CITY OF MORRO BAY
City Council Regular Meeting Agenda
Tuesday, May 13, 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. Morro Elementary School
5. RECOGNITION AND PRESENTATIONS
5.a Emergency Medical Services Week Proclamation
5.b Public Works Week Proclamation
5.c National Safe Boating Week Proclamation
6. PUBLIC COMMENT
Members of the audience wishing to address the Council on City business matters not on the agenda may do so at this time. For those desiring to speak on items on the agenda, but unable to stay for the item, may also address the Council at this time.
Public comment is an opportunity for members of the public to provide input to the governing body. To increase the effectiveness of the Public Comment Period, the City respectfully requests the following guidelines and expectations be followed:
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Those desiring to speak are asked to complete a speaker slip, which are located at the entrance, and submit it to the City Clerk. However, speaker slips are not required to provide public comment. •
When recognized by the Mayor, please come forward to the podium to speak. Though not required, it is helpful if you state your name, city of residence and whether you represent a business or group. Unless otherwise established by the Mayor, comments are to be limited to three minutes.
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All remarks should be addressed to Council, as a whole, and not to any individual member thereof.
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The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or staff.
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Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering.
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Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting.
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• Your participation in City Council meetings is welcome and your
courtesy will be appreciated.
The Council in turn agrees to abide by its best practices of civility and civil discourse according to Resolution No. 07-19.
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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.h as submitted.
7.a Approval of Minutes
(City Clerk)
Recommended Action
Approve as submitted.
1. April 22, 2025 - Regular Council Meeting 7
2. April 22, 2025 - Special Closed Session Meeting 16
3. April 25, 2025 - Special Closed Session Meeting 18
7.b Approval of Proclamations
(City Clerk)
1. Proclamation declaring the week of May 18 - 24, 2025 as "Emergency Medical Services Week"
20 2. Proclamation declaring National Public Works Week as May 18 - 24, 2025 as "People, Purpose, Presence"
21 3. Proclamation declaring May 17 - 23, 2025 as National Safe Boating Week
22 4. Proclamation acknowledging "National Police Week" and declaring May 15, 2025 as "National Peace Officers Memorial Day"
23 5. Proclamation proclaiming May as "National Foster Care Month" 24
7.c Adoption of Ordinance No. 669 Repealing and Replacing Title 7 (Animals) of the Morro Bay Municipal Code
25 (Police Department)
Recommended Action
Adopt Ordinance No. 669 entitled, “An Ordinance of the City Council of the City of Morro Bay, California, repealing and replacing Title 7 (Animals) of the Morro Bay Municipal Code to adopt and incorporate by reference San Luis Obispo County Code Title 9 (Animals) and to retain certain city requirements regarding animals, and finding the action not subject to CEQA.”
7.d Third Quarter Investment Report (period ending March 31, 2025) for Fiscal Year (FY) 2024-25
34 (Administrative Services Department)
Recommended Action
Receive the attached Third Quarter Investment Report (period ending March 31, 2025) for FY 2024-25.
7.e Adopt Resolution No. 22-25 and Limited Duration Interim City Attorney Employment Agreement for Retired Annuitant
38 (City Manager)
Recommended Action
Adopt Resolution No. 22-25 appointing Robert Schultz to the position of Interim City Attorney and authorize the Mayor to execute the Limited Duration Interim City Attorney Employment Agreement for Retired Annuitant.
7.f Adoption of Resolution No. 23-25 Reestablishing the City's Flagpole Policy
50 (City Manager)
Recommended Action
Adopt Resolution No. 23-25 rescinding Resolution Nos. 103-22 and 104-22 and reestablishing the City’s Flagpole Policy to allow only the United States, State of California, and City of Morro Bay flags to be displayed on flagpoles located at City facilities.
7.g Adopt Resolution No. 24-25 Authorizing a Blanket Waiver of Slip Qualifications during Fishery Closures
53 (Harbor Department)
Recommended Action
Adopt Resolution No. 24-25, authorizing a blanket waiver of slip qualifications for fishery closures.
7.h Approve Lease Amendment for Morro Bay Marina Moorings 56 (Harbor Department)
Recommended Action
Adopt Resolution No. 25-25 approving Amendment #1 to the lease agreement for Mooring Zone A1-4 located at 699 Embarcadero.
7.i Adoption of Resolution No. 26-25 Approving the Engineer's Report and Declaring the Intent to Levy the Annual Assessment for the Cloisters Landscaping and Lighting Maintenance Assessment District (LLMAD) 61 (Public Works Department)
Recommended Action
Adopt Resolution No. 26-25 declaring the intent to levy the annual assessment for the maintenance of the Cloisters Park and Open Space for Fiscal Year (FY) 2025/26 and approving the Engineer’s Report.
7.j Adoption of Resolution No. 27-25 Approving the Engineer's Report and Declaring the Intent to Levy the Annual Assessment for the North Point Natural Area Landscaping and Lighting Maintenance Assessment District
90 (Public Works Department)
Recommended Action
Adopt Resolution No. 27-25 approving the Engineer’s Report and declaring the intent to levy the annual assessment for maintenance of the North Point Natural Area for Fiscal Year (FY) 2025/2026.
8. PUBLIC HEARING ITEMS
None
9. BUSINESS ITEMS
9.a Review and provide direction regarding the Economic Development Contract proposal by the Morro Bay Chamber of Commerce for Fiscal Year (FY) 25-26 and FY 26-27
106
(City Manager)
Recommended Action
Support continued partnership with the Chamber of Commerce through a partnership contract for enhanced services, including aspects of economic development, at $45,000 for Fiscal Year 2025-26, plus $2,500 matching pledge, and up to $10,000 reimbursement for authorized qualifying expenses.
9.b Selection of Veterans Hall Audio Visual Upgrade Design Alternative 129 (Public Works Department)
Recommended Action
Approve Veterans Hall Audio/Visual Design Alternative 2 for staff implementation.
10. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS
11. ADJOURNMENT
The next Regular Meeting will be held on May 27, 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
April 22, 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
Public Works Director Greg Kwolek
Community Development Director Airlin Singewald
Police Chief Amy Watkins
Fire Chief Dan McCrain
Harbor Vitality Director Chris Munson
City Engineer Cindy Cecil
_____________________________________________________________________
1. ESTABLISH QUORUM AND CALL TO ORDER
Mayor Wixom called the meeting to order at 5:32 p.m. with all members present.
2. MOMENT OF SILENCE
3. PLEDGE OF ALLEGIANCE
4. REPORTS
4.a Closed Session Report
https://youtu.be/UKe6NKfvljc?si=4ozY6kMvthMcG5qs&t=74
Interim City Attorney Schultz announced the Council held a Closed Session Meeting prior to the Regular Session with evaluation of the City Manager, (3) Property Negotiations, and Public Employment of the City Attorney. The only item discussed was evaluation of the City Manager and no reportable action was taken under the Brown Act. The remaining items will be continued to a future meeting.
2 4.b Mayor and Councilmembers' Reports, Announcements and Presentations
https://youtu.be/UKe6NKfvljc?si=Vp71di9TdWEPYnF8&t=116
4.c City Manager Reports, Announcements and Presentations https://youtu.be/UKe6NKfvljc?si=ttbqrD-3PkYHNTlN&t=795
4.d Subcommittee Reports - Verbal Update of Current Subcommittee Activities
https://youtu.be/UKe6NKfvljc?si=ZEMdvEvawMM5pW4O&t=1136 a. Water Reclamation Facility & Morro Bay / Cayucos Sanitary District JPA
b. Morro Bay Power Plant (Vistra)
c. Offshore Wind Energy
5. RECOGNITION AND PRESENTATIONS
5.a Morro Bay Chamber of Commerce Quarterly Update
https://youtu.be/UKe6NKfvljc?si=tpaXZ7x7h2xOOwb9&t=1204 Presented by Morro Bay Chamber of Commerce CEO, Dina Lundquist.
6. PUBLIC COMMENT
https://youtu.be/UKe6NKfvljc?si=nJ8C5J2nd4ExPviA&t=1702 Scott Schalde, Principal at Morro Bay High School, shared they previously polled students about the potential for a roundabout and found they were not concerned about pedestrian safety and would be supportive of a roundabout if it would improve traffic patterns. He offered seek further student input, if desired.
Kiernan Cottle, Morro Bay, offered comments.
Sugar Cliff, owner of Grandma's Mercantile on Main, expressed frustration about the impacts road construction was having on her business. Joel Silano, Morro Bay, commented on Item 9b, urging the Council to cease work on the roundabout and redirect funds to revetment repairs and other waterfront needs.
Linda Winters, Morro Bay, provided an activity update and announced Fitness Works will be accepting Men's Clothing Donations May 12 - 31. Morro Bay High School students, John Holguin and Sands Dougherty, announced an upcoming Casino Night fundraiser to support Morro Bay Football on Saturday, April 26th, at the Morro Bay Community Center.
3 Morro Bay High School student, Ion Patel, requested signage limiting access to the Cloisters playground equpment to 2 - 5 year-olds be removed.
Michelle Leicester-Cadaret, Morro Bay, requested consideration of pedestrian safety improvements at Yerba Buena and Main Streets. Heide Bea, Morro Bay, registered opposition to the Highway 1 / 41 roundabout, expressing concern about pedestrian safety. Judy Setting, Morro Bay, shared her appreciation for the students who attended tonight's meeting.
Robert Dougherty, Morro Bay High School Football Coach and P.E. teacher, added the April 26th Casino Night fundraiser is to raise money for the football team's first out of state trip to Maui.
Nattalia Merzoyan, Morro Bay, was concerned the proposed roundabout might displace the trailer park.
End of public comment.
7. CONSENT AGENDA
https://youtu.be/UKe6NKfvljc?si=MY-ywhr1qdlQ_8P-&t=3298 Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. The public will also be provided an opportunity to comment on consent agenda items.
Mayor Wixom sought Council consensus to pull Item 7.b. from the agenda and continue it to a future meeting.
The Mayor opened public comment for items on the agenda; seeing none, the public comment period was closed.
Motion by Council Member Landrum
Seconded by Council Member Luffee
Approve consent agenda item 7.a, 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. April 8, 2025 - Regular Council Meeting
b. April 8, 2025 - Special Closed Session Meeting
4 7.b Adoption Resolution No. 22-25 and Limited Duration Interim City Attorney Employment Agreement for Retired Annuitant
This item was pulled from the agenda and continued to a future meeting.
8. PUBLIC HEARING ITEMS
8.a Introduce An Ordinance Repealing and Replacing Title 7 (Animals) of the Morro Bay Municipal Code
https://youtu.be/UKe6NKfvljc?si=Y6NA4JasFjApDxF8&t=3354 Police Chief Watkins presented the report and responded to Council inquiries.
Mayor Wixom opened the public hearing and public comment for Item 8.a. https://youtu.be/UKe6NKfvljc?si=kQGyIo5kQTcGGPDU&t=4288 Betty Winholtz, Morro Bay, commented in support of sending a letter to the Board of Supervisors urging the County to increase the holding period to seven days.
End of public comment.
Motion by Council Member Eckles
Seconded by Council Member Landrum
Introduce by title only with further reading waived, Ordinance No. 669 entitled, “An Ordinance of the City Council of the City of Morro Bay, California, repealing and replacing Title 7 (Animals) of the Morro Bay Municipal Code to adopt and incorporate by reference San Luis Obispo County Code Title 9 (Animals) and to retain certain city requirements regarding animals, and finding the action not subject to CEQA.” Ayes (5): Mayor Wixom, Council Member Edwards, Council Member Eckles, Council Member Landrum, and Council Member Luffee CARRIED (5 to 0)
Motion by Council Member Eckles
Seconded by Council Member Landrum
Authorize the Mayor to sign a letter to the San Lus Obispo County Board of Supervisors expressing the City's desire for the review and changing of Title 9, Sections 9.04.002 and 9.04.006, requiring Animal Services to adopt a seven-day holding period of all impounded household pets.
Ayes (5): Mayor Wixom, Council Member Edwards, Council Member Eckles, Council Member Landrum, and Council Member Luffee CARRIED (5 to 0)
5 9. BUSINESS ITEMS
9.a City Attorney Recruitment
https://youtu.be/UKe6NKfvljc?si=3ppMKjsyavgCLG1U&t=4773 Interim City Attorney Schultz presented the report and responded to Council inquiries.
Mayor Wixom opened public comment for Item 9.a.
https://youtu.be/UKe6NKfvljc?si=m9Z4oJy3dQN2NV0j&t=5613 Betty Winholtz, Morro Bay, urged the Council to give as much respect to the City Attorney pursuit as a City Manager recruitment, using a hybrid approach that starts with professionals to get the broadest reach.
End of public comment.
Motion by Council Member Eckles
Seconded by Council Member Landrum
Direct staff to conduct the City Attorney search in-house, and concurrently seek proposals for professional recruitment firm and bring back proposals to Council to determine how to move forward.
Ayes (5): Mayor Wixom, Council Member Edwards, Council Member Eckles, Council Member Landrum, and Council Member Luffee CARRIED (5 to 0)
Motion by Council Member Luffee
Seconded by Council Member Landrum
1. Adopt Resolution No. 20-25 approving the new City Attorney Job Classification and Job Description; and
2. Adopt Resolution No. 21-25 approving updated FY 2024-25, 2025- 26, and 2026-27 Pay Schedules establishing the salary range for the City Attorney
Ayes (5): Mayor Wixom, Council Member Edwards, Council Member Eckles, Council Member Landrum, and Council Member Luffee CARRIED (5 to 0)
9.b Receive Status Update and Funding Summary of Roundabout Project and Provide Direction on Environmental Phase of Project The City Council took a brief recess at 7:21 p.m.; the meeting reconvened at 7:29 p.m. with all members present.
6 https://youtu.be/UKe6NKfvljc?si=BiFAtgrUvq9Kq91w&t=7046 Public Works Director Kwolek and Caltrans Project Manager, Paul Valadao, provided the report and responded to Council inquiries.
Mayor Wixom opened public comment for Item 9.b
https://youtu.be/UKe6NKfvljc?si=WsYmDUBZ8L0o_NNE&t=9103 Jane Heath, Morro Bay, encouraged the City to move forward with the roundabout.
Walter Heath, Morro Bay, commented in support of the roundabout, noting it meets two of the three adopted City Goals.
Cindi Cagle, Morro Bay, opposed the roundabout.
Barry Branin, Morro Bay, opposed the project, suggesting a wider intersection was needed, similar to the Hwy 41 / 101 interchange in Atascadero.
Courtney Shepler, Morro Bay, voiced her support for finishing the work that's underway on the environmental study.
Judy Setting, Morro Bay, opposed the project, expressing concern for pedestrian safety.
Ryan Pinkerton, Assistant Superintendent for San Luis Coastal Unified School District, offered student comments were less about pedestrian safety and more about opportunities for improved pathways and access. He restated the District's offer to get more student input and encouraged the City to move forward with the environmental work.
Michelle Leicester-Cadaret, Morro Bay, opposed the roundabout project, suggesting a pedestrian bridge or lights and calming strips at the intersection to improve pedestrian safety would be sufficient. Nattalia Merzoyan, Morro Bay, on the topic of appearance, observed one thing that makes things look better is plant life. Margaret Carman, Morro Bay, opposed the project, voicing concerns about pedestrian safety and ability for large trucks and RV's to navigate the roundabout.
Betty Winholtz, Morro Bay, urged the Council to take this project off the plate for staff and begin discussions about other potential intersection improvements.
Brian O'Farrell, Morro Bay, opposed a roundabout at this location.
7 Betsy Gaudette-Cross, Morro Bay, did not feel a roundabout was appropriate at this location.
Onan Champi offered no opinion on whether to continue the environmental work but suggested it may be an opportunity to extend the project to include flood mitigation.
End of public comment.
Following the motion and prior to Council vote, City Attorney Schultz explained, based on the motion, staff would discontinue the environmental work and replace $1.2 million of Measure Q/E funds, effectively stopping the project from moving forward, but the item will need to come back to Council to take steps necessary to reject the project and also take a formal position should SLOCOG choose to take up the project. Mayor Wixom clarified that discussion could include consideration and funding for alternative intersection improvements.
Motion by Council Member Landrum
Seconded by Council Member Eckles
Direct staff to discontinue work on the project and retain $1.2 million of the Measure Q/E funds in the project fund.
Ayes (3): Mayor Wixom, Council Member Eckles, and Council Member Landrum
Noes (2): Council Member Edwards, and Council Member Luffee CARRIED (3 to 2)
9.c Review and Discussion of the City of Morro Bay's Flagpole Policy as established by Resolution No. 103-22
https://youtu.be/UKe6NKfvljc?si=NAzqyIy109ml23Ba&t=12614 City Manager Kimball presented the report and responded to Council inquiries.
Mayor Wixom opened public comment on Item 9.c
https://youtu.be/UKe6NKfvljc?si=O2xCnOIOWPp4RtYv&t=12764 Barry Branin, Morro Bay, urged the City to change the policy to fly only the United States and State flags.
Michelle Leicester-Cadaret, Morro Bay, quipped the City could fly the Canadian flag on occasion.
Margaret Carman, Morro Bay, supported an ordinance allowing only the national and state flags.
8 Judy Setting, Morro Bay, supported honoring the national and state flags.
Nic De Angelis, Morro Bay, agreed with previous speakers.
End of public comment.
Motion by Council Member Eckles
Seconded by Mayor Wixom
Direct staff to bring back a resolution rescinding Resolution No. 103-22 and come back with the flagpole policy that reflects language that allows for three flags to be flown officially over the city, which is the United States of America, State of California and City of Morro Bay.
Ayes (5): Mayor Wixom, Council Member Edwards, Council Member Eckles, Council Member Landrum, and Council Member Luffee CARRIED (5 to 0)
9.d Consideration of forming Council Sub-committee regarding El Morro Elementary School Property
https://youtu.be/UKe6NKfvljc?si=_m1qfYSyxBDHJcc3&t=13592 City Manager Kimball presented the report. Council Members Landrum and Luffee expressed interest in serving on the subcommittee.
Mayor Wixom opened public comment on Item 9.d.
https://youtu.be/UKe6NKfvljc?si=fvbggM4h-kPt9Aw2&t=13947 Betty Winholtz, Morro Bay, noted the citizens group has a lot of information to offer the City and believes a coordinated effort would be more efficient.
Nic De Angelis, Morro Bay, shared he met with Council Members Landrum and Luffee and restated his financial commitment to the purchase of this property.
End of public comment.
Pursuant to City Council Policies Section 3.13, Council Member landrum presented the proposed purpose, parameters and anticipated duration of the subcommittee:
"The purpose of the Morro Elementary School Subcommittee is to unite the community and City efforts for the accomplishment of the City Council goal to acquire the Morro Elementary School site and/or work with a developer on this project. To this end, two council members are appointed to facilitate communication and cooperation between the citizen's group, Friends of Morro Elementary, and the Community
9 Development Department Director, regarding applicable State law, potential financial resources, and the San Luis Coastal Unified School District communications. The City Council as a whole will be kept up to date weekly, if not more frequently, as events unfold. This subcommittee's work is complete when an agreement is signed between the School District and the City, or it is determined that acquisition is beyond the City's reach. At either conclusion, the City Council will revisit whether the subcommittee has a related purpose or should be terminated." Motion by Council Member Landrum
Seconded by Mayor Wixom
1. Establish a Council sub-committee regarding the City’s goal of acquiring the Morro Elementary School site and/or assisting in the development of the property.
2. Discontinuing the Downtown Design District subcommittee as their task is complete.
Ayes (5): Mayor Wixom, Council Member Edwards, Council Member Eckles, Council Member Landrum, and Council Member Luffee CARRIED (5 to 0)
Motion by Council Member Landrum
Seconded by Mayor Wixom
Appoint Council Member Luffee and Council Member Landrum to the Council Sub-committee regarding Morro Elementary School.
Ayes (5): Mayor Wixom, Council Member Edwards, Council Member Eckles, Council Member Landrum, and Council Member Luffee CARRIED (5 to 0)
11. ADJOURNMENT
The meeting adjourned at 9:35 p.m.
/s/ Dana Swanson, City Clerk
1 MINUTES - MORRO BAY CITY COUNCIL
CLOSED SESSION MEETING
April 22, 2025, 3:00 p.m.
City Hall Conference Room
595 Harbor Street, 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
_____________________________________________________________________
1. ESTABLISH QUORUM AND CALL TO ORDER
Mayor Wixom called the meeting to order at 3:00 p.m. with all members present.
2. SUMMARY OF CLOSED SESSION ITEMS
3. CLOSED SESSION PUBLIC COMMENT
Mayor Wixom opened public comment for items on the agenda; seeing none, the public comment period was closed.
4. THE COUNCIL WILL CONVENE IN CLOSED SESSION
4.a PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Conduct an employee evaluation of the City Manager pursuant to Government Code Section 54957
4.b CONFERENCE WITH REAL PROPERTY NEGOTIATOR -
GOVERNMENT CODE SECTION 54956.8
Property: APN 066-331-032, -033, and -034; 160 and 180 Atascadero Road and 1700 Embarcadero
Property Negotiator: Cayucos Sanitary District
Agency Negotiators: Greg Kwolek, Public Works Director; Yvonne Kimball, City Manager: Rob Schultz, Interim City Attorney Negotiations: Price and Terms of Payment
2 4.c CONFERENCE WITH REAL PROPERTY NEGOTIATOR -
GOVERNMENT CODE SECTION 54956.8
Property: Lease Site 86/86W, 801 Embarcadero, The Libertine Pub Property Negotiator(s): Eric Newton, Libertine Brewing Company Agency Negotiators: Chris Munson, Harbor Vitality Director; Yvonne Kimball, City Manager; Rob Schultz, Interim City Attorney Negotiations: Price and Terms of Payment
4.d CONFERENCE WITH REAL PROPERTY NEGOTIATOR -
GOVERNMENT CODE SECTION 54956.8
Properties: APNs 066-280-045 and 066-044-011, 1130/1330 Napa Ave., Morro Elementary
Property Negotiators: San Luis Coastal Unified School District Agency Negotiators: Airlin Singewald, Community Development Director; Yvonne Kimball, City Manager; Rob Schultz, Interim City Attorney Negotiations: Price and Terms of Payment
4.e PUBLIC EMPLOYEE EMPLOYMENT
City Attorney pursuant to Government Code Section 54957
4.f PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Conduct an employee evaluation of the City Attorney pursuant to Government Code Section 54957
5. RECONVENE IN OPEN SESSION
The City Council reconvened in Open Session. Interim City Attorney Schultz announced the Council held a Closed Session Meeting with evaluation of the City Manager, (3) Property Negotiations, and Public Employment of the City Attorney.
The only item discussed was evaluation of the City Manager and no reportable action was taken under the Brown Act. The remaining items will be continued to a future meeting.
6. ADJOURNMENT
The meeting adjourned at 5:22 p.m.
Respectfully submitted,
/s/ Dana Swanson, City Clerk
1 MINUTES - MORRO BAY CITY COUNCIL
CLOSED SESSION MEETING
April 25, 2025, 10:30 a.m.
City Hall Conference Room
595 Harbor Street, 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
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 10:30 a.m. with all members present.
2. SUMMARY OF CLOSED SESSION ITEMS
3. CLOSED SESSION PUBLIC COMMENT
Mayor Wixom opened public comment for items on the agenda; seeing none, public comment was closed.
4. THE COUNCIL WILL CONVENE IN CLOSED SESSION
4.a CONFERENCE WITH REAL PROPERTY NEGOTIATOR -
GOVERNMENT CODE SECTION 54956.8
Property: Lease Site 86/86W, 801 Embarcadero, The Libertine Pub Property Negotiator(s): Eric Newton, Libertine Brewing Company Agency Negotiators: Chris Munson, Harbor Vitality Director; Yvonne Kimball, City Manager; Rob Schultz, Interim City Attorney Negotiations: Price and Terms of Payment
4.b CONFERENCE WITH REAL PROPERTY NEGOTIATOR -
GOVERNMENT CODE SECTION 54956.8
2 Properties: APNs 066-280-045 and 066-044-011, 1130/1330 Napa Ave., Morro Elementary
Property Negotiators: San Luis Coastal Unified School District Agency Negotiators: Airlin Singewald, Community Development Director; Yvonne Kimball, City Manager; Rob Schultz, Interim City Attorney Negotiations: Price and Terms of Payment
4.c PUBLIC EMPLOYEE EMPLOYMENT
City Attorney pursuant to Government Code Section 54957
4.d PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Conduct an employee evaluation of the City Attorney pursuant to Government Code Section 54957.
5. RECONVENE IN OPEN SESSION
The City Council reconvened in Open Session. The Council did not take any reportable action in accordance with the Brown Act.
6. ADJOURNMENT
The meeting adjourned at 12:20 p.m.
Respectfully submitted,
/s/ Dana Swanson, City Clerk
A PROCLAMATION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY
DECLARING THE WEEK OF MAY 18-24, 2025 AS
“EMERGENCY MEDICAL SERVICES WEEK”
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, emergency medical services is a vital public service; and WHEREAS, the members of emergency medical services teams are ready to provide lifesaving care to those in need 24 hours a day, seven days a week; and WHEREAS, access to quality emergency care dramatically improves the survival and recovery rate of those who experience sudden illness or injury; and WHEREAS, emergency medical services has grown to fill a gap by providing important out of hospital care, including preventative medicine, follow-up care, and access to telemedicine; and
WHEREAS, the emergency medical services system consists of first responders, emergency medical technicians, paramedics, emergency medical dispatchers, firefighters, police officers, educators, administrators, pre-hospital nurses, emergency nurses, emergency physicians, trained members of the public, and other out of hospital medical care providers; and WHEREAS, the members of emergency medical services teams, whether career or volunteer, engage in thousands of hours of specialized training and continuing education to enhance their lifesaving skills; and
WHEREAS, it is appropriate to recognize the value and the accomplishments of emergency medical services providers by designating the Emergency Medical Services Week.
NOW THEREFORE, BE IT RESOLVED, that the Morro Bay City Council does hereby proclaim the week of May 18-24, 2025, as “Emergency Medical Services Week”. The 51st Anniversary of EMS Week theme is “EMS WEEK: We Care. For everyone.” IN WITNESS WHEREOF I have hereunto
set my hand and caused the seal of the
City of Morro Bay to be affixed this 13
th
day of May, 2025
________________________________
CARLA WIXOM, MAYOR
City of Morro Bay, California
A PROCLAMATION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY
DECLARING NATIONAL PUBLIC WORKS WEEK
MAY 18 - 24, 2025
“PEOPLE, PURPOSE, PRESENCE”
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, public works professionals focus on infrastructure, facilities, emergency management, and services that are of vital importance to sustainable and resilient communities and the public health, high quality of life, and well-being of the people of the City of Morro Bay; and
WHEREAS, these infrastructures, facilities, and services could not be provided without the dedicated efforts of public works professionals, who are federally mandated first responders, and the engineers, managers, utility workers, maintenance workers, leads, analysts, operators, and support staff at all levels of government and our private sector partners, who are responsible for rebuilding, maintaining, improving, and protecting our nation’s transportation, water supply, water treatment and solid waste systems, wastewater systems, public buildings, parks, streets, sidewalks, storm drains, bikeways, street trees and other structures and facilities essential for our citizens; and
WHEREAS, it is in the public interest for the citizens, civic leaders, and children in the City of Morro Bay to gain knowledge and maintain ongoing interest and understanding of the importance of public works first responders and public works programs in their respective communities; and
WHEREAS, the year 2025 marks the 65th annual National Public Works Week sponsored by the American Public Works Association/Canadian Public Works Association; and WHEREAS, the women and men comprising the Public Works Department in the City of Morro Bay are dedicated to building, maintaining, and beautifying our critical infrastructure in the service of improvements in quality of life for Morro Bay residents and visitors through projects such as the Water Reclamation Facility program, which will provide long-term water supply resiliency, and street paving, which will provide for safe driving surfaces and extend the life of City streets infrastructure.
NOW, THEREFORE, BE IT RESOLVED, that the Morro Bay City Council does hereby designate the week May 18–24, 2025, as National Public Works Week; urge all citizens to join with representatives of the American Public Works Association and government agencies in activities, events, and ceremonies designed to pay tribute to our public works professionals, engineers, managers, and employees and to recognize the substantial contributions they make to protecting our national health, safety, and quality of life.
IN WITNESS WHEREOF: I have hereunto
set my hand and caused the seal of the City
of Morro Bay to be affixed this 13th day of
May, 2025
___________________________________
CARLA WIXOM, MAYOR
City of Morro Bay, California
A PROCLAMATION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY
DECLARING MAY 17 – MAY 23, 2025 AS
NATIONAL SAFE BOATING WEEK
CITY COUNCIL
City of Morro Bay, California
WHEREAS, the City of Morro Bay is home to a vibrant boating community that values the enjoyment, recreation, commercial fishing and livelihood that our waterways provide; and WHEREAS, National Safe Boating Week, held May 17–23, 2025, serves as the annual kick-off of the Safe Boating Campaign, a global awareness effort to promote responsible boating practices and encourage all boaters to prioritize safety; and WHEREAS, the National Safe Boating Council, a nonprofit organization dedicated to advancing safe boating through education and outreach, reminds all boaters to inspect their safety equipment, provide comfortable U.S. Coast Guard-approved life jackets for every passenger, and commit to wearing life jackets at all times on the water; and WHEREAS, U.S. Coast Guard statistics show that drowning is the leading cause of death in recreational boating fatalities, with 87 percent of drowning victims not wearing life jackets at the time of the incident; and
WHEREAS, proper preparation — including taking a boating safety course, scheduling a vessel safety check, making a float plan, wearing life jackets, using an engine cut-off switch, watching the weather, maintaining a proper lookout, traveling at safe speeds, avoiding boating under the influence, and keeping reliable communication devices — can help prevent accidents and save lives; and
WHEREAS, the Morro Bay Harbor Patrol plays a critical role in promoting boating safety by providing education, free life jackets, and facilitating safe boating practices within our local waters; and
WHEREAS, the Safe Boating Campaign and the National Safe Boating Council provide valuable resources to support local boating safety efforts and promote a culture of safe, responsible boating.
NOW, THEREFORE, BE IT RESOLVED, that the Morro Bay City Council does hereby recognize May 17–23, 2025, as National Safe Boating Week and encourages all those who boat to practice safe boating habits and wear life jackets at all times while boating.
IN WITNESS WHEREOF I have
hereunto set my hand and caused the
seal of the City of Morro Bay to be
affixed this 13th day of May 2025
_______________________________
CARLA WIXOM, MAYOR
City of Morro Bay, California
A PROCLAMATION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY
ACKNOWLEDGING “NATIONAL POLICE WEEK”
AND DECLARING MAY 15, 2025 AS
“NATIONAL PEACE OFFICERS MEMORIAL DAY”
CITY COUNCIL
City of Morro Bay, California
WHEREAS, in 1962, President Kennedy established “National Police Week;” and WHEREAS, we are honored to observe “National Police Week” from May 11-17, 2025 and May 15, 2025 as “National Peace Officers Memorial Day;” and WHEREAS, for generations, brave Peace Officers have answered the call to serve and protect our communities and our Nation, often in dangerous and unpredictable circumstances, embodying courage, honor, and pride and representing the best of the law enforcement profession; and
WHEREAS, today we recognize and honor the sacrifice of our fallen Heroes, Peace Officers in California and Nationally who bravely and unselfishly gave their lives in the line of duty in the protection and service of others; and
WHEREAS, the City of Morro Bay expresses our respect and appreciation for the bravery, service and professionalism of the Morro Bay Peace Officers and Peace Officers throughout the San Luis Obispo County and Nationwide, as they serve and protect us.
NOW, THEREFORE, BE IT RESOLVED, that the Morro Bay City Council does hereby call upon all Morro Bay community members to observe and acknowledge this day, Thursday, May 15, 2025, as “Peace Officers Memorial Day,” and the week of May 11-17, 2025 as “National Police Week” in honor of fallen Peace Officers who, through their courageous deeds, have made the ultimate sacrifice in the service of their communities. We recognize and pay respect to these Heroes and their families.
IN WITNESS WHEREOF I have hereunto
set my hand and caused the seal of the City
of Morro Bay to be affixed this 13
th day of
May, 2025
CARLA WIXOM, MAYOR
City of Morro Bay, California
A PROCLAMATION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY
PROCLAIMING MAY 2025 AS
“NATIONAL FOSTER CARE MONTH”
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, the City of Morro Bay recognizes the importance of providing children safe, stable, and loving homes when they cannot remain with their biological families; and WHEREAS, more than 420,000 children nationwide, including over 28,000 in California, are currently in the foster care system; and
WHEREAS, over 200 children and youth in the County of San Luis Obispo are in foster care; and
WHEREAS, the Department of Social Services continues to actively recruit more resource families to ensure children have nurturing homes in which they can heal, grow, and thrive; and WHEREAS, National Foster Care Month recognizes the critical role of resource families in providing nurturing, stable homes and highlights the ongoing need for more families to support local children; and
WHEREAS, this month-long effort which is mirrored across all 50 states and the District of Columbia, celebrates resource families and encourages more individuals to positively impact a child’s life through foster care.
NOW, THEREFORE, BE IT RESOLVED, that the City Council for the City of Morro Bay does hereby proclaim May as “National Foster Care Month” within the City of Morro Bay and in so doing, urge all citizens to join in raising awareness and supporting foster care and resource families in our community.
IN WITNESS WHEREOF: I have hereunto
set my hand and caused the seal of the
City of Morro Bay to be affixed this 13th
day of May, 2025.
___________________________________
CARLA WIXOM, MAYOR
City of Morro Bay, California
Prepared By: __AW________ Dept Review: ________
City Manager Review: _YK__ City Attorney Review: RWS
Staff Report
TO: Honorable Mayor and City Council DATE: April 24, 2025 FROM: Amy Watkins, Police Chief
SUBJECT: Adoption of Ordinance No. 669 Repealing and Replacing Title 7 (Animals) of the Morro Bay Municipal Code
RECOMMENDED ACTION
Adopt Ordinance No. 669 entitled, “An Ordinance of the City Council of the City of Morro Bay, California, repealing and replacing Title 7 (Animals) of the Morro Bay Municipal Code to adopt and incorporate by reference San Luis Obispo County Code Title 9 (Animals) and to retain certain city requirements regarding animals, and finding the action not subject to CEQA.”
ALTERNATIVES
No alternatives are recommended.
FISCAL IMPACT
The Animal Services contract is budgeted out of the Police Department General Fund Budget under Support Services/Contractual Services. The total budget allocated for FY 2024-25 is $60,000 for animal services.
There is no projected fiscal impact directly related to adopting the County of San Luis Obispo Title 9 by reference. The City costs associated with Animal Services are based on our calls for service and shelter usage, based on a percentage of total costs in relation to the usage and calls for service of the other cities and the County.
BACKGROUND/DISCUSSION
On April 8, 2025, during the Morro Bay City Council meeting, Council received a presentation from San Luis Obispo Animal Services Manager, Eric Anderson, DVM, regarding the scope of service and cost allocation methods provided by San Luis Obispo Animal Services.
Council was also presented an agenda item; Introduction by title Ordinance No. 669 entitled, “An Ordinance of the City Council of the City of Morro Bay, California, repealing and replacing Title 7 (Animals) of the Morro Bay Municipal Code to adopt and incorporate by reference San Luis Obispo County Code Title 9 (Animals).
Community correspondence was received prior to the meeting and public comment was heard from the community. County Code Sections 9.04.002 and 9.04.006 regarding the holding period for AGENDA NO: 7.c
MEETING DATE: May 13, 2025
household pets was discussed with the community requesting the city require San Luis Obispo County Animal Services to increase the holding period from three days to seven days. A motion to adopt the ordinance with a change to the County Code Sections 9.04.002 and 9.04.006 requiring the seven-day holding period was made. City Attorney Robert Schultz advised the Council that the city does not have the ability to change the county code. The council revised the motion, instructing staff to return with the agenda item on April 22, 2025, with additional recommendations regarding the holding period.
At the April 22, 2025 Regular Meeting, the Council introduced Ordinance 669 for first reading and directed staff to prepare a letter for the Mayor’s signature expressing the City’s desire for the review and changing of Title 9, Sections 9.04.002 and 9.04.006 requiring Animal Services to adopt a sevenday holding period for all impounded household pets. That letter is provided as Attachment 2.
ATTACHMENT(S)
1. Ordinance No. 669 amending Title 7 (Animals)
2. Letter to San Luis Obispo County Board of Supervisors
3. Link to April 8, 2025 Staff Report and Attachments
4. Link to April 8, 2025 Staff Presentation
5. Link to April 22, 2025 Staff Report
Created: 2024-08-20 12:12:04 [EST]
(Supp. No. 22)
ORDINANCE NO. 669
AN ORDINANCE OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA,
REPEALING AND REPLACING TITLE 7 (ANIMALS) OF THE MORRO BAY MUNICIPAL
CODE TO ADOPT AND INCORPORATE BY REFERENCE SAN LUIS OBISPO COUNTY CODE TITLE 9 (ANIMALS) AND TO RETAIN CERTAIN CITY REQUIREMENTS
REGARDING ANIMALS AND FINDING THE ACTION NOT SUBJECT TO CEQA
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, the City of Morro Bay, California (“City”) is a municipal corporation, duly organized under the California Constitution and laws of the State of California; and WHEREAS, Title 7 of the Morro Bay Municipal Code currently sets forth the animal control regulations applicable within the City; and
WHEREAS, the Division of Animal Services (“Division”) for the County of San Luis Obispo (“County”) was established to provide animal care and control functions relating to the care, keeping, and management of animals within the County; and WHEREAS, the City contracts with the Division for the provision of animal control services within the City and the Division works in conjunction with the City’s Police Department and other City personnel to administer such services within the City’s boundaries; and WHEREAS, in 2024, the County updated Title 9 of its Municipal Code to enhance animal control regulations, including amendments to licensing requirements, public safety standards, and enforcement measures; and
WHEREAS, the City has reviewed these updates and now seeks to amend Title 7 of the Morro Bay Municipal Code to substantially incorporate Title 9 of the San Luis Obispo County Code to ensure alignment with regional animal control standards and maintain the Division’s jurisdiction for services within the City while tailoring certain provisions to address the specific needs of the City, as set forth in the proposed Ordinance attached hereto as Exhibit “A”; and WHEREAS, any and all other legal prerequisites relating to adoption of this Ordinance have occurred.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA FINDS AND ORDAINS AS FOLLOWS:
SECTION 1. Recitals. The City Council hereby finds that the foregoing recitals set forth above are all true and correct and are incorporated herein by this reference.
SECTION 2. Municipal Code Amendments. The City Council desires to adopt the proposed Ordinance, repealing and replacing Title 7 (Animal) of the Morro Bay Municipal Code to read as follows.
Created: 2024-08-20 12:12:04 [EST]
(Supp. No. 22)
Chapter 7.04 GENERAL PROVISIONS
7.04.010 Adoption and incorporation of San Luis Obispo County Animal Control Code (Title 9).
The provisions of San Luis Obispo County Animal Control Code, Title 9, as amended from time to time, are adopted by reference and incorporated in their entirety as equivalent provisions of the Morro Bay Municipal Code. To the extent any provision or provisions of the San Luis Obispo County Animal Control Code, Title 9, as adopted, conflict with any other provision or provisions of the Morro Bay City Municipal Code, the other provision or provisions of the Morro Bay Municipal Code shall take precedence.
7.04.020 Enforcement of Animal Control provisions within City The provisions of this Title are enforceable within the jurisdictional boundaries of the City of Morro Bay by the San Luis Obispo County Division of Animal Services and County of San Luis Obispo Animal Control Officer, or designee, pursuant to and in accordance with the terms of a contract for animal care and control services entered into between the City and the County, and by City Code Enforcement and the City Police Department.
7.04.130 Pet Shop Permit refusal, suspension.
Not withstanding SLOCC Section 9.06.006, whenever the issuance of a permit is refused, suspended, or a permit is revoked , the applicant or permittee may appeal the action to the city council within ten days. The clerk shall set the matter for hearing at the earliest possible date and shall give reasonable notice of the time and place of the hearing to the applicant or permittee and to the San Luis Obispo County Division of Animal Services (“division”). The city council, or its designee, shall hear the evidence offered by the applicant or permittee and the division, and shall forthwith decide the issue. The decision of the city council or its designee, shall be final.
Ordinance No. 669
Chapter 7.08 OTHER ANIMALS, POULTRY AND BIRDS
7.08.010 Wild bird sanctuary.
The city is designated a bird sanctuary, and signs bearing the legend "Morro Bay is a bird sanctuary" shall be placed at appropriate locations at or near the city limits at principal entrances to the city.
(Ord. 480 (part), 2000)
7.08.015 Molesting wild birds—Nuisance remedies.
No person shall trap, shoot, hunt, molest, injure or kill any wild birds, or tamper, damage or destroy the nests or eggs of any wild birds within the city. Should the city council determine by resolution that birds protected under this chapter have become so numerous or destructive in any particular location or area as to constitute a menace and danger to the public health, safety or property, the council may provide for such remedies appropriate under the circumstances. (Ord. 480 (part), 2000)
7.08.020 Poultry, rabbits and other fowl.
A. No person shall keep upon any premises in the city more than twelve of any poultry, rabbits, or other fowl:
1. Within fifty feet of any dwelling; and
2. The owner or person in charge of such rabbits, poultry or other fowl kept in the city shall provide suitable houses or cotes with board or cement floors in each and every house and cote and such houses, cotes or pens shall at all times be kept clean.
B. No rooster over four months old shall be kept on any premises in the city, unless the premises involved is operating on a commercial basis or is on an agricultural zoned parcel in conformance with existing zoning regulations and state statutes governing such commercial operation.
(Ord. 480 (part), 2000; Ord. 234 (part), 1982)
7.08.025 Livestock.
A. Except as otherwise permitted in this chapter, no person shall own, keep, maintain, stake or pasture any bovine, swine, sheep, goat, horse or other livestock upon any premises in the city unless the lot or parcel size is a minimum twenty thousand square feet or, the parcel is in a properly zoned agricultural district in which case the number of animals shall not exceed the maximum density allowed for such animals pursuant to Section 17.30.060 of this code.
B. All such fences, enclosures, corrals or pens used to restrain such animals in this section must be of adequate materials and properly maintained to humanely enclose and protect the animals and prevent the trespass of such animals upon any private property or upon any street or other public place.
(Ord. 480 (part), 2000; Ord. No. 654, § 6, 11-22-22)
Ordinance No. 669
7.08.030 Keeping of pygmy livestock.
Pygmy livestock may be kept or maintained upon any premises subject to the following conditions:
A. Male pygmy livestock must be neutered before they reach sexual maturity.
B. Pygmy livestock shall be subject to the leash law.
C. No person or persons may own, harbor, or maintain or cause to be maintained more than two pygmy animals at any dwelling within the city, unless such dwelling is on a parcel that meets the size and zoning criteria as contained in Section 7.16.040 in which case the number of animals shall be limited to the maximum listed density allowed as codified.
(Ord. 480 (part), 2000; Ord. 459 § 42, 1997; Ord. 434 § 2, 1993: Ord. 234 (part), 1982) SECTION 3. 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 4. Severability. If any section, subsection, sentence, clause, phrase, or portion of this ordinance is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions thereof may be declared invalid or unconstitutional.
SECTION 5. Effective Date. This ordinance shall be in full force and effect thirty (30) days after its passage.
///
///
///
Ordinance No. 669
SECTION 6. Certification. The City Clerk shall certify as to the passage and adoption of this ordinance, and the City Clerk shall cause the same to be posted and codified in the manner required by law.
INTRODUCED at a regular meeting of the City Council held on the 22nd day of April 2025, by motion of Council Member Eckles and seconded by Council Member Landrum.
PASSED AND ADOPTED on the ____ day of _______, 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSE:
____________________________
CARLA WIXOM, Mayor
ATTEST:
________________________________
DANA SWANSON, City Clerk
APPROVED AS TO FORM:
_________________________________
ROBERT W. SCHULTZ, Interim City Attorney
Ordinance No. 669
STATE OF CALIFORNIA )
COUNTY OF SAN LUIS OBISPO )
CITY OF MORRO BAY )
I, Dana Swanson, CITY CLERK FOR THE CITY OF MORRO BAY, HEREBY CERTIFY the foregoing Ordinance Number 669 was duly adopted by the City Council of the City Council of the City Morro Bay at a regular meeting of said Council on the _____ day of _________ 2025 and that it was so adopted on by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSE:
IN WITNESS WHEREOF I have hereunto set my hand and affixed the official seal of the City of Morro Bay, California, this ______ day of _______________, 2025.
DANA SWANSON, City Clerk
Prepared By: EC____ Dept Review: _EC____
City Manager Review: __yk______ City Attorney Review:
Staff Report
TO: Honorable Mayor and Councilmembers DATE: May 1, 2025 FROM: Emily Conrad, Finance Director
SUBJECT: Third Quarter Investment Report (period ending March 31, 2025) for Fiscal Year (FY) 2024-25
RECOMMENDED ACTION
Receive the attached Third Quarter Investment Report (period ending March 31, 2025) for FY 2024-25.
FISCAL IMPACT
There is no fiscal impact associated with this recommendation.
DISCUSSION
The Third Quarter Investment Report for FY 2024-25 is summarized below:
(1) Par Value is the face value of investments.
(2) Market Value is the amount in which investments could be sold. (3) WAM is the Weighted Average Maturity, the average time a security will mature.
The City’s investments earned a year-to-date total of $2,592,113 interest by the close of this quarter. Despite slight declines in interest rates at Mechanics Bank and LAIF, earnings at this reporting date outperformed prior year Q3 by over $955,000. Even with the slight decreases in rates, higher earnings are a result of higher cash balances, which doesn’t necessarily indicate less spending but likely that the City is earning interest on interest in these accounts.
AGENDA NO: 7.d
MEETING DATE: May 13, 2025
Cash and Pooled Investment Portfolio at March 31, 2025
Institution Par Value¹ Market
Value² WAM³
Mechanics Bank (interest earning accounts) 32,139,945 32,139,945 0 LAIF 39,300,256 39,333,630 0
Zions Bank 11,942,000 11,902,849 120
Subtotal Pooled Investment Portfolio 83,382,201 83,376,424 Mechanics Bank (operating/non-interest earning) 4,031,459 4,031,459 0 TOTAL IN TREASURY 87,413,660 87,407,883
The City’s portfolio is performing slightly above LAIF, with a difference of 0.10%. Mechanics Bank decreased slightly from 4.67% to 4.58% and LAIF decreased from 4.62% to 4.48%. With two certificates of deposit (CDs) maturing next quarter, staff will explore investment options and either replace the CDs or invest in additional treasury bonds. The instruments will be selected based on the more favorable rate of return over time. Staff will monitor interest rates closely to maximize earnings. As reported in previous investment reports, many small cities utilize investment advisors with extensive expertise in municipal investments to ensure ongoing maximization of interest revenues within the confines of State law and local investment policies. Staff will begin to evaluate whether investment advisor services would be financially beneficial to the City and increase interest earnings to a greater degree for a limited cost.
CONCLUSION
Staff recommends that the City Council receive the Third Quarter Investment Report (period ending March 31, 2025) for Fiscal Year 2024-25.
ATTACHMENT(S)
1. Third Quarter Investment Report for FY 2024-25 (period ending March 31, 2025)
LIQUID INSTRUMENTS
INVESTMENT
OR CUSIP PAR PURCHASE MARKET ACCRUED MARKET W/ INTEREST MATURITY DAYS TO NUMBER INSTITUTION VALUE PRICE VALUE INCOME ACCRUED INC. RATE DATE MATURITY LAIF LOCAL AGENCY INVESTMENT FUND 39,300,256 39,300,256 39,333,630 433,084 39,766,714 4.48% DAILY 1 POOLED MONEY INVESTMENT ACCOUNT:
39,300,256 39,300,256 39,333,630 433,084 39,766,714
MM MECHANICS BANK - MONEY MARKET 28,997,838 28,997,838 28,997,838 - 28,997,838 4.58% DAILY 1 SWEEP MECHANICS BANK - SWEEP 3,142,107 3,142,107 3,142,107 - 3,142,107 0.01% DAILY 1 MONEY MARKET ACCOUNT: 32,139,945 32,139,945 32,139,945 - 32,139,945 SUBTOTAL LIQUID INSTRUMENTS: 71,440,201 71,440,201 71,473,574 433,084 71,906,659
NON-LIQUID INSTRUMENTS
INVESTMENT
OR CUSIP PAR PURCHASE MARKET ACCRUED MARKET W/ INTEREST MATURITY DAYS TO NUMBER INSTITUTION VALUE PRICE VALUE INCOME ACCRUED INC. RATE DATE MATURITY 33715LFH8 ZIONS BANK - First Technology FCU 248,000 248,000 248,800 172 248,972 5.05% 5/27/2025 57 53052LAT6 ZIONS BANK - Liberty FCU Evansville 248,000 248,000 248,774 1,019 249,793 5.00% 5/27/2025 57 795451BQ5 ZIONS BANK - Sallie Mae 245,000 245,000 243,974 4,062 248,036 3.40% 7/7/2025 98 20825WAZ3 ZIONS BANK - Connexus Cred. Union 249,000 249,000 247,865 - 247,865 3.40% 8/15/2025 137 27002YFE1 ZIONS BANK - Eaglebank - Bethesda 249,000 249,000 247,660 293 247,952 3.30% 8/18/2025 140 30960QAV9 ZIONS BANK- Farmers Insurance Group 249,000 249,000 250,244 157 250,401 4.60% 1/26/2026 301 90352RDA0 ZIONS BANK - US Alliance FCU Rye NY 249,000 249,000 251,086 160 251,247 4.70% 5/26/2026 421 39573LEC8 ZIONS BANK - Greenstate Credit Unions 248,000 248,000 250,786 999 251,785 4.90% 6/1/2026 427 254673Q33 ZIONS BANK - Discover Bank Greenwood 245,000 245,000 242,230 3,056 245,286 3.35% 8/17/2026 504 22282XAF7 ZIONS BANK- Covantage Cr Un Antigo WI 247,000 247,000 247,386 1,067 248,453 4.15% 8/24/2026 511 130162AX8 ZIONS BANK- California Cr Un Glendale 243,000 243,000 247,314 4,251 251,564 5.15% 8/28/2026 515 444425AC6 ZIONS BANK- Hughes Fed Cr Un Tuscon Az 248,000 248,000 252,403 70 252,473 5.15% 8/31/2026 518 065427BG0 ZIONS BANK- Bank Utah Ogden Utah 244,000 244,000 244,305 4,330 248,636 4.10% 1/26/2027 666 856285G21 ZIONS BANK - State Bank of India NY 250,000 250,000 238,612 1,726 240,338 1.75% 2/9/2027 680 25844MBN7 ZIONS BANK- Dort Finl Cr Un Grand Blanc 246,000 246,000 250,941 3,042 253,983 5.00% 2/26/2027 697 41138NAB4 ZIONS BANK- Hapo Comnty Cr Un Richland 248,000 248,000 252,977 1,019 253,996 5.00% 2/26/2027 697 02589ABQ4 ZIONS BANK - American Express Natl 247,000 247,000 236,672 1,529 238,202 2.00% 3/9/2027 708 14042TFJ1 ZIONS BANK - Capital One 246,000 246,000 238,985 1,438 240,423 2.70% 4/13/2027 743 19058RAE1 ZIONS BANK- Coastal1 Cr Un Pawtucket RI 249,000 249,000 250,082 - 250,082 4.15% 1/31/2028 1,036 05580A4P6 ZIONS BANK- BMW Bk North Amer Utah 244,000 244,000 251,777 1,453 253,230 4.90% 11/17/2028 1,327
CERTIFICATES OF DEPOSIT
4,942,000 4,942,000 4,942,874 29,843 4,972,717
3133EP5S0 ZIONS BANK - Federal Farm Cr Bks 3,000,000 2,988,009 2,988,208 35,615 3,023,823 4.250% 3/20/2028 1,085 3133EP3B9 ZIONS BANK - Federal Farm Cr Bks 2,000,000 1,989,780 1,977,392 31,571 2,008,963 4.125% 2/13/2029 1,415
FEDERAL FARM CREDIT
5,000,000 4,977,789 4,965,600 67,186 5,032,786
91282CKA8 ZIONS BANK- US Treasury Note 2,000,000 1,984,850 1,994,375 30,938 2,025,313 4.125% 2/15/2027 686 U.S. TREASURY NOTES & BONDS
2,000,000 1,984,850 1,994,375 30,938 2,025,313
SUBTOTAL NON-LIQUID INSTRUMENTS: 11,942,000 11,904,639 11,902,849 127,966 12,030,815 83,382,201 83,344,840 83,376,424 561,050 83,937,474
3/31/2025 3/31/2025
871,236 2,592,113 85.716% 4.298% 120
QUARTERLY PERFORMANCE COMPARISON - PORTFOLIO VS LAIF
QUARTERLY
ACCRUED
INTEREST AS
OF
CITY OF MORRO BAY
QUARTERLY PORTFOLIO PERFORMANCE
WEIGHTE
D
AVERAGE
DAYS TO
MATURITY
WEIGHTED
AVERAGE
RATE OF
EARNINGS
3/31/2025
YTD
RECORDED
INTEREST AS
OF
% OF LIQUID
PORTFOLIO
HOLDINGS
TOTAL LIQUID AND NON-LIQUID INVESTMENTS:
CITY OF MORRO BAY
QUARTERLY PORTFOLIO PERFORMANCE
3/31/2025
3/31/2024 6/30/2024 9/30/2024 12/31/2024 3/31/2025
Portfolio - weighted average rate of earnings 4.074% 4.270% 4.428% 4.303% 4.298% LAIF - quarterly earnings rate 4.300% 4.550% 4.710% 4.620% 4.480% Portfolio over -(under) LAIF -0.230% -0.280% -0.282% -0.317% -0.182%
PUBLIC AGENCY RETIREMENT SERVICES (PARS) - LEAGALLY RESTRICTED INVESTMENTS EXCLUDED FROM WEIGHTED PORTFOLIO PARS OPEB Public Agency Retirement Services 2,587,627 -2.83% DAILY DAILY 1 PARS Pension Trust Public Agency Retirement Services 2,996,366 -2.61% DAILY DAILY 1 5,583,993
CHANGES FROM PRIOR QUARTERLY REPORT
MATURED INSTRUMENTS PAR PURCHASE INTEREST PURCHASE MATURITY
CERTIFICATES OF DEPOSIT VALUE PRICE RATE DATE DATE
U.S. OBLIGATIONS
U.S. TREASURY BILLS
TOTAL MATURED VALUE -
NEW INSTRUMENTS PURCHASE INTEREST PURCHASE MATURITY
CERTIFICATES OF DEPOSIT PRICE RATE DATE DATE
U.S. OBLIGATIONS
U.S. TREASURY NOTES & BONDS
TOTAL NEW INSTRUMENTS -
Portfolio holdings as of the quarter ended 03/31/2025, are in compliance with the current Investment Policy. With 85.312% of the portfolio held in liquid instruments, allowing the City to meet cash flow needs for at least six months, in compliance with the investment policy approved by the City Council in Dec 2024. The investment policy will be updated annually as required by state law.
Prepared By: Dept Review: ________
City Manager Review: YK City Attorney Review: ___ ___
Staff Report
TO: Honorable Mayor and City Council DATE: April 17, 2025 FROM: Yvonne Kimball, City Manager
SUBJECT: Adopt Resolution No. 22-25 and Limited Duration Interim City Attorney Employment Agreement for Retired Annuitant
RECOMMENDED ACTION
Adopt Resolution No. 22-25 appointing Robert Schultz to the position of Interim City Attorney and authorize the Mayor to execute the Limited Duration Interim City Attorney Employment Agreement for Retired Annuitant.
ALTERNATIVE
Obtain a firm or a different attorney who is not a Retired Annuitant to serve as Interim City Attorney.
FINANCIAL IMPACT
The Employment agreement specifies an hourly rate of $107.17, which is $92.83 below Robert Schultz’s independent contractor’s rate. Total costs will depend on the length of service of the Interim City Attorney, but they will be significantly below the amounts paid to the previous City Attorney.
BACKGROUND
On December 19, 2024, the City Council terminated its agreement for City Attorney services with Burke, Williams, Sorensen (BWS) and appointed Robert Schultz as Interim City Attorney. The Agreement between the City and Robert Schultz for Legal Services classified Robert Schultz as an independent contractor with an hourly rate of $200.
Robert Schultz is a retired CalPERS annuitant. Under the Public Employees’ Retirement Law (PERL), whether an individual is an “employee” or an “independent contractor” determines whether a retired annuitant must be enrolled in CalPERS as a retired annuitant (employee) or can return to work with a CalPERS agency without being subject to post-retirement work restrictions (Independent Contractor). Since CalPERS has been inconsistent in its guidance and publications on how it treats independent contractors, Robert Schultz submitted a letter to CalPERS on December 29, 2024, requesting a determination regarding his status as an independent contractor for post-retirement employment. Although Robert Schultz has yet to receive a written termination of his status as an independent contractor, CalPERS has stated orally that CalPERS has determined that Robert Schultz is classified as a retired annuitant employee as opposed to an independent contractor and therefore must comply with CalPERS rules.
AGENDA NO: 7.e
MEETING DATE: May 13, 2025
DISCUSSION
Since CalPERS has been classified Robert Schultz as a retired annuitant employee and not an independent contractor, he can return to work for the City of Morro Bay in one of two ways: 1) Extra Help Positions – the retiree has specialized skills needed to perform work of limited duration or their employment is needed during an emergency to prevent stoppage of public business; 2) Vacant Positions – the retiree may be appointed to an interim position during the active recruitment for a permanent replacement for the vacant position. Requirements for retired annuitant include:
The position, must be designated as a retired annuitant position (not any other full-or part-time position)
The salary must be an hourly pay rate that falls within the regular salary schedule for that position.
No compensation or benefits in addition to the hourly rate can be paid. Without exception, a maximum of 960 hours can be worked within a fiscal year (July 1 to June 30).
There is no accrual of service credit or any additional retirement rights or benefits. The retiree must be enrolled as a retired annuitant and pay rate with hours worked reported in the myCalPERS system.
There must be an open recruitment to permanently fill the position in place to hire a retiree.
When the City terminated its agreement with BWS, it created an immediate emergency need for an Interim City Attorney to fill this role during the recruitment of a permanent City Attorney. Therefore, Robert Schultz qualifies as a retired annuitant employee subject to the restrictions set forth above.
Under CalPERS restrictions, Robert Schultz will be paid an hourly rate of $107.17, which is not less than the minimum or in excess of the maximum paid to other employees performing comparable duties. Robert Schultz will not receive any additional benefits, incentives, compensation in lieu of benefits, paid leave, or paid holidays unless required by state or federal law. Since Robert Schultz did not submit any invoices and has not been paid until a determination was made by CalPERS, Robert Schultz will be paid as a retired annuitant retroactively from December 19, 2024.
CONCLUSION
City Council should adopt Resolution No. 22-25 appointing Robert Schultz to the position of Interim City Attorney and authorize the Mayor to execute the Limited Duration Interim City Attorney Employment Agreement for Retired Annuitant in order to maintain an interim City Attorney until a permanent replacement is found.
ATTACHMENT(S)
1. Resolution No. 22-25 with Exhibit A, Employment Agreement
2. Robert W. Schultz Resume
RESOLUTION NO. 22-25
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA,
APPOINTING ROBERT SCHULTZ AS AN INTERIM CITY ATTORNEY
PURSUANT TO GOVERNMENT CODE SECTION 21221 and 21224
T H E C I T Y C O U N C I L
City of Morro Bay, California
WHEREAS, on December 19, 2024, the City Council terminated its independent contractor agreement for city attorney legal services with Burke, Williams, Sorensen, which created an immediate emergency need for specialized legal services during the recruitment of a permanent city attorney; and
WHEREAS, on December 19, 2024, the City Council entered into an interim independent contract agreement with Robert Schultz for specialized legal services during the recruitment of a permanent city attorney; and
WHEREAS, in addition to providing specialized legal services, the independent contract agreement requires Robert Schultz to analyze the City’s legal needs and make recommendations regarding the advantages and disadvantages of contracting City Attorney services versus maintaining an in-house City Attorney for the City of Morro Bay; and WHEREAS, pursuant to the independent contractor agreement, the City does not exercise any control over the legal services or analysis performed by Robert Schultz, and he is responsible for managing his duties and assignments independently, without oversight from the City; and WHEREAS, since December 19, 2024, the recruitment for a permanent City Attorney has been underway with Robert Schultz actively searching for a potential permanent City Attorney and conducting background checks; and
Whereas on April 8, 2025, Robert Schultz prepared and presented a detailed analysis to the City Council on the advantages and disadvantages of contracting City Attorney services versus maintaining an in-house City Attorney and the City Council directed staff to prepare a job description, salary range, and recruitment schedule for an in-house City Attorney; and WHEREAS, CalPERS has preliminarily determined that Robert Schultz is not an independent contractor and must be classified as a retired annuitant employee under Government Code sections 21221 and 21224 of the Public Employees’ Retirement Law; and WHEREAS, Government Code section 21221 and 21224 of the Public Employees’ Retirement Law permits the governing body to appoint a CalPERS retiree to a vacant position requiring specialized skills needed to perform work of limited duration, or their employment is necessary during an emergency to prevent stoppage of public business, or an appointment to an interim position during active recruitment for a permanent replacement for the vacant position; and
WHEREAS, Robert Schultz was the City Attorney for Morro Bay from 1997 to 2013, both as an independent contractor and as a CalPERS employee. As Morro Bay City Attorney for 16 years, Robert Schultz has specialized skills and knowledge of Morro Bay city business to provide legal advice during an emergency and without delay, to provide an analysis of City Attorney services, and to provide strategic advice as to the selection of a permanent City Attorney; and
WHEREAS, if the City did not obtain immediate specialized legal services of Robert Schultz, a work stoppage of public business would occur as there would be no ability for the City to obtain legal advice as outlined in Government Code Section 41805; and WHEREAS, the City Council desires to hire Robert Schultz to ensure a work stoppage of public business does not occur and to appoint him as a retired annuitant to the position of Interim City Attorney for the City of Morro Bay under Government Code Sections 21221 and 21224, effective December 19, 2024; and
WHEREAS, the City Council, the City of Morro Bay, and Robert Schultz certify that Robert Schultz has not and will not receive a “golden handshake” or any other retirement-related incentive; and
WHEREAS, this appointment shall only be made once to this vacant position and therefore, will end no later than September 30, 2025, if not sooner by the terms of the employment agreement (Exhibit A); and
WHEREAS, the entire employment agreement, contract or appointment document between Robert Schultz has been reviewed by this body and is attached hereto (Exhibit A), and all other Agreements between the City and Robert Schultz are terminated and null and void but the City and Robert Schultz reserve its rights to challenge CalPERS determination the Robert Schultz is not classified as an independent contractor; and WHEREAS, this appointment shall be limited to 960 hours per fiscal year; and WHEREAS, the compensation paid to retirees cannot be less than the minimum nor exceed the maximum monthly base salary paid to other employees performing comparable duties, divided by 173.333 to equal the hourly rate; and WHEREAS, the monthly base salary rate paid to Robert Schultz will be equivalent to the City Attorney Salary approved by the City Council in the amount of $107.17 hourly, and WHEREAS, Robert Schultz has not and will not receive any other benefit, incentive, compensation in lieu of benefit, or other form of compensation in addition to this hourly pay rate.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MORRO BAY DOES HEREBY RESOLVE:
Section 1. The City Council hereby certifies the above recitals are true and correct and incorporated herein.
Section 2. The City Council does hereby appoint Robert Schultz to the position of Interim City Attorney and hereby certifies the nature of the appointment of Robert Schultz as described herein and detailed in the attached Employment Agreement and that this appointment is necessary to fill the critically needed position of Interim City Attorney for the City of Morro Bay until the recruitment process is completed.
Section 3. That the Mayor is authorized, on behalf of the City Council, to execute the Employment Agreement, a copy of which is attached as Exhibit A, setting forth the terms and conditions of employment for Robert Schultz.
Section 4. The City Clerk shall certify the passage and adoption of this resolution and enter it into the book of original resolutions.
///
Section 4. This resolution shall become effective immediately upon its passage and adoption.
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held this 13nd day of May 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSE:
_______________________________
CARLA WIXOM, Mayor
ATTEST:
________________________________
DANA SWANSON, City Clerk
INTERIM CITY ATTORNEY EMPLOYMENT AGREEMENT
LIMITED DURATION RETIRED ANNUITANT
This INTERIM CITY ATTORNEY EMPLOYMENT AGREEMENT-LIMITED DURAT IO N RETIRED ANNUITANT (“Agreement”) is effective on the 19th day of December 2024 and is made by and between the CITY OF MORRO BAY (“City”), a Municipal corporation, and ROBERT SCHULTZ (“Employee”), an individual. The City and Employee may be referred to individually as a “Party” or collectively as “the Parties.”
R E C I T A L S
WHEREAS, the City of Morro Bay (“City”) desires to hire Employee as a temporary, atwill employee for a definite period of time to serve in the position of Interim City Attorney for the City of Morro Bay, California, which is a position that requires specialized skills, and Employee desires to perform and assume responsibility as the Interim City Attorney on a temporary basis subject to the terms and conditions set forth in this Agreement; and WHEREAS, the parties wish to have Employee perform the services of Interim City Attorney, while the City conducts its recruitment for a permanent City Attorney, and will terminate such services upon the City’s selection and hiring of a permanent City Attorney; and WHEREAS, Government Code Sections 7522.56 and 21221(h) and 21224 permit retired annuitants under the California Public Employees’ Retirement System (“CalPERS”) to be employed without reinstatement from retirement upon appointment by a public agency to fill a vacant position on an interim basis during the recruitment to permanently fill the vacant position, if approved by the City Council; and
WHEREAS, Employee has served as a City Attorney with over twenty-five years of Municipal experience, and those specialized skills are necessary to support the continuing operations of the City during the recruitment; and
WHEREAS, the City wishes to establish the terms and conditions of Employee’s services to the City through this Agreement, in compliance with Government Code section 7522.56 and 21221(h) and 21224.
NOW, THEREFORE, in consideration of the mutual covenants contained herein, City and Employee hereby agree as follows:
A G R E E M E N T
1.0 EMPLOYMENT & DUTIES
1.1 Duties. City hereby employs Employee as Interim City Attorney for the City to perform the functions and duties of the City Attorney contained in the City of Morro Bay Municipal Code, as otherwise provided by law, ordinance, or regulation, and such further lawful duties as directed by the City Council. Employee shall devote his best efforts to the performance of these duties.
1.2 Work Schedule. Employee will be required to keep accurate time records of his hours worked and be enrolled in the myCalPERS system as a retired annuitant to ensure that he does not exceed 960 hours worked within the fiscal years that occur during the term
of this Agreement. In the position of Interim City Attorney, work before or after normal business hours may be required. Employee shall attempt to flex his hours (starting late or ending early or scheduling time off during the week), so that he does not work over 40 hours in a workweek.
1.3 Employment Status. Employee shall serve at the will and pleasure of the City Council and understands he is an "at-will" employee subject to summary dismissal without any right of notice or hearing, including any “Skelly” hearing. The City may terminate the employment of the Employee at any time, as set forth in Section 2.2 below. Employee shall not be subject to the City’s Personnel System Rules and Regulations and will not acquire a property interest in the position of Interim City Attorney. Employee is a temporary employee employed to perform specialized services in accordance with Government Code sections 7522.56 and 21221(h) and 21224.
2.0 TERM
2.1 Term. This Agreement is effective December 19, 2024. (“Commencement Date”). This Agreement shall expire as of the first of the following to occur:
(i) within 30 days of the employment commencement date of a permanent City Attorney to allow for a transition period, but no later than September 30, 2025; (ii) upon Employee working 960 hours for fiscal year 2024-2025 or 960 hours in any subsequent fiscal year; or (iii) upon termination of the Agreement by either Employee or the City as provided below.
2.2 Termination by City or Employee. The City may terminate this Agreement at any time with or without cause and with or without notice. At the time of termination, Employee shall not be entitled to any pay or benefits, except that which is owed for those hours already worked. Additionally, Employee may terminate this Agreement at any time with or without cause, provided, however he shall reasonably provide the City with at least two (2) weeks’ advance written notice prior to the effective date of termination, if practicable, unless a shorter period is acceptable to the City.
2.3 Transfer of Responsibilities. After Notice of Resignation, Termination, or selection of a permanent City Attorney, the Employee shall cooperate with the City, as requested by the City, to effect a transition of the Employee’s responsibilities and duties and to ensure that the City is aware of all matters being handled by Employee.
2.4 No Reappointment or Extension of Term. In accordance with state law and the requirements of the PERL, the Employee may only be appointed to this position one time (single appointment).
2.5 No Severance Pay. Upon termination, Employee shall not be entitled to severance pay, payment of any benefits, or any other form of compensation, and Employee expressly waives any and all rights with respect to severance pay.
3.0 COMPENSATION AND REIMBURSEMENT
3.1 Compensation and Compensation Cap. For the services rendered pursuant to this Agreement, the City agrees to pay Employee as Employee’s sole compensation, the amount of $107.17 per hour, which amount is in conformance with the requirements of Government Code Section 7522.56(d). The hourly rate is not more than the maximum nor less than the minimum monthly base salary paid to other employees performing comparable duties, reflected as an hourly rate by dividing the monthly base pay by 173.333. Because the Employee
is paid on an hourly basis, and in accordance with the FLSA, if the Employee works over 40 hours per workweek, the Employee will be paid for additional hours at the legally required overtime rate.
3.2 Medicare. Employee shall pay his own required Medicare contributions.
3.3 No Other Benefits. Employee shall not receive any benefits, incentives, compensation in lieu of benefits, or any other forms of compensation.
3.4 Reimbursable Expenses. Employee shall be entitled to reimbursement of mileage for driving required in the course of his work (not commuting), in accordance with City policies for all employees. Employee shall not be entitled to reimbursement for any other costs or expenses incurred in the performance of Employee’s duties under this Agreement unless said costs and expenses have received prior approval by the City Council and are supported by written documentation in accordance with the established policies and customary practices of the City.
4.0 ACKNOWLEDGMENT OF NO BENEFITS
4.1 Conflicts Prohibited. During the term of this Agreement, Employee shall not engage in any business or transaction or maintain a financial interest which conflicts, or reasonably might be expected to conflict, with the proper discharge of Employee’s duties under this Agreement. Employee shall comply with all requirements of law, including but not limited to, Sections 87100 et seq., Section 1090 and Section 1125 of the Government Code, and all other similar statutory and administrative rules.
4.2 Provision of Benefits Prohibited. Employee is a CalPERS retiree and will thus not be enrolled in CalPERS, other than as a retired annuitant solely for administrative recording keeping purposes (Employee will remain in retired status) and will report both the hours worked by Employee and pay pursuant to this Agreement. Employee understands and acknowledges that Government Code Section 21221(h) provides that a retired annuitant appointed to a vacant position pursuant to this subdivision shall not receive any benefits, incentives, compensation in lieu of benefits, or any other forms of compensation in addition to the hourly rate of compensation. Therefore, Employee will receive only the hourly wages described above, unless otherwise required by applicable law
5.0 ANNUITANT’S REPRESENTATIONS AND WARRANTIES
5.1 Employee warrants that he has been retired for service from state service, as defined in the Public Employees’ Retirement Law, for at least 180 days and that he therefore is eligible to be employed as a retired annuitant by the City.
5.2 Employee represents that he is currently not employed by any other CalPERS employer.
5.3 Employee warrants that he has not received any unemployment insurance compensation arising out of prior public employment during the prior 12-month period prior to appointment.
6.0 BONDS AND INDEMNIFICATION
6.1 Indemnification. For the purposes of indemnification and defense of legal actions, Employee shall be considered an employee of the City and entitled to the same rights and subject to the same obligations as are provided for all other employees of the City, as required by the Government Code. Accordingly, to the extent mandated by the Government Code, the City shall defend, hold harmless, and indemnify Employee against any tort, professional liability, claim or demand, or other legal action arising out of an alleged act or omission occurring within the course and scope of Employee’s services under this Agreement, subject to the exceptions and exclusions provided by law.
6.2 Bonds. City shall bear the full cost of any fidelity or other bonds, which may be required in the performance of Employee’s services under this Agreement.
7.0 NOTICES
Any notice required or permitted by this Agreement shall be in writing and shall be personally served or shall be sufficiently given when served upon the other party as sent by the United States Postal Service, postage prepaid and addressed as follows:
To City: To Employee:
City Council Robert Schultz
City of Morro Bay 3940 Broad Street
595 Harbor Street. Ste. 7-155
Morro Bay, CA 90755 SLO, CA 93401
Notices shall be deemed given as of the date of personal service or upon the date of deposit in the course of transmission with the United States Postal Service.
8.0 GENERAL PROVISIONS
8.1 Entire Agreement. This Agreement represents the entire agreement between the parties and supersedes any and all other agreements, either oral or in writing, between the parties with respect to Employee’s employment by City and contains all of the covenants and agreements between the parties with respect to such employment. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by either party, or anyone acting on behalf of either party, which are not embodied herein, and that no other agreement, statement or promises not contained in this Agreement shall be valid or binding upon either party.
8.2 Assignment. This Agreement is not assignable by either the City or Employee.
8.3 Severability. In the event any provision of this Agreement is finally held or determined to be illegal or void by a court having jurisdiction over the Parties, the remainder of this Agreement shall remain in full force and effect unless the parts found to be illegal or void are wholly inseparable from the remaining portions of this Agreement.
8.4 Effect of Waiver. The failure of either party to insist on strict compliance with any of the terms, covenants, or conditions of this Agreement by the other party shall not be
deemed a waiver of that term, covenant, or condition, nor shall any waiver or relinquishment of any right or power at any one time or times be deemed a waiver or relinquishment of that right or power for all or any other times.
8.5 Governing Law and Jurisdiction. This Agreement shall be governed by and construed in accordance with the laws of the State of California, which are in full force and effect as of the date of execution. Any action to interpret or enforce the terms of this Agreement shall be held exclusively in a state court in San Luis Obispo County, California.
8.6 Interpretation. This Agreement shall not be construed against the party or its representatives who drafted it or who drafted any portion thereof.
8.7 Authority. The persons executing this Agreement on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement, such party is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other Agreement to which said party is bound.
IN WITNESS WHEREOF, the City of Morro Bay has caused this Agreement to be signed and executed on its behalf by its Mayor, and duly attested by its officers thereunto duly authorized, and Employee has signed and executed this Agreement.
CITY OF MORRO BAY
_______________________________
Mayor, Carla Wixom
RETIRED ANNUITANT EMPLOYEE
________________________________
Robert Schultz
R O B E R T W. S C H U L T Z
3940 Broad Street, Suite 7-155
San Luis Obispo, CA 93401
(805) 550-3588
[email protected]
LEGAL
EXPERIENCE GENERAL: Seasoned attorney with experience in a wide range of legal matters. Proven ability to provide sound legal advice, effectively manage a legal department, and build positive relationships with board members, city officials, employees, other governmental agencies, and the community.
Conducted extensive legal research and prepared legal memorandums, opinion and staff reports on interpreting laws, pending legislation and court decisions. My legal experience includes trials and legal issues related to tort claims, land use, construction, real estate transactions, energy, water, wastewater, and labor. Admitted to practice in the courts of the State of California, the United States District Court for the Central Districts of the State of California, and the United States Ninth Circuit Court of Appeals. 2023-Present SAN LUIS OBISPO LEGAL ASSISTANCE FOUNDATION, Staff Attorney Part Time Staff Attorney for a nonprofit corporation that provides free legal services to the underserved community. My primary focus is with housing and government benefit issues.
2023-Present OCEANO COMMUNITY SERVICES DISTRICT, Interim District Counsel Providing legal advice and opinions to Town officials and Staff and help recruit and retain permanent District Counsel.
2013 -2022 TOWN OFLOS GATOS, Town Attorney/Risk Manager Provided legal advice and opinions to Town officials, departments, employees, boards, and commissions. Drafted and reviewed all contracts, real estate transactions, ordinances, resolutions, and staff reports. Represented the Town’s legal interests before judicial and administrative agencies. Conducted employee internal investigations, landlord/tenant mediations, and prosecuted violations of the Municipal Code. Also served as the Risk Manager and managed outside special counsel.
1998- 2013 CITY OFMORRO BAY,City Attorney/Risk Manager
Provided legal advice and opinions to City officials, departments, employees, boards, and commissions. Drafted and reviewed all contracts, leases, ordinances, resolutions, staff reports and other City documents. Rendered legal advice and opinions in complex environmental compliance matters, land use/natural resource strategies, water rights and permitting and protection of water supply and wastewater discharge permits. Represented the City’s legal interests in labor negotiations, before judicial and administrative agencies including the Water Quality Control Board, the Energy Commission, and the Coastal Commission. Conducted internal investigations and managed the work of outside special counsel. Also served as the Risk Manager for the City.
1998- 2013 SAN SIMEON COMMUNITY SERVICES DISTRICT , District Counsel Provided legal advice and services to the District Board and Committees.
Drafted and reviewed all contracts, ordinances, resolutions, and other documents. Rendered legal opinions and represented the District in complex environmental compliance matters and in the permitting and protection of the District’s water supply and wastewater discharge permits. Represented the District’s legal interests before judicial and administrative agencies including the Water Quality Control Board and Coastal Commission. 1997-2002 HUNT & ASSOCIATES, Attorneys and Counselors at Law:
Senior Attorney serving the Firm and its clients in the Firm’s litigation practice group and served as Assistant City Attorney for Pismo Beach. Extensive trial experience in all aspects of civil litigation, including insurance defense, public entity defense, land use, construction, real estate, and personal injury. 1990 - 1997 BAILEY &SCHULTZ, APC
PARTNER of a law firm specializing in land use, construction and public works disputes against Cities and Counties.
1987 - 1990 ANDRADE &HARGAN APC:
ASSOCIATE Attorney in civil litigation firm specializing in insurance defense and construction law.
EDUCATION JD, December of 1986, SOUTHWESTERN UNIVERSITY SCHOOL OFLAW.
BS, June of 1983, Business Administration, UNIVERSITY OF LA VERNE.
OTHER
EXPERIENCE
During my career, I have also served as special counsel for the City of Santa Maria, Guadalupe, Pismo Beach, Atascadero, Kings City, Solvang and Gilroy. The legal assignments included conducting internal investigations, serving as a hearing officer for administrative appeals, and providing legal advice on contracts, lease issues, and development projects.
In addition, I have served on various boards and committees including the Cal Cities State Brown Act Board, the Cal Cities State Public Works Board, the Cal Cities State Economic Development Committee, the Cal Cities State Housing Committee, the Cal Cities State Marijuana Committee, the PLANJPA Risk Management Executive Board, the City of San Luis Obispo Architectural Review Board, the City of Tustin Recreation & Parks Board, the Cal Poly Athletic Board, the San Luis Obispo Downtown Economic Development Board, and the Association of General Contractors Legal Advisory Board.
,
Prepared By: _DS/YK_ ___ Dept Review: ________
City Manager Review: YK City Attorney Review: RWS
Staff Report
TO: Honorable Mayor and City Council DATE: April 25, 2025 FROM: Yvonne Kimball, City Manager
SUBJECT: Adoption of Resolution No. 23-25 Reestablishing the City’s Flagpole Policy
RECOMMENDED ACTION
Adopt Resolution No. 23-25 rescinding Resolution Nos. 103-22 and 104-22 and reestablishing the City’s Flagpole Policy to allow only the United States, State of California, and City of Morro Bay flags to be displayed on flagpoles located at City facilities.
ALTERNATIVES
No alternatives are recommended.
FISCAL IMPACT
No immediate fiscal impact.
BACKGROUND
At the April 22, 2025 Regular Meeting, the Council reviewed the current Flagpole Policy Resolution No. 103-22 (Attachment 1). Adopted in November 2022, it provides guidelines about the display of flags at City facilities. It declares the City’s flagpoles are not intended to be a forum for free expression by the public, but rather are used to express official views of the City. The Policy further authorized commemorative and non-traditional flags can be displayed at City facilities “only upon City Council direction and upon adoption of a resolution by a majority vote, consistent with the City’s vision, mission, and ongoing and strategic priorities.” Pursuant to Resolution No. 103-22 Flagpole Policy, the Council adopted Resolution No. 104-22 authorizing the raising of the Pride Flag at City Hall during the month of June.
In the spirit of establishing inclusive policies that represent all residents, directed staff to bring back a resolution rescinding Resolution Nos. 103-22 and 104-22 and allows for only the United States, State of California and City of Morro Bay flags to be displayed on flagpoles at City facilities. As a result, Resolution 23-25 is proposed.
ATTACHMENT(S)
1. Resolution No. 23-25 reestablishing a Flagpole Policy AGENDA NO: 7.f
MEETING DATE: May 13, 2025
RESOLUTION NO. 23-25
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA,
RESCINDING RESOLUTIONS 103-22 AND 104-22 AND RE-APPROVING THE CITY OF MORRO BAY’S FLAGPOLE POLICY
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 displays and handles all flags in accordance with Federal and State law; and
WHEREAS, the City does not have local rules or guidelines regarding the display of flags at City facilities; and
WHEREAS, the City wishes to adopt a policy to provide clear guidelines about the display of flags at City facilities that declares the City’s flagpoles are not intended to be a forum for free expression by the public, but rather are used to express official views of the City; and WHEREAS, said City facilities and flagpoles are under the exclusive control of the City and are not public forums for the expression of the view of the public; and WHEREAS, in November 2022, the City Council adopted Resolution No. 103-22 establishing the City’s Flagpole Policy and allowing for Commemorative Flags to be flown only upon the adoption of a resolution by a majority vote of the City Council; and WHEREAS, in November 2022, the City Council adopted Resolution No. 104-22 approving the flying of the Pride Flag at City Hall during the month of June of each year; and WHEREAS, the City Council desires to rescind Resolutions 103-22 and 104-22 and establish a Flagpole Policy that allows for only the United States flag, the State flag, and the City flag to be flown at City facilities.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, does hereby
1. Rescind Resolution Nos. 103-22 and 104-22, and
2. Approve and Readopt the policy for the display of flags at City facilities as provided in Exhibit A attached hereto.
PASSED AND ADOPTED, by the City Council of the City of Morro Bay, at a regular meeting thereof held on the 13th day of May 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSE:
______________________________________
CARLA WIXOM, Mayor
ATTEST:
______________________________
DANA SWANSON, City Clerk
Exhibit A
CITY OF MORRO BAY POLICY FOR FLYING FLAGS AT
CITY FACILITIES
It is the policy of the City of Morro Bay that the City's flag poles are not intended to serve as a forum for free expression by the public but rather for the display of the Flags of the United States, the State of California, and the City of Morro Bay. Therefore, flag poles located at all City facilities may only be used to display the flags of the United States, the State of California, and the City of Morro Bay.
Prepared By: ___CM Dept Review: __ lt _
City Manager Review: __YK______ City Attorney Review: _RWS_____ Staff Report
TO: Honorable Mayor and City Council DATE: May 6, 2025
FROM: Chris Munson, Harbor Director
SUBJECT: Adopt Resolution No. 24-25 Authorizing a Blanket Waiver of Slip Qualifications during Fishery Closures
RECOMMENDED ACTION
Adopt Resolution No. 24-25, authorizing a blanket waiver of slip qualifications for fishery closures.
ALTERNATIVES
Not approving the blanket waiver and addressing the issue year-to-year.
FISCAL IMPACT
The City managed slips are for commercial fishing boats. Although they can be subleased to noncommercial fishing boats at a higher rate, prioritizing subleasing for higher revenue is not the intent.
If a blanket waiver is enacted, due to the limited numbers of commercial salmon fishermen in City slips and piers, it would not be anticipated to result in a significant negative fiscal impact to the Harbor Fund.
BACKGROUND
Salmon season is typically open May through September every year. However, during the past three years, the salmon season has been closed.
In April 2024, the Pacific Fishery Management Council (PFMC) acted unanimously to recommend closure of California’s commercial and recreational ocean salmon fisheries through the end of the year, mirroring recommendations made to close the fisheries in 2023. In April 2025, PFMC continued the closure for 2025.
According to the California Department of Fish and Wildlife, in 2024, salmon stocks continued to be impacted in California from ongoing issues associated with drought and climate disruption. The salmon that were present and returning to California’s coast and rivers were impacted by a multi-year drought, severe wildfires, and associated impacts to spawning and rearing habitat, harmful algal blooms and ocean forage shifts. The low ocean abundance forecasts, coupled with low 2023 returns, led the PFMC to recommend full closure of California’s commercial and recreational ocean salmon fisheries.
To qualify for the commercial fishing slip rate, commercial fishermen must provide receipts or tickets as proof of active fishing during the season. Vessels 26 feet in length or less require $5,000, while AGENDA NO: 7.g
MEETING DATE: May 13, 2025
vessels greater than 26 feet in length require $10,000. However, due to the closures, meeting this requirement has not been possible
Although Morro Bay commercial fishermen are provided the opportunity to maintain their discount on slips fees by applying for waivers individually, they have been for reasons that are specific to that fisherman, such as boat repairs/inoperability, health, or other reasons along these lines. A fisherman is also limited to 2 waivers in a 10-year period.
DISCUSSION
The recent salmon closures have been completely out of local fisherman’s control. By enforcing the slip qualification, it will put an even greater financial strain on the commercial fishermen who were unable to fish due to the closure. Although charging the non-commercial rate will increase revenue to the Harbor Fund, it is defensible to provide a blanket waver to support the viability of the Morro Bay commercial fishing fleet which has regionwide economic benefits.
At the April Harbor Advisory Board (HAB) meeting, HAB recommended a blanket waiver of slip qualifications for salmon fishermen due to the 2024 season closure. The HAB proposed that the Harbor Director should pursue an automatic blanket waiver of slip qualifications for future fishery closures through the City Council.
Following HAB’s recommendation, staff is seeking this automatic blanket waiver of slip qualifications when there is a fishery closure. Commercial fishermen will be required to have an active permit for the affected fishery for the vessel which uses the slip.
CONCLUSION
Staff recommend the City Council adopt Resolution 24-25, authorizing a blanket waiver of slip qualifications for fishery closures. Approving this waiver will reduce staff time and support Morro Bay’s commercial fishing fleet.
ATTACHMENTS
1. Resolution No. 24-25 Authorizing Automatic Exemption from Qualifying as a Commercial Fishing Vessel for Existing and Affected Commercial Slip Holders due to Fishery Closures
RESOLUTION NO. 24-25
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA
AUTHORIZING AUTOMATIC EXEMPTION FROM QUALIFYING
AS A COMMERCIAL FISHING VESSEL FOR EXISTING AND AFFECTED
COMMERCIAL SLIP HOLDERS DUE TO FISHERY CLOSURES
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 requires all City commercial fishing slip holders to qualify as a commercial fishing vessel under Ordinance 588 and Resolution 23-91; and
WHEREAS, from 2023-2025, the Pacific Fishery Management Council (PFMC) acted to recommend closure of California’s commercial and recreational ocean salmon fisheries; and
WHEREAS, due to these closures, many affected commercial fishers were unable to qualify as a commercial fishing vessel; and
WHEREAS, closures for salmon and other fisheries are anticipated to be more common and ongoing for the foreseeable future.
NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Morro Bay, California hereby authorizes an automatic exemption for existing City commercial fishing slip holders affected by significant fishery closures, as determined by the City Manager or their designee, from qualifying as a commercial fishing vessel, which will not count against slip holders’ allowed two exemptions in any ten-year period.
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 13th day of May 2025 on the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSE:
______________________________
CARLA WIXOM, Mayor
ATTEST:
_____________________________
DANA SWANSON, City Clerk
Prepared By: ___CM Dept Review: __ lt _
City Manager Review: _YK_______ City Attorney Review: __RWS____ Staff Report
TO: Honorable Mayor and City Council DATE: May 6, 2025
FROM: Chris Munson, Harbor Director
Lori Thompson, Harbor Business Manager
SUBJECT: Approve Lease Amendment for Morro Bay Marina Moorings
RECOMMENDED ACTION
Adopt Resolution No. 25-25 approving Amendment #1 to the lease agreement for Mooring Zone A1- 4 located at 699 Embarcadero
ALTERNATIVES
The City Council can elect to not approve the lease amendment
FISCAL IMPACT
The mooring lease site’s rent is currently $40,244 per year for 26 moorings.
BACKGROUND
The current Morro Bay Marina lease is 10 years which began on June 30, 2015 and expires on June 30, 2025. The lease includes 26 moorings spaces. The rental rate is based on the private mooring rate established in the City’s fee schedule. It is set to the City’s rate every 5 years and is adjusted by CPI every year.
The leaseholder is responsible for the maintenance, billing and occupancy of the moorings. They also provide the amenity of dock space for mooring skiffs associated with their nearby land lease. The current agreement is beneficial to the City because there is only one leaseholder to conduct business with, rather than 26 separate mooring patrons.
DISCUSSION
The leaseholder requested an extension of 16 years until June 30, 2041 so that it would expire at the same time as their adjacent leases. Harbor Department staff met with the leaseholder and City Council for negotiations.
Since the City plans to evaluate its mooring designs in the bay soon, the City preferred to have a shorter-term lease in case the new design changed the mooring field. Five years were determined to be sufficient to evaluate the design’s impacts while providing the leaseholder with enough time to enter into longer-term agreements with their mooring renters.
AGENDA NO: 7.h
MEETING DATE: May 13, 2025
The City has been considering evaluating fee increases beyond CPI, the lease amendment was updated to ensure rent remains tied to the City’s fee schedule and is reestablished annually rather than every 5 years, allowing any increases beyond CPI increase to be captured.
CONCLUSION
Extending the lease for 5 years will provide enough time to evaluate any changes necessary for the mooring design upgrades and provide the leaseholder with time to enter into agreements with mooring patrons. Reestablishing the rates annually will capture any City rate increases outside of the normal CPI increases. Staff recommends adopting the resolution and approving the amendment.
ATTACHMENTS
1. Resolution No. 25-25 Approving Amendment #1 to the Lease Agreement for Mooring Zone A1-4
2. Amendment #1 to Lease Agreement for Mooring Zone A14. Located at 699 Embarcadero
RESOLUTION NO. 25-25
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA
APPROVING AMENDMENT #1 TO THE LEASE AGREEMENT FOR MOORING ZONE A1-4, LOCATED AT 699 EMBARCADERO,
BETWEEN THE CITY OF MORRO BAY AND MORRO BAY MARINA
T H E C I T Y C O U N C I L
City of Morro Bay, California
WHEREAS, the City of Morro Bay is the lessor of certain properties on the Morro Bay Waterfront described as City Tidelands leases and properties; and WHEREAS, Morro Bay Marina. is the current master leaseholder of Mooring Zone A1-4; and WHEREAS, this Amendment #1 is to that certain Lease, which was signed on behalf of the Parties and is effective as of June 30, 2015, (the "Master Lease"); WHEREAS, the Parties agree to amend the term of the Master Lease to add an additional five (5) additional years,
WHEREAS, the Parties agree to amend the Master Lease to conform with the standard privately owned mooring rent on City’s Master Fee Schedule and adjusted annually throughout the term; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, as follows:
1. The attached Amendment #1 to the Master Lease Agreement for Mooring Zone A1-4 is hereby approved.
2. The Mayor is hereby authorized to execute said Master Lease Agreement Amendment.
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 13
th day of May 2025 on the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSE:
______________________________
Carla Wixom, Mayor
ATTEST:
_____________________________
Dana Swanson, City Clerk
1 of 2
AMENDMENT #1 TO THE LEASE AGREEMENT FOR
MOORING ZONE A1-4,
LOCATED AT 699 EMBARCADERO
This Amendment ("this Amendment #1") is deemed to have been made and entered into as of 13th day of May 2025, by and among the City of Morro Bay, a municipal corporation of the State of California, whereinafter called "City," and Morro Bay Marina, hereinafter called "Tenant." (Collectively, City and Tenant are sometimes referred to herein as the "Parties.") WHEREAS, this Amendment #1 is to that certain Lease, which was signed on behalf of the Parties and is effective as of June 30, 2015, (the "Master Lease"); WHEREAS, the Parties agree to amend the term of the Master Lease to add an additional five (5) additional years,
WHEREAS, the Parties agree to amend the Master Lease to conform with the standard privately owned mooring rent on City’s Master Fee Schedule and adjusted annually throughout the term; and
NOW THEREFORE, Tenant and City agree, as follows: Tenant and City shall provide for the amendment of Lease as follows:
1. SECTION 1.01 TERM:
The Termination Date shall be amended to read “June 30, 2030”.
2. SECTION 2.02 CPI ADJUSTMENT TO ANNUAL MINIMUM RENT:
Remove language in its entirety.
The parties agree as of every July 1 following the Commencement Date (each, a "CPI Adjustment Date"), the annual Minimum Rent shall be increased or decreased in direct proportion to any upward or downward movement in the Consumer Price Index for January 2015 which is hereby agreed to be 239.72 (Base Index). The percentage adjustment for any given year shall be based on the monthly average Consumer Price Index for the calendar year immediately preceding the CPI Adjustment Date as compared with the Base Index. The Consumer Price Index referred to herein is the Consumer Price Index (all items indexes, all urban consumers) for Los Angeles - Anaheim - Riverside, California, compiled and published by the United States Department of Labor, Bureau of Labor Statistics, 1982-84 Base Year = 100 (the "Index").
The Annual Minimum Rent shall be adjusted as of each CPI Adjustment Date, and will remain in effect as adjusted until the next CPI Adjustment Date. As an illustration only, if the Base Index (Jan. 1, 1999 CPI) is 166.1 and the monthly average CPI for 2000 is 171.6, then the percentage increase is equal to 3.31%. Therefore, the Minimum Rent would be increased by 3.31% as of July 1, 2001, and would continue at that rate through June 30, 2002.
If the United States Department of Labor, Bureau of Labor Statistics, ceases to compile and make public the Consumer Price Index as now constituted and issued, but shall substitute another index in its place, then that substituted index shall be used for the purpose of adjusting the Minimum Rent for the Premises. If the Consumer Price Index is changed so the base year differs from that in effect on the Commencement Date, then the Consumer Price Index shall be converted in accordance with the conversion factor published by the United States Department of Labor, Bureau of Labor Statistics.
2 of 2
3. SECTION 2.03 CALCULATION OF NEW MINIMUM RENT: Is hereby replaced, thereto to read as follows:
Commencing on the first anniversary of the Commencement Date, and annually thereafter, the Minimum Rent shall be adjusted in accordance with the rate established in the City’s Master Fee Schedule for privately-owned moorings, based on the number of moorings authorized for TENANT within the Premises. The annual Minimum Rent shall be calculated by multiplying the current Master Fee Schedule mooring rate by the total number of TENANT’s moorings and rounded up to the nearest $500 increment.
As an example only, if the Master Fee Schedule rate is $960 per mooring per fiscal year and TENANT maintains 26 non-transient moorings, the annual Minimum Rent would be $24,960 and rounded up to $25,000.
In the event the adjusted Minimum Rent calculation results in a lower amount than the Minimum Rent for the prior year, the then-current Minimum Rent shall remain unchanged until such time as the adjusted calculation exceeds the prior Minimum Rent.
3. Except as expressly stated herein, all provisions of the Master Lease shall remain in full force and effect.
4. The effective date of this Amendment # 1 shall be deemed to be date first noted above.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment #1 as of the date written above.
CITY OF MORRO BAY Morro Bay Marina
By: ______________________ By:
Carla Wixom, Mayor Tenant
APPROVED AS TO FORM:
Rob Schultz, Interim City Attorney
ATTEST:
_____________________________
Dana Swanson, City Clerk
Prepared By: ___CC____ Dept Review: _GK____
City Manager Review: __YK___ City Attorney Review: _RWS____ Staff Report
TO: Honorable Mayor and City Council DATE: May 6, 2025
FROM: Cindy Cecil, PE – City Engineer
SUBJECT: Adoption of Resolution No. 26-25 Approving the Engineer’s Report and Declaring the Intent to Levy the Annual Assessment for the Cloisters Landscaping and Lighting Maintenance Assessment District (LLMAD)
RECOMMENDED ACTION
Adopt Resolution No. 26-25 declaring the intent to levy the annual assessment for the maintenance of the Cloisters Park and Open Space for Fiscal Year (FY) 2025/26 and approving the Engineer’s Report.
FISCAL IMPACT
The Engineer’s Report estimates the annual costs of maintaining the Cloisters Park and Open Space for the upcoming year to be in excess of $148,944, which is the total assessment amount as established by Resolution 68-96 in the year 1996 when the district was formed. The true costs of maintaining Cloisters Park, Open Space, trails, as well as the medians and parkways within the district, exceed the assessment revenue received. All maintenance costs in excess of the district’s available revenues will be subsidized by the General Fund per City Council direction on May 24, 2004.
The district will have a fund balance of $143,048 at the end of FY 2024/25, pending audited actuals from this year. The fund balance is to be used for deferred maintenance and one-time expenses, permits, and savings for future capital projects. Since the assessment collected will no longer have a surplus to be added for further accumulation of this fund, the fund will be exhausted once remaining funds are used for upcoming capital project needs. The fund balance and its use is not part of the content of the Engineer’s Report. In alignment with Government Finance Officers Association (GFOA) recommendations to simplify budgeting and budget presentations to the public, and to reduce duplicate budgeting associated with interfund transfers, the Cloisters Accumulation Fund was consolidated with the Cloisters Assessment District Fund (570) at the end of FY 2021-22. This is also consistent with Council direction on April 26, 2022, to eliminate enterprise accumulation funds.
SUMMARY
On April 8, 2025, City Council adopted Resolution No. 26-25, which initiated the proceedings to levy the annual assessment to fund the maintenance of the Cloisters Park and Open Space. As ordered by the Council and required by law, an Engineer’s Report has been prepared detailing the estimated AGENDA NO: 7.i
MEETING DATE: May 13, 2025
annual assessment for the parcel owners for FY 2025/26 and expenditures for the district. Staff intends to continue to perform most maintenance tasks with City Maintenance staff and directly allocate their time spent maintaining the site to the assessment district. Upon adoption of Resolution No. 26-25, the next and final step in the annual levy of assessment process is the public hearing after which the City Council orders the levy of assessment.
BACKGROUND/DISCUSSION
Tract 1996, known as the Cloisters development, is a 124-lot subdivision bounded by State Highway One at the east, Morro Strand State Beach at the west, Morro Bay High School at the south, and Azure, Coral, and San Jacinto Streets at the north.
It was well known that any development at the Cloisters would require a balance between continuation of lateral and vertical access within and through the property, while at the same time conserving the sensitive plant and wildlife resources present. Zoning on most of the Cloisters site is Planned Development, Single-Family Residential with the sand dunes and wetlands zoned Environmentally Sensitive Habitat Area (ESHA). The purpose of the Planned Development (PD) overlay zone is to provide for detailed and substantial analysis of development on parcels, which because of location, size or public ownership, warrant special review. That overlay zone was also intended to allow for the modification of, or exemption from, the development standards of the primary zone, which would otherwise apply if such action would result in better design or other public benefit.
The findings and conditions of approval for the project were numerous. For example, City Council made findings that the Cloisters project could cause significant environmental impacts relating to land use, visual/aesthetics, affordable housing, traffic generation, air quality noise, geology, drainage and water quality, ecological resources, and public services; but those impacts were mitigated by the recommended conditions. In addition, City Council made further findings the Cloisters project was in compliance with the specific policies of the General Plan/Land Use Plan (GP/LUP) and Zoning Ordinance with respect to protection of views, environmentally sensitive resources, public access, circulation, hazards and other requirements so long as the environmental impacts were mitigated.
Finally, City Council made findings that the Cloisters project complies with the Morro Bay Municipal Code (MBMC) with respect to optional subdivision design and related improvements, and the optional design is justified in order to contribute to a better community environment through the dedication of extensive public areas, restoration of the ESHA area, provision of scenic easements, provision of larger than usual lots adjacent to such areas, and maintenance of a consistent lot layout pattern adjacent to existing development on the north side of Azure Street.
In order to mitigate the environmental impacts of the project, and to provide a greater than normal public benefit (upon modification of otherwise applicable standards) as required in a PD overlay zone, the conditions of approval for the project required the applicant to form an assessment district for the maintenance of the public park, bicycle pathway, right-of-way landscaping, coastal access ways, ESHA restoration areas and any other improved common areas to be privately held or dedicated to the City. The public park area, as well as all open space improvements and the assessment district, were part of many detailed discussions during City and Coastal Commission hearings.
The assessment district formation proceedings began in August 1996, with the owners of the real property within the proposed district petitioning the City and consenting in writing to the formation of the district pursuant to the Landscape and Lighting Act of 1972. The assessment district formation
proceedings concluded with the final public hearing for formation on September 23, 1996, which levied the annual assessment of $148,944 for the maintenance of the 27.75 acres of park and open space.
In preparing the various purchase and sale documents for each individual lot, including the Conditions, Covenants, and Restrictions, the developer was especially careful to call out the existence of the assessment district and to make certain the existence of the assessment district would not come as a surprise to anyone who purchased one of the lots. The Developer assured the City, “there will be no surprises to prospective owners about the assessments or their amounts.” In drafting all the project documents, the City and the developer reinforced the special benefits for the residents of the Cloisters Project with the public amenities and easements. Each Cloister’s lot directly benefits from the public park, bicycle pathway, right-of-way landscaping, coastal access ways, ESHA restoration areas and coastal access ways. There was also created and reserved in favor of each owner in the Cloisters Development, Conservation Space in parcels 065-386-005 & 0065-386-016, and a Scenic Conservation Easement in parcel 065-386-020 for view, open space, scenic, passive recreation and coastal access, none of which will be developed with any improvements or structures, unless necessary and proper for the restoration and maintenance of the Environmentally Sensitive Habitat Area.
On September 23, 1996, the City Council passed Resolution No. 69-96, which accepted the final map for Tract 1996 known as the Cloisters Subdivision, consisting of 124 lots. Lots 1 through 120 were for single-family residential purposes, Lots 121, 122 (APN 065-386-005 & 016 on attached Assessor’s Map) were for the 27.75-acre park and open space, Lot 124 was dedicated for a fire station and Lot 123 was offered to the State. Lots 121, 122, 123, and 124 are not part of the assessment district. Lot 124 was declared as surplus by the city and sold in 2021. The new owner is now going through the process of developing and subdividing the property. The City intends to pursue annexation of these new lots into the Cloisters LLMAD. This will require future actions by the City Council to be brought forth by staff.
As part of the annual assessment process, staff is required to provide an Engineer’s Report, which is an estimate of costs for maintenance of the Cloisters LLMAD. The cost estimates are based on the maintenance standards currently adhered to in existing parks within Morro Bay and included in the Flat Rate Manual for Parks Maintenance, as well as maintenance costs from the current fiscal year.
Personnel costs, as well as supplies and services, have risen significantly in the last several years.
The true cost of maintaining the assessment district exceeds the revenue received from the district and is estimated to be 32% higher than assessment revenues collected. However, all maintenance costs in excess of the district’s available revenues will be subsidized by the General Fund per City Council direction on May 24, 2004. The assessment for providing maintenance of the Cloisters LLMAD is $1,241.20 per parcel for fiscal year 2025/26 for a total annual assessment of $148,944.
The increase in the cost of goods and services now precludes a fund surplus for carryover to be set aside for capital projects. Once the remaining surplus funds are exhausted, the City will propose capital improvements through the normal budget process with the use of General Funds, Measure Q & E Funds, or other sources such as grant funding.
CONCLUSION
The process for the annual levy of assessment for the Cloisters Landscaping and Lighting Maintenance Assessment District requires the City Council to receive the Engineer’s Report, approve and/or modify the report and adopt a Resolution of Intention. The Resolution of Intention gives notice of the time, date, and place for a public hearing by the City Council on the issue of the levy of assessment.
The public hearing has been set for a regular City Council meeting on June 24, 2025, at or about 5:30 p.m. to be held at the Morro Bay Veterans Hall. A summary of the Resolution of Intention shall be published in the newspaper as legal notice of a public hearing, to which all interested parties are afforded the opportunity to be heard either through written or oral communication. Upon completion of the public hearing, the City Council may adopt a resolution ordering the levy of the annual assessment.
ATTACHMENTS
1. Resolution No. 26-25
2. Cloisters Landscaping and Lighting Maintenance Assessment District 2025/26 Engineer’s Annual Levy Report
RESOLUTION NO. 26-25
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA,
DECLARING THE CITY’S INTENTION TO LEVY THE ANNUAL ASSESSMENT FOR
CLOISTERS LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT PURSUANT TO THE “LANDSCAPING AND LIGHTING ACT OF 1972” (STREETS AND HIGHWAYS SECTIONS 22500 ET.SEQ.) FOR FISCAL YEAR 2025/26
T H E C I T Y C O U N C I L
City of Morro Bay, California
WHEREAS, all property owners of the original Cloisters subdivision requested the City of Morro Bay form a maintenance assessment district to fund the maintenance of the Cloisters Park and Open Space; and
WHEREAS, the Landscaping and Lighting Act of 1972 (Streets and Highways Code sections 22500 et. seq.) (the "Act") enables the City to form assessment districts for the purpose of maintaining public improvements; and
WHEREAS, pursuant to Section 22623 of the Act, the City Engineer has filed in the Office of the City Clerk, and submitted for review to the City Council, a report entitled "CLOISTERS LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT 2025/26 ENGINEER’S ANNUAL LEVY REPORT," dated May 13, 2025, prepared in accordance with Article 4 of the Act, commencing with Section 22565; and WHEREAS, pursuant to Section 22608.2 of the Act, the subdivider was required by City Ordinance to install improvements for which an assessment district was required to assure continued and uninterrupted maintenance of the Cloisters Park and Open Space; and WHEREAS, pursuant to the intent of Article XIII, Section 4, of the California Constitution, the property owners have elected to form the Cloisters Landscaping and Lighting Maintenance Assessment District.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Morro Bay, Section 1. The City Council approves the Engineer’s Report.
Section 2. It is the intent of the Council to order the annual levy and collection of assessments for the Cloisters Landscaping and Lighting Maintenance Assessment District generally located as shown in Exhibit “A” attached hereto at a public hearing to be held at the Regular City Council Meeting on June 24, 2025, at or about 5:30 p.m., at the Veterans Hall in Morro Bay.
Section 3. The improvements to be maintained at the Cloisters Park and Open Space are specified in the Engineer's Report dated May 13, 2025, which is hereby approved.
Section 4. The assessment upon assessable lots within the district is proposed to total $148,944 or $1,241.20 per assessable parcel for Fiscal Year 2025/26.
Section 5. Staff is directed to continue the Major Maintenance/Capital Improvement Program that will address items requiring significant expenditures in future budget cycles with available capital fund balance until it is exhausted. Any projects identified with input from the community shall utilize surplus fund balance and shall be approved through the budget or budget amendment process by the City Council prior to implementation.
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting held on this 13
th day of May, 2025, by the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSE:
_______________________________
CARLA WIXOM, Mayor
ATTEST:
__________________________________
DANA SWANSON, City Clerk
Exhibit A
CLOISTERS
LANDSCAPING AND LIGHTING
MAINTENANCE ASSESSMENT DISTRICT
DISTRICT BOUNDARY DIAGRAM
The boundary diagram for the District have previously been submitted to the City Clerk in the format required under the 1972 Act and, by reference, are hereby made part of this Report. The boundary diagram and Tract Map are available for inspection at the office of the City Clerk or the City Engineer during normal business hours. The following diagram provides an overview of the District and the lots that are part of the District.
CITY OF MORRO BAY
CLOISTERS
LANDSCAPING AND LIGHTING
MAINTENANCE ASSESSMENT DISTRICT
2025/26 ENGINEER’S ANNUAL LEVY REPORT
May 13, 2025
- ii -
AFFIDAVIT FOR 2025/26 ENGINEER’S ANNUAL LEVY REPORT
CITY OF MORRO BAY
CLOISTERS
LANDSCAPING AND LIGHTING
MAINTENANCE ASSESSMENT DISTRICT
This report describes the proposed maintenance, improvements, budgets, zone of benefit and assessments to be levied on parcels of land within the Cloisters Landscaping and Lighting Maintenance Assessment District for the fiscal year 2025/26, as the same existed at the time of the passage of the Resolution of Intention. Reference is hereby made to the San Luis Obispo County Assessor’s maps for a detailed description of the lines and dimensions of parcels within the District. The undersigned respectfully submits the enclosed Report as directed by the City Council and, to the best of my knowledge, information, belief, the report, the assessments and diagrams have been prepared and computed in pursuant to the Landscaping and Lighting Act of 1972.
Dated this 13
th day of May, 2025
Exp. 03/31/2027
________________________
Cynthia Cecil, PE – City Engineer
- iii -
CITY OF MORRO BAY
CLOISTERS
LANDSCAPING AND LIGHTING
MAINTENANCE ASSESSMENT DISTRICT
ENGINEER’S REPORT
Table of Contents
Page
I. Overview ............................................................................................................................... 1 A. Introduction ..................................................................................................................... 1 B. Assessment History and Current Legislation .................................................................. 2 II. Description of the District ..................................................................................................... 4 A. Improvements Authorized by the 1972 Act .................................................................... 4 B. Maintenance Items .......................................................................................................... 4 III. Method of Apportionment..................................................................................................... 6 A. General ............................................................................................................................ 6 B. Benefit Analysis.............................................................................................................. 6 C. Maintenance Tasks.......................................................................................................... 7 D. Maintenance Costs .......................................................................................................... 7 E. Apportionment of Assessment ........................................................................................ 8 Detailed Maintenance Tasks………………………………………………………... Attachment A District Budget - Fiscal Year 2025/26……………………………………………. Attachment B Parcel/Assessment Table…………………………………………………………….Attachment C District Boundary Diagram………………………………………………………….Attachment D
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I. Overview
A. Introduction
The City Council of the City of Morro Bay (hereafter referred to as “City”), County of San Luis Obispo, State of California, previously formed and has levied and collected annual assessments for the District designated as:
CLOISTERS LANDSCAPING AND LIGHTING
MAINTENANCE ASSESSMENT DISTRICT
(hereafter referred to as “District”) pursuant to the provisions of the Landscaping and Lighting Act of 1972, being Part 2 of Division 15 of the California Streets and Highways Code, commencing with Section 22500 (hereafter referred to as the “1972 Act”), and in compliance with the provisions of the California State Constitution Articles XIIIC and XIIID (hereafter referred to as the “Constitution” or “Proposition 218”).
This Report has been prepared in accordance with Chapter 1, Article 4 (commencing with Section 22565) of the 1972 Act and describes the District and changes to the District including: territories annexed; modifications to the improvements or organization; and the proposed budgets and assessments applicable for fiscal year 2025/26.
History
Tract 1996, known as the Cloisters development, is a 124-lot subdivision bounded by State Highway One at the east, Atascadero State Beach at the west, Morro Bay High School at the south, and Azure, Coral, and San Jacinto Streets at the north (the “Cloisters”).
The Cloisters, prior to development, was a privately owned 80-plus acre expanse of open land.
The property was historically used for lateral and vertical access and contained a large area of sensitive sand dunes abutting the eastern edge of Atascadero State Beach. Over the years, it was the subject of various land development proposals including an RV park, a 390-unit condominium development, a 466-unit single family residential development, a 455-unit mixed residential development, and a 213-unit residential development. None of these development proposals were approved by the City.
It was well known that any development at the Cloisters was going to require a balance between continuation of lateral and vertical access within and through the property, while at the same time conserving the sensitive plant and wildlife resources present. In addition, the negative impacts of development on the site would have to be sufficiently offset by public resources and public amenities from the site.
Zoning on most of the Cloisters site is Planned Development, Single-Family Residential with the sand dunes and wetlands zoned Environmentally Sensitive Habitat Area (ESHA). The purpose of the Planned Development (PD) overlay zone is to provide for detailed and substantial analysis of
- 2 -
development on parcels, which because of location, size or public ownership, warrant special review. This overlay zone is also intended to allow for the modification of, or exemption from, the development standards of the primary zone which would otherwise apply if such action would result in better design or other public benefit.
On September 23, 1996, the City Council passed Resolution No. 69-96, which accepted the final map for Tract 1996, known as the Cloisters Subdivision, consisting of 124 lots. Lots 1 through 120 were for single-family residential purposes; Lots 121,122 and 1241(dedicated for a fire station) were offered to the City subject to the completion of the public improvements; and Lot 123 was offered to the State.
The findings and conditions of approval for the project were numerous. For example, the City Council made findings that the Cloisters project could cause significant environmental impacts relating to land use, visual/aesthetics, affordable housing, traffic generation, air quality, noise, geology, drainage and water quality, ecological resources, and public services; but that these impacts could be mitigated by the recommended conditions. In addition, the City Council made further findings that the Cloisters project was in compliance with the specific policies of the General Plan/Local Coastal Plan (GP/LCP) and zoning ordinance with respect to protection of views, environmentally sensitive resources, public access, circulation, hazards and other requirements so long as the environmental impacts were mitigated. Finally, the City Council made further findings that the Cloisters project complied with MBMC with respect to optional subdivision design and related improvements, and that the optional design was justified in order to contribute to a better community environment through the dedication of extensive public areas, restoration of the ESH area, provision of scenic easements, and provision of larger than usual lots adjacent to such areas, and maintenance of a consistent lot layout pattern adjacent to existing development on the north side of Azure Street.
In order to mitigate the environmental impacts of the project and to provide a greater public benefit as required in a PD overlay zone, the conditions of approval for the project required the applicant to form an assessment district for the maintenance of the public park, bicycle pathway, right of way landscaping, coastal access ways, ESHA restoration areas and any other improved common areas to be privately held or dedicated to the City. The public park area, as well as all open space improvements, and the assessment district were part of many detailed discussions during each City and Coastal Commission hearing. Without this Condition of Approval and the creation of the assessment district, the project would not have been approved and there would not be a Cloisters Development.
B. Assessment History and Current Legislation
In November 1996, California voters approved Proposition 218 that established specific requirements for the ongoing imposition of taxes, assessments and fees. The provisions of the
1 Lot 124 of the Cloisters Subdivision (Tract 1996) has been sold and is going through the entitlement process for development of several single-family homes. The City intends to require annexation of new lots within the Tract.
This may result in an adjustment to the overall assessment or the assessment per lot.
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Proposition are now contained in the California Constitutional Articles XIIIC and XIIID. All assessments described in this Report and approved by the City Council are prepared in accordance with the 1972 Act and in compliance with these provisions of the Constitution.
Pursuant to the Article XIIID Section 5 of the Constitution, certain existing assessments were exempt from the substantive and procedural requirements of the Article XIIID Section 4, and property owner balloting is not required until such time that a new or increased assessment is proposed. Specifically, the City determined that the annual assessments originally established for the Cloisters were imposed in accordance with a consent and waiver as part of the original development approval for the properties within these areas. As such, pursuant to Article XIIID Section 5b, all the property owners approved the existing District assessments at the time the assessments were created (originally imposed pursuant to a 100% landowner petition). Therefore, the pre-existing assessments (the maximum assessment rates adopted prior to the passage of Proposition 218) for this district is exempt from the procedural requirements Article XIIID Section
4. However, any new or increased assessment for the Cloisters shall comply with both the substantive and procedural requirements of Article XIIID Section 4 before such assessments are imposed.
The assessment district formation proceedings began in August 1996 and concluded with the final public hearing on September 23, 1996, for formation of the District pursuant to the 1972 Act. This formation led to the annual assessment levy of $148,944 (the “Assessment”) for the maintenance of the thirty-four (34) acres of public resource lands including open space and natural lands, wetland area and pond used for drainage mitigation for homes constructed in Cloisters, median landscaping, trees, a neighborhood park and recreation area, fencing and other public improvements. The maximum assessment rates that existed and were adopted in fiscal year 1996/1997 did not include the assessment range formulae (inflationary adjustment) for their maximum assessment rates and therefore will remain static unless those being assessed vote to increase the assessments. Refer to section III D – “Maintenance Costs” for an analysis of the decision to not include an inflationary adjustment in the formulae.
In preparing the various purchase and sale documents for each individual lot, including the Conditions, Covenants, and Restrictions, the owners and developer called out the existence of the assessment district and to make certain that the existence of assessment district was disclosed to anyone who purchased one of these lots. In drafting all the project documents, the City and the developer reinforced the special benefits for the residents of the Cloisters Project from the public amenities and easements maintained by the assessment.
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II. Description of the District
A. Improvements Authorized by the 1972 Act
As applicable or may be applicable to this proposed District, the 1972 Act defines improvements to mean one or any combination of the following:
The installation or planting of landscaping;
The installation or construction of statuary, fountains, and other ornamental structures and facilities;
The installation or construction of public lighting facilities; The installation or construction of any facilities which are appurtenant to any of the foregoing or which are necessary or convenient for the maintenance or servicing thereof, including, but not limited to, grading, clearing, removal of debris, the installation or construction of curbs, gutters, walls, sidewalks, or paving, or water, irrigation, drainage, or electrical facilities;
The maintenance or servicing, or both, of any of the foregoing; and The acquisition of any existing improvement otherwise authorized pursuant to this section.
Incidental expenses associated with the improvements including, but not limited to:
The cost of preparation of the report, including plans, specifications, estimates, diagram, and assessment;
The costs of printing, advertising, and the publishing, posting and mailing of notices; Compensation payable to the County for collection of assessments; Compensation of any engineer or attorney employed to render services; Any other expenses incidental to the construction, installation, or maintenance and servicing of the improvements;
Any expenses incidental to the issuance of bonds or notes pursuant to Section 22662.52; and
Costs associated with any elections held for the approval of a new or increased assessment.
The 1972 Act defines "Maintain" or "maintenance" to mean furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including:
Repair, removal, or replacement of all or any part of any improvement; Providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury; The removal of trimmings, rubbish, debris, and other solid waste; and The cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti.
B. Maintenance Items
The ongoing maintenance for the District, and the costs thereof, paid from the levy of the annual
2 There is no existing bond debt nor is any anticipated at this time.
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assessments, are generally described below.
Replacement, maintenance and servicing of improvements include, but are not limited to, turf, ground cover, shrubs, trees, other landscaping, irrigation systems, fencing, signage, trails, walkways, recreation facilities, lighting, restroom facilities, parking and all necessary appurtenances, and labor, materials, supplies, utilities and equipment. The public resources maintained by the assessments from the District are further summarized as follows:
Parkland: 4 Acres
Open space meadow and natural land: 18.15 Acres
Wetland: 5.5 Acres
Medians and parkways within the public rights-of-way: 1.6 Acres The levy of assessments contributes to the maintenance of the following items:
1. Landscaping
a. Turf
b. Planted medians
c. Planter beds (formerly demonstration
garden)
d. Drainage systems, including gabion
channels
e. Irrigation system (spray and drip)
f. Scrub/meadow plantings
g. Trees & shrubs along the sound wall
h. Willows
i. Wetland area plantings and pond
2. Hardscaping
a. Asphalt path system
b. Concrete walkways
c. Parking lot
d. Decomposed granite paths
e. Play area surfacing
f. Bridge on City owned property
3. Facilities and miscellaneous
a. Barbeques
b. Bike rack
c. Benches
d. Directional signs
e. Drinking fountains
f. Fences:
i. 6' and 3' solid – Bike Path and
Fire Access Fencing
ii. Habitat Area (ESHA) fencing
and keep out signs
g. Interpretive panels
h. Light bollards
i. Monuments with lights
j. Observation pier at pond
k. Picnic tables
l. Play equipment and sand lot
m. Restroom
n. Sound wall
o. Trash cans
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III. Method of Apportionment
A. General
This section of the Engineer's Report includes an explanation of the special benefits to be derived from the installation, maintenance and servicing of the improvements and the methodology used to apportion the total assessment to properties within the District.
The 1972 Act permits the establishment of assessment districts by agencies for the purpose of providing certain public improvements which include the construction, maintenance and servicing of public lights, landscaping and appurtenant facilities. The 1972 Act further requires that the cost of these improvements be levied according to benefit rather than assessed value:
“The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements.” The proceeds from the District are used to fund the maintenance and upkeep of public resources within the Cloisters development project for the special benefit of the properties located within the project. The continued maintenance and upkeep of these important items is a distinct and special benefit to properties within the District.
Easements were created and reserved in favor of each owner in the Cloisters Development for view, open space, scenic, passive recreation and coastal access across the entirety of Lots 121, 122 and 123; these lots shall not be developed with any improvements or structures unless necessary and proper for the restoration and maintenance of the ESHA. This is another distinct and special benefit conferred on property within the District.
B. Benefit Analysis
Each of the proposed improvements, the associated costs and assessments have been carefully reviewed, identified and allocated based on special benefit pursuant to the provisions of the Constitution and 1972 Act. The improvements associated with the District have been identified as necessary, required and/or desired for the orderly development of the properties within the District to their full potential, consistent with the proposed development plans and applicable portions of the City GP/LCP as identified previously in this report. As such, these improvements would be necessary and required of individual property owners for the development of such properties, and the ongoing operation, servicing and maintenance of these improvements would be the financial obligation of those properties. Therefore, the improvements and the annual costs of ensuring the maintenance and operation of the improvements are of direct and special benefit to the properties.
The method of apportionment (method of assessment) is based on the premise that each assessed parcel within the District receives special benefit from various improvements provided by the
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District. The desirability and security of properties is enhanced by the presence of local improvements in close proximity to those properties. The special benefits associated with landscaped improvements are specifically:
Enhanced desirability of properties through association with the improvements; Improved aesthetic appeal of properties providing a positive representation of the area; and Enhanced adaptation of the urban environment within the natural environment from adequate green space and landscaping.
C. Maintenance Tasks
A list of typical maintenance tasks required to maintain the District in acceptable condition for public use was originally developed based on maintenance standards established for existing parks within the City and is included in this report as Attachment A. Larger maintenance items that are not routine, deferred maintenance, and capital projects are not included in this attachment.
D. Maintenance Costs
The estimated annual cost of maintaining the District was originally developed by the former Recreation and Parks Department based on the tasks required at the time and the City’s Flat Rate Manual for Parks Maintenance. District cost calculations included all labor, utilities, insurance, engineering services and depreciation/reserves. The total costs at that time totaled $148,944. The actual cost of maintenance for the 2025/26 fiscal year is estimated to exceed the assessment amount of $148,944.
The original formation of the assessment district in 1996 set the fixed assessment of $148,944 (or $1,241.20 per assessed parcel) for the entire Cloisters Landscape Lighting Maintenance Assessment District. In 1996, the Consumer Price Index (CPI) was 157 and today (April 2025) the CPI is at 320. This has resulted in a substantial drop in the purchasing power of the assessment district funds, but due to increased efficiency in the service delivery along with some reductions in service originally provided in district, the City has been able to maintain the facilities and accrue an accumulation over time with subsidy from the General Fund. Accumulation of funds ended with the FY 21/22 Engineer’s Report and is not projected to continue due to the shortfall of funding and the maintenance burden to the City versus what is collected in the assessment.
The cost estimate, included in this report as Attachment B, shows the estimated allocation of funds collected for the purposes of maintenance of the district. The true costs of maintaining Cloisters Park, as well as the medians and parkways within the Cloisters Assessment District, exceeds the revenue received from the District. The true cost of maintenance is estimated to be 32% higher than revenues collected. However, all maintenance costs in excess of the District’s available revenues will be subsidized by the General Fund per City Council direction on May 24, 2004.
E.
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F. Apportionment of Assessment
The total assessment for the District is apportioned equally to each of the one hundred and twenty residential lots. Lots 121 and 122 (Parcel 1) are Cloisters Park and dedicated Open Space. Lot 124 was originally dedicated for a future fire station, but it was declared as surplus by the City and sold. Lot 124 is currently vacant, but the new owner is going through the entitlement process to develop several single-family homes which is conditioned to be annexed to the Cloisters LLMAD once developed. Lot 123 offered to the State are not assessed. Individual assessments are listed in the table shown in Attachment C.
A-1
Attachment A
CLOISTERS
LANDSCAPING AND LIGHTING
MAINTENANCE ASSESSMENT DISTRICT
TYPICAL MAINTENANCE TASKS
Task Weekly Twice
Weekly
Monthly Twice
Annually
Annually As
Needed
I Turf Maintenance
Mow XX
Edge/Trim XX
Fertilize XX XX
Aerate/Seed XX XX
II Other Landscape Maint.
Prune plants/shrubbery XX XX
Maintain weed free XX
Maintain bark mulch XX
Rake/distribute gravel/sand XX XX
Fertilize XX
III Tree Maintenance
Prune trees XX
Maintain tree supports XX
Remove dead trees XX
IV Irrigation
Maintain/repair irrigation
system
XX
Program/check controllers XX XX
Hand water as required XX
Monitor water usage XX
V Weed control
Mow open areas XX XX
Remove noxious weeds XX
Weed identified areas XX XX
VI Wetlands
Coordinate maint. with city XX
VII Paths, walkways, parking
lot maintenance
Conduct general safety
inspection
XX XX
Remove foreign objects XX
Trim/spray pathways XX
A-2
CLOISTERS
LANDSCAPING AND LIGHTING
MAINTENANCE ASSESSMENT DISTRICT
TYPICAL MAINTENANCE TASKS (cont.)
Task Weekly Twice
Weekly
Monthly Twice
Annually
Annually As
Needed
VII Paths, walkways, parking
lot maintenance (cont.)
Inspect hardscape for
damage
XX XX
Remove dog litter XX
VIII Pest/Disease Control
Control pests/rodents and
plant diseases
XX
IX Litter/trash control
Litter pick up throughout XX
Remove trash from
garbage cans
XX
Empty ashes from bbq’s XX
X Restroom
Clean/sanitize/service Daily
M-F
Maintain roof XX
Maintain plumbing XX
Paint structure XX
B-3
Attachment B
CLOISTERS
LANDSCAPING AND LIGHTING
MAINTENANCE ASSESSMENT DISTRICT
DISTRICT BUDGET - FISCAL YEAR 2025/26
NAME: Cloisters Landscaping and Lighting Maintenance Assessment District DIAGRAM: Attached, as Attachment D
PLANS AND SPECIFICATIONS: On file in the Office of the City Engineer.
ESTIMATED COST OF MAINTENANCE: The table on the following page outlines the estimated budget for the maintenance of the District for fiscal year 2025/26. It also provides a look back at the previous fiscal year including the current fiscal year with expenses as of March 2025.
CONTRACT SERVICES
Includes non-routine maintenance and repair costs, as needed.
PERSONNEL SERVICES
Includes all daily and routine tasks as well as non-routine maintenance and repair costs.
INTERFUND TRANSFERS
Is the accounting practice that calculates and spreads the proportionate share of agency-wide indirect cost to departments and funds that receive a service from other departments (e.g., Payroll, Administration).
SUPPLIES
Includes all supplies used in daily tasks as well as non-routine repair and maintenance.
SERVICES
Includes utilities, outside engineering, insurance and contract services.
CAPITAL/DEFERRED MAINTENANCE RESERVE (ACCUMULATION)
Accumulated funds to be directed towards future use on capital projects, permits, and other onetime expenses.
CURRENT CAPITAL ALLOCATION OF FUND BALANCE $143,048
ESTIMATED CAPITAL BALANCE END FY 2025/26 $145,281
TOTAL ASSESSMENT: $148,944.00
PER PARCEL YEARLY ASSESSMENT ($148,944/120 parcels) $1,241.20
B-4
Detailed Financial Summary
Fund Name Description ACCOUNT# Account Type
FY24
Actual
FY25
Projected
FY26 Proposed
Cloisters Park
Maint AD Regular Pay XXX-XXXX-4110 Personnel Services $44,550 $45,253 $47,873 Cloisters Park
Maint AD Overtime Pay XXX-XXXX-4120 Personnel Services $23 $740 $700 Cloisters Park
Maint AD Standby Pay XXX-XXXX-4515 Personnel Services $2,367 $2,367 $2,367 Cloisters Park
Maint AD Other Pay XXX-XXXX-4599 Personnel Services $1,179 $1,755 $1,650 Cloisters Park
Maint AD Employer Paid Benefits XXX-XXXX-4910 Personnel Services $13,850 $18,982 $22,304 Cloisters Park
Maint AD Pension Normal Cost XXX-XXXX-4911 Personnel Services $6,605 $6,841 $7,224 Cloisters Park
Maint AD
PERS Unfunded Accrued
Liability XXX-XXXX-4912 Personnel Services $8,933 $4168 $10,213 Cloisters Park
Maint AD Workers Compensation XXX-XXXX-4914 Personnel Services $0 $1,309 $1,490 Cloisters Park
Maint AD Uniforms/Safety Equipment XXX-XXXX-5109 Supplies $0 $0 $0 Cloisters Park
Maint AD Grounds Maintenance Supplies XXX-XXXX-5501 Supplies $4,414 $1,980 $15,000 Cloisters Park
Maint AD Building Maint. Supplies XXX-XXXX-5502 Supplies $0 $0 $0 Cloisters Park
Maint AD Small Tools XXX-XXXX-5530 Supplies $550 $0 $0
Cloisters Park
Maint AD Contractual Services XXX-XXXX-6106 Services $1,718 $0 $0 Cloisters Park
Maint AD Other Professional Services XXX-XXXX-6199 Services $0 $0 $0 Cloisters Park
Maint AD Electricity XXX-XXXX-6301 Services $2,139 $913 $1,250 Cloisters Park
Maint AD Water XXX-XXXX-6303 Services $30,267 $29,039 $30,000 Cloisters Park
Maint AD Disposal XXX-XXXX-6305 Services $5,286 $4,397 $5,210 Cloisters Park
Maint AD Transfers Out XXX-XXXX-8501 Interfund Transfers $5,932 $5,762 $0 Cloisters Park
Maint AD Transfer to General Fund XXX-XXXX-8510 Interfund Transfers $22,152 $19,542 $0 Total: $149,965 $143,048 $145,281
C-1
Attachment C
CLOISTERS
LANDSCAPING AND LIGHTING
MAINTENANCE ASSESSMENT DISTRICT
PARCEL/ASSESSMENT TABLE
Lot Number
County Assessor’s
Parcel Number Annual Assessment
1 065-387-001 $1,241.20
2 065-387-002 $1,241.20
3 065-387-003 $1,241.20
4 065-387-004 $1,241.20
5 065-387-005 $1,241.20
6 065-387-006 $1,241.20
7 065-387-007 $1,241.20
8 065-387-008 $1,241.20
9 065-387-009 $1,241.20
10 065-387-010 $1,241.20
11 065-387-011 $1,241.20
12 065-387-012 $1,241.20
13 065-387-013 $1,241.20
14 065-387-014 $1,241.20
15 065-387-015 $1,241.20
16 065-387-016 $1,241.20
17 065-387-017 $1,241.20
18 065-387-018 $1,241.20
19 065-387-019 $1,241.20
C-2
Lot Number
County Assessor’s
Parcel Number Annual Assessment
20 065-387-053 $1,241.20
21 065-387-054 $1,241.20
22 065-387-055 $1,241.20
23 065-387-023 $1,241.20
24 065-387-024 $1,241.20
25 065-387-025 $1,241.20
26 065-387-026 $1,241.20
27 065-387-027 $1,241.20
28 065-387-028 $1,241.20
29 065-387-029 $1,241.20
30 065-387-030 $1,241.20
31 065-387-031 $1,241.20
32 065-387-032 $1,241.20
33 065-387-033 $1,241.20
34 065-387-034 $1,241.20
35 065-387-035 $1,241.20
36 065-387-036 $1,241.20
37 065-387-037 $1,241.20
38 065-387-038 $1,241.20
39 065-387-039 $1,241.20
40 065-387-040 $1,241.20
41 065-387-041 $1,241.20
42 065-387-042 $1,241.20
43 065-387-043 $1,241.20
C-3
Lot Number
County Assessor’s
Parcel Number Annual Assessment
44 065-387-044 $1,241.20
45 065-387-045 $1,241.20
46 065-388-001 $1,241.20
47 065-388-002 $1,241.20
48 065-388-003 $1,241.20
49 065-388-004 $1,241.20
50 065-388-005 $1,241.20
51 065-388-006 $1,241.20
52 065-388-007 $1,241.20
53 065-388-008 $1,241.20
54 065-388-009 $1,241.20
55 065-388-010 $1,241.20
56 065-388-011 $1,241.20
57 065-388-012 $1,241.20
58 065-388-013 $1,241.20
59 065-388-014 $1,241.20
60 065-388-015 $1,241.20
61 065-388-016 $1,241.20
62 065-388-017 $1,241.20
63 065-388-018 $1,241.20
64 065-388-019 $1,241.20
65 065-388-020 $1,241.20
66 065-388-021 $1,241.20
67 065-388-022 $1,241.20
C-4
Lot Number
County Assessor’s
Parcel Number Annual Assessment
68 065-388-023 $1,241.20
69 065-388-024 $1,241.20
70 065-388-025 $1,241.20
71 065-388-026 $1,241.20
72 065-388-027 $1,241.20
73 065-388-028 $1,241.20
74 065-388-029 $1,241.20
75 065-388-030 $1,241.20
76 065-388-031 $1,241.20
77 065-388-032 $1,241.20
78 065-388-033 $1,241.20
79 065-388-034 $1,241.20
80 065-388-035 $1,241.20
81 065-388-036 $1,241.20
82 065-388-037 $1,241.20
83 065-388-038 $1,241.20
84 065-388-039 $1,241.20
85 065-388-040 $1,241.20
86 065-388-041 $1,241.20
87 065-388-042 $1,241.20
88 065-388-043 $1,241.20
89 065-388-044 $1,241.20
90 065-388-045 $1,241.20
91 065-388-046 $1,241.20
C-5
Lot Number
County Assessor’s
Parcel Number Annual Assessment
92 065-388-047 $1,241.20
93 065-388-048 $1,241.20
94 065-388-049 $1,241.20
95 065-388-050 $1,241.20
96 065-388-051 $1,241.20
97 065-388-052 $1,241.20
98 065-388-053 $1,241.20
99 065-388-054 $1,241.20
100 065-388-055 $1,241.20
101 065-388-056 $1,241.20
102 065-388-057 $1,241.20
103 065-388-058 $1,241.20
104 065-388-059 $1,241.20
105 065-388-060 $1,241.20
106 065-388-061 $1,241.20
107 065-388-062 $1,241.20
108 065-388-063 $1,241.20
109 065-388-064 $1,241.20
110 065-388-065 $1,241.20
111 065-388-066 $1,241.20
112 065-388-067 $1,241.20
113 065-388-068 $1,241.20
114 065-388-069 $1,241.20
115 065-388-070 $1,241.20
C-6
Lot Number
County Assessor’s
Parcel Number Annual Assessment
116 065-388-071 $1,241.20
117 065-388-072 $1,241.20
118 065-388-073 $1,241.20
119 065-388-074 $1,241.20
120 065-388-075 $1,241.20
121 065-386-005 0
122 (Parcel 1) 065-386-016 0
123 (Parcel 2) 065-386-017
065-386-018
065-386-019
065-386-012
065-386-013
065-386-014
065-386-010
0 124 065-386-015 0
D-1
Attachment D
CLOISTERS
LANDSCAPING AND LIGHTING
MAINTENANCE ASSESSMENT DISTRICT
DISTRICT BOUNDARY DIAGRAM
The boundary diagram for the District have previously been submitted to the City Clerk in the format required under the 1972 Act and, by reference, are hereby made part of this Report. The boundary diagram and Tract Map are available for inspection at the office of the City Clerk or the City Engineer during normal business hours. The following diagram provides an overview of the District and the lots that are part of the District.
AGENDA NO: 7.j
MEETING DATE: May 13, 2025
Prepared By: CC Dept. Review: GK
City Manager Review: ___YK ____ City Attorney Review: _RWS_ _ Staff Report
TO: Honorable Mayor and City Council DATE: May 6, 2025
FROM: Cindy Cecil, PE – City Engineer
SUBJECT: Adoption of Resolution No. 27-25 Approving the Engineer’s Report and Declaring the Intent to Levy the Annual Assessment for the North Point Natural Area Landscaping and Lighting Maintenance Assessment District
RECOMMENDED ACTION
Adopt Resolution No. 27-25 approving the Engineer’s Report and declaring the intent to levy the annual assessment for maintenance of the North Point Natural Area for Fiscal Year (FY) 2025/2026.
FISCAL IMPACT
Based on the Engineer’s Report, which estimates the annual costs of maintaining the North Point Natural Area for the upcoming fiscal year, the fiscal impact is estimated at $5,645. Those costs will be offset by the collection of an assessment for the same amount from the parcel owners in the North Point Subdivision.
The original formation of the assessment district in 1996 set the fixed assessment of $564.50 per parcel or $5,645 for the entire North Point Landscape Lighting Maintenance Assessment District.
In 1997, the Consumer Price Index (CPI) was 160 and in April of this year, the CPI was 301 which has resulted in a drop in the purchasing power of the assessment district funds. Even after increased efficiency and a reduction in the service originally provided in the district, the City has had to supplement the shortfall from the General Fund.
SUMMARY
On April 8, 2025, the City Council adopted Resolution No. 27-25, which initiated the proceedings to levy the annual assessment to fund the maintenance of the North Point Natural Area.
Additionally, staff was directed to have an Engineer’s Report prepared, detailing the estimated annual assessment for the parcel owners for FY 2025/26. Upon adoption of Resolution No. 27- 25, the next and final step in the annual levy of assessment process is the public hearing after which the City Council orders the levy of assessment.
BACKGROUND/DISCUSSION
As part of the annual assessment process, staff is required to provide an Engineer’s Report, which is an estimate of costs for maintenance of the North Point Natural Area. The cost estimates are based on the maintenance standards currently adhered to in existing parks within Morro Bay and included in the Flat Rate Manual for Parks Maintenance, as well as maintenance costs from the current fiscal year. Personnel costs, as well as supplies and services, have risen significantly in the last several years.
The true costs of maintaining the assessment district exceed the revenue received from the district. The true cost of maintenance is estimated to be 452% higher than assessment revenues collected. However, all maintenance costs in excess of the district’s available revenues will be subsidized by the General Fund per City Council direction on May 24, 2004. The assessment for providing maintenance of the North Point Natural Area is $564.50 per parcel for FY 2025/26 for a total annual assessment of $5,645. Due to the increase in the cost of goods and services over time there is no excess funding to accumulate to save funding for any capital maintenance projects at the North Point Natural Area. As such, the City must utilize the General Funds, Measure Q & E Funds, or pursue grant funding should any capital needs arise.
CONCLUSION
The process for the annual levy of assessment for the North Point Natural Area Landscaping and Lighting Maintenance Assessment District requires the City Council to receive the Engineer’s Report, approve and/or modify the report and adopt a Resolution of Intention. The Resolution of Intention gives notice of the time, date and place for a public hearing by the City Council on the issue of the levy of assessment.
The public hearing has been set for the regular City Council meeting on June 24, 2025, at or about 5:30 p.m. to be held at the Morro Bay Veterans Hall. A summary of the Resolution of Intention shall be published in the newspaper as legal notice of a public hearing, to which all interested parties are afforded the opportunity to be heard either through written or oral communication. Upon completion of the public hearing, the City Council may adopt a resolution ordering the levy of the annual assessment.
ATTACHMENTS
1. Resolution No. 27-25
2. North Point Natural Area Landscaping and Lighting Maintenance Assessment District 2025/26 Engineer’s Annual Levy Report
01181.0001/252025.1
RESOLUTION NO. 27-25
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA,
APPROVING THE ENGINEER’S REPORT AND DECLARING
THE CITY'S INTENTION TO LEVY THE ANNUAL ASSESSMENT FOR THE
MAINTENANCE OF THE NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT PURSUANT TO THE “LANDSCAPING AND LIGHTING ACT OF 1972” (STREETS AND HIGHWAYS SECTIONS 22500 ET SEQ.) FOR THE 2025/26 FISCAL YEAR
T H E C I T Y C O U N C I L
City of Morro Bay, California
WHEREAS, all property owners of the original North Point subdivision requested the City of Morro Bay form a maintenance assessment district to fund the maintenance of the North Point Natural Area; and
WHEREAS, the Landscaping and Lighting Act of 1972, commencing with Streets and Highways Code section 22500 (the "Act") enables the City to form assessment districts for the purpose of maintaining public improvements; and
WHEREAS, pursuant to Section 22623 of the Act, the City Engineer has filed in the Office of the City Clerk, and submitted for review to the City Council, a report entitled "Engineers Report North Point Natural Area Landscaping and Lighting Maintenance Assessment," dated May 13, 2025, prepared in accordance with Article 4 of the Act, commencing with Section 22565 (the “Engineer’s Report”); and
WHEREAS, pursuant to Section 22608.2 of the Act, the subdivider was required by City ordinance to install improvements for which an assessment district was required to assure continued and uninterrupted maintenance of the North Point Natural Area; and WHEREAS, pursuant to the intent of Article XIII, Section 4, of the California Constitution, the property owners have elected to form the North Point Natural Area Landscaping and Lighting Maintenance Assessment District.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Morro Bay, Section 1. The City Council approves the Engineer’s Report.
Section 2. It is the intent of the Council to order the annual levy and collection of assessments for the North Point Natural Area Landscaping and Lighting Maintenance Assessment District generally located as shown in Exhibit "A" attached hereto at a public hearing to be held at the Regular City Council meeting on June 24, 2025 at or about 5:30 p.m., at the Morro Bay Veterans Hall.
Section 3. The improvements to be maintained at the North Point Natural Area are specified in the Engineer's Report dated May 13, 2025 which is hereby approved.
Section 4. The assessment upon assessable lots within the district is proposed to total $5,645 or $564.50 per assessable parcel for fiscal year 2025/26.
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held this 13
th of May 2025 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSE:
_______________________________
CARLA WIXOM, Mayor
ATTEST:
________________________________
DANA SWANSON, City Clerk
Exhibit A
DISTRICT BOUNDARY DIAGRAM
The boundary diagram, tract map for the District have previously been submitted to the City Clerk in the format required under the Act and, by reference are hereby made part of this Report. The boundary diagram is available for inspection at the office of the City Clerk or the City Engineer during normal business hours. The following diagram provides an overview of the District.
CITY OF MORRO BAY
NORTH POINT NATURAL AREA
LANDSCAPING AND LIGHTING
MAINTENANCE ASSESSMENT DISTRICT
2025/26 ENGINEER’S ANNUAL LEVY REPORT
May 13, 2025
ii
AFFIDAVIT FOR 2025/26 ENGINEER’S ANNUAL LEVY REPORT
CITY OF MORRO BAY
NORTH POINT NATURAL AREA
LANDSCAPING AND LIGHTING
MAINTENANCE ASSESSMENT DISTRICT
This report describes the proposed maintenance, improvements, budgets, zone of benefit and assessments to be levied on parcels of land within the North Point Natural Area Landscaping and Lighting Maintenance Assessment District for the fiscal year 2025/26, as the same existed at the time of the passage of the Resolution of Intention. Reference is hereby made to the San Luis Obispo County Assessor’s maps for a detailed description of the lines and dimensions of parcels within the District. The undersigned respectfully submits the enclosed Report as directed by the City Council and, to the best of my knowledge, information, belief, the report, the assessments and diagrams have been prepared and computed in pursuant to the Landscaping and Lighting Act of 1972.
Exp. 03/31/2027
Dated this 13
th day of May, 2025
_________________________________________________
Cynthia Cecil, PE – City Engineer
iii
CITY OF MORRO BAY
NORTH POINT NATURAL AREA
LANDSCAPING AND LIGHTING
MAINTENANCE ASSESSMENT DISTRICT
ENGINEER’S REPORT
Table of Contents
Page
I. Overview…………………………………………………………………………………...1
A. Introduction…………………………………………………………………………….1
B. Assessment History and Current Legislation…………………………………………..1 II. Description of the District………………………………………………………………….2 A Improvements Authorized by the 1972 Act…………………………………………...2 B Maintenance Items…………………………………………………………………….2
III. Method of Apportionment………………………………………………………………….3 A. General…………………………………………………………………………………3
B. Benefit Analysis………………………………………………………………………..3
C. Maintenance Tasks……………………………………………………………………..4
D. Maintenance Costs……………………………………………………………………..4
E. Apportionment of Assessment…………………………………………………………4
Detailed Maintenance Task List……………………………………………..Attachment A District Budget – Fiscal Year 2025/26………………………………………Attachment B Parcel/Assessment Table…………………………………………………….Attachment C District Boundary Diagram………………………………………………….Attachment D
1 I. Overview
A Introduction
The City Council of the City of Morro Bay (hereafter referred to as “City”), County of San Luis Obispo, State of California, previously formed and has levied and collected annual assessments for the District designated as:
NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING
MAINTENANCE ASSESSMENT DISTRICT
(hereafter referred to as “District”) pursuant to the provisions of the Landscaping and Lighting Act of 1972, being Part 2 of Division 15 of the California Streets and Highways Code, commencing with Section 22500 (hereafter referred to as the “1972 Act”), and in compliance with the provisions of the California State Constitution Articles XIIIC and XIIID (hereafter referred to as the “Constitution” or “Proposition 218”).
This Report has been prepared in accordance with Chapter 1, Article 4 (commencing with Section 22565) of the 1972 Act and describes the District and changes to the District including: territories annexed; modifications to the improvements or organization; and the proposed budgets and assessments applicable for fiscal year 2025/26.
History
As a condition of approval for Tract No. 2110, the North Point subdivision, the developers were required to offer to the City for dedication Lot 11 of the subdivision for park purposes, and to construct improvements on Lot 11 including a paved parking area, a stairway providing access to the beach, benches, landscaping and irrigation, lighting, and other improvements. The subdivision was also conditioned to provide maintenance of the park by establishing an assessment district.
Lot 11 of Tract No. 2110 is identified as the North Point Natural Area.
B Assessment History and Current Legislation
In November 1996, California voters approved Proposition 218 that established specific requirements for the ongoing imposition of taxes, assessments and fees. The provisions of the Proposition are now contained in the California Constitutional Articles XIIIC and XIIID. All assessments described in this Report and approved by the City Council are prepared in accordance with the 1972 Act and in compliance with these provisions of the Constitution.
Pursuant to the Article XIIID Section 5 of the Constitution, certain existing assessments were exempt from the substantive and procedural requirements of the Article XIIID Section 4, and property owner balloting is not required until such time that a new or increased assessment is proposed. Specifically, the City determined that the annual assessments originally established for the North Point were imposed in accordance with a consent and waiver as part of the original development approval for the properties within these areas. As such, pursuant to Article XIIID Section 5b, all the property owners approved the existing District assessments at the time the assessments were created (originally imposed pursuant to a 100% landowner petition). Therefore, the pre-existing assessments (the maximum assessment rates adopted prior to the passage of Proposition 218) for this District is exempt from the procedural requirements Article XIIID Section
4. However, any new or increased assessment for the North Point Natural Area shall comply with
2 both the substantive and procedural requirements of Article XIIID Section 4 before such assessments are imposed.
II. Description of the District
A. Improvements Authorized by the 1972 Act
As applicable or may be applicable to this proposed District, the 1972 Act defines improvements to mean one or any combination of the following:
The installation or planting of landscaping;
The installation or construction of statuary, fountains, and other ornamental structures and facilities;
The installation or construction of public lighting facilities; The installation or construction of any facilities which are appurtenant to any of the foregoing or which are necessary or convenient for the maintenance or servicing thereof, including, but not limited to, grading, clearing, removal of debris, the installation or construction of curbs, gutters, walls, sidewalks, or paving, or water, irrigation, drainage, or electrical facilities;
The maintenance or servicing, or both, of any of the foregoing; and The acquisition of any existing improvement otherwise authorized pursuant to this section.
Incidental expenses associated with the improvements including, but not limited to:
The cost of preparation of the report, including plans, specifications, estimates, diagram, and assessment;
The costs of printing, advertising, and the publishing, posting and mailing of notices; Compensation payable to the County for collection of assessments; Compensation of any engineer or attorney employed to render services; Any other expenses incidental to the construction, installation, or maintenance and servicing of the improvements;
Any expenses incidental to the issuance of bonds or notes pursuant to Section 22662.51; and
Costs associated with any elections held for the approval of a new or increased assessment.
The 1972 Act defines "Maintain" or "maintenance" to mean furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including:
Repair, removal, or replacement of all or any part of any improvement; Providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury; The removal of trimmings, rubbish, debris, and other solid waste; and The cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti.
B. Maintenance Items
A list of maintenance tasks required to maintain the North Point Natural Area in acceptable condition for public use was developed by the City based upon established maintenance standards,
1 There is no existing bond debt nor is any anticipated at this time.
3 at the time the assessment was initiated, for existing parks within the City and is described in Section III-C.
III. Method of Apportionment
A General
This section of the Engineer's Report includes an explanation of the special benefits to be derived from the installation, maintenance and servicing of the improvements and the methodology used to apportion the total assessment to properties within the District.
The 1972 Act permits the establishment of assessment districts by agencies for the purpose of providing certain public improvements which include the construction, maintenance and servicing of public lights, landscaping and appurtenant facilities. The 1972 Act further requires that the cost of these improvements be levied according to benefit rather than assessed value:
“The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements.”
The proceeds from the District are used to fund the maintenance and upkeep of public resources within the North Point development project for the special benefit of the properties located within the project. The continued maintenance and upkeep of these important items is a distinct and special benefit to properties within the District.
B. Benefit Analysis
Each of the proposed improvements, the associated costs and assessments were carefully reviewed, identified and allocated based on special benefit pursuant to the provisions of the Constitution and 1972 Act. The improvements associated with the District have been identified as necessary, required and/or desired for the orderly development of the properties within the District to their full potential, consistent with the proposed development plans and applicable portions of the City General Plan and Local Coastal Plan as identified previously in this report. As such, these improvements would be necessary and required of individual property owners for the development of such properties, and the ongoing operation, servicing and maintenance of these improvements would be the financial obligation of those properties. Therefore, the improvements and the annual costs of ensuring the maintenance and operation of the improvements are of direct and special benefit to the properties. The method of apportionment (method of assessment) is based on the premise that each assessed parcel within the District receives special benefit from various improvements provided by the District. The desirability and security of properties is enhanced by the presence of local improvements in close proximity to those properties. The special benefits associated with landscape improvements are specifically:
Enhanced desirability of properties through association with the improvements; Improved aesthetic appeal of properties providing a positive representation of the area; and Enhanced adaptation of the urban environment within the natural environment from adequate green space and landscaping.
4 C. Maintenance Tasks
A list of maintenance tasks required to maintain the North Point Natural Area in acceptable condition for public use was developed by the Public Works Department based on maintenance standards established for existing parks within the City and is included in this report as Attachment A.
D. Maintenance Costs
The estimated annual cost of maintaining the North Point Natural Area was originally developed by the former Recreation and Parks Department based on the tasks required and the City’s Flat Rate Manual for Parks Maintenance. Annual maintenance is currently provided through contract services and is supplemented by staff in the Public Works Department. Assessment district costs include labor, utilities, insurance, engineering services and depreciation/reserves. The annual cost of maintenance, including any reserves, for the 2025/26 fiscal year is estimated to exceed the assessment amount of $5,645.
The original formation of the assessment district in 1996 set the fixed assessment of $564.50 per parcel or $5,645 for the entire North Point Landscape Lighting Maintenance Assessment District.
In 1997, the Consumer Price Index (CPI) was 160 and today (April 2025) the CPI is at 320. This has resulted in a substantial drop in the purchasing power of the District funds, but due to increased efficiency along with a decreased level in the service originally provided in District, the City has been able to maintain the facilities at a minimal level.
The cost estimate, included in this report as Attachment B, shows the estimated allocation of funds collected for the purposes of maintenance of the District. The true costs of maintaining the assessment District, exceed the revenue received from the District assessment. The true cost of maintenance is estimated to be 452% higher than the revenues collected. However, all maintenance costs in excess of the District’s available revenues will be subsidized by the General Fund per City Council direction on May 24, 2004.
E. Apportionment of Assessment
The total assessment for the District is apportioned to each of the ten residential lots equally. Lot 11, the North Point Natural Area; Lot 12, a private street; and Lot 13, an open space parcel granted to the State of California; are not assessed. Individual assessments are listed in Attachment C.
5 Attachment A
NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING
MAINTENANCE ASSESSMENT DISTRICT
MAINTENANCE TASKS
Routine Maintenance Tasks
Review for vandalism/repair
Pick-up – paper, trash, cigarette butts, etc
Empty - trash receptacle(s)
Clean - benches
Inspect and maintain as necessary:
o beach access stairway
o bike rack
o lights
o natural area plantings
Weekly or as needed
Blow paths, parking lot
Monthly or as needed
Check trees
Check/repair sprinkler system
Trim trees and bushes as needed
Critical parts inspections
Annually or as needed
Paint beach access stairway, public access signage
New plantings (replacement)
General safety inspection
Annual tree pruning
Remove graffiti
Mow open space
Pest/gopher control
Trim and spray paths
Repair public access signage
Operational Expenses
Street Lighting
Irrigation
Refuse Service
6 Attachment B
NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING
MAINTENANCE ASSESSMENT DISTRICT
NAME: North Point Natural Area Landscaping and Lighting Maintenance Assessment District DIAGRAM: Attached
PLANS AND SPECIFICATIONS: For a detailed description of the improvements, refer to the plans and specifications for Tract 2110 on file in the office of the City Engineer. No bonds or notes will be issued for this Maintenance Assessment District.
ESTIMATED COST OF MAINTENANCE: The following outlines the estimated budget for the maintenance of the North Point Natural Area for fiscal year 2025/26. As noted in last year’s report, there is no longer an accumulation fund for this district. All funds necessary for maintenance in excess of the assessment are born by the City’s General Fund.
TOTAL ASSESSMENT: $5,645.00
PER PARCEL YEARLY ASSESSMENT (10 parcels) $564.50
Detailed Financial Summary
ACCOUNT ID Description Fund Name Account Type
FY24
Actual
FY25
Projected
FY26
Proposed
XXX-XXXX-4110 Regular Pay NP Assessment Personnel Svcs $0 $0 $0 XXX-XXXX-4120 Overtime Pay NP Assessment Personnel Svcs $0 $0 $0 XXX-XXXX-4310 Part-Time Pay NP Assessment Personnel Svcs $0 $0 $0 XXX-XXXX-4515 Standby Pay NP Assessment Personnel Svcs $0 $0 $0 XXX-XXXX-4599 Other Pay NP Assessment Personnel Svcs $0 $0 $0 XXX-XXXX-4910 Employer Paid Benefits NP Assessment Personnel Svcs $0 $0 $0 XXX-XXXX-4911 Pension Normal Cost NP Assessment Personnel Svcs $0 $0 $0 XXX-XXXX-4912
PERS Unfunded Accrued
Liability NP Assessment Personnel Svcs $0 $0 $0
XXX-XXXX-4999 Labor Costs Applied NP Assessment Personnel Svcs $0 $0 $0 XXX-XXXX-5501 Grounds Maint. Supplies NP Assessment Supplies $0 $0 $0 XXX-XXXX-5502 Building Maint. Supplies NP Assessment Supplies $0 $0 $0 XXX-XXXX-6106 Contractual Services NP Assessment Services $0 $0 $0 XXX-XXXX-6301 Electricity NP Assessment Services $0 $0 $0 XXX-XXXX-6303 Water NP Assessment Services $544 $538 $538 XXX-XXXX-6305 Disposal NP Assessment Services $4,269 $4,693 $4,210 XXX-XXXX-8501 Transfers Out NP Assessment
Interfund
Transfer $998 $956 $846
Total Total: $5,811 $6,187 $5,594
7 Attachment C
PARCEL/ASSESSMENT TABLE
Lot Number
County Assessor’s
Parcel Number Annual Assessment
1 065-082-10 $564.50
2 065-082-11 $564.50
3 065-082-12 $564.50
4 065-082-13 $564.50
5 065-082-14 $564.50
6 065-082-15 $564.50
7 065-082-16 $564.50
8 065-082-17 $564.50
9 065-082-18 $564.50
10 065-082-19 $564.50
11 065-082-20 $ 0.00
12 065-082-21 $ 0.00
13 065-082-22 $ 0.00
8 Attachment D
DISTRICT BOUNDARY DIAGRAM
The boundary diagram, tract map for the District have previously been submitted to the City Clerk in the format required under the Act and, by reference are hereby made part of this Report.
The boundary diagram is available for inspection at the office of the City Clerk or the City Engineer during normal business hours. The following diagram provides an overview of the District.
Prepared By: __YK______ City Attorney Review: __
City Manager Review: YK
Staff Report
TO: Honorable Mayor and City Council DATE: May 8, 2025
FROM: Yvonne Kimball, City Manager
SUBJECT: Review and provide direction regarding the Economic Development Contract proposal by the Morro Bay Chamber of Commerce for Fiscal Year (FY) 25-26 and FY 26-27
RECOMMENDED ACTION
Support continued partnership with the Chamber of Commerce through a partnership contract for enhanced services, including aspects of economic development, at $45,000 for Fiscal Year 2025-26, plus $2,500 matching pledge, and up to $10,000 reimbursement for authorized qualifying expenses.
ALTERNATIVES
1. Through a contract at larger amounts with appropriate scope of work
2. Through a contract for specific tasks on a reimbursement basis
3. Do not support a partnership through a contract
4. Office space warrants a separate discussion.
FISCAL IMPACT
The proposed service contract costs $45,000 for FY 25-26 plus $2,500 matching pledge and up to $10,000 optional reimbursement for additional qualifying expenses. This contract amount is paid out of Economic Development Fund (907) which is largely comprised of the SB 1090 Diablo Plant Closure Impact.
BACKGROUND
The Economic Development Service Contract between the Chamber of Commerce and the City sets to expire on June 30, 2025. The Chamber of Commerce expressed interest in continuing the partnership with the city through an agreement earlier this year. The Chamber originally considered a higher amount proposal. Upon meetings with council members and city staff, the Chamber submitted a revised proposal this week for a total fee of $50,000 plus additional charges for services.
DISCUSSION
This consideration of a proposal by the Chamber of Commerce prompts an examination of the various ways in which the City might support its partnership with the Chamber. The City has many options. Briefly, they are:
1. Partnership through contracts for services either on an on-going basis or by project on a reimbursement basis. The City has a long-standing partnership with Morro Bay Chamber of Commerce (“Chamber”) for ongoing services of visitor center and economic development efforts. Ongoing fee-based agreements dated back to 2012. Service fees ranged from $10,000 a year to $90,000 a year. Last year, the contract was scaled back to $44,000 and AGENDA NO: 9.a
MEETING DATE: May 13, 2025
2 is expiring on June 30, 2025. The City also provides the Chamber with office space through a low-cost lease set to expire June 30, 2025. Consideration of the building lease warrants a separate discussion.
2. No contract; lease.
3. Contract; no lease.
Here is historical information of Chamber/ City partnerships.
The City has a long history of financially supporting the Chamber through contractual partnerships.
Over the years, the Chamber has evolved and undertaken different tasks on behalf of the City, including managing visitor center services, and performing economic development tasks that are focusing on business relations. The Chamber was also a supportive partner during the pandemic.
Additionally, throughout the years and the changes in our city, the Chamber has remained as a constant representation with its full-time status and its physical location in the City. Moving forward, the Chamber and the City may decide to continue a contractual partnership. Should this be the case, it is essential for both parties, particularly the City Council, to decide on the appropriate level of services, which can be effectively qualified through a contract amount.
To assist Council’s deliberation, staff has compiled a list of possible tasks where the City can reasonably collaborate with the Chamber. Both the Chamber’s revised proposal and City staff scope of services are attached. The proposed dollar amounts are comparable at $50,000 and $45,000 respectively.
It should be noted that the Council has options for general economic development services, including issuing an RFP or creating an in-house office. These options have advantages and disadvantages.
It is important to note that neither in-house staff or another consultant can fully replace the unique role of a Chamber of Commerce. Ideally the City would have both designated in-house staff and a contract with the Chamber for specific support. Enclosed is a chart comparing these options.
Advantages Challenges
Contract with the
Chamber of
Commerce
Familiarity with the community;
existing database; past work progress;
known cost to both city and chamber;
access to a larger pool of connections;
wider resource and knowledge base;
contractual flexibility; a strong signal of
partnership
Alignment between chamber
board and city council
priorities; communication with
the city; clarity of chamber or
city responsibilities; city
government expertise
FY 25/26 FY 24/25 FY23/24 FY 22/23 FY 21/22 FY 20/21 FY 19/20 Econ Dev Svcs *$45,000 $44,000 $90,000 $90,000 $90,000 $78,000 $66,000 Visitor Center Svcs $0 $0 $0 $0 $0 $0 $50,000
Annual rent rec'd for 695 Harbor TBD $2,400 $2,400 $2,400 $1 $1 $1 Econ Dev Svcs FY 18/19 FY 17/18 FY 16/17 FY 15/16 FY 14/15 FY 13/14 FY 12/13 Visitor Center Svcs $30,000 $0 $0 $0 $10,000 $50,000 $58,250 Annual rent rec'd for 695 Harbor $50,000 $50,000 $50,000 $50,000 $0 $0 $0 $1 $1 $1 $1 $1 $1 $1
* = Proposed
3 In-house Economic
Development staff
focused expertise; accessibility to city
data; alignment with city council and
management priorities; possible higher
motivation and commitment to city;
increasing city staff capacity
high cost due to public agency
labor requirements; time to get
up to speed and build
connections; finding the right
person within the budget;
ongoing training cost; skill sets
and workload distribution;
personnel management
burden
a firm Defined expertise; efficient short-term
solutions
Not a cost-effective option for
on-going needs
CONCLUSION
The Chamber has presented its proposal for the Council’s consideration. Staff understand the political aspects surrounding this issue. Staff’s role is to facilitate a constructive discussion that leads to a consensus that benefits our community. It is the Council’s decision on which direction the City should take.
Should City decide to discontinue the current model, where City provides Chamber with financial support in exchange for services, it is important to make this decision as soon as possible to allow both parties to refocus their efforts. If the City Council decides to continue the service contract model with the Chamber, clear direction on the appropriate level of service is needed. Establishing a dollar amount for parameter of a service contract would be recommended.
ATTACHMENT(S)
1. Chamber Proposed Scope of Work for FY 2025-26
2. City staff Proposed Scope of Work
3. Current Economic Development service contract ending June 30, 2025.
MORRO BAY CHAMBER OF COMMERCE
Contract Services Proposal
PRESENTED BY: Morro Bay Chamber of Commerce
PRESENTED TO: City of Morro Bay
DATE: May 7, 2025
PROPOSED CONTRACT VALUE: $50,000 annually
TERM: 24 months
What the Morro Bay Chamber of Commerce Brings to Our
Community
Partnership
The Chamber provides essential marketing support for local non-profit organizations and community initiatives through:
• Ongoing website promotion of events for organizations both members and non members,Morro Bay High School Career and Development Center, The Art Center, and Friends of Morro Bay Elementary. • Connection to valuable regional resources including Visit SLOCal, Cal Poly SBDC Center, MCSC, SCORE, SPOKES, and SLO Careers.
• Visitor referrals to all businesses to ensure the best experience Morro Bay has to offer.
Advocacy
We serve as a voice for local businesses at both the city and county government levels by:
• Hosting policy discussion forums on business-relevant topics • Publishing a legislative platform focused on business interests • Assisting businesses with policy or process challenges • Facilitating dialogue between businesses and city departments including Public Works, Community Development, Finance, and the City Manager's office
Community Engagement
The Chamber actively builds community connections through:
• Hosting 22 events annually, with 16 providing no revenue back to the Chamber • Organizing networking opportunities such as Breakfast on The Bay, Mixers, and Ribbon Cuttings • Creating affordable fundraising events for both community members and tourists including Shop Sip & Stroll, Annual Summit, and our Gala celebration
SCOPE OF SERVICES
Enhanced General Services: $5,000.00
• A chamber office open to the public minimum of 20 hours a week • Employ adequate staff to support office responsibilities and operational hours • Respond to inquiries, emails, phone calls, or in-person requests from the community, Chamber members, or visitors
• Facilitate a semi-annual chamber and city meeting to exchange ideas and provide updates on organizational goals
Objective: Serve the community, business, and support tourism.
Enhanced Membership Services: $5,000.00
• Impact level membership providing the highest level of services to a chamber member • Logo placement at Chamber events
• Free or discounted ticket pricing for Chamber events
• Speaking opportunity at appropriate Chamber events
• Designated section in Chamber publications to support city initiatives including weekly Newsletter, monthly Estero Bay News, "On Your Behalf" segment and any identified specific communication that may impact business.
• Graphic Design services for up to 10 design projects at city manager's discretion Objective: Strengthen the partnership between the City and Chamber while increasing visibility of city initiatives through Chamber communication channels.
Events: $15,000.00
• Listening Tour - 4 events, including each business district (North Main, Embarcadero, Quintana, and Downtown) to facilitate discussion with city department directors and district businesses to better understand business concerns and questions
• Annual Summit - bringing together local, county and state leaders and key influencers in the county to share updates, goals, and current outcomes
• Developer Roundtable Chamber facilitates an opportunity for developers to share ideas and concerns in an open format to later share with the city to impart possible process or policy enhancements • Leadership Roundtable - top 20 businesses or industry leaders share needs specific to the industry:
what they need, how they are succeeding, future projections, workforce and growth projections • City-wide event celebration strategy- including the city, Visit Morro Bay, and the business community, including marketing, business engagement, and planning to ensure the entire city supports events.
Objective: Create meaningful engagement opportunities between the business community, city leadership, and key stakeholders to foster collaborative solutions, information sharing, and strategic planning.
Business Vitality Initiative: Start Up to Sustainability - $20,000.00 • Personalized onboarding for all new business licensees, success toolkit, welcome visit/call, and shadow throughout the first year
• All Business engagement - utilizing in-person visits, short surveys to better understand the business climate, resource needs, and possible additional support needs • Report quarterly on overall business climate, including at-risk businesses and intervention strategies, and vacancies.
• Workforce Development - facilitation of up to two job fairs and Job seeker training, working with businesses, local education institutions, and SLO Careers • Business development in conjunction with the city for potential businesses needed in the city, and promoting the current benefits of opening a business in Morro Bay • With Visit Morro Bay, coordinate businesses in the community to provide an all-inclusive exceptional visitor experience, including hotels, restaurants, shops, recreational excursions, eco-educational tours, local museums, and landmarks
Objective: Enhance the economic ecosystem by supporting businesses throughout their lifecycle, from startup to sustainability, while identifying and addressing challenges to create a thriving business environment.
Downtown District Initiative: $5,000.00
Deliverables:
• Vacant property activation strategy in conjunction with city • Develop a district identity by creating focus group within downtown • Support city in implementing a downtown façade program Objective: Revitalize the downtown business district through strategic planning, community involvement, and aesthetic improvements to create a distinctive, vibrant commercial center that attracts both residents and visitors.
The Chamber and City Working Together
By working together in a strategic and focused way, we can support our city and community goals:
• Economic vitality
• Programs that strengthen the business community
• Focused programs specific to the unique environment of each district • Improved understanding and communication with business and the community • Improved dialogue between city, industries, and local businesses centered on specific identified topics to work toward improving the strength and longevity of our business community
Subject: Areas of Collaboration and Suggested Scope of Work for the Chamber of Commerce Service Contracts
From: Yvonne Kimball, City Manager
Date: May 8, 2025
Background:
To facilitate the council discussion on the future City/ Chamber economic development contract, staff prepared this memorandum to outline areas of collaboration that can benefit both the City and the Chamber. The proposed scope is comprehensive and is not presented in an order of priority. It aims to identify all possible areas that can complement each party’s strengths. This scope includes existing initiatives that the Chamber has been carrying out to support city directed economic development efforts, and proposes additional areas that can optimize collaboration and resources sharing. This Scope also acknowledges Chamber membership specific programs, such as Sip, Shop and Stroll; although these programs are not directed by the City, they play a significant role in enhancing the Chamber’s presence and its partnership with the City.
The dollar amount assigned to each category is for discussion purposes, with the total amount similar to the current contract of $44,000 plus additional fees. The Chamber CEO has tentatively accepted the general concept, but may choose to decline to accept the full scope.
Financial Impact: total base fee of $45,000 plus optional fees Scope:
Category I. Enhanced Partnership and General Services: $8,000 + $2,500 Task 1. Chamber provides City with a seat on Chamber’s board. This seat will be either a city Council member or key city staff member.
Task 2. Maintain occupancy of a physical chamber office with appropriate signage and continue to remain open to the public Mondays, Tuesdays and Thursdays, 10:00 a.m. – 12:00 noon.
Task 3. Maintain an office space that is dedicated to providing information regarding tourism, local businesses and new residents, and continue to utilize the space. Task 4. Employ competent staff and maintain adequate staff to carry out activities outlined, and notify the City of any vacancy(ies).
Task 5. Facilitate a joint meeting between the chamber board and City leadership to exchange ideas and promote collaboration.
Task 6. Continue to provide for the Chamber signature programs, such as Sip, Shop and Stroll, and Breakfast on the Bay.
Task 7. Create ribbon cuttings for new businesses regardless of membership status.
Report # of events.
Task 8. Reach out to non-members and share events and informational materials on social media platforms, regardless of membership status. Task 9. For fundraising events held to support the cost of Chamber operations (not Chamber Foundation), the City pledges 12.5.% of the total donations received, up to a maximum of $2,500 for Fiscal Year 2025-26.
Category II. Enhanced Membership Services: $6,000
The City shall receive all rights and benefits offered to Chamber members and sponsors and to be considered as the highest-level Chamber sponsor if applicable. In addition, Chamber
provides the city with the following enhanced services. Task 1. Respond to public inquiries that are related to a wide range of local information and disseminate information to appropriate city departments. Task 2. Chamber presence at City Council meetings, attends County Board of Supervisor and other regional meetings when feasible to ensure Morro Bay Chamber has an active role in community affairs that impact the business community. Task 3. Produce up to 10 graphic art design projects for the City at the City Manager’s request.
Task 4. Designate sections in Chamber’s publications to promote City’s initiatives, and routinely support City’s messages through Chamber’s social media and other communication platforms.
Category III. Business Talk Events: $6,000
Task 1. Host a roundtable discussion with developers. Task 2. Host a roundtable discussion for City leaders with top 20 sales tax producers, largest employers.
Task 3. Annually host and facilitate a regional State of the City event in Morro Bay that brings businesses, regional leaders together to share major city updates and legislative updates
Task 4. Host and facilitate business roundtables for each of the four districts – North Main, Downtown, Quintana, and Embarcadero to connect the business community with key City staff as identified by the City Manager. These district roundtables provide opportunities for City staff to hear business concerns from all parts of the city.
Category IV. Economic Development Support: $25,000
Task 1. Assemble and provide resource tool kit and onboard for all new businesses. Task 2. Business walks and business engagement. Connect with the businesses to learn about their challenges and success stories. In person connection with businesses in four business districts at least twice a year.
Task 3. Identification of at-risk businesses and intervention strategies. Task 4. Report back to City quarterly and make recommendations for strategies to remove barriers.
Task 5. Support City’s upcoming activities that impact the business community by outreach and possibly hosting forums, including but not limited to parking management analysis, paving and repair of public facilities, STR ordinance review, waterfront master plan, business license transition.
Task 6. Maintain an up-to-date vacant commercial property inventory. Create business match making connections and facilitate relocation.
Task 7. Set up a business incubator program at a City provided office space. Promote the program and monitor its effectiveness.
Task 8. Collaboration with Visit Morro Bay to utilize the tourism info sign located at 911 Morro Bay Blvd. Report # of displays.
Task 9. Business leads connection calls or visits. Reach out to potential businesses to locate or expand in Morro Bay. These leads may be provided by City representatives, or by community members.
Task 10. Permitting ombudsman. Provide triage and intermediary services between City and applicants, developers, leaseholders when issues arrive. The purpose is to facilitate communication and improve customer satisfaction.
Task 11. Support City and Visit Morro Bay events and promote these events through
office visits and all available means that Chamber processes. Task 12. Support City in implementing a downtown façade program. Task 13. Create and execute a program to promote holiday spirits in Morro Bay. This will involve some level of City collaboration.
Task 14. Support City and Visit Morro Bay, if applicable, with holiday celebrations, including light-up downtown, and Holiday Boat Parade.
Task 15. Conduct satisfaction surveys of businesses regarding chamber and city services and track the results to show areas of improvements or success.
Optional Tasks or Performance Bonus: $5,000 - $10,000
Optional tasks could include production of an unplanned event, or significant initiatives.
Performance bonus can be provided at the City Council’s direction upon considering criteria such as # of new businesses, reduction of vacant properties, survey results indicating high satisfaction of Chamber services, and # of new anchor business.
Prepared By: GK, CV Dept Review: GK
City Manager Review: YK City Attorney Review: RWS
Staff Report
TO: Honorable Mayor and City Council DATE: May 7, 2025
FROM: Greg Kwolek – Public Works Director
SUBJECT: Selection of Veterans Hall Audio Visual Upgrade Design Alternative
RECOMMENDED ACTION
Approve Veterans Hall Audio/Visual Design Alternative 2 for staff implementation.
ALTERNATIVES
The City Council may:
1. Approve Design Alternative 1;
2. Approve Design Alternative 3; or
3. Provide other direction to staff.
FISCAL IMPACT
No new budget is requested. The Vet’s Hall Building, Audio, and Visual Improvements project is currently funded at $519,091 through prior City Council funding allocations. Design Alternative 2 is estimated to cost $205,900, not including estimated design costs of $15,000, and is expected to remain within the allocated budget. Of note, this cost includes a 5% tariff fee based on anticipated impacts of upcoming tariffs on suppliers. If national tariff policies change between now and the time the order is put in, the costs could go up or down relative to the policy change at the national level.
The project budget breakdown is as follows:
Funding Source Available Project Budget
PEG $227,439
General Fund $291,652
Total: $519,091
The estimate of remaining budget after implementation of the recommended design alternative is as follows:
Budget/Expenditures Amount
Total Budget $519,091
Alternative 2 Estimate Including Design Costs $220,900
Remaining Funding for Building Improvements: $298,191
Beyond audio and visual upgrades, further building improvements such as heating system, security, and ADA improvements for the Vets Hall Building will be funded from this remaining budget but during a later phase.
AGENDA NO: 9.b
MEETING DATE: May 13, 2025
2 BACKGROUND/DISCUSSION
At their meeting on February 11, 2025, the City Council directed staff to bring back for consideration three design alternatives for audio visual system upgrades at the Vets Hall. In the preparation of the three design alternatives, City staff and Bill Gaines Audio, Inc., (BGA) focused on three main goals for how the upgraded system would operate based on feedback received during the City Council meeting:
1. Build a reliable, modern system with high audio and video standards;
2. Find cost efficiencies; and
3. Keep Vets Hall available as a space for public rental.
The project team ensured each of the three designs addressed these goals. As a result, there is significant overlap between recommended system components of the three systems, as outlined below:
1. A reliable, modern system. Each of the systems includes reliability upgrades as well as audio and video quality enhancements. For example, the designs replace almost all components of the existing A/V system (much of which is 25+ years old), including microphones, cameras, monitors, speakers, and controllers, and replaces them with components that will provide a modern, high-definition system that is reliable.
2. Cost efficiencies. Each system includes permanently fixed microphones, cameras, monitors, and semi-permanent (but movable) staff seating to minimize the setup and break down time and costs. Further, staff proposes to eliminate dynamic video, or the ability to switch cameras and camera angles during the meeting, for advisory board meetings. As a result, dynamic video, which requires additional cost or labor, is only assumed for City Council and Planning Commission Meetings, but not for Harbor Advisory Board, Citizens Finance Advisory Committee, Public Works Advisory Board, and Recreation and Parks Commission meetings.
3. Vets Hall remains available for rental. Each system proposes to eliminate seating for four staff members to minimize furniture moving for rentals. The proposed staff area, which will contain 5 new staff stations (City Clerk, City Manager, City Attorney, and two staff presentation stations), will be movable with little effort. The existing dais, which is movable, will remain.
This allows for continued stage rentals.
Given this significant overlap, there are two main distinguishing factors between the three designs:
upfront costs of the system and long-term labor costs due to the different operational needs of each system. These considerations are outlined below within the descriptions of the three design alternatives.
Design Alternative 1: Manual Control and Operation
This design alternative relies on manual control of audio mixing and dynamic video during the meeting by skilled technicians. Human controlled production allows for in-meeting trouble shooting and customization. Because of this, Design Alternative 1 allows for the highest quality audio and video production of all three options. However, this comes at the cost of requiring two to possibly three (if using Zoom) technicians per meeting where dynamic video is desired. Advisory board meetings where dynamic video is not required would be staffed by one skilled technician or one well-trained staff person in this design alternative. As a result, though upfront costs to purchase and install the system are less expensive, long-term operational costs are more expensive.
Design Alternative 2: Semi-Automated Control and Operation (recommended alternative) This design alternative allows for both manual and semi-automated operating modes. While audio mixing will be automated, camera automation will be available for advisory board meetings only, but to a lesser degree than in Design Alternative 3. City Council and Planning Commission meetings, where dynamic video is desired, will require one or possibly two (if using Zoom) skilled technicians to operate. This significantly reduces operation costs as outlined in the table below. Also, audio quality will be greatly enhanced compared to the current audio system.
3 Design Alternative 3: Automated Control and Operation This design alternative allows fully automated control for audio mixing, camera switching through AI machine learning (requires annual license), and microphone activation. This results in strong production quality, though not as finely tuned as a manual setup. The major advantage of this system is that if it is working correctly, no skilled technicians (or possibly one, if using Zoom) are required to run the system during meetings. Though automated systems are functional and can provide great results on a well-built and well-tuned system, humans are still superior at responding to issues and inevitable last second changes. As such, any in-meeting malfunctions may not be fixable during that meeting. This creates a unquantifiable but nevertheless real “hassle factor” in knowing that a malfunction may force meetings to be delayed or cancelled.
Summary Comparison
Design Alternative System Cost
(est.) Annual Cost* (est.) 10-Year Cost(est.) “Hassle Factor”
1. Manual $163,500 $81,140 $974,900 None
2. Semi-automated $205,900 $31,800 $523,900 Very Low**
3. Automated $233,500 $18,000 $413,500 High
*includes labor (skilled technicians), maintenance, and licensing costs **limited to advisory board meetings
Add Ons
Though staff does not recommend the following add-ons, they are available to the City Council during implementation of this project or also at a later time:
Lobby Monitor: A lobby monitor may be added to any of the above systems. The monitor would be placed in the lobby for meeting attendees wishing to watch and listen to a meeting while not being in the main room. This also could be helpful during overflow situations.
Estimated cost: $2,750
Voting Controls: This option would allow the City Council Members, as well as members of City commissions and advisory boards, the ability to place their votes at the dais rather than through a roll call or voice vote. The members’ vote would also be displayed on the screen for the public to see. Estimated cost: $10,000.
CONCLUSION
Based on the comparison of the three audio visual upgrade design alternatives, staff recommends the City Council approve implementation of Design Alternative 2 based on its low total cost, high reliability and production quality, and flexibility.
ATTACHMENT(S)
None