CITY OF MORRO BAY
Notice of Special Meeting of the City Council
Agenda
Thursday, July 10, 2025, 5:00 p.m.
Veterans Memorial Hall
209 Surf St., Morro Bay, CA
Council Member Edwards will participate via teleconference from The Jabberwock Inn, 598 Laine Street, Monterey, CA 93940.
Council Member Landrum will participate via teleconference pursuant to the "just cause" provisions under AB 2449.
Public Participation
Public participation is offered in the following ways:
• Community members may attend the meeting in person at the Morro Bay Veterans Hall.
Alternatively, members of the public may watch the meeting and speak during general Public Comment or on a specific agenda item by logging into the Zoom webinar using the information provided below. Please use the "raise hand" feature to indicate your desire to provide public comment.
•
Zoom webinar link:
https://us02web.zoom.us/j/82722747698?pwd=aWZpTzcwTHlRTk9xaTlmWVNWRWFU QT09
•
• Password: 135692
Or Telephone Attendee: 1 (408) 638-0968 or 1 (669) 900-6833 or 1 (346) 248-7799; Webinar ID: 827 2274 7698; Password: 135692: Press *9 to raise hand for public comment.
•
• Meetings are also broadcast on cable Channel 20 and streamed on the City's website.
Community Members are encouraged to submit agenda correspondence via email to the City Council at [email protected] prior to the meeting. Agenda correspondence received by 10:00 a.m. on the meeting day will be posted on the City website. •
Pages
1. ESTABLISH QUORUM AND CALL TO ORDER
2. PUBLIC COMMENT FOR ITEMS ON THE AGENDA
3. SPECIAL MEETING AGENDA ITEM(S)
3.a PUBLIC EMPLOYEE CONDITIONAL APPOINTMENT AND 1
CONDITIONAL APPROVAL OF EMPLOYMENT AGREEMENT
BETWEEN THE CITY OF MORRO BAY AND ANDREA LUEKER FOR
THE POSITION OF INTERIM CITY MANAGER
(City Attorney)
Recommended Action
Appoint Andrea Lueker as the Interim City Manager, contingent upon successfully passing the City’s background check, and authorize the Mayor to execute the attached employment agreement between the City of Morro Bay and Andrea Lueker for the Interim City Manager position.
4. ADJOURNMENT
/s/ Carla Wixom, Mayor
This agenda is subject to amendment up to 24 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.
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in a City meeting, please contact the City Clerk's office at (805) 772-6205 or [email protected] at least 24 hours prior to the meeting to ensure reasonable arrangements can be made to provide accessibility to the meeting.
AGENDA NO: 3.a
MEETING DATE: July 10, 2025
Prepared By: __RH______ Dept Review: ______
City Manager Review: _GK_______ City Attorney Review: __RWS___ Staff Report
TO: Honorable Mayor and City Council DATE: July 7, 2025 FROM: Robert Schultz, Interim City Attorney
SUBJECT: Public Employee Conditional Appointment and Conditional Approval of Employment Agreement between the City of Morro Bay and Andrea Lueker for the position of Interim City Manager
RECOMMENDED ACTION
Appoint Andrea Lueker as the Interim City Manager, contingent upon successfully passing the City’s background check, and authorize the Mayor to execute the attached employment agreement between the City of Morro Bay and Andrea Lueker for the Interim City Manager position.
ALTERNATIVES
No alternatives are being recommended.
FISCAL IMPACT
Andrea Lueker is a retired annuitant of the California Public Employees' Retirement System (CalPERS). Under CalPERS rules, 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. Additionally, retired annuitants are not eligible to receive any other benefits, incentives, compensation in lieu of benefits, or other forms of compensation in addition to their hourly pay rate; therefore, salary figures will be no more than those of the former City Manager, and these amounts have been programmed in the current year's budget (FY 25/26).
BACKGROUND/DISCUSSION
Yvonne Kimball, Morro Bay’s former City Manager, served her last day on June 24, 2025. As it is expected to take a few months to complete a recruitment for her replacement, the City is in need of an Interim City Manager.
The candidate for interim City Manager is retired former City Manager, Andrea Lueker. Andrea Lueker has 35 years of experience in the public sector, including 27 years at the City of Morro Bay where she served for 7 years as City Manager, and 7 years as the Harbor Manager at Port San Luis Harbor District.
The proposed employment agreement is provided as Exhibit A and Ms. Lueker’s resume is provided as Exhibit B. Pending completion of the background check, it is anticipated that Ms.
Lueker’s first official day with the City will be July 15, 2025.
CONCLUSION
Staff recommend that the City Council appoint Andrea Lueker as the Interim City Manager, contingent upon successfully passing the City’s background check, and authorize the Mayor to execute the attached employment agreement following the same.
ATTACHMENTS
1. Proposed Interim City Manager Employment Agreement
2. Resume submitted by Andrea Lueker
5INTERIM CITY MANAGER EMPLOYMENT AGREEMENT
LIMITED DURATION RETIRED ANNUITANT
This INTERIM CITY M A N A GE R EMPLOYMENT AGREEMENT - LIMITED DURATION RETIRED ANNUITANT (“Agreement”) is effective on the 15th day of July 2025 and is made by and between the CITY OF MORRO BAY (“City”), a Municipal corporation, and ANDREA LUEKER (“Employee”), an individual. The City and the 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 Manager 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 Manager on a temporary basis subject to the terms and conditions set forth in this Agreement; and WHEREAS, Government Code Sections 21221(h) permits 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, the position of City Manager is currently vacant, and the City is currently conducting a recruitment to fill the vacant position; and WHEREAS, the City anticipates the City Manager position will be filled with a permanent replacement within six months after the effective date of this Agreement; and WHEREAS, the duties of the City Manager are set forth in full in Exhibit “A” to this Agreement; and
WHEREAS, as a CalPERS retired annuitant under Government Code subdivision 21221(h), Employee (i) possesses knowledge, skills and abilities necessary to fulfill the required duties of the Interim City Manager, as demonstrated by their previous success as a City Manager, (ii) desires to perform the duties of and assume responsibility for the position of Interim City Manager, and (iii) acknowledges such employment is at-will and of a limited duration for a limited period, as described below; and
WHEREAS, Employee has served as a City Manager 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 21221(h).
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. Employee shall be appointed to the position of Interim City Manager, the functions and duties of that position, as described in Exhibit “A” to this Agreement, and such other legally permissible and proper duties and functions as the City Council shall, from time to time, direct or assign to Employee. Employee acknowledges that the position of Interim City Manager requires specialized skills and expert professional services for a definite period of time, as described above in Section 1 of this Agreement. Employee agrees to perform all such functions and duties to the best of Employee’s ability and in an efficient, competent, and ethical manner.
1.2 Work Schedule. During the term of his appointment to the position of Interim City Manager, the Parties anticipate that Employee will work a full-time schedule of approximately forty (40) hours per week. Employee shall not work more than forty (40) hours per week without first obtaining written authorization to do so from the Mayor. The Employee acknowledges that the duties of Interim City Manager may occasionally require the Employee to devote time outside of normal office hours, including attendance at City Council meetings and other City or community meetings. Notwithstanding the foregoing, the Parties understand and agree that, due to the CalPERS’ limitation on the number of hours Employee can work for the City, Employee may not be available during some hours or days, if extra time is required for attendance at meetings and other reasons relating to City business.
1.3 Property of City. All data, studies, reports, and other documents prepared and/or reviewed by Employee while performing their duties during the Term of this Agreement shall be furnished to and become the property of the City, without restriction or limitation on their use. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other materials either created by or provided to Employee in connection with the performance of this Agreement shall be held confidential by Employee to the extent permitted by applicable law. Such materials, without the prior written consent of the City, shall not be used by Employee for any purpose other than the performance of their duties. Nor shall such materials be disclosed to any person or entity not connected with the performance of services under this Agreement, except as required by law.
1.4 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 Manager. 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 July 15, 2025 (“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 Manager to allow for a transition period, but no later than January 15, 2026; (ii) upon Employee working 960 hours for fiscal year
2025-2026; 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 they 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 Manager, 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 $118.16 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 No Other Benefits. Employee shall not receive any benefits, incentives, compensation in lieu of benefits, or any other forms of compensation, except for workers’ compensation benefits.
3.3 Reimbursable Expenses. Employees shall be entitled to reimbursement of mileage for driving required in the course of their work (excluding 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 they have been retired for service from state service, as defined in the Public Employees’ Retirement Law, for at least 180 days and that they therefore are eligible to be employed as a retired annuitant by the City.
5.2 Employee represents that they are currently not employed by any other CalPERS employer.
5.3 Employee warrants that they have 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 Andrea Lueker
City of Morro Bay Address on file
595 Harbor Street.
Morro Bay, CA 90755
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 the 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
________________________________
Andrea Lueker
Approved as to form:
____________________________________
Robert Schultz,
Interim City Attorney
CITY MANAGER
DEFINITION
Under broad policy guidance of the City Council, performs high level of administrative, technical, and professional work in directing and supervising the administration of city government.
ESSENTIAL DUTIES AND RESPONSIBILITIES
Manages and supervises all departments of the City to achieve goals within available resources.
Directs and monitors department assignments; reviews progress and directs changes as needed.
Trains, motivates, and evaluates assigned staff.
Provides leadership and direction in the development of short- and longrange plans. Gathers, interprets, and prepares data for studies, reports, and recommendations.
Coordinates activities with other departments and agencies as needed. Provides professional advice to the City Council and the Executive Team. Makes presentations to the City Council, boards, commissions, civic groups, and the public.
Communicates official plans, policies, and procedures to staff and the public.
Performs cost control activities.
Monitors revenues and expenditures to ensure sound fiscal control. Assures effective and efficient use of budgeted funds, personnel, materials, facilities, and time.
Determines work procedures and expedites workflow.
Studies and standardizes procedures to improve the efficiency and effectiveness of operations.
Issues written and oral instructions.
Assigns duties and examines work for exactness, neatness, and conformance to policies and procedures.
Maintains harmony among workers and resolves grievances. Adjusts errors or complaints.
Prepares a variety of studies, reports, and related information for decision-making purposes.
Appoints and removes all department heads and employees of the City. Sees that all laws and ordinances are upheld.
Prepares and submits a preliminary annual City budget. Administers the adopted budget of the City.
Advises the City Council on financial conditions and current and future City needs.
Attends all meetings of the City Council, and meetings at which attendance may be required by the Council.
Other duties as required by the City Council and as set forth in the Morro Bay Municipal Code, Chapter 2.12.
QUALIFICATIONS:
Knowledge of:
Modern policies and practices of public administration. Working knowledge of municipal finance, human resources, public works, public safety, and community development.
Preparing and administering municipal budgets.
Planning, directing, and administering municipal programs.
Ability to:
Prepare and analyze comprehensive reports.
Carry out assigned projects to their completion.
Effectively communicate verbally and in writing.
Establish and maintain effective working relationships with employees, City officials, and the public.
Education & Experience:
Graduation from an accredited four-year college or university with a Bachelor’s degree in public administration, political science, business management, or a closely related field; and
Master’s degree in public administration or public policy preferred; and At least five (5) years' experience in municipal government as an assistant/deputy city manager, city manager, or department head of comparable complexity; OR
An equivalent combination of education and experience Licenses and Certificates:
When driving is an essential function of the position, a valid California driver’s license will be required at the time of appointment and must
be maintained throughout employment.
The Fine Print
The job description does not constitute an employment agreement between the employer and employee and is subject to change as the employer's needs and job requirements change.
The duties listed above are intended only as illustrations of the various types of work that may be performed. The omission of specific statements of duties does not exclude them from the position if the work is similar, related or a logical assignment to the position.
TOOLS & EQUIPMENT USED
Requires frequent use of computers, including word processing and spreadsheet programs; telephone, and copy machine.
PHYSICAL DEMANDS
The physical demands described here are representative of those that must be met by an employee to successfully perform the essential functions of this job. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions.
While performing the duties of this job, the employee is frequently required to sit and talk or hear. The employee is occasionally required to walk; use hands to finger, handle, or feel objects, tools, or controls; and reach with hands and arms.
The employee must occasionally lift and/or move up to 10 pounds. Specific vision abilities required by this job include close vision and the ability to adjust focus.
WORK ENVIRONMENT
The work environment characteristics described here are representative of those an employee encounters while performing the essential functions of this job. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions.
The noise level in the work environment is usually moderately quiet.