City Council Regular Meeting - June 24, 2025
1. ESTABLISH QUORUM AND CALL TO ORDER
Public Comments:
Mayor Wixom called the meeting to order at 5:30 p.m. with all members present.
2. MOMENT OF SILENCE
Public Comments:
In remembrance of Linna Thomas.
3. PLEDGE OF ALLEGIANCE
Public Comments:
4. REPORTS
Public Comments:
4.a
Closed Session Report
Public Comments:
https://youtu.be/CVr3jSoXeKA?si=veJIWnEbrhDQs1VK&t=82
Interim City Attorney Schultz announced that with regard to the first two Property Negotiations items, no action was taken that required reporting under the Brown Act. Regarding the City Manager Performance Evaluation, action was taken that required reporting. The Council voted 3-2, with Mayor Wixom and Council Member Eckles opposed, to dismiss/release the City Manager from employment with the City.
4.b
Mayor and Councilmembers' Reports, Announcements and Presentations Public Comments:
https://youtu.be/CVr3jSoXeKA?si=2hxyTPomLH52sBLU&t=136
4.c
City Manager Reports, Announcements and Presentations
Public Comments:
None
4.d
Subcommittee Reports - Verbal Update of Current Subcommittee Activities Public Comments:
https://youtu.be/CVr3jSoXeKA?si=8hjocZhO75TkJM8G&t=1045
a.
Water Reclamation Facility & Morro Bay / Cayucos Sanitary District JPA Public Comments:
b.
Morro Bay Power Plant (Vistra)
Public Comments:
c.
Offshore Wind Energy
Public Comments:
d.
Morro Elementary School
Public Comments:
5. RECOGNITION AND PRESENTATIONS
Public Comments:
https://youtu.be/CVr3jSoXeKA?si=9_cls3jlNzgeU7Jh&t=1122
5.a
Proclamation declaring July 2025 as "Parks Make Life Better Month" Public Comments:
Presented to Recreation Services Supervisor Angelica Jepsen.
5.b
Proclamation recognizing the 30th Anniversary of the Morro Bay National Estuary Program Public Comments:
Presented to Morro Bay National Estuary Program Executive Director, Melodie Grubbs.
6. PUBLIC COMMENT
Public Comments:
https://youtu.be/CVr3jSoXeKA?si=vavnns8VBmjEdcr7&t=1523 Linda Winters, Morro Bay, provided a Monday Night dinner update.
Kiernan Cottle, Morro Bay, offered comments.
Margaret Carman, Morro Bay, shared her appreciation for the National Estuary Program and invited them to attend REACT Alliance events.
End of public commenbt.
7. CONSENT AGENDA
Public Comments:
https://youtu.be/CVr3jSoXeKA?si=yOeM2pojgATNNpca&t=1920 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.
Regarding Item 7.f., Mayor Wixom announced the resolution would be amended to transfer the entire $488,000 to the Pavement Management Program.
Betty Winholtz, Morro Bay, appreciated the full amount would be transferred to the Pavement Management Program and restated written comments submitted for Item 7.h, asking that Council not approve the Final EIR, as new areas had been added that were not examined in the original EIR.
End of public comment.
Council Member Landrum pulled Items 7.h. and 7.i.
Motion by
Council Member Eckles
Seconded by
Council Member Landrum
Approve Consent Agenda items 7.a through 7.g 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
Public Comments:
Approve as submitted.
a.
May 27 ,2025 - Regular Council Meeting
Attachments
|
Public Comments
1. Post-Meeting Minutes - CCRM_May27_2025 - English.pdf
b.
June 10, 2025 - Special Closed Session Meeting
Attachments
|
Public Comments
1. Post-Meeting Minutes - CCCM_Jun10_2025 - English.pdf
7.b
Proclamations
Public Comments:
Approve as submitted.
a.
Proclamation declaring July 2025 as "Parks Make Life Better Month" Attachments
|
Public Comments
1. Parks Make Life Better Proclamation 2025 .pdf
b.
Proclamation recognizing the 30th Anniversary of the Morro Bay National Estuary Program Attachments
|
Public Comments
1. MB NEP 30th Anniversary Proclamation 2025.pdf
7.c
Approval of SB-1 Funding Project List for FY 25/26 Pavement Management Plan Project Attachments
|
Public Comments
1. 7c Staff Report SB1 Funding.pdf
2. 7c1 Reso 33-25 approving FY25-26 SB1 Project List.pdf Adopt Resolution No. 33-25 approving the Fiscal Year 2025/26 project list for use of Senate Bill 1 (Road Repair and Accountability Act of 2017) Road Maintenance and Rehabilitation Account (RMRA) funds.
7.d
Approve Professional Services Agreement for RRM Design Group for Design Services for Multimodal Safety and Accessibility Intersection Improvements at Main Street and Quintana Road Attachments
|
Public Comments
1. 7d SR_RRM_Main, Quintana Intersection Improvements.pdf
2. 7d1_Main_Quintana Improvements_RRM agreement - vendor signed.pdf Approve and authorize the City Manager to execute a professional services agreement with RRM Design Group to provide design Services for Multimodal Safety and Accessibility Intersection Improvements at Main Street and Quintana Road in an amount not to exceed $213,172, which includes a 5% contingency.
7.e
Authorization to Enter into a FY 2025-26 Oil Spill Response Equipment Staging Grant Funding Agreement with the Department of Fish and Wildlife (CDWF) in the Amount of $5,000.00 Attachments
|
Public Comments
1. 7e SR Oil Spill Protection Response Grant 6.24.25.pdf
2. 7e1 Reso No. 34-25 Accepting OSPR Grant.pdf
3. 7e2 Attach 2_FINAL OSPR Equipment Staging Template.pdf Adopt Resolution No. 34-25 authorizing the Harbor Director to enter into a FY 2025/2026 Oil Spill Response Equipment Staging Grant Funding Agreement with the CDFW in the Amount Of $5,000.00.
7.f
Adoption of Resolution No. 35-25 Authorizing a FY 24/25 Budget Adjustment Transferring Monies from the Transit Operating Fund to the Pavement Management Program Attachments
|
Public Comments
1. 7f FY25 Budget Amendment Transferring Transit Fund Monies to Pa.pdf
2. 7f1 Reso 35-25 Amending FY 2024-25 Budget Amendment.pdf Mayor Wixom announced the resolution would be amended to transfer the full $488,000 to the Pavement Management Program.
Adopt Resolution No. 35-25 authorizing a FY24/25 budget adjustment as a transfer of $488,000 from the Transit Operating Fund to the General Capital Improvement Fund for the purposes of contributing to the Pavement Management Program.
7.g
Monetary donation from the Friends of the Morro Bay Fire Department Attachments
|
Public Comments
1. 7g SR Accept Friends of the Fire Donation for Station 2 Design.pdf
2. 7g1 Agr. Friends of MB Fire Dept Donation for Station 2 Design.pdf Authorize the City Manager to execute an agreement, accepting the financial donation from the Friends of the Morro Bay Fire Department in the sum of $15,414. to be used for the purpose of completing design and construction documents for the Bonita Street Fire Station #2 Project.
7.h
WRF Quarterly Report, Recycled Water Conceptual Design Report, WRF EIR Addendum #2, Recycled Water Implementation Strategy, and Contract Amendments Attachments
|
Public Comments
1. 7h Staff Report WRF Quarterly Report.pdf
2. 7h1 Attach 1_ WRF_PWAB Quarterly Report FY24-25 Jan-Mar_Final.pdf
3. 7h2 Attach 5_Confluence Compiled.pdf
4. 7h3 Attach 6_GSI Compiled.pdf
5. 7h4 Attach 7_Far Western Amend 9 Compiled.pdf
https://youtu.be/CVr3jSoXeKA?si=OQpAoVtwdWZBF8P0&t=2169 Staff responded to questions raised during public comment and Council inquiries.
Motion by
Council Member Edwards
Seconded by
Council Member Luffee
Staff recommends the City Council:
Receive and file the Fiscal Year 2025 Quarter 3 WRF Quarterly Report (Jan 1 – Mar 31); Receive and file the Conceptual Design Report (CDR) for the Recycled Water Project; Approve the Final Environmental Impact Report (EIR) Addendum #2 for the Water Reclamation Facility (WRF) Program; Approve the Updated Recycled Water Implementation Strategy Recommendations; and Approve and authorize the City Manager to execute:
An amendment to a professional services agreement with Confluence Engineering Solutions (ConfluenceES) to provide recycled water program management support services for Fiscal Year (FY) 2025/26 for the WRF Program in the amount of $356,772 for a not-to-exceed agreement amount of $1,324,304, and to extend the agreement term to June 30, 2026; An amendment to a professional services agreement with GSI Water Solutions, Inc. (GSI) to provide hydrogeological support services in the amount of $397,100 for a not-to-exceed agreement amount of $1,737,463, and to extend the agreement term to December 31, 2026; and An amendment to a professional services agreement with Far Western Anthropological Research Group, Inc. to provide services for archaeological investigations for the Recycled Water Project and Wastewater Treatment Plant (WWTP) Decommissioning and Demolition in the amount of $129,817 for a not-to-exceed agreement amount of $1,174,550.01, and to extend the agreement term to December 31, 2026.
Ayes (4)
Mayor Wixom, Council Member Edwards, Council Member Eckles, and Council Member Luffee Noes (1)
Council Member Landrum
CARRIED (4 to 1)
7.i
Approval of Professional Services Agreement with Anchor QEA for the Wastewater Treatment Plant Decommissioning and Demolition Engineering Design Attachments
|
Public Comments
1. 7i Staff Report _AnchorQEA_WWTPDemo.pdf
2. 7i1 Final Agreement with exhibits.pdf
https://youtu.be/CVr3jSoXeKA?si=ZPNsIHN8e2Sc9tzo&t=2508 Staff responded to Council inquiries.
Motion by
Council Member Landrum
Seconded by
Council Member Edwards
Approve and authorize the City Manager to execute a professional services agreement in the amount of $901,000. with Anchor QEA (A-QEA) for the design services for the Wastewater Treatment Plant (WWTP) Demolition and Decommissioning project; and Authorize the City Manager to approve contract amendments, if needed, up to a 5% contingency ($45,050), for a total not-to-exceed amount of $946,050.
Ayes (5)
Mayor Wixom, Council Member Edwards, Council Member Eckles, Council Member Landrum, and Council Member Luffee CARRIED (5 to 0)
8. PUBLIC HEARING ITEMS
Public Comments:
8.a
Adoption of Resolution No. 36-25 Directing the Levy of the Annual Assessment for the Cloisters Landscaping and Lighting Maintenance Assessment District Attachments
|
Public Comments
1. 8a SR levy assessment (Cloisters)-2025.pdf
2. 8a1 Reso 36-25 Levy Assessment (Cloisters) 2025.pdf
https://youtu.be/CVr3jSoXeKA?si=BBLcivRmeM_XTGZE&t=3183 Public Works Director Kwolek presented a brief report.
Mayor Wixom opened the public hearing and public comment for Item 8.a. https://youtu.be/CVr3jSoXeKA?si=r_ZFt3NhuRx5Nl0d&t=3290 Dawn Beattie, Morro Bay, stated for the record her belief there's no annual increase because the assessment was intended to be transferred to another entity.
Betty Winholtz, Morro Bay, suggested the City put forward a Prop 218 vote implementing annual increases to see if the Cloisters homeowners would turn it down.
End of public comment.
Motion by
Mayor Wixom
Seconded by
Council Member Luffee
Conduct the public hearing and approve the levy of the annual assessment for the Cloisters Landscaping and Lighting Maintenance Assessment District (LLMAD) by adopting Resolution No. 36-25.
Ayes (5)
Mayor Wixom, Council Member Edwards, Council Member Eckles, Council Member Landrum, and Council Member Luffee CARRIED (5 to 0)
8.b
Adoption of Resolution No. 37-25 Directing the Levy of the Annual Assessment for the North Point Natural Area Landscaping and Lighting Maintenance Assessment District Attachments
|
Public Comments
1. 8b_SR levy assessment (No. Point).pdf
2. 8b1_Reso 37-25 Levy Assessment (No. Point).pdf
https://youtu.be/CVr3jSoXeKA?si=z8A6HWMMofhIJzkb&t=3731 Public Works Director Kwolek presented a brief report.
Mayor Wixom opened the public hearing and public comment for Item 8.b. https://youtu.be/CVr3jSoXeKA?si=nFVQ5lmufJqbpuGz&t=3798 Betty Winholtz, Morro Bay, did not favor putting forward a Prop 218 vote for the North Point assessment district at this time and commented on the proper maintenance of this natural area.
End of public comment.
Staff responded to questions raised during public comment.
Motion by
Mayor Wixom
Seconded by
Council Member Landrum
Conduct the public hearing and approve the levy of the annual assessment for the North Point Natural Area Landscaping and Lighting Maintenance District (LLMAD) by adopting Resolution No. 37-25.
Ayes (5)
Council Member Edwards, Council Member Eckles, Council Member Landrum, Mayor Wixom, and Council Member Luffee CARRIED (5 to 0)
9. BUSINESS ITEMS
Public Comments:
The Council took a brief recess at 6:36 p.m. and reconvened at 6:45 p.m. with all members present.
9.a
Resolutions Approving Fiscal Year (FY) 25-26 operating and Capital Budgets; FY 24-25, FY 25-26 and FY 26-27 Salary Schedules; New Job Classifications; Investment Policy; and FY 25-26 GANN Appropriations Limit Attachments
|
Public Comments
1. 9a.0 SR FY 25-26 Budget Adoption.pdf
2. 9a.1 Reso 38-25 Adopting FY 2025-26 Budget.pdf
3. 9a.1a Changes since Budget Study Session (Errata).pdf
4. 9a.2 Reso 39-25 Adopting New Job Classifications and New and Amended Job Descriptions.pdf
5. 9a.2a Utilities Project Manager Job Description.pdf
6. 9a.2b Collections_Pretreatment Operator Job Description.pdf
7. 9a.2c Water Resources Compliance Specialist Job Description.pdf
8. 9a.3 Reso 40-25 Adopting Updated FY25, FY26, FY27 Salary Schedules.pdf
9. 9a.3a FY 24-25 Salary Schedule.pdf
10. 9a.3b FY 2025-26 Salary Schedule.pdf
11. 9a.3c FY 2026-27 Salary Schedule.pdf
12. 9a.4a_4a Reso 41-25 Amending Compensation and Benefits for Unrep Mgmt Designated Empl 2024-27.pdf
13. 9a.5 Reso 42-25 Adopting Investment Policy.pdf
14. 9a.5a Investment Policy June 2025.pdf
15. 9a.6 Reso No. 43-25 Appropriations Limit for FY 2025-26.pdf
16. 9a.6a 2025-26 Calculation of Est Proceeds of Taxes.pdf
17. 9a.6b 2025-26 Calculation of Appropriations Limit.pdf
18. 9a.6c 2025-26 CA Dept Finance Price Factor and Population Est.pdf
19. 9a.7 FY 25-26 Final Budget Presentation.pdf
https://youtu.be/CVr3jSoXeKA?si=q_eEUXHO4MKH83wV&t=4037 Finance Director Conrad presented the report and responded to Council inquiries.
Mayor Wixom opened public comment for Item 9.a.
https://youtu.be/CVr3jSoXeKA?si=69nUMyqIrzvmljLu&t=4990 Jane Heath, Morro Bay resident and business owner, urged the Council to approve the budget as presented including the police communications upgrade.
Walter Heath, Morro Bay, commented in favor of the police communications upgrade project.
Michelle Leicester-Cadaret, Morro Bay, questioned the need for the communications update, suggesting there were alternative ways to secure confidential information.
Margaret Carman, Morro Bay, was not in favor of the police communications project update and was opposed to adding more 5G towers.
Betty Winholtz, Morro Bay, opposed the addition of a Utilities Project Manager, replacement of the radio system, and new water meters, and suggested the Council pull those three items back for consideration at a future meeting. She also suggested lowering the reserve levels, and examining staffing needs.
Dina Lundquist, Morro Bay Chamber of Commerce CEO, offered comments in response to the CFAC's revenue generation recommendations.
Morro Bay Police Sgt. Grant Hasselback spoke on behalf of the Peace Officers' Association ("POA") regarding the importance of an improved communications system.
Nic De Angelis, Morro Bay, urged Council to review a list of capital projects, approve the police communications upgrade, and work to improve the top line.
Morro Bay Police Sgt. and POA President Stephanie Storm commented on the need for an improved communications system to ensure officer safety.
Courtney Shepler, Morro Bay, suggested the long-range forecast projects a need for staffing cuts unless something is done to increase revenues, and asked the Council to be thoughtful and proactive about solving the revenue problems.
Due to technical difficulties, a brief recess was taken at 7:30 pm. The meeting reconvened at 7:46 p.m. with all members present.
Courtney Shepler wrapped up her comments.
Judy Setting, Morro Bay, commented in support of updating the police communications system but hoped a less expensive option was available that meets mandate requirements. She opposed adding a Utilities Project Manager position and suggested the City consider staffing reductions in order to meet long-term essential expenditures.
End of public comment.
Staff responded to questions raised during public comment and further Council inquiries.
Motion by
Mayor Wixom
Seconded by
Council Member Luffee
Staff recommends the City Council:
Adopt Resolution No. 38-25 adopting the (FY) 2025-26 Operating and Capital Budgets; and Adopt Resolution No. 39-25 approving Utilities Project Manager, Collections and Pretreatment Operator, and Water Resources Compliance Specialist Classifications and Job Descriptions; and Adopt Resolution No. 40-25 approving the FY 2024-25, FY 2025-26, and FY 2026-27 Salary Schedules; and Adopt Resolution No. 41-25 approving the Compensation and Benefits for the Unrepresented Management Designated Employees for 2024-25 through 2026-27; and Adopt Resolution No. 42-25 readopting the City’s Investment Policy; and Adopt Resolution No. 43-25 setting the FY 2025-26 GANN Appropriations Limit at $37,744,894
.
Ayes (5)
Mayor Wixom, Council Member Edwards, Council Member Eckles, Council Member Landrum, and Council Member Luffee CARRIED (5 to 0)
9.b
Short-term Rental Ordinance Implementation - Quarterly Update Attachments
|
Public Comments
1. 9b STR Update to Council Staff Report_June 2025.pdf
2. 9b1 Current Vacation Rental Status Map-2025.pdf
https://youtu.be/CVr3jSoXeKA?si=BR-x9zR0j-hrqIB6&t=9370 Community Development Director Singewald presented the report and responded to Council inquiries.
Mayor Wixom opened public comment for Item 9.b.
https://youtu.be/CVr3jSoXeKA?si=87LkX0DIrBTnetNQ&t=11615 Helene Finger, Morro Bay, commented in support of policy change Option 2, prioritizing issuing permits to those on the wait list. She suggested the City revise the ordinance to require STR owners to submit a page from their tax return proving they have an active rental.
Walter Heath, Morro Bay, suggested folding the cost of the business license into the cost of the STR permit to eliminate that bottleneck.
An unnamed person offered comments in support of permitting new STRs in commercial spaces, adding he would have no issue submitting Schedule E from his tax return as evidence of an active rental.
Barry Branin, Morro Bay, supported limiting the number of STRs in residential zones to 137. He was supportive of STRs in commercial zones.
Michelle Leicester-Cadaret, Morro Bay, concurred with Mr. Branin's comments.
Mitchell Bush, STR manager, shared his policy is to make sure the neighbors have his contact information so that operational violations or other problems can be quickly resolved.
Jim Curnutt, Morro Bay, suggested the City have code enforcement officers available on the weekends.
Courtney Shepler, Morro Bay, complimented staff for the work and suggested the City consider an STR license limited to use 30 days per year but otherwise complies with all the same rules.
End of public comment.
Receive and file a quarterly update on the Community Development Department’s progress in implementing the City’s Short-term Rental Ordinance through permit annual renewal process, and resume issuance of commercially zoned STR permits, and provide staff direction as necessary.
10. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS
Public Comments:
https://youtu.be/CVr3jSoXeKA?si=6E0yDcD7s7ptwAF-&t=13191 None.
11. ADJOURNMENT
Public Comments:
The meeting adjourned at 9:32 p.m.
Respectfully submitted,
/s/ Dana Swanson, City Clerk