City Council Regular Meeting - June 23, 2026
1. ESTABLISH QUORUM AND CALL TO ORDER
Public Comments:
Mayor Wixom established a quorum and called the meeting to order at 5:35 p.m. with all members present.
Council Member Edwards announced she was participating remotely under SB 707 "just cause" provisions due to a medical condition and that no other adults were present in the remote location.
2. PLEDGE OF ALLEGIANCE
Public Comments:
3. REPORTS
Public Comments:
3.a
Closed Session Report
Public Comments:
City Attorney Stack announced the Council met in closed session to discuss three items: (2) real property negotiations regarding Lease Sites 122-123/122W-123W at 1205 Embarcadero and Lease Sites 102/102W & 105.1W/105.2W at 1001 Front Street, and (1) Public Employee Performance Evaluation for the City Manager. No reportable action was taken in closed session for any item.
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:
None.
5. PUBLIC COMMENT
Public Comments:
Sal Garcia, Walgreens Store Manager, introduced himself and announced a soft opening on June 30th with a grand opening event planned for July 31st.
Linda Winters, Morro Bay, provided a Monday Night Dinner report and announced men's clothing drive items are being collected at FitnessWorks.
Betsy Gaudette-Cross, Morro Bay, suggested improvements to make the City's website more user friendly; noted agenda items 7b, 7c and 7d were not brought to the Public Works Advisory Board; and offered ideas to allow for reopening City Park restrooms.
Betty Winholtz, Morro Bay, added her observations about consequences of closing the City Park restrooms.
Michelle Leicester-Cadaret, Morro Bay, commented on the need to post information at city entrances on how to report the illegal use of fireworks.
Lynda Merrill, Morro Bay, thanked everyone who ran and those who worked on mid-term campaigns.
End of public comment.
Staff responded to questions raised during public comment.
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 Item 6c, requesting clarification on the total amount spent for paving and number of miles completed.
End of public comment.
Mayor Wixom pulled Item 6.c.
Motion by
Council Member Landrum
Seconded by
Council Member Eckles
Approve all Consent Agenda Items except Item 6.c as submitted.
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. June 9, 2026 - Special Closed Session Meeting
Attachments
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Public Comments
1. Post-Meeting Minutes - CCCM_Jun09_2026 - English.pdf
6.b
Approval of Resolution No. 35-26 Authorizing the Police Department to Accept a Grant Award from the California Accreditation for Public Safety Program and allow the City Manager to Execute all Necessary Documents Attachments
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Public Comments
1. 6b Acceptance of Cal Chiefs Grant Funds for Accreditation Program.pdf
2. 6b1 Reso 35-26 PD CAPS Funding.pdf
to Accept, Implement, and Carry Out the
Terms of the Grant
Adopt Resolution No. 35-26 to authorize staff to accept award of $8,100 grant funds for the purpose of enhancing the Morro Bay Police Department’s impaired-driving enforcement, training, and public-education efforts.
6.c
Approval of SB-1 Funding Project List for Fiscal Year (FY) 2026/27 Pavement Management Plan Project Attachments
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Public Comments
1. 6c SR SB1 Funding.pdf
2. 6c1 Reso 36-26 approving FY26-27 SB1 Project List.pdf Staff responded to Council questions.
Motion by
Mayor Wixom
Seconded by
Council Member Luffee
Adopt Resolution No. 36-26 approving the FY 2026-27 project list for use of Senate Bill 1 (Road Repair and Accountability Act of 2017) Road Maintenance and Rehabilitation Account (RMRA) funds.
Ayes (5)
Mayor Wixom, Council Member Landrum, Council Member Edwards, Council Member Luffee, and Council Member Eckles CARRIED (5 to 0)
6.d
Notice of Completion for Coleman Park Phase 1
Attachments
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Public Comments
1. 6d SR Notice of Completion Coleman Park Ph1.pdf
2. 6d1 Coleman Park Notice of Completion.pdf
Accept the work as performed by J. Bruce Kies, Contractor; and Authorize the City Engineer to execute and record a Notice of Completion for the project.
6.e
Notice of Completion for Morro Creek Bank Emergency Stabilization Project Attachments
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Public Comments
1. 6e SR Notice of Completion Morro Creek Bank.pdf
2. 6e1 Morro Creek Bank Notice of Completion.pdf
Accept the work as performed by David Crye General Engineering Contractor, Inc.; and Authorize the City Engineer to execute and record a Notice of Completion for the project.
6.f
Adopt Resolution No. 37-26 Revising the Terms of the City's Reimbursement Agreement with the California Governor's Office of Emergency Services updating Fire Department Job Classifications Attachments
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Public Comments
1. 6f Mutual Aid Reimbursement resolution update department positions.pdf
2. 6f1 Reso 37-26 OES Reimbursement rescinding resolution 44-24.pdf Adopt Resolution No. 37-26 rescinding and replacing Resolution No. 44-24 and revising the terms of the City’s reimbursement agreement updating the Fire Department job classifications.
7. PUBLIC HEARING ITEMS
Public Comments:
7.a
Resolution Approving Development Impact Fee Study and Nexus Report, Establishing Development Impact Fees, and Adopting the FY 2026-27 Master Fee Schedule Attachments
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Public Comments
1. 7a SR DIF Nexus Study.pdf
2. 7a1 Reso 38-26 FY Adoption of DIF Study and Establishing Fees.pdf
3. 7a1a Exhibit A Development Impact Fee Justification Study_6.22.26.pdf
4. 7a1b Exhibit B Proposed Development Impact Fees.pdf
5. 7a1c Exhibit C FY 2026-27 Master Fee Schedule Proposed Revisions.pdf
6. 7a2 DIF Comparison - Residential.pdf
7. 7a3 DIF Comparison - Non-Residential.pdf
Community Development Director Singewald presented the report and responded to Council inquiries.
Mayor Wixom opened the public hearing and public comment for Item 7.a.
Barry Branin, Morro Bay, stated it was inappropriate to increase building fees at this time.
Betty Winholtz, Morro Bay, suggested maintaining current impact fees, not combining single and multi-family fees, opined ADUs over 700 sq ft be taxed like a normal house, and that water and sewer fees should be applied to ADUs. She questioned why this report did not go to PWAB.
Judy Setting, Morro Bay, asked that our Council be the one that does not raise fees at this time.
End of public comment.
Mayor Wixom closed the public hearing.
Motion by
Council Member Eckles
Seconded by
Council Member Luffee
Adopt Resolution No. 38-26 approving the Development Impact Fee Study and Nexus Report; establishing Development Impact Fees for the City of Morro Bay; and adopting the FY 2026-27 Master Fee Schedule, including the correction presented by staff.
Ayes (5)
Mayor Wixom, Council Member Landrum, Council Member Edwards, Council Member Luffee, and Council Member Eckles CARRIED (5 to 0)
7.b
Adopt Resolution Nos. 39-26 and 40-26 Approving 2025 Urban Water Management Plan and Water Shortage Contingency Plan Attachments
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Public Comments
1. 7b SR 2025 Urban Water Management Plan.pdf
2. 7b1 Reso 39-26 2025 UWMP.pdf
3. 7b2 Reso 40-26 2025 WSCP.pdf
Utilities Division Manager/Interim Public Works Director Hanson, Utilities Compliance Specialist Skelton, and Dan Heimel from Confluence Engineering presented the report and responded to Council inquiries.
Mayor Wixom opened the public hearing and public comment for Item 7.b.
Betty Winholtz, Morro Bay, raised various questions regarding the report and noted PWAB did not have the opportunity to provide input.
Betsy Gaudette-Cross, Morro Bay, offered comments and asked for an update on injection well locations.
Judy Setting, Morro Bay, offered comments and urged the City to oppose a desal project in Morro Bay.
End of public comment.
Mayor Wixom closed the public hearing.
Motion by
Council Member Luffee
Seconded by
Council Member Eckles
Conduct a public hearing to receive input on the 2025 Urban Water Management Plan and Water Shortage Contingency Plan.
Adopt Resolution No. 39-26 approving the 2025 Urban Water Management Plan and authorizing its submittal to the Department of Water Resources.
Adopt Resolution No. 40-26 approving the 2025 Water Shortage Contingency Plan and authorizing its submittal to the Department of Water Resources.
Ayes (5)
Mayor Wixom, Council Member Landrum, Council Member Edwards, Council Member Luffee, and Council Member Eckles CARRIED (5 to 0)
7.c
Adopt Resolution No. 41-26 Annexing Lots 1 through 5 of Tract 2859 (APN 065-386-015) into the Cloisters Landscaping and Lighting Maintenance Assessment District (LLMAD) and Directing the Levy of the Annual Assessment Attachments
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Public Comments
1. 7c SR - Annex Tract 2859 and Levy Cloisters LLMAD.pdf
2. 7c1 Reso 41-26 Annex Tract 2859 and Levy Cloisters LLMAD.pdf
3. 7c1a - Ex A Tract 1996 LLMAD Boundary w Tract 2859.pdf
4. 7c2 Owner Consent to Annexation.pdf
5. 7c3 Prop. 218 Ballot and Notice.pdf
The Council took a brief recess at 7:50 p.m. and reconvened at 8:00 p.m. with all members present.
City Engineer Stong presented the report and responded to Council inquiries.
Mayor Wixom opened the public hearing and public comment for Item 7.c.
Steve Stevens, Morro Bay, asked the City Attorney to address questions as to the special benefit provided to those in the assessment district over and above the benefit to the general public, and stated residents were previously told increasing the number of lots would lower each homeowner's annual amount.
Betty Winholtz, Morro Bay, commented on items in need of maintenance.
Meredith Goodman, Morro Bay, questioned payroll costs allocated to the assessment district.
Judy Setting, Morro Bay, encouraged the City to address storm drainage needs and playground equipment repairs.
Dawn Beattie, Morro Bay, requested assessment funds be spent on things that benefit the homeowners, not just the general public, including maintenance of the pond and its culverts, fencing along the ESHA, plantings and edging of the median, and encouraged the City to consult with a professional ecosystem manager to evaluate the wetlands to provide short- and long-term maintenance recommendations.
End of public comment.
Mayor Wixom closed the public hearing and asked staff to respond to questions raised during public comment.
At the Mayor's request, City Clerk Swanson announced the affected property owner submitted an assessment ballot in favor of the assessment and no written protests were received.
Staff agreed to prepare a plan regarding storm drainage and playground equipment repairs.
Motion by
Mayor Wixom
Seconded by
Council Member Landrum
Adopt Resolution No. 41-26 annexing Lots 1 through 5 of Tract 2859 (APN 065-386-015) into the Cloisters Landscaping and Lighting Maintenance Assessment District (LLMAD) and directing the levy of the annual assessment.
Ayes (5)
Mayor Wixom, Council Member Landrum, Council Member Edwards, Council Member Luffee, and Council Member Eckles CARRIED (5 to 0)
7.d
Adoption of Resolution No. 42-26 Directing the Levy of the Annual Assessment for the North Point Natural Area Landscaping and Lighting Maintenance Assessment District Attachments
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Public Comments
1. 7d SR Levy Assessment (No. Point).pdf
2. 7d1 Reso 42-26 Levy Assessment (No. Point).pdf
City Engineer Stong presented the report and responded to Council inquiries.
Mayor Wixom opened the public hearing and public comment for Item 7.d; seeing none, the public comment period was closed.
Motion by
Council Member Landrum
Seconded by
Council Member Eckles
Conduct the public hearing and approve the levy of the annual assessment for the North Point Natural Area Landscaping and Lighting Maintenance District (LLMAD) by adopting Resolution No. 42-26.
Ayes (5)
Mayor Wixom, Council Member Landrum, Council Member Edwards, Council Member Luffee, and Council Member Eckles CARRIED (5 to 0)
8. BUSINESS ITEMS
Public Comments:
8.a
Receive Due Diligence Report and Consider Recommendation to Proceed with Closing Under the Purchase and Sale Agreement with the Cayucos Sanitary District for the Jointly Owned Wastewater Treatment Plant Attachments
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Public Comments
1. 8a SR Due Diligence WWTP.pdf
2. 8a1 Attach 1 - Figures.pdf
3. 8a2 Attach 2 - Tables.pdf
Property Located at 160/180 Atascadero Road and
1700 Embarcadero
City Attorney Stack and City Manager Craig presented the report and responded to Council inquiries.
Mayor Wixom opened public comment for Item 8.a.
Robert Enns, Cayucos Sanitary District Board President, thanked Mayor Wixom, former and Interim City Manager Lueker and City Attorney Schultz, and City Attorney Stack for their work to bring this to a close.
David Athey, Cayucos Sanitary District General Manager, thanked Mayor Wixom and staff and offered support for Morro Bay's successful redevelopment of the property.
Betty Winholtz, Morro Bay, asked how long the hazardous waste disposal site would remain at the former treatment plant site.
End of public comment
.
Motion by
Mayor Wixom
Seconded by
Council Member Landrum
Authorize the City Manager to proceed with closing under the Purchase and Sale Agreement (Agreement) between the City of Morro Bay (City) and Cayucos Sanitary District (CSD) for the purchase by the City of the CSD portion of the jointly owned Former Wastewater Treatment Plant Property (WWTP) located at 160/180 Atascadero Road and 1700 Embarcadero (Property) and other jointly owned assets and take such other actions and execute documents necessary to complete the acquisition, subject to review and approval by the City Attorney as to form and legal effect.
Ayes (5)
Mayor Wixom, Council Member Landrum, Council Member Edwards, Council Member Luffee, and Council Member Eckles CARRIED (5 to 0)
9. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS
Public Comments:
Council Member Eckles proposed and received support to direct staff to bring back an incentive program in the shape of a fee reduction or rebate for workforce housing and an assessment of impact fees for ADUs in excess of 1000 sq. ft.
10. ADJOURNMENT
Public Comments:
The meeting adjourned at 8:50 p.m.
Respectfully submitted,
/s/ Dana Swanson, City Clerk