AGENDA CORRESPONDENCE
RECEIVED BY THE CITY COUNCIL FOR
PUBLIC REVIEW PRIOR TO THE
MEETING
AGENDA NO: 6c
MEETING DATE: May 26, 2026
2 The regulations established by this chapter may effectively limit the number of housing units which may be constructed on an annual basis, but such limitation is necessary to protect the public health, safety and welfare. If water use exceeded supply and adequate water were not available to users, then there could result in increased fire hazard, adverse impacts on commerce, industry and recreation, and the public health, safety and welfare would generally be jeopardized.
D.
By "development that occurs in an orderly fashion" is meant development which can be served by public utilities, including, but not limited to, water resources and delivery systems, which encourages infill in existing developed parts of the city rather than in large undeveloped areas along the perimeter of the community, and which helps to implement the policies and priorities articulated in the city general plan and local coastal program.
E.
Similarly, the public health, safety and welfare is promoted by regulating the pace of new development so that it occurs in an orderly fashion. Such development helps preserve the community's character, enhances the attractiveness of the city, better implements adopted plans, policies and priorities for the physical growth of the city, and tends toward a more efficient use of available resources including but not necessarily limited to water and water delivery systems.
F.
Water equivalency units, as defined herein, are established to assist the city in regulating the addition of new water users to the city's limited water system. One water equivalency unit has been considered as equal to what is used by an average single family residence.
13.20.080
B.
The following types of projects shall not be required to obtain water equivalency units through the water equivalency program:
1. Any projects which involves the demolition of a building where the number of water equivalency units required by the new uses is less than or equal to those credited to the demolished building(s).
2. Any project which involves the replacement of a use or occupancy where the number of water equivalency units required by the new use or occupancy is less than or equal to those credited
3. Any project which is an addition to an existing facility and includes the retrofit of existing fixtures in that existing facility such that the water equivalency units saved by the retrofit is greater than or equal to the water equivalency units required by the new use
3 4. Additions or expansions to residential uses, motels, hotels, campground or other uses for which water equivalency units are based on number of units so long as such additions or expansion does not involve an increase in number of units.
AGENDA CORRESPONDENCE
RECEIVED BY THE CITY COUNCIL FOR
PUBLIC REVIEW PRIOR TO THE
MEETING
AGENDA NO: 6d
MEETING DATE: May 26, 2026
AGENDA CORRESPONDENCE
RECEIVED BY THE CITY COUNCIL FOR
PUBLIC REVIEW PRIOR TO THE
MEETING
AGENDA NO: 8a & 8b
MEETING DATE: May 26, 2026
1 Heather Goodwin
From:
Sent: Tuesday, May 26, 2026 12:17 PM
To: Council
Subject: Item 8a 8b
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Date: May 26, 2026
To: The Honorable Mayor and Members of the City Council, City of Morro Bay From: Ken MacMillan Resident/Property owner/Business Owner Subject: Items 8a 8b-PrioriƟzing Workforce Housing as a Catalyst for Year-Round Economic Survival Dear Mayor and Members of the City Council,
It is becoming increasingly obvious that Morro Bay cannot remain fiscally solid by relying primarily on a tourism economy that peaks just three months out of the year. In the past, our city coffers were stabilized by the power plant, which contributed a significant and reliable amount of money to our municipal budget. Today, that industrial anchor is gone, and we must face our current financial reality head-on.
Economic development is the absolute key to our future financial survival. However, doubling down on tourism is not the answer. Tourism alone will never be enough to sustain our infrastructure, and frankly, to maintain our unique quality of life, most ciƟzens do not want maximum tourism twelve months a year, even if that were possible.
The secret to our long-term survival lies in building a robust, self-sustaining intra-economy. To do that, we must prioriƟze the development of workforce and full-Ɵme resident housing.
Right now, Morro Bay suffers from a lack of criƟcal mass. In any economy, there are populaƟon thresholds required to sustain basic services. Without enough year-round "spenders," a town might not have enough customers to support a dedicated bakery, an optometrist, a hardware store, or a local medical clinic, forcing our current residents to travel elsewhere for daily necessiƟes.By acƟvely zoning for and encouraging the development of workforce housing, we can change this trajectory. Once addiƟonal full-Ɵme residents move in—whether through property purchases or longterm rentals—our local market will finally cross that criƟcal threshold. The increased year-round local demand will suddenly make independent businesses sustainable. This keeps more wealth inside our community, reduces our dependence on volaƟle tourist seasons, and naturally creates more services for our full-Ɵme residents.
If we want to preserve the small-town character of Morro Bay, we must ensure the people who work here, raise families here, and shop here can afford to live here. I urge the City Council to view workforce housing not just as a residenƟal issue, but as our most vital economic development strategy for fiscal survival.
Thank you for your Ɵme, leadership, and dedicaƟon to the future of Morro Bay.
Sincerely,
Ken MacMillan
AGENDA CORRESPONDENCE
RECEIVED BY THE CITY COUNCIL FOR
PUBLIC REVIEW PRIOR TO THE
MEETING
AGENDA NO: 8a
MEETING DATE: May 26, 2026
2 10. Continue replacement of sidewalks, curb and gutter, curb ramps, and portions of roadway where uplifting from street trees has occurred. Where does this money come from in the line items give?
11. What does DRA stand for in Community Development?
12. What is an annual ordinance clean-up package?
THESE QUESTIONS ARE FROM THE STAFF REPORT
1. There is no report from CFAC for Q/E Funds let alone the whole budget. This should not be passed until CFAC sees it according to the Q/E ballot measures.
2. To clarify, “Services” is the word for “contractors?”
3. Interfund Transfers between funds, particularly Harbor Fund should be clocked, i.e. time sheets.
4. Note: the City is paying $23M in personnel but another $12M in Services, adding up to paying people $35M.
5. Interest loan for Morro Elementary is the only option offered. Not even the sale of other City properties that the City Council has identified. This needs to be discussed or re-thought.
6. What is the Quintana Water Line Replacement. It hasn't been mentioned any previous time.
7. What is the Update Engineering Standard Drawings and Specifications at $300,000? Is this a requirement (need) or a desire (want)? Why Water and Sewer Funds in particular?
8. Why is the Bayshore Bluffs project $300,000? Just engineer the bottom of the staircase.
9. If the school district is not willing to pay for an officer on campus, I don't think the City should pay for it ($150,000). There are 2 vice principals to handle problems; they can call in the police if need be. What are the number of documented incidents that justify the need for a full-time person?
10. Two different places in the budge refer to “closing the gap” with only the option to go into the red or don't do it. Aren't there other options, i.e. cut expenses, personnel?
11. Cerrito Peak does not need fire risk reduction at $100,000. The Peak was not on the State Marshall's list. It is an ESH with wild animals (deer) living there.
12. Where or who is the oversight on vehicle replacement? So many vehicles have been purchased the last 4 years and now asking for more.
13. Little is being spent on maintenance in buildings and parks. They reflect the neglect. 3 14. I thought the Utility Discount was only if there was money in the account via donations. I don't remember the City saying it would backfill this account.
15. NO to an assistant manager for economic development. That's another high-level personnel that will put the budget into the red. The population of Morro Bay has remained relatively flat over the last decade, yet the budget has added 17 new positions, up from 100.
That's up 17%. Why?
16. How is that the affordable housing fund is in the red?
NOT IN BUDGET
1. This is the time to reorganize responsibilities before bringing on a new Public Works director
2. Sell Los Osos our wastewater, not State water. Talk to the State Water Board about it.
3. Why isn't the Beachcomber sewer main on the Capital Projects list when you can see the bluff set sliding down into the State Campground and the street manhole lids elevated?
4. Apparently, all the Cloister Fund money has not been spent every year. Why is the excess not been used to redo the bike/pedestrian trail on the west side by the dunes? This has been a request for several years.
AGENDA CORRESPONDENCE
RECEIVED BY THE CITY COUNCIL FOR
PUBLIC REVIEW PRIOR TO THE
MEETING
AGENDA NO: 8b
MEETING DATE: May 26, 2026
Re: Agenda item 8 b May 26th City Council Agenda
Madam Mayor and Members of the City Council,
Item 8 b regarding a discussion of resources for economic development and related efforts is, I presume, a resumpƟon of the item addressed in the November 12, 2025 City Council Agenda and its related staff report authored by Andrea Lueker our interim City Manager at that Ɵme. I recall that the City Council elected to postpone further consideraƟon of the item unƟl such Ɵme as the city had hired a new City Manager and he had the Ɵme to consider the City’s needs and could have a voice in the direcƟon the City should embark on.
Looks like now’s the Ɵme to begin!
In preparaƟon for this leƩer I have reviewed Ms. Lueker’s staff report, referenced above, and the Morro Bay Economic Development Roadmap dated March 2017 that she referenced in the staff report. Wow, quite a comprehensive report totaling 134 pages. While I wouldn’t recommend reading the whole thing, I would suggest that you scan it and see, as I did, that it does give a good inventory of the City’s economic assets. It divides the community into economic zones and idenƟfies each zone’s differing economic needs and unique potenƟal.
It makes recommendaƟons on implementaƟon strategies but is very vague on actual implementaƟon tasks and assignment of those tasks. For example the report idenƟfies three Economic Development IniƟaƟves:
1. Maintain and Enhance Morro Bay’s Small Town Character
2. Create Vibrant Economic Centers
3. Market & Develop Catalyst Sites
All laudable iniƟaƟves and in need of aƩenƟon. The report goes on to assign the first two iniƟaƟves to the Chamber of Commerce and the last to the City and recommends that the City assign an ‘ombudsman for businesses – a point person to work directly…..’ .
That’s not going to work.
That’s been tried before in our fine city with the hiring of an assistant manager who was expected to take on the role of an economic development coordinator as well as other tasks as an Assistant to the City Manager. Just look at this report, the work involved in its implementaƟon recommendaƟons is daunƟng even if the Chamber of Commerce were able to take on the first two recommended IniƟaƟves.
While this report is helpful in idenƟfying strategies for economic development, what it lacks is specificity in WHAT projects can be realisƟcally accomplished and HOW they can be accomplished.
I would suggest that this Council consider establishing a ‘task force’ of ciƟzens and business owners that would be asked to review this Morro Bay Economic Development Roadmap and to prioriƟze specific projects and idenƟfy those projects that promise to be:
1. Feasible in the shortest possible Ɵmeframe
2. Contribute significantly to the City’s operaƟng revenues a. IdenƟfy esƟmated revenues to the City from the project i. Sales tax?
ii. TOT?
iii. Property tax?
iv. Rent from leases?
v. Sales revenue from property sales?
3. Either public/private partnership or public project.
Low hanging fruit that can be considered are properƟes owned by the City such as the Market Plaza property, the Water Treatment Facility property, the Teen Center property, expired leases on the waterfront and others that I may not be aware of but that have the potenƟal to add significantly to the City’s revenue stream.
Other private iniƟaƟves may be idenƟfied, and the task force should come up with ways that those specific projects can be jump started and encouraged. Missing Middle housing should also be a candidate project or projects. They provide shoppers for our local businesses, increased property taxes and supply housing for our middle managers, city employees, teachers, policemen, and firemen.
The crucial mission of this task force will be to map out exactly the steps necessary for each of the recommended projects to be brought to fruiƟon including the requisite seed money, and ulƟmate financing needs and resources. If it’s a publicly financed project, idenƟfy what grants or sources can be brought to the enterprise.
If it’s a public/private project, how is it to be marketed, what ownership structure? (Ground lease, outright sale, terms of the sale or the lease?) How do we provide enƟtlements for the development and what are the parameters of those enƟtlements? Taking as much mystery out of the process and limiƟng the cost and Ɵme to get to an enƟtlement status for the project will make it more aƩracƟve for an investor/developer and will help overcome the reƟcence the city has encountered in aƩracƟng private investment.
Considering the warning to the Council from the Budget Report in the preceding Agenda item:
“The budget reflects a leveling off of City revenues and increasing costs to provide existing levels of service … This dynamic of expenditure growth outpacing revenue growth is unsustainable in the mid-to-long term, and the City will need to seek additional revenue generation to keep pace with community expectations for a full-service city.” This task force’s work will be crucial to the future solvency and economic vitality of our community, and its implementaƟon and its successes would be a legacy for this Council to take pride in.
Sincerely,
Bob Fowler,
MMBS, LLC
Morro Bay Landing
1215 Embarcadero