waives, releases, and forever discharges any and all provisions, rights, and benefits conferred by any law of any state or territory of the United States or other jurisdiction, or principle of common law, which is similar, comparable, or equivalent to § 1542 of the California Civil Code, which reads:

General Release; extent. A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release that, if known by him or her would have materially affected his or her settlement with the debtor or released party.

A Releasor may hereafter discover facts other than or different from those which it knows, believes, or assumes to be true with respect to the Released Claims, but each Governmental Entity hereby expressly waives and fully, finally, and forever settles, releases and discharges, upon the Effective Date, any and all Released Claims that may exist as of such date but which Releasors do not know or suspect to exist, whether through ignorance, oversight, error, negligence or through no fault whatsoever, and which, if known, would materially affect the Governmental Entities’ decision to participate in the Kroger Settlement.

K-3

11. Nothing herein is intended to modify in any way the terms of the Kroger Settlement, to which Governmental Entity hereby agrees. To the extent this Participation and Release Form is interpreted differently from the Kroger Settlement in any respect, the Kroger Settlement controls.

I have all necessary power and authorization to execute this Participation and Release Form on behalf of the Governmental Entity.

Signature: ______________________________
Name: ______________________________
Title: ______________________________
Date: ______________________________

01181.0001/1013686.1
RESOLUTION NO. 60-24

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA,

AUTHORIZING THE CITY OF MORRO BAY TO ENTER INTO

THE MASTER SETTLEMENT AGREEMENT WITH KROGER CO
(INCLUDING THE RELATED PARTICIPATION AGREEMENTS);
AGREE TO THE TERMS OF THE RELATED STATESUBDIVISION AGREEMENTS AND AUTHORIZE ENTRY INTO

THE RELATED STATE-SUBDIVISION ALLOCATION
AGREEMENTS WITH THE ATTORNEY GENERAL; AND

AUTHORIZING THE CITY MANAGER TO CARRY OUT

FURTHER RELATED ACTS

T H E C I T Y C O U N C I L
City of Morro Bay, California
WHEREAS, the United States is facing an ongoing public health crisis of opioid abuse, addiction, overdose, and death, forcing the State of California and California counties and cities to spend billions of dollars each year to address the direct consequences of this crisis; and, WHEREAS, pending in the U.S. District Court for the Northern District of Ohio is a multidistrict litigation (“MDL”) being pursued by numerous public entity plaintiffs against the manufacturers and distributors of various opioids based on the allegation that the defendants’ unlawful conduct caused the opioid epidemic; and,
WHEREAS, on or about September 8, 2023, a proposed nationwide tentative settlement was reached between the plaintiffs in the MDL and Kroger Co. (“Kroger”); and, WHEREAS, as part of the settlement with Kroger, local subdivisions, including certain cities, that are not plaintiffs in the MDL may participate in the settlement in exchange for a release of Kroger (“Participating Subdivision”); and,
WHEREAS, copies of the proposed terms of those proposed nationwide settlements have been set forth in the Master Settlement Agreement with Kroger; and, WHEREAS, copies of the Master Settlement Agreement have been made available to the City Council with this Resolution (“Master Settlement Agreement”); and, WHEREAS, the Master Settlement Agreement provide, among other things, for the payment of up to approximately $1.2 billion to settling government entities in the United States, including to the State of California and Participating Subdivisions upon occurrence of certain events as defined in the Master Settlement Agreements (“California Opioid Funds”); and, WHEREAS, in order to become a Participating Subdivision, the City must enter into “Participation Agreements” which allow participation in the Master Settlement Agreement; and, WHEREAS, California local governments in the MDL have engaged in extensive discussions with the State Attorney General’s Office (“AGO”) as to how the California Opioid Funds will be allocated, which has resulted in the Proposed California State-Subdivision Agreements Regarding Distribution and Use of Settlement Funds (“Allocation Agreements”) from

01181.0001/1013686.1
the settlements with the Settling Defendants; and,
WHEREAS, copies of the Allocation Agreements for all of the settlements with the Settling Defendants have been made available to the City Council with this Resolution; and, WHEREAS, under the Master Settlement Agreement, certain local subdivisions that did not file a lawsuit against the Settlement Defendants may qualify to participate in the settlements and obtain funds from the Abatement Account Fund; and,
WHEREAS, the City is eligible to participate in the Master Settlement Agreements and become a CA Participating Subdivision; and,
WHEREAS, City’s share of the CA portion of the settlement funds will be determined based upon a final calculation as provided in the Allocation Agreements (the “Local Allocation”); and,
WHEREAS, a CA Participating Subdivision that is a city will be allocated its Local Allocation share as of the date on which it becomes a Participating Subdivision. The Local Allocation share for a city that is a CA Participating Subdivision will be paid to the county in which the city is located, unless the city elects to take a direct election of the settlement funds, so long as: (a) the county is a CA Participating Subdivision, and (b) the city has not advised the Settlement Fund Administrator that it requests direct payment at least 60 days prior to a Payment Date; and, WHEREAS, it is the intent of this Resolution to authorize the City to enter into the Master Settlement Agreements with the Settling Defendants by executing the Participation Agreements and to enter into the Allocation Agreements by executing the signature pages to those agreements.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:

Section 1. Recitals. The Recitals set forth above are true and correct and are incorporated into this Resolution by this reference.

Section 2. Approval and Authorization. The City Manager is hereby approved and authorized to settle and release the City’s claims against Kroger in exchange for the consideration set forth in the Master Settlement Agreement, Participation Agreement, Allocation Agreement, and all exhibits thereto.

Section 3. Further Acts. The City Manager is hereby authorized to carry out all necessary acts such that the City can participate in the Master Settlement Agreement, including, without limitation, execution (as necessary) of the Participation Agreement, Master Settlement Agreement, Allocation Agreement, and all related documents; and the transmittal of thereof as necessary and appropriate.

Section 4. Ratification. All actions heretofore taken by the City Council and other appropriate public officers and agents of the City with respect to the matters contemplated under this Resolution are hereby ratified, confirmed and approved. ///

01181.0001/1013686.1
Section 5. Certification, Adoption and Effective Date. 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, City of Morro Bay, at a regular meeting held on the 10th day of September, 2024 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

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

Prepared By: ___DS__ Dept Review:____________
City Manager Review: __YK____ City Attorney Review: ________

Staff Report
TO: Honorable Mayor & City Council DATE: September 4, 2024 FROM: Dana Swanson, City Clerk
SUBJECT: Advisory Board Interviews and Appointments

RECOMMENDED ACTION
Conduct interviews and make appointments to fill unscheduled vacancies on the Citizens Oversight/Finance Advisory and the City’s representative on SLOCOG Citizens Transportation Advisory Committee.

ALTERNATIVES
The Council may choose not to fill one or more of the vacancies and direct staff accordingly.

BACKGROUND/DISCUSSION
On June 28, 2024, Bill Johnson informed City staff of his need to resign his position as the City’s representative on SLOCOG’s Citizens Transportation Advisory Committee (“CTAC”) and, on July 16, 2024, Kathy Hoversten notified City staff of the need to resign her position on the Citizen’s Finance Advisory Committee (“CFAC”). Notices that the City was accepting applications to fill these unscheduled vacancies were placed on the City website and “e-notification” service, published in the Estero Bay News, listed in the annual Local Appointments List (Maddy Act Notice) posted in the City Hall and Library kiosks, and distributed via City’s Facebook page.

Applications were accepted from July 22 – August 30, 2024.

The following individuals submitted applications (Attachment 1) and will be available for interview and consideration by the City Council.

CTAC
1 vacancy for a 4-year term ending October 31, 2028

1. Jennifer Madrid

2. Christopher DeMoville
CFAC
1 vacancy for a term ending January 31, 2026

1. Sarah Love

ATTACHMENTS & REFERENCE DOCUMENTS

1. Applications

2. Link to current Local Appointment List

3. Link to Advisory Body Handbook & By-laws

4. Link to Council Policies & Procedures Manual
AGENDA NO: 9.a
MEETING DATE: September 10, 2024

SLOCOG CITIZENS TRANSPORTATION

ADVISORY COMMITTEE
(CTAC)
(1 current vacancy for a 4-year term ending October 31, 2028) Applicants:

1. Jennifer Madrid

2. Christopher DeMoville

CITIZENS OVERSIGHT /

FINANCE ADVISORY COMMITTEE
(CFAC)
(1 current vacancy for the remainder of a term ending
January 31, 2026)
Applicant:

1. Sarah Love

Prepared By: __JB__ Dept Review: GK
City Manager Review: __YK__ City Attorney Review: _LNL__ Staff Report
TO: Honorable Mayor and City Council DATE: September 4, 2024 FROM: Greg Kwolek, Public Works Director
Janeen Burlingame, Management Analyst
SUBJECT: Consolidation of Morro Bay Transit Administration, Operations, and Maintenance into the San Luis Obispo Regional Transit Authority

RECOMMENDED ACTION

1. Authorize consolidation of Morro Bay Transit (MBT) administration, operations, and maintenance into the San Luis Obispo Regional Transit Authority (RTA) and direct staff to return to Council with an agreement for provision of MBT services by the RTA for authorization to execute, such agreement pending and conditional upon any required meet and confer or applicable union negotiations; and

2. Direct staff to prepare an amendment with MV Transportation (a third-party vendor providing driver and dispatch services) to extend the current agreement to align with RTA consolidation and return to Council for authorization to execute.

ALTERNATIVES
Alternatively, the City Council could:

1. Direct staff to develop and release a Request for Proposals (RFP) for a third-party contractor to provide bus driver and dispatch services and direct staff to prepare an amendment with MV Transportation to extend the current agreement through the RFP process; or

2. Provide other direction to staff.

FISCAL IMPACT
MBT services are funded by the City’s Transit fund, which is comprised by the following sources of revenue:
 Local Transportation Fund (LTF) state allocation;
 State Transit Assistance (STA) state allocation;
 Fares paid by riders.

In summary, consolidation of MBT into RTA would have several fiscal impacts to the City as follows:
 An estimated total increase of approximately $16,000 from Transit Fund to operate the system;
 Loss of approximately $14,000 of Transit Fund contribution to the General Fund through City’s cost allocation plan, which would be offset by increases to other enterprise funds;  An approximate annual $15,000 increase in STA allocation through a consolidation AGENDA NO: 9.b
MEETING DATE: September 10, 2024

incentive;
 Avoidance of potential loss of an estimated $20,000 to $30,000 annually of STA funding for non-compliance with state farebox recovery ratio requirements;  An elimination of an estimated $69,692 annually for Public Works Department staff time focused on transit operations but paid for by the General Fund.

The City, as the transit program administration contracting operations to RTA, would engage RTA annually for fiscal year budgeting and would develop local match requirements, as needed and paid through the funding sources described above, for capital purchases. Any surplus funding still held by the City after this process could be either saved as fund reserve or allocated towards non-public transit projects, such as bike path, pedestrian, and road maintenance improvements.

Below is a comparison of estimated City-managed and RTA-managed annual transit operating revenues and costs.

City Program Revenue RTA Program Revenue
LTF $368,423 LTF $368,423
STA $60,988 STA $75,988
Farebox $17,000 Farebox $17,000
Advertising $0 Advertising $12,000
Total $446,411 Total $473,411
City Program
Expenditures
RTA Program
Expenditures
MV - Operating $265,420
RTA -
Operating $392,320
MV - Admin $90,495 RTA - Admin $66,690
City –
Operating* $46,028 City – Admin $14,000
City – Admin $27,797 Total $473,010
Total $429,740
City Program Balance RTA Program Balance
Total $16,671 Total $401
*Does not include an estimated $69,692 for PW Director and Management Analyst time to administer system funded by General Fund.

BACKGROUND
MBT History
In 1977, the City began operating a Dial-A-Ride service. The Dial-a-Ride service was replaced in October 2010 with the current deviated fixed route system (fixed route with ability to deviate off route for Dial-A-Ride trips) after recession-related reductions in State funding necessitated adaptations in how the service was provided.

In 1994, the City also began operating a seasonal trolley fixed route service. Over time, trolley service expanded first to two, then to three routes that came from recommendations from a parking management plan study and Short-Range Transit Plan update. During the pandemic, service levels changed for the trolley with cuts in the number of service routes and days operated,

and for the deviated fixed route, Saturday service was stopped. Currently, the City operates two Saturday-Sunday trolley routes that see an average daily ridership of 110 riders per day and a single bus Monday-Friday deviated fixed route service that sees an average daily ridership of 47 riders per day.

Current MBT Administration and Management
The MBT program is administered by the Public Works Department, primarily through the Management Analyst and Public Works Director roles. The City currently receives no state funding allocation funding for this work. These tasks are primarily being funded by the General Fund and amount to approximately $69,692 annually. They include:
 operations management
 legislative analysis
 marketing
 service planning
 vehicle maintenance
 grant acquisition
 capital procurement
 budget development
 fiscal monitoring
 reporting to federal, state, and local
agencies
 staff report writing
 presentations to City Council/PWAB
 public outreach
Further, a variety of roles dispersed across City departments require administrative involvement in MBT affairs. These roles include, but are not limited to, the Public Works Mechanic, Senior Administrative Analyst, Finance Manager, Finance Director, City Clerk, City Attorney, and City Manager. The City receives currently transfers $27,797 annually from the Transit Fund to the General Fund to recoup these staff costs.

The City also contracts with a vendor, MV Transportation (Dallas, TX) to provide bus drivers and dispatch services. The contract for Transit service is $45.37/vehicle service hour and $6,484/month and for Trolley service is $45.37/vehicle service hour and $2,537/month and for 2024 is estimated to be $265,000 annually. Additional operating costs, such as fuel and other maintenance related costs, amount to approximately $46,000 annually.

FAREBOX RECOVERY RATIO
As noted previously, the City uses LTF and STA monies from the state to operate MBT. One of the requirements from the State to receive these funds is to meet a 10% farebox recovery ratio.

This means MBT farebox revenue must be at least 10% of the operating costs. For FY24-25, the MBT farebox recovery ratio is estimated at 4.6%. If the ratio continues to be under 10% for the next two fiscal years, the City will be subject to penalties between $25,000 to $50,000 or more and increasing annually in FY26-27 unless other measures are taken.

In order to remedy MBT’s farebox recovery ratio non-compliance, as currently administered, the City will need to either consider reducing services or increasing fares (or a combination of both).

This will likely result in ridership reductions and therefore decreased fare revenue, all of which compounds MBT’s challenges in meeting the required farebox ratio.

City staff has reviewed and analyzed potential solutions to address the underlying farebox recovery deficit of approximately $26,000 seen in MBT. These solutions fall into three categories:
increasing revenues, decreasing costs, or consolidating the system into a larger system, such as RTA.

To decrease costs, the City Council could:
 Cut unproductive services; and/or
 Seek a less expensive third-party contract.

A cursory evaluation of cutting unproductive service hours finds that it’s estimated a decrease of a minimum of 7 hours per week (approximately 1.5 hours per day) for the year-round service would need to occur if no other actions are taken. The less productive hours are at the beginning and end of service day, which is during commute time and those riders are not flexible when they can ride transit so they can’t shift to another time in the day. As such, there would be a decrease in ridership and loss of fare revenue that would outweigh the operating costs savings.

It is unlikely the City could obtain a less expensive third-party contract as the cost for various expenses tend to increase each year, not decrease, due to employment contract requirements, cost of living adjustments, and inflation (e.g. salaries/benefits for drivers and support staff, insurance, uniforms, office supplies, training and safety supplies, drug and alcohol testing services etc.).

On the other hand, the City Council could raise revenues to address the farebox issue by,  Raising fares;
 Increasing advertising revenue;
 Increasing marketing of service to increase ridership.

Higher fares can lead to some riders seeking other forms of transportation, such as driving or walking. As such, raising fares could negatively impact overall fare revenue if the loss of riders outweighs the additional fares generated from the increase. Additionally, there are affordability issues as higher fares can disproportionately affect lower income riders who may rely more on public transit than other riders who are not as price sensitive.

Advertising revenue generated from placing ad signs on transit vehicles is an allowable non-fare revenue that can be included when calculating farebox ratio. The City placed ad signs on the trolleys before the pandemic. At that time, the City had an MOU with the Community Foundation where that organization garnered advertisers for the seasonal Trolley service and split the revenue generated 50%/50% with the City. The Foundation used the funds to offer grants to lowincome families so they could access City recreational programs. This generated between $5,000-6,000 a year for the City. However, during the pandemic, the City halted the advertising program and the Community Foundation withdrew from handling the advertising program last Trolley season to focus more on their programs. Since then, staff has not had capacity to take over the ad program. Given that MBT’s farebox recovery deficit is $26,000, restarting an advertising campaign would not solve the issue.

Increasing marketing of MBT has the potential to increase ridership. However, the increased costs associated with any new marketing efforts may outweigh the fare revenue generated from new riders. Developing a new marketing program would also result in a reduction of staff time for other projects/tasks currently being worked on leading to delays in completion, or not being able to them at all.

The final option to address the farebox recovery non-compliance issue is to consolidate MBT into a larger transit system, i.e., RTA. Consolidation of the MBT is a realistic solution because the state requirement applies to the larger system as a whole rather than the system’s individual parts. RTA can leverage its strong farebox ratio to absorb MBT’s lower farebox ratio.

RTA CONSOLIDATION PROPOSAL
After a staff meeting between the City and RTA, RTA staff conducted an internal review of requested financial and operational data provided by the City for its local year-round and seasonal Transit and Trolley services. RTA staff then provided the City with a memorandum describing a potential operations and maintenance scenario, noting RTA could be capable of assuming

operation and maintenance of MBT as early as June 2025 should both the Morro Bay City Council and RTA Board of Directors approve consolidation at a future agendized meeting.

The proposed agreement between the City and RTA would be for a period of ten (10) years and allow for the termination of the agreement by either party without cause. It would include a scope of service identifying the service level and fare structure at the time RTA takes over operating the MBT, as well as identify Transit vehicles and equipment whose ownership of, and responsibility for maintenance and replacement, would be transferred to the RTA. The City would retain the ability to adjust bus schedules, bus routes, and fare structure.

The agreement would also permit RTA to directly submit an annual TDA claim to the San Luis Obispo Council of Governments (SLOCOG) for City’s local transit services. The claim amount would not exceed the RTA’s actual cost of operating MBT. These funds would be accounted for separately from other RTA transit services it operates. The agreement would further be pending and conditional upon any required meet and confer or applicable union negotiations.

Transit Fund projects fully funded, but not yet completed by the time the RTA begins operations would be identified and completed by the City with technical assistance from the RTA as appropriate. All non-committed monies remaining in the Transit Fund would be transferred to the RTA by the effective date of the agreement to be used for MBT operations, service planning, and capital projects.

RTA staff would meet at least once a year with City staff to review the year to date operating and financial data and scope of services prior to developing the budget for the next year. New or discretionary funding sources that RTA could seek would also be discussed, and if successfully acquired, would reduce the amount of LTF needed for MBT operations, service planning, or capital projects. Suggested changes and/or service direction would be incorporated into budget development. The proposed budget would be submitted to the City for adoption. Additionally, quarterly updates would be provided to City staff with operating statistics and quarterly TDA reporting to the San Luis Obispo Council of Governments that includes operating costs, fare information, and administrative cost breakdown.

Based on RTA review of current MBT service levels for transit and trolley services, the RTA has proposed a total administration, operations, and maintenance cost of $459,010. This cost estimate was developed using RTA’s adopted FY24/25 budget for Route 15 service delivery costs for labor, maintenance, fuel, and insurance because of the similarities between both services in terms of service structure (deviated fixed route) and type of vehicle used (small cutaway bus).

RTA noted the gross figure would need to be adjusted by inflation for FY25/26. Much of the cost difference between MBT’s current operations and the RTA proposal are due to increased driver wages/benefits and administrative resources for staff training, operations management, mechanic, marketing, finance, grants, procurement, schedulers, and other office overhead.

The City’s Transit Fund would still be used for transit capital projects, but RTA would leverage their larger size and staff capacity to seek additional grants to supplement funding. Over the past 10 years, projects have included required local matches from the Transit Fund to grants for seven bus and trolley procurements, City Park Transit Hub project, MBT route signage and information display cases, Short Range Transit Plan update, Triennial Performance audits, annual fiscal audits, replacement transit office furniture, Black Hill Repeater equipment and vehicle radio replacements, farebox vault replacements, and bike racks for transit vehicles.

Projects being planned for over the next few years include automated fare collection system, automated vehicle locators (AVL), zero-emission bus electrification, charging infrastructure and

vehicle procurement. These projects come from a combination of Short-Range Transit Plan recommendations designed to improve efficiency and effectiveness of transit service or State regulations. Projects related to the State mandating transition to zero-emission bus technology will require a large capital investment for the purchase of new vehicles and infrastructure upgrades (including building retrofitting and electrical grid upgrades). Under the consolidation proposal, all of the above-mentioned projects would be managed by RTA staff.

Transit Fund monies have occasionally been allocated to City road projects. From FY18/19 through FY24/25, of the $2.6 million in LTF funds for local distribution to transit and/or non-transit uses the City received, 97% was allocated to local transit and 3% was allocated to street paving.

This amounts to approximately $11,143 per fiscal year. Under RTA consolidation, the City could still apply surplus LTF funds towards paving after all transit needs are met as determined by SLOCOG.

Impacts for Riders and Bus Drivers
Based on staff review, MBT consolidation into the RTA would have positive impacts for riders.

There would be improved customer experience as there would be a single source for transit service information (route maps, website, fare passes, etc.) and rider policies. Riders would no longer have to look at two different systems to get information about MBT and RTA services, instead it would be one location.

Additionally, there would be consistency of fare media and payments systems. Riders would no longer have to use separate passes for each service, making riding between systems easier.

Additionally, service coordination would be improved with better integration of service schedules leading to enhanced connectivity and reduced wait times between the local and regional services.

Finally, consolidation into the RTA would have positive impacts for MBT drivers. There would be an increased driver wage scale and opportunity for drivers to have full time employment/benefits as drivers would be able to add other RTA transit service shifts to their schedule.

Additionally, the driver backup pool would be increased as the system would have access to driver resources from the RTA system. Currently, there are no back up drivers for MBT to handle various leave time situations that come up (sick, vacation, medical). This leaves the manager, when available, to fill in as a driver, resulting in less time to perform management duties. This places additional stressors on drivers and the manager who may forgo taking needed time off so that service doesn’t have to be cancelled. Currently, MBT does occasionally cancel service because of driver availability issues.

Proposed Consolidation Implementation Timeline
Sept. 2024 Council meeting

1. Present framework to consolidate MBT into the RTA;

2. If Council authorizes consolidation, approve amendment with MV extending current agreement term.

Sept. 2024 RTA Board of Directors – Executive Director provides report on the possible MBT consolidation into the RTA.

If Council directs staff to consolidate:

Jan. 2025 Council and RTA Board of Directors (at separate agency meetings) – authorize execution of consolidation agreement between City and RTA.

March 2025 RTA to begin interviewing incumbent MV Transportation employees for possible

hiring into RTA;
April 2025 RTA to finalize training modules and begin training staff for operations and maintenance of MBT services.
6/1/25 RTA to start operating Morro Bay Transit services.

Should the City Council not authorize moving forward with consolidation, the City would need to conduct a Request for Proposals for driver and dispatch services and award of a new contract.

The current contract the City holds with MV Transportation for these services has been in place since 2015 with five one-year extensions and expires December 31, 2024. To complete the RFP process and bring an award of contract to the Council for approval, the City would need to extend the current agreement beyond the current expiration date.

PUBLIC WORKS ADVISORY BOARD (PWAB)
Staff presented to the PWAB at its August 21, 2024, meeting information about the RTA consolidation proposal and its impact on riders. There was consensus support from the Board to consolidate MBT into the RTA system.

ATTACHMENT(S)
None

Prepared By: RH_______ Dept Review: ______
City Manager Review: __YK_____ City Attorney Review: _MCH_____ TO: Honorable Mayor and City Council DATE: September 3, 2024

FROM: Yvonne Kimball, City Manager
PREPARED BY: Rachael Hendricks, Human Resources/Risk Manager SUBJECT: Approval of Updated Harbor Vitality Director Classification and Job Description Revised Pay Schedules, and Amendment to Compensation and Benefits Resolution for City Department Heads to Reflect Updates

RECOMMENDED ACTION

1. Adopt Resolution No. 61-24 updating the Harbor Director Job Description to Harbor Vitality Director; and

2. Adopt Resolution No. 62-24 revising Fiscal Years 24-25, 25-26, and 26-27 pay schedules, decreasing the salary for the Harbor Vitality Director to align with other Morro Bay non-sworn director positions; and

3. Adopt Resolution No. 63-24 amending the previously adopted maximum compensation and benefits for certain City department head positions.

ALTERNATIVES
The Council may choose not to adopt the new Harbor Vitality Director job description or salary range and provide alternative direction to staff.

FISCAL IMPACT
Expenses associated with a Director position is in the FY 24/25 budget. Savings of approximately $3,557 per year to align the Harbor Vitality Director’s salary to that of other non-sworn Directors.

BACKGROUND/DISCUSSION
The Harbor Director's retirement in July has allowed the City to reassess this critical role's structure, duties, and compensation. Given the diverse functions the Harbor Dept. performs daily, the concept of changing the department structure to eliminate the director position was carefully considered.

However, after thorough evaluation, staff have concluded that maintaining the department’s integrity under the leadership of a single director overseeing all functions remains the most efficient and effective approach. Following a review of the job description, discussions with community members, city staff, and evaluation of the City’s needs, it becomes apparent that modifications of the current job description and pay for the Director position is warranted. As a result, staff have modified the job description to clarify existing duties and add additional responsibilities focusing on economic development and real estate, while ensuring internal equity among City staff. The Harbor Vitality Director modifies the existing Harbor Director classification to capitalize on the current team's strengths to lead many of the department's operations while addressing the need to enhance harbor AGENDA NO: 9.c
MEETING DATE: September 10, 2024

vitality. While the key responsibilities expected of a director remain, such as staff supervision and development, strategic planning, budget development, community engagement, harbor related infrastructure planning, the key areas of modification to the Harbor Vitality Director’s job description are:

Economic Vitality Focus: The City of Morro Bay’s harbor contributes significantly to the City’s economy through tourism, fishing, commercial activities, and real estate. Adding economic development responsibilities to the Harbor Vitality Director role reflects the increasing importance of strategic economic planning in harbor management. By integrating these duties, the City can better position itself to maximize the harbor's economic potential and enhance the area's overall vitality.

Strategic Real Estate Management: The Harbor Vitality Director will oversee real estate functions, ensuring that the harbor’s assets are utilized efficiently and in ways that align with broader economic goals. This includes managing and negotiating leases and working closely with potential investors and developers.

Tourism and Business Attraction: The harbor is a major attraction in Morro Bay, drawing visitors and supporting local businesses. By adding economic development to the Harbor Vitality Director’s responsibilities, the City ensures a coordinated effort to enhance the harbor’s appeal, attract more visitors, and support local enterprises.

The other notable revision is the Harbor Vitality Director Salary Range salary range. The Harbor Director has been in the same salary range as the Police and Fire Chief. However, with the retirement of the prior Harbor Director, the City reevaluated internal equity and recommends aligning the Harbor Vitality Director with other non-sworn directors. The Harbor Vitality Director will be placed in the same salary range as the following director classifications: Community Development Director, Finance Director, and Public Works Director.

CONCLUSION
City Staff recommends approving the updated Harbor Vitality Director job description, adopting the revised pay schedules for Fiscal Years 24/25, 25/26, and 26/27, and amending the resolution establishing the maximum compensation and benefits for City Department Heads to capture the updated job title and compensation. Should the Council approve the new Harbor Vitality Director’s job description and associated pay scale, the recruitment process will begin immediately aiming to fill the vacancy by January 2025.

It should be noted that discussions of other harbor positions accompanied the evaluation of the Director position. However, unlike the Director, most positions at the Harbor Department are represented positions which require a separate process before they can be discussed at a council meeting. Additionally, the Fire Chief has been performing the Interim Harbor Director role with a focus on updating procedure and process related to the Department’s first responders’ functions.

ATTACHMENT(S)

1. Resolution No. 61-24 approving updated Harbor Vitality Director Classification and Job Description

2. Resolution No. 62-24 adopting updated FY 24-25, FY 25-26, and FY 26-27 Pay Schedules

3. Resolution No. 63-24 adopting Amendments to Previously Adopted Maximum Compensation and Benefits for Certain City Department Head Positions

01181.0004/762865.1
RESOLUTION NO. 61-24

RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA,

APPROVING UPDATED HARBOR VITALITY DIRECTOR CLASSIFICATION

AND JOB DESCRIPTION

T H E C I T Y C O U N C I L
City of Morro Bay, California
WHEREAS, the Council desires to approve retitling the “Harbor Director” job classification to “Harbor Vitality Director”, set a compensation range for the classification, and adopt an updated job description for the position, which will continue to serve as Director of the City’s Harbor Department.

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

1. The unrepresented full-time classification of “Harbor Director” is hereby retitled to “Harbor Vitality Director”. The classification will continue to be included within the City’s Unrepresented Department Head Group and provided benefits pursuant to the then-current City Council resolution establishing compensation and benefits for certain City department head positions. The updated job description for this classification, attached hereto, is hereby adopted. The initial annual compensation for the Harbor Vitality Director classification shall be as follows:

Step 1 Step 2 Step 3 Step 4 Step 5
157,310 165,173 173,451 182,125 191,235
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 10th day of September 2024 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

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

1 HARBOR VITALITY DIRECTOR

DEFINITION
Under the administrative direction of the City Manager, the Harbor Vitality Director will plan, organize, and direct harbor operations and economic development initiatives. This role involves overseeing Harbor Department activities and functions such as property and lease management of Embarcadero lease sites, providing administrative oversight of Harbor Patrol and harbor business functions, addressing infrastructure needs, overseeing oceanfront-related federal, state, and local initiatives, and fulfilling other related duties. The Harbor Vitality Director will leverage new technologies and ideas to enhance service delivery, streamline operations, and increase revenue while managing contracts, drafting reports, and conducting financial analyses.

Effective communication with diverse stakeholders, including the boating community, commercial fishing community, environmental groups, developers, lessees, City Council members, the advisory committee, employees, and the community is crucial.

ESSENTIAL DUTIES & RESPONSIBILITIES

 Plans, manages, organizes, and directs the operations and business activities of the Harbor Department.
 Develop and implement policies, procedures, and strategies to ensure efficient harbor operations.
 Negotiates and manages complex real property leases, leads the property management program, and negotiates long-term leases.  Plans for the harbor's long-term needs, considering environmental, maritime, maintenance, safety, commercial, and economic factors.  Implements and plans for future public infrastructure and capital improvement projects needed to ensure harbor vitality.
 Advises other City departments and consultants on lease compliance, maintenance, and language.
 Administers and manages the annual Harbor operating budget; manages operations to achieve goals within available financial resources.
 Consult with governmental agencies, other staff members, and the public; attend meetings, make presentations, and recommend departmental-related activities to appointed and elected officials.

2  Prepares and manages grants, formal bid specifications, and proposal requests.
 Reviews and designs long-range plans to meet the harbor's needs, addressing environmental, navigation, fishing, commerce, and other related coastal concerns.
 Ensures conformance with the City’s clean marina program and bay water quality efforts and coordinates and works with the National Estuary Program/Comprehensive Conservation Management Plan.  Reviews and analyzes legislation affecting the City or the harbor, determining impact and recommending appropriate action.  Assists and coordinates with other agencies, such as State Parks, the Army Corps of Engineers, the National Estuary Program, the California Coastal Commission, and the Marine Interest Group.

Examples of Economic and Real Estate Development Duties:
 Leads economic development efforts for the City, focusing on the Embarcadero and harbor areas.
 Performs City real estate transactions, including site characterization, appraisal, title review, environmental and geotechnical investigations, relocation, purchase and sale agreements, mitigation agreements, and site preparation.
 Prepares lease specifications and reviews applications for conditions for use of lease and sub-lease sites and lease amendments.
 Ensures leaseholder compliance with lease terms, contract-related performance, and delivery requirements and remedies non-compliance.  Coordinates the City’s efforts to strengthen the economic vitality of the harbor and City.
 Identifies and pursues opportunities for business growth, tourism development, and increased revenue generation. Implements initiatives that benefit the City.
 Analyzes the economic feasibility of potential projects and makes recommendations.
 Serves as liaison to various federal, state, and local public agencies, developers, contractors, professionals, and property owners.  Fosters relationships with citizens, business owners, lessees, and developers to promote economic vitality.
 Performs other duties as required.

QUALIFICATIONS
Knowledge of:
 Public policy and political process, especially as it relates to federal, state,

3 county, and municipal governments.
 Commercial lease and contract negotiation, real estate management, and municipal finance.
 Principles of economic or real estate development, city planning theory and practice.
 Environmental regulations, project management, and government operations.
 Principles and basic practices of harbor management, maritime law, and economic development.
 Best practices in customer service, public relations, and community engagement.

Ability to:
 Manage multiple complex projects and departmental operations efficiently.
 Negotiate and manage property agreements and economic development initiatives.
 Manage and perform financial analysis and economic studies of real property.
 Plan for future public infrastructure and capital improvement.  Communicate effectively both orally and in writing.
 Build and maintain effective working relationships with governmental agencies, businesses, and the public.
 Be comfortable with ambiguity and uncertainty, with the ability to adapt nimbly and lead others through complex situations.
 Work irregular hours for public meetings and events, including evenings.

Education and Experience:
 A bachelor's degree in business, law, public policy, public administration, economic development, or a closely related field is required. A master's degree in a relevant field is highly desirable; AND
 Six or more years of progressively responsible experience in harbor management, economic development, real estate asset management, government operations, or a comparable field, with at least three years in a management capacity; OR
 An equivalent combination of education and experience.  Valid California driver’s license or ability to obtain it within 30 days of hire.

The Fine Print
The job description does not constitute an employment agreement between the employer and employee and is subject to change as the employer's needs and job requirements change. 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.

4 PHYSICAL DEMANDS
The physical demands described here represent those that an employee must meet to perform the essential functions of this job successfully. Reasonable accommodations may be made to enable individuals with disabilities to perform these functions.

Work is performed mainly in office settings. Some outdoor work, such as kneeling, walking and riding in boats, is required to inspect various land use developments, harbor assets and construction sites. Handeye coordination is necessary to operate computers and different pieces of office equipment. The employee is frequently required to talk or hear, sit, use hands to finger, handle, feel, or operate objects, tools, or controls, and reach with hands and arms. The employee must occasionally lift and/or move up to 50 pounds.

WORK ENVIRONMENT
While performing the duties of this job, the employee works primarily in office settings, with occasional work in outside weather conditions. The employee may be exposed to wet and/or humid conditions or airborne particles. The noise level in the work environment is usually quiet in the office and moderate to loud in the field.

RESOLUTION NO. 62-24

RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA,
SUPERSEDING AND REPLACING RESOLUTION NO. 48-24 AND APPROVING THE UPDATED FISCAL YEAR 2024-2025, FISCAL YEAR 2025-26, AND FISCAL YEAR 2026-27

CITY-WIDE PAY SCHEDULES

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 the City Council fix compensation of all appointive officers and employees by resolution or ordinance; and WHEREAS, Morro Bay Municipal Code Title 2, Chapter 2.20, Section 2.20.020 requires that the salaries and compensation of officers and employees of the City shall be as fixed and determined by resolution of the City Council, after due consideration of employees’ bargaining rights, as established by the Meyers-Milias-Brown Act, except those fixed in this chapter; and WHEREAS, the California Public Employees’ Retirement System (CalPERS), has requested all CalPERS employers list their employee compensation on one pay schedule 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 City Council has approved retitling of the “Harbor Director” job classification to “Harbor Vitality Director” and updated pay scale for this classification, and desires to include this classification in the Fiscal Year 2024-25, Fiscal Year 2025-26, and Fiscal Year 2026-27 pay schedules; and
WHEREAS, the formal approval of the updated and revised pay schedules requires that they are duly approved and adopted by the City Council by resolution, and the 2 CCR 570.5 regulation requires the adoption of a revised and updated Pay 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.

NOW, THEREFORE, BE IT RESOLVED the City Council of the Page 84 of 111 City of Morro Bay does hereby:

1. Resolution No. 48-24 shall be superseded and replaced by this resolution effective September 10, 2024, and

2. The Combined Pay Schedules, attached hereto as Exhibit A-C shall be effective September 10, 2024.

PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 10
th day of September 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 09/10/2024
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 09/10/2024
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 UTILITY DIVISION SUPERVISOR 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 09/10/2024
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 09/10/2024
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 VITALITY DIRECTOR EXEC 75.63 79.41 83.39 87.56 91.94 157,310 165,173 173,451 182,125 191,235 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 97.09 99.52 102.00 104.55 107.17 201,947 207,002 212,160 217,464 222,914

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 UTILITY DIVISION SUPERVISOR 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 HARBOR VITALITY 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 101.94 104.50 107.10 109.78 112.53 212,035 217,360 222,768 228,342 234,062

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 UTILITY DIVISION SUPERVISOR 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 HARBOR VITALITY 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 107.04 109.73 112.46 115.27 118.16 222,643 228,238 233,917 239,762 245,773

01181.0004/301248.2
RESOLUTION NO. 63-24

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 Vitality 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 September 10, 2024 attached as Attachment A.

Resolution No. 63-24

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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

Resolution No. 63-24

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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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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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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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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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(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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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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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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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 relocation, and up to $10,000 for out of state relocation. Before 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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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 10th day of September 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 SEPTEMBER 10, 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 VITALITY DIRECTOR

157,310

165,173

173,451

182,125

191,235
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

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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

HARBOR VITALITY 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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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

HARBOR VITALITY 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