AGENDA CORRESPONDENCE
RECEIVED BY THE CITY COUNCIL FOR
PUBLIC REVIEW PRIOR TO THE
MEETING
AGENDA NO: 6c
MEETING DATE: September 23, 2025
AGENDA CORRESPONDENCE
RECEIVED BY THE CITY COUNCIL FOR
PUBLIC REVIEW PRIOR TO THE
MEETING
AGENDA NO: 6e
MEETING DATE: September 23, 2025
2 I believe the ordinance should not apply to ESH. There should be parameters written into the ordinance protecting City parks. One fire chief's intent will not necessarily be the next fire chief's interpretation.
Sincerely,
Betty Winholtz
AGENDA CORRESPONDENCE
RECEIVED BY THE CITY COUNCIL FOR
PUBLIC REVIEW PRIOR TO THE
MEETING
AGENDA NO: 6g
MEETING DATE: September 23, 2025
AGENDA CORRESPONDENCE
RECEIVED BY THE CITY COUNCIL FOR
PUBLIC REVIEW PRIOR TO THE
MEETING
AGENDA NO: 7a
MEETING DATE: September 23, 2025
1 Heather Goodwin
From: Emily Conrad
Sent: Tuesday, September 23, 2025 9:02 AM
To: Airlin Singewald; betty winholtz
Cc: Council
Subject: RE: Response to Questions regarding Planning and Building Fees Dear Ms. Winholtz,
Please see response added to comment number two.
Emily Conrad
Finance Director
City of Morro Bay
(805)772-6217
[email protected]
595 Harbor Street, Morro Bay CA 93442
morrobayca.gov
From: Airlin Singewald <[email protected]>
Sent: Tuesday, September 23, 2025 8:47 AM
To: betty winholtz
Cc: Council <[email protected]>; Emily Conrad <[email protected]> Subject: Response to Questions regarding Planning and Building Fees Dear Ms. Winholtz,
Thank you for taking the time to review and comment on the staff report for the user fee update. Please find below my responses to your questions and comments regarding the Planning and Building fees.
1. Administrative/Planning Commission appeals are to the benefit of the City as they often point out discrepancies and are a direct way the public has a voice in the planning process. This fee should not be out of reach of the "common" resident. This fee should not increase. If it is increased, it should increase no more than the CPI which is .3% this year.
The appeal fee is set substantially below cost recovery to encourage general public involvement in the planning process. This recognizes that the general public benefits from citizen involvement in the planning process. Staff proposes increasing the appeal fee by $8, which is a 2% increase over the current fee level of $336. This is 10% of the estimated cost of $3,438.
2. Business license fees are identified here as less than $100. My license has increased over the years to almost $200. What is the source of this discrepancy? 2 The Master Fee Schedule lists cost recovery items; since the business certificate tax is not cost recovery but rather it is a tax, those specific taxes are not listed in the User Fee Schedule. There is only one cost recovery fee related to business licenses which is the processing fee, and that’s the fee you see in the User Fee Schedule. There is a processing fee for new applications and for renewal applications. The business tax rate schedule is the document that lists the business certificate tax rates.
3. Flat fees versus valuation fees. What are the pros and cons? As described in the staff report, the “pros” of flat rate fees for smaller commonly requested permit types is that they are more user friendly (easier for homeowners to identify permit cost) and consistent (the same regardless of project valuation). On average, the cost of these permit types is not expected to increase above current levels. A possible “con” is that it adds more line items to the fee schedule. This does not change the permitting requirements of the California Building Code.
4. Does the City inspector necessarily know all the electrical, plumbing, and mechanical codes to enforce water heaters, windows, HVAC, and fences? When the report says the City is responsible for safety, I don't think it says you have to charge a fee. In granting licenses, isn't that when the City knows if a company will install/do correct work? Rather than at the other end when a window is being replaced? Won't there be more minor inspections than the inspector can manage in a timely way? Yes, the inspector knows the codes. An inspection is required to verify work was performed correctly to code. The City is not required to charge a fee. However, since building permits provide a direct benefit to the permit recipient, the City’s General Fund should not subsidize this cost.
5. Residents' wages are not automatically raised by the CPI, let alone 10%. Rethink the 2.5 years to get to 100% recovery.
Will inflation eat up the 100% in 2.5 years, so it's a false goal? The fees would be adjusted each year by CPI, in addition to the proposed phasing schedule.
6. Building Other fees. I understand that not increasing fees doesn't allow increase in level of service.
How does maintaining existing level of fees lower existing service levels? The City’s General Fund will be strained if the City does not recover the rising costs of direct benefit services. This will eventually impact existing service levels, if new revenue sources are not pursued.
7. Planning fees. These are mostly administrative anymore. So "public hearing notices; and attendance at hearings" should no longer be standard parts of the planning fees.
These costs are only factored into permits that require public hearing notices and attendance at hearings. Administrative planning permits still require public hearing notices.
8. Item #14: Why is the City's fee 3 times the County's? The County fee is the City’s direct cost to pay the County Clerk-Recorder to file a required Notice of Exemption for a development project. The City’s fee is the cost to prepare the Notice of Exemption.
9. Item #19: any planning commission meeting, not to be assumed in planning fees.
This fee covers an additional Planning Commission meeting at the Applicant’s request. This does not include the meeting already assumed in planning permits that require Planning Commission approval.
10. Item #23: how is it that Telecom Facilities are so inexpensive? 3 Under Federal and State law, the City cannot require discretionary permits for modifications to existing permitted telecommunications facilities. This fee covers the City’s costs for these administrative approvals. New telecommunications facilities will be required to pay Conditional Use Permit or Minor Use Permit fees, the same as other projects.
11. Item #29 and #30: how are these not the same amount of work? Administrative permits are not noticed in the New Times. They only involve post cards to neighbors within 500 feet of the project site.
12. Where is the fee for violations, i.e. tree or fence? The City’s Municipal Code establishes the fines for violations of $100 for the first offense, $200 for the second offense, and $500 for the third offense.
13. Before/After Fire Fees for personnel: Is this for when the City's truck goes to another jurisdiction, or are you charging residents when fires are fought in town?
14. Before/After Rec/Park fees #19: I thought the stage wasn't usable anymore; please clarify.
15. Before/After Rec/Park page 150 or 151, I don't understand this table's purpose. How do you rent open space?
Airlin M. Singewald
Community Development Director
[email protected]
Phone: 805-772-6291
City of Morro Bay | Community
Development
955 Shasta Ave | Morro Bay, CA 93442
www.morrobayca.gov/planning
NOTICE
1 Heather Goodwin
From: Daniel McCrain
Sent: Tuesday, September 23, 2025 12:43 PM
To: betty winholtz; Council
Cc: Heather Goodwin
Subject: response to item 7a
Below is my response to Betty Winholtz question regarding fire fees.
13. Before/After Fire Fees for personnel: Is this for when the City's truck goes to another jurisdiction, or are you charging residents when fires are fought in town? The fire fees for personnel costs listed in the before and after chart are for two scenarios, The first is for cost recovery detailed in category #4 "Incident Response". There are certain incident types where cost recovery is allowable such as for excessive responses due to negligence, malicious acts such as an arson case, or multiple false alarms at the same location. These are not frequent situations, but cost recovery is allowable.
Category #9 "Equipment and personnel charges" is our CAL OES reimbursement rate under the CFAA (California Fire Assistance Agreement) This is the rate each position is reimbursed by CAL OES for participation in the mutual aid system. This rate is set to reimburse at the fully-burdened rate for each position. We do not charge a fee for standard emergency responses in the city. There are special circumstances where cost recovery is warranted and there has to be a fee approved to conduct cost recovery or receive mutual aid reimbursement.
Daniel McCrain
Fire Chief
City of Morro Bay Fire Department
715 Harbor Street
Morro Bay, CA 93442
Office (805)772-6242
Cell (805)635-5216
2 6. Building Other fees. I understand that not increasing fees doesn't allow increase in level of service. How does maintaining existing level of fees lower existing service levels?
7. Planning fees. These are mostly administrative anymore. So "public hearing notices; and attendance at
hearings" should no longer be standard parts of the planning fees.
8. Item #14: Why is the City's fee 3 times the County's?
9. Item #19: any planning commission meeting, not to be assumed in planning fees.
10. Item #23: how is it that Telecom Facilities are so inexpensive?
11. Item #29 and #30: how are these not the same amount of work?
12. Where is the fee for violations, i.e. tree or fence?
13. Before/After Fire Fees for personnel: Is this for when the City's truck goes to another jurisdiction, or are you charging residents when fires are fought in town?
14. Before/After Rec/Park fees #19: I thought the stage wasn't usable anymore; please clarify.
15. Before/After Rec/Park page 150 or 151, I don't understand this table's purpose.
How do you rent open space?
Sincerely,
Betty Winholtz
P 805.772.4467 695 Harbor St [email protected]
Morro Bay CA www.morrochamber.org
Dear Council Members,
On behalf of the Morro Bay Chamber of Commerce and the small business community we serve, I’d like to share our perspective on the proposed fee adjustments currently under consideration.
We understand the City’s intent to recover service costs. However, the proposed increases—whether phased over three years or implemented immediately—represent a significant financial shift for builders, entrepreneurs, and business owners. The impact is not theoretical. It’s real, and it’s cumulative. ● Building permit fees, including plan checks and inspections, will affect contractors, developers, and small-scale remodels alike.
● Sign permit fees, often overlooked, are rising sharply. For a small retailer updating signage or a new café launching its brand, these costs add up quickly. ● Business license fees, especially for home-based and sole proprietors, are increasing in ways that may deter entry or expansion.
● Temporary use permits, event-related fees, and zoning reviews—all essential to activation and placemaking—are becoming more expensive.
Even when spread over three years, the end result is a substantial increase. For small businesses operating on narrow margins, these changes can influence decisions about growth, hiring, and reinvestment.
In Morro Bay, 71% of businesses have between one and four employees, and another 18.8% have five to nine. These are lean operations—often run by one person wearing many hats. Fee increases aren’t absorbed—they’re felt. They show up in delayed signage, postponed remodels, or decisions not to expand.
We ask that Council consider not just cost recovery, but the broader return on business activity— economic vitality, job creation, and community development. When a business invests in its future, the benefit extends far beyond the applicant. It’s felt in foot traffic, civic pride, and local resilience.
We welcome continued dialogue and remain committed to working with City leadership to ensure Morro Bay remains a place where small businesses can thrive—not just survive.
Warm regards,
Dina Lundquist
CEO, Morro Bay Chamber of Commerce
[email protected]