Morro Bay City Council
February 10, 2026

CITY OF MORRO BAY
City Council Regular Meeting Agenda

Tuesday, February 10, 2026, 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.
•
• NEW!! Zoom webinar link: https://us02web.zoom.us/j/82429164990 Or Telephone Attendee: 1 (669) 444-9171 or 1 (669) 900-9128 or 1 (346) 248-7799; Webinar ID: 824 2916 4990. Press *9 to raise hand for public comment. •
• Meetings are also livestreamed 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. PLEDGE OF ALLEGIANCE

3. REPORTS

3.a Closed Session Report

3.b Mayor and Councilmembers' Reports, Announcements and Presentations

3.c City Manager Reports, Announcements and Presentations

3.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. Shared Fire Services

4. RECOGNITION AND PRESENTATIONS

4.a Del Mar Elementary Student Presentation - "Project Rock Solid Community" 5

4.b Measure Q-E Report by CFAC Chair Stephen Peck 23

5. 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. •
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.
•
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.
•
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.
•

6. 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 Items 6.a through 6.f as submitted.

6.a Approval of Minutes
(City Clerk)
Recommended Action
Approve as submitted.

1. January 27, 2026 - Regular Council Meeting 35

2. January 27, 2026 - Special Closed Session Meeting 43

6.b Approval of Proclamations
(City Clerk)
Recommended Action
None.

6.c Second Quarter Investment Report (period ending December 31, 2025) for Fiscal Year (FY) 2025-26
45 (Finance Department)
Recommended Action
Receive the Second Quarter Investment Report (period ending December 31, 2025) for FY 2025-26.

6.d Second Reading and Adoption of Ordinance No. 676 Establishing Local Business Regulations for Massage Establishments and Technicians 49 (Police Department/City Attorney)
Recommended Action
Approve second reading and adoption of Ordinance No. 676, “An Ordinance of the City Council of the City of Morro Bay, California adding Chapter 5.65 to Title 5 of the Morro Bay Municipal Code Regulating Massage Establishments and Professionals.”

6.e Status Update, Reconfirm Emergency, and Approval of Temporary Construction easement for Morro Creek Bank Stabilization Project 91 (Public Works Department)
Recommended Action
Receive and file status update and reconfirm the declaration of emergency for the Morro Creek Bank Stabilization Project by four fifths vote; and

1. Approve the temporary construction easement associated with the Morro Creek Bank Stabilization Project; and

2. Authorize the City Manager to execute the Temporary Construction Easement and related documents on behalf of the City.

3. 6.f Adoption of Proposed Changes to the Council Policies & Procedures 105 (City Manager/City Attorney)
Recommended Action
Adopt Resolution No. 05-26 approving revisions to the Council Policies & Procedures (“Policies”) to reflect recent changes to The Brown Act established by Senate Bill 707.

7. PUBLIC HEARING ITEMS
None.

8. BUSINESS ITEMS

None.

9. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS

10. ADJOURNMENT
The next Regular Meeting will be held on February 24, 2026.

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.

The Civic Analyst’s Field Report Page 5 of 172
Who we Are: Del Mar Elementary
● We are students from Del
Mar Elementary
● Our classes have been
looking at what local
government does
● We went on a walking field
trip as Civic Analysts to
look for our town’s assets
and deficits. Page 6 of 172
Community Needs
● We want to start with what we saw in our
community that we wanted to help make
better
● This is a list of things we saw on our
walking field trip that we would like to fix
● Our community is really great put its not
perfect and does need some help

Repave and Save!

I saw something that needs help in Del
Mar park’s back parking lot.

I saw that it had a cracked parking lot
that could be dangerous to drivers.

My Solution was we could get
someone to repave it.

Squishy Leaning Power Poles Need Concrete.

Drag your evidence photo here I saw some leaning power poles on Main st.

The leaning poles on the street
could squish a pedestrian or
crush a car.

Our solution was to use
concrete to keep them from
falling down. Page 9 of 172
Graffiti
An example of something we need to change is
the graffiti. It taints the beauty of our city and
welcomes more crimes.

As we were walking around Morro Bay, we saw a
lot of graffiti. Some examples are at the bottom
of Panay street in north Morro Bay, and ovelar by
the Mexican restaurant, Mi Casa. I believe that
we should be more strict with our laws and
either raise the fines, or insert security cameras
around the places with the most graffiti.

Hazard In North Morro Bay, No Urgent Care
Urgent Care
There is no Urgent Care in North Morro
Bay
We need an Urgent Care in North Morro
Bay because people are getting hurt day
after day. I see ambulances going up and
down North Morro Bay streets.

Sidewalk Ends and It Connects to a Bike Lane
Drag your evidence photo here
We saw that the sidewalk ends
and you have to walk in the bike
lane.

Location: Main street.

It matters because it is
dangerous for pedestrians to
walk across because you are so
close to cars, and especially if
you are trying to walk an
energetic puppy across.

TRIPPING HAZARD and BROKEN PIPE
Drag your evidence photo here
What we saw: Broken pipe and
liquid stuff.

Location :Pipe is next to the
school wire the fence is .

Our Solution: Just fixing it.

Raising money with fundraising.

More Stop Signs
Location: On Elena and Greenwood
Problem:

There should think there should be a stop sign
on elena when it meets greenwood on both
sides of the road. I’ve almost been hit a couple
times while riding my bike to school on
greenwood by cars on Elena.

Solution: There should be a stop sign on elena
because greenwood is a key designated safe
route to school for Del Mar Elementary School.

Community Assets
● Morro Bay is a great place to live
● On our walk we saw a lot of great things
and here are some of them
● The scenery is amazing!
● The water is great for swimming,fishing,
boating, whatever!
● The iconic, morro bay rock!
● Flowers, so many flowers!
● Pretty nice sunsets
● Here are some MORE things we found
while surveying

Asset: Fences Between Del mar and Del mar Park.

Fence between Del mar and Del
mar park
This is good because it keeps
outsiders where they need to be.

And it keeps kids from escaping,
so it makes school a safe place.

Drainage System on Main Street
What we saw was that the drainage on
Main St. was really big so it would drain
down more water in less time.

The drainage system matters because if
the street floods the water will go down
the drainage so the flood would not end
up like the 2022-2023 flood.

It also helps people so when it’s raining
the water will go down the drain so we
won’t have to step in water.

After School Activities
Location: Sequoia St.

There are 2 after school
locations: Kids Club and
UMCC.

Parents can work and their
kids can play.

Community Food Pantry
Location: Sequoia Street.

What we saw: Community
food pantry.

Why it matters: It is nice for
people who need food when
they don't have anything to
eat. When they need food
this would help a lot. Page 19 of 172
Community Garden
Location: Ironwood Avenue.

What we saw was a
community garden.

Why it matters is so people
can have fresh food to eat and
not have to buy food that has
sat in a store for a awhile, not
fresh like your garden.

Asset: Del Mar Dog Park
Drag your photo here
Location Del Mar Park
What we saw: Dogs playing and
running.

Why it matters: dogs can get
their energy out and its
separated for little dogs, and
bigger dogs.

Thank you for
your time!
We are Del Mar dolphins. Thank
you for your time listening to our
presentation.Thank you for helping
our city become a better place.If you
have any questions now is the time
to ask them. Page 22 of 172
CFAC Report to Council
TO: Mayor and City Councilmembers
DATE: February 10, 2026
FROM: Stephen Peck, Chair
Citizens Finance Advisory Committee/Citizens Oversight Committee SUBJECT: Review of Fiscal Year (FY) 2024-25 Transactions from the Collection of the General-Purpose Local Sales Tax, commonly known as Measure Q/E; Recommendations on the proposed Accounting Simplication Plan.

RECOMMENDED ACTION:

CFAC, acting as the Citizens Oversight Committee, finds and concludes the following regarding the presentation of FY 2024-25 transactions from the collection of the general-purpose local sales taxes, commonly known as Measure Q/E:

1. The reports on the current year’s operating expenses from the Q/E fund generally appear to be consistent with budgeted funds.

2. The report on current year’s capital expenses and prior years capital projects funded from Q/E is incomplete. This report and future reports should include a report on the actual expenditures in the current year for activities actually funded from current and prior year’s capital allocations.

3. The transfer of funds from the Q/E fund to the General Fund Capital Projects reserve or any other fund is a “transaction” but not an “activity” or an “expenditure” within the meaning of the ordinance and measure. The actual activity funded and the expenditures made should be reported, including any transfers between projects, activities or expenditure groups.

4. Since the Citizens Oversight Committee is charged with reporting on “activities funded” per Section 3.26.120 E. of the Municipal Code, the expenditures should be categorized by those activities identified and presented to the voters, and the adopted priorities set forth by the City Council. Variances from those specific activities identified in the Q/E legislation should be noted and explained where they occur.

Also, CFAC recommends the following regarding its workplan item regarding the Accounting Simplification Plan presented by staff:

1. CFAC, acting as the Citizens Oversight Committee, supports efforts to be more cost effective in the administration of the Q/E revenues, subject to the requirement that any accounting enable the City to efficiently report the expenditures, uses and activities funded from the Q/E revenues received in the current and prior fiscal years.

2. Absent a change in the ordinance that was adopted by referendum and a change in the Handbook, CFAC will still be required to review Q/E expenditures and make a report to the City Council on the “activities funded”. Whatever efficient accounting procedures are needed to

support that should be implemented. In doing so, there should not be a trade off of transparency for efficiency or convenience.

3. The allocation methodology presented by the staff as an example is not specifically endorsed by the CFAC. An allocation methodology should be developed based on a historical review of Q/E expenditures, Q/E revenue projections, projections of future departmental and capital needs, robust public participation and CFAC review. This will result in an “allocation plan” that will anticipate the city’s current and future operational, and capital needs to be funded from Q/E revenues.

4. The change in reporting to “activities funded” will enable a simplified, approachable and transparent presentation of the material to the public.

5. There is a significant advantage to developing an “allocation plan”. An allocation plan would enable the city to anticipate and budget for activities that need to spread over multiple years, identify capital improvements that would be and won’t be funded by this revenue source, develop a consensus around the current and future use of such funds, and, demonstrate the city’s commitment to making the improvements that were represented to the community and voters in 2006 and 2020.

Background
In November 2006, the residents of Morro Bay approved a one-half-cent district sales tax, commonly referred to as Measure Q. In November 2020, the residents of Morro Bay approved a one-cent district sales tax, commonly called Measure E. They are general-purpose taxes with no sunset date. Both measures included a provision that requires an independent annual financial audit and the establishment of an independent citizens' oversight committee to review annual expenditures and activities funded. Ordinance 635 (municipal code section 3.26.120) states that “The committee shall review a semi-annual expense report of the city relative to activities funded with the additional general purpose local sales tax monies. Not later than the last day of the sixth month following the end of the each city fiscal year, the committee will present its findings and conclusions to the city council for its review.” [emphasis added].

As approved in 2006, Measure Q authorized a one-half cent increase in the transaction and use tax to preserve Morro Bay's safety and character by funding essential services, including upgrading firefighter/paramedic equipment, fire stations, police, street and pothole repairs, improving storm drains to protect the bay from pollution, and other general city services.

As approved in 2020, Measure E increased the special tax by one percent to a total of 1.5% and stated that the revenues would be used for the following priorities: maintain 24/7 911 public safety emergency response, 24/7 police services, 24/7 paramedic services, health emergency/disaster preparedness; keep beaches, public areas, and public restrooms safe and clean (including the Embarcadero and Harbor); invest in infrastructure; and protect Morro Bay’s financial stability and City services. [Note that Measure E did not include any reference to street maintenance, fire station improvements and equipment, or storm drainage improvements.] At the state level, Measure Q and Measure E have been combined into a single apportionment as a total additional 1.5% local transaction and use tax. However, the city can easily identify the amounts that are attributable to the original 0.5% Measure Q, and the additional amount attributable to the additional amount represented by Measure E.

Use of Measure Q and E Funds
Figure 1 below summarizes the activities that were identified in Measure Q and E, and the function of CFAC that was identified in each Measure. As noted in Figure 1 the purposes of Measure Q were relatively focused. For the Fire Department it was to build and equip the new fire station; for streets it was “street maintenance and pothole repairs”; for the police department it was the “maintenance of police department services”; and, for storm drainage it was to “improve storm drainage to protect the bay”. Although Measure E replaced Measure Q, with the provisions of Measure Q deleted from the municipal code, Measure E provided different “activities” to be funded.

The Measure E ballot language reflects an addition in the Measure Q 0.5% tax rate of 1% by adoption of Measure E. CFAC has therefore interpreted the “activities” to be tracked as those stated in both the Measure Q and Measure E ballot measures. This has been useful and appropriate since the Measure E ballot language does not include a reference to street maintenance, improvement of storm drains, upgrading fire and paramedic equipment, and expenditures on “fire stations”, which CFAC believes are still priority activities. However, an argument may be made that if Measure E “replaced” Measure Q altogether, then the only the priorities and activities identified in Measure E should be used.

CFAC and the community have struggled with identifying the “activities” that Q/E revenues should fund. CFAC receives regular testimony that the revenues were to be focused on only certain expenditure types. Since CFAC’s duty is an “oversight” function to review and report and to not develop its own priorities, it has consistently referred to the stated purposes and activities represented in the two ballot measures as the “activities” to be tracked, monitored and reported. It has resisted the temptation or suggestion to consider Q and E revenues as general taxes to be used on any and all general city services—to essentially “make it up as we go along--since that is inconsistent with the ballot measures and the priorities already established by the City Council.

The most recent action by the City Council on the use of Measure Q and E funds was in April 2021 when the City Council developed expenditure priorities in conjunction with the expenditure considerations for the American Rescue Act, and “…to implement a streamlined process for allocating Local Voter Approved Transaction and Use Taxes.” Most of the activities and expenditures align with the combined activities shown in Figure 1, and there was reference to “…funding staff positions that are most closely aligned with the purposes of the Measures Q and E.”

Figure 1
Findings and Conclusions Relative to Report on FY 2024-25 Transactions Each year CFAC is required to review revenues and expenditures relative to activities funded from the collection of the tax imposed by this chapter and to present its findings and conclusions to the city council for its review. In some years the city has reported this information by activity, in some years it has been reported by expense type and department. In some years, the transfer of capital improvement funds from Q/E to the General Fund or Harbor Fund has been the reported “activity”, and in most years expenditures in the fiscal year from prior year allocations to capital projects have not been consistently reported, or reported at all. CFAC has commented in the past on the need to standardize this and to account for all funds until they are spent on an actual activity.

Currently, expenditures on services, supplies and personnel are relatively easy to track because they are funded directly out of the Q/E fund itself. However, even these funds are not coded by the specific reportable activities. As noted in this year’s report, we have concluded that the reporting on capital expenditures in the 2024/25 fiscal year is incomplete because it does not include adequate information or detail on the expenditure of Q/E funded capital improvements from the current and prior fiscal years. The report and future reports should include a report on the actual expenditures in the current year for activities funded from capital improvement allocations in the current and prior year.

Findings and Recommendations on the Accounting Simplification Plan One previous round of accounting simplification was done in April 2021 when the City Council directed the City Manager to implement a streamlined process for allocating Q/E funds.

This resulted in the elimination of a separate reserve for Q/E, and transferring capital allocations to the Capital Improvement Reserve Fund. The current proposal is to transfer the operating expenditures as well to the General Fund to eliminate separate coding and accounting. As currently proposed, the Q/E revenues would be received in the Q/E fund each year, then transferred out to the General Fund and then allocated to each department according to an established formula.

The public’s and CFAC’s review of this information was limited to the presentation itself, and suffice it to say there is not a clear understanding of the methodology and reasoning for the allocations illustrated. It also perpetuates the reporting by expense type, department or division (police,

fire, consolidated maintenance, etc.) and excludes some of the activities that are authorized by Q/E such as storm drainage improvements, retaining and attracting businesses, fire stations, emergency preparedness, etc. It also establishes a percentage allocation for some departments and a fixed allocation for the Harbor Department. It also makes no mention of the capital items that are intended to be funded from Q/E (fire stations, storm drains, street improvements, etc.) And, finally, it is not clear how the activities are going to be reported, or how transfers are going to be handled.

As noted in our report to council in prior years, Q/E revenues are not projected to keep pace with the increased cost of services and capital. Q/E revenues are projected to increase 2%-3% each year over the next five years, while capital/infrastructure costs and personnel cost are expected to significantly exceed that. It is unrealistic and not prudent to assume that the allocations that have been made in the past can be replicated in the future. Choices need to be made and significant capital commitments need to be anticipated and budgeted. The proposed Accounting Simplification Plan introduces many of the right questions, but getting to the right answers going forward will require more analysis and public input.

Citizens Oversight Committee/Citizens
Finance Advisory Committee (CFAC)
Annual Report to Council
February 10, 2026

CFAC Functions and Duties
Our Responsibilities
Citizens Oversight Committee • Review annual revenue/expenditure report for Measures Q and E relative to activities funded by the measures. • Review semi-annual revenue and expenditure report relative to activities funded by Measure Q and E. • Report on conformance of Q/E expenditures with voter measures and council priorities.

Citizens Finance Advisory Committee
• Provide citizen input on projects, city budget and other items. • Promote citizen participation and understanding of financial information. • Review and comment on city budget prior to its presentation to the City Council • Undertake special financial projects as directed by City Council, City Manager or City Treasurer. • Typical activities in the past: • 10-Year Financial Forecast (former duty) • Review Quarterly Financial Reports (former duty) • Review of Audit (former duty) • City Revenues • Joint Meeting with Council
• PERS/OPEB Liabilities
• City Council Compensation
• Mid-Year Budget Adjustments
• City Council Goals
• Harbor Lease Policy (w/HAB) • Joint Meeting with PWAB re: Capital Projects 1

Summary of 2024/2025 CFAC Activities
What We Accomplished
• CFAC reviewed and commented on measure Q/E transactions for Fiscal Year 2024-2025 • Review of required semi annual reports on Q/E revenues and expenditures. • Reviewed and commented on FY 2025/26 budget proposals. • Review public information strategies to enhance access and transparency. • Completed recommendations for new or augmented revenue sources. • Information and training on sales tax sources and trends. • Information and status of City’s unfunded retirement obligations (OPEB and PERS). • Review and recommendation on City goals and objectives. • Presentation from Public Works on possibility of State Revolving Loan Fund (SRLF) loan for water and sewer funds. • Review proposed Accounting Simplification Plan • Report to Council in February 2024. 2

What Was Recommended Last Year
Transparency, Compliance Maintenance, Citizen Participation, and Effectiveness • Review and establish new expenditure policy and priorities for Q/E Funds, especially given recent revenue decline and projected declining purchasing power. • Continue to involve the CFAC in joint meetings and special projects. • Earlier involvement in the review of existing QE funded capital projects and the selection of projects for funding in each budget cycle. • Review 10-Year revenue projections and 10-Year projections of commitments. • Semi-Annual review of expenditures. • Regular joint meetings with PWAB for capital projects. • Improve video and audio quality of broadcasts. • Provide historic, proposed and projected expenditures by legislative intent categories. • Better explain changes and variances in a budget year. 3

Legislative Purposes (“Activities”)
Described in Q/E Ordinances as Approved by The Voters
Measure
Purpose and Use of Funds Q (2006) E (2020)
Maintain Police Department Services x x
Maintain Fire Department Services x
Maintain 24/7 Paramedic Services x
Maintain 911 Emergency Response x
Upgrading Fire/Paramedic Equipment x
Fire Stations x
Health Emergency/Disaster Preparedness x
x
Keeping Beaches and Public Areas Safe
and Clean
Retaining/Attracting Businesses x
General City Services x x
Street Maintenance and Pothole Repairs x
Improve Storm Drains to Protect the Bay x
“Public Oversight”
“Semi-Annually
Review Revenues
and Expenditures”
“Review Annual
Expenditures to Ensure
That They Were Made in
Accordance with the
Requirements of the
Ordinance.

CFAC Role
4

Conformity of Expenditures
• The reports on the current year’s operating expenses from the Q/E fund generally appear to be consistent with budgeted funds. • The report on current year’s capital expenses and prior years capital projects funded from Q/E is incomplete. This report and future reports should include a report on the actual expenditures in the current year for activities actually funded from current and prior year’s capital allocations. • The transfer of funds from the Q/E fund to the General Fund Capital Projects reserve or any other fund is a “transaction” but not an “activity” or an “expenditure” within the meaning of the ordinance and measure. • Citizens Oversight Committee is charged with reporting on “activities funded”. Report to Council needs to be categorized by those activities. Variances from those specific activities identified in the Q/E legislation should be noted and explained where they occur.

Measure Q/E Overview
Findings and Recommendations
5

Measure Q/E Overview
Findings and Recommendations
Accounting Simplification Plan
• CFAC supports efforts to be more cost effective in the administration of the Q/E revenues, subject to the requirement that any accounting enable the City to efficiently report the expenditures, uses and activities funded from the Q/E revenues received in the current and prior fiscal years. • The ordinance and Handbook requires CFAC to review Q/E expenditures and make a report to the City Council on the “activities funded”. Whatever efficient accounting procedures are needed to support that should be implemented. • An allocation plan is a good idea. An allocation methodology should be developed based on a historical review of Q/E expenditures, Q/E revenue projections, projections of future departmental and capital needs, robust public participation and CFAC review. • The change in reporting to “activities funded” will enable a simplified, approachable and transparent presentation of the material to the public. • An allocation plan would enable the city to anticipate and budget for activities that need to spread over multiple years, identify capital improvements that would be and won’t be funded by this revenue source, develop a consensus around the current and future use of such funds. 6

1 MINUTES - MORRO BAY CITY COUNCIL

REGULAR MEETING
January 27, 2026, 5:30 p.m.

Veterans Memorial Hall
209 Surf St., Morro Bay, CA
Members Present: Mayor Carla Wixom
Council Member Jeff Eckles
Council Member Cyndee Edwards
Council Member Zara Landrum
Council Member Bill Luffee
Staff Present: City Manager John Craig
City Attorney Brian Stack
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
Management Analyst Janeen Burlingame
_____________________________________________________________________

1. ESTABLISH QUORUM AND CALL TO ORDER
Mayor Wixom called the meeting to order at 5:33 p.m. with all members present.

2. PLEDGE OF ALLEGIANCE

3. REPORTS

3.a Closed Session Report
City Attorney Stack announced the Council met in closed session to discuss four items: (3) real property negotiation matters involving Lease Sites 129W-131W located at 1231 Embarcadero, the former Morro Elementary site, and former wastewater treatment plant site; and (1) potential litigation matter. No reportable action pursuant to the Brown Act was taken in closed session.

3.b Mayor and Councilmembers' Reports, Announcements and Presentations

3.c City Manager Reports, Announcements and Presentations

3.d Subcommittee Reports - Verbal Update of Current Subcommittee Activities There were no verbal updates from staff.

1. Water Reclamation Facility & Morro Bay / Cayucos Sanitary District JPA

2 2. Morro Bay Power Plant (Vistra)

3. Offshore Wind Energy

4. Morro Elementary School

5. Shared Fire Services

4. RECOGNITION AND PRESENTATIONS

4.a SLO County Tobacco Control Coalition Presentation on Tobacco Waste in Morro Bay
San Luis Obispo County Tobacco Coalition presentation by Julia Alber, Chair of the Tobacco Control Coalition, and Amy Gilman, Tobacco Control Program Manager, regarding tobacco use, waste, and strategies to reduce tobacco waste.

5. PUBLIC COMMENT
 Brenda Mack, San Luis Obispo County branch of NAACP, expressed deep gratitude for the Black History Month proclamation.
 Doug Paslay, Morro Bay, sought the City's assistance regarding smoke impacts from his neighbor's fireplace.
 Greg Clark, Cayucos, commented on the value of skateparks and offered to help the City build ramps for a new skate park.
 Maggie Juran, Beach-N-Bay Getaways, offered comments on the STR permitting process and misstatements regarding STRs being banned in Monterey, adding permitted STRs have signage with 24-hour contact information to report any problems.
 Renny Strong offered comments about world issues, encouraged people to grow food locally and bring a warming center to the area.
 Linda Winters, Morro Bay, provided a Monday night dinner update and requested the plaque celebrating Morro Bay Lions Club's 80th anniversary be displayed in the Vets Hall display case.
 Carey Lynch, Los Osos, spoke regarding the value and importance of skate parks.
 Paige Kelley, San Luis Obispo, commented on removal of the skate park and hoped the City would consider a new location.
 Adam Ottenberg, San Luis Obispo, hoped to reestablish a skate park in Morro Bay.
 Angie Kasprzak, San Luis Obispo, thanked the City for its acknowledgment and support for Black History Month.
 Garry Johnson, Morro Bay, opposed paid parking at Tidelands Park.  Joan Solu, Morro Bay, expressed support for the skateboard community and urged the City to consider the model used for the development and maintenance of the Bike Park.

3  Betty Winholtz, Morro Bay, offered comments on the Coleman Park project.  Helena, Morro Bay Massage Therapy, commented on the proposed massage ordinance and requested a town hall to bring forth concerns and get clarity on the proposed regulations.
 Judy Setting, Morro Bay, offered comments in support of an alternative skate park, swings at Coleman Park, and a parking ramp usage fee at Tidelands Park.

She urged the City to protect our small-town character and do all it can to purchase Morro Elementary.

End of public comment.

Staff responded to issues raised during public comment.

6. 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.

Mayor opened public comment.
 Jeff Heller, Morro Bay, commented in support of Item 6.c.  Eric Daniels, Pacific Gas & Electric, shared its commitment to working with leaders in Sacramento and locally regarding Item 6.g and thanked City staff working with PG&E on the continued use of the bike park.  Michael Wambolt, Visit Morro Bay, commented on Item 6.e.  Joan Solu, Morro Bay, commented in favor of Item 6.e. as presented.  Betty Winholtz, Morro Bay, was not in favor of imposing tax on campers, offered alternatives to the Morro Creek stabilization project, and commented on Item

6.g.

End of public comment.

Mayor Wixom pulled Item 6.e. Council Member Landrum pulled Item 6.j.

Motion by Council Member Eckles
Seconded by Council Member Luffee
Approve consent agenda items 6.a - 6.d, 6.f - 6.h, and 6.i, as submitted.

Ayes (5): Mayor Wixom, Council Member Eckles, Council Member Edwards, Council Member Landrum, and Council Member Luffee
CARRIED (5 to 0)

6.a Approval of Minutes
Approve as submitted.

1. December 9, 2025 - Regular Council Meeting

4 2. January 13, 2026 - Special Closed Session Meeting

3. January 13, 2026 - Regular Council Meeting

4. January 14, 2026 - Special City Council Meeting

6.b Approval of Proclamations
Approve as submitted

1. Proclamation recognizing February 2026 as Black History Month

6.c Ordinance No. 674, amending Title 1 (General Provisions) of the Morro Bay Municipal Code to Increase the Dollar Amounts of Administrative Citations Imposed on Short-Term Rentals (STRs) that Pose a Threat to Health and Safety, in Accordance with State
Adopt Ordinance No. 674: “Ordinance No. 674, amending Title 1 (General Provisions) of the Morro Bay Municipal Code to Increase the Dollar Amounts of Administrative Citations Imposed on Short-Term Rentals (STRs) that Pose a Threat to Health and Safety, In Accordance with State Senate Bill 60, and Finding the Action Not Subject to CEQA.”

6.d Adoption of Ordinance No. 675 Establishing Local Campaign Finance Contribution Limits
Adopt Ordinance No. 675, “An Ordinance of the City Council of the City of Morro Bay, California, adding Chapter 2.50 to the Morro Bay Municipal Code Relating to Campaign Contribution Limits.”

6.e Resolution of Intention to Renew the Morro Bay Tourism Business Improvement District (MBTBID)
Michael Wambolt, Visit Morro Bay, and Kelly Rankin, Senior Project Mgr with Civitas responded to Council questions.

Motion by Mayor Wixom
Seconded by Council Member Eckles
Adopt Resolution No. 03-26 declaring the City’s intent to renew the MBTBID for a 10-year term.

Ayes (5): Mayor Wixom, Council Member Eckles, Council Member Edwards, Council Member Landrum, and Council Member Luffee
CARRIED (5 to 0)

6.f Status Update and Reconfirm Emergency for Morro Creek Bank Stabilization Project
Receive and file status update and reconfirm the declaration of emergency for the Morro Creek Bank Stabilization Project by four fifths vote.

6.g Request from County of San Luis Obispo for Support of Legislation Supporting Extended Operations of Diablo Canyon Power Plant and Restoration of Unitary Tax Treatment

5 Consider authorizing the County of San Luis Obispo to include the City of Morro Bay as a supporter of the County’s request for legislation to authorize operations of the Diablo Canyon Power Plant (DCPP) for an additional 20 years, restore predecommissioning unitary tax treatment for the DCPP, and support the California Coastal Commission’s land conservation and public access plan for lands surrounding the DCPP.

6.h Notice of Completion for the 2024 Paving Project (Project No. 2024-ST04)

1. Accept the work as performed by Souza Construction Inc.; and

2. Authorize the City Engineer to execute and record a Notice of Completion for the project.

6.i Approval of License Agreement between the City of Morro Bay and PG&E for Continued Access and Use of PG&E Property for the Morro Bay Bike Park

6.j Adopt Resolution No. 04-26 accepting the Multi-Jurisdictional Hazard Mitigation Plan 2025-2030 and approving Morro Bay Hazard Mitigation Plan Annex D
Fire Chief McCrain and City Attorney Stack responded to Council questions and agreed to make administrative corrections to Annex D, as needed.

Motion by Council Member Landrum
Seconded by Council Member Luffee
Adopt Resolution No. 04-26 approving the 2025 San Luis Obispo County MultiJurisdictional Hazard Mitigation Plan and City of Morro Bay Local Hazard Mitigation Plan Annex D.

Ayes (5): Mayor Wixom, Council Member Eckles, Council Member Edwards, Council Member Landrum, and Council Member Luffee
CARRIED (5 to 0)

7. PUBLIC HEARING ITEMS
The Council took a brief recess at 7:10 p.m. and resumed at 7:18 p.m. with all members present.

7.a Introduce and First Reading of Municipal Ordinance for Establishing Local Business Regulations for Massage Establishments and Technicians Police Chief Watkins presented the staff report, highlighting the following proposed changes to the draft ordinance:

5.65.090 – Limited exception from CAMTC certification requirement  (b) change 30 days from effective date to 90 days.
 (c)(1) change to read business tax certificate or W2.  (c)(3) change wording to: Evidence that he or she attempted to obtain certification from CAMTC and was provided a letter advising of additional

6 requirements of schooling, hours, etc. despite existing training and experience, he or she could not qualify for certification from CAMTC; and  (f) change date to February 1, 2028.

5.65.110 – License application background check – owner  (k) add certificate to three sentences that include, license or permit or certificate in lines one, three, and four to section (k).

5.65.140 – Massage establishment license grounds for denial.  (j) add certificate to line two, has had a permit or license or certificate to practice.

5.65.185 – Massage Therapist – certificated name (new section)  No certificated massage therapist shall operate under another name or alias that is not listed on their CAMTC certification or local license.

5.65.240 – Massage establishment – Revocation or suspension of license.  (a) add or state massage therapy act business and professional code 4621

5.65.260 – Appeals – Hearing
 Remove “to the council” from line two and line four.

Mayor Wixom opened the public hearing and public comment.  Judy Setting, Morro Bay, offered support for the proposed regulations, questioned hours of operation, and suggested hotels have a specific room for massage for the safety of customers and the practitioner.  Nicole Dorfman, Morro Bay, expressed support for health and wellness opportunities, was concerned about limiting the number to ten, and noted a sunset on some provisions might root out the bad businesses.

End of public comment.

Mayor Wixom closed the public hearing.

Staff responded to additional questions.

During Council deliberations, there was majority support for the revisions presented by staff and consensus to make the following additional changes:

5.65.130 Additional restrictions and requirements.
 (c)(1) – change maximum allowable massage establishments from ten to twenty (20).
 (d) – remove this section from the ordinance.

5.65.170 Record keeping requirements.
 Remove “the name and address of the patron” from line two.

7 Motion by Mayor Wixom
Seconded by Council Member Luffee
Introduce for first reading by title only with further reading waived, Ordinance No. 676, “An Ordinance of the City Council of the City of Morro Bay, California Adding Chapter 5.65 to Title 5 of the Morro Bay Municipal Code Regulating Massage Establishments and Professionals” with modifications presented by staff and additional changes by City Council.

Ayes (5): Mayor Wixom, Council Member Eckles, Council Member Edwards, Council Member Landrum, and Council Member Luffee
CARRIED (5 to 0)

8. BUSINESS ITEMS

8.a Review Harbor Advisory Board Recommendations for Launch Ramp Paid Parking
Harbor Vitality Director Munson presented staff report and responded to Council inquiries.

Mayor Wixom opened public comment.
 Betty Winholtz, Morro Bay, opposed paid parking at Tidelands launch ramp, noting the County park near Cuesta College charges for parking during specific times of day. She supported the idea of not charging a parking fee during holiday events.

End of public comment.

Staff responded to additional questions.

Council Members Eckles and Landrum opposed a single stall parking fee at the launch ramp but were interested in analysis of paid parking at the Rock and other areas of town.

Motion by Council Member Luffee
Seconded by Council Member Edwards

1. Receive staff report and recommendations from the Harbor Advisory Board (HAB) and approve issuance of one annual single stall pass per Commercial Fishing boat launch slip and permitted liveaboard vessel at no cost for the first year, and

2. Authorize staff to reduce the single stall annual pass fee from $175 to $83 for FY 2026/27 with approval of the FY 2026/27 Master Fee Schedule to be reviewed by Council in April 2026.

Ayes (3): Mayor Wixom, Council Member Edwards, and Council Member Luffee Noes (2): Council Member Eckles, and Council Member Landrum CARRIED (3 to 2)

8 9. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS
Council Member Eckles requested and received support for reconsideration of the Harbor Director's job title.

10. ADJOURNMENT
The meeting adjourned at 9:31 p.m.

Respectfully submitted,
/s/ Janeen Burlingame, Management Analyst

1 MINUTES - MORRO BAY CITY COUNCIL

CLOSED SESSION MEETING
January 27, 2026, 3:30 p.m.

City Hall Conference Room
595 Harbor Street, Morro Bay, CA
Members Present: Mayor Carla Wixom
Council Member Jeff Eckles
Council Member Cyndee Edwards
Council Member Zara Landrum
Council Member Bill Luffee

Staff Present: City Manager John Craig
City Attorney Brian Stack
Public Works Director Greg Kwolek
Community Development Director Airlin Singewald
Harbor Vitality Director Chris Munson
Finance Director Emily Conrad
_____________________________________________________________________

1. ESTABLISH QUORUM AND CALL TO ORDER
Mayor Wixom called the meeting to order at 3:30 p.m. with all members present.

2. SUMMARY OF CLOSED SESSION ITEMS

3. CLOSED SESSION PUBLIC COMMENT
Mayor Wixom opened public comment for items on the agenda.  Betty Winholtz, Morro Bay, spoke in response to a letter from Jeff Heller regarding the Morro Elementary site. She provided background on the letter and stated that we believe the city is on the right track. She gave examples from other cities, including Grover Beach and Santa Barbara, noting that they do not allow buildings at market rate. She noted that, noting she wants the city to remain in control of the project rather than the developer.  Garrett Rose, Morro Bay Seafood Company, LLC, stated that he hopes the city will consider their proposal.

End of public comment.

4. THE COUNCIL WILL CONVENE IN CLOSED SESSION

4.a CONFERENCE WITH REAL PROPERTY NEGOTIATOR - GOVERNMENT CODE SECTION 54956.8

2 Property: Lease Sites 129W-131W, 1231 Embarcadero, Morro Bay Seafood Company
Property Negotiator: Garrett Rose & David Rose, Morro Bay Seafood Company, LLC
Agency Negotiators: Chris Munson, Harbor Vitality Director; John Craig, City Manager; Brian Stack, City Attorney
Negotiations: Price and Terms of Payment

4.b CONFERENCE WITH REAL PROPERTY NEGOTIATOR - GOVERNMENT CODE SECTION 54956.8
Property: 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; Emily Conrad, Finance Director; John Craig, City Manager; Brian Stack, City Attorney Negotiations: Price and Terms of Payment

4.c CONFERENCE WITH REAL PROPERTY NEGOTIATOR - GOVERNMENT CODE SECTION 54956.8
Property: APNs 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; Emily Conrad, Finance Director; John Craig, City Manager; Brian Stack, City Attorney Negotiations: Price and Terms of Payment

4.d CONFERENCE WITH LEGAL COUNSEL - POTENTIAL LITIGATION Significant exposure to litigation pursuant to Government Code Section 54956.9(d)(4): (one potential case)

5. RECONVENE IN OPEN SESSION
The City Council reconvened in Open Session. The Council did not take any reportable action in accordance with the Brown Act.

6. ADJOURNMENT
The meeting adjourned at 5:05 p.m.

Respectfully submitted,
/s/ Heather Goodwin, Deputy City Clerk

Prepared By: SP/EC Dept Review: EC
City Manager Review: JC City Attorney Review: BS
Staff Report
TO: Honorable Mayor and Councilmembers DATE: January 27, 2026 FROM: Emily Conrad, Finance Director
SUBJECT: Second Quarter Investment Report (period ending December 31, 2025) for Fiscal Year (FY) 2025-26

RECOMMENDED ACTION
Receive the Second Quarter Investment Report (period ending December 31, 2025) for FY 2025-

26. FISCAL IMPACT
There is no fiscal impact associated with this recommendation.

DISCUSSION
The Second Quarter Investment Report for FY 2025-26 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 interest of $847,688 during the period of October through December 2025, a decrease of $37,727 over prior quarter earnings of $885,414. For comparison, the same period in 2024 saw interest earnings of $903,348. Interest earnings have dipped as expected as interest rates have declined. The year-to-date earnings are still higher than prior years and can be attributed to increased cash balances in Mechanics Bank Money Market and LAIF, particularly as the LAIF account continues to earn over 4% on approximately $40 million of the City’s cash.

At the end of the second quarter, the cash balance of over $90 million was comprised of many different sources recorded across 47 different funds with varying restrictions. Only 12% of the total cash belongs to the General Fund Group (collective General Fund, General Fund Emergency AGENDA NO: 6.c
MEETING DATE: February 10, 2026
Cash and Pooled Investment Portfolio at December 31, 2025 Institution Par Value¹ Market Value² WAM³
Mechanics Bank (interest earning accounts) 33,774,571 33,774,571 0 LAIF 40,607,456 40,696,041 0
Zions Bancorporation (CDs and Treasury Notes) 11,938,000 12,047,958 93 Subtotal Pooled Investment Portfolio 86,320,027 86,518,570 Mechanics Bank (operating/non-interest earning) 4,470,569 4,470,569 0 TOTAL IN TREASURY 90,790,596 90,989,139

Reserve, Unfunded Compensable Leave, General Government Vehicle Replacement, General Fund Facility Maintenance, and Capital Accumulation funds). Approximately 65% of the City’s cash holdings belonged to the enterprise funds (Harbor, Transit, Water, and Sewer funds), which is not available for use for general government operations. The remainder was in special revenue funds, each with restricted use.

The City’s portfolio averaged an interest rate slightly lower than LAIF by 0.55%. Over this quarter, the Mechanics Bank interest rate dropped below LAIF due to a slight decrease from 4.26% to

3.74%. LAIF decreased as well from 4.34% to 4.20%. During this quarter, no holdings matured and none were purchased. Staff continue to monitor interest rates closely to maximize earnings.

CONCLUSION
Staff recommends that the City Council receive the Second Quarter Investment Report (period ending December 31, 2025) for Fiscal Year 2025-26.

ATTACHMENT(S)

1. Second Quarter Investment Report for FY 2025-26 (period ending December 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 40,607,456 40,607,456 40,696,041 429,368 41,125,409 4.20% DAILY 1 POOLED MONEY INVESTMENT ACCOUNT:
40,607,456 40,607,456 40,696,041 429,368 41,125,409
MM MECHANICS BANK - MONEY MARKET 29,935,596 29,935,596 29,935,596 - 29,935,596 3.74% DAILY 1 SWEEP MECHANICS BANK - SWEEP 3,838,975 3,838,975 3,838,975 - 3,838,975 0.01% DAILY 1 MECHANICS BANK - PUBLIC CHECKING 4,470,569 4,470,569 4,470,569 4,470,569 0.00% MONEY MARKET ACCOUNT: 38,245,140 38,245,140 38,245,140 - 38,245,140 SUBTOTAL LIQUID INSTRUMENTS: 78,852,596 78,852,596 78,941,181 429,368 79,370,549

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 30960QAV9 Zions Bank-Farmers Insurance Group 249,000 249,000 249,111 157 249,268 4.60% 1/26/2026 26 90352RDA0 Zions Bank-US Alliance FCU Rye NY 249,000 249,000 249,974 160 250,134 4.70% 5/26/2026 146 39573LEC8 Zions Bank-Greenstate Credit Unions 248,000 248,000 249,221 999 250,219 4.90% 6/1/2026 152 254673Q33 Zions Bank-Discover Bank Greenwood 245,000 245,000 244,548 3,056 247,604 3.35% 8/17/2026 229 22282XAF7 Zions Bank-Covantage Cr Un Antigo WI 247,000 247,000 247,881 1,067 248,948 4.15% 8/24/2026 236 130162AX8 Zions Bank-California Cr Un Glendale 243,000 243,000 245,513 4,251 249,764 5.15% 8/28/2026 240 444425AC6 Zions Bank-Hughes Fed Cr Un Tuscon Az 248,000 248,000 250,559 70 250,629 5.15% 8/31/2026 243 065427BG0 Zions Bank-Bank Utah Ogden Utah 244,000 244,000 245,185 4,331 249,515 4.10% 1/26/2027 391 856285G21 Zions Bank-State Bank of India NY 250,000 250,000 244,973 1,726 246,699 1.75% 2/9/2027 405 25844MBN7 Zions Bank-Dort Finl Cr Un Grand Blanc 246,000 246,000 249,828 3,042 252,870 5.00% 2/26/2027 422 41138NAB4 Zions Bank-Hapo Comnty Cr Un Richland 248,000 248,000 251,851 1,019 252,870 5.00% 2/26/2027 422 02589ABQ4 Zions Bank-American Express Natl 247,000 247,000 242,415 1,529 243,945 2.00% 3/9/2027 433 14042TFJ1 Zions Bank-Capital One 246,000 246,000 243,155 1,438 244,593 2.70% 4/13/2027 468 16863LAG0 Zions Bank-Chief Finl Fed Cred Un 249,000 249,000 249,924 506 250,429 3.90% 7/12/2027 558 19058RAE1 Zions Bank-Coastal1 Cr Un Pawtucket RI 249,000 249,000 251,209 - 251,209 4.15% 1/31/2028 761 05580A4P6 Zions Bank-BMW Bk North Amer Utah 244,000 244,000 251,413 1,453 252,866 4.90% 11/17/2028 1,052 61690D5J3 Zions Bank-Morgan Stanley Bk NA 244,000 244,000 247,470 938 248,408 4.25% 5/29/2029 1,245 61776NSR5 Zions Bank-Morgan Stanley Private Bk 244,000 244,000 247,470 938 248,408 4.25% 5/29/2029 1,245 8824ITWN6 Zions Bank-Texas Exchange Bk Crowley 249,000 249,000 248,443 230 248,673 3.75% 8/28/2029 1,336 45780PDC6 Zions Bank-Institution for Svgs Newbury 249,000 249,000 247,272 151 247,424 3.70% 8/26/2030 1,699

CERTIFICATES OF DEPOSIT
4,938,000 4,938,000 4,957,415 27,059 4,984,475
3133EP5S0 Zions Bank-Federal Farm Cr Bks 3,000,000 2,988,009 3,044,738 35,615 3,080,353 4.25% 3/20/2028 810 3133EP3B9 Zions Bank-Federal Farm Cr Bks 2,000,000 1,989,780 2,032,601 31,571 2,064,173 4.13% 2/13/2029 1,140

FEDERAL FARM CREDIT
5,000,000 4,977,789 5,077,340 67,186 5,144,526
91282CKA8 Zions Bank-US Treasury Note 2,000,000 1,984,850 2,013,203 30,938 2,044,141 4.13% 2/15/2027 411 U.S. TREASURY NOTES & BONDS
2,000,000 1,984,850 2,013,203 30,938 2,044,141
SUBTOTAL NON-LIQUID INSTRUMENTS: 11,938,000 11,900,639 12,047,958 125,183 12,173,141 90,790,596 90,753,235 90,989,139 554,551 91,543,690
12/31/2025 12/31/2025
562,628 1,733,102 86.887% 3.655% 93

QUARTERLY

ACCRUED

INTEREST AS
OF

CITY OF MORRO BAY

QUARTERLY PORTFOLIO PERFORMANCE

WEIGHTED

AVERAGE

DAYS TO

MATURITY

WEIGHTED

AVERAGE

RATE OF

EARNINGS
12/31/2025
YTD

RECORDED

INTEREST AS
OF
% OF LIQUID

PORTFOLIO

HOLDINGS
TOTAL LIQUID AND NON-LIQUID INVESTMENTS:

CITY OF MORRO BAY

QUARTERLY PORTFOLIO PERFORMANCE
12/31/2025

QUARTERLY PERFORMANCE COMPARISON - PORTFOLIO VS LAIF
12/31/2024 3/31/2025 6/30/2025 9/30/2025 12/31/2025
Portfolio - weighted average rate of earnings 4.303% 4.298% 4.153% 3.936% 3.655% LAIF - quarterly earnings rate 4.620% 4.480% 4.400% 4.340% 4.200% Portfolio over -(under) LAIF -0.317% -0.182% -0.247% -0.404% -0.545%

PUBLIC AGENCY RETIREMENT SERVICES (PARS) - LEAGALLY RESTRICTED INVESTMENTS EXCLUDED FROM WEIGHTED PORTFOLIO PARS OPEB Public Agency Retirement Services 3,000,057 2.35 DAILY DAILY 1 PARS Pension Trust Public Agency Retirement Services 3,400,972 2.09 DAILY DAILY 1 6,401,029

CHANGES FROM PRIOR QUARTERLY REPORT

MATURED INSTRUMENTS PAR PURCHASE INTEREST PURCHASE MATURITY

CERTIFICATES OF DEPOSIT VALUE PRICE RATE DATE DATE
U.S. OBLIGATIONS
TOTAL MATURED VALUE - None

NEW INSTRUMENTS PURCHASE INTEREST PURCHASE MATURITY

CERTIFICATES OF DEPOSIT PRICE RATE DATE DATE
U.S. OBLIGATIONS
TOTAL NEW INSTRUMENTS - None
Portfolio holdings as of the quarter ended 12/31/2025, are in compliance with the current Investment Policy. With 86.89% 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 June 2025. The investment policy will be updated annually as required by state law.

Prepared By: AW Dept Review: ____
City Manager Review: JC City Attorney Review: BS
Staff Report
TO: Honorable Mayor and City Council DATE: January 29, 2026 FROM: Amy Watkins, Chief of Police
Brian J. Stack, City Attorney
SUBJECT: Second Reading and Adoption of Ordinance No. 676 Establishing Local Business Regulations for Massage Establishments and Technicians

RECOMMENDED ACTION
Approve second reading and adoption of Ordinance No. 676, “An Ordinance of the City Council of the City of Morro Bay, California adding Chapter 5.65 to Title 5 of the Morro Bay Municipal Code Regulating Massage Establishments and Professionals.”

ALTERNATIVES
Do not take action to establish local business regulations specific to massage establishments and technicians.

FISCAL IMPACT
If the Council decides to pursue adoption of local business regulations for massage establishments and technicians, the initial preparation and adoption of an ordinance would be supported by the General Fund and expected to be absorbed under existing budget authority. The future administration and enforcement of any local business regulations may require an update to the City’s fee schedule. Given current budget restraints, it is anticipated enforcement would initially be added to existing staff’s work plan, which could impact delivery of services depending on resource demands.

BACKGROUND
Introduction and first reading of the proposed ordinance, as modified during the hearing, took place on January 27, 2026, at the regular City Council meeting.

Changes to the draft ordinance were presented to council during the presentation.

This resulted in the recommended and accepted changes to sections:
 5.65.090 – Limited exception from CAMTC certification requirement. - (b) change 30 days from effective date to 90 days.
- (c)(1) change to read business tax certificate or W2. - (c)(3) change wording to: Evidence that he or she attempted to obtain certification from CAMTC and was provided a letter advising of additional requirements of schooling, hours, etc. despite existing training and experience, he or she could not qualify for certification from CAMTC; and
AGENDA NO: 6.d
MEETING DATE: February 10, 2026

2 - (f) change date to February 1, 2028.
 5.65.110 – License application background check – owner - (k) add certificate to three sentences that include, license or permit or certificate in lines one, three, and four to section (k).
 5.65.140 – Massage establishment license grounds for denial. - (j) add certificate to line two, has had a permit or license or certificate to practice.  5.65.185 – Massage Therapist – certificated name (add section) - No certificated massage therapist shall operate under another name or alias that is not listed on their CAMTC certification or local license.
 5.65.240 – Massage establishment – Revocation or suspension of license. - (a) add or state massage therapy act business and professional code 4621  5.65.260 – Appeals – Hearing
- Remove “to the council” from line two and line four.

During the Council deliberations, staff were directed by council to change the following sections in the draft ordinance:
 5.65.130 Additional restrictions and requirements.
- (c)(1) – change maximum allowable massage establishments from ten to twenty (20). - (d) – remove this section from the ordinance.
 5.65.170 Record keeping requirements.
- Remove “the name and address of the patron” from line two.

The attached ordinance includes all directed changes described above and clerical updates to identify the applicable effective date if the ordinance is adopted at this meeting.

CONCLUSION/RECOMMENDATION
Adopt Ordinance No. 676, “An Ordinance of the City Council of the City of Morro Bay, California, adding Chapter 5.65 to Title 5 of the Morro Bay Municipal Code Regulating Massage Establishments and Professionals.”

ATTACHMENTS

1. Ordinance No. 676 – Redlined

2. Ordinance No. 676 - Clean

1 ORDINANCE NO. 676

AN ORDINANCE OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA
ADDING CHAPTER 5.65 TO TITLE 5 OF THE MORRO BAY MUNICIPAL

CODE REGULATING MASSAGE ESTABLISHMENTS AND PROFESSIONALS

THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, massage is a viable professional field offering the public valuable health and therapeuƟc services; and
WHEREAS, unless properly regulated, the pracƟce of massage therapy and the operaƟon of massage businesses may be associated with unlawful acƟvity and pose a threat to the quality of life in the local community; and
WHEREAS, state law authorizes the imposiƟon of reasonable local regulaƟons and standards for the operaƟon of massage businesses, including but not limited to, density, minimum educaƟonal and experience requirements, sanitary condiƟons, hours of operaƟon, and other operaƟonal regulaƟons designed to minimize opportuniƟes for illegal acƟviƟes and to ensure protecƟon of the health, safety and welfare of ciƟzens; and WHEREAS the registraƟon and health and safety requirements imposed by this Ordinance are reasonably necessary to protect the health, safety and welfare of the local community.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, DOES ORDAIN AS FOLLOWS:

SECTION 1. RECITALS. The recitals set forth above are true and correct and are hereby adopted as findings in support of this Ordinance as if fully set forth herein.

SECTION 2. SEVERABILITY. If any secƟon, subsecƟon, sentence, clause, phrase, or porƟon of this ordinance is, for any reason, held to be invalid or unconsƟtuƟonal by the decision of any court of competent jurisdicƟon, such decision shall not affect the validity of the remaining porƟons of this ordinance. The City Council hereby declares that it would have adopted this ordinance and each secƟon, subsecƟon, sentence, clause, phrase, or porƟon thereof, irrespecƟve of the fact that any one or more secƟons, subsecƟons, sentences, clauses, phrases, or porƟons thereof may be declared invalid or unconsƟtuƟonal.

SECTION 3. POTENTIAL CONFLICTS. All ordinances, parts of ordinances, City resoluƟons or policies, and the like, in conflict with those secƟons amended or added herein to the Morro Bay Municipal Code, are hereby expressly superseded by this ordinance, with the excepƟon of SecƟon 8.24.010(D) of the Morro Bay Municipal Code.

2 SECTION 4. EFFECTIVE DATE. This ordinance shall be in full force and effect thirty (30) days aŌer its passage and adopƟon.

SECTION 5. NEW CHAPTER 5.65 ADDED TO CODE. Chapter 5.65 is added to Title 5 of the Morro Bay Municipal Code to read as follows:

Chapter 5.65 - MASSAGE ESTABLISHMENTS AND PROFESSIONALS

5.65.010 Purpose and intent.

In enacting this chapter, the City Council recognizes that massage therapy is a professional pursuit which can oƯer the public valuable health and therapeutic services, but unless properly regulated, the practice of massage therapy and the operation of massage businesses may be associated with unlawful activity and pose a threat to the quality of life in the local community. It is the purpose and intent of this chapter to provide for the orderly regulation of establishments providing massage therapy services, and to prevent and discourage the misuse of massage therapy as a front for human traƯicking, prostitution, and related activities in violation of state law, all in the interests of the public health, safety, and welfare, by providing certain minimum building, sanitation, and operation standards for such businesses, and by requiring certain minimum qualifications for the operators and practitioners of such businesses. It is the further intent of this chapter to streamline local massage therapy permitting procedures, while still facilitating and advancing the ethical practice of massage therapy, by relying upon the uniform statewide regulations enacted by the Legislature in 2008 as Business and Professions Code Sections 4600 et seq., known as the Massage Therapy Act, as subsequently amended, and by restricting the commercial practice of massage in the city to those persons duly certified to practice by the California Massage Therapy Council formed pursuant to those statutes.

5.65.020 - Definitions.

For the purpose of this chapter, unless the context clearly requires a diƯerent meaning, the words, terms and phrases hereinafter set forth shall have the meanings given in this section:
"Authorized Massage Professional" means a massage professional who is identified in a permit issued pursuant to this chapter as a person employed or retained by a massage establishment to practice massage.
"CAMTC-Certified Massage Professional" means any individual currently certified by the California Massage Therapy Council as a massage therapist or massage practitioner pursuant to Business and Professions Code Section 4600 et seq.

3 “License” means the business tax certificate to operate a massage establishment as required by this chapter.
"California Massage Therapy Council (CAMTC)" means the California Massage Therapy Council created pursuant to California Business and Professions Code § 4600 et seq.500.5(a).
"Compensation" means the payment, loan, advance, donation, contribution, deposit, exchange, or gift of money or anything of value.
"Department" means the Chief of the Morro Bay Police Department or designee charged with the administration of this chapter.
"Massage," "massage therapy," and/or "bodywork" for purposes of this chapter mean the skillful application of touch, including but not limited to, pressure, stroking, kneading, compression on or movement of the external surfaces of the body by a practitioner to produce increased awareness, relaxation, pain relief, injury rehabilitation, or neuromuscular reeducation.
“Massage establishment” means any establishment having a fixed place of business where any individual, firm, association, partnership, corporation, joint venture, or combination of individuals engages in, conducts, carries on or permits to be engaged in, conducted or carried on, massages, baths, or health treatment involving massage or baths as the principal functions. Massage establishment also means and includes any school or institution of learning, which teaches the theory, ethics, practice, profession or work of massage, including, but not limited to, a “recognized school of massage”. Home-based massage businesses and businesses that provide outcall massage services are also considered to be massage establishments. For purposes of this chapter, the term "massage establishment" may be applied to include establishments which oƯer or advertise themselves as providing "relaxation" or "tanning" where the essential nature of the interaction between the employee and the customer involves "massage" as defined herein. The terms, names or phrases listed on business tax certificate or fictitious name application forms are not necessarily conclusive as to the nature of the business. "Owner" or "massage establishment owner" means any of the following persons:
(1) The sole proprietor of a sole proprietorship operating a massage establishment. (2) Any general partner of a general or limited partnership that owns a massage establishment.
(3) Any person who has a five percent or greater ownership interest in a corporation that owns a massage establishment.

4 (4) Any person who is a member of a limited liability company that owns a massage establishment.
(5) All owners of any other type of business association that owns a massage establishment.
"Operator" or "Massage Establishment Operator" means any person who is an owner or manager of a massage establishment.
"Patron" means an individual on the premises of a massage establishment for the purpose of receiving massage therapy.
"Person" means any individual, firm, association, partnership, corporation, joint venture, limited liability company, or combination of individuals. "Reception and waiting area" means an area immediately inside the main entry door of the massage establishment dedicated to the reception and waiting of patrons or visitors of the massage establishment and which is not a massage therapy room or otherwise used for the provision of massage therapy services.
"Sole proprietorship" means a massage establishment where the owner owns one hundred percent of the business and has one or no other employees or independent contractors. "Visitor" means any individual not retained or employed by the massage establishment and not receiving or waiting to receive massage therapy services, but excluding law enforcement personnel or governmental oƯicials performing governmental business “Massage technician” means any person, who gives, performs or administers to another person a massage for any form of consideration.
“Outcall massage” means the engaging in or carrying on of massage for any consideration at a location other than a massage establishment, which location is designated by a person to whom a permit or license has been issued pursuant to this chapter, or by the customer or client, or by any other person.
“Recognized school of massage” means any school or institution of learning which teaches the theory, ethics, practice, profession or work of massage, which school or institution of learning requires a residence course study of not fewer than two hundred hours, at least one hundred of which must be class hours completed within a consecutive four-month period and the remainder, if any, must be actual massage hours supervised by a certified massage instructor completed within a consecutive twelve-month period; provided, that the entire study program must be completed within an eighteen-month period before the student shall be furnished with a diploma or certificate of graduation from such school or institution of learning following the successful completion of such course of study or

5 learning, and which school -has-been approved pursuant to California Education Code Section 94300 et seq., or if the school is not located in California, has complied with standards commensurate with those required in said Section 94300 et seq. Any school or institution of learning oƯering or allowing correspondence course credit not requiring actual attendance at class, of courses of a massage technician not approved by the California State Department of Education, shall not be deemed a “recognized school of massage.”

5.65.030 – Administration.

The chief of police is authorized to administer this chapter and to promulgate administrative policies and procedures required to implement the regulations set forth in this chapter.

5.65.040 – Business tax certificate required.

The requirements of this chapter are in addition to any business tax certificate and business tax certificate requirements imposed pursuant to Chapter 5.04 of this code.

5.65.050 – Other permits and authorizations required.

The requirements of this chapter are in addition to any permits or authorizations that may be required under other applicable laws including but not limited to the city's building, fire, zoning, and health regulations.

5.65.060 – CAMTC certificate required.

On or after [EƯective Date]March 13, 2026, it is unlawful for any individual to practice massage therapy for compensation within the city unless that individual is a CAMTCcertified massage professional.

5.65.070 – Certifications required – Prohibited conduct (a) Massage establishment. It is unlawful for any person to own, operate or maintain a massage establishment unless all massage technicians employed by the massage establishment hold a current, valid certification from the CAMTC as a massage practitioner or massage therapist or qualify under the limited exceptions described in this chapter. (b) Massage technician. It is unlawful for any person to engage in, or carry on, the business or activities of a massage technician without a certification from the CAMTC as a massage practitioner or massage therapist or qualify under the limited exceptions described in this chapter.

5.65.080 Exemptions.

6 This chapter shall not apply to the following classes of individuals while engaged in the performance of the duties of their respective professions:
(a) Physicians, surgeons, chiropractors, osteopaths, podiatrists, physical therapists, nurses, acupuncturists or any other person licensed to practice any healing art under the provisions of Division 2 (commencing with Section 500) of the Business and Professions Code when engaging in such practice within the scope of his or her license. (b) Trainers of any amateur, semi-professional, or professional athlete or athletic team, so long as such persons do not practice massage therapy as their primary occupation at any location where they provide such services in the city.
(c) Barbers, estheticians, and cosmetologists who are duly licensed under the laws of the State of California, while engaging in practices within the scope of their licenses. (d) Individuals administering massages or health treatments involving massage to persons participating in single occurrence athletic, recreational, or educational events such as road races, track meets, triathlons, educational events, or conferences, provided that the event is open to the public or to a significant segment of the public such as employees of sponsoring or participating corporations, and the massage services are provided at the site of the event during, immediately preceding, or immediately following the event. (e) Somatic practitioners who use no physical touch of any kind at any time in their practice.

5.65.090 - Limited exception from CAMTC certification requirement. (a) The city recognizes that some massage technicians currently practicing in Morro Bay may not meet the current requirements set forth by the CAMTC due to changes in educational or other requirements, particularly changes in requirements concerning hours of schooling, although the person has been in practice for a significant period. The city will therefore allow individuals who were working in Morro Bay prior to the passage of this chapter and meet the requirements of this section to practice massage under this exception without certification from the CAMTC.
(b) Individuals who do not submit an initial application on or before [3090 days from EMarch 13, 2026, for the exception described in this section shall be ineligible to qualify for the exception.
(c) An individual seeking this exception must demonstrate the following to the satisfaction of the Department:
(1) Evidence that he or she worked as a massage therapist or massage practitioner and held a W2 or business tax certificate in good standing under Section 5.04.330

7 on an ongoing basis for at least five years prior to [EƯective Date]March 13, 2026; and
(2) Evidence that he or she has certification or proof of training in the field of massage from a school or another entity comparable to the CAMTC and has been working as a massage therapist or massage practitioner for a period of at least five years; and
(3) Evidence that he or she attempted to obtain certification from the CAMTC but was provided a letter advising of additional requirements of schooling, hours, etc., despite existing training and experience, he or she could not denied and the reasons for the denial show that despite existing training and experience, he or she was not able to qualify for certification from CAMTC; and
(4) Compliance with all requirements under this chapter for massage establishment owners that are not certified by the CAMTC, including, but not limited to, the background check described in Section 5.65.110 of this chapter. (d) An individual granted an exception from the CAMTC certification requirement is required to display, in the same manner this chapter requires the display of CAMTC certification, a statement from the city showing that the person met the requirements of this exception. (e) The city may establish a non-refundable fee to recover costs associated with initial applications and annual renewals.
(f) This section shall remain in eƯect only until February 1, 20287. All massage practitioners must comply with Section 5.65.060 beginning February 1, 20287.

5.65.100 - Massage establishment license required.

It is unlawful for any person to engage in, conduct or carry on, or to permit to be engaged in, conducted or carried on, in or upon any premises in the city, the business of a massage establishment without the license required by this chapter.

5.56.110 – License application background check- owner.

The owners of the massage establishment shall file an application for a permit on a form provided by the Department. The application shall be accompanied by the fee established by the city's fee schedule. The application shall include the following information:
(a) The name, address, and telephone number of the massage establishment. (b) The name, date of birth, state issued identification number, residence address and telephone number, and business address and telephone number of each owner of the massage establishment.

8 (c) The form of business under which the applicant will be conducting the massage establishment, i.e., corporation, general or limited partnership, limited liability company, or other form. If the applicant is a corporation, the name of the corporation shall be set forth exactly as shown in its articles of incorporation, together with the names and residence addresses of each of its oƯicers, directors, and each shareholder holding more than ten percent of the stock of the corporation. If the applicant is a general or limited partnership, the application shall set forth the name and residence address of each of the partners, including limited partners. If one or more of the partners is a corporation, the provisions of this section pertaining to a corporate applicant shall apply. If the applicant is a limited liability company, the application shall set forth the name and residence address of each of the members. If one or more of the members is a partnership, limited liability company, or corporation, the provisions of this section pertaining to a partnership, limited liability company, or corporate applicant shall apply, as applicable. (d) The name, address, and telephone number of the owner of the real property upon, in, or from which the certified massage establishment is to be operated. In the event the applicant is not the legal owner of the property, the application shall be accompanied by a copy of any written lease between the applicant and the property owner authorizing use of the premises for a massage establishment, or, alternatively, if there is no written lease, then a written, notarized acknowledgment from the property owner that the property owner has been advised that a massage establishment will be operated by the applicant upon, in, or from the property owner's property.
(e) A description of the proposed massage establishment, including the type of treatments to be administered.
(f) The name of each individual who the massage establishment employs or retains to perform massage therapy for compensation, whether on or oƯ the massage establishment premises.
(g) The name of each individual who is regularly employed or retained by the massage establishment to perform services on the premises other than massage therapy, and the nature of their services.
(h) For each individual who the massage establishment does or will employ or retain to perform massage therapy for compensation, whether on or oƯ the massage establishment premises, a copy of that individual’s exception under Section 5.65.090 or that individual's current certification from the CAMTC as a certified massage practitioner or certified massage therapist, and a copy of his or her current CAMTC issued identification card.

9 (i) For each owner of the massage establishment who is a CAMTC-certified massage professional, a copy of his or her current certification from the CAMTC as a certified massage practitioner or as a certified massage therapist and a copy of his or her current CAMTC-issued identification card.
(j) For each owner of the massage establishment who is not a CAMTC-certified massage professional, the following information:
(1) Whether any owner of the massage establishment has within the five years immediately preceding the date of application been convicted of any felony in any state.
(2) Whether any owner of the massage establishment is currently required to register under the provisions of Section 290 of the California Penal Code. (3) The business, occupation, and employment history of each owner of the massage establishment for five years preceding the date of application, and the inclusive dates of same.
(4) One set of fingerprints to be taken at the permit authority, and any required fee for such fingerprinting shall be paid by the applicant. (k) Whether any license or permit or certificate has ever been issued to the applicant by any jurisdiction under the provisions of any ordinance or statute governing massage or somatic practice, and as to any such license or permit or certificate, the name and address of the issuing authority, the eƯective dates of such license or permit or certificate, whether such license or permit was ever suspended, revoked, withdrawn, or denied; and copies of any documentary materials relating to such suspension, revocation, withdrawal, or denial. (l) Such other information as may be required by the permit authority to determine compliance with any other eligibility requirements for issuance of the permit as specified by federal, state, or local law.
(m) A statement that within the last five years the applicant has not failed to comply with a final court order or administrative action of an investigatory agency finding a violation of applicable federal, state and local wage and hour laws, including, but not limited to, the Federal Fair Labor Standards Act, the California Labor Code, and any local minimum wage ordinance or prevailing wage requirements. For purposes of this subsection, a final court order or administrative action is one as to which there is no pending appeal and the time for filing an appeal has passed.

5.65.120 Massage establishment license, application, fee relocation.

10 (a) Any application for a license to operate a massage establishment shall be accompanied by a fee as set by resolution of the council. The application fee shall be used to defray in whole or in part, the cost of the investigation and report by the chief of police and is not made in lieu of any other fees or taxes required under this code. In addition, the applicant shall also pay all applicable fees to the county health oƯicer according to the rate schedule of the county then in eƯect, and to the state all applicable fees necessary for the processing of applicant information.
(b) A license to operate a massage establishment shall remain valid as long as the license holder maintains a continual business operation as evidenced by the possession of a valid business tax certificate. Failure to timely renew the business tax certificate shall cause the massage establishment license to become invalid and the license holder must complete a new massage license application accompanied by a fee as set by resolution of the council.

If a licensed establishment relocates or opens an additional business location, an application for such purpose shall be required and accompanied by an administrative fee as set by resolution of the council.

5.65.130 Additional restrictions and requirements.
(a) Before operating a massage establishment in the city, massage establishment owners must comply with all applicable codes adopted by the city, including, without limitation, the building, signage, electrical, and plumbing codes.
(b) Hours of operation. Massage establishments shall only oƯer massage services between the hours of 8:00 a.m. and 10:00 p.m. and no patrons for massage services shall be allowed on the premises after 10:00 p.m. or before 8:00 a.m. (c) Density Limitations.
(1) The maximum allowable number of massage establishments is twentyten. No new applications for massage establishments will be accepted until the number of active licenses drop below twentyten.
(2) No massage establishment shall locate within five hundred feet from another massage establishment. The distance shall be measured as the horizontal distance measured in a straight line from the property line of one site to the property line of another site.
(3) Applicants who wish to apply for massage establishment licenses shall be issued permits on a first-come, first-served basis, provided the proposed massage establishment does not violate the density limitations herein. Applicants who are

11 not eligible for a license due to these density limitations shall be placed on a chronologically maintained waiting list.
(4) Massage establishments lawfully permitted by the city prior to December 1, 2025, and in good standing with the city on the eƯective date of this chapter, are not subject to the density limitations herein, provided they obtain a massage establishment license pursuant to this chapter within six months of its eƯective date. The sale or transfer of any interest in a massage establishment which interest would be reported as required in this chapter upon application for a massage establishment license, shall result in the massage establishment becoming subject to the density limitations herein.
(d) It is unlawful for any person to engage in, perform, conduct or carry on, or to permit to be engaged in, performed, conducted or carried on, outcall massage or baths or health treatments involving massage or baths for any consideration or under such circumstances that it is reasonably expected that the person for whom the treatment is provided or some third person on his or her behalf will pay money or give any other consideration or gratuity therefor at any hotel, motel, or other residential structure or facility designed and operated primarily for transient occupancy unless such outcall massage service shall first be authorized in writing by a physician, surgeon, chiropractor, or osteopath duly licensed to practice in the state. It is unlawful to operate an outcall massage service by use of a telephone answering device.
(de) Any and all signage advertising or promoting the business or location shall comply with provisions set forth in Morro Bay Municipal Code Chapter 17.29.

5.65.140 Massage establishment license grounds for denial.

The Chief of Police shall either issue or deny a permit within 60 calendar days following receipt of a completed application for an establishment permit. The Chief of Police may extend the time period to act on a permit application by an additional 30 days upon providing written notice of the extension to the applicant. In approving or denying a permit, the Chief of Police shall consider the recommendations of City oƯicials investigating the application, along with any other relevant information.

The chief of police may deny an application for a massage establishment permit on any of the following grounds:
(a) The massage establishment, as proposed by the applicant, would not comply with the requirements of this chapter.

12 (b) The massage establishment, as proposed by the applicant, would not comply with any applicable law, including, but not limited to the city's building, fire, zoning, and health regulations.
(c) The applicant has knowingly made any false, misleading or fraudulent statement of material fact in the application for a massage establishment permit. (d) Any owner of the massage establishment, within five years immediately preceding the date of filing of the application, has been convicted in a court of competent jurisdiction of any oƯense that relates directly to the operation of a massage establishment whether as a massage establishment owner or operator or as a person practicing massage for compensation, or as an employee of either; or has at any time been convicted in a court of competent jurisdiction of any felony the commission of which occurred on the premises of a massage establishment.
(e) Any owner of the massage establishment is currently required to register under the provisions of Section 290 of the California Penal Code. (f) Any owner of the massage establishment, within five years of the date of application, has been convicted in a court of competent jurisdiction of any violation of Sections 266, 266a, 266e, 266f, 266g, 266h, 266i, 266j, 315, 316, 318, 647(b), or 653.22 of the California Penal Code, or conspiracy or attempt to commit any such oƯense, or any oƯense in a jurisdiction outside of the State of California that is the equivalent of any of the aforesaid oƯenses.
(g) Any owner of the massage establishment has been subjected to a permanent injunction against the conducting or maintaining of a nuisance pursuant to Sections 11225 through 11235 of the California Penal Code, or any similar provision of law in a jurisdiction outside the State of California.
(h) Any owner of the massage establishment, within five years of the date of application, and as established by clear and convincing evidence, has engaged in acts prohibited under California Penal Code Sections 266, 266a, 266e, 266f, 266g, 266h, 266i, 266j, 315, 316, 318, 647(b), or 653.22.
(i) Any owner of the massage establishment is an individual who has not attained the age of eighteen years.
(j) Any owner of the massage establishment, within five years immediately preceding the date of filing of the application, has had a permit or license or certificate to practice massage for compensation or to own and/or operate a massage establishment revoked or denied in any jurisdiction.

13 (k) Any owner of the massage establishment currently owns or operates a massage establishment in the city of Morro Bay that is not in good standing due to the existence of uncorrected violations or unpaid fines or fees.
(l) Within the last five years, the applicant has failed to comply with a final court order or administrative action of an investigatory agency finding a violation of applicable federal, state and local wage and hour laws, including, but not limited to, the Federal Fair Labor Standards Act, the California Labor Code, and any local minimum wage ordinance or prevailing wage requirements. For purposes of this subsection, a final court order or administrative action is one as to which there is no pending appeal and the time for filing an appeal has passed.

5.65.150 Massage establishment - facilities and operations requirements.

All massage establishments shall comply with the following facilities and operation requirements:
(a) Massage establishments shall comply with all code requirements. (b) Closed cabinets or other cupboard space shall be provided for the storage of clean linen. Approved receptacles shall be provided for the storage of all soiled linen and paper towels.
(c) The walls in all rooms where water or steam baths are given shall have a washable, mold-resistant surface.
(d) All lavatories or washbasins shall be provided with running water, disinfectant, soap and single service towels.
(e) Security deposit facilities capable of being locked by the patron or a security bag that may be carried by the patron shall be available for the protection of the valuables of the patrons.
(f) Every portion of a massage establishment including appliances, apparatus and personnel, shall be kept clean and operated in a sanitary condition. (g) All massage establishments shall be equipped with clean and sanitary towels, sheets and linens of suƯicient quantity. Towels, sheets and linens shall not be used by more than one person. Reuse of such linen is prohibited unless the same has first been laundered Heavy white paper may be substituted for sheets: provided, that such paper is used once for each person and then discarded in a sanitary receptacle. (h) All walls, ceilings, floors, pools, showers, bathtubs, steam rooms and other physical facilities for the establishment must be in good repair and maintained in a clean and

14 sanitary condition. Wet and dry heat rooms, steam and vapor rooms, or steam or vapor cabinets, shower compartments, and toilet rooms shall be thoroughly cleaned and disinfected each day the business is in operation. Bathtubs shall be thoroughly cleaned and disinfected after each use.

1. Disinfecting agents and sterilizing equipment shall be provided for any instruments used in performing acts of massage and said instruments shall be disinfected and sterilized after each use.
(i) Pads used on massage tables shall be covered with durable, washable plastic or other acceptable waterproof material.
(j) To protect patrons from potential health and sanitary hazards, all employees, and massage technicians shall be clean and shall wear clean outer garments when performing services on the premises, No massage technician shall, in the course of administering any massage, bath or health treatment, expose his or her genitals or private parts. No massage technician shall, in the course of administering any massage, bath or health treatment, make physical contact with the genitals or private parts of any other person in violation of CAMTC guidelines.
(k) A listing of each service oƯered, the price thereof, and the minimum length of time such service shall be performed shall be made available on request. No services shall be performed and no sum shall be charged for any services other than those listed.

Arrangements shall be made for all services prior to the performance of any service. No massage technician shall solicit or oƯer to perform for any patron any additional service after such technician has commenced the performance of any service for such patron. (l) No alcoholic beverages shall be sold, served or furnished on the premises of any massage establishment.
(m) No massage establishment shall be open for business between the hours of 10 p.m. of one day and 8 a.m. of the following day.
(n) Minimum lighting shall be provided in accordance with the Uniform Building Code, and in addition, at least one artificial light of not less than forty watts shall be provided in each room or enclosure when massage is performed on patrons. (o) Minimum ventilation shall be provided in accordance with the Uniform Building Code. (p) Proof of compliance with all applicable provisions of this code shall be provided. (q) Reception and Waiting Areas

15 1. One ( 1) main entry door shall be provided for Patron entry to the Massage Establishment, which shall open directly into the interior Reception and Waiting Area of the Massage Establishment. Except during emergency egress situations, all Patrons, and any persons other than Individuals employed or retained by the Massage Establishment shall be required to enter and exit through the main entry door. The main entry door shall remain unlocked during business hours when the Establishment is open for business or when Patrons are present unless the Massage Establishment is a business entity owned by a sole proprietor and there is no additional staƯ available to assure security;

2. No Massage Establishment located in a building or structure with exterior windows fronting a public street, highway, parking area or walkway ( including interior common areas and hallways) shall, during business hours, block visibility into the interior Reception and Waiting Area through the use of curtains, closed blinds, tints, signage, or any other material that obstructs, blurs, or unreasonably darkens the view into the premises;

3. For the purpose of this subsection, there is an irrebuttable presumption that visibility is impermissibly blocked if more than 15 percent of the square footage of windows or more than 10 percent of the square footage of clear doors is covered so as to obstruct views of the interior Reception and Waiting Area.

5.65.160 – Massage establishment prohibited conduct.
(a) It is unlawful for any person to operate a massage establishment within the city without first obtaining a massage establishment permit from the Department. (b) On or after [EƯective Date]March 13, 2026, it is unlawful for a massage establishment operator to employ or retain any person to practice massage therapy for compensation, or to allow any person to perform massage therapy for compensation on the premises of a massage establishment, unless that person is a CAMTC-certified massage professional and unless that person is identified as an authorized massage professional on the permit issued pursuant to this chapter. For purposes of this chapter, a massage establishment operator "employs or retains" a person to practice massage therapy for compensation when:
(1) That person is a directly paid employee of the massage establishment; or (2) That person's association with a massage establishment is that of an independent contractor who receives compensation for massage therapy provided to patrons of the massage establishment; or

16 (3) That person receives a referral of patrons from the massage establishment and, at any time before or after the referral, arranges in any way for compensation to flow to the massage establishment operator.
(c) It is unlawful for a massage establishment to operate under any name or conduct business under any designation not specified in the massage establishment permit issued pursuant to this chapter.
(d) It is unlawful for a massage establishment to continue to operate following the sale or transfer of any interest in the massage establishment to a person who was not identified as an owner in the massage establishment permit application.

5.65.170 Massage establishment—Record keeping requirements.

Every person operating a massage establishment within the city shall keep a record of the date and hour of each treatment, the name and address of the patron, the address of the place where the service was rendered, and the name of the technician administering such treatment, The records shall be open to inspection by oƯicials charged with the enforcement of these provisions for the purposes of law enforcement and for no other purpose. The information furnished or secured as a result of any such inspection shall be confidential. Any unauthorized disclosure or use of such information by any city oƯicer or employee shall be subject to the penalty provisions of this chapter, in addition to any other penalties provided by law. The records required by this section shall be maintained for a period of two years.

5.65.180 Massage establishment - business name.

No person licensed to operate a massage establishment shall operate under any name or conduct business under any designation not specified in the license.

5.65.185 Massage therapist – certificated name.

No certificated massage therapist shall operate under another name or alias that is not listed on their CAMTC certification or local license or permit or certificate.

5.65.190 Display of permit.

Any owner of a massage establishment must display the CAMTC certificates for all massage technicians prominently in a conspicuous place, capable of being viewed by customers or city representatives, at every location where massage is performed or conducted.

Any persons operating under the limited exception described in Section 5.65.090 must display the statement from the city documenting their exemption from the CAMTC

17 certification prominently in a conspicuous place capable of being viewed by customers or city representatives.

5.65.200 Massage establishment - Sale or transfer of interest.

The sale or transfer of any interest in a massage establishment which interest would be reported as required in this chapter upon application for a massage establishment license, shall be reported to the chief of police within ten days of such sale or transfer. The chief of police shall investigate any person receiving any interest in a massage establishment as a result of such sale or transfer and if such person satisfies the requirements relating to massage establishment license applicants the existing license shall be endorsed to include such person. A fee established by resolution of the council shall be paid to the city for the investigation by the chief of police necessitated by each such sale or transfer. Any such establishment which intends to in any way transfer ownership or alter or change the nature of any such massage establishment on or after the eƯective date of this chapter shall comply with the provisions of this chapter prior to such transfer, alteration or change.

5.65.210 Investigation by oƯicials - Authority.

Any and all investigating oƯicials of the city and county shall have the right to enter massage establishments from time to time during regular business hours to make reasonable inspections, to observe and enforce compliance with building, fire, electrical, plumbing, or health regulations, or other provisions of this chapter. A warrant shall be obtained whenever required by law.

5.65.220 Investigation by oƯicials - Report.

Whenever any investigating oƯicial of the city makes an inspection of a massage establishment he or she shall record his or her findings on a report and shall give notice of his or her findings by furnishing a copy of the inspection report to the licensee or permittee.

5.65.230 Notice of violation - Issuance contents.

Whenever any investigating oƯicial of the city makes an inspection of a massage establishment and finds that any provision of this chapter has been violated, he or she shall give notice of such violation by means of a report or other written notice. In any such notification, the investigating oƯicial shall:
(a) Set forth the specific violation or violations found; (b) Establish a specific and reasonable period of time for the correction of the violation or violations. If the investigating oƯicial determines that the violation or violations are minor in nature, the investigating oƯicial may issue a warning to the licensee or permittee, that any

18 further violation of this chapter may result in the filing of a complaint for revocation or suspension of the license or permit;
(c) State that failure to comply with any notice issued in accordance with the provisions of this chapter may result in the city revoking or suspending the license or permit.

5.65.240 Massage establishment - Revocation or suspension of license.

Any license issued for a massage establishment may be revoked or suspended by the chief of police where it is found that:
(a) The licensee has violated any provision of this chapter or state massage therapy act business and professional code 4621: or
(b) The licensee has failed to comply with one or more of the facility and operations requirements of Section 5.65.150; or
(c) The licensee has engaged in fraud, misrepresentation or false statement in conducting the massage establishment: or
(d) The licensee has failed to correct a violation after notice to do so pursuant to Section

5.65.230; or
(e) The licensee has continued to operate the massage establishment after the license has been suspended: or
(f) The licensee has allowed a person to work as a massage technician who:

1. Does not have a valid permit: or

2. Has engaged in conduct or has been convicted of any oƯense described in subsections (b) and (c) of Section 5.65.140 where the licensee has active or constructive knowledge of such conduct or conviction: or (g) Licensee is a person who is engaged in conduct or has been convicted of an oƯense described in subsections (b) and (c) of Section 5.65.140.

5.65.250 Massage technician - Revocation or suspension of permit.

Any massage technician permit may be revoked or suspended by the chief of police where it is found that:
(a) The permittee has violated any provision of this chapter: or (b) The permittee is a person who has engaged in conduct described in subsections (b) or (c) of Section 5.65.140; or

19 (c) The permittee has engaged in conduct which would constitute an oƯense which relates directly to the permittee’s employment or performance as a massage technician or has engaged in conduct which would constitute a felony, the commission of which occurred on the premises of a massage establishment; or has been convicted by a court of competent jurisdiction of any such oƯense or felony; or
(d) The permittee has continued to function as a massage technician after the permit has been suspended: or
(e) The permittee has failed to correct a violation found pursuant to Section 5.65.230

5.65.260 Appeals—Hearing.

In the event a permit or license application has been denied, the applicant may appeal to the council pursuant to the procedures set forth in Section 5.04.210 of this code. Any licensee or permittee whose license or permit has been suspended or revoked may appeal to the council pursuant to the procedure set forth in Section 5.04.210 of this code.

SECTION 6. CERTIFICATION. The City Clerk shall cerƟfy as to the passage and adopƟon 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 meeƟng of the City Council of Morro Bay, held on the 27th day of January 2026, by moƟon of Mayor Wixom and seconded by Council Member Luffee.

PASSED AND ADOPTED on the ______ day of __________2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSE:
____________________________
CARLA WIXOM, Mayor
ATTEST:
________________________________
DANA SWANSON, City Clerk
APPROVED AS TO FORM:
_________________________________
BRIAN J. STACK, City AƩorney

20 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 676 was duly adopted by the City Council of the City Morro Bay at a regular meeting of said Council on the ____ day of ________ 2026 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 aƯixed the oƯicial seal of the City of Morro Bay, California, this ______ day of _______________, 2026.

DANA SWANSON, City Clerk

1 ORDINANCE NO. 676

AN ORDINANCE OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA
ADDING CHAPTER 5.65 TO TITLE 5 OF THE MORRO BAY MUNICIPAL

CODE REGULATING MASSAGE ESTABLISHMENTS AND PROFESSIONALS

THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, massage is a viable professional field offering the public valuable health and therapeutic services; and
WHEREAS, unless properly regulated, the practice of massage therapy and the operation of massage businesses may be associated with unlawful activity and pose a threat to the quality of life in the local community; and
WHEREAS, state law authorizes the imposition of reasonable local regulations and standards for the operation of massage businesses, including but not limited to, density, minimum educational and experience requirements, sanitary conditions, hours of operation, and other operational regulations designed to minimize opportunities for illegal activities and to ensure protection of the health, safety and welfare of citizens; and WHEREAS the registration and health and safety requirements imposed by this Ordinance are reasonably necessary to protect the health, safety and welfare of the local community.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, DOES ORDAIN AS FOLLOWS:

SECTION 1. RECITALS. The recitals set forth above are true and correct and are hereby adopted as findings in support of this Ordinance as if fully set forth herein.

SECTION 2. 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 3. POTENTIAL CONFLICTS. All ordinances, parts of ordinances, City resolutions or policies, and the like, in conflict with those sections amended or added herein to the Morro Bay Municipal Code, are hereby expressly superseded by this ordinance, with the exception of Section 8.24.010(D) of the Morro Bay Municipal Code.

2 SECTION 4. EFFECTIVE DATE. This ordinance shall be in full force and effect thirty (30) days after its passage and adoption.

SECTION 5. NEW CHAPTER 5.65 ADDED TO CODE. Chapter 5.65 is added to Title 5 of the Morro Bay Municipal Code to read as follows:

Chapter 5.65 - MASSAGE ESTABLISHMENTS AND PROFESSIONALS

5.65.010 Purpose and intent.

In enacting this chapter, the City Council recognizes that massage therapy is a professional pursuit which can offer the public valuable health and therapeutic services, but unless properly regulated, the practice of massage therapy and the operation of massage businesses may be associated with unlawful activity and pose a threat to the quality of life in the local community. It is the purpose and intent of this chapter to provide for the orderly regulation of establishments providing massage therapy services, and to prevent and discourage the misuse of massage therapy as a front for human trafficking, prostitution, and related activities in violation of state law, all in the interests of the public health, safety, and welfare, by providing certain minimum building, sanitation, and operation standards for such businesses, and by requiring certain minimum qualifications for the operators and practitioners of such businesses. It is the further intent of this chapter to streamline local massage therapy permitting procedures, while still facilitating and advancing the ethical practice of massage therapy, by relying upon the uniform statewide regulations enacted by the Legislature in 2008 as Business and Professions Code Sections 4600 et seq., known as the Massage Therapy Act, as subsequently amended, and by restricting the commercial practice of massage in the city to those persons duly certified to practice by the California Massage Therapy Council formed pursuant to those statutes.

5.65.020 - Definitions.

For the purpose of this chapter, unless the context clearly requires a different meaning, the words, terms and phrases hereinafter set forth shall have the meanings given in this section:
"Authorized Massage Professional" means a massage professional who is identified in a permit issued pursuant to this chapter as a person employed or retained by a massage establishment to practice massage.
"CAMTC-Certified Massage Professional" means any individual currently certified by the California Massage Therapy Council as a massage therapist or massage practitioner pursuant to Business and Professions Code Section 4600 et seq. “License” means the business tax certificate to operate a massage establishment as required by this chapter.

3 "California Massage Therapy Council (CAMTC)" means the California Massage Therapy Council created pursuant to California Business and Professions Code § 4600 et seq.500.5(a).
"Compensation" means the payment, loan, advance, donation, contribution, deposit, exchange, or gift of money or anything of value.
"Department" means the Chief of the Morro Bay Police Department or designee charged with the administration of this chapter.
"Massage," "massage therapy," and/or "bodywork" for purposes of this chapter mean the skillful application of touch, including but not limited to, pressure, stroking, kneading, compression on or movement of the external surfaces of the body by a practitioner to produce increased awareness, relaxation, pain relief, injury rehabilitation, or neuromuscular reeducation.
“Massage establishment” means any establishment having a fixed place of business where any individual, firm, association, partnership, corporation, joint venture, or combination of individuals engages in, conducts, carries on or permits to be engaged in, conducted or carried on, massages, baths, or health treatment involving massage or baths as the principal functions. Massage establishment also means and includes any school or institution of learning, which teaches the theory, ethics, practice, profession or work of massage, including, but not limited to, a “recognized school of massage”.

Home-based massage businesses and businesses that provide outcall massage services are also considered to be massage establishments. For purposes of this chapter, the term "massage establishment" may be applied to include establishments which offer or advertise themselves as providing "relaxation" or "tanning" where the essential nature of the interaction between the employee and the customer involves "massage" as defined herein. The terms, names or phrases listed on business tax certificate or fictitious name application forms are not necessarily conclusive as to the nature of the business.
"Owner" or "massage establishment owner" means any of the following persons:
(1) The sole proprietor of a sole proprietorship operating a massage establishment.
(2) Any general partner of a general or limited partnership that owns a massage establishment.
(3) Any person who has a five percent or greater ownership interest in a corporation that owns a massage establishment.
(4) Any person who is a member of a limited liability company that owns a massage establishment.

4 (5) All owners of any other type of business association that owns a massage establishment.
"Operator" or "Massage Establishment Operator" means any person who is an owner or manager of a massage establishment.
"Patron" means an individual on the premises of a massage establishment for the purpose of receiving massage therapy.
"Person" means any individual, firm, association, partnership, corporation, joint venture, limited liability company, or combination of individuals. "Reception and waiting area" means an area immediately inside the main entry door of the massage establishment dedicated to the reception and waiting of patrons or visitors of the massage establishment and which is not a massage therapy room or otherwise used for the provision of massage therapy services.
"Sole proprietorship" means a massage establishment where the owner owns one hundred percent of the business and has one or no other employees or independent contractors.
"Visitor" means any individual not retained or employed by the massage establishment and not receiving or waiting to receive massage therapy services, but excluding law enforcement personnel or governmental officials performing governmental business “Massage technician” means any person, who gives, performs or administers to another person a massage for any form of consideration.
“Outcall massage” means the engaging in or carrying on of massage for any consideration at a location other than a massage establishment, which location is designated by a person to whom a permit or license has been issued pursuant to this chapter, or by the customer or client, or by any other person. “Recognized school of massage” means any school or institution of learning which teaches the theory, ethics, practice, profession or work of massage, which school or institution of learning requires a residence course study of not fewer than two hundred hours, at least one hundred of which must be class hours completed within a consecutive four-month period and the remainder, if any, must be actual massage hours supervised by a certified massage instructor completed within a consecutive twelvemonth period; provided, that the entire study program must be completed within an eighteen-month period before the student shall be furnished with a diploma or certificate of graduation from such school or institution of learning following the successful completion of such course of study or learning, and which school -has-been approved pursuant to California Education Code Section 94300 et seq., or if the school is not located in California, has complied with standards commensurate with those required in

5 said Section 94300 et seq. Any school or institution of learning offering or allowing correspondence course credit not requiring actual attendance at class, of courses of a massage technician not approved by the California State Department of Education, shall not be deemed a “recognized school of massage.”

5.65.030 – Administration.

The chief of police is authorized to administer this chapter and to promulgate administrative policies and procedures required to implement the regulations set forth in this chapter.

5.65.040 – Business tax certificate required.

The requirements of this chapter are in addition to any business tax certificate and business tax certificate requirements imposed pursuant to Chapter 5.04 of this code.

5.65.050 – Other permits and authorizations required.

The requirements of this chapter are in addition to any permits or authorizations that may be required under other applicable laws including but not limited to the city's building, fire, zoning, and health regulations.

5.65.060 – CAMTC certificate required.

On or after March 13, 2026, it is unlawful for any individual to practice massage therapy for compensation within the city unless that individual is a CAMTC-certified massage professional.

5.65.070 – Certifications required – Prohibited conduct (a) Massage establishment. It is unlawful for any person to own, operate or maintain a massage establishment unless all massage technicians employed by the massage establishment hold a current, valid certification from the CAMTC as a massage practitioner or massage therapist or qualify under the limited exceptions described in this chapter.
(b) Massage technician. It is unlawful for any person to engage in, or carry on, the business or activities of a massage technician without a certification from the CAMTC as a massage practitioner or massage therapist or qualify under the limited exceptions described in this chapter.

5.65.080 Exemptions.

This chapter shall not apply to the following classes of individuals while engaged in the performance of the duties of their respective professions:
(a) Physicians, surgeons, chiropractors, osteopaths, podiatrists, physical therapists, nurses, acupuncturists or any other person licensed to practice any healing art under

6 the provisions of Division 2 (commencing with Section 500) of the Business and Professions Code when engaging in such practice within the scope of his or her license. (b) Trainers of any amateur, semi-professional, or professional athlete or athletic team, so long as such persons do not practice massage therapy as their primary occupation at any location where they provide such services in the city. (c) Barbers, estheticians, and cosmetologists who are duly licensed under the laws of the State of California, while engaging in practices within the scope of their licenses. (d) Individuals administering massages or health treatments involving massage to persons participating in single occurrence athletic, recreational, or educational events such as road races, track meets, triathlons, educational events, or conferences, provided that the event is open to the public or to a significant segment of the public such as employees of sponsoring or participating corporations, and the massage services are provided at the site of the event during, immediately preceding, or immediately following the event.
(e) Somatic practitioners who use no physical touch of any kind at any time in their practice.

5.65.090 - Limited exception from CAMTC certification requirement. (a) The city recognizes that some massage technicians currently practicing in Morro Bay may not meet the current requirements set forth by the CAMTC due to changes in educational or other requirements, particularly changes in requirements concerning hours of schooling, although the person has been in practice for a significant period.

The city will therefore allow individuals who were working in Morro Bay prior to the passage of this chapter and meet the requirements of this section to practice massage under this exception without certification from the CAMTC. (b) Individuals who do not submit an initial application on or before [90 days from March 13, 2026, for the exception described in this section shall be ineligible to qualify for the exception.
(c) An individual seeking this exception must demonstrate the following to the satisfaction of the Department:
(1) Evidence that he or she worked as a massage therapist or massage practitioner and held a W2 or business tax certificate in good standing under Section 5.04.330 on an ongoing basis for at least five years prior to March 13, 2026; and
(2) Evidence that he or she has certification or proof of training in the field of massage from a school or another entity comparable to the CAMTC and has

7 been working as a massage therapist or massage practitioner for a period of at least five years; and
(3) Evidence that he or she attempted to obtain certification from the CAMTC but was provided a letter advising of additional requirements of schooling, hours, etc., despite existing training and experience, he or she could not qualify for certification from CAMTC; and
(4) Compliance with all requirements under this chapter for massage establishment owners that are not certified by the CAMTC, including, but not limited to, the background check described in Section 5.65.110 of this chapter. (d) An individual granted an exception from the CAMTC certification requirement is required to display, in the same manner this chapter requires the display of CAMTC certification, a statement from the city showing that the person met the requirements of this exception.
(e) The city may establish a non-refundable fee to recover costs associated with initial applications and annual renewals.
(f) This section shall remain in effect only until February 1, 2028. All massage practitioners must comply with Section 5.65.060 beginning February 1, 2028.

5.65.100 - Massage establishment license required.

It is unlawful for any person to engage in, conduct or carry on, or to permit to be engaged in, conducted or carried on, in or upon any premises in the city, the business of a massage establishment without the license required by this chapter.

5.56.110 – License application background check- owner.

The owners of the massage establishment shall file an application for a permit on a form provided by the Department. The application shall be accompanied by the fee established by the city's fee schedule. The application shall include the following information:
(a) The name, address, and telephone number of the massage establishment. (b) The name, date of birth, state issued identification number, residence address and telephone number, and business address and telephone number of each owner of the massage establishment.
(c) The form of business under which the applicant will be conducting the massage establishment, i.e., corporation, general or limited partnership, limited liability company, or other form. If the applicant is a corporation, the name of the corporation shall be set forth exactly as shown in its articles of incorporation, together with the names and residence addresses of each of its officers, directors, and each shareholder holding

8 more than ten percent of the stock of the corporation. If the applicant is a general or limited partnership, the application shall set forth the name and residence address of each of the partners, including limited partners. If one or more of the partners is a corporation, the provisions of this section pertaining to a corporate applicant shall apply.

If the applicant is a limited liability company, the application shall set forth the name and residence address of each of the members. If one or more of the members is a partnership, limited liability company, or corporation, the provisions of this section pertaining to a partnership, limited liability company, or corporate applicant shall apply, as applicable.
(d) The name, address, and telephone number of the owner of the real property upon, in, or from which the certified massage establishment is to be operated. In the event the applicant is not the legal owner of the property, the application shall be accompanied by a copy of any written lease between the applicant and the property owner authorizing use of the premises for a massage establishment, or, alternatively, if there is no written lease, then a written, notarized acknowledgment from the property owner that the property owner has been advised that a massage establishment will be operated by the applicant upon, in, or from the property owner's property. (e) A description of the proposed massage establishment, including the type of treatments to be administered.
(f) The name of each individual who the massage establishment employs or retains to perform massage therapy for compensation, whether on or off the massage establishment premises.
(g) The name of each individual who is regularly employed or retained by the massage establishment to perform services on the premises other than massage therapy, and the nature of their services.
(h) For each individual who the massage establishment does or will employ or retain to perform massage therapy for compensation, whether on or off the massage establishment premises, a copy of that individual’s exception under Section 5.65.090 or that individual's current certification from the CAMTC as a certified massage practitioner or certified massage therapist, and a copy of his or her current CAMTC issued identification card.
(i) For each owner of the massage establishment who is a CAMTC-certified massage professional, a copy of his or her current certification from the CAMTC as a certified massage practitioner or as a certified massage therapist and a copy of his or her current CAMTC-issued identification card.
(j) For each owner of the massage establishment who is not a CAMTC-certified massage professional, the following information:

9 (1) Whether any owner of the massage establishment has within the five years immediately preceding the date of application been convicted of any felony in any state.
(2) Whether any owner of the massage establishment is currently required to register under the provisions of Section 290 of the California Penal Code. (3) The business, occupation, and employment history of each owner of the massage establishment for five years preceding the date of application, and the inclusive dates of same.
(4) One set of fingerprints to be taken at the permit authority, and any required fee for such fingerprinting shall be paid by the applicant. (k) Whether any license or permit or certificate has ever been issued to the applicant by any jurisdiction under the provisions of any ordinance or statute governing massage or somatic practice, and as to any such license or permit or certificate, the name and address of the issuing authority, the effective dates of such license or permit or certificate, whether such license or permit was ever suspended, revoked, withdrawn, or denied; and copies of any documentary materials relating to such suspension, revocation, withdrawal, or denial.
(l) Such other information as may be required by the permit authority to determine compliance with any other eligibility requirements for issuance of the permit as specified by federal, state, or local law.
(m) A statement that within the last five years the applicant has not failed to comply with a final court order or administrative action of an investigatory agency finding a violation of applicable federal, state and local wage and hour laws, including, but not limited to, the Federal Fair Labor Standards Act, the California Labor Code, and any local minimum wage ordinance or prevailing wage requirements. For purposes of this subsection, a final court order or administrative action is one as to which there is no pending appeal and the time for filing an appeal has passed.

5.65.120 Massage establishment license, application, fee relocation. (a) Any application for a license to operate a massage establishment shall be accompanied by a fee as set by resolution of the council. The application fee shall be used to defray in whole or in part, the cost of the investigation and report by the chief of police and is not made in lieu of any other fees or taxes required under this code. In addition, the applicant shall also pay all applicable fees to the county health officer according to the rate schedule of the county then in effect, and to the state all applicable fees necessary for the processing of applicant information.

10 (b) A license to operate a massage establishment shall remain valid as long as the license holder maintains a continual business operation as evidenced by the possession of a valid business tax certificate. Failure to timely renew the business tax certificate shall cause the massage establishment license to become invalid and the license holder must complete a new massage license application accompanied by a fee as set by resolution of the council. If a licensed establishment relocates or opens an additional business location, an application for such purpose shall be required and accompanied by an administrative fee as set by resolution of the council.

5.65.130 Additional restrictions and requirements.
(a) Before operating a massage establishment in the city, massage establishment owners must comply with all applicable codes adopted by the city, including, without limitation, the building, signage, electrical, and plumbing codes. (b) Hours of operation. Massage establishments shall only offer massage services between the hours of 8:00 a.m. and 10:00 p.m. and no patrons for massage services shall be allowed on the premises after 10:00 p.m. or before 8:00 a.m. (c) Density Limitations.
(1) The maximum allowable number of massage establishments is twenty. No new applications for massage establishments will be accepted until the number of active licenses drop below twenty.
(2) No massage establishment shall locate within five hundred feet from another massage establishment. The distance shall be measured as the horizontal distance measured in a straight line from the property line of one site to the property line of another site.
(3) Applicants who wish to apply for massage establishment licenses shall be issued permits on a first-come, first-served basis, provided the proposed massage establishment does not violate the density limitations herein.

Applicants who are not eligible for a license due to these density limitations shall be placed on a chronologically maintained waiting list. (4) Massage establishments lawfully permitted by the city prior to December 1, 2025, and in good standing with the city on the effective date of this chapter, are not subject to the density limitations herein, provided they obtain a massage establishment license pursuant to this chapter within six months of its effective date. The sale or transfer of any interest in a massage establishment which interest would be reported as required in this chapter upon application for a massage establishment license, shall result in the massage establishment becoming subject to the density limitations herein.

11 (d) Any and all signage advertising or promoting the business or location shall comply with provisions set forth in Morro Bay Municipal Code Chapter 17.29.

5.65.140 Massage establishment license grounds for denial.

The Chief of Police shall either issue or deny a permit within 60 calendar days following receipt of a completed application for an establishment permit. The Chief of Police may extend the time period to act on a permit application by an additional 30 days upon providing written notice of the extension to the applicant. In approving or denying a permit, the Chief of Police shall consider the recommendations of City officials investigating the application, along with any other relevant information.

The chief of police may deny an application for a massage establishment permit on any of the following grounds:
(a) The massage establishment, as proposed by the applicant, would not comply with the requirements of this chapter.
(b) The massage establishment, as proposed by the applicant, would not comply with any applicable law, including, but not limited to the city's building, fire, zoning, and health regulations.
(c) The applicant has knowingly made any false, misleading or fraudulent statement of material fact in the application for a massage establishment permit. (d) Any owner of the massage establishment, within five years immediately preceding the date of filing of the application, has been convicted in a court of competent jurisdiction of any offense that relates directly to the operation of a massage establishment whether as a massage establishment owner or operator or as a person practicing massage for compensation, or as an employee of either; or has at any time been convicted in a court of competent jurisdiction of any felony the commission of which occurred on the premises of a massage establishment. (e) Any owner of the massage establishment is currently required to register under the provisions of Section 290 of the California Penal Code. (f) Any owner of the massage establishment, within five years of the date of application, has been convicted in a court of competent jurisdiction of any violation of Sections 266, 266a, 266e, 266f, 266g, 266h, 266i, 266j, 315, 316, 318, 647(b), or 653.22 of the California Penal Code, or conspiracy or attempt to commit any such offense, or any offense in a jurisdiction outside of the State of California that is the equivalent of any of the aforesaid offenses.
(g) Any owner of the massage establishment has been subjected to a permanent injunction against the conducting or maintaining of a nuisance pursuant to Sections

12 11225 through 11235 of the California Penal Code, or any similar provision of law in a jurisdiction outside the State of California.
(h) Any owner of the massage establishment, within five years of the date of application, and as established by clear and convincing evidence, has engaged in acts prohibited under California Penal Code Sections 266, 266a, 266e, 266f, 266g, 266h, 266i, 266j, 315, 316, 318, 647(b), or 653.22.
(i) Any owner of the massage establishment is an individual who has not attained the age of eighteen years.
(j) Any owner of the massage establishment, within five years immediately preceding the date of filing of the application, has had a permit or license or certificate to practice massage for compensation or to own and/or operate a massage establishment revoked or denied in any jurisdiction.
(k) Any owner of the massage establishment currently owns or operates a massage establishment in the city of Morro Bay that is not in good standing due to the existence of uncorrected violations or unpaid fines or fees.
(l) Within the last five years, the applicant has failed to comply with a final court order or administrative action of an investigatory agency finding a violation of applicable federal, state and local wage and hour laws, including, but not limited to, the Federal Fair Labor Standards Act, the California Labor Code, and any local minimum wage ordinance or prevailing wage requirements. For purposes of this subsection, a final court order or administrative action is one as to which there is no pending appeal and the time for filing an appeal has passed.

5.65.150 Massage establishment - facilities and operations requirements.

All massage establishments shall comply with the following facilities and operation requirements:
(a) Massage establishments shall comply with all code requirements. (b) Closed cabinets or other cupboard space shall be provided for the storage of clean linen. Approved receptacles shall be provided for the storage of all soiled linen and paper towels.
(c) The walls in all rooms where water or steam baths are given shall have a washable, mold-resistant surface.
(d) All lavatories or washbasins shall be provided with running water, disinfectant, soap and single service towels.

13 (e) Security deposit facilities capable of being locked by the patron or a security bag that may be carried by the patron shall be available for the protection of the valuables of the patrons.
(f) Every portion of a massage establishment including appliances, apparatus and personnel, shall be kept clean and operated in a sanitary condition. (g) All massage establishments shall be equipped with clean and sanitary towels, sheets and linens of sufficient quantity. Towels, sheets and linens shall not be used by more than one person. Reuse of such linen is prohibited unless the same has first been laundered Heavy white paper may be substituted for sheets: provided, that such paper is used once for each person and then discarded in a sanitary receptacle. (h) All walls, ceilings, floors, pools, showers, bathtubs, steam rooms and other physical facilities for the establishment must be in good repair and maintained in a clean and sanitary condition. Wet and dry heat rooms, steam and vapor rooms, or steam or vapor cabinets, shower compartments, and toilet rooms shall be thoroughly cleaned and disinfected each day the business is in operation. Bathtubs shall be thoroughly cleaned and disinfected after each use.

1. Disinfecting agents and sterilizing equipment shall be provided for any instruments used in performing acts of massage and said instruments shall be disinfected and sterilized after each use.
(i) Pads used on massage tables shall be covered with durable, washable plastic or other acceptable waterproof material.
(j) To protect patrons from potential health and sanitary hazards, all employees, and massage technicians shall be clean and shall wear clean outer garments when performing services on the premises, No massage technician shall, in the course of administering any massage, bath or health treatment, expose his or her genitals or private parts. No massage technician shall, in the course of administering any massage, bath or health treatment, make physical contact with the genitals or private parts of any other person in violation of CAMTC guidelines.
(k) A listing of each service offered, the price thereof, and the minimum length of time such service shall be performed shall be made available on request. No services shall be performed and no sum shall be charged for any services other than those listed.

Arrangements shall be made for all services prior to the performance of any service. No massage technician shall solicit or offer to perform for any patron any additional service after such technician has commenced the performance of any service for such patron. (l) No alcoholic beverages shall be sold, served or furnished on the premises of any massage establishment.

14 (m) No massage establishment shall be open for business between the hours of 10 p.m. of one day and 8 a.m. of the following day.
(n) Minimum lighting shall be provided in accordance with the Uniform Building Code, and in addition, at least one artificial light of not less than forty watts shall be provided in each room or enclosure when massage is performed on patrons. (o) Minimum ventilation shall be provided in accordance with the Uniform Building Code.
(p) Proof of compliance with all applicable provisions of this code shall be provided. (q) Reception and Waiting Areas

1. One ( 1) main entry door shall be provided for Patron entry to the Massage Establishment, which shall open directly into the interior Reception and Waiting Area of the Massage Establishment. Except during emergency egress situations, all Patrons, and any persons other than Individuals employed or retained by the Massage Establishment shall be required to enter and exit through the main entry door. The main entry door shall remain unlocked during business hours when the Establishment is open for business or when Patrons are present unless the Massage Establishment is a business entity owned by a sole proprietor and there is no additional staff available to assure security;

2. No Massage Establishment located in a building or structure with exterior windows fronting a public street, highway, parking area or walkway ( including interior common areas and hallways) shall, during business hours, block visibility into the interior Reception and Waiting Area through the use of curtains, closed blinds, tints, signage, or any other material that obstructs, blurs, or unreasonably darkens the view into the premises;

3. For the purpose of this subsection, there is an irrebuttable presumption that visibility is impermissibly blocked if more than 15 percent of the square footage of windows or more than 10 percent of the square footage of clear doors is covered so as to obstruct views of the interior Reception and Waiting Area.

5.65.160 – Massage establishment prohibited conduct.
(a) It is unlawful for any person to operate a massage establishment within the city without first obtaining a massage establishment permit from the Department. (b) On or after March 13, 2026, it is unlawful for a massage establishment operator to employ or retain any person to practice massage therapy for compensation, or to allow any person to perform massage therapy for compensation on the premises of a massage establishment, unless that person is a CAMTC-certified massage professional and unless that person is identified as an authorized massage professional on the

15 permit issued pursuant to this chapter. For purposes of this chapter, a massage establishment operator "employs or retains" a person to practice massage therapy for compensation when:
(1) That person is a directly paid employee of the massage establishment; or (2) That person's association with a massage establishment is that of an independent contractor who receives compensation for massage therapy provided to patrons of the massage establishment; or
(3) That person receives a referral of patrons from the massage establishment and, at any time before or after the referral, arranges in any way for compensation to flow to the massage establishment operator. (c) It is unlawful for a massage establishment to operate under any name or conduct business under any designation not specified in the massage establishment permit issued pursuant to this chapter.
(d) It is unlawful for a massage establishment to continue to operate following the sale or transfer of any interest in the massage establishment to a person who was not identified as an owner in the massage establishment permit application.

5.65.170 Massage establishment—Record keeping requirements.

Every person operating a massage establishment within the city shall keep a record of the date and hour of each treatment, the address of the place where the service was rendered, and the name of the technician administering such treatment, The records shall be open to inspection by officials charged with the enforcement of these provisions for the purposes of law enforcement and for no other purpose. The information furnished or secured as a result of any such inspection shall be confidential. Any unauthorized disclosure or use of such information by any city officer or employee shall be subject to the penalty provisions of this chapter, in addition to any other penalties provided by law. The records required by this section shall be maintained for a period of two years.

5.65.180 Massage establishment - business name.

No person licensed to operate a massage establishment shall operate under any name or conduct business under any designation not specified in the license.

5.65.185 Massage therapist – certificated name.

No certificated massage therapist shall operate under another name or alias that is not listed on their CAMTC certification or local license or permit or certificate.

5.65.190 Display of permit.

16 Any owner of a massage establishment must display the CAMTC certificates for all massage technicians prominently in a conspicuous place, capable of being viewed by customers or city representatives, at every location where massage is performed or conducted.

Any persons operating under the limited exception described in Section 5.65.090 must display the statement from the city documenting their exemption from the CAMTC certification prominently in a conspicuous place capable of being viewed by customers or city representatives.

5.65.200 Massage establishment - Sale or transfer of interest.

The sale or transfer of any interest in a massage establishment which interest would be reported as required in this chapter upon application for a massage establishment license, shall be reported to the chief of police within ten days of such sale or transfer.

The chief of police shall investigate any person receiving any interest in a massage establishment as a result of such sale or transfer and if such person satisfies the requirements relating to massage establishment license applicants the existing license shall be endorsed to include such person. A fee established by resolution of the council shall be paid to the city for the investigation by the chief of police necessitated by each such sale or transfer. Any such establishment which intends to in any way transfer ownership or alter or change the nature of any such massage establishment on or after the effective date of this chapter shall comply with the provisions of this chapter prior to such transfer, alteration or change.

5.65.210 Investigation by officials - Authority.

Any and all investigating officials of the city and county shall have the right to enter massage establishments from time to time during regular business hours to make reasonable inspections, to observe and enforce compliance with building, fire, electrical, plumbing, or health regulations, or other provisions of this chapter. A warrant shall be obtained whenever required by law.

5.65.220 Investigation by officials - Report.

Whenever any investigating official of the city makes an inspection of a massage establishment he or she shall record his or her findings on a report and shall give notice of his or her findings by furnishing a copy of the inspection report to the licensee or permittee.

5.65.230 Notice of violation - Issuance contents.

Whenever any investigating official of the city makes an inspection of a massage establishment and finds that any provision of this chapter has been violated, he or she

17 shall give notice of such violation by means of a report or other written notice. In any such notification, the investigating official shall:
(a) Set forth the specific violation or violations found; (b) Establish a specific and reasonable period of time for the correction of the violation or violations. If the investigating official determines that the violation or violations are minor in nature, the investigating official may issue a warning to the licensee or permittee, that any further violation of this chapter may result in the filing of a complaint for revocation or suspension of the license or permit;
(c) State that failure to comply with any notice issued in accordance with the provisions of this chapter may result in the city revoking or suspending the license or permit.

5.65.240 Massage establishment - Revocation or suspension of license.

Any license issued for a massage establishment may be revoked or suspended by the chief of police where it is found that:
(a) The licensee has violated any provision of this chapter or state massage therapy act business and professional code 4621: or
(b) The licensee has failed to comply with one or more of the facility and operations requirements of Section 5.65.150; or
(c) The licensee has engaged in fraud, misrepresentation or false statement in conducting the massage establishment: or
(d) The licensee has failed to correct a violation after notice to do so pursuant to Section 5.65.230; or
(e) The licensee has continued to operate the massage establishment after the license has been suspended: or
(f) The licensee has allowed a person to work as a massage technician who:

1. Does not have a valid permit: or

2. Has engaged in conduct or has been convicted of any offense described in subsections (b) and (c) of Section 5.65.140 where the licensee has active or constructive knowledge of such conduct or conviction: or (g) Licensee is a person who is engaged in conduct or has been convicted of an offense described in subsections (b) and (c) of Section 5.65.140.

5.65.250 Massage technician - Revocation or suspension of permit.

Any massage technician permit may be revoked or suspended by the chief of police where it is found that:

18 (a) The permittee has violated any provision of this chapter: or (b) The permittee is a person who has engaged in conduct described in subsections (b) or (c) of Section 5.65.140; or
(c) The permittee has engaged in conduct which would constitute an offense which relates directly to the permittee’s employment or performance as a massage technician or has engaged in conduct which would constitute a felony, the commission of which occurred on the premises of a massage establishment; or has been convicted by a court of competent jurisdiction of any such offense or felony; or (d) The permittee has continued to function as a massage technician after the permit has been suspended: or
(e) The permittee has failed to correct a violation found pursuant to Section 5.65.230

5.65.260 Appeals—Hearing.

In the event a permit or license application has been denied, the applicant may appeal pursuant to the procedures set forth in Section 5.04.210 of this code. Any licensee or permittee whose license or permit has been suspended or revoked may appeal pursuant to the procedure set forth in Section 5.04.210 of this code.

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 of Morro Bay, held on the 27th day of January 2026, by motion of Mayor Wixom and seconded by Council Member Luffee.

PASSED AND ADOPTED on the ______ day of __________2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSE:
____________________________
CARLA WIXOM, Mayor
ATTEST:
________________________________
DANA SWANSON, City Clerk
APPROVED AS TO FORM:

19 _________________________________
BRIAN J. STACK, City Attorney

20 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 676 was duly adopted by the City Council of the City Morro Bay at a regular meeting of said Council on the ____ day of ________ 2026 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 _______________, 2026.

DANA SWANSON, City Clerk

Prepared By: GK Department Review: GK

City Manager Review: JC City Attorney Review: BS
Staff Report
TO: Honorable Mayor and City Council DATE: February 4, 2026 FROM: Greg Kwolek – Public Works Director
SUBJECT: Status Update, Reconfirm Emergency, and Approval of Temporary Construction easement for Morro Creek Bank Stabilization Project

RECOMMENDED ACTION

1. Receive and file status update and reconfirm the declaration of emergency for the Morro Creek Bank Stabilization Project by four fifths vote; and

2. Approve the temporary construction easement associated with the Morro Creek Bank Stabilization Project; and

3. Authorize the City Manager to execute the Temporary Construction Easement and related documents on behalf of the City.

STATUS UPDATE
On November 18, 2025, the City Council adopted an emergency declaration by unanimous vote for the Morro Creek Bank Stabilization Project due to the sudden 2023 erosion event that created an ongoing and imminent threat to adjacent public and private property. Since the City Council action, staff has secured contracts with Earth Systems for design services and Kevin Merk Associates for environmental and regulatory compliance services. Staff has continued coordination with all applicable regulatory agencies:
 California Coastal Commission (CCC): The CCC has provided concurrence with the City’s plan to issue its own Local Coastal Program Emergency Coastal Development Permit (ECDP). Staff is preparing the City’s emergency CDP consistent with CCC input.  U.S. Army Corps of Engineers (USACE): Staff is preparing an application under Regional General Permit 63 (RGP 63) and is currently working with USACE to confirm that the site conditions meet the Corps’ definition of an emergency. Staff has submitted additional information describing the sudden 2023 erosion event, the ongoing hazardous condition, and the imminent risk of further failure during upcoming storm events.  Regional Water Quality Control Board: Staff has initiated discussions regarding the appropriate permitting pathway under the Clean Water Act and is preparing the required documentation to support emergency authorization.
 California Department of Fish and Wildlife: Staff is coordinating with CDFW regarding Lake and Streambed Alteration (LSA) requirements and emergency notification procedures.

AGENDA NO: 6.e
MEETING DATE: February 10, 2026

Property Access
Implementation of the Project requires temporary access and construction staging outside of the City’s existing easement and property. Staff has negotiated a no-cost Temporary Construction Easement (TCE) with the adjacent property owner, Vistra, to allow for equipment access, construction activities, and restoration work.

The proposed TCE (Attachment 1) defines the area, permitted construction activities, duration, indemnification, insurance requirements, and restoration obligations consistent with previous easements granted to the City by Vistra and approved as to form by the City Attorney. Approval of the TCE is necessary to proceed with construction and project completion. Upon Council approval, the City Manager will execute the TCE on behalf of the City. The City hopes to begin construction by the end of the month.

EMERGENCY STATUS
Under Public Contract Code Section 22050, the City Council must review the emergency action at each regularly scheduled meeting and confirm there is a need to continue the emergency action by a four-fifths vote. Because additional time is needed to complete the emergency response, staff recommends the City Council reaffirm by a four-fifths vote that the local emergency continues to exist. If reaffirmed, Staff would continue to return to City Council at each regularly scheduled meeting to report on any emergency actions taken and for a determination whether there continues to be a need for the emergency action.

ATTACHMENT

1. Temporary Construction Easement for Morro Creek Bank Stabilization Project

Prepared By: Dept Review: ______
City Manager Review: JC City Attorney Review: BS
Staff Report
TO: Honorable Mayor and City Council DATE: February 5, 2026 FROM: John Craig, City Manager
Brian J. Stack, City Attorney
SUBJECT: Adoption of Proposed Changes to the Council Policies & Procedures

RECOMMENDED ACTION
Adopt Resolution No. 05-26 approving revisions to the Council Policies & Procedures (“Policies”) to reflect recent changes to The Brown Act established by Senate Bill 707.

ALTERNATIVES

1. The Council may adopt Resolution No. 05-26 with minor changes, as deemed appropriate by a Council majority, or

2. The Council may direct further changes to the Council Policies & Procedures to be brought back for review and adoption at a future meeting.

FISCAL IMPACT
There is no fiscal impact associated with the other policy revisions.

BACKGROUND/ DISCUSSION
Senate Bill 707 (“SB 707”)
On October 3, 2025, Governor Newsom signed Senate Bill 707 (SB 707), enacting a comprehensive set of amendments to the Ralph M. Brown Act that restructures and expands the statutory framework governing public access and remote participation in local government meetings. Specifically, this legislation addressed the impending expiration of several pandemicera statutes that expanded local agency teleconferencing authority.

Morro Bay is exempt from certain provisions of SB 707 that only affect cities with populations over 30,000 or smaller cities located in counties with populations in excess of 600,000 (defined in the statute as “eligible legislative bodies”). However, some key changes in the legislation impact cities of all size and are therefore applicable to Morro Bay. These include:

Expands “just cause” reasons for remote participation: Includes specified family caregiving duties, contagious illness, physical or mental conditions, official travel for the city or another state or local agency, immunocompromised family members, medical emergencies, and certain military obligations. Members must announce and the meeting minutes must note the specific statutory reason the member relied upon to participate remotely. Members must participate by audio and video (unless granted a disability accommodation), and a quorum must still meet in AGENDA NO: 6.f
MEETING DATE: February 10, 2026

person within the agency’s jurisdiction. Before any action is taken at the meeting, the member must disclose whether any other individuals 18 years or older are present in the room and the general nature of the member’s relationship with those individuals. When a member is participating remotely under the “just cause” provisions, the City must provide the public an opportunity for two-way audiovisual or telephone access and real-time public comment. For City Council, the “just cause” option may be used for up to five meetings per year (a “meeting” is defined as any number of meetings of the legislative body that begin on the same calendar day).

Teleconferencing is now permitted as a reasonable ADA accommodation: Members may participate remotely as an ADA accommodation, but must participate through both audio and visual technology, except if a physical condition related to their disability results in a need to participate off camera. Before any action is taken at the meeting, the member must disclose whether any other individuals 18 years or older are present in the room and the general nature of the member’s relationship with those individuals. Teleconferencing under this subdivision is treated as in-person attendance at the physical meeting location for all purposes, including any requirement that a quorum of the legislative body participate from any particular location. There is no requirement to post an agenda at the teleconference location, the location need not be accessible to the public and there is no requirement for remote (Zoom) participation for the public.

Broader teleconferencing rules: Allows a legislative body to meet entirely remotely without the usual teleconferencing requirements. In order to use this option, a state or local emergency must be declared and the body must make an initial finding by majority vote that the emergency poses imminent risks to health or safety and every 45 days thereafter reconfirm the finding that the emergency continues to directly impact the ability to meet safely in person. Public access via remote audio and visual is required.

Authority to remove disruptive participants from teleconferencing: Extends the authority to remove disruptive individuals from teleconferenced meetings, a power previously limited to inperson meetings. An individual can be remoted if they “actually disrupt, disturb, impede, or render infeasible the orderly conduct of the meeting.”
New report requirements for executive compensation: Before taking final action, a legislative body must orally report a summary of a recommendation for compensation of a department head or other similar administrative officer.

Social Media Rules Extended: Existing law permits a member of a legislative body to engage in conversations or communications with the public regarding matters that are within the subject matter jurisdiction of the legislative body, so long as a majority of the members of the legislative body do not use the social media platform to discuss these matters among themselves, and so long as members do not respond directly to any social media communication by any other member of the legislative body. SB 707 extends this exception indefinitely.

Mandatory Brown Act Distribution: Agencies are now required to provide a copy of the Brown Act to any person elected or appointed as a member of a legislative body.

Council Policies & Procedures
The Council Policies & Procedures were reviewed and readopted in July 2025. To remain consistent with State law, proposed edits to the Council Policies & Procedures include the following:
 Section 1.5, Teleconferencing Regulations. Summarizes revised State law requirements regarding remote participation in Brown Act meetings pursuant to SB 707.  Section 4.7, Social Media. Revised to highlight SB 707 extended State law provisions related to Council Member use of social media.

Also, Page 3 and Section 1.3.5. have been updated to include the Resolution Pledging to Follow Best Practices of Civility and Civil Discourse adopted September 23, 2025.

CONCLUSION
Staff recommends the City Council adopt Resolution No. 05-26 readopting the Council Policies and Procedures.

ATTACHMENT(S)

1. Resolution No. 05-26 amending and readopting the Council Policies & Procedures

RESOLUTION NO. 05-26

A RESOLUTION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY, CALIFORNIA

AMENDING THE CITY COUNCIL

POLICIES AND PROCEDURES MANUAL

T H E C I T Y C O U N C I L
City of Morro Bay, California
WHEREAS, the Council Policies and Procedures Manual for the City of Morro Bay (the “Manual”) is a combination of City Council actions, policies, references, and information regarding the City Council; and
WHEREAS, to ensure all Councilmembers are familiar with and understand the City of Morro Bay’s philosophies and policies regarding serving on the City Council, on July 23, 2001, the City Council adopted Resolution 47-01 approving an early version of the Manual; and WHEREAS, the Manual has been amended several times throughout the years; and WHEREAS, the City Council desires to amend Sections 1.5 and 4.7 of the Manual to remain consistent with State law regarding teleconferencing regulations and social media use by elected and appointed officials, as established by Senate Bill 707.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, that the City Council Policies and Procedures Manual is readopted, as attached hereto as Exhibit A.

PASSED AND ADOPTED by the City Council, City of Morro Bay at a regular meeting thereof held on the 10th day of February 2026 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

RECUSE:
______________________________
CARLA WIXOM, Mayor
ATTEST:
_____________________________
DANA SWANSON, City Clerk

August 27, 2024February 10, 2026 DRAFT 1
City of Morro Bay
Council Policies and
Procedures
SCOPE
This manual establishes the procedures for the conduct of all meetings of the City Council of the City of Morro Bay. The purpose of this manual is to provide City Council’s meeting will be consistent with the Brown Act (Government Code Sections 54950 et seq.), and to establish procedures, which will be convenient for the public, and contribute to the orderly conduct of the City’s business. The procedures herein are in addition to, and not in place of, Morro Bay Municipal Code (MBMC) 2.08 and any other applicable ordinances and statutes. In the event of conflict between this manual and applicable ordinances or statutes, the latter shall govern.

Adopted by the City Council
July 23, 2001, Resolution No. 47-01
Updated by the City Council
August 12, 2002, Resolution No. 46-02
November 13, 2003, Resolution No. 54-03
June 24, 2004, Resolution No. 37-04
November 14, 2005, Resolution No. 42-05
May 22, 2006, Resolution No. 23-06
May 14, 2007, Resolution No. 24-07
October 8, 2007, Resolution No. 50-07
November 10, 2008, Resolution No. 76-08
February 22, 2010, Resolution No. 11-10
June 14, 2010, Resolution No. 28-10
September 27, 2010, Resolution No. 46-10
January 25, 2011, Resolution No. 11-11

July 22, 2025February 10, 2026 Draft 2
December 11, 2012, Resolution No. 64-12
March 12, 2013, Resolution No. 19-13
November 12, 2013, Resolution No. 53-13
June 10, 2014, Resolution No. 36-14
August 25, 2015, Resolution No. 58-15
December 8, 2015, Resolution No. 74-15
May 10, 2016, Resolution No. 30-16
January 10, 2017, Resolution No. 01-17
August 22, 2017, Resolution No. 45-17
May 8, 2018, Resolution No. 26-18
January 22, 2019, Resolution No. 10-19
May 28, 2019, Resolution No. 39-19
December 10, 2019, Resolution No. 104-19
February 9, 2021, Resolution No. 08-21
January 9, 2024, Resolution No. 05-24
May 14, 2024, Resolution No. 27-24
August 27, 2024, Resolution No. 59-24
July 22, 2025, Resolution No. 44-25
February 10, 2026, Resolution No. 05-26

July 22, 2025February 10, 2026 Draft 3
The above is to be readopted at the same time the policies are returned for adoption.

July 22, 2025February 10, 2026 Draft 4

TABLE OF CONTENTS
PAGE
CHAPTER ONE: MEETING GUIDELINES & PROCEDURES

1.1 Meeting Schedule 6

1.2 Agenda 9

1.3 Meeting Procedures 12

1.4 Meeting Coverage

1.5 AB 2449 – Teleconferencing Regulations

1.6 Public Use of Visual Aids at Meetings
24 25
26 CHAPTER TWO: COUNCIL SALARY, BENEFITS AND REIMBURSEMENTS

2.1 Salaries for Mayor and Council Members 27

2.2 Retirement, Medical, Dental, Vision and Life Insurance

2.3 Access to Communications/Technology Systems
27 27

2.4 Professional Development 28

2.5 City Business and Mileage Reimbursement 29

2.6 General Procedures and Limitations 32
CHAPTER THREE: COUNCIL POWERS & APPOINTMENTS

3.1 Mayor – Power and Duties 35

3.2 Appointment of Mayor Pro Tempore 36

3.3 Filling Council Vacancies 36

3.4 General Powers of the Council 36

3.5 Administering Oaths: Subpoenas 37

3.6 Limitations 37

3.7 Method of Action by Council 37

3.8 Ordinances 37

3.9 Acceptance of Grants or Deeds 38

3.10 Legislative Action Program 38

3.11 Amicus Curiae Participation 38

3.12 Actions as Member of Another Legislative Body 38

3.13 Council Sub-Committees

3.14 Issuance of Proclamations, Commendations, Special Recognition 38 39
CHAPTER FOUR: THE BROWN ACT AND E-MAIL

4.1 Application and Penalties 41

4.2 Major Provisions 41

4.3 Special Meetings 43

4.4 Emergency Meetings 43

4.5 Electronic Mail (e-mail), The Public Records Act and the Brown Act

4.6 Private Social Media and Digital Communications

4.7 Social Media and Brown Act Compliance
43 45
46 4.8 Other Provisions 46
CHAPTER FIVE: COUNCIL/STAFF RELATIONSHIPS AND CONDUCT

5.1 Intent 47

5.2 Guidelines for Council Members 47

5.3 Guidelines for Staff 48

5.4 Use of City Letterhead

5.5 Use of Public Resources
49 50

July 22, 2025February 10, 2026 Draft 5

5.6 Council Mail Handling

5.7 Council Conduct and Communication with the General Public; Boards, Commissions and Committees; the Media and at Public Hearings 50 52
CHAPTER SIX: ADVISORY BOARD PROCEDURES

6.1 County or Regional Representation 53

6.2 Other Council Representation, Sub-committees 53

6.3 Role of Advisory Board Members at Council Meetings 53

6.4 Role of City Staff Persons 54

6.5 Appointment Procedures 55

6.6 Process
CHAPTER SEVEN: COUNCIL CONFIDENTIALITY POLICY

7.1 Purpose and Prohibition Against Disclosure

7.2 Public Censure for Unauthorized Disclosure

7.3 Definitions
CHAPTER EIGHT: ENFORCEMENT

8.1 Purpose

8.2 Procedures

8.3 Disciplinary Action
55 59
59 59
61 61
63

July 22, 2025February 10, 2026 Draft 6

CHAPTER ONE

MEETING GUIDELINES & PROCEDURES

1.1 MEETING SCHEDULE

1.1.1 MEETINGS OF COUNCIL
The Council shall provide by ordinance the time and place of holding meetings and the manner in which special meetings may be called. Public interest and convenience shall be primary considerations when decisions are made as to time, location and frequency.

Except as otherwise provided by law, all meetings of the Council shall be open to the public.

1.1.2 REGULAR MEETINGS

1.1.2.1 Regular meetings shall be held the second and fourth Tuesday of each month beginning at 5:30 p.m. In the event that a regular meeting of the Council shall fall on a legal holiday, that regular meeting shall be held at the same place and time on the next succeeding working day. A regular meeting can only be
cancelled after polling the majority of the Council in favor of the cancellation.

1.1.2.2 Regular meetings shall be held in the Veterans Memorial Building, 209 Surf Street, in the City of Morro Bay.

1.1.2.3 Regular meetings shall be between the hours of 5:30 p.m. – 9:30 p.m. It shall be the policy of the City Council to complete meetings by 9:30 p.m., unless a majority of the Council elects to continue past the adjournment hour. If at the hour of 9:30 p.m. the City Council has not extended the time to adjourn the meeting or concluded its business, then the Council will review the balance of the agenda and determine whether to extend the meeting beyond the hour of 9:30 p.m., continue any remaining items, or adjourn the meeting to another date and time.

1.1.2.4 A regular meeting may be canceled by a majority vote of the Council.

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1.1.3 STUDY SESSIONS (Open to the public)

1.1.3.1 The purpose of these meetings shall be for informal discussions between staff, advisory bodies or consultants, the public, and the City Council regarding specific programs, projects or policies.

Council may provide direction, but no formal action will be taken during a Study Session. Study Sessions may be conducted in a variety of formats, including Public Workshops.

1.1.3.2 Study Sessions will be held at a time and place within the City limits and convenient to Council and advantageous for public participation.

1.1.4 SPECIAL MEETINGS

1.1.4.1 Special meetings may be called by the Mayor or three City Council Members. Written notice of each special meeting must be given not less than twenty-four (24) hours before such meeting to each Member of the City Council not joining the call.

Special meetings may be cancelled only by consent of a majority of the members of the Council not less than 24 hours before the date of the special meeting. Notice of such cancellation shall be given to all Council Members and written notice shall be posted for the public not less than 24 hours before the meeting.

1.1.4.2 Written notice must be given to the City Council and to the media twenty-four hours prior to each meeting, when requested.

1.1.4.3 A supplemental telephone call shall be made if necessary to notify each Council Member.

1.1.4.4 No business other than that announced shall be discussed.

1.1.4.5 Any special meeting held at a place other than the Veterans Memorial Building shall be open to the public. Such meetings shall be held within the City limits. Notice requirements of the Brown Act shall be complied with for any such meetings; regular minutes shall be taken by the City Clerk and shall be available for public inspection

July 22, 2025February 10, 2026 Draft 8

1.1.5 CLOSED SESSION MEETINGS (closed to the public)

1.1.5.1 Closed Session Meetings may be called by the Mayor or three City Council Members and are regulated pursuant to the Brown Act. The most common purpose of a closed session is to avoid revealing confidential information that may, in specified circumstances, prejudice the legal or negotiating position of the City or compromise the privacy interests of employees. Closed sessions should be conducted keeping those narrow purposes in mind.

1.1.5.2 No Council Member, employee of the City, or anyone else present shall disclose to any person the content or substance of any discussion which takes place in a closed session, unless authorized by a majority vote of the Council.

1.1.6 DESIGNATION AND USE OF COUNCIL CHAMBERS

1.1.5.1 The Veterans Memorial Building shall be designated as the City’s Council Chambers.

1.1.5.2 When a question arises regarding permission for any group to use the Council Chambers, the City Manager shall have
authority to make the final decision. The following rules are established as a guide:
a. Use of the Council Chamber for regular meetings by City commissions, committees, and other advisory bodies
shall take precedence over any other group or agency. To the extent possible, special meetings will be scheduled around other regularly scheduled non-City uses. In the
event of a conflict, the City will give priority to
rescheduling or relocating any use displaced by a Cityrelated use. b. Council chambers is available for other use on a firstcome-first-serve basis, after City, City-affiliated and other regular uses are scheduled.
c. With the approval of the City Manager, and within the provisions of existing video production agreements, other local governmental agencies may use the Council
Chamber for the purpose of live or video cablecasting
public hearings and/or public meetings during regular or non-business hours.

July 22, 2025February 10, 2026 Draft 9

1.2 AGENDA

1.2.1 ESTABLISHING THE COUNCIL AGENDA
The purpose of the agenda is to provide a framework within which Council meetings can be conducted and to effectively implement the approved Council Goals, Financial Plan and Budget, and also work programs, objectives, and business of the City as established by the present or earlier City Councils. Agenda items also include recommendations to the City Council from advisory bodies, land use and zoning actions or appeals, bid and purchasing procedures, and mandates from other levels of government. Staff shall work within the policy context established by the Council and will not arbitrarily place matters on the agenda that are outside the scope of existing work programs of the City, except as approved by the Mayor or a majority of the Council, and to inform and advise the Council of matters necessary to the proper operation and well-being of the City. a. Tentative Council Meeting Agenda - Every effort will be made to provide it to the City Council and staff before the close of business on the second Friday prior to the Council meeting.
b. The full agenda packet for regular meetings of the City Council and all City Advisory Boards will be published a minimum of 120 hours (or five calendar days) prior to the meeting. Agenda packets for special meetings will be published a minimum of 48 hours (or two calendar days) prior to the meeting.

The process for determining the format and order of the agenda is based primarily on the order of business adopted by the City Council (see Section 1.2.7). The process for establishing the order of specific business and public hearing items is a collaborative one determined largely by anticipated public attendance (those matters involving greater audience attendance are usually scheduled ahead of other items). The City Manager shall meet with department heads on a regular basis, individually and as a group to discuss issues and to review upcoming agenda items.

In addition, the City Manager shall review the agenda materials with the Mayor, or in the Mayor’s absence, the Mayor Pro Tempore. The final agenda is set subject to the approval of the Mayor (or Mayor Pro Tempore), after consultation with the City Manager.

1.2.2 PLACING AN ITEM ON THE AGENDA (COUNCIL MEMBER)
Any Council Member may request an item be placed on a future agenda by submitting a request, orally or in writing, to consider the matter and by discussing the request during the “Declaration of Future Agenda Items” section of the regular agenda. If a majority of the Council approves including that matter on an upcoming agenda, then staff will prepare a staff report, as determined by the City Manager, unless otherwise directed by the Council.

July 22, 2025February 10, 2026 Draft 10
If only one other Council Member supports hearing the item, then an item will be listed on the next available agenda, as determined by the City Manager, unless otherwise directed by the Council. The Council Member who made the request for the agenda item shall be responsible for providing the Council report and the Council will take no action on the substance of the matter at that review, unless there is adequate public notice, and information is provided for the Council to make an informed decision. If no other Council Member supports hearing the item, then the item will not be placed on the agenda.

Pursuant to Section 1.2, the Mayor is responsible for establishing the Agenda and may place an item on the agenda without Council support. In such a situation, the Mayor, or Council Member who the Mayor is accommodating, shall be responsible for providing a Mayor or Council Report.

The Council has an approved strategic planning process to set the City’s annual goals, objectives and action plans. In order to ensure that City staff has sufficient time and resources to accomplish these established priorities, adding future items to the workplan during the year is discouraged. Exceptions are warranted should unforeseen events occur that threaten the health, safety or financial wellbeing of the City and Council action is required. Should new items be recommended that are not part of the City Goal and Action Item plan nor meet the exception noted, the City Manager has the discretion to request that an action item be removed to allow sufficient time to address the added item.

1.2.3 PLACING AN ITEM ON THE AGENDA (ADVISORY BODIES)
Recommendations made by advisory bodies, as part of their normal scope of duties and responsibilities, shall be timely placed on the City Council agenda by staff, who shall comply with the City’s approved Council Agenda Preparation Policy. In the event an advisory body desires to bring a matter of special consideration to the City Council (new ideas or concerns, for example), it may request an item be placed on a future agenda by submitting a written request to the Council approved by a majority of the advisory body members and signed by the Chair. During Declaration of Future Agenda Items, any member of the Council may ask for consideration of the request and upon a majority of Council, a staff report will be prepared and approved by the City Manager or his/her designee.

1.2.4 PLACING AN ITEM ON THE AGENDA (THE PUBLIC)
A member of the public may request an item be placed on a future agenda during the Public Comment period at the beginning of every Council meeting, or via other communication with Council Members. Any Member of the Council may ask for consideration of that request pursuant to those procedures set out in 1.2.2.

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1.2.5 EMERGENCY ITEMS
Emergency items may be placed on the agenda only in accordance with the Brown Act. Generally, only those matters affecting public health or safety may be considered emergency in nature. A four-fifth’s vote of Council is necessary to add an emergency item.

1.2.6 RECONSIDERATION
Reconsideration of issues previously acted upon is discouraged. However, in extraordinary situations, a request to reconsider an action taken by the City Council may be considered. The request must be presented by a Council Member who voted with the majority at the Council meeting at which the original vote was taken. The vote may be reconsidered during that meeting, but no later than the next Council meeting. Debate is limited to the question of whether there is a majority of the Council interested in reconsidering the matter. If a majority of the Council votes to reconsider an action, then the matter can be heard at that same meeting or placed on the next or future agenda, as directed by the Council. Notwithstanding the foregoing, as a governmental legislative body, the Council reserves the right to consider or reconsider any matter within its jurisdiction that a majority of the Council deems appropriate, particularly if new information becomes available or circumstances change.

1.2.7 ORDER OF BUSINESS shall be as follows:

1.2.7.1 Establish Quorum and Call to Order

1.2.7.2 Pledge of Allegiance

1.2.7.3 Closed Session Report

1.2.7.4 Mayor and Council Members Reports, Announcements and Presentations (suggested limit of 3 minutes each)*

1.2.7.5 City Manager Reports, Announcements and Presentations (City Manager, Director and Advisory Board Reports) (suggested limit of 5 minutes)

1.2.7.6 Subcommittee Reports (Brief verbal update of Current Subcommittee Activities)

1.2.7.7 Recognition and Presentations (Certificates of Appreciation, Proclamations and Public Presentations)

1.2.7.8 Public Comment (generally for items not on the agenda)

1.2.7.9 Consent Agenda

1.2.7.10 Public Hearings

1.2.7.11 Business Items

1.2.7.12 Council Declaration of Future Agenda Items

1.2.7.13 Adjournment

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*Intended for reporting back to the full Council and the public on items, issues or meetings associated with other Council duties, e.g., assignments to other official bodies, attendance at League of California Cities meetings, etc.

1.2.8 NOTIFICATION AND ADVERTISING
The City will advertise all matters of significant neighborhood or community public interest that appear on a City Council or Planning Commission agenda where advertising is required by law. Said advertisements shall include location maps, project descriptions and posting of property, if required, written in plain English in order to fully inform all interested individuals. Similar information will appear on the City’s website.

All advertising shall be accomplished in an economical manner. All affidavits of publication will be available to interested members of the public.

1.3 MEETING PROCEDURES

1.3.1 PRESIDING OFFICER

1.3.1.1 The Mayor is the Presiding Officer and acts as Chair at Council meetings.

1.3.1.2 In the absence or incapacity of the Mayor, the Mayor Pro Tempore will serve as Presiding Officer.

1.3.1.3 In the absence of both the Mayor and Mayor Pro Tempore, a majority of the quorum shall select one of the Council Members present to act as Chair for the meeting.

1.3.1.4 Seating arrangement of the Council:

The Mayor shall establish seating arrangements for regular Council meetings.

1.3.1.5 Signing of City Documents:

The Mayor, unless unavailable, shall sign all ordinances, resolutions, contracts and other documents which have been adopted by the City Council and require an official signature, except where the City Manager, or other designee, has been authorized by Council to sign documents. In the event the Mayor is unavailable, the Mayor Pro Tempore’s signature may be used.

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1.3.2 QUORUM
A majority of the Council Members shall constitute a quorum for the transaction of business.

1.3.3 DISCUSSION RULES

1.3.3.1 Procedure Order
For discussion of items on the agenda, the following order is followed:
a) Presentation of the Staff Report
b) Council Member Questions
c) Public Comments
d) Council Member Discussion/Decision and Motion(s)

1.3.3.2 Obtaining the floor:

1.3.3.2.1 A City Council Member or staff shall first address the Presiding Officer and gain recognition, or the
Presiding Officer may call upon Council Members to
ask if they desire to ask questions or provide
comments.

1.3.3.2.2 Comments and questions shall be limited to the issue before Council.

1.3.3.2.3 Cross-exchange between Council Members and
public should be avoided.

1.3.3.3 Questions to Staff:

Council Members should attempt to communicate questions, corrections, and/or clarifications about reports requiring official action to staff prior to Council meetings. Early feedback will enable staff to address Council questions and incorporate minor corrections or changes to a Council report, resulting in a more efficient Council meeting discussion; however, this does not preclude Council Members from asking questions at Council Meetings.

A Council Member shall, after recognition by the Presiding Officer, address questions to the designated staff member.

Questions shall be limited to the specific agenda item being considered. Council Members are encouraged to provide
questions to staff prior to meetings.

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1.3.3.4 Interruptions:

1.3.3.4.1 Once recognized, a Council Member shall not be interrupted while speaking except to make a point of
order or personal privilege.

1.3.3.4.2 If a Council Member is called to order while
speaking, then the individual shall cease speaking
until the question of order is determined.

1.3.3.4.3 Upon being recognized by the Mayor, members of staff shall hold the floor until completion of their
remarks or until recognition is withdrawn by the
Presiding Officer.

1.3.3.5 Limitation on Discussion:

No Council Member shall speak more than once on a particular subject until every other Council Member has had the opportunity to speak. Council Members should discuss items during the decision-making process as opposed to during Council Member questions.

1.3.3.6 Tabling Procedure:

The purpose of the Motion to Lay on the Table also known as a Motion to Table is to enable the City Council, by majority vote and without debate, to lay a pending question aside temporarily when something else of immediate urgency has arisen or when something else needs to be addressed before consideration of the pending question is resumed. The Motion shall not be used to cut off debate and shall only be used when it is necessary to suspend consideration of a main motion as per the reasons mentioned above.

1.3.3.7 Motion to Amend and Substitute Motion:

A motion to amend that seeks to modify the original motion is allowed. A substitute motion that proposes to replace an entire pending motion with a new one that deals with the same subject matter is not allowed.

1.3.3.8 Right of Protest:

A Council Member is never required to state reasons for dissent, but is encouraged to for purposes of public/Council discernment.

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1.3.3.9 Rules of Procedure:

Morro Bay Municipal Code Section 2.08.100 provides the
proceedings of the Council shall be governed by Robert’s Rules of Order, revised edition.

1.3.3.9 Council Minutes:

If a Council Member wishes a stated opinion to be entered in the minutes, then he/she should precede the statement with "for the record," or request the City Clerk to enter it into the record following the statement.

1.3.4 PARLIAMENTARY PROCEDURE

Parliamentary procedure consists of those rules in effect according to City Council policy (State law and Robert's Rules, to the extent applicable to a public legislative body). The following summarizes the most frequently used actions.

1.3.4.1 Council Members and staff shall:

1.3.4.1.1 Work earnestly to preserve appropriate order and decorum during all meetings.

1.3.4.1.2 Discourage side conversations, disruptions,
interruptions or delaying efforts.

1.3.4.1.3 Limit the use of personal electronic devices to urgent personal matters while seated at the dais during
Council meetings.

1.3.4.2 Members of the public and/or Council Members demonstrating rude, boisterous, or profane behavior will be called to order by the Presiding Officer. If such conduct continues, then the Presiding Officer may call a recess, request the removal of such person(s) from the Council Chamber, adjourn the meeting, or take such other appropriate action as permitted by the Brown Act.

1.3.4.3 Only the City Council, staff, Designated Representatives, and those authorized by the Presiding Officer shall be permitted to sit at the Council or staff tables.

1.3.4.4 Enforcement of order:

1.3.4.4.1 The Police Chief or his/her designee shall act as the Sergeant-at-Arms.

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1.3.4.4.2 Any Council Member may request the Presiding
Officer to enforce the rules of protocol. Upon motion
and majority vote, the Presiding Officer shall be
required to do so.

1.3.5 BEHAVIOR AND CIVIL DISCOURSE POLICY
The City encourages the willingness to speak up and to listen within a framework of respect and understanding. Toward that end, the Council has adopted Resolution No. 49-2507-19, a Resolution of the City Council of the City of Morro Bay, California, Pledging to Follow Best Practices of Civility and Civil Discourse in All of Its Meetings, both on the part of any public comment as well as any comments from the members of the City Council. Those principles were crafted by the League of Women Voters of San Luis Obispo County, and are memorialized on Page 37 of this document.

1.3.6 VOTING PROCEDURES

1.3.6.1 If a Council Member, who is present at a meeting and not precluded from voting due to a conflict of interest abstains, that abstention will be construed as a vote on the prevailing side. If there is a tie vote, not counting the Council Member who abstained, then there is no prevailing side.

1.3.6.2 No ordinance, resolution or motion shall be passed or become effective without receiving the affirmative vote of at least three non-abstaining Council Members.

1.3.6.3 A conflict of interest shall be declared whenever appropriate and in compliance with State law and the Council Member will disclose the nature of the conflict of interest, step down and shall not make, participate in making, or influence the decision.

1.3.6.4 A vote may not be changed by a Council Member after the vote announcement by the Presiding Officer or City Clerk; provided, that with the consent of the City Council a correction of the vote may be made.

1.3.6.5 If required for Council or public clarification, the City Clerk shall restate the motion prior to the vote or request the Presiding Officer to restate the motion.

1.3.6.6 Voice voting is the preferred method for recording Council votes.

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1.3.6.7 A roll call vote may be taken at the discretion of the Presiding Officer. The City Clerk will call the roll for the roll call vote in the following manner: 1) Maker of the motion; 2) Member who seconded the motion; 3) Additional Council Members in
alphabetical order by last name; and, 3) Mayor last. The City Clerk shall state for the record the name of any Council Member who is recused or has abstained.

1.3.6.8 General consent votes may be taken at the discretion of the Presiding Officer, if there are no negative votes or objections by Council Members.

1.3.6.9 Upon the request of any Council Member, the ayes and noes shall be taken and recorded on any vote.

1.3.6.10 The ayes and noes shall be taken upon the passage of all ordinances and resolutions and entered upon the journal of the proceedings of the Council.

1.3.6.11 Following the vote, the Presiding Officer or City Clerk shall announce whether the questions have been carried or defeated.

1.3.6.12 Tie votes: If a tie vote occurs, then the Council is required to continue the item by majority vote or make motions until an action receives three affirmative votes.

1.3.6.13 The Presiding Officer may publicly explain the effect of the vote for the audience or may direct a member of the staff to do so.

1.3.7 PUBLIC COMMENT (WRITTEN AND ORAL)
Members of the public may address the City Council in a variety of ways. Written comments on agenda items are encouraged. As a courtesy to the Council, citizens are encouraged to present written comments at least one day prior to the meeting.

Comments may be hand-written or submitted via email to
[email protected]. This provides the Council with a greater opportunity to review and consider issues and/or concerns expressed in written communications prior to a meeting. Comments received before 10:00 a.m. on the day of the meeting will be distributed to City Council Members and published on the City website.

Written material distributed at the meeting will be made a part of the public record.

If the material is too voluminous for Council to review during the meeting or is new material not previously considered, then Council may at its discretion continue the item to a future meeting. The following are guidelines for providing public comments:

1.3.7.1 During Public Comment period, at the beginning of every meeting, members of the public may address the City Council

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on items that are not on the printed agenda or that are on the agenda when the individual cannot be present when the item is considered per the agenda. For Consent Items, Public Hearing Items, and Business Items, the Presiding Officer will invite comments from the public in support of, or in opposition to each specific Agenda Item following the staff report and any questions from Council to Staff. Those individuals desiring to speak may be asked to fill out a speaker’s slip, but a speaker cannot be required to fill out a speaker’s slip. They are located on the table at the entrance to the Council Chambers (Veterans Hall).

1.3.7.2 For all hybrid (in-person and via teleconference) meetings, those requesting to speak in-person will be called first, then those requesting to speak via teleconference will be called. All requests to speak should be submitted prior to the start of the Public Comment period.

1.3.7.3 At the discretion of the Mayor or Presiding Officer, General Public Comment at the beginning of the meeting may be limited to 30 minutes. After that, General Public Comment will be reopened at the conclusion of all Business Items for any remaining speakers wishing to speak to items not on the agenda.

1.3.7.4 Individuals desiring to speak shall:

1.3.7.4.1 Address the Council from the podium after giving name and City of residence. Speakers may decline to
provide their name if so desired. Speakers shall direct their comments to the Council, not the audience.

1.3.7.4.2 Limit comments to three minutes or to the interval specified by the Presiding Officer. To provide an
opportunity for all to speak during a meeting, the
maximum time permitted for each speaker to speak
on a particular matter may be reduced by the
Presiding Officer when a large number of speakers
wish to address the Council on that matter. The
Presiding Officer, with the majority of Council
Members, may reopen the public comment period to
hear additional public comment. Council Members
may ask questions of anyone present without
reopening the public comment period. Speakers
may speak only once on a given issue and may not
cede their time to another speaker.

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1.3.7.4.3 Each person addressing the City Council shall do so in an orderly manner. and the Council respectfully
requests that speakers refrain from making
repetitious, slanderous or irrelevant remarks, or
engaging in any other disorderly conduct which
disrupts, disturbs, or otherwise impedes the orderly
conduct of the Council meeting. Any person who so
disrupts the meeting may, at the discretion of the
Presiding Officer or a majority of the City Council
present, be subject to ejection from that meeting.

1.3.7.4.4 Persons addressing the Council shall address the Council as a whole and shall not engage in a dialogue
with individual Council Members, City staff or
members of the audience. No questions shall be
asked of a Council Member or a member of City staff
without first obtaining permission of the Presiding
Officer. The Presiding Officer shall determine
whether, or in what manner, an answer will be
provided. Any person violating this rule while
addressing the Council shall be called to order by the
Presiding Officer.

1.3.7.5 Except as otherwise permitted by the Brown Act, action may not be taken on issues not listed on the agenda. Staff may be asked to follow-up on such items.

1.3.7.6 Council Members actions

1.3.7.6.1 Council Members may question the person
addressing the Council at the conclusion of the
person’s comments or upon expiration of the
person’s time to speak.

1.3.7.6.2 Council Members shall not engage the person
addressing the Council in a dialogue with the City
Council or City staff but shall confine
communication to a question and answer format
conducted through the Presiding Officer.

1.3.7.6.3 If a member of the audience has addressed the Council on matters which are not on the agenda,
then Council Members shall refrain from extended
discussion of the matter. If a Council Member so
wishes, then the Council Member may seek to have
the City Manager place the matter on the next
agenda in accordance with this policy.

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1.3.7.7 Upon violation of the rules of order and decorum established in Section 1.3.2 – 1.3.7 of this manual, the procedure to enforce the rule shall be as follows:

1.3.7.7.1 Warning: The Presiding Officer shall request a person who is violating the rules of decorum cease
such conduct. If, after receiving a warning from the
Presiding Officer, the person persists in disturbing
the meeting, the Mayor shall order the person to
leave the City Council meeting. If the person does
not leave the meeting, then the Presiding Officer may
order any law enforcement officer who is on duty at
the City Council meeting as sergeant-at-arms to
remove the person from the City Council chambers.

1.3.7.7.2 Removal: Any law enforcement officer who is
serving as sergeant-at-arms at the City Council
meeting shall carry out the orders and instructions
given by the Presiding Officer for the purpose of
maintaining order and decorum. Upon instruction of
the Presiding Officer, it shall be the duty of the
sergeant-at-arms to remove from the City Council
meeting any person who is disturbing the
proceedings of the City Council.

1.3.7.7.3 Resisting Removal: Any person who resists removal by the sergeant-at-arms may be charged with a
violation of the rules of order and decorum, as well
as any other applicable ordinance or law.

1.3.7.7.4 Motion to Enforce: If the Presiding Officer fails to enforce the rules of order and decorum set forth in
Section 1.3.2 – 1.3.7, then any Member of the City
Council may move to require the Presiding Officer
to do so, and an affirmative vote of a majority of the
City Council shall require the Presiding Officer to do
so. An affirmative vote of a majority of the Council
may appeal to the entire Council the ruling of the
Presiding Officer that a person be removed from the
meeting, in which event the decision of the Council
majority shall govern and conclusively determine
such question. If the Presiding Officer fails to carry
out the will of the majority of the City Council, then
the majority may designate another Member of the
City Council to act as the Presiding Officer for the

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limited purpose of enforcing the rules of order and
decorum established in Section 1.3.2 - 1.3.7.

1.3.7.7.5 Clearing the Room: If a meeting of the City Council is disturbed or disrupted in such a manner as to make
infeasible or improbable the restoration of order, then the Presiding Officer or a majority of the City
Council may exercise the authority granted in the
California Government Code section 54957.9 by
ordering the meeting room cleared and continuing in
session in the manner authorized by Section 54957.9
of the Government Code.

1.3.8 CONSENT ITEMS
Consent Items are the first items on the agenda. Only items that are routine, relate to implementation of approved budget items or to City operations, or are items to be later set for public hearing are to be placed on the Consent Agenda. Items of significant neighborhood or community public interest should be heard as a Public Hearing or Business Item, and not placed on the Consent Agenda.

1.3.8.1 Minor Questions. A Council Member may ask questions on any item without it being pulled from the Consent Agenda. When a Council Member has a minor question for clarification
concerning a Consent Item that will not involve extended discussion, the item may be pulled for clarification at the beginning of the meeting and the questions will be addressed along with the rest of the Consent Agenda. There should be no objections at this time. Council Members are encouraged to seek clarifications prior to the meeting (whenever possible).

1.3.8.2 No Vote. When a Council Member wishes to pull an item simply to register a dissenting vote, a request should be made that the item be pulled for separate vote without discussion.

Such items will also be handled at the beginning of the meeting along with the rest of the Consent Agenda.

1.3.8.3 Any item may be pulled by a Council Member for discussion.

A member of the public may request the Council to pull an item for discussion during the initial public comment period, but the discretion to pull that item will remain with the Council.

1.3.8.4 Pulled items shall be heard at the close of the Consent Agenda, unless a majority of the Council chooses another time.

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1.3.9 NOTICED PUBLIC HEARINGS
During the pendency of any Public Hearing that is a quasi-judicial proceeding, no Council Member or Planning Commissioner shall engage in an ex parte communication with any “Interested Party” who intends to influence the decision of the Council or Commission in a proceeding, unless the Council Member or Commissioner discloses the ex parte communication on the Council or Commission’s record. “Interested Party” means any individual with an interest in the quasi-judicial proceeding that is greater than the general interest of the public as a whole. The term includes, but is not limited to, parties involved in the proceeding, parties that may be significantly affected by the decision, and nonprofit or public interest organizations and associations with a special interest in the matter regulated. A member of the public at large who expresses a casual or general opinion about a pending proceeding would not necessarily be an "Interested Party." Matters, which are required to be heard in a noticed Public Hearing, shall be conducted in the following manner:

1.3.9.1 Time for Consideration: Matters noticed to be heard by the City Council shall commence in the order provided in the agenda.

Public hearings are the first order of business following the Consent Calendar.

1.3.9.2 Continuance of Hearing: Any hearing being held or noticed or ordered to be held by the City Council may, by order or notice of continuance, be continued or re-continued to any subsequent meeting.

1.3.9.3 Conduct of Hearings: When a matter for Public Hearing comes before the City Council, the Presiding Officer may:

1.3.9.3.1 Call for a report on noticing from the City Clerk.

1.3.9.3.2 Call for a report on written communications received by the City pertaining to the item being heard.

1.3.9.3.3 Request that staff present the staff report and any other relevant evidence. Presentation of the staff
report prior to the formal opening of the Public
Hearing shall not prevent its consideration as
evidence. Any such evidence shall be made a part of
the record of the Public Hearing.

The Presiding Officer shall then recognize the applicants, appellants and their representatives in the cause, who shall be permitted to speak first during the public comment portion of the

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applicable matter for not more than 10 minutes, or the time allowed by the Presiding Officer, to present evidence related to the matter under consideration. The applicants, appellants and their representatives shall address the Council from the lectern after giving their names and the names of the
applicants/appellants they are representing, if different.

The Presiding Officer shall then recognize members of the public. No person may speak without first being recognized by the Presiding Officer. City Council Members who wish to ask questions of the speakers or each other during the Public Hearing may do so. Council Members should be mindful the purpose of the Public Hearing is to obtain testimony, and not to debate the merits of the item under consideration. Council Members should avoid debate and expressions of personal opinion until after the close of the public testimony portion of the Public Hearing. The Presiding Officer shall conduct the hearing in such a manner as to afford due process to all affected persons. For Public Hearings, when 10 or more members of the public desire to speak, the Presiding Officer may request speaker slips to be completed and delivered to the Clerk before the item is considered. Comments shall then be allowed first by those submitting a slip and in the order received by the Presiding Officer. Comments from the public shall be limited to three minutes per speaker for Public Hearings, unless the City Council affirmatively decides otherwise. For Public Hearings that have the potential to be appealed to the California Coastal
Commission, members of the public who desire to receive notice of any further proceedings shall write their name and address on the interested parties list at the back of the room.

The Presiding Officer shall then close the public testimony portion of the Public Hearing. After the public testimony portion of the Public Hearing is closed, no member of the public shall be permitted to address the Council or the staff, except at the discretion of the Presiding Officer or the majority of the Council. Council Members may still, however, ask questions of staff or members of the public. Upon conclusion of Council deliberations and immediately prior to a motion, the Presiding Officer shall formally close the public hearing, which can be accomplished by the Presiding Officer declaring the matter is being brought back to the Council for discussion or other manner to clearly indicate the hearing portion of the matter has concluded. Upon formal closing of the public hearing, no additional public testimony shall be solicited or received without reopening the hearing.

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1.3.9.4 Evidence. All persons interested in the matter being heard by the City Council shall be entitled to submit written evidence or remarks, as well as other graphic evidence. All such evidence presented shall be retained by the City Clerk or appropriate City department, as part of the official record of the proceeding. Prior to declaring the public hearing open, the Presiding Officer may establish a time limit for the entire public hearing and establish time limits for the presentation of each individual speaker.

1.3.10 BUSINESS ITEMS
Business Items follow Consent Items and Public Hearings (if any) on the agenda.

Business Items can include new matters or matters continued from one or more earlier meetings. Opportunity for public comment as discussed in Section 1.3.7 above, will be provided for each Business Item.

1.4 MEETING COVERAGE
The purpose of cablecasting meetings of the Morro Bay City Council is to enhance the awareness and education of the general public regarding the actions and deliberations of the City Council.

1.4.1 Coverage of City Council meetings shall be gavel-to-gavel; whether presented to the public live or taped, Council coverage is not to be edited or subjected to editorial comment.

1.4.2 All City Council meetings shall be cablecast or taped for broadcast, except for meetings or portions of meetings which are closed to the public, or when the majority of the Council directs otherwise.

1.4.3 Cameras used for the gavel-to-gavel coverage shall be operated only by City employees, firms, or persons authorized by the City.

1.4.4 Cameras shall be operated so that they are primarily focused on the officially recognized speaker, and on any visually displayed information they may be showing.

1.4.5 “Reaction” shots will not be permitted.

1.4.6 The City Clerk’s action minutes shall remain the official record of Council proceedings. Other recordings are for convenience and occasionally used when a verbatim transcript is required in legal proceedings. Audio recordings have a 2-year retention and video recordings have a 10-year retention. Meeting minutes are permanent.

1.4.7 As soon as reasonably possible following each Council meeting, but not later than the second regular meeting after, the City Clerk shall include

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a copy of the minutes, thereof, as a Consent Item for the agenda of a regular Council meeting.

1.5 AB 2449SB 707 – TELECONFERENCING REGULATIONS

1.5.1 Quorum Requirement. A quorum of the Council (three members) must participate at a singular physical meeting location identified on the agenda, which must be within the city limits and open to the public. This means that no more than two Council Members may utilize traditional or AB 2449SB 707 teleconference provisions at one meeting. If fewer than three members could not be physically present at the beginning of a meeting, the meeting shall not be called to order.

1.5.2 Limitations on Use. Council Members may participate remotely as a reasonable ADA accommodation or up to five times per year for “Just Cause” under AB 2449as defined by SB 707 a limited number of times per year, depending on which exception was selected, “Just Cause” or “Emergency Circumstances.”

1.5.2.1 Just Cause Exception. This exception may be used in cases ofwhich includes caregiving for a dependent, contagious illness, need related to a physical or mental disability, immuno-compromised family members, medical emergencies, certain military obligations, or official government travel. (limited to two per calendar year)

1.5.2.2 Emergency Circumstances Exception. This exception may be used in cases of a physical or family medical emergency that prevents a Council Member from attending in person. Capped at 20% of the regular meetings within a calendar year or (four (4) City of Morro Bay Council meetings per year).

1.5.3 Each agenda must describe how members of the public may observe or attend the meeting and offer public comment, including a way to attend via teleconference platform. Members of the public must be allowed to make public comments in real time (in-person or through teleconference) during all allotted public comment periods.

1.5.4 Council Members wishing to attend via teleconference must make a request to the Council at the earliest possible opportunity, up to and including at the start of a meeting. Under the Emergency Circumstances Exception, the Council must act by majority vote during the meeting, to approve or deny the request.

1.5.5 Council Members must also provide a “general description” of the circumstances relating to the member’s need to participate remotely, which need not be more than 20 words or disclose any personal medical

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information. The legal basis for teleconference participation must be listed in the meeting minutes.

1.5.6 Council Members must disclose, before any action is taken, whether any individuals 18 years of age or older are present in the room at the remote location, and the general nature of the member’s relationship with the individual. This disclosure must take place during the meeting itself, even if the notification and description were given in advance.

1.5.7 Council Members participating remotely must participate through both audio and visual technology.

1.5.8 All votes taken at a meeting where a Council Member attends by teleconference, under the provisions of AB 2449SB 707, must be taken by roll call vote.

1.5.9 Meeting proceedings must be suspended in the event of a disruption that prevents the transmittal of meeting video and audio to the public, or prevents the receipt of public comment on the teleconference platform, until meeting audio and video service are restored.

1.6 PUBLIC USE OF VISUAL AIDS AT COUNCIL MEETINGS
Members of the public who desire to utilize electronic visual aids to supplement their oral presentations are encouraged to provide display-ready material to the City Clerk by 12;00 noon on the day of the meeting. No data provided to the City Clerk later than 12:00 noon will be accepted. Staff may recommend that the presenter produce hard copies of their materials and present the copies to Council during their presentation.

1.6.1 Electronic presentations must be provided in a format that can be read on a standard computer running Microsoft Windows or Microsoft Office.

1.6.2 Upon receipt, the City Clerk will promptly transmit electronic visual aids to the City’s Information Technology Division for a determination as to whether the material is free of viruses.

1.6.3 Staff shall preload and queue the electronic visual aid in the City’s media system and display it when the public member is called upon to speak.

1.6.4 Members of the public shall not be permitted to connect equipment, devices, or storage media directly to the City’s computer system during a live Council meeting.

1.6.5 Members of the public shall not be permitted to access the internet from the City’s computer equipment.

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1.6.6 Nothing in this Policy is intended to warrant or otherwise guarantee that electronic visual aids will be successfully displayed at a Council or Advisory Body meeting. Members of the public are urged to have hard copies of their presentations available in the event a media system malfunction occurs.

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CHAPTER TWO

COUNCIL SALARY, BENEFITS AND REIMBURSEMENTS
Council salary. financial benefits and reimbursements are established by Council action and in conformance with State law, the MBMC, and duly adopted and effective resolutions.

Below is a description of the same but may not include all that are applicable.

2.1 SALARIES FOR MAYOR AND COUNCIL MEMBERS
Compensation for services rendered by the Mayor and Council Member, in an official capacity, shall be provided in accordance with State law and the MBMC.

The Citizens Finance Advisory Committee will be asked every 4 years, starting with 2020, to provide the Council a recommendation on whether any changes should be made to that compensation.

2.2 RETIREMENT, MEDICAL, DENTAL, VISION, AND LIFE INSURANCE The Mayor and Council Members are required to participate in P.A.R.S. retirement.

The City shall pay a contribution to P.A.R.S. equal to 1.5% of salary. The City shall pay, in full, the cost of the Mayor’s and Council Members’ participation in lowest cost medical plan (self-only), dental, vision, and life insurance.

2.3 ACCESS TO COMMUNICATIONS / TECHNOLOGY SYSTEMS
The City will provide each Council Member with equal and appropriate communications, technological devices and training to facilitate their public service and within the confines of the Information Technology (IT) standards for hardware and software specifications. The City’s IT Usage Policy, which is available for Council Member review upon request, applies to Council Member use of these devices.

2.3.1 TELEPHONES
Upon request, the City will provide each Council Member with a City-owned cell phone to use solely for City business communications during their term of office.

2.3.2 LAPTOP COMPUTERS & REMOTE ACCESS POLICY
The City will provide each Council Member, at their request, with a laptop computer or iPad and related City-standard software for use while in office. These laptop computers and software will be upgraded or replaced pursuant to the City’s computer replacement policy. Council Member access and use of the City’s information technology is subject to all City guidelines concerning the use of its information technology resources. The most important of these are:
 The City information systems exist solely for the purpose of conducting City business, not intended for personal use.

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 All data (including electronic mail messages) is owned by the City and subject to disclosure.
 All software and hardware installations should be made by IT staff on City-owned devices only. Except for screensavers, personal software is not allowed on City workstations; and all application software must be owned by the City and used in compliance with all software licensing agreements.

2.3.3 SECURITY
Each Council Member shall have a uniquely assigned user name and password for security purposes. While this cannot guarantee privacy, confidentiality, or data security, it is an important component of the City’s overall system protection.

Passwords should never be shared with others.

2.3.4 ELECTRONIC MAIL (E-MAIL)
Council Members will have access to the City’s electronic mail (Email) system that will allow Email communication internal to the City and with others via the Internet. Email correspondence sent and received by members of the City Council are public records and subject to disclosure.

2.3.5 COUNCIL MEMBER RESPONSIBILITIES
Council Members are responsible for using City information technology resources in accordance with the City’s normal policies, procedures and guidelines.

2.4 PROFESSIONAL DEVELOPMENT
The Mayor and each Council Member shall be reimbursed for normal and customary business expenses as follows:

2.4.1 BUSINESS TRAVEL EXPENSE AND CONFERENCE

REGISTRATION
The Mayor and each Council Member shall be reimbursed for normal and incidental expenses and for costs of professional development and educational conferences designed to improve understanding of and proficiency in municipal affairs. Such reimbursement shall be for out-of-county expenses only and shall be reimbursed in accordance with accepted City Travel Guidelines.

2.4.1.1 Authorized Expenses. City funds, equipment, supplies (including letterhead), titles, and staff time must only be used for authorized Citybusiness. Expenses incurred in connection with the following types of activities generally constitute authorized expenses, as long as the other requirements of this section are met:

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 Communicating with representatives of regional, state and national government on City-adopted positions.
 Attending educational seminars designed to improve
official’s skill and information levels.
 Participating in regional, state and national organizations whose activities affect the City’s interests.
 Recognizing service to the City (i.e. thanking a longtime employee with a retirement gift or celebration of nominal value and cost).
 Meetings such as those listed above for which a meeting stipend is expressly authorized under this section.

All other expenditures require prior approval by the City Council, including international and out-of-state travel.

2.4.1.2 Expenses Not Eligible for Reimbursement.
 The personal portion of any trip.
 Political or charitable contributions or events.
 Family expenses, including partner’s expenses, when
accompanying official on City-related business.
 Entertainment expenses, including theater, movies, sporting events (including gym, massage and/or golf related
expenses) or other cultural events.
 Alcohol/personal bar expenses.
 Except as provided in 2.4.2 and .3, personal automobile expenses.
 Personal losses incurred while on City business

2.5 CITY BUSINESS AND MILEAGE REIMBURSEMENT
The Mayor and each Council Member shall be reimbursed as follows:

2.5.1 CITY BUSINESS
For costs incurred in connection with official City business, the Mayor and Council Members shall be reimbursed for in-county expenses, including meals, tickets, periodicals, dues, subscriptions, and similar miscellaneous expenses, if receipts for those expenses are provided.

2.5.2 MILEAGE
For official travel within the County of San Luis Obispo, reimbursement shall be made upon submittal of an official mileage expense form.

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2.5.3 TRANSPORTATION
When attending conferences or meetings that are of such distances it is more economical to take commercial air fare, if an official drives his/her car to such meetings, then commercial air fare will be paid and not automobile mileage.

Government and group rates must be used when available.

2.4.3.1 Airfares that are reasonable and economical shall be eligible for purposes of reimbursement.

2.4.3.2 Automobile mileage is reimbursed at IRS rates in effect at the time of travel. Those rates are designed to compensate the driver for gasoline, insurance, maintenance, and other expenses associated with operating the vehicle. This amount does not include bridge and road tolls which are also reimbursable.

2.4.3.3 Car Rental rates that are reasonable and economical shall be eligible for purposes of reimbursement.

2.4.3.4 Taxi and shuttle fares may be reimbursed, including a 15% gratuity per fare, when the cost of such fares is equal or less than the cost of car rentals, gasoline and parking combined, or when such transportation is necessary for time-efficiency.

2.5.4 LODGING
Lodging expenses will be reimbursed or paid for when travel on official Citybusiness reasonably requires an overnight stay. If such lodging is in connection with a conference, then lodging expenses must not exceed the group rate published by the conference sponsor for the meeting in question if such rates are available at the time of booking. Travelers must request government rates, when available. If the group rate is not available, then reimbursement at the IRS rate in effect at the time of travel shall apply.

2.5.5 MEALS
Actual expenses shall be reimbursed subject to the maximum per diem for the mean as set by the IRS rate in effect at the time of travel. (Cal. Gov’t. Code 53232.2) and Publication 1542 at www.irs.gov). The City will not pay for alcohol/personal bar expenses.

2.5.6 MISCELLANEOUS EXPENSES
Officials will be reimbursed for actual telephone, fax, and parking expenses incurred for City-business. Telephone bills should identify which calls were made for City-business.

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2.5.7 CASH ADVANCE POLICY
From time to time, it may be necessary for an official to request a cash advance to cover anticipated expenses while traveling or doing business on the City’s behalf.

Such request for an advance should be submitted to the City Manager ten working days prior to the need for the advance with the following information:

1. The purpose of the expenditures.

2. The benefits of such expenditures to the residents of the City.

3. The anticipated amount of the expenditures(s) (for example, hotel rates, meal costs, and transportation expenses).

4. The dates of the expenditure.

Any unused advance must be returned to the City within five working days after the official’s return, along with an expense report and receipts documenting how the advance was used. In the event the City Manager is uncertain as to whether a request complies with this policy, the official must seek resolution from the City Council.

2.5.8 CREDIT CARD USE POLICY
For travel expenses the preference is for Council Members either to (i) submit a reimbursement request upon return (with the proper forms completed and receipts attached) or (ii) request a payment advance for travel, whenever it is not possible to have expenditures charged directly to the City or utilize the City Clerk/City Manager’s credit cards for travel and accommodation arrangements. If an advance is made, then receipts are required for all expenditures, as is return of the unspent portions of the advance. It is understood there may be circumstances where a Council Member cannot prepay for expenditures. In such cases, with approval through the City Manager, a credit card will be ordered in the Council Member’s name. The credit card may only be used for authorized expenditures during the authorized travel.

2.5.9 EXPENSE REPORT CONTENT AND SUBMISSION DEADLINES
All cash advance expenditures and expense reimbursement requests must be submitted on an expense report form provided by the City. That form shall include the following advisory:
“All expenses reported on this form must comply with the City’s policies relating to expenses and use of public resources. The information submitted on this form is a public record. Penalties for misusing public resources and violating the City’s policies include loss of reimbursement privileges, restitution, civil and criminal penalties as well as additional income tax liability. “

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Expense reports must document that the expense in question met the requirements of this Policy. Officials must submit their expense reports within 10 working days after an expense has been incurred, accompanied by receipts documenting each expense. Restaurant receipts, in addition to any credit card receipts, are also part of the necessary documentation.

Inability to provide such documentation within 10 calendar days after travel may result in the expense being borne by the official.

In the event the official does not attend the trip and non-refundable expenses have been incurred for registration, lodging or travel, the non-attending official shall submit a written explanation of the reasons for non-attendance to the City Manager.

The City Manager shall determine if the public funds advanced must be reimbursed to the City. Any decision of the City Manager may be appealed to the City Council.

2.5.10 REPORTS TO CITY COUNCIL
At the next regular City Council meeting, the Mayor and City Council shall briefly report on the meetings attended by that person at City-expense. If multiple officials attended, then a joint report may be made.

2.5.11 COMPLIANCE WITH LAWS; VIOLATION
City officials should keep in mind that some expenditures may be subject to reporting under the Political Reform Act and other laws. All City expenditures are public records subject to disclosure under the Public Reports Act and other applicable laws. Use of public resources or falsifying expense reports is a violation of this Policy and may result in any or all of the following: 1) loss of reimbursement privileges, 2) a demand for restitution to the City, 3) the City’s reporting the expenses as income to the elected official to state and federal tax authorities, 4) civil penalties of up to $1,000 per day and three times the value of the resources used, and 5) prosecution for misuse of public resources.

2.6 GENERAL PROCEDURES AND LIMITATIONS
Appropriate budgetary practices and accounting controls shall be established to ensure expenditures and reimbursements are in compliance with approved budget allocations. The Mayor and each Council Member is expected to plan business activities so as to stay within budget. When exceptional circumstances require additional amounts be allocated to accounts, formal Council action shall be required.

2.6.1 ACCOUNTING
An account shall be established in the name of the Mayor and each Council Member with all expenditures charged to the individuals. Receipts shall be submitted within the fiscal year.

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2.6.2 REIMBURSEMENT LIMITATION
The City's adopted Travel Guidelines shall govern all expenditures for non-local professional development and conferences. Those guidelines include all non-local official meals, tuition or fees, transportation to meeting sites, materials and telephone usage.

2.6.3 SPECIAL EXPENSES
For occasions when the Mayor or a Council Member is designated by the City Council to represent the City at special meetings, reimbursement shall be made from the appropriate Travel Expense Account.

2.6.4 HONORARIUM
The Mayor and Council Members are not permitted, by law, to receive an honorarium as a result of his/her participation in a meeting or conference. The Mayor or Council Members may receive income for personal services provided at a meeting or conference, if those services are customarily provided in connection with the practice of her/his bona fide business or profession, unless the sole or predominate activity of the business or profession is making speeches. If the Mayor or Council Member receives such income, then the amount of that income shall be deducted from the amount normally provided by the City for that meeting or conference if the City paid for the Mayor or Council Member's attendance at such meeting or conference.

2.6.5 OTHER GUIDELINES
Any other travel-related issue not specifically governed in this resolution shall be adjudicated in accordance with the City of Morro Bay Travel Expense Reimbursement Policy.

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CHAPTER THREE

COUNCIL POWERS & APPOINTMENTS

3.1 MAYOR - POWER AND DUTIES

3.1.1 The Mayor shall preside at all meetings of the City Council and perform other such duties consistent with the office as may be imposed by the Council or by vote of the people. The Mayor shall be entitled to vote when present but shall possess no veto power.

3.1.2 The Mayor shall be recognized as the official head of the City for all ceremonial purposes.

3.1.3 The Mayor may order flags flown on City property to be lowered to halfstaff in mourning for any member of the community designated to have made significant contributions to the City of Morro Bay, in accordance with recognized customs or practices not inconsistent with State and Federal law.

3.1.4 The Mayor is authorized to sign letters of appreciation to persons and organizations. Copies of those signed letters shall be provided to the Council Members, as soon as feasible.

3.1.5 The Mayor will, at times, receive written communications from recognized organizations or entities whose fundamental purpose is to support cities, such as the League of California Cities, etc. Those communications may be seeking City support for a position the specific organization is taking.

Because of the often short time limits for submitting responses to those communications, the Mayor is authorized, at no cost to the City to submit the requested communication consistent with the subject entity’s recommendation. At the discretion of the Mayor, other written communications supporting previously agreed upon policy issues by the Council, may be sent. A copy of that letter will be provided to the Council at the same time it is transmitted to the addressee. Any Member of the Council can request an agenda item be placed on an upcoming agenda to discuss that communication. The Council can also determine whether to admonish the Mayor for not carrying out the intent of this provision.

3.1.6 When the Mayor is a member of another legislative body, he/she may take actions on matters before that other body as she/he determines appropriate, as long as she/he makes it clear his/her position is that of the Mayor and not the entire City or Council, unless, at a duly agendized public meeting, a majority of the Council has provided direction on the position the Mayor is to take on a matter

3.1.7 The Mayor shall exercise such other powers and perform such other duties as may be prescribed by law or ordinance or by resolution of the Council, except as limited by law.

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3.2 APPOINTMENT OF MAYOR PRO TEMPORE
The appointment of the Mayor Pro Tempore shall be for a one-year term and shall be made at the first meeting in January. For appointment as Mayor Pro Tempore, a Council Member must be on the Council at least one year. Of those who have been on the Council for at least one year, the Council Member who has not yet held the position shall be appointed Mayor Pro Tempore. If there are two Council Members who have not yet held the position, then the Council Member receiving the highest number of votes in the most recent election shall be appointed Mayor Pro Tempore.

If all have held the position, then the Council Member who has held it the least number of times shall be appointed Mayor Pro Tempore. If all Council Members have held it for the same number of years, then the Council Member for whom it has been the longest period of time since holding the position shall be appointed Mayor Pro Tempore.

3.3 FILLING COUNCIL VACANCIES

3.3.1 SPECIAL ELECTION

Measure “R”, a 2006 Citizens Initiative codified as Morro Bay Municipal Code Section 2.06.030 requires the City Council to immediately call a special election to fill any vacant seat on the Council, including the Mayor’s seat. The special election shall be held on the next established election date, as specified in California Elections Code, which is not less than 114 days from the call of the special election. The City Council may appoint an elector who is a registered voter in the City of Morro Bay to fill such vacancy prior to the special election. The appointee shall hold office only until the date of said special election. (Reso. 76-08)

3.3.2 LIMITATION OF COUNCILMEMBER WHO RUNS FOR MAYOR

BEFORE COMPLETING REGULAR TERM
A sitting Council Member is disqualified from nomination for election to the office of Mayor in the next election if the remainder of their Council term after the next election cannot be filled by a vote of the electors on or prior to that election date.

3.4 GENERAL POWERS OF THE COUNCIL
Subject to the provisions of law and the delegation of power to any person, officer, Board, or Commission, the Council shall have the power in the name of the City, to do and perform all acts and things appropriate to a municipal corporation and the general welfare of its inhabitants and that are not specifically forbidden by the Constitution and laws of the State of California.

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3.5 ADMINISTERING OATHS: SUBPOENAS
Each Member of the Council shall have the power to administer oaths and affirmations in any investigation or proceeding pending before the Council. The Council shall have the power and authority to compel the attendance of witnesses, to examine them under oath and compel the production of evidence before it.

Subpoenas may be issued in the name of the City and be attested by the City Clerk.

Disobedience of such subpoena or the refusal to testify (upon other than constitutional grounds), shall be deemed contempt and shall be punishable as provided by the general laws of the State.

3.6 LIMITATIONS
No Member of the Council shall be appointed to or serve as a voting Member of any City Board, Committee, or Authority, whether composed of citizen volunteers, City employees, or a combination of both. This is not to be construed as prohibiting Members of the Council from serving on Committees or Subcommittees of the Council itself, or of agencies representing other local, state or federal government.

3.7 METHOD OF ACTION BY COUNCIL
All action by the Council shall be taken only by means of ordinance, resolution, or oral motion duly made and passed.

Ordinances shall become a part of the MBMC and so remain until amended or voided. All municipal laws relating to taxation or to possible criminal action against an offender shall be in the form of ordinances.

Resolutions shall be serially numbered and filed sequentially in the office of the City Clerk.

Oral motions shall be recorded only in the minutes of any regular or special meeting of the Council.

3.8 ORDINANCES
The consideration and adoption of ordinances shall be in accordance with relevant state law. Ordinances not legally required to have a public hearing shall be set for a public hearing if the subject matter is controversial or of a special nature. In addition, a majority of the City Council may direct the consideration of an ordinance will be set for public hearing.

No ordinance, resolution or motion shall be passed or become effective without receiving the affirmative vote of at least three Members of the Council.

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3.9 ACCEPTANCE OF GRANTS OR DEEDS
The Mayor and Mayor Pro Tempore of the City of Morro Bay are hereby authorized to accept and consent to the recording of any deed or grant conveying any interest in or easement upon real property to the City of Morro Bay.

3.10 LEGISLATIVE ACTION PROGRAM
The City has a legislative program to strengthen local government, promote City goals, and defend the City against legislative actions by state and federal governments that would weaken local government or take away traditional revenue sources. In order to respond promptly and proactively to fast-paced legislative changes, City staff is authorized to take positions on legislation provided the positions are consistent with the Legislative Actions of the City Council, or resolutions or recommendations of the League of California Cities. The Council limits its official communication as a body of the whole in support or opposition to issues impacting the City specifically or local governments generally.

3.11 AMICUS CURIAE PARTICIPATION
The City is frequently requested to join as amicus curiae (friend of court) in cases of statewide significance to cities. Because of the often short time limits for filing amicus curiae briefs, the City Attorney may authorize the City’s name being added to such briefs, at no cost to the City, if the Legal Advisory Committee of the League of California Cities has urged participation and the brief is consistent with the City’s adopted Legislative Platform. The City Council will be advised of that action within 7 days after the City Attorney’s decision.

3.12 ACTIONS AS A MEMBER OF ANOTHER LEGISLATIVE BODY
When a Council Member is a member of another legislative body, he/she may take actions on matters before that other body as she/he determines appropriate, as long as she/he makes it clear his/her position is that of the individual Council Member and not the entire City or Council, unless, at a duly agendized public meeting, a majority of the Council has provided direction on the position that Member is to take on a matter.

3.13 COUNCIL SUB-COMMITTEES
From time to time it may be desirable for the City Council to appoint a subcommittee of the whole to address a particular issue. That is especially the case if the issue requires additional work or research. Per the Brown Act, sub-committees must consist of less than a quorum of the body and serve for a limited purpose and time. Therefore, the City Council sub-committees may consist of two members.

Sub-committees shall report back to the full Council for discussion before any formal action can be taken on the pertinent issue. Establishing a subcommittee

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requires the body to define the purpose, parameters, and duration of the subcommittee. The City Clerk will keep the list of sub-committees and defined description as a record with Council liaison assignments for review annually.

3.14 ISSUANCE OF PROCLAMATIONS, COMMENDATIONS, SPECIAL

RECOGNITION
All requests for proclamations are subject to the review and approval of the City Manager or their designee, or Mayor. Proclamations and commendations are signed by the Mayor, and are prepared in response to the type of recognition requested, with a priority given to recognize individuals, groups, and events of significance to the Morro Bay community. Proclamations and commendations may be presented at a City Council meeting or at an outside event or meeting. Typically, presentation requests are honored at a Council meeting only if a local representative from the requesting party can appear to accept the proclamation or certificate.

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CHAPTER FOUR

THE BROWN ACT AND EMAIL

4.1 APPLICABILITY AND PENALTIES
The entire City organization conducts its business in compliance with the Ralph M.

Brown Act, California Government Code sections 54950 et seq. (the “Act”). The intent of the Act is to ensure deliberations and actions of local public agencies are conducted in open and public meetings. The law provides for misdemeanor penalties for any members of a legislative body who violates the Act. In addition, violations are subject to civil action. A current copy of the Act will be provided to all Council Members assuming office, but the provisions that most directly affect the Council are summarized in this Chapter.

4.2 MAJOR PROVISIONS

4.2.1 APPLICABILITY
The Act applies to Council, City staff and all bodies that advise Council.

4.2.2 MEETINGS
Other than closed sessions, all meetings shall be open and public. All meetings shall follow the requirements of the Act.

4.2.3 AGENDAS
Agendas for regular meetings must be posted 72 hours in advance of the meeting and must meet various requirements. Note: Morro Bay has by resolution established a longer period of posting prior to a regular meeting (120 hours or 5 days.)

4.2.4 ACTIONS
No action shall be taken on any item not appearing on the posted agenda.

Exceptions:

4.2.4.1 An emergency situation exists (determined by a majority of the Council).

4.2.4.2 The need to take action arose subsequent to the agenda being posted (determined by 4/5 of the Council or if less than 4/5 are present, then by unanimous vote) and that action must be taken before the next regular Council meeting or special meeting can be scheduled and properly noticed.

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4.2.4.3 The item was continued to another meeting that was scheduled and posted within five days after the original agenda.

4.2.5 PUBLIC INPUT
The public has an opportunity to address the Council on any item of interest to the public that is within the jurisdiction of the Council. The City has the right to establish time limits on speakers and the total time allocated for a particular issue.

4.2.6 PUBLIC DISRUPTIONS
A portion or all of the public may be removed if willful disruption makes conducting the meeting "unfeasible;" the press may remain unless they participate in the disruption.

4.2.7 CORRESPONDENCE
All writings distributed for discussion or consideration at a public meeting are public records. If a member of the public desires written materials to be fully considered by the Mayor and City Council, then that member is encouraged to submit that written material regarding agendized items to the City Council via email at [email protected] no later than 10:00 a.m. the day of the meeting so that it may be included with agenda correspondence and published on the City website.

Written material distributed at the meeting will be made a part of the public record.

If the material is too voluminous for the Mayor and Council to review during the meeting or is new material not previously considered, the Council may, at its discretion, continue the item to a future meeting.

4.2.8 CLOSED SESSIONS MAY BE HELD TO DISCUSS:

4.2.8.1 Real Property. The purchase, sale, exchange or lease of real property with the City's negotiator; the real property and the person(s) with whom the City may negotiate must be announced in open session prior to the closed session. All Real Property transactions shall be held in closed session prior to final decision in open session and Council shall be provided with a copy of the draft real property agreement.

4.2.8.2 Litigation pending or a significant exposure to litigation, or the decision to initiate litigation; the litigation or title must be identified in open session prior to the closed session unless the Council states that to do so would jeopardize its ability to conclude existing settlement negotiation or effectuate service of process.

4.2.8.3 Compensation (salaries and benefits) of employees; to review its position and instruct designated representatives.

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4.2.8.4 Personnel: The appointment, employment, evaluation of performance, or dismissal, of a public employee, or to hear a complaint against an employee, unless the employee requests a public hearing.

4.3 SPECIAL MEETINGS
Special Meetings may be called by the Mayor or a majority of the Council, with strict notification requirements delivered to the media and Council 24 hours before the time of the meeting.

4.4 EMERGENCY MEETINGS
Emergency meetings may be called without the normal 24-hour notice and posting requirements if prompt action is required due to the disruption or threatened disruption of public facilities. Only work stoppages, crippling disasters or other activities that severely impair the public health and/or safety qualify for emergency meetings.

4.5 ELECTRONIC MAIL (EMAIL), THE PUBLIC RECORDS ACT AND THE

BROWN ACT
City email is no less a part of “official city business” than any other written correspondence, and there is no expectation of privacy for City email messages.

Good judgment and common sense should therefore prevail at all times regarding its appropriate use.

City email is subject to the requirements of the Brown Act and is subject to disclosure under the Public Records Act. The Brown Act does not prohibit the use of email to make individual contacts between Members of the Council, or the public or staff. However, great care should be taken to avoid the use of email to contact a majority of the Council, either individually or serially, “in a connected plan to engage in collective deliberation on public business.”
City emails are generally intended to fulfill the same general function as ordinary daily verbal communications among City Council and City staff and are generally considered “transitory” documents (work-in-progress), and therefore are generally not subject to records retention requirements. For file management and storage purposes, such City email messages should only be retained for as long as needed.

In most instances this means deleting messages as you have read them, and shortly after you have sent them.

Some email messages, including any attachments thereto, can be considered official city records, because the content relates in a substantive way to the conduct of the public’s business. Emails that qualify as public records need to be retained by the City. However, they are not retained through the City e-mail system. Those emails

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should be printed as a hard copy or saved electronically in a folder outside the email system, in accordance with the City’s records retention policy. Generally, the sender of the email should be the person responsible for printing and filing it accordingly, but persons responsible for a particular program or project file shall be responsible for retaining all e-mail they send or receive related to that program or project.

It is the responsibility of individual City Council Members, employees and their department heads to determine if email is an official City-record that must be retained in accordance with the City’s record retention policy. The City Attorney will assist in making such a determination. Preliminary drafts, notes or interagency or intra-agency memoranda that are not retained by the City in the ordinary course of business are generally not considered to be official City records subject to disclosure. City Council Members and employees are encouraged to delete documents that are not otherwise required to be kept by law or whose preservation is not necessary or convenient to the discharge of your duties or the conduct of the city’s business.

Periodically, the City receives requests for inspection or production of documents pursuant to the Public Records Act, as well as demands by subpoena or court order for such documents. In the event such a request or demand is made for e-mail, and the City Council Members or employees having control over such e-mail, once they become aware of the request or demand, shall use their best efforts, by any reasonable means available, to temporarily preserve any e-mail that is in existence until it is determined whether such e-mail is subject to preservation, public inspection or disclosure. The City Clerk shall be contacted regarding any such emails within the City Council Member or employee’s control.

Council Members are assigned a City electronic messaging account, such as an email account. To the extent feasible, City issued accounts shall be used to conduct City business. Limited use of a private device for public business is permissible, but not encouraged, and public records on such devices are subject to the Public Records Act.

Electronic communications regarding City business may be subject to the City’s official records retention policies and the Public Records Act, even if those electronic communications are or were created, sent, received or stored on a Council member’s personal electronic messaging account or device. To the extent a Council Member uses private, non-City electronic messaging accounts or devices, in compliance with State law they will be asked to locate any such electronic communications on those non-City accounts or devices and provide the communications to the City Clerk in the event a Public Records Act request is made seeking the communication(s).

If a Council Member receives an electronic message regarding City business on his/her personal electronic messaging account or device, or circumstances require such person to conduct City business on a personal account or device, then the

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Council Member is strongly encouraged to either: (a) copy (“cc”) any communication from the Council Member’s personal electronic messaging account to his/her City electronic messaging account; or (b) forward the electronic communication to his/her City account as soon as feasible after the original creation or transmission of the electronic communication. That practice facilitates efficient and prompt responses to Public Record Act requests.

4.6 PRIVATE SOCIAL MEDIA AND DIGITAL COMMUNICATIONS
The City does not provide or support individual social media accounts for Council Members. Council Members that maintain personal social or other digital media accounts should be aware that, similar to City email or any other written or recorded communication related to the official conduct of City business, digital communications, social media posts and messages by public officials regarding matters that are before the City for action or within City jurisdiction can be “official city business” subject to laws and policies regarding freedom of speech, record retention and production, and public transparency. Those laws and policies include, but are not necessarily limited to, the California and United States Constitutions, the California Public Records Act, the Ralph M. Brown Act, and the City’s Records Retention policies.

It is the intent of this policy to ensure that Council Members are aware that digital and social media communications regarding public business that are conducted using private networks, accounts, or devices may be subject to the same laws as other records of public business and that mishandling of such communications in violation of applicable laws, may subject Council Members and the City to liability under applicable laws, and may result in censure of a violating Council Member.

This policy is intended to establish parameters for the management of public, private and political digital and social media accounts in compliance with applicable laws and in a manner that avoids the potential for public confusion regarding public, private and campaign related digital and social media activities of Council Members.

A Council Member or Mayor participating in digital or social media communications shall maintain and clearly delineate between separate accounts for official, and personal or campaign statements, taking precaution not to convey personal or campaign communications in a manner that suggests such communications represent the position of the City or the City Council as a whole.

To avoid ambiguity, all statements, headings, profile pictures, or biographies on personal or campaign accounts shall not be made in the name of the position to which the Council Member or Mayor was elected, shall clearly reflect that content on such account does not represent the official positions of the City or the City Council, and shall not display the City logo or any other official City mark or title.

There is no California law requiring public officials to use only government accounts to conduct public business, but there should be no expectation of privacy if personal accounts are used to conduct public business.

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Statements on official sites and accounts shall contain only official City positions, policies, or announcements, and all contents and messages communicated on such accounts are subject to the California Public Records Act. If a Council Member receives an electronic communication regarding City business on a personal account, they should copy that information to their official City account, for transparency and ease of access for public records requests.

Digital records relating to public business are required to be stored in a manner capable of maintaining the record for the applicable retention period, including through the use of highlights, bins, or archives for temporary and disappearing stories, reals, posts, or otherwise. Likewise, public officials should avoid deleting comments or blocking individuals on official pages or sites they maintain. In the event that a harassing, or discriminatory content that the council member believes constitutes an imminent threat or violation of harassment or discrimination laws, a copy of the deleted or removed content shall be saved or retained consistent with the City’s Records Retention Policies and this Policy. Social media content should be treated the same as any written document and retained in accordance with the City’s Retention Schedules or a minimum two-year period required under California Government Code.

4.7 SOCIAL MEDIA AND BROWN ACT COMPLIANCE
To avoid any violations of the Brown Act, consistent with the update provided by AB 992 which has been extended by SB 707, Council Members are permitted to use a social media platform to engage in conversations or communications on matters within the subject matter jurisdiction of the Council: (a) to answer questions, (b) to provide information to the public, and (c) to solicit information from the public. However, a majority of Council Members may not use social media to “discuss among themselves” official City business. AB 992/SB 707 broadly defines the meaning of “discuss among themselves” to include any “communications made, posted, or shared on an internet based social media platform between members of a legislative body, including comments or use of digital icons that express reactions to communications made by other members of the legislative body.” AB 992/SB 707 prohibits a Council Member from communicating directly with the social media of any other member on a subject within the jurisdiction of the Council.

This social media guidance applies to all internet based social media platforms that are “open and accessible to the public,” including, but not limited to, blogs, podcasts, Snapchat, Instagram, Facebook, X, Nextdoor, and Reddit.

4.8 OTHER PROVISIONS
The Act provides many other restrictions and requirements; this chapter is intended merely as a Council summary and overview of the Act, and nothing in this Chapter supersedes the provisions of the Brown Act. Since State law constantly changes, it

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is important to ensure you have the latest information. Please check with the City Attorney and/or the City Clerk for more information.

CHAPTER FIVE

COUNCIL/STAFF RELATIONSHIPS AND CONDUCT

5.1 INTENT
The City Council as a whole retains full power to accept, reject, amend, influence, or otherwise guide and direct staff actions, decisions, recommendations, workloads and schedules, departmental priorities, and the conduct of City business.

This chapter addresses the relationship and conduct between the Mayor and Council Members and staff with the intent of the Mayor and Council to: 1) affirm governing shall be by will of the collective Council, and 2) establish guidelines for Mayor, Council and staff to ensure orderly, consistent and open City government.

5.2 GUIDELINES FOR COUNCIL MEMBERS
The Mayor and Council shall recognize the primary functions of staff are to execute Council policy and actions taken by the Council, and to keep the Mayor and Council informed.

The Mayor and Council Members should not attend department staff meetings unless requested by the City Manager.

The Mayor and Council Members should have the same information with which to make decisions. Information requested by one Council Member will be shared with all members of the Council.

Concerns related to the behavior or work of a City employee should be directed to the City Manager. Council Members shall not reprimand employees.

Per California Government Code Sections 3201-3209, Council Members should not solicit financial contributions from City staff or use promises or threats regarding future employment. Although City staff may, as private citizens with constitutional rights, support political candidates, such activities cannot take place during work hours, at the workplace, or in uniform.

5.2.1 REQUESTS FOR INFORMATION
The Mayor, individual Council Members, as well as the Council as a whole, shall be permitted complete freedom of access to any information requested of staff, and shall receive the full cooperation and candor of staff in being provided with any requested information, when the law allows that access.

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The Mayor and Council Members shall make routine requests for information through the appropriate department head, who shall then advise the City Manager of such requests. Complex or comprehensive requests for information shall be made through the City Manager.

5.2.2 DIRECTION TO STAFF
The Mayor and Council Members shall make requests for work to be done by City staff through the City Manager. The Mayor and Council Members should not direct the City Manager to initiate any action, change a course of action, or prepare any report without the approval of Council. The City Manager’s responsibility is to advise on resources available and required for a particular course of action as it relates to the direction of a majority of Council.

The Mayor and individual Council Members shall make no attempt to pressure or influence staff decisions, recommendations, workloads, schedules and departmental priorities, except as part of budgetary and goal setting priority sessions and with approval of the Council as a whole.

A Council Sub-committee may be given authority by the full Council to work in conjunction with the City Manager, and his/her designated staff on a particular project or issue. In those instances, any work products will be brought back to the full Council for consideration and action.

5.3 GUIDELINES FOR STAFF
Staff shall recognize its primary function is to execute Council policy and to keep the Mayor and Council informed. Staff shall present the Mayor and Council with all relevant information, as well as alternatives, in an objective, succinct manner.

The City Manager and staff are committed to treating the Mayor and each Council Member equally.

5.3.1 TIMELY RESPONSE
City staff will make every effort to respond in a timely and professional manner to all requests made by the Mayor and individual Council Members for information or assistance; provided, that in the judgment of the City Manager the request is legally permitted (after consultation with the City Attorney) and not of a magnitude, either in terms of workload or policy, which would require that it more appropriately be assigned to staff through the collective direction of the City Council. In terms of making that judgment, the following guidelines should be considered: The request should be specific and limited in scope so staff can respond without altering other priorities and with only minimal delay to other assignments; the request should only impose a "one-time" work requirement, as opposed to an on-going work requirement; and the response to the request should not require a significant allocation of staff resources (generally defined as consisting of more

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than one staff person, or a single staff person working on the issue in excess of 1-2 hours).

5.3.2 DIRECTION FROM COUNCIL
Staff is obligated to take guidance and direction only from the Council as a whole or from the appropriate management superiors as may be the case. Staff is directed to reject any attempts by the Mayor or individual Council Members to unduly influence or otherwise pressure them into making, changing or otherwise suppressing staff decisions or recommendations, or changing departmental work schedules and priorities. Staff shall report such attempts to influence them in confidence to the City Manager, who may inform the Council as a whole of such attempts.

5.3.3 STAFF SUPPORT TO INDIVIDUAL COUNCIL MEMBERS
An exception to the above guidelines may be staff work required in support of a Council Member designated by the City Council to represent the City in an intergovernmental role (e.g., Membership on Joint Powers Authority), or relative to a special assignment (e.g., a special task force).

As noted, above, when a Council sub-committee has been duly authorized by the full Council, staff members may provide information and assistance to the subcommittee, which will report back to the full Council.

5.3.4 INFORMATION DISTRIBUTION
In the interest of treating all members of the Council equally, in cases where a staff response to the Mayor or an individual Council Member request involves written material, the City Manager will provide copies of the material to all other Council Members.

5.3.5 SIGNIFICANT INFORMATION
Any information, service-related needs, or policy positions perceived as necessary by the Mayor or individual Council Members, which cannot be fulfilled per the above guidelines, should be raised by the Mayor or individual Council Member under the "Declaration of Future Agenda Items" category of a regularly scheduled City Council meeting. If so directed by the collective action of the Council, then staff will proceed to complete the work within Council established deadlines.

5.4 USE OF CITY LETTERHEAD
Staff will not prepare correspondence representing the Mayor or a Councilmember’s personal point of view or a dissenting point of view from an official City policy or Council position. If a Councilmember uses her/his title, position, or City letterhead to express a personal opinion, then the letter shall state

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“I am writing this letter on behalf of myself” and, the official City position must also be stated clearly so the audience understands the difference/relationship between the official City position and the viewpoint of the Mayor or that Councilmember. If a letter is written on behalf of the majority of the City Council, then the letter shall state “I am writing this letter on behalf of the City Council.” A copy of any and all correspondence developed by or for the Mayor or a Councilmember on City letterhead shall be provided to the City Manager and the entire City Council.

5.5 USE OF PUBLIC RESOURCES

Members shall not use public resources unavailable to the public in general, such as City staff time, equipment, supplies or facilities, for private gain or personal purposes.

City Council has identified community engagement as a priority of the council.

City Council recognizes that limited meeting spaces are available in the City of Morro Bay. In supporting individual council members’ effort to reach the general public for the overall interest of the City of Morro Bay, council members, Mayor included, are allowed to use city’s meeting facility free of charge for up to six times per calendar year for outreach meetings, including Town Hall, Listening sessions and like, except during the election season beginning 120 days prior to an election to fill a City office, provided those sessions require only limited staff support for facility use. However, during the time period of 120 days prior to an election to fill a City office, a council member who is not running for re-election at that election shall be able to hold such outreach meetings free of charge upon approval of Council through an agendized item at a public meeting. The outreach events must demonstrate a reasonable connection to the city council adopted goals. Council members shall request facility usage through the City Manager.

5.6 COUNCIL MAIL HANDLING
All incoming mail addressed to the Mayor and Council Members will be handled by the City Clerk’s staff in the following manner:

5.6.1 PAPER AND ELECTRONIC MAIL, PUBLIC RECORD.

Both paper and electronic mail addressed to Council Members and delivered to City Hall, or any other City building or facility, or via any City equipment, account, or network, is presumed to be a public record subject to retention and disclosure requirements as set forth in the City’s Records Retention Policy and the California Public Records Act, unless an express legal exemption or privilege applies.

Council Members shall consult with the City Attorney prior to withholding or destroying any document or correspondence received in connection with their service in the City, except as specified herein. Electronic mail is additionally subject to the City’s Electronic Mail policy and Section 4.5. Electronic mail will

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be retained and accessed in accordance with applicable laws and the City’s Records Retention and IT policies.

If City Clerk staff can verify that an email correspondence has been distributed to all Council Members, it will be handled and retained pursuant to the City’s Records Retention Policies but will not be redistributed.

5.6.2 PROCESS FOR PAPER MAIL
All paper mail sent to Council (either as a group or to each Council Member) will be opened, date stamped, scanned and distributed to Council via email as soon as possible. The electronic record will be preserved by the City Clerk’s office in accordance with the City’s Records Retention Policies.

5.6.2.1 Any public correspondence received on behalf of Council that requires staff to follow up with a response on an issue unrelated to a current agenda item will be distributed to Council per Section

5.6.1. Once the written response is prepared by the appropriate department (normally within two weeks), it will be sent to the person who initiated correspondence with the City Council, and all Council Members will receive a copy of the response. Items that require staff follow-up include, but are not limited to, complaints, information requests, service requests, or other similar correspondence. Responses should be provided in the manner they were received (e.g. an email response is appropriate for email received and a written response is appropriate for letters received in the mail).

5.6.2.2 Any public correspondence received on behalf of Council that is related to a current agenda item will be handled via the Agenda Correspondence procedure as stated in Section 1.3.7.

5.6.2.3 Unsolicited mail, advertisements, magazines or journal publications and other “junk mail” will be date stamped and placed in a Council Member’s inbox for pick up. These items will not be scanned or logged.

5.6.3 “PRIVATE, PERSONAL, CONFIDENTIAL” MAIL
Paper mail addressed to an individual Council Member and marked “private,” “personal” or “confidential” shall be date stamped on the envelope or package and shall be logged in by the City Clerk’s staff in a manner that records the date of receipt, method of delivery, sender (if reflected on the face of envelope or package received), and recipient. Staff will notify the addressee personal mail has been received and the original will then be placed in their City mailbox unopened. If mail has not been retrieved from the Council Members mailbox within two business

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days, such mail shall be retrieved by the City clerk’s staff and handled in accordance with Section 5.6.1.

5.6.3.1 Once opened and reviewed by the Council Member, any correspondence that reflects any comment, complaint, inquiry, or request that is or may be related to any matter of City business shall within two business days, be copied as the Council Member deems appropriate, and the original document delivered to the City Clerk for handling in accordance with Section 5.6.3. Personal notes (e.g. birthday or holiday cards) that do not implicate City business need not be provided to staff or retained pursuant to Section 5.6.1.

5.7 COUNCIL CONDUCT AND COMMUNICATION WITH THE GENERAL
PUBLIC; BOARDS, COMMISSION AND COMMITTEES; THE MEDIA

AND AT PUBLIC MEETINGS
Statements made by a Council Member about the City’s official position at a public meeting to the general public or the media should be based on currently adopted Council action. When serving as a primary or alternate Council representative on a board, commission, or committee, statements made by Council Members regarding City policy should reflect the majority opinion of the Council, which is defined by currently adopted Council action via Council vote or consensus.

A Council Member can express a personal opinion contrary to a Council decision or policy as long as the Council Member identifies the statement as a personal view, and they do not state or imply that the statement represents Council opinion. When expressing a personal view, Council Members shall be cautious not to create a bias by making clear that they intend to hear the matter with an open mind and make their decision based on the facts and the law presented at the hearing.

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CHAPTER SIX

ADVISORY BOARD PROCEDURES

6.1 COUNTY OR REGIONAL REPRESENTATION
Annually, the Mayor shall make appointments to a variety of County and/or regional committees and boards. One Member of the Council shall serve as a voting representative and one Member shall serve as alternate. (See 6.5 for appointment procedures). To the best of their ability, Voting Delegates shall reflect the majority view of the Council as a whole, rather than their own personal opinions.

6.2 OTHER COUNCIL REPRESENTATION, SUBCOMMITTEES

6.2.1 COUNCIL LIAISON ASSIGNMENTS
The City Council shall assign a Council liaison to each of the following advisory bodies: Recreation & Parks Commission, Harbor Advisory Board, Public Works Advisory Board, the Citizens Finance Advisory Committee, and the Planning Commission. Council liaisons will also be appointed to the special purpose advisory bodies.

The purpose of the liaison assignment is to facilitate communication between the City Council and the advisory body. The liaison also helps to increase the Council’s familiarity with the membership, programs and issues of the advisory body. In fulfilling their liaison assignment, members should either attend advisory body meetings or watch the meeting broadcasts and present information regarding advisory body meetings to the Council during Council announcements.

Council Members are not participating members of the advisory body, but are there rather to create a linkage between the City Council and the advisory body. In interacting with advisory bodies, Council Members are to reflect the views of the Council as a body. Being an advisory body liaison bestows no special right with respect to advisory body business.

6.3 ROLE OF ADVISORY BODY MEMBERS AT COUNCIL MEETINGS

6.3.1 INTENT
A majority of advisory body members may attend a public Council meeting.

However, none of those members may speak regarding any matter within that member’s advisory body’s subject matter jurisdiction while a majority of members of that advisory body are present. An advisory body may direct one of its members to appear at a public Council meeting to express that advisory body’s perspective on a particular matter reviewed by the advisory body or answer questions from the Council.

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6.3.2 COUNCIL AGENDA REPORTS

6.3.2.1 Recommendation Differences. For those occasions when the City Manager recommendation differs from an advisory body recommendation, the difference should be clearly noted and the recommendations from the advisory body should be included in the staff report.

6.3.2.2 The City Council will meet as determined necessary by the majority of Councilmembers with each of its advisory bodies or the chair of the advisory body.

6.3.3 COUNCIL MEETINGS

6.3.3.1 Advisory bodies will provide written or oral reports to the City Council as requested by the Council and in accordance with the Brown Act.

6.4 ROLE OF CITY STAFF PERSONS
Staff support and assistance may be provided or made available, but advisory bodies do not have supervisory authority over City employees, nor the ability to direct staff’s work. While they may work closely with advisory bodies, staff members remain responsible to their immediate supervisors and ultimately to the City Manager, who is responsible to the Council. The members are responsible for the constructive participation with the advisory body and the chairperson is responsible for committee compliance with applicable policies and procedures.

Staff support includes preparation of a summary agenda in conjunction with the Chairperson, and preparation of agenda reports providing a brief background of the issue, a list of alternatives, recommendations, fiscal impact (if any), and appropriate backup material, if necessary. Members of advisory bodies are volunteers and should be treated with respect and courtesy. Advisory body members should have sufficient information to reach decisions based upon a clear explanation of the issues within their charge. Sometimes members of advisory bodies may request information not related to their area of service. Staff members should, in that case, provide the same level of information and assistance as would be accorded any citizen. If in the judgment of staff, the request goes beyond that standard, then the matter will be turned over to the City Manager. A staff person will be assigned to serve as Secretary, taking minutes as needed.

It is important that advisory bodies wishing to communicate with the City Council do so through adopted or approved Council agenda procedures. Staff members shall assist the advising body to insure appropriate review and that City and State legislation is complied with.

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6.5 APPOINTMENT PROCEDURES
The following procedures shall be the policy of the City Council in regard to appointment of volunteer citizens to the various advisory bodies of the City.

6.5.1 PURPOSE
The purpose of establishing these procedures shall be to insure well-qualified, responsible and willing citizens are given the opportunity to serve the City and participate in the governing of their community. These procedures will apply to all appointments and reappointments to standing advisory bodies. All Advisory Body Members serve at the pleasure of the City Council.

6.6 PROCESS

6.6.1 QUALIFICATIONS

6.6.1.1 The applicant must be a resident and registered voter of the City at the time and during the entire term of appointment, unless excepted by State law or Council-approved special requirements in advisory committee by-laws.

6.6.1.1.1 The applicant must be at least 18 years of age at the time of appointment; provided, that the Council may
appoint one area high school student to an advisory
body, if allowed by the Advisory Body By-Laws and
they meet the other qualification requirements.

6.6.1.1.2 Elected Officials, Officers and Employees of the City of Morro Bay shall not be considered for
appointment, unless otherwise approved
unanimously by the City Council.

6.6.2 TERMS

6.6.2.1 The term of office for each appointee to an advisory body shall be a maximum of four years unless excepted by State law or Council-approved special requirements in advisory committee by-laws. The terms are staggered so that in no event, will all terms on any committee expire in the same year. Incumbents may apply for subsequent terms of service. Terms of Office will expire on January 31, of the specified year.

6.6.2.2 Persons appointed to fill the remainder of a vacated office term may reapply to serve on the same advisory body.

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6.6.2.3 Mid-term appointment to a vacant seat shall not preclude the appointee from serving additional terms.

6.6.2.4 As a general policy, an applicant shall not be appointed to serve on more than one advisory body, except that a member may also serve on one technical or special-purpose committee at the same time. If appointed to another committee, then he/she will be expected to resign from one body upon being appointed to another. The City Council retains the discretion to make exceptions to this policy.

6.6.3 PROCESS

6.6.3.1 Applications are obtained and filed with the City Clerk’s Office.

6.6.3.2 Prior to November 30, of each year, the City Clerk shall advise the City Council of the terms that are due to expire on each advisory board. The City Clerk shall also notify each advisory member whose term is due to expire. Each of these members shall be given the opportunity to apply for reappointment.

6.6.3.3 The City Clerk shall then place an advertisement in the local newspaper, inviting citizens to apply for consideration as an appointment to an advisory board, with instructions regarding the application process.

6.6.3.4 It is recommended that applicants attend at least one meeting of the advisory body applied for prior to the interview with the City Council.

6.6.3.5 The City Council shall, in a noticed public meeting, interview qualified applicants. In making appointments, the Council shall strive for a representative cross-section of both lay and professional knowledge. The Council will act by separate motion on each appointment made. If there are multiple
openings for a specific advisory body, the start and end dates for the respective openings will be communicated to applicants.

6.6.3.6 In the event there are more qualified applicants than openings for an advisory body, the City Council at its sole discretion may appoint qualified applicant(s) on an alternate or standby status for an interim 3-6-month period. Any such applicant designated as an alternative advisory body member would not participate in advisory body meetings, but could subsequently be appointed as a regular advisory body member if a vacancy occurs within the stated 3-6-month period.

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6.6.3.7 The applications of those not appointed will be held for up to one year for consideration in the event of future vacancies.

6.6.3.8 Candidates not appearing for interview before the City Council will be considered for appointment only upon a finding of the City Council by motion the absence arose from excusable neglect or personal difficulties.

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CHAPTER SEVEN

COUNCIL CONFIDENTIALITY POLICY

7.1 PURPOSE AND PROHIBITION AGAINST DISCLOSURE

7.1.1 PURPOSE AND INTENT
In order to keep the City Council fully informed about pertinent legal issues that may impact the City Council’s decision-making, the City Attorney and other attorneys retained to represent the City issue confidential legal opinions and/or conducts closed sessions when authorized to do so by the Brown Act. Unauthorized disclosures of confidential information obtained from such confidential communications harm the City by compromising the City’s negotiating positions, diminishing the willingness of City staff and other Council Members to communicate fully and frankly with the City Attorney, and exposing the City to unwarranted litigation risks and significant damages awards against the City. It is the intent of the Council that the City’s confidential information shall be maintained inviolate and that unauthorized disclosures of such information be deterred and/or censured.

7.1.2 PROHIBITION AGAINST DISCLOSURE
No person in receipt of Confidential Information, as defined herein, shall disclose or cause to be disclosed all or part of any confidential information to any unauthorized person.

7.2 PUBLIC CENSURE FOR UNAUTHORIZED DISCLOSURE
Any Council Member disclosing, or causing to be disclosed, confidential information to any unauthorized person may be subject to public censure by the City Council. Any censure proceeding shall be conducted in accordance with a process established by the City Council and shall, at a minimum, ensure that no public censure will occur unless the accused Council Member has been provided with notice of the accusation of unauthorized disclosure, the facts supporting such accusation, and an opportunity to be heard regarding the allegations.

7.3 DEFINITIONS

7.3.1 CAUSE TO BE DISCLOSED
Failure to exercise due care in maintaining the confidentiality of the Confidential Information, whether verbal or written.

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7.3.2 CONFIDENTIAL INFORMATION

7.3.2.1 Any information within the scope of a duly authorized closed session, whether provided orally or in writing, by any attorney, consultant, staff member or Council Member acting within the scope of the closed session (See Gov’t. Code Section 54963), or

7.3.2.2 Any oral or written communications by or from the City Attorney, Assistant City Attorney, or any retained counsel representing the City’s legal interests containing the attorney’s legal opinions, advice, thoughts, mental impressions or conclusions that are given on behalf of the City.

7.3.2.3 Confidential Information does not include information that is required by law to be reported out of closed session, authorized to be disclosed by a majority vote of the City Council, or otherwise authorized to be disclosed under the law.

7.3.3 UNAUTHORIZED PERSON

7.3.3.1 With respect to confidential information communicated during a closed session, any person, other than a Council Member, not in attendance at the closed session, or

7.3.3.2 Any person to whom the oral or written confidential information is not directed or addressed, or

7.3.3.3 Any person who has a disqualifying conflict of interest in the subject matter of the confidential information.

7.3.3.4 Unauthorized person does not include department heads or staff, when such person have a need to know the confidential information in order to discharge the duties of their position for the benefit of the City.