City Council Regular Meeting - May 26, 2026
1. ESTABLISH QUORUM AND CALL TO ORDER
Public Comments:
Mayor Wixom called the meeting to order at 5:30 p.m. with all members present.
2. PLEDGE OF ALLEGIANCE
Public Comments:
3. REPORTS
Public Comments:
3.a
Closed Session Report
Public Comments:
City Attorney Stack announced the Council had not met in closed session since the May 12, 2026 regular meeting.
3.b
Mayor and Councilmembers' Reports, Announcements and Presentations Public Comments:
3.c
City Manager Reports, Announcements and Presentations
Public Comments:
3.d
Subcommittee Reports - Verbal Update of Current Subcommittee Activities Public Comments:
1. Water Reclamation Facility & Morro Bay / Cayucos Sanitary District JPA Public Comments:
2. Morro Bay Power Plant (Vistra)
Public Comments:
3. Morro Elementary School
Public Comments:
4. RECOGNITION AND PRESENTATIONS
Public Comments:
4.a
Certificates of Recognition for Morro Bay High School students who have completed 80+ hours of community service Public Comments:
The following students were recognized for their oustanding dedication to serving the Morro Bay community:
Aesa Vidati - 80 hours
Ishaan Patel - 80 hours
Willa Turton - 80 hours
Elizabeth Canas - 81 hours
Callum Mehiel - 82 hours
David Zatt - 86 hours
Abigail Ryan - 95 hours
Lianna Gomez - 99 hours
Gabriel Pascual - 100 hours
Kassandra Biscay - 100 hours
Edward Lu - 123 hours
Lucy Duprey - 146 hours
Quinn Heidt - 155 hours
Margaret Appel - 192 hours
Beatrice Appel - 192 hours
Krisha Patel - 211 hours
5. PUBLIC COMMENT
Public Comments:
Jack DePuy, Gala Pride & Diversity Center, appreciated the City's recognition of June 2026 as Pride Month and announced upcoming events.
Linda Winters, Morro Bay, commented on Memorial Day events, provided a Monday Night Dinner update, and voiced concern about the unsafe use of electric bikes.
Margaret Carman, Morro Bay, offered feedback on the May 18th Waterfront Master Plan Community Meeting and urged residents to complete the online survey.
Krista Rupp, Visit Morro Bay, introduced herself as the new CEO/Executive Director and looked forward to building an even stronger working relationship with the City.
Betsy Gaudette-Cross, Morro Bay, offered feedback on the May 18th Waterfront Master Plan Community Meeting.
End of public comment.
Police Chief Watkins announced the Department was rolling out an e-bike safety education and enforcement campaign.
6. CONSENT AGENDA
Public Comments:
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 Wixom opened public comment for items on the Consent Agenda.
Betty Winholtz, Morro Bay, spoke to Items 6.c and 6.d.
End of public comment.
Council Member Landrum pulled Item 6.c.
Motion by
Mayor Wixom
Seconded by
Council Member Luffee
Approve all Consent Agenda items except Item 6.c
Ayes (5)
Mayor Wixom, Council Member Landrum, Council Member Edwards, Council Member Luffee, and Council Member Eckles CARRIED (5 to 0)
6.a
Approval of Minutes
Public Comments:
Approve as submitted.
1. April 21, 2026 - Joint City Council and Citizens Finance Advisory Committee Special Meeting Attachments
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Public Comments
1. Post-Meeting Minutes - Special Joint Council CFAC Meeting_Apr21_2026 - English.pdf
2. May 12, 2026 - Special Closed Session Meeting
Attachments
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Public Comments
1. Post-Meeting Minutes - CCCM_May12_2026 - English.pdf
6.b
Approval of Proclamations
Public Comments:
1. Proclamation Declaring June 2026 as Pride Month
Attachments
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Public Comments
1. Pride Month Proclamation 2026.pdf
6.c
Presentation of Allocation of Water Equivalency Units (WEU) for Fiscal Year (FY) 2026/27 Attachments
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Public Comments
1. 6c SR WEUs FY 26-27.pdf
2. 6c1 Reso 25-26 WEUs FY 26-27.pdf
Community Development Director Singewald provided historical context for the WEU program and explained local agencies are prohibited by state law from imposing growth limitations on accessory dwelling units (ADUs).
Motion by
Council Member Landrum
Seconded by
Council Member Luffee
Adopt Resolution No. 25-26 to allocate 50 WEUs for residential development (30 single-family residential (SFR) and 20 multi-family residential (MFR)) and 65 for commercial development for a total of 115 WEUs for FY 2026/27.
Ayes (5)
Mayor Wixom, Council Member Landrum, Council Member Edwards, Council Member Luffee, and Council Member Eckles CARRIED (5 to 0)
6.d
San Luis Obispo Countywide Regional Homelessness and Affordable Housing Compact and Regional Homeless Service Inventory Attachments
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Public Comments
1. 6d SR - SLO Countywide Regional Homelessness_Affordable Housing.pdf
2. 6d1 Reso 26-26 SLO County Regional Homelessness and Affordable Housing Compact.pdf
3. 6d2 SLO Countywide Regional Homelessness and Affordable Housing Compact.pdf
4. 6d3 SLO County Regional Homeless Services Inventory Final.pdf Adopt Resolution No. 26-26 approving “San Luis Obispo Countywide Regional Homelessness and Affordable Housing Compact” and receive a report from the County of San Luis Obispo’s Homeless Services Division on the Regional Compact and Regional Homeless Services Inventory.
7. PUBLIC HEARING ITEMS
Public Comments:
None.
8. BUSINESS ITEMS
Public Comments:
The Council took a brief recess at 6:11 p.m. and reconvened at 6:21 p.m. with all members present.
8.a
Budget Study Session - Review of Fiscal Year 2026-27 Draft Proposed Budget Attachments
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Public Comments
1. 8a SR FY 2026-27 Proposed Budget Study Session.pdf
2. 8a2 FY 2026-27 Budgeted Revenue and Expenditures by Fund.pdf
3. 8a3 General Fund 10-Year Forecast.pdf
4. 8a4 MeasureQE Fund 10-Year Forecast.pdf
5. 8a5 Water Operating Fund 10-Year Forecast.pdf
6. 8a6 Sewer Operating Fund 10-Year Forecast.pdf
7. 8a7 Harbor Operating Fund 10-Year Forecast.pdf
City Manager Craig and Finance Director Conrad presented the report and, along with other staff members, responded to Council questions.
Mayor Wixom opened public comment for Item 8.a.
Betty Winholtz, Morro Bay, offered comments and raised various questions regarding the proposed budget.
Betsy Gaudette-Cross, Morro Bay, commented on the importance of accountability and cautioned the use of acronyms.
Natallia Merzoyan, Morro Bay, agreed with previous comments.
Courtney Shepler, Morro Bay, spoke to the importance of making sustainable decisions.
Margaret Carman, Morro Bay, urged CFAC review of the proposed budget and offered comments on various items.
Barry Branin, Morro Bay, commented on the need to prioritize the Beachcomber sewer line replacement project.
End of public comment.
Staff responded to questions raised during public comment.
Following discussion, there was majority Council support for the following:
Remove financing for Morro Elementary site acquisition; Reduce Q/E Annual Pavement program funding by $600K;
Defund Assistant to the City Manager position;
Reexamine sales tax, Q/E and transient occupancy tax (TOT) revenue projections; Explore alternative funding for the Housing Element Update; and Encourage the CFAC chair to provide comments on the proposed budget.
No formal action was taken by the City Council.
The Council took a brief recess at 9:00 p.m. and reconvened at 9:08 p.m. with all members present.
8.b
Discussion of Resources for Economic Development and Related Efforts Attachments
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Public Comments
1. 8b SR Discussion of Resources for Economic Development and Related Efforts.pdf City Manager Craig introduced the item for Council discussion about economic development to help inform proposed solutions.
Mayor Wixom opened public comment.
Betty Winholtz, Morro Bay, shared her opinion that economic development efforts belong to the Chamber and Visit Morro Bay.
Susan Stewart, Morro Bay business owner, commented on the City's need for more revenue and importance of creating an atmosphere that supports and encourages businesses.
End of public comment.
Council Members provided individual comments that centered around the following:
Need to increase year-round revenue streams, maintaining economic health of community and municipality Maintain and enhance our small-town character (not about industrialization or growth for growth's sake) Protect, guard and enhance our natural and built environment Create a clean, responsive and welcoming city
Increase hotel occupancy rates
Increase housing stock that attracts young families
Consider a task force or working group to further discuss economic development strategies and implementation No formal action was taken by the City Council.
9. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS
Public Comments:
None.
10. ADJOURNMENT
Public Comments:
The meeting adjourned at 9:34 p.m.
Respectfully submitted,
/s/ Dana Swanson, City Clerk