CITY OF MORRO BAY
City Council Regular Meeting Agenda
Tuesday, January 28, 2025, 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.
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Zoom webinar link:
https://us02web.zoom.us/j/82722747698?pwd=aWZpTzcwTHlRTk9xaTlmWVNWRWFU QT09
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• 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:
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Those desiring to speak are asked to complete a speaker slip, which are located at the entrance, and submit it to the City Clerk. However, speaker slips are not required to provide public comment. •
When recognized by the Mayor, please come forward to the podium to speak. Though not required, it is helpful if you state your name, city of residence and whether you represent a business or group. Unless otherwise established by the Mayor, comments are to be limited to three minutes.
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All remarks should be addressed to Council, as a whole, and not to any individual member thereof.
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The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or staff.
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Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering.
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Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting.
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Your participation in City Council meetings is welcome and your courtesy will be appreciated.
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The Council in turn agrees to abide by its best practices of civility and civil discourse according to Resolution No. 07-19.
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7. CONSENT AGENDA
Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. The public will also be provided an opportunity to comment on consent agenda items.
Recommended Action
Approve consent agenda items 7.a through 7.b as submitted.
7.a Approval of Minutes
(City Clerk)
Recommended Action
Approve as submitted.
1. January 14, 2025 - Regular Council Meeting 5
2. January 14, 2025 - Special Closed Session Meeting 14
7.b Authorization to send a letter to San Luis Coastal Unified School District regarding the Morro Elementary School site
16 (Interim City Attorney)
Recommended Action
Approve authorization to send the attached letter to the San Luis Coastal Unified School District (“District”) requesting the District not take any action to sell or dispose of the Morro Elementary School site for 120 days to allow the community to create a financial plan to purchase the property.
8. PUBLIC HEARING ITEMS
8.a Uphold an appeal by Paul Gillen and reserve the Planning Commission's denial of Conditional Use Permit CUP24-04, and approve a revised project for the demolition of existing structures and redevelopment of Lease Sites at 431, 451, and 495 Embarcadero Rd 18 (Community Development)
Recommended Action
Adopt Resolution No. 04-25 (Attachment 1) to uphold the Applicant’s appeal, accept the Applicant’s Revised Project (January 2025), and reverse the Planning Commission’s denial of CUP24-04, based on the findings and conditions contained therein.
8.b Request to consider an Urgency Ordinance Prohibiting the Application, Acceptance, Approval, Commencement, Establishment, Operation, Relocation, or Expansion of Grid-Scale Battery Energy Storage Systems (BESS) within the city limits
71 (Community Development)
Recommended Action
Adopt by number and title only, with further reading waived, Urgency Ordinance No. 668, entitled “An Urgency Ordinance of
1.
the City Council of the City of Morro Bay, California, Imposing a Prohibition on the Application Acceptance, Approval,
Commencement, Establishment, Operation, Relocation or
Expansion of Grid-Scale Battery Energy Storage Systems
(BESS) within the City Limits during the Pendency of the City’s Review and Adoption of Regulations of Such Uses; and Finding the Action to be Exempt from CEQA,” prohibiting applications for grid-scale Battery Energy Storage Systems (BESS) facilities within Morro Bay city-limits for an initial period of 45 days (4/5 vote required).
Direct staff to return to Council at the regularly scheduled February 25, 2025 Council meeting with an Ordinance
extending the BESS urgency ordinance to January 28, 2027.
2. 9. BUSINESS ITEMS
9.a Update on Fiscal Year (FY) 2023-24 and 2024-25 City Council Goals and Action Items
79 (City Manager)
Recommended Action
Receive a progress report on the City Council goals and action items and provide direction on remaining items.
10. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS
11. ADJOURNMENT
The next Regular Meeting will be held on February 11, 2025.
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
January 14, 2025, 5:30 p.m.
Veterans Memorial Hall, 209 Surf St., Morro Bay, CA
Members Present: Mayor Carla Wixom
Council Member Cyndee Edwards
Council Member Jeff Eckles
Council Member Zara Landrum
Council Member Bill Luffee
Staff Present: City Manager Yvonne Kimball
Interim City Attorney Robert Schultz
City Clerk Dana Swanson
Finance Director Emily Conrad
Community Development Director Airlin Singewald
Police Chief Amy Watkins
Fire Chief Dan McCrain
Harbor Vitality Director Chris Munson
_____________________________________________________________________
1. ESTABLISH QUORUM AND CALL TO ORDER
Mayor Wixom called the meeting to order at 5:33 p.m. with all members present.
2. MOMENT OF SILENCE
3. PLEDGE OF ALLEGIANCE
4. REPORTS
4.a Closed Session Report
https://youtu.be/WKs8Vfb2uhI?si=Hn_ftlpP8oyMnWfu&t=128
Interim City Attorney Schultz announced the Council met in closed session to discuss property negotiations related to 231 Atascadero Road and Lease Sites 53-56/53W-56W; no reportable action was taken pursuant to the Brown Act. A third item, Public Employment of the City Attorney, was discussed with no reportable action taken.
4.b Mayor and Councilmembers' Reports, Announcements and Presentations
https://youtu.be/WKs8Vfb2uhI?si=GYpeg_SpMYERZiq6&t=191
2 4.c City Manager Reports, Announcements and Presentations https://youtu.be/WKs8Vfb2uhI?si=WqzNTwtGbNI8ETbV&t=611
4.d Subcommittee Reports - Verbal Update of Current Subcommittee Activities
https://youtu.be/WKs8Vfb2uhI?si=3gmArpw20U_GvRSH&t=1301 a. Water Reclamation Facility & Morro Bay / Cayucos Sanitary District JPA
b. Morro Bay Power Plant (Vistra)
c. Offshore Wind Energy
d. Downtown Design District
5. RECOGNITION AND PRESENTATIONS
5.a City of Morro Bay Years of Service Awards
https://youtu.be/WKs8Vfb2uhI?si=E4q6So1INLMO--_S&t=1501
5.b Proclamation Recognizing Big Brothers Big Sisters during National Mentoring Month
https://youtu.be/WKs8Vfb2uhI?si=rIJ8QDTZT_Dpr50w&t=1842
6. PUBLIC COMMENT
https://youtu.be/WKs8Vfb2uhI?si=XGtZftY0a4nj5oR8&t=2154 John DiNunzio, SLOCOG, announced a new planning process, Morro Bay Estuary Climate Resiliency Transportation Study, is underway. The Study focuses on sea level rise and opportunities to improve mobility options along South Bay Blvd., State Park Road, and Turri Road. Resources and materials are available at www.sbbclimateplan.org.
Lucy Conklin, Los Osos, commented on the potential sale of Morro Elementary, emphasizing the importance of programs currently offered there.
David Smith, Morro Bay, spoke in support of Family Partnership Charter School operating at Morro Elementary.
Nicole Dorfman, REACT Alliance, announced National Day of Action "End It!" on Saturday, January 18th, at 12 noon at Morro Rock Parking Lot. Shy Gardner, Los Osos, urged the City to consider the importance of education as it relates to the potential sale of Morro Elementary. David Yohe, Morro Bay, commented on the need for a cease fire agreement.
3 Joan Solu, Morro Bay, shared historical information regarding Morro Elementary and urged the City to explore ways to preserve that property. Jodi Petersen, Morro Bay, shared her understanding the land where Morro Elementary was built had been donated by the Quintana family was required to remain a school or returned to the family.
Semu Torres, Los Osos, requested the City work with School District to explore alternatives that would preserve the programs currently offered there.
Garry Johnson, Morro Bay, announced the annual Morro Bay Bird Festival January 16 - 20.
True Moore enjoys attending Family Parthership Charter School and hopes it will remain at Morro Elementary.
Debbie Highfill, Morro Bay, spoke regarding Morro Elementary, hoping the community would be allowed time to explore grants and fundraising opportunities.
James Moore spoke in support of retaining the Morro Elementary School site.
Monte Moore shared how much he enjoys attending Family Partnership Charter School.
Michelle Leicester-Cadaret, Morro Bay, commented on wildfires burning in Los Angelees and expressed safety concerns about wood burning firepits, particularly in north Morro Bay.
Eloise Crow commented in support of Family Partnership Charter School. Madison Treiber, Morro Bay, spoke in support of the Montessori school at Morro Elementary.
Nico Torres hoped the Charter School would be allowed to stay at Morro Elementary.
Caleb Crow shared he has attended the Charter School for 3 years and would love it to stay.
Kiernan Cottle, Morro Bay, offered comments.
Kellie Reamer hoped there would be a way to preserve Morro Elementary. Margaret Carman, Morro Bay, appealed to the School Board to preserve Morro Elementary, commented on offshore wind, and encouraged families to attend the REACT Alliance event at the Rock Saturday, January 18. Linda Donnelly, Morro Bay, asked that the community be given time to develop a plan to preserve Morro Elementary.
4 Vita Miller, Los Osos, urged the City to request an extension that would allow time to develop a fundraising plan to preserve Morro Elementary. Judy Setting, Morro Bay, encouraged the City and community members to appeal to the School District in an effort to save Morro Elementary. Nattalia Merzoyan, Morro Bay, hoped the community would be allowed time to explore ways to retain Morro Elementary.
An unnamed resident shared her appreciation for the Montessori School operating at Morro Elementary and hoped it could remain at that location.
End of public comment.
7. CONSENT AGENDA
https://youtu.be/WKs8Vfb2uhI?si=CIWb9y3FVS0RaoK-&t=5560 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.
Betty Winholtz, Morro By, raised a question regarding Item 7.d. and, regarding Item 7.e., opined the CMC work crews did not have the experience necessary for tree pruning.
End of public comment.
Staff responded to questions raised during public comment.
Council Member Eckles pulled Item 7.e. Council Member Landrum pulled Item
7.d.
Motion by Mayor Wixom
Seconded by Council Member Luffee
Approve consent agenda items 7.a, 7.b., 7.c. and 7.f as submitted.
Ayes (5): Mayor Wixom, Council Member Edwards, Council Member Eckles, Council Member Landrum, and Council Member Luffee
CARRIED (5 to 0)
7.a Approval of Minutes
Approve as submitted.
a. December 10, 2024 - Special Council Meeting
b. December 10, 2024 - Regular Council Meeting
c. December 16, 2024 - Special Closed Session Meeting
d. December 19, 2024 - Special Council Meeting
5 7.b Approval of Proclamations
a. Proclamation recognizing Big Brothers Big Sisters of San Luis Obispo County during the month of January as National Mentoring Month
7.c Adoption of Resolution No. 01-25 Establishing the 2025 City Council Meeting Calendar and Budget Development Schedule
Adopt Resolution No. 01-25 approving the 2025 City Council Meeting Calendar and Budget Development Schedule.
7.d Approval of Agreement for Consolidation of Morro Bay Transit Services into San Luis Obispo Regional Transit Authority https://youtu.be/WKs8Vfb2uhI?si=fN3aO5ksMk4j417a&t=5858 Management Analyst Burlingame and Jeff Straw, RTA Executive Director, responded to Council inquiries.
Motion by Council Member Landrum
Seconded by Council Member Edwards
Approve the Agreement for Consolidation of Morro Bay Transit Services (the Agreement) into San Luis Obispo Regional Transit Authority (RTA), after Interim City Attorney final review and any non-substantive revisions, and authorize the Mayor to execute the Agreement. If following Council’s approval of the Agreement at this meeting there are any substantive changes negotiated, such revisions will be re-presented to the Council for approval.
Ayes (5): Mayor Wixom, Council Member Edwards, Council Member Eckles, Council Member Landrum, and Council Member Luffee CARRIED (5 to 0)
7.e Adopt Resolution No. 02-25 Authorizing the City Manager to Execute an Agreement with the California Department of Corrections and Rehabilitation for Inmate Work Crews
https://youtu.be/WKs8Vfb2uhI?si=obSOEAe_Duw2N6Zl&t=6285 Maintenance Division Manager Mendoza responded to Council inquiries.
Motion by Council Member Eckles
Seconded by Council Member Landrum
Adopt Resolution No. 02-25 authorizing the City Manager to execute an agreement with the California Department of Corrections and Rehabilitation for inmate work crews.
Ayes (5): Mayor Wixom, Council Member Edwards, Council Member Eckles, Council Member Landrum, and Council Member Luffee
6 CARRIED (5 to 0)
7.f Adoption of Resolution No. 03-25 Approving the Assignment of Assumption and Conditionally Authorizing the Mayor to Execute Documents Necessary for the Assignment and Assumption at Lease Site 53-56/53W-56W and Accepting Deeds of Trust Related Thereto Adopt Resolution No. 03-25 allowing the Mayor to authorize the assignment and assumption, and authorizing the Mayor to execute necessary documents, and accepting deeds of trust related thereto regarding sale of the leasehold interest at Lease Site 53-56/53W-56W (Estero Inn, 501 Embarcadero) to Russel Curtis, Don Nelson, Daniel McCall, and Justin Laribee (LLC Pending), with documents subject to approval of the City Attorney.
8. PUBLIC HEARING ITEMS
The Council took a brief recess at 7:20 p.m. and reconvened at 7:31 p.m. with all members present.
9. BUSINESS ITEMS
9.a Advisory Board Interviews and Appointments
https://youtu.be/WKs8Vfb2uhI?si=x3LDrtG0UEXD9gmc&t=6433 Harbor Advisory Board applicants Jeremiah O'Brien and Marshall Witkowski briefly introduced themselves.
See first motion below.
Recreation & Parks Commission
The following applicants were intereviewed for consideration of appointment to the Recreation & Parks Commission: Rachael Grace Leonti, Drew Sidaris and Betty Winholtz.
The Council voted by written ballot and Clerk Swanson read the results:
Betty Winholtz received five votes, Drew Sidaris received three votes (Luffee, Edwards and Wixom), and Rachael Grace Leonti received two votes (Eckles and Landrum). Ms. Winholtz and Mr. Sidaris were reappointed to the Recreation & Parks Commission for a 4-year term.
Planning Commission
The following applicants were interviewed for consideration of appointment to the Planning Commission: Tony deFazio, Jim Duffy, Stephen McConnell and Mary Witkowski (Sean Hanlon was not present).
The Council voted by written ballot and Clerk Swanson read the results.
Tony deFazio received four votes (Eckles, Landrum, Luffee and Wixom); Mary Witkowski received four votes (Eckles, Landrum, Edwards and
7 Wixom); Jim Duffy received one vote (Edwards) and Stephen McConnell received one vote (Luffee). Mr. deFazio and Ms. Witkowski were appointed to the Planning Commission for a 4-year term.
Public Works Advisory Board
Clerk Swanson announced John Erwin was unable to participate in interviews due to a scheduled medical procedure but would like to be considered for reappointment to the Board. City Policy allows the Council to consider his application upon a finding of the City Council by motion the absence arose from excusable neglect or personal difficulties.
See second motion below.
The following applicants were interviewed for consideration of appointment to the Public Works Advisory Board: Laurie Beale, Paul Donnelly and Betsy Gaudette-Cross.
The Council voted by written ballot and Clerk Swanson read the results:
Paul Donnelly received four votes (Eckles, Landrum, Edwards and Wixom), Betsy Gaudette-Cross received four votes (Eckles, Landrum, Luffee and Wixom), Laurie Beale received one vote (Edwards) and John Erwin received one vote (Luffee). Mr. Donnelly and Ms. Gaudette-Cross were appointed to the Public Works Advisory Board for a 4-year term.
Motion by Mayor Wixom
Seconded by Council Member Eckles
Appoint Jeremiah O'Brien and Marshall Witkowski to fill upcoming vacancies on the Harbor Advisory Board.
Ayes (5): Mayor Wixom, Council Member Edwards, Council Member Eckles, Council Member Landrum, and Council Member Luffee CARRIED (5 to 0)
Motion by Mayor Wixom
Seconded by Council Member Edwards
Consider Mr. Erwin's application based on a finding his absence arose from excusable personal difficulties.
Ayes (5): Mayor Wixom, Council Member Edwards, Council Member Eckles, Council Member Landrum, and Council Member Luffee CARRIED (5 to 0)
9.b Request to form the Waterfront Master Plan Advisory Committee (WMPAC)
https://youtu.be/WKs8Vfb2uhI?si=7o8W981EnvjRvnu4&t=10738
8 Community Development Director Singewald presented the report and responded to Council inquiries.
Mayor Wixom opened public comment on Item 9.b.
https://youtu.be/WKs8Vfb2uhI?si=0dAHxlJk6NSW2jim&t=11823 Betty Winholtz, Morro Bay, opined a 9-member committee may be a bit unruly and representatives from each of the advisory bodies would suffice.
Judy Setting, Morro Bay, liked the idea of having nine members as it provides more opportunities for community outreach.
End of public comment.
Following discussion, there was Council consensus to establish a 7- member committee with one member appointed by each of the City's standing advisory bodies (Planning Commission, Citizens Finance Advisory Committee, Public Works Advisory Board, Harbor Advisory Board and Recreation & Parks Commission), one representative from the Embarcadero Master Leaseholders group, and one member from an environmental group, such as the Morro Bay National Estuary Program (NEP). Additionally, the Council directed the Harbor Advisory Board appointee not be the master leaseholder representative as that would duplicate their representation on the committee.
Motion by Mayor Wixom
Seconded by Council Member Landrum
Establish a 7-member Waterfront Master Plan Advisory Committee (WMPAC) with the direction given to the Community Development Director.
Ayes (5): Mayor Wixom, Council Member Edwards, Council Member Eckles, Council Member Landrum, and Council Member Luffee CARRIED (5 to 0)
9.c Update on Fiscal Year (FY) 2023-24 and 2024-25 City Council Goals and Action Items
https://youtu.be/WKs8Vfb2uhI?si=UQVOl9a4TiO5UaQR&t=12850 There was consensus to continue this item to a future meeting, date uncertain.
10. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS
https://youtu.be/WKs8Vfb2uhI?si=ohpJ_LVT9IDD1m1F&t=12928
9 Council Member Landrum requested and received support to agendize for the January 28th meeting, consideration of contacting the school district to express the City's interest in the Morro Elementary School property and ask for 90-180 day window to support the community's desire to explore options, with the understanding no city budget is involved. Additionally, direct the City Manager to immediately communicate with the school district this item has been agendized.
Council Member Eckles requested and received support for analysis and discussion of the use of portapotties in the city. It was agreed the Public Works Advisory Board review this item first.
11. ADJOURNMENT
The meeting adjourned at 9:27 p.m.
/s/ Dana Swanson, City Clerk
1 MINUTES - MORRO BAY CITY COUNCIL
CLOSED SESSION MEETING
January 14, 2025, 3:30 p.m.
City Hall Conference Room
595 Harbor Street, Morro Bay, CA 93442
Members Present: Mayor Carla Wixom
Council Member Cyndee Edwards
Council Member Jeff Eckles
Council Member Zara Landrum
Council Member Bill Luffee
Staff Present: City Manager Yvonne Kimball
Interim City Attorney Robert Schultz
Community Development Director Airlin Singewald
Harbor Vitality Director Chris Munson
_____________________________________________________________________
1. ESTABLISH QUORUM AND CALL TO ORDER
Mayor Wixom called the meeting to order at 3:30 p.m. with all members present.
2. SUMMARY OF CLOSED SESSION ITEMS
3. CLOSED SESSION PUBLIC COMMENT
Don Nelson and Russel Curtis shared their professional background and vision for the Estero Inn.
Jeff Boehm, The Marine Mammal Center, commented on the Center's need to relocate and interest in the 231 Atascadero Road property. Abe Abuhilal expressed interest in a potential redevelopment of 231 Atascadero Road.
Dan Ballesteros, Morro Bay, shared his interest and vision for redevelopment of 231 Atascadero Road.
End of public comment.
4. THE COUNCIL WILL CONVENE IN CLOSED SESSION
4.a CONFERENCE WITH REAL PROPERTY NEGOTIATOR -
GOVERNMENT CODE SECTION 54956.8
Properties: 231 Atascadero Road
2 Property Negotiator: Various Interested Parties: The Marine Mammal Center, Larry Guesno, Abe Abuhilal, and Daniel and Kari Ballesteros Agency Negotiators: Yvonne Kimball, City Manager; Airlin Singewald, Community Development Director; and Robert Schultz, Interim City Attorney
Negotiations: Price and Terms of Payment
4.b CONFERENCE WITH REAL PROPERTY NEGOTIATOR -
GOVERNMENT CODE SECTION 54956.8
Property: Lease Site 53-56/53W-56W (Estero Inn, 501 Embarcadero) Property Negotiators: Russel Curtis, Don Nelson, Daniel McCall, and Justin Laribee
Agency Negotiators: Yvonne Kimball, City Manager; Chris Munson, Harbor Vitality Director; and Robert Schultz, Interim City Attorney Negotiations: Price and Terms of Payment
4.c PUBLIC EMPLOYEE EMPLOYMENT
City Attorney pursuant to Government Code Section 54957.
5. RECONVENE IN OPEN SESSION
The City Council reconvened in Open Session. The Council did not take any reportable action in accordance with the Brown Act.
6. ADJOURNMENT
The meeting adjourned at 5:20 p.m.
Respectfully submitted,
/s/ Dana Swanson, City Clerk
Prepared By: RWS Dept Review: ________
City Manager Review: _YK___ City Attorney Review: __RWS__ Staff Report
TO: Honorable Mayor and City Council DATE: January 21, 2025 FROM: Robert Schultz, Interim City Attorney
SUBJECT: Authorization to send a letter to the San Luis Coastal Unified School District regarding the Morro Elementary School site
RECOMMENDED ACTION
Approve authorization to send the attached letter to the San Luis Coastal Unified School District (“District”) requesting the District not take any action to sell or dispose of the Morro Elementary School site for 120 days to allow the community to create a financial plan to purchase the property.
ALTERNATIVES
1. The Council may alter the proposed letter.
2. The Council may choose not to send a letter.
FISCAL IMPACT
None
BACKGROUND/DISCUSSION
Pre-COVID, the District announced it would sell some properties, including Morro Elementary School, due to declining enrollments. COVID occurred, and the District delayed selling the school.
On December 16, 2024, the City Council met in a closed session to address an offer from the District regarding a potential purchase by the Morro Elementary School property. The Council declined the offer based on the terms presented by the District. On December 17, 2024, the School District adopted Resolution No. 15-24-25 declaring Morro Elementary and Sunnyside Elementary in Los Osos as exempt surplus property, allowing the property(ies) to be sold.
At the January 14, 2025 City Council meeting, numerous community members spoke during public comment and urged the City to request the District postpone the sale of the property to allow time for the community to create a financial plan to purchase the school property. As a result, the Council agendized this item.
A draft letter is attached for Council’s consideration.
CONCLUSION
It is recommended Council approve authorization to send the attached letter.
ATTACHMENTS
1. Draft letter to the School District.
AGENDA NO: 7.b
MEETING DATE: January 28, 2025
January 29, 2025
San Luis Coastal Unified School District
1500 Lizzie Street
San Luis Obispo, CA 93401
Sent via email: [email protected] [email protected]
Re: Morro Elementary School property
Dear President Rodger and Superintendent Dr. Prater,
I want to update you on what has occurred since my January 7, 2025, letter regarding the Morro Elementary site. To review, the District communicated its willingness to partner with the City, requesting a clear and timely response to the District’s offer for the City to purchase the school property. The City Council met on December 16, 2024, and decided not to make an offer at that time based on the terms presented by the District.
Subsequently, at our January 14 Council meeting, the Public Comment period was dominated by requests for the City to re-engage with the District. Specifically, community members asked for time to develop a fundraising plan to purchase the school property.
In response to community input, at its January 28 meeting, the Council authorized the Mayor to send a letter to the District requesting that it take no steps to sell or dispose of the property for a 120-day period to allow its community members to explore financing the purchase.
As stated in my January 7 letter, the City is hosting an information session to provide the public with land use information about the site. We have invited District staff to participate with us. As a result, a town hall meeting has been scheduled for January 30, 2025, and we hope both of you can attend that information session.
Thank you for your considered attention. We respectfully request that you provide the City with a timely response to our request to delay taking any action on the property sale for 120 days.
Sincerely,
Carla Wixom, Mayor
cc: City Council
Yvonne Kimball, City Manager
Airlin Singewald, Community Development Director
Prepared By: ___KF____ Dept Review: ___AS______
City Manager Review: __YK______ City Attorney Review: __RWS__ Staff Report
TO: Honorable Mayor and City Council DATE: January 20, 2025 FROM: Airlin Singewald, Community Development Director
Kim Fowler, Planning Manager
SUBJECT: Uphold an appeal by Paul Gillen and reserve the Planning Commission’s denial of Conditional Use Permit CUP24-04; and approve a revised project for the demolition of existing structures and redevelopment of lease sites at 431, 451, and 495 Embarcadero Road
RECOMMENDED ACTION
Adopt Resolution No. 04-25 (Attachment 1) to uphold the Applicant’s appeal, accept the Applicant’s Revised Project (January 2025), and reverse the Planning Commission’s denial of CUP24-04, based on the findings and conditions contained therein.
ALTERNATIVES
1. Alternatively, the Council may uphold the Applicant’s appeal, reverse the Planning Commission’s denial, and approve the Original Proposed Project (October 2024); or
2. The Council may reject the Applicant’s appeal and uphold the Planning Commission’s decision to deny the project.
APPLICANT AND APPELLANT: Paul Gillen
SUMMARY
On November 19, 2024, the Planning Commission denied a request by Paul Gillen for a Conditional Use Permit (CUP24-04) to redevelop the four southernmost lease sites on the Embarcadero with a new two-story, eight (8) room hotel and renovation of the existing Associated Pacific Contractors (APC) office building to include a first and second story retail use, one (1) new commercial retail space that will be a visual reproduction the cottage locally known as “Reggie’s Place,” public restrooms, and marine research office space. The proposed project would also expand the waterside lease area and develop a new floating dock with three (3) finger slips, harbor walk, and observation deck. The proposed development is known as the Bayside Landing Project.
The Planning Commission denied (4 to 1) the request due to concerns regarding the building height, scale, and massing. In particular, the Planning Commission decided the project did not include sufficient public benefit to qualify for a 25’ building height allowance and that this resulted in development of a scale and mass that is out of character with the Embarcadero and inconsistent with the Waterfront Master Plan. While the Planning Commission denied the Bayside Landing Project, a AGENDA NO: 8.a
MEETING DATE: January 28, 2025
2 majority of commissioners indicated they could have supported the project if one of the three secondfloor hotel rooms were eliminated to reduce the building mass and open views to the bay. A link to the November 19, 2024 Planning Commission staff report is provided here:
https://www.morrobayca.gov/ArchiveCenter/ViewFile/Item/7463. The Planning Commission minutes from this meeting is provided in Attachment 2. The Planning Commission resolution for the denial is provided in Attachment 3.
On December 2, 2024, Paul Gillen (Applicant) filed an appeal (Attachment 4) of the Planning Commission’s denial of CUP24-04. The Applicant’s appeal contends that the Bayside Landing Project is consistent with the Waterfront Master Plan (per Planning staff’s recommended findings to the Planning Commission) and contains significant public benefits that were not acknowledged by the Planning Commission in its denial of the project.
Since the November 19, 2024 Planning Commission meeting, the Applicant has proposed a Revised Project (January 2025) that is generally consistent with what a majority of Planning Commissioners said they could support. The Revised Project is essentially the same proposal the Applicant presented to the Planning Commission on November 19, 2024, in response to suggestions from the Planning Commission subcommittee, with one significant change: it would also eliminate the southernmost second-floor hotel room, thereby reducing the mass of the proposed hotel building’s second story. The other major element of the Revised Project, which was proposed at the November 19th meeting, is the addition of Reggie’s Place at the south end of the project between the proposed hotel and pocket park. Recognizing that the cottages are deteriorated beyond repair and do not meet criteria for historic preservation, Reggie’s Place would be a new 420 square-foot visitor-serving retail structure constructed using salvaged materials and character-defining elements of the existing cedarshingled cottage at the south end of the Embarcadero. Reggie’s Place would activate the southern end of the Embarcadero and add a visitor-oriented use between the private hotel rooms and public pocket park.
Since the Revised Project is consistent with the Waterfront Master Plan and the spirit of the Planning Commission’s suggestions, staff prepared the City Council resolution (Attachment 1) to uphold the Applicant’s appeal, accept the Applicant’s Revised Project (January 2025), and reverse the Planning Commission’s denial of CUP24-04, based on the findings and conditions contained therein.
Alternatively, the Council may uphold the Applicant’s appeal, reverse the Planning Commission’s denial, and approve the Original Proposed Project (October 2024).
Finally, the Council may reject the Applicant’s appeal and uphold the Planning Commission’s decision to deny the project.
3 BACKGROUND
Proposed Project
The following summarizes the Original Proposed Project (October 2024) and the Revised Project (January 2025) in tracked changes. The attached resolution reflects approval of the Revised Project (January 2025).
Land-side Lease Sites (49L, 50L, 51L, and 52L)
Demolition of two (2) existing vacation rental cottage structures. Construction of a new two-story hotel, with seven (7) rooms eight (8) rooms. The proposed hotel is 22 feet tall with a 24-foot elevator tower near the center of the project site. Construction of a new approximately 420 square-foot retail space (“Reggie’s Place”) on the southern end of the project site between the proposed hotel and new pocket park. Reggie’s Place would be a re-creation of the southernmost cedar-shingle-sided vacation rental cottage. To the greatest extent feasible, Reggie’s Place would be constructed using salvaged materials from the existing cottage and would incorporate character-defining architectural features (e.g., ship port windows, etc.) of the existing cottage. When it’s not feasible to use salvaged materials for building or fire code purposes, the Applicant would use the most similar code-compliant materials. This modification requires an expansion of the proposed viewing deck southwest of the pocket park.
Renovate an existing approximately two-story 3,000 square-foot marine contractor office building and workshop into retail space on the first floor, a marine research office, public restrooms, and a commercial kitchen. A commercial space for restaurant will be on the second floor. This would include a research space for the existing marine contractor business. Construction of an approximately 800 square-foot second-story public observation deck, connecting the proposed retail space and second-floor hotel units. The public observation deck would connect to a walkway leading to the second-floor hotel rooms on the Embarcadero side of the property and the proposed elevator. The second-story deck would incorporate cut-outs as well as translucent grates to allow natural light to penetrate on the sidewalk below.
Continued maintenance of commercial wharf below the observation deck to support marine construction support and vessel loading capabilities.
Installing a new 8-foot-wide sidewalk along the Embarcadero side of the project site, with a bulb out to preserve the existing APC stairway.
Development of a new approximately 500 square-foot 1,000 square-foot pocket park (lease site 49L) with public benches, at the southern end of the project site.
Waterside Lease Sites (49W, 50W, 51W, and 52W)
Construction of a 250’ long section of a 10’ wide harborwalk, connecting Mariners Park to the north with the new pocket park to the south.
Expansion of waterfront lease sites to accommodate the construction of a 162’ long new floating dock with three new 15’ x 40’ slips and a floating kayak rental dock.
Planning Commission Meetings and Decision
The Planning Commission first considered the Original Proposed Project at a Conceptual Review Meeting on June 4, 2024. During this meeting, the Planning Commission and public raised concerns about the loss of the existing vacation rental cottages, which do not meet criteria for historic preservation, but exhibit distinct architecture. Concerns were also raised about the height, massing, and scale of the proposed development. Two commissioners were absent from the June 4th Conceptual Review meeting. The staff report for this meeting may be viewed here:
4 https://www.morrobayca.gov/ArchiveCenter/ViewFile/Item/7411 The project was heard by the Planning Commission again on October 29, 2024. The staff report included a list of Planning Commission and public comments during Conceptual Review with staff’s responses. Staff explained that the Historic Resource Evaluation concluded that the vacation rental cottages are not eligible for listing as a historic resource, the City’s land use regulations do not protect private views, and the project meets objective standards of the Waterfront Master Plan regarding scale, massing, and minimum public viewing corridors. The staff report for this meeting may be viewed here: https://www.morrobayca.gov/ArchiveCenter/ViewFile/Item/7456 A major topic of discussion at Planning Commission was the height of the proposed 22’ tall two-story hotel building with a 24’ tall elevator tower near the center of the project site. The Waterfront Master Plan includes a table that establishes maximum building heights based on lease area width, minimum view corridor width, roof slope, and public benefits. The Waterfront Master Plan allows for building heights between 17 and 25 feet for projects with 50’ or wider lease sites, a minimum 30 percent view corridor, and a 4:12 roof pitch. See exhibit below (Waterfront Master Plan page 5-2):
The proposed project meets the objective lease width, minimum view corridor, and roof slope criteria for a 25’ height allowance. The Planning Commission was not convinced that the project met the “significant public benefit” requirement for the 25’ height allowance. They concluded the October 29th meeting by forming a subcommittee (Commissioners Roschen and Meyer) to work with the Applicant to address concerns related to the structure’s height, scale, and massing; and continued the item to November 19, 2024.
The Planning Commission subcommittee met onsite with the applicant and staff on November 6, 2024. During this meeting, the subcommittee provided the following suggestions:
Reduce massing of proposed hotel and open views to the bay by stepping down the second story on the southern terminus of the project.
Relocate or otherwise conceal the elevator tower.
5 Activate the southernmost lease site with a public visitor-serving use. Consider options to preserve the vacation rental cottages. Preserve the existing staircase adjacent on the Embarcadero side of the APC building. Address “tunnelling effect” of the viewing deck to minimize shading of public areas below.
In response to the subcommittee’s suggestions, the applicant presented a Revised Plan (November 2024) with the following modifications to the Planning Commission on November 19, 2024:
The addition Reggie’s Place (description above) at the southern terminus of the project site. To address the concern that the incorporation of the second-floor deck will create a dark and ‘tunnel-like’ effect of the public space below, the Applicant incorporated cut-outs as well as translucent grates on the deck surface to allow natural light to penetrate on the sidewalk below.
The character-defining staircase on the Embarcadero side of the APC building would be preserved.
The Planning Commission determined that the Revised Plan did not adequately address their concerns regarding the structure’s height, scale, and massing, and voted (4 to 1) to deny the project.
The Planning Commission directed staff to prepare, and the chairperson to sign, a resolution with denial findings stating that the project is inconsistent with various design guidelines of the Waterfront Master Plan because it does not provide the necessary “significant public benefit” to receive a 25’ building height allowance (Attachment 3). During deliberations, however, a majority of commissioners indicated they could support a version of the project that eliminated one of the second-story hotel rooms.
Required Finding of Significant Public Benefits
The term “significant public benefit” was a major factor in the Planning Commission’s decision and the Applicant’s appeal. This is because, as described above, to approve a project between 17 and 25 feet in height, the City decision-makers must make a finding that the project includes “significant public benefit.”
The Waterfront Master Plan does not define “significant public benefit.” As such, decision makers have broad discretion to decide what constitutes a “significant public benefit.” While the Waterfront Master Plan does not explicitly define “significant public benefit,” it contains several statements relating to the concept of public benefit. The second paragraph of Chapter 1 explains that in the late 1980s, the City “faced several major proposals that raised the issues of public benefit versus private rights to develop property.” It goes on state that “It was ironic that the very characteristics that made the Embarcadero desirable for development were those that, without regulation, could lead to improper development and destroy the values that attracted the development in the first place.” Through this lens, “public benefit” means ensuring that development creates spaces for the public to enjoy, access, and view the bay.
The Waterfront Master Plan established regulations to ensure that private development provide visual public access (through minimum view corridor requirements) and physical access (a requirement for a harbor walk) to the bay. In addition to meeting these regulations, all versions of the Proposed Project would provide the following public benefits:
New public restrooms
6 New floating dock, finger slips, and a kayak rental space New observation deck and seating benches
Second floor observation deck
Public tables and chairs
New pocket park with bicycle racks and benches
The Applicant’s appeal (Attachment 4) lists several additional public benefits provided by the project, such as a cohesive development of all lease sites together and a new 300 square-foot connection of the proposed harbor walk to the dock at Mariner Park. The project also provides indirect public benefits, as it would increase City tax and lease revenues to maintain and repair the Embarcadero for the public to safely enjoy.
COASTAL COMMISSION APPROVAL REQUIRED
The proposed project is located within the California Coastal Commission’s (CCC) original jurisdiction and will therefore require entitlement permitting in a two-step process. If the City Council upholds the appeal and approves the requested Conditional Use Permit, the Applicant will then be required to obtain a Coastal Development Permit directly from the CCC. The City’s action on the Conditional Use Permit is not appealable to or otherwise within the jurisdiction of the CCC.
ENVIRONMENTAL REVIEW
The proposed project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) per State CEQA Guidelines 15301 (Class 3 – New Construction of Limited Small New Facilities) and 15332 (In-fill Development Projects in Urban Areas). Under these exemptions, and with the environmental analysis provided in the Planning Commission staff report, no further environmental analysis is required.
A Notice of Exemption will be filed with the San Luis Obispo County Clerk’s Office upon final approval.
CONCLUSION
The Planning Commission considered the proposed project at three separate meetings between June and November 2024, and ultimately denied the project due to concerns regarding the proposed development’s height, scale, and massing. During deliberations, a majority of commissioners indicated they could support a scaled-down version of the project, particularly with a second-story hotel room removed. In filing an appeal, the Applicant is essentially asking the City Council to consider approving a Revised Project (January 2025) that meets the spirit of the Planning Commission’s desired compromise. Namely, the Revised Project (January 2025) eliminates the southernmost second-story hotel room and adds Reggie’s Place, a retail space that will activate the southern end of the Embarcadero and recreate the character-defining vacation rental cottage currently at the end of the Embarcadero. The Revised Project (January 2025) (Attachment 5) is consistent with the Waterfront Master Plan.
ATTACHMENTS
1. City Council Resolution No. 04-25
2. Planning Commission Minutes – November 19, 2024
3. Planning Commission Resolution No. 04-24
4. Appeal to City Council – December 2, 2024
5. Project Summary
RESOLUTION NO. 04-25
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA
TO: 1) UPHOLD AN APPEAL BY PAUL GILLEN (APPLICANT); 2) RESERVE THE PLANNING COMMISSION’S DENIAL OF CONDITIONAL USE PERMIT CUP24-04; AND APPROVE A REVISED PROJECT (JANUARY 2025) FOR
THE DEMOLITION OF EXISTING STRUCTURES AND REDEVELOPMENT OF LEASE SITES AT 431, 451, AND 495 EMBARCADERO ROAD, MORRO BAY
T H E C I T Y C O U N C I L
City of Morro Bay, California
WHEREAS, the Planning Commission of the City of Morro Bay conducted a public hearing at the Morro Bay Veteran’s Hall, 209 Surf Street, Morro Bay, California, on November 19, 2024, for the purpose of considering approval of Conditional Use Permit No. 24-04 (“the Project”); for a proposed commercial development and redevelopment project located 431, 451, and 495 Embarcadero Road; and
WHEREAS, on November 19, 2024, the Planning Commission of the City of Morro Bay adopted Resolution 04-24 to deny the Conditional Use Permit (CUP24-04); and WHEREAS, on December 2, 2024, an appeal of the Planning Commission action to deny the project was filed with the City of Morro Bay by Paul Gillen (Applicant) specifically requesting the City Council review and approve the project; and
WHEREAS, the City Council conducted a public hearing at the Morro Bay Veteran’s Hall, 209 Surf Street, Morro Bay, California, on January 28, 2025, to consider an appeal of the Planning Commission’s denial of the project; and
WHEREAS, the Applicant submitted a revised project that eliminates one of the proposed second-floor hotel rooms (reducing the total number of hotel rooms from 8 to 7), adds a 420 square-foot retail space (“Reggie’s Place”) at the southern end of the Embarcadero, and incorporates cut-outs and translucent grates to allow natural light to penetrate the sidewalk below, among other changes (Revised Project [January 2025]); and WHEREAS, the Revised Project (January 2025) is consistent with and addresses the spirit of the Planning Commission’s suggestions to reduce the massing and scale of the proposed development, preserve character-defining elements of the existing vacation rentals, and activate the southern end of the Embarcadero with public visitor-serving uses; and WHEREAS, the City Council reviewed and duly considered the Revised Project (January 2025); and
WHEREAS, notices of the public hearings were made at the time and in the manner required by law; and
WHEREAS, the City Council has duly considered all evidence, including the previous decisions made by the Planning commission, the testimony of the Applicant, interested parties, and the evaluation and recommendations by staff, presenting at said hearing.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay as follows:
Section 1: Findings to Reverse the Planning Commission Denial. Based upon all the written and oral testimony and evidence presented to the Council at and for the above public hearing, the City Council makes the following findings:
California Environmental Quality Act (CEQA)
1. That for purposes of the California Environmental Quality Act, Case No. CUP24-04 is categorically exempt under 15303 (Class 3) for the new construction of limited small new facilities, and Section 15332 for in-fill development projects in urban areas.
Conditional Use Permit Findings
2. The proposed project is allowed within the applicable zoning district and complies with all other applicable provisions of this Title (Title 17) and all other titles of the Municipal Code.
The proposed office, retail, restaurant, and lodging uses (proposed use) are consistent with the Waterfront zoning district.
3. The proposed use is consistent with the General Plan and any applicable specific plan.
The project is in compliance with the General Plan and certified Local Coastal Program as well as the Downtown Waterfront Master Plan (WMP) and will not be detrimental to the health, safety, and general welfare of persons residing or working in the surrounding neighborhood.
4. The proposed use will not be adverse to the public health, safety, or general welfare of the community, nor detrimental to surrounding properties or improvements.
The proposed use benefits the occupant and will not be adverse to the public health, safety, or general welfare of the community, nor detrimental to surrounding properties or improvements.
5. The proposed use complies with any design or development standards applicable to the zoning district or the use in question unless waived or modified pursuant to the provisions of Title 17.
The proposed use complies with both the Zoning Code and WMP design and development standards.
6. The design, location, size, and operating characteristics of the proposed activity are compatible with the existing and reasonably foreseeable future land uses in the vicinity.
The proposed remodel of the building at 495 Embarcadero Road, and the addition of seven (7) new hotel rooms and one (1) commercial retail space is compatible with the surrounding waterfront businesses and reasonably foreseeable future land uses in the vicinity.
7. The site is physically suitable for the type, density, and intensity of the use being proposed.
The site is currently used as an office space and vacation rental property and therefore is physically suitable for the type, density, and intensity of the redevelopment being proposed.
Waterfront Master Plan Findings
8. The proposed project makes a positive contribution to the visual and public accessibility to the bay and rock while maintaining the existing commercial fishing industry:
a. Meets the Waterfront plan height limit and maximum building coverage, bulk, and scale requirements in that the proposed project does not exceed the maximum height allowed and interesting articulation breaks up the bulk and scale, and complies with roof sloping requirements.
b. Preserves and enhances the views as seen from street ends; c. Enhances views to the waterfront through and/or around the building; and, d. Maintains a pedestrian character along the Embarcadero.
On the west side of the Embarcadero, in the case of granting heights greater than 17 feet, the proposed project also provides significant public benefits, including (but not limited to):
new public restrooms; new floating dock, finger slips, and a kayak rental space; new observation deck and seating benches; second floor observation deck; public tables and chairs; new pocket park with bicycle racks and benches. The project also provides indirect public benefits including increased City revenues to maintain and repair the Embarcadero for the safe enjoyment by the public.
The proposed project is a response to the city’s RFP to revitalize the southern terminus of the Embarcadero and will make a positive contribution to the visual accessibility to the bay and rock as identified above.
9. The proposed project provides the amenities identified in the Waterfront Master Plan, facilitates pedestrian visual and physical access to the waterfront, and takes advantage of outward views and characteristics of the topography.
The proposed project provides a new Harborwalk, public observation deck, benches and tables, as well as public access to the floating docks. From these vantage points there are many opportunities for visitors to experience the views of Morro Bay.
10. The proposed project makes a positive contribution to the working fishing village character and quality of the Embarcadero and provides an interesting and varied frontage that will enhance the pedestrian experience. The project gives its occupants and the public some variety in materials and/or their application. The project contains the elements of harmony, continuity, proportion, simplicity and balance and its appearance matches its function and the uses proposed.
The architect for this project is a longtime member of the community and has designed many of the buildings along the Embarcadero; this project will include a varied frontage that is consistent with the existing streetscape and contribute positively to the working fishing village character and quality of the area.
11. The proposed project does not diminish, either directly or by cumulative impact of several similar projects, the use, enjoyment or attractiveness of adjacent buildings and provides a visual and pedestrian transition to its immediate neighbours.
The architect for this project is a longtime member of the community and has designed many of the buildings along the Embarcadero; this project will include a varied frontage that is consistent with the existing streetscape and contribute positively to the working fishing village character and quality of the area.
Architectural Consideration
12. The City Council finds that the architectural treatment and general appearance of all proposed structures and open areas are in keeping with the character of the surrounding areas, are compatible with any design themes adopted by the City, and are not detrimental to the orderly and harmonious development of the city or to the desirability of investment of occupation in the area.
Design Review Finding
13. The City Council finds that the overall design of the project including its form, scale, massing, site plan, exterior design, and landscaping will implement the General Plan Vision for Community Character Areas for the particular area in which it is located as well as complement the natural and built features of surrounding properties and incorporate sustainable development features.
14. The project design is appropriate to the function of the project and will provide an attractive and comfortable environment for occupants, visitors, and the general community.
15. Project details, materials, signage and landscaping, are internally consistent, fully integrated with one another, and used in a manner that is visually consistent with the proposed architectural design.
16. The design of streetscapes, including street trees, lighting, and pedestrian furniture, is consistent with the intended character of the area.
17. Hardscape areas are designed and developed to buffer surrounding land uses; compliment pedestrian-oriented development; enhance the environmental quality of the site, including minimizing stormwater run-off and the heat-island effect; and achieve a safe, efficient, and harmonious development.
18. Lighting and lighting fixtures are designed to complement buildings, be of appropriate scale, provide adequate light over walkways and parking areas to create a sense of pedestrian safety, avoid creating glare, and conform to dark sky principles.
19. Landscaping is designed to be compatible with and enhance the vision for the Community Character Area in which the development is located as well as the architectural character and features of the buildings on site.
Section 2. Action. The City Council does hereby uphold the appeal filed on December 2, 2024, by Paul Gillen, the project applicant; reverses the Planning Commission denial of CUP24-04; hereby approves the Revised Project (January 2025) subject to the conditions of approval below:
STANDARD CONDITIONS:
1. Permit: Conditional Use Permit (CUP24-04) to allow development and redevelopment of City lease sites 49 L 49 W, 50 L 50 W, 51 L 51 W and 52 L 52 W to include the renovation of an existing office building, demolition of existing vacation rental buildings, construction of a new two-story building with seven (7) hotel rooms, and construction of one (1) new approximately 420 square-foot commercial retail building. A new water area will include one (1) new floating dock, three (3) new finger slips, and one (1) finger dock space with a low floating dock for a kayak rental business. A new Harborwalk connection is proposed to connect pedestrians along the Embarcadero to Tidelands Park. The project zoning is WF, and the property is located within the California Coastal Commission original jurisdiction.
2. Revised Plans: Within 30 days (by February 28, 2025), the applicant shall submit revised plans to the Community Development Department for review and approval showing the following revision consistent with Condition #1: Elimination of the southernmost secondstory hotel room. Building permit plans and development shall be consistent with the revised plans.
3. Inaugurate Within Two Years: Unless the construction or operation of the structure, facility, or use is commenced not later than two (2) years after the effective date of this Resolution and is diligently pursued, thereafter, this approval will automatically become null and void; provided, however, that upon the written request of the applicant, prior to the expiration of this approval, the applicant may request up to two extensions for not more than one (1) additional year each. Any extension may be granted by the City’s Community Development Manager (the “Director”), upon finding the project complies with all applicable provisions of the Morro Bay Municipal Code (the “MBMC”), General Plan and certified Local Coastal Program Land Use Plan (LCP) in effect at the time of the extension request.
4. Changes: Minor changes to the project description and/or conditions of approval shall be subject to review and approval by the Community Development Director. Any changes to this approved permit determined, by the Director, not to be minor shall require the filing of an application for a permit amendment subject to Planning Commission review.
5. Compliance with the Law: (a) All requirements of any law, ordinance or regulation of the State of California, the City, and any other governmental entity shall be complied with in the exercise of this approval, (b) This project shall meet all applicable requirements under the MBMC, and shall be consistent with all programs and policies contained in the LCP and General Plan for the City.
6. Hold Harmless: The applicant, as a condition of approval, hereby agrees to defend, indemnify, and hold harmless the City, its agents, officers, and employees, from any claim, action, or proceeding against the City as a result of the action or inaction by the City, or from any claim to attack, set aside, void, or annul this approval by the City of the applicant's project; or applicants failure to comply with conditions of approval. Applicant understands and acknowledges the City is under no obligation to defend any legal actions challenging the City’s actions with respect to the project. This condition and agreement shall be binding on all successors and assigns.
7. Compliance with Conditions: The Applicant’s establishment of the use or development of the subject property constitutes acknowledgement and acceptance of all Conditions of Approval. Compliance with and execution of all conditions listed hereon shall be required prior to obtaining final building inspection clearance. Deviation from this requirement shall be permitted only by written consent of the Director or as authorized by the Planning Commission. Failure to comply with any of these conditions shall render this entitlement, at the discretion of the Director, null and void. Continuation of the use without a valid entitlement will constitute a violation of the MBMC and is a misdemeanour.
8. Compliance with Morro Bay Standards: This project shall meet all applicable requirements under the MBMC, and shall be consistent with all programs and policies contained in the LCP and General Plan of the City.
9. Conditions of Approval: The Findings and Conditions of Approval shall be included as a full-size sheet in the Building Plans.
BUILDING CONDITIONS:
The codes in effect during this project review include the 2022 editions of the California Building Code (CBC), California Green Building Code (CGBC), California Plumbing Code (CPC), California Mechanical Code (CMC), California Electrical Code (CEC), and the California Energy Code (CEnC). The CBC is based on the 2021 editions of the International Building Code which was published by the International Code Council. The CPC & CMC are based on the 2021 editions of the Uniform Plumbing & Mechanical Codes which were published by IAPMO. The CEC is based on the 2020 edition of the National Electrical Code published by the National Fire Protection Association (NFPA).
GENERAL:
10. All common use public areas must be provided with vertical accessibility, and an accessible route from the public way to provided amenities.
PRIOR TO ISSUANCE OF A BUILDING PERMIT:
11. Building permit plans shall be submitted by a California licensed architect or engineer when required by the Business and Professions Code, except when otherwise approved by the Chief Building Official.
12. The owner shall designate on the building permit application a registered design professional who shall act as the Registered Design Professional in Responsible Charge.
The Registered Design Professional in Responsible Charge shall be responsible for reviewing and coordinating submittal documents prepared by others including phased and staggered submittal items, for compatibility with design of the building.
13. The owner shall comply with the City’s Structural Observation Program. The owner shall employ the engineer or architect responsible for the structural design, or another engineer or architect designated by the engineer of record or architect responsible for the structural design, to perform structural observation as defined in Section 220. Observed deficiencies shall be reported in writing to the owner’s representative, special inspector, contractor and the building official. The structural observer shall submit to the building official a written statement that the site visits have been made and identify any reported deficiencies that, to the best of the structural observer’s knowledge, have not been resolved.
14. The owner shall comply with the City’s Special Inspection Program. Special inspections will be required by Section 1704 of the California Building Code and a Statement of Special Inspections is required on the structural cover sheet. All Special Inspectors shall first be approved by the Building Official to work in the jurisdiction. All field reports shall be provided to the City Building Inspector when requested at specified increments for the construction to proceed. All final reports from Special Inspectors shall be provided to the Building Official when they are complete and prior to final inspection.
15. A soils investigation performed by a qualified professional shall be required for this project.
All cut and fill slopes shall be provided with subsurface drainage as necessary for stability; details shall be provided. Alternatively, submit a completed City of Morro Bay soils report waiver request.
16. Mitigation measures for natural occurring asbestos require approval from San Luis Obispo County Air Pollution Control District.
17. BUILDING PERMIT APPLICATION. To apply for building permits, submit three (3) sets of construction plans, fire sprinkler plans, if applicable, and supplemental documents to the Building Division. Construction plans shall be consistent with Condition of Approval No. 1 above, as well as exhibits provided in Attachment 5 of the staff report prepared for the January 28, 2025 City Council hearing.
18. The Title sheet of the plans shall include, but not limited to:
a. Street address, lot, block, tract and Assessor Parcel Number b. Occupancy Classification(s)
c. Construction Type
d. Maximum height of the building allowed and proposed
e. Floor area of the building(s)
f. Fire sprinklers, proposed or existing
g. Minimum building setback allowed and proposed
All construction will conform to the 2022 California Building Code (CBC), 2022 California Residential Code (CRC), 2022 California Fire Code (IFC), 2022 California Mechanical Code (CMC), 2022 California Plumbing Code (CPC), 2022 California Electrical Code (CEC), 2022 California Energy Code, 2022 California Green Building Code (CGBC), Title 14 and 17 of the Morro Bay Municipal Code.
(Code adoption dates are subject to change. The code adoption year is established by application date of plans submitted to the Building Division for plan review.) CONDITIONS TO BE MET DURING CONSTRUCTION:
19. Site Maintenance. During construction, the site shall be maintained so as to not infringe on neighboring property, such as debris and dust. A storm water management plan shall be maintained throughout the duration of the project. The storm water management measures such as fiber rolls, silt fencing, etc. will be enforced by City staff by random site visits.
20. Archaeological Materials. In the event unforeseen archaeological resources are unearthed during any construction activities, all grading and or excavation shall cease in the immediate area and the find left untouched. The Building Official shall be notified so that the extent and location of discovered materials may be recorded by a qualified archaeologist, Native American, or paleontologist, whichever is appropriate. The qualified professional shall evaluate the find and make reservations related to the preservation or disposition of artifacts in accordance with applicable laws and ordinances. If discovered archaeological resources are found to include human remains, or in any other case when human remains are discovered during construction, the Building Official shall notify to county coroner. If human remains are found to be of ancient age and of archaeological and spiritual significance, the Building Official shall notify the Native American Heritage Commission. The developer shall be liable for costs associated with the professional investigation.
21. Foundation Setback Verification: Prior to the placement of concrete and upon completed form installation, a licensed surveyor is required to measure and record the distance from the proposed foundation walls to the established lot lines. The contractor shall submit these findings in letter format to the building inspector upon the request for a foundation inspection. Letter shall specify the findings of front, sides and rear yard setbacks as defined in Title 17 of the MBMC. The Building Official shall have discretion on a case-bycase basis for some lot types.
22. Building Height Verification: Prior to roof sheathing or shear wall inspection, a licensed surveyor is required to measure and record the height of the structure. The contractor shall submit this finding in letter format to the building inspector upon the request for roof sheathing/shear wall inspection. Letter shall specify the recorded height of structure as defined in Title 17 of the MBMC. The Building Official shall have discretion on a case-bycase basis for some site-specific projects.
23. Existing Buildings: Where windows are required to provide emergency escape and rescue openings, replacement windows shall comply with the maximum sill height requirements of section R310.2.2 and the minimum opening area requirements of section R310.2.1 of the 2022 California Residential Code.
CONDITIONS TO BE MET PRIOR TO FINAL INSPECTION AND ISSUANCE OF CERTIFICATE OF OCCUPANCY:
24.Prior to Building Division final approval all required inspections from the other various divisions must have been completed and verified by a city inspector. All required final inspection approvals must be obtained from the various departments and documented on the permit card. This permit card shall then be turned into the building division for scheduling of the final building inspection.
25. Any as-built drawings that were required by the building inspector or plans examiner must be submitted for approval prior to the request for final inspection.
26. If structural observations were required, the final structural observation report shall be submitted to the building division prior to issuance of the certificate of occupancy or final inspection approval.
27. If special inspections were required, the final special inspection report shall be submitted to the building division prior to the issuance of the certificate of occupancy or final inspection approval.
28. Final soils summary report from the geotechnical representative indicating compliance with the required conditions set forth in the soils report.
29. Final T-24 energy reports (Certificates of Installation).
FIRE DEPARTMENT CONDITIONS:
30. Demolition Site Plan, General Notes. Provide the following notation: Fire Safety During Construction and Demolition shall be in accordance with 2022 California Fire Code, Chapter 33. This chapter prescribes minimum safeguards for construction, alteration and demolition operations to provide reasonable safety to life and property from fire during such operations.
31. Fire Protection Systems and Equipment. An approved automatic fire sprinkler system shall be provided throughout this project, pursuant to Morro Bay Municipal Code, Section
14.60.200.
32. Submit all plans and specification sheets for the required automatic fire sprinkler system to the Fire Department for review and approval prior to installation. The sprinkler system shall be in accordance with NFPA Standard 13. All Marine floating docks and gangway construction shall be in accordance with Morro Bay Municipal Code, Chapter 14.52 and
2007 California Fire Code (Section 905), a Class III Standpipe System is Required for the proposed Floating Dock.
33. Fire Alarms. Plans and specifications for the automatic fire sprinkler system and fire alarm system shall be submitted to the Fire Department for review and approval. (CFC 1001.3 and 1001.4) The fire sprinkler and alarm systems shall be supervised by a central station and constructed in accordance with NFPA 72.
34. Hood System. The exhaust hood and duct systems of all commercial ranges, fryers, broilers, and other cooking devices shall be protected by an automatic fire protection system incorporating full surface protection and automatic fuel shut-off. There shall be a remote activation device placed along the route of egress. If the building is equipped with a fire alarm system, the activation of the hood and duct system shall initiate an alarm with a separate zone.
35. Fire Department access to equipment. Rooms or areas containing controls for Electrical, FAU, Alarm and Fire Sprinkler Systems shall be identified by approved and appropriate signage for Fire Department use.
36. Every sleeping room below the fourth story shall have at least one operable window or door approved for emergency escape or rescue that shall open directly into a public street and shall be operable from inside to provide a full, clear opening without tool. Exception 2 may apply when fully sprinklered in accordance with NFPA 13.
37. Fire Extinguishers. A minimum of one 2A-10-BC extinguisher shall be provided for each floor area, so that travel distance does not exceed 75 feet. Extinguishers shall be serviced annually and shall have a current service tag attached. (CCR, Title 19, Sec. 3.29)
38. Required water supply. An approved water supply capable of supplying the required fire flow for fire protection shall be provided to premises upon which facilities, buildings or portions of buildings are hereafter constructed or moved into or within the jurisdiction (CFC 507.1).
39. Minimum number of fire hydrants for a building. The number of fire hydrants available to a building shall not be less than the minimum specified in Table C102.1. (CFC C102.1)
40. Elevator Car to Accommodate Ambulance Stretcher. Where elevators are provided, at least one elevator shall be provided for fire department emergency access to all floors.
The elevator car shall be of such a size and arrangement to accommodate an ambulance stretched 24-inches by 84-inches with not less than 5-inch radius corners, in the horizontal, open position and shall be identified by the international symbol for emergency medical services (star of life). The symbol shall not be less than 3-inches high and shall be placed inside on both sides of the hoist way door frame. (MBMC 14.08.090)
41. Dumpsters and containers with an individual capacity of 1.5 cubic yards or more shall not be stored in buildings or placed within 5 feet of combustible walls, openings or combustible roof eave lines.
42. Key Boxes. Where access to or within a structure or an area is restricted because of secured openings or where immediate access is necessary for lifesaving or fire-fighting purposes, the fire code official. Provide a Knox Key Box for installation to the exterior of the structure. Obtain a Knox Application from Morro Bay Fire Department during business hours.
43. Means of egress illumination. The means of egress, including the exit discharge, shall always be illuminated in the building space served by the means of egress is occupied (CFC 1006.1. Applicant shall provide a schedule of illuminated exit signs and emergency backup lighting locations and there is a readily visible sign adjacent to the doorway stating, “This Door to Remain Unlocked during Business Hours”.
44. Fire Protection for Wharves, docks, marinas, boat moorings. Firefighting appliances and equipment shall be provided and maintained in an operable manner for all commercially operated marinas and dock facilities, as specified by ordinances of the city, and all installations shall be subject to the approval of the fire marshal of the fire department.
PUBLIC WORKS CONDITIONS:
The following Public Works conditions shall be satisfied prior to Building Plan submittal:
45. Stormwater Management: The City has adopted Low Impact Development (LID) and Post Construction requirements. The requirements can be found in the Stormwater management guidance manual on the City’s website
https://www.morrobayca.gov/DocumentCenter/View/ 11828/MB-StormwaterManagement-MAIN-Manual. Submitted “Performance Requirement Determination Form” identifies the Performance No. 1 Requirement for the project. (MBMC 14.48.140)
46. Lease Line Adjustment: A lease line adjustment is required to extend western lease line due to the proposed lease boundary line adjustments and requires payment of fees, a legal description and lease exhibit created by a licensed surveyor, a City Council Resolution approving the lease line adjustment, and a signed agreement recorded with the County. (MBMC 8.14.020)
47. Right of Way: A Special Encroachment Permit Agreement or equivalent agreement is required for structures and new design items within the city right way. (MBMC 8.14.020)
48. Frontage Improvements: The installation of frontage improvements is required. Show the installation of a new City standard driveway approach per detail B-6, replacement of 8’ sidewalk per detail B-5, and replacement of curb and gutter per B-1. Show and label minimum 18” asphalt cut and pave back at all portions of curb and gutter to be installed.
Add note that asphalt cut and pave back will be to need replaced at nearest clean edge per Public Works inspector recommendations. (MBMC 14.44.020)
49. ADA: All existing nonconforming sidewalks must be replaced or repaired to comply with current ADA slope requirements.
50. Construction Details: Add construction details of proposed installations.
51. Debris Barrier: A Floating Debris Barrier shall be installed around the waterside perimeter of the construction site and maintained throughout the duration of the project. Note the beginning and end termini of the Floating Debris Barrier on Construction Plans. Silt screens and/ or straw waddles may be needed to prevent demolition/repair debris and sediments from entering the bay in the area of the piling repairs. The location of screens and waddles in this area should also be noted on the plans.
52. Sewer Lateral: Indicate and label if private sewer lateral pipe will be replaced or to remain in place. If the existing sewer lateral is proposed to remain in place, then perform a video inspection of the lateral (from the clean-out at structure to the connection at the sewer mainline pipe) and submit to Public Works via flash drive, prior to building permit plan approval. Requirements for the sewer video inspection can be located on the City’s
website at the following location: https://www.morrobay.ca.us/DocumentCenter/View/13500/Private-Sewer-Line-Video-Requirements/.
Lateral shall be upgraded, repaired or replaced as required to prohibit inflow/infiltration.
All repairs or replacements identified from sewer video, shall be noted on approved set of plans, prior to plan approval. (MBMC 14.07.030)
53. Water Meter: Indicate on plans location and sizes of both water meter and water lateral.
Coordinate sizes with Fire Sprinkler plans. Separate residential, commercial or industrial occupancies, if situated on the same premises and not under a common roof, shall have separate service connections and meters. (MBMC 13.04.140 & 14.04.010.C)
54. Water Backflow Prevention Device: Verify and label all new or existing water backflow preventers. Water backflow preventer devices are required for fire water systems, irrigation systems (on a dedicated water meter), systems which may change in character of use (commercial rentals, etc.), gray water systems, or any plumbing system which has cross-connections or the ability to allow water of deteriorated sanitary quality to enter the public water supply. Add note to plan that device is required to be an approved domestic water backflow prevention device. (MBMC 13.08.040)
55. County Cross-Connection Inspection: Add note to plan that contractor is required to contact the County Cross-Connection Control Program to confirm prevention device location and completed test form. The contractor must provide the city a copy of the rest results. (MBMC 13.08.040)
56. Grading and Drainage: Indicate on plans the existing and updated contours, drainage patterns, spot elevations, finish floor elevation, roof downspouts, and all existing and proposed drainage pipes and structures. All runoff must be directed onto vegetated areas. (CBC 107.2.1/CRC R106.1.1)
57. Utilities: Show all existing and proposed locations of the sewer lateral, water service, and water and sewer mains on the building plans. Include sizes where appropriate. Note the location of all overhead utilities and construction underground service entrances per the CBC. See attached utility maps.
58. Underground Utilities: Per MBMC 17.48.050, All utility service lines to all new development, except single-family residences, on vacant lands (including the demolition and replacement of individual structures), and to major redevelopment projects, shall be undergrounded.
59. Easements: Identify and label all easements. Provide preliminary title report to verify all easements and property boundaries.
60. Detailed Erosion and Sediment Control Plan: Required for sites greater than 1/2 acre, or for building or other site disturbance proposed on slopes over 15%, or for projects located within critical areas. The Plan shall show control measures to provide protection against erosion of adjacent property and prevent sediment or debris from entering the City right of way, adjacent properties, any harbor, waterway, or ecologically sensitive area. It must include a written narrative, detailed site plan, typical drawing and details. Guidelines for the control plan may be found on the City’s website at the following location:
https://www.morrobayca.gov/ documentcenter/view/462/
61. Stormwater Pollution Prevention Plan (SWPPP): The SWPPP is required for all sites over 1 acre. Prior to issuance of a building permit, the owner shall submit a Notice of Intent (NOI) to the State Water Resources Control Board (SWRCB) and develop a SWPPP according to the requirements of a Construction General Permit. Incorporate City of Morro
Bay Post Construction requirements to SWPPP. A copy of the SWPPP with the reference WDID shall be submitted to the City.
62. Inspections: Add note that erosion & sediment control inspections to be performed by the Public Works Department Inspector Matt Bishop at (805)772-6232.
63. Flood Zone Requirements: A Flood Hazard Development Permit is required. The City’s Flood Hazard Prevention Ordinance describes the requirements to obtain this permit.
Pertinent requirements include, but are not limited to:
a. Submit a FEMA Elevation Certificate which will indicate the base flood elevation to be used with the proposed construction drawings. (Prior to Final Sign-off, submit an Elevation Certificate to indicate the finish elevations of the completed building.) b. Verify that all mechanical and electrical machinery and controls (heating, A/C, etc.) is above BFE or flood proofed.
64. Add the following Notes to the Plans:
a. Any damage, as a result of construction operations for this project, to City facilities, i.e. curb/berm, street, sewer line, water line, or any public improvements shall be repaired at no cost to the City of Morro Bay.
b. It is the responsibility of the designer and contractor to verify all utility locations and connections for the project.
c. No work shall occur within (or use of) the City’s Right of Way without an encroachment permit. Encroachment permit application and requirements are available on the City’s website at the following location: https://www.morrobay.ca.us/197/Public-Works/. A standard encroachment permit shall be required for the proposed driveway; the driveway shall comply with B-9 (Driveway Ramps: Size & Location).
A sewer encroachment permit shall be required for any repairs or installation of a sewer lateral within the City right-of-way or within a utility easement.
A water encroachment permit and water meter application shall be required for new water meter installations within the City right-of-way. If a construction dumpster is used, the dumpster location shall be on private property, unless allowed by a temporary encroachment permit within the City right-of-way.
PLANNING CONDITIONS:
65. Permit Required: A Coastal Development Permit shall be submitted to the Community Development Department prior to the issuance of a building permit.
66. Floating Dock. The floating dock shall be publicly available for general public pedestrian access and either short-term or long-term use by recreational or commercial boats. Signs discouraging the public from walking on the docks during daylight hours are prohibited.
The dock shall be open to the general public during at least daylight hours (i.e. one hour before sunrise to one hour after sunset).
67. Twenty-five percent of hotel rooms shall be set at rates equal to the City’s area low-cost threshold pursuant to LUP Policy LU-6.5 or as otherwise approved consistent with the Coastal Development Permit. The low-cost threshold would be established based on the City’s Lower Cost Visitor Serving Accommodations Technical Memorandum, or Smith
Travel Research data or not to exceed 75 percent of the prior year’s statewide average daily rate.
68. Eelgrass Survey Required. Applicant shall be subject to the California Eelgrass Mitigation Policy (CEMP) which requires that a pre-construction survey shall be completed within 30 to 60 days prior to issuance of a building permit. A post-construction survey shall be completed within 30 days of construction completion or as otherwise determined by the National Marine Fisheries Service (NMFS) to determine amount of impact if any and CEMP-required annual reporting and mitigations. Any eelgrass habitat shall be documented and reported to the Community Development Director. If the report identifies a reduction in eelgrass coverage, a plan shall be prepared to identify the appropriate mitigations necessary and in line with the specifications for mitigation of eelgrass habitat as provided for in the California Eelgrass Mitigation Policy, dated October 2014 or successor guiding document.
69. Pile Driving Activities. A Marine Wildlife Contingency Plan shall be developed and approved by the City of Morro Bay prior to the initiation of pile driving activities. This plan shall describe specific methods that will be used to reduce pile-driving noise. Power to the pile driver shall be ramped up to allow marine wildlife to detect a lower sound level and depart the area before full-power noise levels are produced. The plan shall identify a USFWS-approved biologist to monitor all construction within the water-lease area who shall be retained by the applicant. The plan shall describe on-site marine wildlife monitoring and reporting requirements as well as identify specific conditions when the biological monitor shall be allowed to stop work, such as observance of a marine mammal within 100 feet of the project area. The biologist shall be responsible to monitor for compliance with all environmental mitigation measures, and regulatory permit conditions (as applicable). The approved biological monitor shall be present onsite during construction and shall have the authority to stop construction if any individuals of southern sea otter are seen within 100 feet of the project area. Construction will be allowed to resume after sighted otters have left the 100-foot radius of the project area. The species shall not be disturbed or forced from the project site by equipment, noise, or other disruptive activity. The monitor will have discretionary authority to temporarily halt the project if it is determined that the otter, or other marine mammal, could be affected by the project, even if the animal is beyond the 100-foot boundary. All construction crew employees shall be informed on the requirements of this condition.
70. Oil Spill Response and Recovery Plan. A project-specific Oil Spill Response and Recovery Plan that includes specifics on reporting and response procedures, available on-site equipment and contracted services, and responsibilities shall be completed and approved prior to the initiation of construction activities. Specifically, the project shall include the following Best Management Practices (BMPs) and shall be included on building plans submitted for approval:
a. No refueling of equipment without adequate containment and spill response equipment. The barge shall have only double contained fuel storage below decks, with the spill containment and clean up kits on-site and easily accessible. Spill containment and clean up kits shall include the following:
b. 150 feet Absorbent Boom 200 square feet Absorbent Tarp (for use during pile driving operations)
c. Barrel Absorbent Pads
d. Container Absorbent Granules
e. Rainwater runoff pollution from equipment stored on deck shall be prevented through ongoing equipment maintenance and appropriate double containment.
f. The work area shall be contained within a boom to prevent debris from falling into the water.
g. All equipment fueling shall take place on the barge, with containment in-place. No refueling between vessels shall occur.
h. An Absorption Tarp shall be placed underneath any portable equipment while in use.
i. No equipment shall be permitted to enter the water with any petroleum products. j. All equipment used during pile driving operations shall be in good condition without fuel or oil leakage.
k. Should any equipment begin to leak, that equipment shall be removed immediately from the barge and repaired or replaced.
l. All vessels shall have portable, regularly serviced sanitation equipment. No overboard discharge is permitted.
71. Pile Driving Plan Required. Prior to issuance of a building permit, a pile driving plan and hydro acoustical noise mitigation plan shall be submitted to the Community Development Director to ensure that underwater noise generated by pile driving activities is minimized to the maximum extent feasible and does not exceed: (1) an accumulated 187 dB SEL as measured 5 meters from the source; and (2) peak dB above 208 dB as measured 10 meters from the source as determined by the Fisheries Hydroacoustic Working Group. In the instance anything other than a vibratory hammer is to be used for pile driving activities, the plan shall provide for a hydro-acoustical monitor to ensure that underwater noise generated by pile driving activities does not exceed such limits. The plan shall identify the type of method used to install pilings. Vibratory hammers shall be used where feasible; if another method is used, a bubble curtain shall be employed to contain both noise and sediment. The plan shall also provide for additional acoustical BMPs to be applied if monitoring shows underwater noise above such limits (including, but not limited to, alternative pile driving methods (press-in pile placement, drilling, dewatered isolation casings, etc.) and additional noise dampening measures (sound shielding and other noise attenuation devices).
72. Netting or Fencing. Netting or fencing around and underneath the project site shall be installed to catch and remove debris released during and after construction.
73. Turbidity-Associated Impact Mitigation. To reduce potential turbidity-associated impacts, silt screens should be used when and where they will be effective. The relatively high tidal currents within Morro Bay could reduce the effectiveness of silt screens and should be considered prior to placing of these screens.
74. Construction Hours: Pursuant to MBMC subsection 9.28.030.I, Construction or Repairing of Buildings, the erection (including excavating), demolition, alteration or repair of any building or general land grading and contour activity using equipment in such a manner as to be plainly audible at a distance of fifty feet from the building other than between the hours of seven a.m. and seven p.m. on weekdays and eight a.m. and seven p.m. on weekends except in case of urgent necessity in the interest of public health and safety, and then only with a permit from the Community Development Department, which permit may be granted for a period not to exceed three days or less while the emergency continues and which permit may be renewed for a period of three days or less while the emergency continues.
75. Dust Control: That prior to issuance of a grading permit, a method of control to prevent dust and wind blow earth problems shall be submitted for review and approval by the Building Official.
76. Architecture: Building colors and materials shall be as shown on plans approved by the Planning Commission and specifically called out on the plans submitted for a Building Permit to the satisfaction of the Community Development Director.
77. Boundaries and Setbacks: The property owner is responsible for verification of lot boundaries.
Prior to requesting foundation inspection, a licensed land surveyor shall verify lot boundaries and building setbacks to the satisfaction of the Community Development Director. A copy of the surveyor’s Form Certification based on a boundary survey shall be submitted with the request for foundation inspection.
78. Building Height Verification: Prior to foundation inspection, a licensed land surveyor shall measure and inspect the forms and submit a letter to the Community Development Director certifying that the tops of the forms are in compliance with the finish floor elevations as shown on approved plans. Prior to either roof nail or framing inspection, a licensed surveyor shall submit a letter to the building inspector certifying that the height of the structures is in accordance with the approved plans and complies with the maximum height requirements as approved for this project.
79. Inspection: The Applicant shall comply with all City conditions of approval and obtain final inspection clearance from the Planning Division at the necessary time in order to ensure all conditions have been met.
80. Conditions of Approval on Building Plans: Prior to the issuance of a Building Permit, the final Conditions of Approval for both the Conditional Use Permit and the Coastal Development Permit shall be attached to the set of approved plans. The sheet containing Conditions of Approval shall be the same size as other plan sheets and shall be the last sheet in the set of Building Plans.
81. Exterior Lighting and Illumination Plan: Exterior lighting and illumination shall comply with MBMC Section 17.14.090.B. A lighting plan including safety corridor lighting shall be identified on plans to be included with the building permit submittal. All lights shall be directed, oriented, and shielded to prevent light trespass or glare onto adjacent properties. The light level at property lines shall not exceed 0.3 foot-candles. Building plans submitted for approval shall be lighting that uses cut-off, shielded, or downward fixtures (i.e., the bulb is not directly visible) and is between 2600 and 3500 Kelvin and has a CRI of 85 or greater.
82. Vacation Rental Material Salvage and Re-Use Plan: Prior to demolition of the vacation cottage on lease site 49L, the applicant and/or his designee will submit and obtain approval for a ‘Historic Preservation Plan’ that outlines how building materials will be salvaged and re-used in the design of the proposed/new commercial/retail building on lease site 49L.
83. Design Review Permit: Prior to the issuance of a Building Permit, the applicant and/or his designee will submit and obtain approval for a Design Review Permit for the commercial/retail; building proposed on lease site 49L that is consistent with provisions outlined in the approved ‘Historic Preservation Plan.” To the greatest extent feasible, this structure shall be constructed using salvaged materials from the existing cottage and would incorporate character-defining architectural features (e.g., ship port windows, etc.) of the existing cottage. When it’s not feasible to use salvaged materials for building or fire code purposes, the Applicant shall use the most similar code-compliant materials.
84. Landscape and Irrigation Plan: A Landscape and Irrigation Plan consistent with MBMC Section
17.14.090.C shall be included with the building permit submittal.
85. Pocket Park Completion. The pocket park shall be completed and open to the public prior to the issuance of the first certificate of occupancy. A plaque and/or informational stand in memory of Reg Whibley shall be included within the boundaries of the pocket park.
86. Historical Interpretive Signs. Historical interpretive sign copy shall be reviewed and approved by the Community Development Director prior to issuance of the first certificate of occupancy.
87. Landscape and Irrigation Completion. Landscaping shall be fully installed and appropriately irrigated prior to the issuance of the first certificate of occupancy and must be maintained in a thriving condition at all times.
88. Trash Receptacles. A minimum of five trash cans with self-closing lids or other bird deterrent as approved by the Community Development Director shall be identified on plans to be included with the building permit submittal. It is the responsibility of the building tenant(s) to establish trash pickup accounts and services.
89. Bicycle Racks. A bicycle rack with a minimum capacity of holding eight (8) bicycles shall be installed within the pocket park and placed so as not to impede public pedestrian flow. The location and brand of bicycle rack shall be included with the building permit submittal. The bicycle racks shall be consistent with other city facilities or as otherwise approved by the Community Development Director.
90. Tables, Chairs and Benches. A minimum of four (4) public tables and 16 chairs, as well as three (3) public benches shall be available for general public use and shall be located in the general public plaza as indicated on the approved plans. It is the responsibility of the developer or his designee to ensure that theft or damage of these items are replaced within 14 days to the satisfaction of the Community Development Director.
91. Signage. Any new signage will require a master sign program and/or sign permit from the Community Development Director. Signs must be permitted and installed prior to each tenant receiving a certificate of occupancy.
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on this 28
rd day of January, 2025, on the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSE:
CARLA WIXOM, Mayor
ATTEST
DANA SWANSON, City Clerk
ACTION MINUTES – MORRO BAY PLANNING COMMISSION
REGULAR MEETING – NOVEMBER 19, 2024
VETERANS MEMORIAL HALL – 6:00 PM
PRESENT: Bill Roschen Chairperson
Mike Rodriguez Vice-Chairperson
Joe Ingraffia Commissioner
Asia King Commissioner
Eric Meyer Commissioner
STAFF: Airlin Singewald Community Development Director
Kim Fowler Planning Manager
Susana Toner Assistant Planner
ESTABLISH QUORUM AND CALL TO ORDER
MOMENT OF SILENCE / PLEDGE OF ALLEGIANCE
https://youtu.be/OJywMPiowr4?t=66
PLANNING COMMISSIONER ANNOUNCEMENTS
None
PUBLIC COMMENT PERIOD
https://youtu.be/OJywMPiowr4?t=110
Martin Lomeli, Morro Bay, spoke about Reg Wibley, he supports the project before the commission tonight, and agreed the cottages on-site aren’t worth saving. He also supports the project at 900 Ridgeway.
Judy Stewart, Morro Bay, commented on the house at 900 Ridgeway, she’s concerned about asbestos if the house is moved and that it’s not on any historical register being that it’s 100 years old.
Betty Winholtz, Morro Bay, presented a slide show on Public Street Trees for Morro Bay, highlighting the Trimming Height Criteria.
Richard Stewart, Morro Bay, commented on the parcel map and number of lots at 900 Ridgeway, he is concerned about the potential of having more than one neighbor at the location.
AGENDA ITEM: A-2
DATE: 1-21-2025
ACTION: DRAFT
ACTION MINUTES – MORRO BAY PLANNING COMMISSION
REGULAR MEETING – NOVEMBER 19, 2024
Chairperson Roschen closed the public comment.
https://youtu.be/OJywMPiowr4?t=788
Public Participation:
Remote public participation is allowed in the following ways:
• Community members are encouraged to submit agenda correspondence in advance of the meeting via email to the Community Development office at [email protected] prior to the meeting. • Members of the public may watch the meeting either on cable Channel 20 or as streamed on the City website.
• Alternatively, members of the public may watch the meeting and speak during general Public Comment or on a specific agenda item by logging in to the Zoom webinar using the information provided below. Please use the “raise hand” feature to indicate your desire to provide public comment. Each speaker will be allowed three minutes to provide input.
Please click the link below to join the webinar:
➢ https://us02web.zoom.us/j/82722747698?pwd=aWZpTzcwTHlRTk9xaTlmWVNW RWFUQT09
Password: 135692
Or Telephone Attendee: (408) 638-0968 or (669) 900 6833 or (346) 248 7799; Webinar ID: 827 2274 7698; Password: 135692; Press * 9 to “Raise Hand” for Public Comment
PRESENTATIONS
A. CONSENT CALENDAR
A-1 Approval of the minutes from the Planning Commission meeting of October 15, 2024.
Staff Recommendation: Approve minutes as submitted.
MOTION: Commissioner Meyer moved to approve minutes. Commissioner Rodriguez seconded, and the motion passes 5-0, with King, Roschen, Ingraffia, Meyer and Rodriguez voting yes.
B. PUBLIC HEARING
B-2 Case No: Coastal Development Permit CDP24-001 and Parcel Map PAR23-02 Site Location: 900 Ridgeway, Morro Bay, CA
Proposal: Coastal Development Permit (CDP24-001) and Parcel Map (PAR23- 02) for a three-lot subdivision. The project will include moving the existing residence to the same proposed lot as the existing art studio. This project is located in the Single Family Residential (RS-A) zoning district and is outside of the coastal appeals jurisdiction.
CEQA: Exempt under Section 15315, Class 15 for Minor Land Subdivisions.
Staff Recommendation: Recommendation to Planning Commission for approval with attached conditions
ACTION MINUTES – MORRO BAY PLANNING COMMISSION
REGULAR MEETING – NOVEMBER 19, 2024
Staff Contact: Susana Toner, Assistant Planner, 805-772-6270, [email protected]
Susana Toner, Assistant Planner, presented the staff report.
Commissioners presented questions and comments to staff.
Staff, including Cindy Cecil, City Engineer, answered questions to the commissioners.
Andrew Darrell, MBS Land Surveys, agent to the applicant, answered questions to the commissioners.
Randy Ramsay, Applicant, commented on the buildings and how they intend to preserve what they can.
Chairperson Roschen opened the Public Comment Period.
https://youtu.be/OJywMPiowr4?t=2564
Betty Winholtz, Morro Bay, commented on the uniqueness of the buildings and is concerned with the staircase.
Richard Stewart, Morro Bay, asked if a T.E.M test had been done regarding asbestos.
Michelle Leicester-Cadaret, Morro Bay, appreciates the preservation of the buildings, wondered if the proposed 3 lots could be 2 instead.
Staff addressed the public questions.
Chairperson Roschen closed the public comment.
https://youtu.be/OJywMPiowr4?t=2785
MOTION: Commissioner Meyer moved to approve staff recommendation for approval with attached conditions. Vice-Chairperson Rodriguez seconded the motion, and the motion passes 5-0, with Ingraffia, Rodriguez, Meyer, King and Roschen voting yes.
B-1 Case No.: CUP24-04
Site Location: 431, 451, and 495 Embarcadero Road, Morro Bay, CA Project Description: Request for Planning Commission approval for a development and redevelopment of City lease sites 49 L 49 W, 50 L 50 W, 51 L 51 W, and 52 L 52 W to include the renovation of an existing office building, demolition of existing vacation rental buildings, and construction of a new tw0-story building with eight (8) vacation rentals. A new water area will include one (1) new floating dock, (3) new finger slips, and one (1) finger dock space with a low floating dock for a kayak rental business. A new Harborwalk connection is proposed to connect pedestrians along the Embarcadero to Tidelands Park. This property is in the Waterfront (WF) zoning district and is within the California Coastal Commission original permit jurisdiction.
CEQA Determination: Exempt under Section 15332, Class 32 for In-Fill Development Projects.
ACTION MINUTES – MORRO BAY PLANNING COMMISSION
REGULAR MEETING – NOVEMBER 19, 2024
Staff Recommendation: Recommendation to Planning Commission for approval with attached conditions.
Staff Contact: Kim Fowler, Planning Manager, 805-772-6577, [email protected]
Kim Fowler, Planning Manager, presented the Staff Report.
Commissioners presented questions and comments to staff.
Staff answered comments and questions to the commissioners.
Paul Gillen, Leaseholder, commented on meeting the requirements that were required and requested.
Gene Doughty, project architect, thanked Betty Winholtz for her letters, and commented on what was required on the plans.
Commissioners presented questions to Mr. Doughty, and he responded with clarifications.
Chairperson Roschen opened the Public Comment Period.
https://youtu.be/OJywMPiowr4?t=4745
Michelle Leicester-Cadaret, Morro Bay, mentioned she would like the Planning Commission and Council to rethink the economics of this proposal as designed.
June Swall, Morro Bay, commented on the proposed 8 units and redesigning them, and how hotel rooms bring in more revenue plus TOT, than food and beverage services.
Margaret Carmen, commented on the proposed height restrictions of the project, and we should preserve the ambiance of our town.
Daniel McCall, owner of 456 Embarcadero Inn & Suites, commented on the proposed height and how his guests will lose their view, unsure of pocket park and observation area being of use.
Betty Winholtz, Morro Bay, commented on Tidelands Park being an attraction already, also feels the existing buildings are worth saving, feels parking is a huge issue and that the planning commission needs to listen to the public since the permit is discretionary.
Shirley Fraser, Morro Bay, stated that she agrees with others about the height restrictions, and it seems to be continuously disregarded.
Christi VanCleave, Morro Bay, commented that the existing two-story building is worth preserving and maintaining the existing windows.
Chairperson Roschen closed the Public Comment Period.
https://youtu.be/OJywMPiowr4?t=5876
Chairperson Roschen suggested a brief break.
ACTION MINUTES – MORRO BAY PLANNING COMMISSION
REGULAR MEETING – NOVEMBER 19, 2024
Meeting reconvened with general discussion, including clarifications regarding denying the project with Commissioners and Staff.
MOTION: Commissioner Ingraffia moved to deny staff recommendation for approval with attached conditions, and directing the Chairperson to review and sign a revised resolution with findings for denial. Chairperson Roschen seconded, and the motion passes 4-1, with Ingraffia, Roschen, Meyer and King voting yes, and Rodriguez voting no.
Motion was denied based on the following criteria, per Commissioner:
• Commissioner Ingraffia, no adequate community benefits, wanted to see 7 hotel rooms, and 1 preserved or reproduced to resemble Reggie Whibley’s original structure.
• Commissioner King, had issues with height & mass as it’s currently presented, would like to see with additional modifications. • Chairperson Roschen, would like to see fewer units on the second floor, and couldn’t approve the deck at the proposed scale.
• Commissioner Meyer, wanted the elevator hidden, and preferred 5 units on the first floor and two units on the second floor.
C. NEW BUSINESS
None
D. UNFINISHED BUSINESS
None
E. PLANNING COMMISSIONER COMMENTS/FUTURE AGENDA ITEMS
https://youtu.be/OJywMPiowr4?t=9575
Commissioner Meyer suggested having a meeting regarding Public Benefits.
F. COMMUNITY DEVELOPMENT DIRECTOR COMMENTS
https://youtu.be/OJywMPiowr4?t=9606
Director Singewald mentioned the December 3rd Planning Commission meeting will be cancelled, there are no items for that meeting. December 17th will have two items, and the January 7, 2025 meeting will be cancelled, and one item is scheduled for the January 21, 2025 meeting.
Chairperson Roschen mentioned he and Commissioner King would like to put together a series of housing information sessions that can be ready for the new year.
G. ADJOURNMENT
The meeting was adjourned at 8:43 pm to the next regular Planning Commission meeting at the Veteran’s Memorial Building, 209 Surf Street, on December 3, 2024, at 6:00 p.m.
ACTION MINUTES – MORRO BAY PLANNING COMMISSION
REGULAR MEETING – NOVEMBER 19, 2024
BAYSIDE LANDING AND SUITES
495 Embarcadero
morro bay, ca. 93442
Revised Project (Jan. 2025)
Revised Project Summary:
Summary: This is the project summary for the Revised Project Jan 2025. It basically includes the removal of one of the upper hotel units and construction of a commercial / retail wine bar unit on the south end of the development. This was primarily driven by the planning commission’s recommendations.
First, the APC building will be remodeled in the following ways:
1. Reconstruction of the external staircase on the main building, construct an extended sidewalk bulb out to facilitate the stairway and sidewalk.
2. The first floor will include a one public restroom located on the north side, and two restrooms for the restaurant /bar on the second floor as well as the retail spaces on the ground floor. The ground floor will also accommodate a prep kitchen for the restaurant above.
The second floor will become the beer /wine and food service equipped with a dumbwaiter to serve the food from the first floor. There will be a takeout window located on the south side which the public will have access to from the new observation/view deck.
4. A new window will be added to the first-floor west side of the building to provide pedestrian and customer experience while walking along the new HarborWalk. Stained glass windows will be
used wherever possible on the main building structure in line with the nautical theme of existing stained-glass windows.
5. The existing building has a wooden wharf on the west side however it is not open to the public due to the current construction operations.
The project as proposed will open this area as the HarborWalk and provide a new connection to Mariner Park.
6. The current configuration to access the APC building from Mariner Park is along the north side of the APC building and is only 4 feet
BAYSIDE LANDING AND SUITES
495 Embarcadero
morro bay, ca. 93442
Revised Project (Jan. 2025)
wide. The project as proposed will construct a new 10-foot wide HarborWalk from the end of the park view deck to the APC building and new HarborWalk. This new connection will vastly improve the pedestrian harbor side walkway in this area.
7. The building will retain the existing wood siding exterior and marine type appearance.
Second, the existing vacation rental buildings will be demolished and a new 2 story building with 7 vacation rentals will be constructed.
The following are highlights of the new building:
1. There are 5 units located on the first floor and 2units located on the second floor.
2. The first-floor units will have an east to west orientation while the second-floor units are angled and will have more of a north/south orientation.
3. The angled or offset units from the first floor to the second floor create better articulation for the site by eliminating a long, large flat expanse of the building.
4. Each of the units will have a deck on the west side with views of the harbor and/or southward towards Montana de Oro.
5. A connecting second floor walkway along the east side of the building to the APC building will allow for installation of one elevator unit to service the rental units, the public observation deck and new restaurant. This combination of use will provide a better layout for both the APC building and rental units as there will not be the need
BAYSIDE LANDING AND SUITES
495 Embarcadero
morro bay, ca. 93442
Revised Project (Jan. 2025)
to take additional space for a second elevator and therefore lose potential retail or other business space.
6. In addition, this second-floor walkway will be connected to a 20 foot plus wide public observation/view deck. This view deck will be accessed from four points. 1) Set of stairs on the north side of the rental building, 2) The elevator, and 3) Two from the second floor of the APC building.
The view deck will have a public seating area to allow visitors a chance to relax and enjoy the views. While there will be a “takeout” window installed to the delicatessen style light food and snacks, there will be clear signage that the area is open to the public with no purchase necessary and no wait service allowed. This is consistent with the other waterfront projects that have been approved over the years. This new public deck will only cover the second floor and will be open underneath to allow for a pedestrian view of the corridor and for vehicle loading/unloading space off the Embarcadero.
7. To be consistent with the existing APC building and current rentals, each of the proposed room doors facing the Embarcadero will be painted bright and colorful as they are now and will also have the wood siding exterior.
Third, the plan is to maintain a commercial loading wharf to support marine construction activities ongoing in the harbor. The wharf is currently rated as 60 ton load and will allow semi tractor trailer loads and
BAYSIDE LANDING AND SUITES
495 Embarcadero
morro bay, ca. 93442
Revised Project (Jan. 2025)
allow extended reach forklifts to handle loading and offloading of marine equipment.
Fourth, the existing waterside of both the APC and rental unit buildings are being used for large and small vessel tie-up with a wharf and floating docks.
The new proposed water area will include the following:
1. A new 162’ foot long, 8-foot-wide floating dock parallel to the existing wharf. This includes a long tie-up for larger boats that could include fishing or work boats.
2. 3 new 4’ x 40’ finger slips. Will allow mono hull and multi hull yachts, recreational or commercial boats to tie up.
3. One finger dock space is proposed with a low floating dock for a kayak rental business. There will be a low-profile building on the dock for the kayak office and storage space. This set up is similar in nature to the one constructed at the “Boatyard” down the street.
Fifth, the existing lease site, 49 to the south is a vacant parcel. The following are proposed improvements to this area:
1. This parcel on the land side is relatively small at 1,650 sq. ft. and our revised plan will include a large cantilevered public viewing area emphasizing the large eel grass marine life area and the southern views of the bay. It is also planned to provide some type of plaque or bronze art feature celebrating the life of Reg Whibley. There will also be numerous interpretive signage as further determined.
BAYSIDE LANDING AND SUITES
495 Embarcadero
morro bay, ca. 93442
Revised Project (Jan. 2025)
An angled HarborWalk connection can w to the Embarcadero for pedestrians to continue to Tidelands Park. This decking will conform to the current light penetration standards to enhance the promotion of enlargement, as well as the waterfront standards, specifically height and coverage. This area of the Embarcadero has a progressively smaller land side lease area to develop which significantly limits the ability of applicants to propose a feasible project. The challenges and costs associated with most of the development being supported on a pile structure as opposed to a slab on grade greatly increase the difficulty and costs. Paul Gillen and Associated Pacific are uniquely qualified and experienced to accomplish this challenge in a cost effective and timely manner. This applicant has incorporated many aspects to the project to meet the objectives of the waterfront master plan and community needs.
The applicant believes that this project overall will be a big benefit to the city and welcome redevelopment.
Attachment 5 – Applicant Renderings
Plan View
East Elevation
West Elevation
South Elevation
South Perspective
Street Scene from Embarcadero Road
Street Scene from Embarcadero Road
Street Scene from Embarcadero Road
Seagull View
AGENDA NO: 8.b
MEETING DATE: January 28, 2025
Prepared By: __AW______ Dept Review: ________
City Manager Review: __YK______ City Attorney Review: _RWS__ Staff Report
TO: Honorable Mayor and City Council DATE: January 21, 2025 FROM: Airlin Singewald, Community Development Director
SUBJECT: Request to consider an Urgency Ordinance Prohibiting the Application, Acceptance, Approval, Commencement, Establishment, Operation, Relocation, or Expansion of Grid-Scale Battery Energy Storage Systems (BESS) within the city-limits
RECOMMENDED ACTION
1. Adopt by number and title only, with further reading waived, Urgency Ordinance No. 668, entitled “An Urgency Ordinance of the City Council of the City of Morro Bay, California, Imposing a Prohibition on the Application Acceptance, Approval, Commencement, Establishment, Operation, Relocation or Expansion of Grid-Scale Battery Energy Storage Systems (BESS) within the City Limits during the Pendency of the City’s Review and Adoption of Regulations of Such Uses; and Finding the Action to be Exempt from CEQA,” prohibiting applications for grid-scale Battery Energy Storage Systems (BESS) facilities within Morro Bay city-limits for an initial period of 45 days (4/5 vote required).
2. Direct staff to return to Council at the regularly scheduled February 25, 2025 Council meeting with an Ordinance extending the BESS urgency ordinance to January 28, 2027.
ALTERNATIVES
1. Direct staff to make amendments to the attached urgency ordinance, including proposed findings, before adopting by a 4/5 vote.
2. Do not adopt an urgency ordinance to prohibit grid-scale BESS facilities within Morro Bay city-limits, and instead provide staff with alternative direction.
FISCAL IMPACT
Staff prepared the attached urgency ordinance and this staff report with assistance from the interim City Attorney. The Community Development Department completed this work effort with its existing FY 2024-25 budget.
BACKGROUND
On November 12, 2024, the City Council held a discussion on the City’s history and current status with BESS facilities, local and state policies regarding alternative energy certification, and the Council’s options for possible next steps, which included the potential for adopting an urgency ordinance related to BESS facilities.
BESS facilities are an emerging technology, and as a result the City’s zoning code does not include a land use classification, policies, or standards for regulating BESS facilities. During the November 12, 2024 City Council meeting, residents voiced their concerns regarding the potential development of BESS facilities in Morro Bay, and the City Council voted (4-0) to direct staff to prepare an urgency ordinance to address growing concerns with BESS facilities while the City continues to study the safety and feasibility of such a use within the city-limits.
Since Vistra Energy proposed a 600-megawatt BESS facility on the powerplant property, members of the community have consistently raised significant concerns regarding the safety of grid-scale BESS facilities. These concerns have been raised during public comment at Planning Commission and City Council meetings, in written correspondence to City staff, elected officials, and advisory board members, and as written comments on the Draft Environmental Impact Report for the proposed Vistra project.
These concerns have intensified and been reinforced by recent events at Vistra’s grid-scale BESS facility in Moss Landing. On January 16, 2025, a major fire broke out at Vistra’s BESS facility in the community of Moss Landing, prompting evacuations and highway closures in Monterey County.
Public comments have also underscored Morro Bay’s unique vulnerability to fire, explosion, and contamination hazards that could potentially occur at a grid-scale BESS facility. Morro Bay is a compact urban community, with dense residential neighborhoods and small lots in close proximity to one another, and contains sensitive environmental resources, including a bay and estuary with rich biodiversity.
The staff report for the November 12, 2024 City Council consideration of a potential BESS urgency ordinance is provided at the link below.
https://pub-morrobay.escribemeetings.com/filestream.ashx?DocumentId=2440
DISCUSSION
The purpose of an urgency ordinance is for a local agency to temporarily prohibit a land use that the agency deems potentially harmful to the public, while it further studies the identified land use and contemplates permanent regulations to protect public health and safety.
With a 4/5 vote, an agency may adopt an urgency ordinance with an initial effective period of 45 days. If the agency publishes a public notice for the initial adoption of the urgency ordinance, then the agency may (during the initial 45-day effective period) extend the urgency ordinance for another 22 months and 15 days (2 years total). If the agency does not provide public notice, then the urgency ordinance may be extended another 10 months and 15 days (1 year total).
The proposed BESS urgency ordinance was noticed and therefore may be extended for 2 years (until January 28, 2027). Staff recommends the Council direct staff to return at the February 25, 2025 Council meeting with an ordinance extending the proposed urgency ordinance to January 28, 2027. During this 2-year period, staff would present the Council with a report on the impacts of BESS facilities and seek direction on permanent regulations to either prohibit or regulate BESS facilities. Such regulations would require hearings before the Planning Commission, City Council, and potentially the Coastal Commission. The November 12, 2024 City Council staff report provides greater detail on the options for a permanent ordinance, including pros and cons of each.
An urgency ordinance would not prevent a BESS project from obtaining State approval to locate in Morro Bay through the California Energy Commission’s AB 205 Opt-in Certification program.
This is because AB 205 includes provisions that allow for an override of local zoning.
Required Findings
Government Code § 65858(c) describes the required findings for an urgency ordinance:
The legislative body shall not adopt or extend any interim ordinance pursuant to this section unless the ordinance contains legislative findings that there is a current and immediate threat to the public health, safety, or welfare, and that the approval of additional subdivisions, use permits, variances, building permits, or any other applicable entitlement for use which is required in order to comply with a zoning ordinance would result in that threat to public health, safety, or welfare.
The attached Ordinance No. 668 contains the appropriate findings to satisfy this requirement.
These findings include, but are not limited to, the following:
1. The City of Morro Bay does not have land use policies or standards in place to regulate the location and operation of BESS facilities within the city-limits that would address compatibility with surrounding uses and safety, amongst other issues. An urgency ordinance would provide the City sufficient time to study the impacts of BESS facilities and develop the necessary regulations to protect the public health, safety, and welfare.
2. During public comment at City Council and Planning Commission meetings, Morro Bay residents have expressed significant concerns regarding the safety of BESS facilities in general, and specifically in proximity to residential and visitor serving commercial uses. These concerns have included (but are not limited to) fire and explosion hazards and resulting impacts to the economy, environment, and water supply.
3. On January 16, 2025, a major fire broke out at a BESS facility in the community of Moss Landing, prompting evacuations and highway closures in Monterey County.
4. The City of Morro Bay’s compact urban form, relatively dense residential neighborhoods and small lots in close proximity to one another, and sensitive environmental resources make it uniquely vulnerable to hazards from major fires, explosions, and toxic smoke plumes from a BESS facility.
5. There have been several recent fires at BESS facilities both in California and nationwide. BESS facilities that use lithium-ion batteries can create particularly unique fire and explosion hazards. Certain conditions, such as impact, puncture, overcharging, or mechanical damage can elevate the risk of fire and thermal runaways.
6. On October 7, 2023, the Governor of California signed into law Senate Bill 38 (SB 38), which requires every BESS facility in California to establish an emergency response and emergency action plan for the facility to protect surrounding residents, neighboring properties, emergency responders, and the environment.
7. The potential for the development of new grid-scale BESS facilities within Morro Bay without adequate land use policies and standards in place to implement SB 38 and to prevent potentially catastrophic interference with nearby land uses presents a current and immediate threat to the public’s safety and welfare.
CONCLUSION
The attached urgency ordinance would prohibit applications for future BESS projects in the City for 45 days. Since public notice was provided for the attached urgency ordinance, the City may extend the urgency for another 22 months and 15 days (2 years total). Staff recommends the Council direct staff to return to Council on February 25, 2025 with an ordinance to extend the urgency ordinance to January 28, 2027. During this time period, staff will continue to study the effects of BESS facilities and seek Council direction on permanent regulations for grid-scale BESS facilities. Such regulations may include a permanent prohibition of grid-scale BESS facilities or development standards governing the location, design, and permit requirements for future BESS projects.
Neither an urgency or permanent City ordinance would prevent a BESS facility from obtaining State approval to locate in Morro Bay through the California Energy Commission’s AB 205 Opt-in Certification program, which allows for an override of local zoning.
ATTACHMENTS
1. Proposed Urgency Ordinance No. 668
ORDINANCE NO. 668
AN URGENCY ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA
IMPOSING A PROHIBITION ON THE APPLICATION ACCEPTANCE, APPROVAL,
COMMENCEMENT, ESTABLISHMENT, OPERATION, RELOCATION OR EXPANSION
OF GRID-SCALE BATTERY ENERGY STORAGE SYSTEMS (BESS) WITHIN THE CITY LIMITS DURING THE PENDENCY OF THE CITY’S REVIEW AND ADOPTION OF REGULATIONS OF SUCH USES; AND FINDING THE ACTION TO BE EXEMPT FROM CEQA
T H E C I T Y C O U N C I L
City of Morro Bay, California
WHEREAS, the City of Morro Bay, California (“City”) is a municipal corporation, duly organized under the constitution and laws of the State of California; and
WHEREAS, in general, a Battery Energy Storage Systems (“BESS”) facility collects energy from the grid, stores it, and then discharges that energy later to provide electricity or other grid services when needed, typically at times of high demand; and
WHEREAS, there is a growing demand for BESS facilities in the state of California due to increased demand for renewable electricity to reach the State’s clean energy goals and mechanisms to ensure reliability of the State’s electric system, among other things; and
WHEREAS, the City does not have land use policies or standards in place to regulate the location and operation of BESS facilities within the City limits which would address compatibility with surrounding uses and safety among other issues; and
WHEREAS, the City has previously received one specific request to locate a grid-scale BESS facility on the waterfront of the City limits, which resulted in the City and the applicant spending significant time and financial resources processing the permit application; and
WHEREAS, during the application review process for the proposed BESS facility within the City limits, residents from the community expressed significant concerns regarding the safety of BESS facilities in general, and specifically in proximity to residential and visitor serving commercial uses; and WHEREAS, on January 16, 2025, a major fire broke out at an existing BESS facility in the unincorporated community of Moss Landing, prompting evacuations and highway closures in Monterey County. The Moss Landing BESS facility is owned and operated by the applicant for a BESS facility in Morro Bay; and WHEREAS, there have been several recent fires at BESS facilities both in California and nationwide. BESS facilities that use lithium-ion batteries create particularly unique fire and explosion hazards. Information suggests that lithium-ion batteries are potentially safe and stable when installed properly, however certain conditions elevate the risk of fire and thermal runaways, such as impact, puncture, or mechanical damage, overcharging, overheating, and/or short circuits; and
WHEREAS, the City of Morro Bay’s compact urban form, relatively dense residential neighborhoods and small lots in close proximity to one another, and sensitive environmental resources make it uniquely vulnerable to hazards from major fires, explosions, and toxic smoke plumes from a BESS facility; and WHEREAS, the City’s waterfront area is a major tourist attraction and revenue generator for the City; and WHEREAS, a catastrophic event at a BESS facility in the City limits would threaten the City’s budget and local economy, which depend significantly on Morro Bay as a tourist destination; and WHEREAS, on October 7, 2023, the Governor of California signed into law Senate Bill 38 (“SB 38”), which amends California Public Utilities Code Section 761.3 to address safety concerns with BESS projects. SB 38 requires every BESS facility in California to establish an emergency response and emergency action plan for the facility to protect surrounding residents, neighboring properties, emergency responders, and the environment. Furthermore, the BESS facility owner or operator must coordinate with local emergency management agencies, unified program agencies, and local first responders to develop the plan, and submit the plan to the county where the facility is located. Page 75 of 99 Currently, the City of Morro Bay does not have procedures or standards to facilitate interagency coordination with the County of San Luis Obispo and other response agencies; and WHEREAS, SB 38 recognizes the many hazards that BESS facilities can create, providing that the mandated emergency response and action plan may consider responses to potential offsite impacts such as poor air quality, threats to municipal water supplies, water runoff, and threats to municipal waterways. The plan may also include procedures related to shelter-in-place orders and road closure notifications. The City does not currently have any procedures or standards for addressing potential offsite impacts associated with BESS facilities; and WHEREAS, on June 30, 2022, the Governor of California signed into law Assembly Bill 205 (“AB 205”), which expands the California Energy Commission’s (“CEC”) powerplant siting authority to certain renewable energy facilities, including energy storage systems defined in California Public Utilities Code Section 2835 capable of storing 200 megawatt-hours or more of electrical energy; and
WHEREAS, pursuant to AB 205, as codified in California Public Resources Code Division 15, Chapter 6.2, an applicant proposing to build a qualifying energy facility may file an “opt-in application for certification,” with the CEC, and the CEC’s permitting authority over the proposed project is “in lieu of any permit, certificate, or similar document required by a state, local, or regional agency, or federal agency, to the extent permitted by federal law, and for those facilities;” and
WHEREAS, in reviewing opt-in projects, the CEC functions as the Lead Agency for the purposes of California Environmental Quality Act (“CEQA”) review. In certifying an opt-in project, the CEC must make certain findings; and WHEREAS, in the fall of 2024, the previously mentioned applicant informed the City that it intends to opt into the CEC certification process set forth in AB 205, and requested to pause its application for municipal consideration of local entitlements by the City of Morro Bay; and
WHEREAS, while this particular project may no longer require local entitlement approvals, if the applicant withdraws its application with the City and applies for opt-in certification with the CEC, there remain significant public safety concerns that must be analyzed prior to any BESS proposal moving forward within the City limits, whether at the power plant property site or elsewhere in the community; and WHEREAS, the potential for the development of new grid-scale BESS facilities in the City limits without adequate land use policies and standards in place to implement SB 38 presents a current and immediate threat to the public’s safety and welfare, and the approval of land use entitlements for such a use would result in that threat to public safety and welfare because BESS facilities could result in potentially catastrophic environmental, safety, and economic impacts; and
WHEREAS, California Government Code Section 65858 provides that, without following the procedures otherwise required prior to the adoption of a zoning ordinance, an urgency measure in the form of an interim ordinance may be adopted by a four-fifths vote of the City Council to protect the public from a current and immediate threat to the public health, safety, or welfare resulting from a contemplated zoning proposal. Government Code Section 65858 further provides that such an urgency measure shall be effective for only 45 days following its adoption, but may be extended beyond the initial 45-day period, following compliance with that Section, for an additional 22 months and 15 days; and
WHEREAS, while this interim ordinance is in effect, the City intends to study and consider land use development policies and standards related to BESS facilities that should be added to the City’s General Plan and Zoning Regulations; and
WHEREAS, the City Council has conducted a public hearing during a regularly scheduled City Council meeting on January 28, 2025, and considered all written and verbal comments, as well as the report and presentation from staff.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Morro Bay, California:
Section 1: Incorporation of Recitals. The City Council of the City of Morro Bay finds that all Recitals are true and correct and incorporated herein by reference.
Section 2: Urgency Findings. The City Council of Morro Bay hereby finds that there is a current and immediate threat to the public health, safety, and/or welfare and a need for immediate preservation of the public peace, health, or safety that warrants this urgency measure, which finding is based upon the facts stated in the Recitals above, and in the staff report dated January 28, 2025, as well as any oral and written testimony at the January 28, 2024 City Council meeting. Page 76 of 99
Section 3: Interim Moratorium on Grid-Scale Battery Energy Storage Systems.
A. Definition of Battery Energy Storage System:
For purposes of this interim ordinance, a Battery Energy Storage System (BESS) facility is an electrochemical device that charges or collects energy from the grid or a distributed generation system (e.g., power plant) and then discharges that energy at a later time to provide electricity or other grid services when needed. BESS facilities can be small-scale “Behind-the-Meter” facilities that are customer-sited stationary storage systems that are connected to the distribution system on the customer’s side of the utility’s service meter. In contrast, larger grid-scale “Front-of-the-Meter” facilities are on the utility side of the meter. “Front-of-the-Meter” facilities typically include large-scale energy generation and storage facilities like power plants, wind farms, solar parks, and large-scale energy storage systems. The proposed interim ordinance prohibits grid-scale “Front-of-the-Meter” BESS facilities.
B. From and after the date of enactment of the interim ordinance, the establishment, construction, and operation of new grid-scale “Front-of-the-Meter” Battery Energy Storage Systems is prohibited within the city limits of the City of Morro Bay, and no use permit, variance, building permit, business license, or any other entitlement for this type of use shall be approved or issued for the establishment, construction, or operation of a BESS facility for any location or property, public or private, within the city limits of the City of Morro Bay.
Section 4: Exclusions. The provisions of this interim ordinance shall not apply to individually owned singlefamily residential battery storage, multifamily residential battery storage, or otherwise ancillary battery storage uses that are “Behind-the-Meter” primarily used to meet single customer onsite energy storage needs.
Section 5: Compliance with the California Environmental Quality Act (CEQA). This interim ordinance is not subject to CEQA (Public Resources Code Section 21000 et seq.) pursuant to CEQA Guidelines (California Code of Regulations, Title 14, Section 15000 et seq.) Section 15060(c)(2) [activity will not result in a direct or reasonably foreseeable indirect physical change in the environment]. Additionally or alternatively, this interim ordinance is exempt from CEQA under CEQA Guidelines Sections 15061(b)(3) [it can be seen with certainty that there is no possibility the activity in question may have a significant effect on the environment], 15307 [Class 7, categorical exemption for regulatory activity to assure the protection of natural resources], and 15308 [Class 8, categorical exemption for regulatory activity to assure the protection of natural resources]. Further, this interim ordinance is exempt from CEQA pursuant to Public Resources Code Section 21080(b)(4) and CEQA Guidelines Section 15269(c) because it prevents a clear and imminent danger that requires immediate action to prevent or mitigate the loss of, or damage to, life, health, property, and essential public services.
Section 6: Severability. If any sections, subsections, sentences, clauses, phrases, or portions of this Ordinance are for any reason held invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this and each section, subsection, phrase, or clause of this Ordinance whether or not any one or more sections, subsections, phrases, or clauses may be declared invalid or unconstitutional on their face as applied.
Section 7: Term and Effect. This interim Ordinance is urgently needed for the immediate preservation of the public health, safety or welfare, and shall become effective immediately upon its adoption pursuant to California Government Code Section 36937, and shall be of no further force and effect forty-five (45) days following the date of its adoption unless earlier repealed by the City Council or extended in accordance with the provisions set forth in California Government Code Section 65858.
///
///
I HEREBY CERTIFY THAT the foregoing ordinance was INTRODUCED, ADOPTED, and PASSED as an urgency measure by a four-fifths vote and ORDERED published at a regular meeting of the City Council held on January 28, 2025, and passed by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN
RECUSE
______________________________
CARLA WIXOM, Mayor
ATTEST:
_____________________________
DANA SWANSON, City Clerk
Prepared By: _YK _______Dept Review: ______
City Manager Review: __ YK______ City Attorney Review: _RWS_____ Staff Report
TO: Honorable Mayor and City Council DATE: January 21, 2025 FROM: Yvonne Kimball, City Manager
SUBJECT: Update on Fiscal Year (FY) 2023-24 and 2024–25 City Council Goals and Action Items
RECOMMENDED ACTION
Receive a progress report on the City Council goals and action items and provide direction on remaining items.
ALTERNATIVES
None
FISCAL IMPACT
There is no immediate fiscal impact related to the recommendation, however, many of the action items have associated fiscal impacts, some of which will result in costs to the City and other items may bring revenue enhancements to the City.
BACKGROUND/DISCUSSION
In April 2023, the Council adopted a set of goals, goals statements and short-term action items following a deliberated process.
The Council adopted four goals for FY 2023-24 and FY 2024-25:
1. Public Infrastructure
2. Economic Vitality
3. Housing / Homelessness Response
4. Community Engagement
Each of the goals have several corresponding action items. Together there are 27 short-term action items. As of December 2024, all but six action items have been considered completed or nearly completed. Some action items have evolved into more defined subsets of action plans, which would need further work and are recommended to be considered in the upcoming FY 2025- 2027 goal setting process.
As of December 2024, we have completed 15 action items, with 7 nearing completion and 5 are in progress. Details are as follows:
Public Infrastructure
AGENDA NO: 9.a
MEETING DATE: January 28, 2025
Street Paving: The City Council continues to prioritize street paving and allocated significant funding in the FY 25 budget to support this. During the 2-year goals period, City has completed numerous street paving projects:
$1.4 million paving project completed in August 2023, including portions of Quintana and South Bay Blvd.
Radcliff neighborhood street repairs completed in 2024 Greenwood, Bolton, Laurel, Cuesta neighborhood street repairs completed in 2024 Jamaica, Panorama, Island, Tide neighborhood street repairs completed in 2024 Rehabilitation of Police Parking Lot and Lila Keiser Park Parking Lot completed in April 2024
Bi-weekly Public Works Maintenance crew pothole and patch digout repairs (ongoing) Tuscan Road slide stabilization and road repair project completed in December 2024 The $4.5 million pavement rehabilitation project is currently in progress. This is likely the largest City paving project and is anticipated to be completed by April 2025. Capital Needs Assessments: This goal initially included two projects: 1) an assessment of harbor facilities, and 2) an assessment of all other city facilities including parks, City buildings, and other infrastructure. This second project was removed in order to prioritize resources to support the first project. As such, the City combined resources for both projects to focus solely on an assessment of the revetments supporting the harbor. This project is nearing completion.
The City’s consultant, Brady Engineering, prepared a draft revetment assessment report which was reviewed by staff in November. The final report and cost estimate is expected in early 2025. The assessment report is needed to support the City’s Congressional funding request for harbor revetment repairs as its condition has exacerbated since the 2023 heavy storms.
Update Council Chambers: This goal includes two projects: 1) audio visual (AV) upgrades, and 2) implementation of a web-based agenda management system for closed captioning and improved accessibility for visually impaired. On October 8, 2024, the City Council communicated its desire to receive detailed cost information about AV system options. The City released an RFP for the development of AV system design options and their cost estimates. Staff expects to bring to City Council in February a request to approve a consultant contract to fully develop three design alternatives. The City Council will have the opportunity to select for implementation a design alternative at their meeting in April; purchase and installation of the system will occur subsequently. For the second project, the City Clerk’s office led the transition to a web-based meeting management system, eScribe. It has been successfully in use for City Council meetings since early 2024 and will be rolled out for advisory body meetings in 2025. In addition to enhanced accessibility features, this new system also improves efficiency in the production of meeting agendas and staff reports. Complete Development Impact Fee Study. This project is underway. Due to priority changes such as storm recoveries and personnel transitions, this project has been delayed. It is anticipated to be completed in June 2025. Additionally, the Finance Department has initiated a user fee update study.
Public safety needs assessment: This is nearing completion. The Community Risk Assessment and the Standards of Cover report include assessment of all three public safety departments: Fire Department, Police Department and Harbor Department. The Fire Department report is expected by the end of January. The Police and Harbor information is
anticipated in March.
Prioritize storm recovery efforts, maximizing FEMA/insurance opportunities, and hazard mitigation grants. The City has done well on this goal. City completed several storm system improvement projects, including, Elena/Juniper Emergency Storm Drain Repair project, Sequoia Court Emergency Storm Drain Repair project, and Ironwood Storm Drain Replacement project. We also repaired Harbor docks damaged by the storms and applied/ received $660,000 in insurance reimbursements. Lastly, we applied and have been awarded an OES grant for a study of Morro Creek watershed study. Improving streetscape with road striping, parking lines and curb painting. This is an ongoing effort that has seen great progress. Examples of completed projects are: Completed Local Roadway Safety Plan project and a Speed Survey which helped to identify priority areas and pave the way for funding opportunities; installed a flashing crosswalk sign; re-striped crosswalk by PD; completed two grant-funded EV Charging stations, Rehabilitation of Police Parking Lot and Lila Keiser Park Parking Lot, and corrected sidewalk ADA deficiencies in downtown Morro Bay and Atascadero Road. The City’s Engineering and Maintenance Divisions also completed a variety of park improvement projects, including tennis court rehab, pickleball court resurfacing, and Franklin Park improvements. These park improvements enhance safety and overall enjoyment of the city.
Economic Vitality
Monitor and stay engaged in Offshore Wind (OSW). Completed and ongoing. City Council has formed a sub-committee. The Mayor, Council Members and staff stay engaged with many federal and local agencies on OSW discussions. City partners with SLO county in the OSW related assessment studies. The Harbor Vitality Director will continue to support this goal. Pursue grant opportunities. City continues to engage state and federal lobbyists to seeking unique funding opportunities including congressional earmarks. City is considering a 2025 legislative platform to guide grant efforts. Streamline permit processing for residential and commercial development. This has been completed through the zoning code update which represents significant efforts, including adoption of the objective design standards. Here are a couple of examples illustrating efficiency: The department launched a Pre-designed ADU Program https://morrobayca.gov/1056/Pre-Designed-ADU-Program; the Building Division launched online instant permits for small-scale residential solar and energy storage systems.
This helps to lower the cost for permit applications and while increasing the speed of installing residential solar energy systems. https://morrobayca.gov/1076/Residential-Solar-Permits The following items are priorities for tonight’s discussion. Presentation of Paid Parking Study and proposed pilot program. A presentation of the 2022 parking study was provided in October 2023. At the same meeting, Council directed staff to proceed with a paid parking program at the Rock Parking Lot. Since then, staff has been working with the Coastal Commission to obtain necessary approval for a paid parking program. Concurrently, we continue to monitor congestion issues on Embarcadero, especially in the stretch from Morro Rock parking lot to Beach St. Staff’s research concurs with previous studies which find a strategy focusing on timed parking enforcement and paid parking at the Rock lot, essential to improve traffic safety and congestion issues on Embarcadero. The Police Chief leads a steering committee consisting of City staff from all departments to look into implementation details. Community stakeholders will also be included in future discussions. The goal is to concurrently implement the timed parking enforcement and paid parking at the Rock parking lot by June 30, 2025.
Market Plaza development. This topic of discussion continues to evolve. The Council directed staff to reject any and all pending proposals in Fall 2024 and return with a new request for qualification (RFQ) for Council consideration. The RFQ would consider a hospitality project that encompasses all parcels that are in the original project footprint. Given the change in Council, it would make sense to clarify the direction. Questions are: 1) does the Council want to follow the same direction? 2) If not, when should staff bring this item before the Council for a detailed discussion?
Review of City-owned properties and strategies to optimize revenues. The City owns a large real estate property portfolio. Some are occupied for long term uses, such as the library property, the Chamber/Visit Morro Bay property, and two residential rental properties. Key opportunity properties that are considered high potential would include the following: 781 Market St. and surrounding properties, 231 Atascadero Rd. (Teen Center), 160 Atascadero Rd. (old sewer plant), 535 and 595 Harbor Street, and 955 Shasta Ave.. 1130 Napa (Morro Elementary) has also been brought up for consideration of purchase. Optimization of real estate properties depends on many factors where economic conditions and political priorities all play important roles. A strategic plan for City-owned properties would be ideal. The plan would identify high potential properties and recommend options such as redevelopment, leasing, selling or maintaining based on a set of objectives provided by the City Council.
Nevertheless, an initial first step is to update City property inventory. This should be completed by April 2025. Following the portfolio update, Council can consider a strategic review and opportunity analysis to identify high-potential properties. Then Council can provide directions for redevelopment, leasing, selling or maintaining of each piece. The Council could also task CFAC and/or HAB to assist with identifying high potential properties and developing strategies to utilize them.
Additionally, an update of the Tideland Lease Management Policy has been brought up by Council members. Moving forward, it is recommended to consider and prioritize all of the above in the 2025-2027 goal discussions.
Housing and Homelessness Response
All actions except the following are considered complete – Seashell Estates property. A revised application was received August 2024. Upzoning is no longer required. A hearing of the project is tentatively scheduled for February 2025. Here are some details of the proposed Seashell Estate: The Seashell Estates is a master-planned community located north of Highway 1 and west of the Bayside Care Center nursing home.
The project proposes ten (10) single family homes, ten (10) attached junior accessory dwelling units (ADUs) and ten (10) detached ADU, for a total of 30 residential units in a residential low density (RL) zone.
Identify affordable housing incentive program: This has evolved into the discussions with the Downtown Design District (DDD). The final DDD public meeting is still in the works and will be complete by spring. This has been delayed due to the consideration of BESS related urgency ordinance.
It should be noted that housing options for unhoused residents often are tied to wrap-around social services that may include, mental health care, employment support, substance abuse treatment, warming and cooling shelters. These typically are county operations and not within municipal responsibilities. While the city does not have the expertise to run these programs, we will continue to
partner with the county and grass-roots volunteer organizations. Previously, warming shelters have been explored and staff determined the City was not equipped to provide that service. However, if the opportunity arises, we will revisit and continue to collaborate with the county and non-profit volunteer networks to leverage resources and support social services for our residents.
Community Engagement
Significant progress has been made to all the action items. Recent addition of an Assistant to the City Manager will continue to improve staff capacity to accomplish this and other community driven goals. Develop and implement outreach and communication plan, leverage partnerships with Chamber, Visit Morro Bay, local service clubs, etc.; explore available communication tools.
Again, the hiring of an Assistant to the City Manager has greatly improved staff capacity to accomplish these community driven goals.
Conduct joint council/advisory meetings and consider advisory reports to Council. MBPD Citizens Academy, consider community outreach workshops. Citizens Academy has been hosted. Staff also hosted workshops on homelessness responses, BESS project reports, traffic study community workshops. City staff also partnered with Cal Poly graduate studies to host research workshops on topics related to climate action plans and downtown design.
Develop and implement outreach and communication plan using different formats to reach a broad spectrum of residents. Mayor and Council members have implemented a variety of programs that intend to engage a wide range of residents.
The following item is incomplete under Community Engagement:
Development Historical Preservation Ordinance using draft ordinance prepared by Historical Society as a starting point. A new ordinance requires substantial resources to develop. The DDD discussion has identified that the first achievable step is to work with the Morro Bay Historical Society to generate a list of properties of historical interest or value. The Community Development Department will present the Council with a framework for a historic preservation ordinance by June 30, 2025. The framework will outline the basic components of a potential historic preservation ordinance for Council discussion and direction to staff.
Other key milestones. In addition to the 27 goals, we also accomplished the following this past year:
Camping ordinance adoption. Noticeable improvements were made along Quintana and other camp sites.
Partnership with the Fire Safe Council to conduct a hazard fuels cleanup along Quintana Road.
Partnership with San Luis Obispo County on the Alert SLO project for enhanced community notifications. This program will launch publicly on January 15th and allow the city to send nonemergency notifications to the public similar to reverse 911. Closed out WRF’s two major contracts totaling over $120 million. Completed Lift Station 1 Force Main Replacement project, which fixed a sewer leak due to an old sewer main under Highway 1.
Completed Water Tank Rehabilitation project involving six of the City’s drinking water tanks. Successfully produced the city’s 60th anniversary celebrations. Successfully hosted the 2023 and the 2024 Ironman Triathlon events. Continued to partner with private partners to improve the city’s broadband fiber-optic infrastructure. We are one of the most “fiber connected” cities on the Central Coast. Negotiated and entered into 3-year contracts with all bargaining groups. Addressed the results of the 2023 Compensation Study.
Recruitment of three director positions and four manager level positions. All recruitments were
done through in-house resources.
Implemented electronic and paperless filing of campaign disclosure statements and statements of economic interest. Soft launch a web based Public Records Act request platform, streamlining and improving efficiency for review and release of requested record.
Continued implementation of electronic signatures for contracts and correspondence for improved efficiency and record keeping.
Conducted 2024 election, produced candidate orientation, continued New Council orientation and onboarding.
Also notable is a full list of existing or unfinished priorities from previous cycles that staff must address.
Examples are:
Waterfront Master Plan update
WRF remaining tasks: IPR, decommissioning
3300 Panorama project processing
Water supply portfolio review
BESS urgency ordinance; monitor AB 205 process at state agencies. Short term rental enforcement and implementation improvement TOT audits
Business license administration inhouse change
Fiscal Year 2025 -2027 City goal setting and strategic planning efforts.
ATTACHMENT(S)
1. FY 2023-24 & 2024-25 Goals, Goals’ Statements & Action Items
2. Progress report
3. Presentation slide deck
Goal #1: Public Infrastructure
Item # Action Items Departments Involved Lead Department DECEMBER 2024 STATUS NEXT STEPS 1) Street Paving Public Works Public Works
Bring construction management and construction contracts to City Council on 8/27/24;
prior miles stones: - with weather consideration performed small work weekly mostly in North Morro Bay. - finalized contract to enable a Contractor short-term rehab of Preston Ln. -paved PD parking lot and Lila Keiser parking
$4M MAJOR paving proceeded in December. scheduling
complications. Construction completion scheduled for April.
Crack sealing and base digouts and replacements to be
completed in January 2025. Slurry and cape seal to begin in February 2025, weather dependent. Striping to be
completed afterwork roadwork.
2) Complete Capital Needs Assessments Public Works, Harbor Public Works Review and provide comments to the consultant on the draft revetment wall assessment report when received. When the final assessment report is received, present a summary of the findings to Council.
The Brady draft harbor revetment assessment was reviewed by the City in November. The final report and cost estimate for potential projects resulting from the report is expected to be submitted in January 2025. The report will be distributed for review. Council reconsideration of priority, i.e., city facility needs, city offices best use evaluation study. 3) Complete Development Impact Fee Study Admin Svcs, Public Works, Comm Dev, Harbor, Fire, Police Admin Services Staff working with DTA (consultant) to gather all relevant data necessary for completing a study.
Provide all data to DTA by the end of Janaury 2025. Review draft report in March. Take final report to Council in April. 4) Update Council Chamber: A/V upgrades, web-based agenda management system for closed captioning and improved accessibility for visually impaired Public Works, City Clerk, IT Public Works RFP for design and installation services released on Dec., 13, 2024, closed on January 22, 2025. Staff will bring to Council a consultant contract for approval in early February. The consultant will develop three design alternatives and will implement and train staff on the Council-selected
alternative.
Once consultant is selected for design and installation services (anticipated early February), consultant will prepare detailed cost estimates for three build out scenarios, and staff will bring these scenarios to council for approval (anticipated late March). The new system will then be
ordered and installed (anticipated May-July depending on lead times of A/V hardware).
Goal Statements: (1) Assess and provide report on state of infrastructure including streets, sewer lines, sidewalks, storm drains and Harbor Infrastructure; (2) January 2023 storm response and future mitigation; (3) Repair, update and enhance Veterans Hall so it can continue to serve the community; (4) Striping program to improve sidewalks, crosswalks & accessible parking.
1/23/2025 1 of 5 Page 88 of 99
5)
Prioritize storm recovery efforts, maximizing FEMA/insurance reimbursement opportunities; Hazard mitigation / climate resiliency (grant funding opportunities)
Public Works, Admin Services,
Risk Mgmt, Comm Dev Public Works
All FEMA requested information to date has been provided.
FEMA reviews are ongoing. Five projects have been deemed ineligible due to existing damage prior to additional storm damage, one of which has been transfered to FHWA for
reimbursement and is under review. Completed milestones:
New curb and gutter installed at corner of Shasta and Pacific which resolved ongoing drainage issues; collapsed storm drain on Embarcadero at Beach was replaced in summer;
collapsed storm drain between Ironwood and Juniper, Paula and Avalon, was replaced in October; Sequoia Court Storm Drain lining/replacement was completed in November;
Storm damaged drains on Quintana near Dolly’s Donuts and on Main St. near the bike park, are scheduled to be replaced in January. Lastly, we received good news that the City has been awarded two $1 Cal OES Hazard Mitigation grants,
$287,085 for RO Treatment Plant floodproofing and
$1,008,900 for Morro Creek Watershed flood analysis and development of a flood management plan.
Ongoing effort. Continue storm drain system maintenance; implementing the new grant; seek partnership opportunities with regional agencies for solutions to lower Morro Creek issues.
6) Public safety needs assessment (Standards of Cover) Fire, Police Fire Report is expected in a few weeks.
Community risk Assessment and standards of Cover for Fire Department expected by January 30th, 2025. police and
Harbor portion expected March or April per consultant.
7) Improve streetscape with road striping, parking lines & curb painting Public Works Public Works See street paving goal above. See street paving goal above.
Not yet initiated
Underway
Nearing Completion
Complete
1/23/2025 2 of 5 Page 89 of 99
Goal #2: Economic Vitality
Item # Action Items Departments Involved Lead Department December 2024 Status NEXT STEPS 1) Market Plaza development opportunities Comm Dev, City Manager Comm Dev On October 8, 2024, Council directed staff to return to Council with a Draft RFP for review and consideration.
Staff to prepare a Draft RFP per Council direction, and present to Council for consideration of next steps.
2) Monitor and stay engaged in offshore wind development Council Sub-Committee, City
Manager, Harbor, Community
Development
City Manager
An MOU with County may be formed by the end of 2024,
regarding a grant for port feasiblity study; filling vacancies that can stay focused on this
Harbor Vitality Dir, Assistant to the CM, and the CDD are engaged.
3)
Pursue grant opportunities, including RFP for full-service grant writer & grant administration (if succerssrful); Coleman Beach area; Climate Action Plan & Waterfront Master Plan; DBW grant funding for boat ramp replacement All Finance
Utilizing grants that have been awarded; continued working with Townsend as grant resources; waterfront master plan award; Fire - two grant applications pending; Harbor / City Manager expect SLO County wind funding RFP in December
2023; City Manager connecting w/ state and federal
lobbyists re: funding for infrastructure, community facility improvements, harbor dredging.
Fire Department-SAFER grant and AFG grand from FEMA not received. Second grant from California Office of Traffic Safety was awarded and a second set of battery powered
extrication tools have been received.
4) Review of City-owned properties, strategy to optimize use or revenues.
Explore use of commercial realtor to manage commercial rental property City Manager, Comm Dev,
Harbor, Admin Svcs Comm Dev, Finance, Harbor
Ongoing. Real property discussions as needed. A few
important sites: 781 Market St., 231 Atascadero, 1130 Napa, 525 Harbor, 160 Atascadero, etc. Decision on Morro Elem.; 578 Embarcedero apt. lease update.
Ongoing and consideration of future goal setting with more defined focus. A possible consideration of lease management policy update has been brought up for the consideration of FY 25-27 city goals.
5) Streamline permit processing for residential (including ADUs) and commercial development (also supports Housing goal) Comm Dev Comm Dev Update: the Coastal Commission approved the City's Zoning Code on March 15, 2024.
Update: the Coastal Commission approved the City's Zoning Code on March 15, 2024.
6) Presentation to Council on Paid Parking Study and proposed Pilot Program; implement, as directed.
City Manager, Police
Department, Comm Dev, Harbor,
City Manager, Police (porject lead),
Harbor, Community Dev., Public
Works
obtain Coastal approval, design process, implement paid parking at Morro Rock;
Police Chief to form a parking management steering
committee in Janurary 2025; need to obtain Coastal
approval, design process, implement pilot paid parking at Morro Rock by Summer 2025
Not yet initiated
Underway
Nearing Completion
Complete
Goal Statements: (1) Pursue grant writing opportunities; (2) Evaluate opportunities for City-owned properties; (3) Streamline permit process for residential and commercial development.
1/23/2025 3 of 5 Page 90 of 99
Goal #3: Housing / Homelessness Response
Item # Action Items Departments Involved Lead Department DEC 2024 Status Next Steps 1) Housing Element Program Implementation (Housing by-right Policy and Objective Design Guidelines projects underway - $275K rec'd in grant funding) Comm Dev Comm Dev Completed as of March 15, 2024. Completed as of March 15, 2024. 2)
Review possible upzone from low density to medium or height density for the Seashell Estates property located off of Teresa Drive for possible housing project
Comm Dev Comm Dev
The Seashell Estates is a master-planned community located north of Highway 1 and west of the Bayside Care Center nursing home with a proposal of ten (10) single family homes, ten (10) attached junior accessory dwelling units (ADUs) and ten (10) detached ADU, for a total of 30 residential units in a residential low density (RL) zone. Building architecture will consist of asphalt or composite flat roof shingles that are a coherent part of the building form, and materials will include earth-toned or muted redwood or ceder siding board and wood shingles. Some might recall a Seashell housing project that ended withdrawing in 2023.
To find out how this new proposal related to the previous one, and any questions, please contact Kim Fowler
project changed; Tentative PC hearing in Febuary 2025
3) Explore achievable options at the City level (emergency warming shelters, pallet homes, etc.)
City Manager, Fire, Comm Dev,
Police City Manager
Ongoing effort can be on new opportunities, such as working with county's Homelessness "home key"program, and new
grant for encampment cleaning up.
Ongoing effort can be on new opportunities, such as working with County's Homelessness "home key" program, and new
grant for encampment cleaning up.
4) Continue participation in County's Regional Housing & Infrastructure Plan Comm Dev Comm Dev SLOCOG finalized and published the Regional Housing and Infrastructure Framework in August 2023.
SLOCOG finalized and published the Regional Housing and Infrastructure Framework in August 2023.
5) Continue participation in the County-wide 5-year Strategic Plan to address Homelessness; Homeless Outreach Case Manager
City Manager, Comm Dev,
Police, Fire City Manager
Ongoing effort can be on new opportunities, such as working with county's Homelessness "home key"program, and new
grant for encampment cleaning up.
Ongoing effort can be on new opportunities, such as working with County's Homelessness "home key"program, and new
grant for encampment cleaning up.
6) Identify affordable housing incentive program Comm Dev Comm Dev The DDD Ad-hoc Subcommittee work will culminate with a
public forum to be held in the fall of 2024- delayed due to BESS urgency ordinance option research. Comm Dev is
working with Subcommittee to organize a public forum.
The DDD Ad-hoc Subcommittee work will culminate with a
public forum to be held in early 2025. Comm Dev is working with Subcommittee to organize a public forum.
7) Speed up processing of ADU permits to increase availability of affordable housing Comm Dev Comm Dev The Pre-Designed ADUs are complete. CDD staff is finalizing the public brochure, checklist, and website announcements.
The Pre-Designed ADUs are complete. CDD staff is finalizing the public brochure, checklist, and website announcements.
Not yet initiated
Underway
Nearing Completion
Complete
Goal Statements: (1) Identify low-income housing opportunities; (2) Explore achievable options for unhoused residents; (3) Speed up processing of ADU permits 1/23/2025 4 of 5 Page 91 of 99
Goal #4: Community Engagement
Item # Departments Involved Lead Department Dec 2024 Status Next Steps 1) Leverage partnerships with Chamber, Visit Morro Bay, local service clubs and community organizations, and other event hosts All City Manager enhance partnerships through interactions with council and staff enhance partnerships through interactions with council and staff
2) Explore/assess available communication tools All City Clerk the assistant to the CM to coordinate city wide
communication needs, including website updates - rec (shortterm goal for next cycle). Has began to design surveys for next goal setting cycle 3) Conduct joint Council/advisory board meetings periodically and consider biannual or annual advisory board report to Council
City Manager, Admin Svcs,
Comm Dev, Public Works,
Harbor, Recreation & All dept
Mayor and Council complete, with the joint meeting effort will continue as necessary.
Complete, with the joint meeting effort will continue as necessary.
4) Develop Historic Preservation Ordinance using draft ordinance prepared by Historical Society as a starting point Comm Dev Comm Dev This action item will be partially addressed through the Downtown Design District recommendations to create an
inventory of character defining buildings. Comm Dev will present the Council with a framework for a historic
preservation ordinance by June 30, 2025. The framework will outline the basic components of a potential historic
preservation ordinance for Council discussion and direction to staff.
This action item will be partially addressed through the Downtown Design District recommendations to create an
inventory of character defining buildings. Comm Dev will present the Council with a framework for a historic
preservation ordinance by June 30, 2025. The framework will outline the basic components of a potential historic
preservation ordinance for Council discussion and direction to staff.
5)
Continue MBPD Citizens Academy; consider Community Academy and other opportunities for project / community outreach, including study sessions and workshops
All City Manager a citizens academy is long term goal. Hiring of the Asst to CM would enhance coordinated efforts.
a citizens academy is long term goal. Hiring of the Asst to CM would enhance coordinated efforts.
6) Develop and implement outreach and communication plan using different formats to reach broad spectrum of residents All Depts. & council members City Manager, City Clerk Hire the Assistant to the CM to coordinate website update, design and publish a variety of information flyers, coordinate cross-departmental activities, draft communication plan, manage and streamline communication actions.
Assist to CM hired.
7) Ad hoc Committee review of Planning Process Comm Dev Comm Dev Accomplished in light of zoning code adoption.
Recommending implementation and possible review in
future if necessary.
Accomplished in light of zoning code adoption.
Recommending implementation and possible review in
future if necessary.
Not yet initiated
Underway
Nearing Completion
Complete
Goal Statements: (1) Build relationships and improve the purpose of advisory bodies to attract and retain members; (2) Hold community workshops and study sessions on upcoming development; (3) Improve City website and social media presence 1/23/2025 5 of 5 Page 92 of 99
1/23/2025
1 Update on
FY 2023-24 and
FY 2024-25
City Council Goals
and Action Items
Yvonne Kimball, City Manager
January 28, 2025
2 Presentation Outline: • General update. • Key achievements. • Remaining items. • FY 2024-25 & FY 2026-27 City Goal process. 2023 -2025
1 2
1/23/2025
2 2023-2025 City Council Goals
3 • Public Infrastructure (7)
• Economic Vitality (6)
• Housing / Homelessness Response (7)
• Community Engagement (7)
A total of 27 short-term actions within 4 core areas
public infrastructure 7, 26%
economic vitality 6, 22% housing 7, 26%
community engagement 7, 26%
2023-25 City goals
public infrastructure economic vitality housing community engagement Status Update
4 15 completed:
1-Public Infrastructure, 3-Econ
Vitality, 6-Housing, 5-Comm
Engagement
7 near completion:
4-Public Infrastructure, 2-Econ
Vitality, 1-Housing, 0-Comm
Engagement
5 in progress:
2-Public Infrastructure, 2-Econ
Vitality, 0-Housing, 1-Comm
Engagement
15 7
5 Current Status
complete near complete in progress
3 4
1/23/2025
3 5
6 5
6
1/23/2025
4 7
8 7
8
1/23/2025
5 A Year in Review
9 Camping ordinance adoption. Noticeable improvements were made along Quintana and other camp sites. Partnership with the Fire Safe Council to conduct a hazard fuels cleanup along Quintana Road. Significant improvement to storm drain system, completing three storm drain repair projects. Processed and received storm related reimbursements from FEMA and insurance carrier. Closed out two major WRF contracts totaling over $120 million. Completed zoning code update and received certification by the California Coastal Commission. Ongoing street paving efforts. Recently began a $4.5 million paving project in the city. Successfully hosted the 2023 and the 2024 Ironman Triathlon events. Successfully produced the city’s 60th anniversary celebrations, as well as other city events including Senior Health Fair, Mermaid/Pirate Parade, 4th of July, Rock to Pier Run, 4 Thursdays of Tunes at Tidelands, Halloween, Holiday Tree Lighting, and Breakfast with Santa. Engaged in federal and state lobbying efforts and secured millions in funds to improve harbor and utilities infrastructure. Negotiated and entered into 3-year contracts with all bargaining groups. Addressed the results of the 2023 Compensation Study. Recruitment of three director positions and four manager level positions. All recruitments were done through in-house resources.
A Year in Review – continued
10 Transitioned into eScribe: a web-based meeting management system; implemented electronic and paperless filing of campaign disclosure statements and statements of economic interest. Engaged the community in evaluating unprecedented project applications; listening to concerns and providing realistic process roadmaps. Completed Water Tank Rehabilitation project, involving six of the City’s drinking water tanks; Completed Lift Station 1 Force Main Replacement project, fixing an old sewer leak; Completed the Local Roadway Safety Plan project. Completed a variety of park improvement projects, including tennis court rehab, pickleball court resurfacing, and Franklin Park improvements. Completed two grant-funded EV Charging Station projects. Replaced sidewalks at various locations to correct ADA deficiencies in downtown Morro Bay and Atascadero Road. Installed flashing crosswalk. Purchased and outfitted a UTV through fund raised by Friends of the Harbor Dept. Partnered with private enterprises to improve the city’s broadband fiber-optic infrastructure.
We are one of the most “fiber connected” cities on the Central Coast. Conducted new Council orientation and onboarding activities. More action milestones can be found in the January 2025 CM’s Update 9 10
1/23/2025
6 Ongoing Projects & Future Objective Considerations
11 o Decommission and reuse plan for the old sewer plant o STR ordinance revision o Business License administration change o Framework for a historical preservation ordinance o Rock paid parking plan implementation o Waterfront master plan update o Assessment of city owned buildings and optimalization of existing space o Strategic dialogues of City properties and consideration of additional properties o Possible update of master lease policy o Possible refinement of Community grant program process o Regional transportation and watershed discussions and projects o Completion of Indirect Portable water Reuse (IPR) project within required time frame o Workplace violence policy o Economic vitality programs o Engage in regional efforts to improve emergency responses, including fire prevention 2025 -2027
City Goal Process
12 11
12
1/23/2025
7 Questions?
City Purpose: • Preserve the high quality of life in Morro Bay • Provide essential public service and infrastructure to maintain a safe, clean and heathy place for residents and visors to live, work and play. 13 13