Agenda packet, regular meeting — Morro Bay City Council, July 28, 2026

CITY OF MORRO BAY
City Council Regular Meeting Agenda

Tuesday, July 28, 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.
•
• 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. Morro Elementary School

4. RECOGNITION AND PRESENTATIONS

4.a Presentation of "Parks Make Life Better" Proclamation

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:
•
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.
•
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.
•
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.
•

Recommended Action
Approve Consent Agenda Items 6.a. through 6.e as submitted.

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

1. May 26, 2026 - Regular Council Meeting 5

2. June 9, 2026 - Regular Council Meeting 11

3. June 23, 2026 - Special Closed Session Meeting 18
20

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4. June 23, 2026 - Regular Council Meeting

6.b Proclamations

1. Proclamation Declaring July 2026 "Parks Make Life Better" Month 27

6.c Approval of Lease Agreements with Visit Morro Bay and the Morro Bay Chamber of Commerce for the Continued Use of Office Space at 695 Harbor Street
28 (City Manager)
Recommended Action
Review and approve Lease Agreements for office space at 695 Harbor Street with Visit Morro Bay and the Morro Bay Chamber of Commerce.

6.d San Luis Obispo Urban County 2027-2029 Cooperation Agreements 42 (Community Development)
Recommended Action
Authorize City Manager to sign the Cooperation Agreement between the County of San Luis Obispo and the City of Morro Bay for joint participation in the Community Development Block Grant (CDBG) Program, the Home Investment Partnerships Program (HOME), and the Emergency Solutions Grant Program (ESG) for Fiscal Years 2027 through 2029.

6.e Approval of a Temporary License Agreement for Grassy Bar FLUPSY on the North T-Pier
57 (Harbor Department)
Recommended Action
Approve temporary license agreement for Grassy Bar to dock a FLUPSY and work dock on the North T-Pier for an initial term of 2 years.

7. PUBLIC HEARING ITEMS
None.

8. BUSINESS ITEMS

8.a Advisory Board Interviews and Appointments to Fill Unscheduled Vacancies for terms ending January 31, 2027 on the Citizens Oversight/Finance Advisory Committee and Public Works Advisory Board
70 (City Clerk)
Recommended Action
Conduct interviews and make appointments to fill unscheduled vacancies on the Citizens Oversight/Finance Advisory Committee (“CFAC”) and Public Works Advisory Board (“PWAB”).

9. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS

10. ADJOURNMENT
The next Regular Meeting will be held on August 11, 2026.

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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.

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1 MINUTES - MORRO BAY CITY COUNCIL

REGULAR MEETING
May 26, 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
City Clerk Dana Swanson
Finance Director Emily Conrad
Community Development Director Airlin Singewald
Police Chief Amy Watkins
Fire Chief Dan McCrain
Harbor Director Chris Munson
Acting Public Works Director Damaris Hanson
_____________________________________________________________________

1. ESTABLISH QUORUM AND CALL TO ORDER
Mayor Wixom called the meeting to order at 5:30 p.m. with all members present.

2. PLEDGE OF ALLEGIANCE

3. REPORTS

3.a Closed Session Report
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

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. Morro Elementary School

4. RECOGNITION AND PRESENTATIONS

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2 4.a Certificates of Recognition for Morro Bay High School students who have completed 80+ hours of community service
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
 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.

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3 End of public comment.

Police Chief Watkins announced the Department was rolling out an e-bike safety education and enforcement campaign.

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 Eckles, Council Member Edwards, Council Member Landrum, and Council Member Luffee
CARRIED (5 to 0)

6.a Approval of Minutes
Approve as submitted.

1. April 21, 2026 - Joint City Council and Citizens Finance Advisory Committee Special Meeting

2. May 12, 2026 - Special Closed Session Meeting

6.b Approval of Proclamations

1. Proclamation Declaring June 2026 as Pride Month

6.c Presentation of Allocation of Water Equivalency Units (WEU) for Fiscal Year (FY) 2026/27
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.

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

6.d San Luis Obispo Countywide Regional Homelessness and Affordable Housing Compact and Regional Homeless Service Inventory 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
None.

8. BUSINESS ITEMS
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
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:

1. Remove financing for Morro Elementary site acquisition;

2. Reduce Q/E Annual Pavement program funding by $600K;

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5 3. Defund Assistant to the City Manager position;

4. Reexamine sales tax, Q/E and transient occupancy tax (TOT) revenue projections;

5. Explore alternative funding for the Housing Element Update; and

6. 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 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
None.

10. ADJOURNMENT
The meeting adjourned at 9:34 p.m.

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6 Respectfully submitted,
/s/ Dana Swanson, City Clerk

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1 MINUTES - MORRO BAY CITY COUNCIL

REGULAR MEETING
June 9, 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
City Clerk Dana Swanson
Finance Director Emily Conrad
Community Development Director Airlin Singewald
Police Chief Amy Watkins
Fire Chief Dan McCrain
Harbor Director Chris Munson
Interim Public Works Director Damaris Hanson
Senior Planner Susana Toner
Senior Fiscal Analyst Sara Pruitt
_____________________________________________________________________

1. ESTABLISH QUORUM AND CALL TO ORDER
Mayor Wixom called the meeting to order at 5:32 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 two matters: (1) real property negotiations regarding 231 Atascadero Road (the former Teen Center) and (1) potential litigation matter. No reportable action was taken in closed session under the Brown act.

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)

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2 3. Morro Elementary School

4. RECOGNITION AND PRESENTATIONS
None.

5. PUBLIC COMMENT
 Linda Winters, Morro Bay, reported on various activities since the last meeting.  Peggy Rice, Morro Bay, addressed concerns by Cloisters residents regarding the lack of pond maintenance and encouraged the City to dredge the pond and clear drainage culverts to prevent future flooding.
 Audrey Gendron, Morro Bay, thanked staff for joining her on a walkthrough of the Cloisters wetlands and shared photos demonstrating her concerns about overgrowth and blocked drainage culvert.
 Dawn Beattie, Morro Bay, agreed with her neighbors regarding the need to dredge the pond and clear culverts, suggesting the City bring in an expert to advise next steps.
 Betty Winholtz, Morro Bay, supported the request presented by Cloisters residents.
 Nicole Dorfman, Morro Bay, appreciated Coleman Park improvements and shared concerns about the playground equipment removal and restroom closure at City Park. She requested an update regarding massage regulations and asked whether the Waterfront Master Plan addresses traffic congestion along the Embarcadero from Morro Rock to Beach Street.
 Onan Champi, Morro Bay, thanked City staff for hosting the Morro Bay Watershed Workshop and opportunity to meet regarding the water line improvement project.
 Sean Green, Morro Bay, appreciated Linda Winters for her community volunteer efforts and thanked all who had a hand in completing the Coleman Park project.  Lynda Merrill, Morro Bay, shared her appreciation for the Coleman Park project and urged expansion of the restrooms at Morro Rock.
 Russ Miyoshi, Morro Bay Odder Club, urged the City to explore grant funding for a disaster preparedness plan that covers Morro Elementary in a resiliency hub.  Betsy Gaudette-Cross, Morro Bay, commented on the importance of providing showers at Coleman Park, questioned whether certain items had been presented to the Public Works Advisory Board, and expressed concern about overgrowth at Morro Creek.
 Judy Setting, Morro Bay, requested the Council agendize support for the historic designation of Morro Elementary and appreciated the preparations being done for the 4th of July celebration.
 Rich Raub, Morro Bay resident and pickleball coordinator for Morro Bay Active Adults, requested the Council agendize discussion of new pickleball courts at Del Mar Park.

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3 End of public comment.

Staff responded to questions 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.
 Betty Winholtz, Morro Bay, restated comments submitted regarding the Conflict of Interest Code and state-mandated training.

End of public comment.

Mayor Wixom pulled Items 6.c. and 6.e.

Council Member Landrum pulled Items 6.d. and 6.f.

Motion by Council Member Eckles
Seconded by Council Member Luffee
Approve Consent Agenda Items 6.a and 6.b 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. May 12, 2026 - Regular Council Meeting

6.b Approval of Proclamations
Approve as submitted.

1. Proclamation declaring the third Saturday of June 2026 as "Juneteenth Day"

6.c Adoption of Resolution No. 27-26 Updating the City's Conflict of Interest Code and Resolution No. 28-26 Designating Certain Appointed Bodies and Officials for Applicable Ethics and Fiscal Training Requirements Staff responded to Council questions regarding the Recreation Division Manager's contract authority.

Motion by Mayor Wixom
Seconded by Council Member Luffee
Adopt Resolution No. 27-26 approving amendments to the City’s Conflict of Interest Code and Resolution No. 28-26 Designating Certain Appointed Bodies and Officials for Applicable Ethics and Fiscal Training Requirements.

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

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4 CARRIED (5 to 0)

6.d General Municipal Election Resolutions for November 3, 2026 Election There was brief discussion regarding the potential cost of SLOCOG's half-cent sales tax measure.

Motion by Council Member Landrum
Seconded by Council Member Luffee
Adopt Resolution No. 29-26 calling a general municipal election for November 3, 2026, and requesting consolidation of the election with the County, and Resolution No. 30-26 adopting regulations for candidate statements.

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

6.e Approval of Owners Association (Operating) Agreement between City and Visit Morro Bay
Mayor Wixom offered a reminder the City Council requested Visit Morro Bay move forward with actions to bring RV parks into the TBID.

Motion by Mayor Wixom
Seconded by Council Member Landrum
Approve the Operating Agreement between the City and Visit Morro Bay subject to terms set out in the agreement.

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

6.f Water Reclamation Facility Quarterly Report
City Manager Craig responded to Council inquiries regarding advisory body input and subcommittee review of the report.

Motion by Council Member Landrum
Seconded by Council Member Luffee
Receive and file the Fiscal Year (FY) 2026 Quarterly Report for January – March for the Water Reclamation Facility Program (WRF Program).

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

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5 The Council took a brief recess at 6:41 p.m. and reconvened at 6:49 p.m. with all members present.

7.a An appeal by Solmaz Naghsh of the Planning Commission's approval on April 7, 2026 of a Coastal Development Permit (CDP25-21), Conditional Use Permit (CUP25-01), and Modification Request (MOD26-001) for the demolition of the existing single-story fire station living quarters at 460 Bonita Street, and the construction of a new two-story living quarters totaling 2,431 square feet in its place
Community Development Director Singewald presented the staff report.

Council Members Luffee and Eckles disclosed ex parte communications with the Appellant.

Mayor Wixom opened the public hearing and invited Appellant Solmaz Naghsh to provide comments.
 Solmaz Naghsh, Morro Bay, commented on the key points of her appeal including project costs, desire for a single-story design, and parking concerns.

Mayor Wixom opened public comment for Item 7.a.
 Betty Winholtz, Morro Bay, questioned the need for a two-story station and suggested a 2-person station was sufficient.
 Judy Setting, Morro Bay, hoped to limit neighborhood impacts and suggested a single-story build with the option to add a second story when needed.
 Russ Miyoshi, Morro Bay, stated the fire department upgrade should be part of the disaster preparedness master plan and encouraged utilizing technology to enhance emergency operations.
 Betsy Gaudette-Cross, Morro Bay, was not fully supportive of a fire station in north Morro Bay.
 Michelle Leicester-Cadaret, Morro Bay, felt the structure was too big and unnecessary for a city that is not growing.
 Courtney Shepler, Morro Bay, appreciated the proposed plan was responsive to neighbor feedback with a footprint less intrusive than what zoning would allow for single family home, adding a fire station in north Morro Bay improves our ISO rating and lowers insurance rates.

Mayor Wixom closed public comment and public hearing.

Fire Chief McCrain and Community Development Director Singewald responded to Council questions and issues raised during the public hearing.

Motion by Mayor Wixom
Seconded by Council Member Landrum
Adopt Resolution No. 31-26 denying an appeal and upholding the Planning Commission’s April 7, 2026 approval of the proposed project.

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6 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 Resolutions Approving Fiscal Year (FY) 2026-27 Operating and Capital Budgets; Investment Policy; and FY 2026-27 GANN Appropriations Limit Finance Director Conrad presented the report and responded to Council inquiries.

Citizens Finance Advisory Committee Chair Stephen Peck provided comments on behalf of the Committee.

Mayor Wixom opened public comment for Item 8.a.
 Betty Winholtz, Morro Bay, opined Mr. Peck's comments were not considered a review by the entire Finance Committee and hoped for a response to her written questions and comments.
 Courtney Shepler, Morro Bay, encouraged the City to give more attention to capital planning.

End of public comment.

Following Council deliberations, there was consensus to move the expense for the Housing Element Update from the Affordable Housing In-Lieu Fund to the General Fund.

Motion by Council Member Eckles
Seconded by Council Member Landrum

1. Adopt Resolution No. 32-26 adopting the FY 2026-27 Operating and Capital Budgets, amended as discussed moving the expense for the Housing Element Update to the General Fund; and

2. Adopt Resolution No. 33-26 readopting the City’s Investment Policy; and

3. Adopt Resolution No. 34-26 setting the FY 2026-27 GANN Appropriations Limit at $18,802,003.

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

9. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS
Council Member Eckles proposed and received full support for Council discussion of City Park renovations.

Council Member Landrum requested consideration of an appeal process for residents whose properties were down-zoned in the General Plan update. It was suggested

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7 Council Member Landrum confer with the City Attorney and Community Development Director then come back with the request at a future meeting.

10. ADJOURNMENT
The meeting adjourned at 8:43 p.m.

Respectfully submitted,
/s/ Dana Swanson, City Clerk

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1 MINUTES - MORRO BAY CITY COUNCIL

CLOSED SESSION MEETING
June 23, 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
Harbor Director Chris Munson
Harbor Business Manager Lori Thompson
_____________________________________________________________________

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

2. CLOSED SESSION PUBLIC COMMENT
Giovanni DeGarimore and Giovanni Comin responded to Council questions regarding their proposal.

3. SUMMARY OF CLOSED SESSION ITEMS

4. THE COUNCIL WILL CONVENE IN CLOSED SESSION

4.a CONFERENCE WITH REAL PROPERTY NEGOTIATOR - GOVERNMENT CODE SECTION 54956.8
Property: Lease Sites 122-123/122W-123W; 1205 Embarcadero, Harbor Hut Property Negotiators: Troy League, THMT, Inc.

Agency Negotiators: Chris Munson, Harbor 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: Lease Sites 102/102W & 105.1W/105.2W, 1001 Front Street, Giovanni's Fish Market

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2 Property Negotiators: Orietta M. DeGarimore, as Trustee of Michael G. and Orietta M. DeGarimore Revocable Trust
Agency Negotiators: Chris Munson, Harbor Director; John Craig, City Manager; Brian Stack, City Attorney
Negotiations: Price and Terms of Payment

4.c PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Conduct an employee evaluation of the City Manager pursuant to Government Code Section 54957.

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 5:28 p.m.

Respectfully submitted,
/s/ Dana Swanson, City Clerk

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1 MINUTES - MORRO BAY CITY COUNCIL

REGULAR MEETING
June 23, 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
City Clerk Dana Swanson
Finance Director Emily Conrad
Community Development Director Airlin Singewald
Harbor Director Chris Munson
Interim Public Works Director Damaris Hanson
City Engineer Nate Stong
Project Engineer Dan Heimel
Utilities Compliance Specialist Debra Skelton
Deputy Chief/Fire Marshal Matt Vierra
Police Commander Tony Mosqueda
_____________________________________________________________________

1. ESTABLISH QUORUM AND CALL TO ORDER
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

3. REPORTS

3.a Closed Session Report
City Attorney Stack announced the Council met in closed session to discuss three items: (2) real property negotiations regarding Lease Sites 122-123/122W123W 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

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2 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. Morro Elementary School

4. RECOGNITION AND PRESENTATIONS
None.

5. PUBLIC COMMENT
 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.

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.

Page 21 of 88 ends

3 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. June 9, 2026 - Special Closed Session Meeting

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 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 impaireddriving 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
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 Eckles, Council Member Edwards, Council Member Landrum, and Council Member Luffee
CARRIED (5 to 0)

6.d Notice of Completion for Coleman Park Phase 1

1. Accept the work as performed by J. Bruce Kies, Contractor; and

2. 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

1. Accept the work as performed by David Crye General Engineering Contractor, Inc.; and

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

Page 22 of 88 ends

4 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 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

7.a Resolution Approving Development Impact Fee Study and Nexus Report, Establishing Development Impact Fees, and Adopting the FY 2026-27 Master Fee Schedule
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 Eckles, Council Member Edwards, Council Member Landrum, and Council Member Luffee
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
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.

Page 23 of 88 ends

5  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

1. Conduct a public hearing to receive input on the 2025 Urban Water Management Plan and Water Shortage Contingency Plan.

2. Adopt Resolution No. 39-26 approving the 2025 Urban Water Management Plan and authorizing its submittal to the Department of Water Resources.

3. 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 Eckles, Council Member Edwards, Council Member Landrum, and Council Member Luffee
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
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.

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6  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 Eckles, Council Member Edwards, Council Member Landrum, and Council Member Luffee
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
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 Eckles, Council Member Edwards, Council Member Landrum, and Council Member Luffee
CARRIED (5 to 0)

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7 8. BUSINESS ITEMS

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 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 Eckles, Council Member Edwards, Council Member Landrum, and Council Member Luffee
CARRIED (5 to 0)

9. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS
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
The meeting adjourned at 8:50 p.m.

Respectfully submitted,
/s/ Dana Swanson, City Clerk

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A PROCLAMATION OF THE CITY COUNCIL

OF THE CITY OF MORRO BAY
DECLARING JULY 2026
AS “PARKS MAKE LIFE BETTER MONTH”

CITY COUNCIL
City of Morro Bay, California
WHEREAS, Parks and Recreation promotes physical, emotional, and mental health and wellness through organized and self-directed fitness, play, and activity; and WHEREAS, Parks and Recreation supports the economic vitality of communities by partnering with local businesses and non-profits, and offering events for resident’s engagement; and WHEREAS, Parks and Recreation creates memorable experiences through youth sports and enrichment activities, teen centers and programs, senior activity centers, adult fitness and enrichment programs, free community events, and beyond; and
WHEREAS, Parks and Recreation fosters social cohesiveness in communities by celebrating diversity, providing spaces to come together peacefully, modeling compassion, promoting social equity, connecting social networks, and ensuring all people have access to its benefits; and WHEREAS, Parks and Recreation supports human development and endless learning opportunities that foster social, intellectual, physical, and emotional growth in people of all ages and abilities; and
WHEREAS, Parks and Recreation strengthens community identity by providing facilities and services that reflect and celebrate community character, heritage, culture, history, aesthetics, and landscape; and
WHEREAS, Parks and Recreation facilitates community problem and issue resolution by providing safe spaces to come together peacefully and serving as key points of service, helping our communities heal both physically and emotionally; and
WHEREAS, Parks and Recreation sustains and stewards our natural resources by protecting habitats and open space, connecting people to nature, and promoting the ecological function of parkland; and
WHEREAS, Parks and Recreation supports safe, vibrant, attractive, progressive communities that make life better through positive alternatives offered in their recreational opportunities; and WHEREAS, Parks and Recreation remains versatile and innovative in providing vital services to communities through local, national, or global emergencies, all while adhering to guidelines set forth by governing agencies; and
WHEREAS, The California Park & Recreation Society has released a statewide public awareness campaign, “Parks Make Life Better!®” to inform citizens of the many benefits of utilizing parks, facilities, programs, and services.

NOW THEREFORE, BE IT RESOLVED, that the City Council of the City of Morro Bay recognize the importance of access to local parks, trails, open space, and facilities for the health, wellness, development, inspiration, and safety of all residents and declares July 2026 as “Parks Make Life Better!®” Month.

IN WITNESS WHEREOF I have hereunto
set my hand and caused the seal of the City
of Morro Bay to be affixed this 28
th day of
July 2026

CARLA WIXOM, MAYOR
City of Morro Bay, California Page 27 of 88
Prepared By: DS/EC
City Manager Review: JC City Attorney Review: BS
Staff Report
TO: Honorable Mayor and City Council
FROM: John Craig, City Manager
SUBJECT: Approval of Lease Agreements with Visit Morro Bay and the Morro Bay Chamber of Commerce for the Continued Use of Office Space at 695 Harbor Street

RECOMMENDED ACTION
Review and approve Lease Agreements for office space at 695 Harbor Street with Visit Morro Bay and the Morro Bay Chamber of Commerce.

ALTERNATIVES
Provide other direction as deemed appropriate by a majority of Council.

FISCAL IMPACT
The space lease agreement continues at the previously agreed rate of $200 per month for each agency plus the average proportionate cost of utilities based on square footage assigned to each, bringing the total rate to $257 per month for Visit Morro Bay and $238 per month for the Chamber of Commerce, inclusive of utilities. Rent revenue and utilities reimbursement will be recorded in the General Fund.

BACKGROUND/DISCUSSION
Since 2015, the City has entered into lease agreements with the Chamber for use of office space in the City-owned building at 695 Harbor Street. The Chamber agreement has typically been renewed annually, aligned with the fiscal year, and is currently in month-to-month holdover. Visit Morro Bay (“VMB”) occupies a similar sized office space at 695 Harbor Street at a rate of $200 per month; that agreement was entered into in the fall of 2021 for a term ending June 30, 2026.

In 2022, City staff renegotiated lease terms with the Chamber and VMB at a rate of $200 per month, or $2,400 / year, plus utilities, to get closer to market rate, within the context of the economic benefits provided by the Chamber and VMB to the City and community. In 2025, the Council approved a month-to-month lease agreement with the Chamber at the continued rate of $200 per month plus utilities.

Both agreements are being revised to accurately reflect the office space currently assigned and to include the proportionate cost of utilities in the monthly rent to reduce staff time spent processing monthly invoices and receipts.

Given the Chamber’s roll in support of a strong local community and quality of life by promoting a strong local economy, promoting business development, including business attraction and retention AGENDA NO: 6.c
MEETING DATE: July 28, 2026

Page 28 of 88 ends

2 programs, staff recommends the Council approve a one-year lease agreement requested by the Chamber at the continued rate of $200 per month. Consistent with past practice, the proposed lease agreement for Visit Morro Bay has a 3-year term at the continued rate of $200 per month.

CONCLUSION
Staff recommends Council approval of the lease agreement with the continued rate of $200 per month plus utilities, while also recognizing the economic benefits provided by the Chamber and Visit Morro Bay to the City and the community.

ATTACHMENT(S)

1. Proposed Visit Morro Bay lease agreement for office space at 695 Harbor St.

2. Proposed Chamber of Commerce lease agreement for office space at 695 Harbor St.

Page 29 of 88 ends

Lease Agreement Page 1 of 5
Visit Morro Bay, Inc.

July 28, 2026

LEASE AGREEMENT

AGREEMENT
This lease agreement ("Lease") is made and entered by and between the CITY OF MORRO BAY, a California municipal corporation, and hereinafter referred to as "LESSOR" and/or "City," and VISIT MORRO BAY, a California non-profit corporation, hereinafter referred to as "LESSEE." and/or "VMB."

RECITALS
WHEREAS, LESSOR is the owner of a 2,400-squarefoot office building located at 695 Harbor Street, Morro Bay, CA (the "Premises"); and
WHEREAS, LESSEE is organized to encourage a strong local economy and quality of life by promoting the Morro Bay community as a top coastal destination; and WHEREAS, LESSEE has special knowledge and experience to effectively promote overnight visitation to the community, for the benefit of LESSOR; and
WHEREAS, LESSOR and LESSEE have mutual interests in enhancing the economic growth and vitality of the community and have entered into an agreement for the provisions of tourism marketing services on behalf of the Morro Bay Tourism Business Improvement District for Fiscal Years 2026/2027 through FY 2035/2036; and.

WHEREAS, LESSOR and LESSEE desire to enter into a new lease agreement for Suites C and D of Premises comprising a combined area of 255 square feet, equal to 10.7% of the gross leasable area of the Premises (the “Leased Premises”).

NOW, THEREFORE, IT IS AGREED AS FOLLOWS:

1. LEASE: LESSOR hereby leases to LESSEE and LESSEE agrees to accept from LESSOR the lease of the portions of the Leased Premises as described in Section 4., below.

2. RENT: During the term on this Lease, LESSEE agrees to pay the sum of $2,400.00, with $200.00 due and payable on the first day of each month commencing with July 1, 2026 under this agreement (the “Rent”) for the use of the Leased Premises and the Additional Access Areas, defined below. The Rent has been determined to be the fair market value of the Leased Premises considering the fair market rent for the Leased Premises, the direct economic benefits of LESSEE’s services to City, and LESSEE’s agreement to provide services to the lodging community in general.

3. TERM: The term of this Lease shall commence on July 1, 2026 and terminate without notice on June 30, 2030, unless sooner terminated as herein provided. Any holdover of possession of the Leased Premises by LESSEE beyond this Term shall constitute a month-to-month tendency on the same terms and conditions of this Lease and LESSEE agrees to vacate the Leased Premises upon thirty-days’ prior written notice from LESSOR.

4. LEASED PREMISES: The Leased Premises for purpose of this Lease shall include Suite C and Suite D of Premises that, combined, total approximately 255 square feet. LESSEE shall have access to and use of, but not control of, common areas of the Premises, including both bathrooms, the foyer, the conference room,

Page 30 of 88 ends

Lease Agreement Page 2 of 5
Visit Morro Bay, Inc.

July 28, 2026
hallways, entranceways, and the kitchen (the “Additional Access Areas”).

5. USE OF LEASED PREMISES AND THE ADDITIONAL ACCESS AREAS: LESSEE shall use the Leased Premises and the Additional Access Areas solely for the purpose of operation of VMB business, including, but not limited to, (i) promoting Morro Bay as a top coastal destination,(ii) providing services described under the Agreement for Contractor Services, or other agreements City and VMB may enter into from time to time and (iii) coordinating with the Morro Bay Chamber (who currently leases a portion of the Premises) on mutually beneficial economic development activities.

6. FIXTURES AND ALTERATIONS: LESSEE shall not make, or cause to be made, any alterations, additions or improvements, of a substantial nature, or make any structural changes in the building (the "Improvements") without first notifying LESSOR and obtaining prior written approval from LESSOR for the Improvements. In the event the Improvements include any structural change, LESSEE shall supply to LESSOR plans and specifications for such work, and obtain prior written approval. LESSEE shall be responsible for all costs associated with any of the Improvements. All permits necessary for the Improvements, shall be at LESSEE'S expense and obtained prior to any work on any of the Improvements.

7. ITEMS INSTALLED BY LESSEE: All decorations and additions and any of the Improvements in the Lease Premises, except for structural changes, made by LESSEE shall remain the property of LESSEE for the term of this Lease or any extension or renewal thereof. Upon expiration of this Lease, or any renewal term thereof, LESSEE shall remove all decorations and additions and those portions of the Improvements that are LESSEE property, and restore the Leased Premises, ordinary wear and tear excepted, to its condition at the time of original occupancy, unless written approval is obtained by LESSOR to allow such decorations, additions or the Improvements to remain.

8. SECURITY: LESSOR agrees to provide locks on doors of the Premises and the Leased Premises, the latter of which is to be used exclusively by LESSEE for the uses described herein, and to provide keys for access to Premises and Leased Premises. LESSOR shall also provide access to the Premises at the rear entrance for others to access the Premises without access to Leased Premises.

LESSOR shall have no duty, obligation, or liability whatever to rebuild and portion of the Premises or surrounding grounds, if any or all of them are destroyed, except at its sole discretion. LESSEE shall be responsible for cable, phone and internet service to the Leased Premises.

10. SURRENDER OF LEASED PREMISES AND ADDITIONAL ACCESS AREAS: At the expiration of the tenancy hereby created, LESSEE shall surrender the Leased Premises in the same condition as the Leased Premises were upon delivery of possession thereto under this Lease, reasonable wear and tear excepted, and damage by unavoidable casualty not within the reasonable control of LESSEE excepted. LESSEE shall thereupon remove all its fixtures, and any alterations or improvements as provided above before surrendering the Leased Premises and shall repair any damage to the Leased Premises caused thereby, and shall surrender all keys for the Premises and Leased Premises to LESSOR. LESSEE's obligation to observe or perform this covenant shall survive the expiration or other termination of the term of this Lease.

July 28, 2026
tives as additional insureds and shall contain a clause the insurer will not cancel or change the insurance without first giving LESSOR 10-days' prior written notice. LESSEE shall exhibit to LESSOR, at any time upon demand, a certificate of insurance, or other evidence of insurance, and shall keep such policies in effect during the full term of this Lease or any extensions thereof.

12. FIRE, EXTENDED COVERAGE: LESSEE agrees to purchase and maintain, during the full term of this Lease or any extensions thereof, a policy of fire, extended coverage, insurance, which policy shall not be less than 100% of the replacement value of the Leased Premises. The cost of such insurance shall be at the sole cost of LESSEE.

13. INDEMNIFICATION: LESSEE agrees to indemnify, defend and hold harmless LESSOR, its offices, directors and agents, from and against any and all claims, actions, damages, liability, expenses, costs and reasonable attorney's fees resulting or related to any loss of life, personal injury or damage to property, or any other liability, arising out of any occurrence related to the Leased Premises, or the occupancy or use by LESSEE of the Leased Premises, occasioned wholly or in part by any act or omission of LESSEE, its agents, contractors, employees, servants, lessees or concessionaires, or for any act or omission by LESSOR in furtherance of the interests of LESSEE for any reason in connection with this Lease.

14. UTILITIES, COMMON AREA MAINTENANCE & TAXES: In addition to rent under Section 2, LESSEE agrees to pay monthly its estimated proportion of all charges for water, gas, electricity, and garbage services, or any other utility used or consumed on the Premises. Based on Fiscal Year 2025-26 actual cost, the parties agree the estimated cost of utilities for the Premises is $6,406.00 annually for the term of this Lease. The

10.7% portion equates to $684.00 annually for Visit Morro Bay, or $57.00 per month, and will be added to the billed monthly rent for a total monthly amount billed and owed for rent and utilities of $257.00. LESSEE agrees to pay, at its sole cost and expense, any possessory interest tax that may be assessed as a result of this Lease.

15. ASSIGNMENT AND SUB-LETTING: LESSEE will not assign this Lease, in whole or in part, nor sublet all or any part of the Leased Premises without the prior written consent of LESSOR, which may be withheld at LESSOR’S sole discretion.

16. GOVERNMENTAL REGULATIONS: LESSEE shall at LESSEE's sole cost and expense, comply with all of the requirements of all county, municipal, state, federal and other applicable government authorities, now in force, or which may hereafter be in force, pertaining to the Leased Premises, and shall faithfully observe in the use of the Leased Premises all municipal and county ordinances, and all state and federal statutes now, or which may hereafter be, in force.

17. DESTRUCTION OF LEASED PREMISES: If the Leased Premises shall be damaged or destroyed by fire, the elements, unavoidable accidents, or other casualty, then insurance proceeds payable by reason thereof shall first be applied to the repair, reconstruction, and renovation of Leased Premises before any other payments, including the repair, reconstruction or replacement of LESSEE’S property.

18. CONDEMNATION: In the event any or all of the Premises are taken, in whole or in part, through the exercise of any power of eminent domain exercised by any state, federal or local agency (including LESSOR) having the power thereof, any sums paid by such condemning authority shall be paid to LESSOR. LESSEE hereby waives any and all of its rights and benefits payable under applicable federal or state relocation assistance laws if the City is the condemning authority.

Page 32 of 88 ends

Lease Agreement Page 4 of 5
Visit Morro Bay, Inc.

July 28, 2026
default shall have been given to LESSEE, or if LESSEE shall abandon the Leased Premises, then LESSOR, besides other rights or remedies it may have, shall have the immediate right of reentry and may remove all persons and properties from the Leased Premises without being deemed guilty of trespass or becoming liable for any loss or damage which may be occasioned thereby.

20. ENTIRE AGREEMENT: This Lease, and any exhibits attached hereto and forming a part hereof set forth all the covenants, promises, agreements, conditions and understanding between the parties concerning the Leased Premises, and there are no covenants, promises, agreements, conditions or understandings, either oral or written, between them, other than or herein set forth. Except as herein otherwise provided, no subsequent alteration, amendment, change or addition to this Lease shall be binding upon either party unless reduced to writing and signed by both.

21. NOTICE: Any notice, demand, request or other instrument which may be required to be given under this Lease shall be deemed delivered when sent by ordinary United States Mail, postage prepaid, addressed to LESSOR care of its City Manager, or LESSEE care of its then acting President.

22. PARTIAL INVALIDITY/SEVERABILITY: If any term, covenant or condition of this Lease, or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, then the remainder of this Lease, or the application of such term, covenant or condition to persons or circumstances other than those to which it is held invalid, or unenforceable, shall not be affected thereby; and each term, covenant or condition of this Lease shall be valid and be enforced to the fullest extent permitted by law. If the length, term or duration or this Lease, in any way is in violation of any statute, law or Constitution or is invalid for any reason whatsoever, then this Lease shall be deemed a Lease from year to year, and all other provisions hereunder shall remain the same.

23. CALIFORNIA LAW: This Lease shall be interpreted, construed, and governed both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Lease shall be instituted in the Superior Court of the County of San Luis Obispo, State of California. In the event of litigation in a U.S. District Court, venue shall lie exclusively in the Central District of California, in the County of San Luis Obispo, State of California.

24. NON-LIABILITY OF CITY OFFICERS AND EMPLOYEES: No officer or employee of the City shall be personally liable to the LESSEE, or any successor in interest, in the event of any default or breach by the LESSOR or for any amount, which may become due to the LESSEE or to its successor, or for breach of any obligation of the terms of this Lease.

25. INTERPRETATION: The terms of this Lease shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Lease or any other rule of construction which might otherwise apply.

26. COUNTERPARTS: This Lease may be executed in counterparts, each of which shall be deemed to be an original, and such counterparts shall constitute one and the same instrument.

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Lease Agreement Page 5 of 5
Visit Morro Bay, Inc.

July 28, 2026
IN WITNESS WHEREOF, the parties hereto have executed this Agreement this _________ day of July, 2026, at Morro Bay, California
CITY OF MORRO BAY VISIT MORRO BAY, INC.

By: _____________________
John Craig, City Manager
Approved as to Form:
________________________
Brian J. Stack
City Attorney
By:

By:
__________________________
Krista Rupp, Chief Executive Officer
________________________________________
Chairman, “VMB” Visit Morro Bay, Inc. Board
of Directors
VM

Page 34 of 88 ends

Page 35 of 88 ends

Lease Agreement

AGREEMENT
This lease agreement ("Lease") is made and entered by and between the CITY OF MORRO BAY, a California municipal corporation, and hereinafter referred to as "LESSOR" and/or "City," and THE MORRO BAY CHAMBER OF COMMERCE, a California non-profit corporation, hereinafter referred to as "LESSEE" and/or "Chamber."

RECITALS
WHEREAS, LESSOR isthe owner of a 2,400-square foot office building located at 695 Harbor Street, Morro Bay, CA (the "Premises"); and
WHEREAS, LESSEE is organized to encourage a strong local economy and quality of life by promoting commerce, sound government, and an informed membership and community; and WHEREAS, LESSEE has special knowledge and experience to promote economic and business development, including business attraction and retention programs, for the benefit of LESSOR; and
WHEREAS, LESSOR and LESSEE previously entered into a lease agreement for LESSEE to lease the Lease Premises (as defined below) from LESSOR on September 16, 2025; and WHEREAS, LESSOR and LESSEE desire to enter into a new lease agreement for Suites F and G of Premises comprising a combined area of 171 square feet, equal to 7.21 percent of the gross leasable area of the Premises (the “Leased Premises”).

NOW, THEREFORE, IT IS AGREED AS FOLLOWS:

1. LEASE: LESSOR hereby leases to LESSEE and LESSEE agrees to accept from LESSOR the lease of the portions of the Leased Premises as described in Section 4., below.

2. RENT: During the term of this Lease, LESSEE agrees to pay $200.00 due and payable on the first day of each month (the “Rent”) for the use of the Leased Premises and the Additional Access Areas, defined below. The Rent has been determined to be the fair market rent for the Leased Premises and the public benefit of LESSEE’s services to the community, including LESSEE’s agreement to provide servicesto the business community in general without regard to such business’s Chamber membership status; provided, however, that Chamber reserves the right to provide preferential and varying tiers of additional service to Chamber members in accordance with its adopted membership program.

3. TERM: The term of this Lease shall commence on July 1, 2026 and terminate without notice on June 30, 2027, unless sooner terminated as herein provided. Any holdover of possession of the Leased Premises by LESSEE beyond this Term shall constitute a month-to-month tendency on the same terms and conditions of this Lease and LESSEE agrees to vacate the Leased Premises upon thirty-days’ prior written notice from LESSOR.

4. LEASED PREMISES: The Leased Premises for purpose of this Lease shall include Suite F and Suite G of Premises that, combined, total approximately 171 square feet. LESSEE shall

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have access to and use of, but not control of, common areas of the Premises, including both bathrooms, the foyer, the conference room, hallways, entranceways, and the kitchen (the “Additional Access Areas”).

5. USE OF LEASED PREMISES AND THE ADDITIONAL ACCESS AREAS: LESSEE shall use the Leased Premises and the Additional Access Areas solely for the purpose of operation of Chamber business, including, but not limited to, (i) promoting all businesses and services in the City and (ii) providing services described under the Amended and Re-stated Agreement for Economic Development Services, and under other agreements with a similar purpose which City and Chamber may enter into from time to time.

Upon expiration of this Lease, or any renewal term thereof, LESSEE shall remove all decorations and additions and those portions of the Improvements that are LESSEE property, and restore the Leased Premises, ordinary wear and tear excepted, to its condition at the time of original occupancy, unless written approval is obtained by LESSOR to allow such decorations, additions or the Improvements to remain.

8. SECURITY: LESSOR agrees to provide locks on doors of the Premises and the Leased Premises, the latter of which isto be used exclusively by LESSEE for the uses described herein, and to provide keys for access to Premises and Leased Premises. LESSOR shall also provide access to the Premises at the rear entrance for others to access the Premises without access to Leased Premises.

9. MAINTENANCE: LESSOR shall be responsible for the overall interior and exterior maintenance of the Premises and Leased Premises, and for the maintenance and repair of major building systems, including HVAC, mechanical, plumbing, and electrical systems and access to telephone, cable, and internet services. LESSOR shall have no duty, obligation, or liability whatever to rebuild and portion of the Premises or surrounding grounds, if any or all of them are destroyed, except at its sole discretion. LESSEE shall be responsible for routine janitorial and maintenance of the Leased Premises and Additional Access Areas and for cable, phone and internet service to the Leased Premises.

10. SURRENDER OF LEASED PREMISES AND ADDITIONAL ACCESS AREAS: At the termination of the tenancy hereby created, LESSEE shall surrender the Leased Premises and Additional Access Areas in the same condition as the Leased Premises and Additional Access Areas were upon delivery of possession thereto under this Lease, reasonable wear and tear excepted, and damage by unavoidable casualty not within the reasonable control of LESSEE excepted, and shall surrender all keys for the Premises and Leased Premises to LESSOR.

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LESSEE shall thereupon remove all its fixtures, and any alterations or improvements as provided above before surrendering the Leased Premises and shall repair any damage to the Leased Premises and Additional Access Areas caused thereby. LESSEE's obligation to observe or perform this covenant shall survive the expiration or other termination of the term of this Lease.

11. INSURANCE: LESSEE shall, during the full term of this Lease, keep in full force and effect an appropriate policy of liability and property damage insurance with respect to the Leased Premises and Additional Access Areas in the minimum amounts of $1,000,000 each. The policies shall name LESSOR and its officers, employees and representatives as additional insureds and shall contain a clause the insurer will not cancel or change the insurance without first giving LESSOR 10-days' prior written notice. LESSEE shall exhibit to LESSOR, at any time upon demand, a certificate of insurance, or other evidence of insurance, and shall keep such policies in effect during the full term of this Lease or any ex- tensions thereof.

The cost of such insurance shall be at the sole cost of LESSEE.

13. INDEMNIFICATION: LESSEE agrees to indemnify, defend and hold harmless LESSOR, its offices, directors and agents, from and against any and all claims, actions, damages, liability, expenses, costs and reasonable attorney's fees resulting or related to any loss of life, personal injury or damage to property, or any other liability, arising out of any occurrence related to the Leased Premises, the Additional Access Areas or the occupancy or use by LESSEE of the Leased Premises, the Additional Access Areas or any part thereof, occasioned wholly or in part by any act or omission of LESSEE, its agents, contractors, employees, servants, lessees or concessionaires, or for any act or omission by LESSOR in furtherance of the interests of LESSEE for any reason in connection with this Lease.

Based on Fiscal Year 2025-26 actual cost, the parties agree the estimated cost of utilities for the Premises is $6,406.00 annually for the term of this Lease. The 7.2% portion equates to $458.00 annually for the Chamber of Commerce, or $38.00 per month, and will be added to the billed monthly rent for a total monthly amount billed and owed for rent and utilities of $238.00. LESSEE agrees to pay, at its sole cost and expense, any possessory interest tax that may be assessed as a result of this Lease.

15. ASSIGNMENT AND SUB-LETTING: LESSEE will not assign this Lease, in whole or in part, nor sub-let all or any part of the Leased Premises.

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17. DESTRUCTION OF LEASED PREMISES: If the Leased Premises shall be damaged or destroyed by fire, the elements, unavoidable accidents, or other casualty, then all insurance proceeds payable by reason thereof shall be applied to the repair, reconstruction, and renovation of Leased Premises or as otherwise directed by LESSOR. If this Lease is not terminated, LESSOR shall make such repairs within a reasonable time and this Lease shall continue in full force and effect and the rent shall be proportionately reduced while the repairs are being made, subject to the right of either party to terminate the tenancy upon thirty (30) days written notice to the other party. A total destruction of the Leased Premises shall terminate this Lease immediately.

19. DEFAULT: In the event of any failure of LESSEE to perform any of the terms, conditions or covenants of this Lease to be observed or performed by LESSEE for more than 30 days after written notice of such default shall have been given to LESSEE, or if LESSEE shall abandon the Leased Premises and the Additional Access Areas, then LESSOR, be- sides other rights or remedies it may have, shall have the immediate right of reentry and may remove all persons and properties from the Leased Premises and the Additional Access Areas without being deemed guilty of trespass or becoming liable for any loss or dam- age which may be occasioned thereby.

20. ENTIRE AGREEMENT: This Lease, and any exhibits attached hereto and forming a part hereof set forth all the covenants, promises, agreements, conditions and understanding between the parties concerning the Leased Premises, and there are no covenants, promises, agreements, conditions or understandings, either oral or written, between them, other than as herein set forth. Except as herein otherwise provided, no subsequent alteration, amendment, change or addition to this Lease shall be binding upon either party unless reduced to writing and signed by both.

22. PARTIAL INVALIDITY/SEVERABILITY: If any term, covenant or condition of this Lease, or the application thereof to any person or circumstance shall, to any extent, be in- valid or unenforceable, then the remainder of this Lease, or the application of such term, covenant or condition to persons or circumstances other than those to which it is held invalid, or unenforceable,shall not be affected thereby; and each term, covenant or condition of this Lease shall be valid and be enforced to the fullest extent permitted by law. If the length, term or duration or this Lease, in any way is in violation of any statute, law or Constitution or is invalid for any reason whatsoever, then this Lease shall be deemed a Lease from year to year, and all other provisions hereunder shall remain the same.

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23.CALIFORNIA LAW: This Lease shall be interpreted, construed, and governed both as to validity and to performance of the parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Lease shall be instituted in the Superior Court of the County of San Luis Obispo, State of California. In the event of litigation in a U.S. District Court, venue shall lie exclusively in the Central District of California, or such other federal court having jurisdiction in the County of San Luis Obispo, State of California.

26. COUNTERPARTS: This Lease may be executed in counterparts, each of which shall be deemed to be an original, and such counterparts shall constitute one and the same instrument.

A facsimile or electronic copy shall be valid for all purposes as though it was an original document.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement this day of July 2026, at Morro Bay, California

CITY OF MORRO BAY MORRO BAY CHAMBER OF COMMERCE
By: _____________________ By: __________________________ John Craig, City Manager Tina Clark, Chief Executive Officer Attest:
_____________________ __________________________
Dana Swanson, City Clerk Chairman, Chamber Board of Directors Approved As To Form:
_____________________
Brian J. Stack, City Attorney

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Staff Report
TO: Honorable Mayor and City Council
FROM: Airlin Singewald, Community Development Director
SUBJECT: San Luis Obispo Urban County 2027-2029 Cooperation Agreements

RECOMMENDED ACTION
Authorize City Manager to sign the Cooperation Agreement between the County of San Luis Obispo and the City of Morro Bay for joint participation in the Community Development Block Grant (CDBG) Program, the Home Investment Partnerships Program (HOME), and the Emergency Solutions Grant Program (ESG) for Fiscal Years 2027 through 2029.

ALTERNATIVES
Alternatively, the City Council could direct the City Manager to withdraw from future participation in the San Luis Obispo Urban County for CDBG, HOME, and ESG funds. By withdrawing from the Urban County, the City would be eligible to compete for federal CDBG, HOME, and ESG funds at the State level. Staff does not recommend withdrawing from the Urban County until the City identifies specific public facility, infrastructure, and affordable housing projects that would be eligible and benefit from HUD funding through the State. Withdrawing from the Urban County would also terminate funding for projects and programs that currently benefit Morro Bay residents, such as minor home repair and homelessness prevention services.

FISCAL IMPACT
The City has received approximately $50,000 to $65,000 in CDBG funds each year through its participation in the Urban County. The City has used these funds for ADA sidewalk and street repairs, to fund CAPSLO’s minor home repair program for Morro Bay residents, and to help fund homelessness prevention services. In past years, the City has allocated CDBG funds for acquisition of land for affordable housing. Under the Urban County consortium, the County is the Responsible Entity and takes on many of the grant administration responsibilities, reducing the impact on City staff resources.

Withdrawing from the Urban County would allow the City to compete at the State level for larger CDBG awards, potentially up to $3M. However, preparing competitive applications and administering grants would require additional staff resources, which could increase General Fund staffing costs.

SUMMARY
The City of Morro Bay has participated in the Urban County Consortium since 2012 to receive grant funding from the U.S. Department of Housing and Urban Development (HUD). To remain in the Urban County Consortium, cities are required to renew a cooperation agreement with the County every three years. The current three-year Cooperation Agreement expires on June 30, 2027. If authorized, the attached Cooperation Agreement would extend the City’s participation in the Urban County until June 30, 2030.

Prepared By: AS City Attorney Review: BS_
City Manager Review: JC
AGENDA NO: 6.d
MEETING DATE: July 28, 2026

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2 On June 19, 2026, the County’s Homeless Services Division asked the City to confirm whether we will continue to participate in the Urban County; or request withdrawal from the Urban County and certification from HUD as an eligible Metropolitan City (if eligible) to be a responsible entity for HUD Entitlement funds; or withdraw from the Urban County to compete for HUD funds at the State level.

The City does not meet the population criteria (50,000) to qualify as a Metropolitan City and would therefore need to compete for HUD funds at the State level, if it withdraws from the Urban County.

The County gave cities a July 22, 2026 deadline to submit signed cooperation agreements but extended this deadline to accommodate our July City Council schedule. The County’s deadline to submit the signed cooperation agreements to HUD is August 10, 2026. The attached email from Marge Castle, County Homeless Services Program Manager, explains this timeline and the benefits of remaining in the Urban County.

As explained in the attached email, the proposed cooperation agreement contains only the minimum elements necessary for Urban County qualification. This simply outlines the City and County’s intent to continue working together under the Urban County framework. The County proposes to address the operational details separately in an MOU to be completed before the current agreement expires in September 2027.

When staff presented CDBG funding recommendations to City Council on November 12, 2025, the City Council directed staff to analyze the feasibility, including pros and cons, of withdrawing from the Urban County before entering into a new three-year agreement with the County. Staff met with an experienced CDBG consultant, Lorie Adams (Adams Ashby Group), to discuss a possible strategy and timing for withdrawing from the Urban County. Ms. Adams is familiar with Morro Bay as she helped the City with CDBG grant administration before the City joined the Urban County in 2012. Ms.

Adams also provides grant administration services for Grover Beach, the County’s one jurisdiction that has opted out of the Urban County. Ms. Adams advised the City to remain in the Urban County for another three years, while the City identifies projects that would be eligible and potentially benefit from the State Housing and Community Development’s (State HCD’s) HUD grant programs. The following discussion was informed, in part, on staff’s discussion with Ms. Adams.

DISCUSSION
Since joining the Urban County in 2012, the City has been eligible for three HUD funding programs:

CDBG, HOME, and ESG. The County allocates HOME and ESG funds directly to affordable housing developers and homeless service providers. The City does not receive a direct share of HOME and ESG funds; however, non-profits can apply to the County for HOME and ESG funds to deliver projects and services in the City of Morro Bay. For example, in 2026, $800,000 in HOME program funding was available for affordable housing projects and programs in the Urban County. Since the City is part of the Urban County, an affordable housing developer in Morro Bay would have been eligible to compete for these funds (against other projects in the County) to construct new or rehabilitate existing affordable housing units in the city limits. Likewise, since Morro Bay is part of the Urban County, homeless service providers could spend a portion of the Urban County’s $190,000 in 2026 ESG funds to benefit Morro Bay residents experiencing or at-risk of homelessness.

Under the CDBG program, the County and each participating city receives a formula-based allocation of CDBG funds to spend on eligible activities at their discretion. CDBG funds are restricted to projects located within predominately low and moderate income areas. Eligible activities include public facilities (general government facilities like city halls are excluded), infrastructure, land acquisition for affordable housing, housing rehabilitation, and economic development. CDBG cannot be used for the construction of new housing.

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3 The City’s share of CDBG funds has ranged from $50,000 to $65,000 each year for the past three years. In recent years, the City has allocated these funds for ADA accessibility street repairs, homeless services (limited to 15 percent of allocation), and CAPSLO’s minor home repair program.

In 2021, the City allocated CDBG funds towards the acquisition of land for the Rockview at Sunset affordable apartments at 405 Atascadero Road.

Withdrawing from the Urban County would make the City eligible to compete for CDBG, HOME, and ESG funds through State HCD. While higher grant amounts are available through the State program, the City would need to identify specific “shovel ready” (permitted and designed with construction and engineering plans ready for bid) that are eligible for CDBG funding and compete against other cities statewide for limited funding. The State CDBG program is only allowing for public facilities and infrastructure projects over the next three years.

As a primary factor for rating CDBG applications, the State assigns a “need score” to each jurisdiction based on its percentage of low-moderate income households. The table below shows how Morro Bay’s need score compares to the County and six other cities. This table is intended to show generally how Morro Bay’s low-moderate income ranking compares to other local jurisdictions. Statewide, Morro Bay places roughly in the middle tier (around the 40th to 50th percentile) of all jurisdictions on the State’s list.

Jurisdiction Low/Mod
Percentage
Community Need
Score
San Luis Obispo City 59.50% 29.75
Grover Beach 52.00% 26.00
Paso Robles 48.40% 24.20
San Luis Obispo County 44.00% 22.00
Atascadero 42.20% 21.20
Morro Bay 41.00% 20.80
Pismo Beach 36.40% 18.20
Arroyo Grande 33.30% 16.65
If the City were to withdraw from the Urban County, the City could also apply to State HCD for HOME funds. However, to apply for HOME funds, the City would need to partner with an affordable housing developer that has a shovel ready project in Morro Bay.

Given the above, the City’s decision on whether or not to withdraw from the Urban County should consider the following:
 For the next three years, the State CDBG program is limited to infrastructure and public facility projects. Housing-related and economic development projects will not be eligible for CDBG funds.
 Does the City have any CDBG eligible public facility or infrastructure projects in a predominately low and moderate income census tract that will be shovel ready in the next three years?
 The City’s need score is in the middle tier compared to other California jurisdictions and, therefore, may not be prioritized by the State’s rating and ranking criteria.  Staff is not aware of specific affordable housing development projects that could benefit from HOME funds over the next three years.
 Housing developers and non-profit organizations would no longer be able to spend Urban

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4 County CDBG, HOME, and ESG funding to deliver services to Morro Bay residents. While there is no homeless shelter in Morro Bay, organizations like CAPSLO and 5 Cities Homeless Coalition have used these funding sources to provide rental assistance and minor home repair services to Morro Bay residents.
 Administering a CDBG program sperate from the Urban County will require more City staff resources, impacting the City’s General Fund.

CONCLUSION
In conclusion, staff recommends that the City remain in the Urban County for an additional three years while staff evaluates potential affordable housing, public facility, and infrastructure projects that may be eligible and competitive for HUD funding administered by State HCD. As part of this process, staff would reach out to non-profit organizations and housing developers that use HUD funding to provide services and construct affordable housing. Staff will also use the upcoming capital improvement planning process to identify potential public facilities and infrastructure that could benefit from increased levels of CDBG funding through State HCD.

ATTACHMENT(S)

1. June 19, 2026 e-mail from Marge Castle, County Homeless Services Program Manager, explaining the cooperation agreement timeline and the benefits of remaining in the Urban County.

2. Proposed FY 2027-2029 CDBG Urban County Cooperation Agreement

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Outlook
Urban County Cooperation Agreements
From Marge Castle <[email protected]>
Date Fri 6/19/2026 11:47 AM
To John Craig <[email protected]>
Cc Airlin Singewald <[email protected]>; Linda Belch <[email protected]>; George Solis <[email protected]>
1 attachment (34 KB)
2026.06.12 Cooperation Agreement 2027-2029.docx;
CAUTION: This is an external email. Please take care when clicking links or opening attachments.

Hello,
I’m reaching out share the 2027-2029 Urban County Cooperation Agreement for your review. To meet HUD’s required timeline, we prepared an agreement that included only the minimum elements necessary for Urban County qualification. This simply outlines the City and County’s intent to continue working together under the Urban County framework. We propose to address the operational details separately in an MOU to be completed before the current agreement expires in September 2027.

The document has been approved by HUD. We are unable to change the required language.

Please let me know if you would like the City Attorney or any other City Official to be included as a signer for the Agreement.

Next Steps
HUD‑Mandated Timeline
July 8, 2026: Cities must send a letter to the County and HUD confirming whether they will continue to participate in the Urban County of San Luis Obispo, OR request withdrawal from the Urban County and certification from HUD as an eligible Metropolitan City (if eligible) to be a responsible entity for HUD Entitlement funds; OR withdraw from the Urban County to compete for HUD funds from the State of California.

July 22, 2026: Send the SIGNED Urban County Cooperation Agreements by email to Marge Castle ([email protected]) for inclusion in the Board of Supervisors agenda item. The Urban County Cooperation Agreements will be presented to the Board of Supervisors on August 4, 2026.

August 10, 2026: The County must submit the full HUD qualification package.

Benefits of Remaining in the Urban County
Stable and Predictable Funding
Remaining in the Urban County ensures access to consistent annual CDBG funding through a

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formula allocation received directly from HUD. Independent entitlement status is not guaranteed, and competitive state programs can fluctuate significantly from year to year.

For many smaller jurisdictions, participation provides access to federal funding that would otherwise be difficult to obtain on a predictable basis.

The County cannot allocate any CDBG, HOME or ESG funding in a non-entitlement jurisdiction.

This could impact current interim shelter projects and other homelessness services projects, as well as the development of new affordable housing projects that the county currently funds through the County’s CDBG, HOME and ESG funding.

A non-entitlement jurisdiction would compete at the state level for CDBG, HOME or ESG, if funding is available
Reduced Administrative Burden
The County serves as the lead and responsible entity for the Urban County and administers the federal requirements associated with HUD funding, including:

Federal environmental reviews
Contracts
Labor compliance reporting
Section 3 reporting
IDIS reporting
Contracting
Procurement oversight
Monitoring
Community Needs Assessments
Fair Housing Compliance
Public Hearings
This reduces the staffing and technical capacity needed at the local level.

Predictable Funding Framework
Participation provides access to an established funding structure and planning process. While annual allocations may vary, the Urban County framework offers a predictable mechanism for accessing CDBG resources over time.

Economies of Scale
Pooling program resources allows for shared administrative systems, consolidated monitoring, streamlined contracting, and lower per‑project administrative costs. Smaller jurisdictions especially benefit from this scale.

Regional Collaboration
Your jurisdiction continues to set its own local CDBG priorities. Remaining in the Urban County does not reduce your local control; instead, it offers support in implementing projects that address your community’s needs and countywide initiatives.

The Urban County structure allows jurisdictions to collaborate on shared community development and housing priorities. Regional participation can support projects and strategies that address needs extending beyond individual jurisdictional boundaries.

Participation allows cities to benefit from countywide programs, public services, housing rehab, homelessness initiatives, and opportunities to leverage other federal and state funding that prefers or requires regional coordination.

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Risk Mitigation and Compliance Support
The County absorbs much of the program risk, such as compliance findings, corrective action requirements, and audit exposure. A jurisdiction operating independently would need to assume these risks directly.

HUD regulations are increasingly complex. As an Urban County, we provide ongoing technical assistance, regulatory interpretation, and compliance monitoring that protect jurisdictions from findings, repayment risks, and administrative workload.

Continuity and Ease of Implementation
Remaining in the Urban County avoids the administrative disruption, re‑qualification process, and potential funding gaps that can occur with withdrawal or transition to state programs.

Please contact me with any questions or concerns. Thank you.

Best regards,
Marge Castle
Program Manager
Homeless Services Division
Department of Social Services
(805) 788-9491 Direct
(805) 788-2457 Fax
[email protected]
This email, and any files transmitted with it, are intended only for the person or entity to which it is addressed and may contain confidential, protected, and /or privileged material. Any review, retransmission, dissemination or other use of, or taking of any action in reliance upon this information by persons or entities other than the intended recipient, is prohibited. If you received this in error, please contact the sender and delete the material from any computer.

This e-mail, and any files transmitted with it, are intended only for the person or entity to which it is addressed and may contain confidential, protected, and/or privileged material. Any review, retransmission, dissemination or other use of, or taking of any action in reliance upon this information by persons or entities other than the intended recipient, is prohibited. If you received this in error, please contact the sender and delete the material from any computer.

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COOPERATION AGREEMENT BETWEEN THE COUNTY OF SAN LUIS

OBISPO AND THE CITY OF MORRO BAY FOR JOINT PARTICIPATION IN

THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM, THE HOME

INVESTMENT PARTNERSHIPS PROGRAM, AND THE EMERGENCY
SOLUTIONS GRANT PROGRAM FOR FISCAL YEARS 2027 THROUGH 2029 THIS COOPERATION AGREEMENT is made and entered into on the date and year last written below, by and between the County of San Luis Obispo, a political subdivision of the State of California, hereinafter called “County,” and the City of Morro Bay, a municipal corporation of the State of California, located in the County of San Luis Obispo, hereinafter called “City;” jointly referred to as “Parties”.

WITNESSETH
WHEREAS, in 1974, the U.S. Congress enacted, and the President signed a law entitled, The Housing and Community Development Act of 1974, herein called the “Act.” The Act is omnibus legislation relating to federal involvement in a wide range of housing and community development activities and contains eight separate titles; and
WHEREAS, Title I of the Act is entitled “Community Development” and governs programs for housing and community development within metropolitan cities and urban counties or communities by providing financial assistance annually for area-wide plans and for housing, public services, and public works programs; and
WHEREAS, the Community Development Block Grant Program (hereinafter referred to as “CDBG”), the HOME Investment Partnerships Act Program (hereinafter referred to as “HOME”), and the Emergency Solutions Grant Program (hereinafter referred to as “ESG”) are consolidated under Title I of the Act; and WHEREAS, the County has requested of the federal Department of Housing and Urban Development, hereinafter referred to as “HUD,” designate the County as an “Urban County;” and
WHEREAS, the County needs to requalify as an urban county and will be eligible to receive CDBG funds provided that the County’s entitled cities defer their entitlement to the County to enable both the County and the entitlement cities to jointly participate in the program; and
WHEREAS, the City desires to participate jointly with the County in the Urban County as authorized by signing this Cooperation Agreement; and

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WHEREAS, if HUD redesignates the County as an urban county, then the County may also be eligible to receive funds from the HOME Program and the ESG Program; and
WHEREAS, the CDBG Regulations issued pursuant to the Act provide qualified urban counties must submit an application to HUD for funds, and cities and smaller communities within the metropolitan area not qualifying as metropolitan cities may join the County in said application and thereby become a part of a more comprehensive County effort; and
WHEREAS, as the urban county applicant, the County must take responsibility and assume all obligations of an applicant under federal statues, including: the analysis of needs, the setting of objectives, the development of community development and housing assistance plans, the consolidated plan, and the assurances of certifications; and
WHEREAS, by executing this Agreement, the Parties hereby give notice of their intention to participate in the urban county CDBG, HOME, and ESG Programs; and
WHEREAS, the City Manager of the City of Morro Bay is authorized to execute this Agreement on behalf of the City; and
WHEREAS, the Chairperson of the Board of Supervisors or the Chief Executive Officer of the County of San Luis Obispo is authorized to execute this Agreement on behalf of the County
NOW THEREFORE, in consideration of the mutual promises, recitals and other provisions hereof, the Parties agree as follows:

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SECTION I. General.

A. Full Cooperation. The County and the City agree to cooperate to undertake, or assist in undertaking, essential community development and housing assistance activities, as approved and authorized between the Parties in the CDBG Agreements, including the Consolidated Plan.

B. Term of Agreement. This Agreement shall remain in effect for the threeyear program period of Federal Fiscal Years 2027, 2028, and 2029, and until funds granted and program income received during the three-year period are expended and the funded activities are completed. Neither the County nor the City may terminate, withdraw, or be removed from the program during the three-year program period. The three (3) year period commences on October 1, 2027, through September 30, 2030. a. The County shall, by the date in the Urban County Qualification Deadlines published on the HUD Exchange Urban Counties website for the next qualification period, notify the Participating Jurisdictions by letter of their right not to participate in the Urban County.

C. Scope of Agreement. This Agreement covers the following formula funding programs administered by HUD where the County is awarded and accepts funding directly from HUD: the CDBG Program, the HOME Program, and the ESG Program.
a. The participating City understands and agrees that it may receive a formula allocation under the HOME and ESG Programs only through the Urban County. This does not preclude the Urban County or City from applying for HOME or ESG funds from the State, if the State allows.
b. The participating City understands and agrees that it may not apply for grants under the State CDBG Program for the fiscal years during the period in which the Municipality participates in the Urban County’s CDBG Program.

D. Amendments. The Parties agree to adopt amendment(s) to this Agreement as may be required by HUD to meet any new Urban County Qualification requirement(s), when applicable. Failure by either Party to adopt any such amendment, and to submit such amendment to HUD, will void the agreement for such qualification period.

SECTION II. Program Administration.

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A. City Agreements. Pursuant to 24 CFR 570.501(b), the City is subject to the same requirements applicable to subrecipients, including the requirement of executing a written agreement with the County as set forth in 24 CFR 570.503.

B. Use of Program Income. The County may transfer the program income to the City, upon its termination of Urban County participation, provided that the City begins participating as an independent CDBG Entitlement grantee and agrees to use the program income in its own CDBG Entitlement program.

C. Fair Housing Implementation. The Parties agree that no Urban County funding shall be allocated or expended for activities in or in support of any cooperating unit of general local government that does not affirmatively further fair housing within its own jurisdiction or that impedes the County’s actions to comply with its fair housing certification.

D. Consolidated and Further Continuing Appropriations Act. The Parties to this Agreement understand and agree that they may not sell, trade, or otherwise transfer all or any portion of CDBG funds to a Metropolitan City, Urban County, unit of general local government, or insular area that directly or indirectly receives CDBG funds in exchange for any funds, credits, or non-Federal considerations, but must use such funds for activities eligible under Title I of the Housing and Community Development Act of 1974, as amended.

E. Special Provisions for the Urban County. The Urban County is prohibited from funding activities in, or in support of, any Participating Jurisdiction that impedes the County’s actions to comply with the County’s Fair Housing Certification. Noncompliance with the duty to affirmatively further fair housing by a Participating Jurisdiction may constitute noncompliance by the Urban County.

SECTION III. Compliance with Federal Statutes and Regulations.

A. General. The County and the City shall take all actions necessary to assure compliance with the County’s certification under Section 104(b) of Title I of the Housing and Community Development Act of 1974, as amended, that the grant will be conducted and administered in conformity with:
a. Title VI of the Civil Rights Act of 1964 (and the implementing regulations at 24 CFR Part 1);

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b. The Fair Housing Act, and the implementing regulations at 24 CFR Part 100, and will comply with the obligation to duty to affirmatively further fair housing; and
c. Section 109 of Title 1 of the Housing and Community Development Act of 1974, and the implementing regulations at 24 CFR Part 6, which incorporates:
i. Section 504 of the Rehabilitation Act of 1973, and the implementing regulations at 24 CFR Part 8;
ii. Title II of the Americans with Disabilities Act, and the implementing regulations at 28 CFR Part 35;
iii. The Age Discrimination Act of 1975, and the implementing regulations at 24 CFR Part 146;
iv. Section 3 of the Housing and Urban Development Act of 1968; v. Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, and the implementing regulations at 49 CFR Part 24;
vi. Section 104(d) of Housing and Community Development Act of 1974, and the implementing regulations at 24 CFR Part 42; and
d. Other applicable laws

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B. Certification Regarding Policies Prohibiting Use of Excessive Force and Regarding Enforcement of State and Local Laws Barring Entrances.

The County and the City each have adopted and are enforcing:
a. A policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in non-violent civil rights demonstrations; and
b. A policy of enforcing applicable State and local laws against physically barring entrance to or exit from a facility or location which is the subject of such non-violent civil rights demonstrations within its jurisdiction.

NOW, THEREFORE, it is agreed between the parties hereto that:

Agreement Signatures. This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but all of which, when taken together, shall constitute one and the same agreement. This Agreement may be executed and delivered by facsimile or scanned signature by any of the Parties and the receiving Party may rely on the receipt of such document so executed and delivered by facsimile or email as if the original had been received.

The Parties hereto have caused this Agreement to be executed and attested by their proper officer thereunder duly authorized.

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IN WITNESS WHEREOF, the Parties have executed this Agreement on the day and the year set forth below.

COUNTY OF SAN LUIS OBISPO, A Political Subdivision of the State of California
Jimmy Paulding
Chairperson of the Board of Supervisors
ATTEST:

Matthew P. Pontes
Ex-Officio Clerk of the Board of Supervisors
BY:

Deputy Clerk
(SEAL)
APPROVED AS TO FORM AND LEGAL EFFECT:

Jon Ansolabehere
County Counsel
By:

Deputy County Counsel
Dated:

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CITY OF MORRO BAY, a California Municipal Corporation
BY:

John Craig
City Manager
Date:

APPROVED AS TO FORM AND LEGAL EFFECT:

By:

Brian Stack
City Attorney
Dated:

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Prepared By: CM Dept Review: LT
City Manager Review: JC City Attorney Review: BS
Staff Report
TO: Honorable Mayor and City Council
FROM: Chris Munson, Harbor Director
Lori Thompson, Harbor Business Manager
SUBJECT: Approval of a Temporary License Agreement for Grassy Bar FLUPSY on the North T-Pier

RECOMMENDED ACTION
Approve temporary license agreement for Grassy Bar to dock a FLUPSY and work dock on the North T-Pier for an initial term of two years.

ALTERNATIVES
Not approving the license agreement or with modified terms.

FISCAL IMPACT
The license fee is $6,212 per calendar year which is equal to a boat of the same size, 37-feet, plus $1,643 per year electricity fee per plug used, resulting in a positive impact to the Harbor Operating Fund.

BACKGROUND
A FLUPSY (Floating Upweller System) is an aquatic nursery used in oyster farming to rapidly grow tiny juvenile oysters (spat) to a size where they can survive predators in the open ocean. Both Grassy Bar and Morro Bay Oyster Company operate a few FLUPSYs in Morro Bay at both public and private docks.

Grassy Bar approached the Harbor Department about using part of the North T-Pier for docking a 20’ FLUPSY and 16’ work dock attached to it. The FLUPSY and dock combined have a similar footprint and impact to a 37’ vessel. The license rent was priced accordingly. FLUPSYs require electricity to power the upwelling system and need water for occasional cleaning. Grassy Bar will pay the electricity fee per plug used.

Grassy Bar is currently going through the permitting process for the FLUPSY and dock on the North T-Pier; however, the Coastal Commission requires an approved license agreement before processing their Coastal Development Permit (CDP).

Allowing the use of the North T-Pier will help Grassy Bar keep their operations near their store front which will save time and money.

AGENDA NO: 6.e
MEETING DATE: July 28, 2026

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DISCUSSION
The North T-Pier is currently underused and has vacancy to support this license agreement. The Harbor Department has license agreements with United States Coast Guard (USCG), California Department of Fish & Wildlife (CDFW), and Cal Poly for dedicated use of the North T-Pier space.

Both parties will have the right to terminate upon thirty (30) days written notice, which will allow the Harbor Department to end the agreement if there are unforeseen impacts or problems. The Harbor Department will monitor power usage and reserves the right to install a metered power/water pedestal at the licensee’s expense if it appears that use is exceeding the revenue collected by the fixed utility fee.

Upon expiration of this License, Licensor’s Harbor Director may administratively execute two (2) twoyear renewals of this License. If it works well for both parties, there is the potential for expansion to increase operations and revenue.

CONCLUSION
Grassy Bar would like to enter into a license agreement with the City to have a space for their FLUPSY and dock on the North T-Pier. The City has entered into similar license agreements and is a source of revenue for the underutilized North T-Pier. Staff recommends approving the license agreement.

ATTACHMENTS

1. Temporary License Agreement for Use of Public Property – Grassy Bar

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License Agreement
-1-

TEMPORARY LICENSE AGREEMENT

FOR USE OF PUBLIC PROPERTY
The City of Morro Bay, a municipal corporation, (“Licensor”) hereby grants to Grassy Bar Oyster Company, Inc., a California corporation, (“Licensee”) a license (“this License”) for use of the real property located on the City North T-Pier at 1275 Embarcadero, Morro Bay, CA, illustrated on the attached Exhibit A (the “Premises”), subject to all the following terms and conditions:

1. USE: Subject to all the provisions of this License and only in recognition of the purpose set forth in this Paragraph, Licensee shall have permission to use of the Premises solely for dockage of a single floating upwelling system (Flupsy) that is 8’x20’ with approximately 2.5’ draw and placement of an adjacent working dock 8’x16’. Total dimensions 37’x 8’ (the “Floating Dock”).

Licensee will be allowed to exclude transient vessels from tying off to the Floating Dock.

Licensee may tie Licensee owned vessels to Floating Dock for an additional charge at the rate set forth in the City’s Master Fee Schedule for T-Pier dockage.

No storage of hazardous materials of any sort will be allowed on the Premises, including, but not limited to, such materials as fuels, chemicals, paints and oils.

The foregoing shall be defined as the “Permitted Uses.” The parties agree Licensee’s use of the Premises for the Permitted Uses shall be exclusive of any other use or user, except that of Licensor, subject to Paragraph 19, below.

2. LICENSOR REQUIREMENTS: In connection with the Permitted Uses, Licensee shall comply with all applicable Federal, State and local laws rules and regulations, including payment of local business taxes, if applicable.

3. EFFECTIVE DATE OF LICENSE: This License shall be effective on the later of September 1, 2026, or upon the date it is signed on behalf of Licensor, as long as it has also been signed on behalf of Licensee (the “Effective Date”).

4. TERM: The term of this License shall be for the period from the Effective Date, through August 31, 2028, (the “Term”) or termination pursuant to Paragraph 16, below.

5. RENEWAL: Licensor’s Harbor Director may administratively execute two two-year renewals of this License (the “Extended Term”). The Extended Term shall be effective only if an amendment to this License is signed by Licensor’s Harbor Director, or designee and Licensee. If a first Extended Term becomes effective, then the Extended Term shall expire on August 31, 2030 or termination pursuant to Paragraph 16, below. If

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License Agreement
-2-
a second extended Term becomes effective, then the Extended Term shall expire on August 31, 2032 or termination pursuant to Paragraph 16, below. License fee for each executed renewal will be assessed to match the current year City’s Master Fee Schedule using the Harbor’s T-Pier rate and electrical rate unless negotiated otherwise.

6. FEES: Licensee shall pay to Licensor a minimum guaranteed annual license fee (updated annually per City’s Master Fee Schedule) for the use of the Premises, in an initial amount of $6,212 per year payable in advance in equal semiannual installments on January 1 and July 1 each year during the term of the License (the “License Fee”). In addition to the license fee, Licensee shall pay the daily electrical convenience fee established on the City’s Master Fee Schedule in the amount of $1,643 per year (updated annually per City’s Master Fee Schedule) payable in advance along with the license fee, per electrical plug used. If the agreement is terminated for any reason prior to the end of an annual term, Licensor will return to Licensee, within 30 days of termination, the prorated amount of fees paid but unused, including deduction for any outstanding costs or damages owed to Licensor under this agreement.

7. OPERATION COSTS: Licensee may use the existing water and electrical services on the pier at no additional charge beyond the electrical convenience fee established in FEES subject to the following provisions. At the Harbor Director’s sole discretion, Licensee may be required to install a metered pedestal for electricity and/or water if actual utility costs appear to exceed what is recovered by the electrical convenience fee. If metered, the Harbor Department will collect a 10% administration fee of the utility costs for meter reading and administration. If at some future date Licensee desires to install additional services specific to Licensee’s vessels, then Licensee is responsible for all costs of installation, service charges and maintenance of any and all utilities or services required by Licensee on the pier. For clarification and not limitation, pursuant to Section 13 below, Licensor will be held harmless for any failure of utilities or services to the pier.

8. MAINTENANCE: Licensee shall be responsible to maintain the Premises in a clean and presentable manner and keep the area abutting the Premises free from waste, debris, trash and other rubbish. Upon termination this License for any reason, Licensee shall leave the Premises free from waste, debris, trash, pollution/spills and other rubbish and in a good condition, subject to normal wear and tear.

9. SIGNS: Any and all signs installed or used by Licensee that are visible to the public from outside the Premises shall not be installed or used without the prior written approval of Licensor’s Harbor Director, and subject to all applicable Licensor zoning laws, rules and regulations and all required land use Licensor approvals and permits shall be obtained.

10. IMPROVEMENTS: Licensee shall not make any improvements to the Premises without prior approval from Licensor’s Harbor Director. Upon termination of this License for any reason, any improvements of any kind installed by or on behalf of Licensee and left on Premises shall become the property of Licensor at no cost whatsoever, including any damages for condemnation, inverse condemnation or relocation benefits or loss of goodwill, however, Licensee and Licensor further agree that Licensor has the option and right to require Licensee to remove any improvements of any kind installed by or on behalf of Licensee upon the Premises at the termination of this License, however

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License Agreement
-3-
occurring, providing Licensor gives Licensee notice, in writing, no later than thirty days prior to termination of License. If Licensor exercises such option and Licensee fails to remove such improvements within sixty days after termination of License, Licensor shall have the right to have such improvements removed at expense of Licensee.

11. LICENSEE OBLIGATIONS: Termination of this Licensee shall not terminate Licensee’s obligations pursuant to Paragraphs 12, 13, 14, 15, 16, 17 and 18.

12. TAXABLE INTEREST: This License is not intended to create any interest in real property. If it is determined, by a governmental agency dually authorized to make such decision, this License creates any taxable interest, including, but not limited to, a possessory interest, then Licensee shall be solely responsible to pay such taxes to the extent such taxes are required by law to be paid.

13. HOLD HARMLESS: Licensee agrees to and hereby does hold harmless, indemnify and defend Licensor and its officers, agents and employees (“Indemnitees”) from any claim, judgment, liability, award, damages, loss or expense, including reasonable attorney’s fees and court costs (“Damages”), arising out of or related to the use of the Premises by Licensee or any of its officers, employees, agents, invitees or customers, including, but not limited to, any hazardous materials releases; provided, that Licensee’s obligation to defend and indemnify shall apply only to the extent Licensee, its officers, employees or agents caused the Damage. For purposes of this License, hazardous materials shall mean any materials as defined by State or Federal laws.

14. INSURANCE: Without limiting the obligation set forth in the immediately preceding sentence, during the term of this License Licensee shall provide evidence of insurance as provided in Exhibit B.

15. NO LIENS ON PREMISES: Licensee shall not permit or suffer any mechanic’s or materialman’s or other lien of any kind or nature to be recorded or enforced against the Premises for any work done or materials furnished thereon at the instance of requirement of or on behalf of Licensee; and Licensee agrees to indemnify and hold harmless Licensor and the Premises against and from any and all liens, claims, demands, costs and expenses of whatsoever nature in any way connected with such work done, labor performed or material furnished in connection with Licensee’s use of the Premises.

16. RIGHT TO TERMINATE/NO DISPLACEMENT LIABILITY: Either party shall have the right to terminate this License, with or without cause, upon thirty-days’ (30-days’) written notice to the non-terminating party. Licensor shall not be liable (i) for any displacement or relocation benefits or expenses experienced by Licensee, (ii) for reimbursement for any improvements installed by Licensee or (iii) for any damages in condemnation, inverse condemnation, loss of goodwill or other legal or equitable bases resulting, directly or indirectly, from any action or inaction of or on behalf of Licensor that may be in any way connected with any termination of this License for any reason or any relocation of Licensee from the Premises for any reason.

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License Agreement
-4-

17. GOVERNING LAW: The terms of this License shall be interpreted according to the laws of the State of California. If arises out of this License, then venue shall be in the Superior Court of San Luis Obispo County.

18. LITIGATION FEES: If either party commences action against the other party arising out of or in connection with this License, then the prevailing party shall be entitled to have and recover from the other party reasonable attorneys’ fees and costs of suit.

19. LICENSOR USE OF PREMISES: Licensor may use the Premises for dockage; provided, that such use shall not unreasonably interference with or prevent in any substantial way Licensee’s ability to utilize the Premises for the purposed set forth herein; and provided, further, that Licensor shall be responsible for all operation costs and maintenance for the portion of the Premises it or Licensor uses or occupies. In addition, without any implied or expressed limitation on Licensor’s authority and right to access and inspect the Premises in its governmental capacity, Licensor shall have the right to access at any time to the Premises for inspections.

At any time during the Term, Licensor reserves the right to have Licensee relocate the Floating Dock to an alternate location at reasonable discretion of Licensor. The costs for that relocation and any repairs required on the Premises due to Licensee’s use of the Premises or relocation of the Floating Dock shall be borne solely by Licensee.

20. TRANSFERABILITY AND ASSIGNABILITY: The License is neither transferable nor assignable by Licensee without the written consent of Licensor.

21. NOTICES: All notices given or required to be given pursuant to this License shall be in writing and may be given by personal delivery or by mail. Notice sent by mail shall be addressed as follows:

To Licensor:

City of Morro Bay
Attn: Harbor Director
1275 Embarcadero
Morro Bay, CA 93442
To Licensee:

Grassy Bar Oyster Company, Inc.

Diane Y. Kim, Ph.D., Chief Executive Officer
1215 Embarcadero, Suite D
Morro Bay, CA 93442
[email protected]
///
///
///

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License Agreement
-5-

22. ENTIRE AGREEMENT: This License (i) constitutes the entire agreement of the parties hereto relating to the use, operation and maintenance of the Premises and (ii) shall supersede prospectively from the date it is entered into any and all prior written or oral negotiations or agreements of the parties relating to the Premises. This License shall not be modified in any particular except by a written amendment duly executed by the parties.

LICENSEE
Dated: __________________ _________________________________ ___________________
Its ________________
Dated: __________________ _________________________________ ___________________
Its ________________

LICENSOR
Dated: __________________ By:__________________________________ John Craig, City Manager
APPROVED AS TO FORM:

By: ________________________________
Brian Stack, City Attorney

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01181.0024/874149.1 Page 1 of 1

EXHIBIT A

AERIAL OF PREMISES

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01181.0024/874149.1 Page 1 of 5

CITY OF MORRO BAY

EXHIBIT B

INSURANCE REQUIREMENTS
Prior to the beginning of and throughout the duration of the Agreement, Licensee will maintain insurance in conformance with the requirements set forth below. Licensee will use existing coverage to comply with these requirements. If that existing coverage does not meet the requirements set forth here, Licensee agrees to amend, supplement or endorse the existing coverage to do so. Licensee acknowledges that the insurance coverage and policy limits set forth in this section constitute the minimum amount of coverage required. Any insurance proceeds available to Licensor in excess of the limits and coverage required in this agreement and which is applicable to a given loss, will be available to Licensor.

Licensee shall provide the following types and amounts of insurance:

Commercial General Liability Insurance using Insurance Services Office “Commercial General Liability” policy from CG 00 01 or the exact equivalent. Defense costs must be paid in addition to limits. There shall be no cross liability exclusion for claims or suits by one insured against another. Limits are subject to review but in no event less than $1,000,000 per occurrence.

Business Auto Coverage on ISO Business Auto Coverage from CA 00 01 including symbol 1 (Any Auto) or the exact equivalent. Limits are subject to review, but in no event to be less than $1,000,000 per accident. If Licensee owns no vehicles, then this requirement may be satisfied by a non-owned auto endorsement to the general liability policy described above. If Licensee or Licensee’s employees will use personal autos in any way on this project, then Licensee shall provide evidence of personal auto liability coverage for each such person.

Property Damage Insurance in an amount of not less than $1,000,000 for damage to the property of each person on account of any one occurrence.

Workers Compensation on a state-approved policy form providing statutory benefits as required by law with employer’s liability limits, if required.

Excess or Umbrella Liability Insurance (Over Primary) if used to meet limit requirements, shall provide coverage at least as broad as specified for the underlying coverages. Any such coverage provided under an umbrella liability policy shall include a drop down provision providing primary coverage above a maximum $25,000 self-insured retention for liability not covered by primary but covered by the umbrella. Coverage shall be provided on a “pay on behalf” basis, with defense costs payable in addition to policy limits. Policy shall contain a provision obligating insurer at the time insured’s liability is determined, not requiring actual payment by the insured first. There shall be no cross liability exclusion precluding coverage for claims or suits by one insured against another. Coverage shall be applicable to Licensor for injury to employees of Licensee, subcontractors or others involved in the Work. The scope of coverage provided is

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City of Morro Bay
Exhibit B

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subject to approval of Licensor following receipt of proof of insurance as required herein. Limits are subject to review but in no event less than $1,000,000 per occurrence.

Insurance procured pursuant to these requirements shall be written by insurer that are admitted carriers in the state California and with an A.M. Bests rating of A- or better and a minimum financial size VII.

General conditions pertaining to provision of insurance coverage by Licensee. Licensee and Licensor agree to the following with respect to insurance provided by Licensee:

1. Licensee agrees to have its insurer endorse the third party general liability coverage required herein to include as additional insureds Licensor, and its officials, employees and agents, using standard ISO endorsement No. CG 2010 with an edition prior to 1992.

Licensee also agrees to require all Licensees, and subcontractors to do likewise.

2. No liability insurance coverage provided to comply with this Agreement shall prohibit Licensee, or Licensee’s employees, or agents, from waiving the right of subrogation prior to a loss. Licensee agrees to waive subrogation rights against Licensor regardless of the applicability of any insurance proceeds, and to require all Licensees and subcontractors to do likewise.

3. All insurance coverage and limits provided by Licensee and available or applicable to this agreement are intended to apply to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to Licensor or its operations limits the application of such insurance coverage.

4. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to Licensor and approved of in writing.

5. No liability policy shall contain any provision or definition that would serve to eliminate so-called “third party action over” claims, including any exclusion for bodily injury to an employee of the insured or of any Licensee or subcontractor.

6. All coverage types and limits required are subject to approval, modification and additional requirements by Licensor, as the need arises. Licensee shall not make any reductions in scope of coverage (e.g., elimination of contractual liability or reduction of discovery period) that may affect Licensor’s protection without Licensor’s prior written consent.

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City of Morro Bay
Exhibit B

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7. Proof of compliance with these insurance requirements, consisting of certificates of insurance evidencing all of the coverages required and an additional insured endorsement to Licensee’s general liability policy, shall be delivered to Licensor at or prior to the execution of this Agreement. In the event such proof of any insurance is not delivered as required, or in the event such insurance is canceled at any time and no replacement coverage is provided, Licensor has the right, but not the duty, to obtain any insurance it deems necessary to protect its interests under this or any other agreement and to pay the premium. Any premium so paid by Licensor shall be charged to and promptly paid by Licensee or deducted from sums due Licensee, at Licensor’s option.

8. It is acknowledged by the parties of this agreement that all insurance coverage required to be provided by Licensee or any subcontractor, is intended to apply first and on a primary, noncontributing basis in relation to any other insurance or self insurance available to Licensor.

9. Licensee agrees to ensure that subcontractors, and any other party involved with the project who is brought onto or involved in the project by Licensee, provide the same minimum insurance coverage required of Licensee. Licensee agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Licensee agrees that upon request, all agreements with subcontractors and others engaged in the project will be submitted to Licensor for review.

10. Licensee agrees not to self-insure or to use any self-insured retentions or deductibles on any portion of the insurance required herein and further agrees that it will not allow any Licensee, subcontractor, Architect, Engineer or other entity or person in any way involved in the performance of work on the project contemplated by this agreement to self-insure its obligations to Licensor. If Licensee’s existing coverage includes a deductible or selfinsured retention, the deductible or self-insured retention must be declared to Licensor. At the time Licensor shall review options with the Licensee, which may include reduction or elimination of the deductible or self-insured retention, substitution of other coverage, or other solutions.

11. Licensor reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Licensee ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Licensee, Licensor will negotiate additional compensation proportional to the increase benefit to Licensor.

12. For purposes of applying insurance coverage only, this Agreement will be deemed to have been executed immediately upon any party hereto taking any steps that can be deemed to be in furtherance of or towards performance of this Agreement.

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City of Morro Bay
Exhibit B

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13. Licensee acknowledges and agrees that any actual or alleged failure on the part of Licensor to inform Licensee of non-compliance with any insurance requirements in no way imposes any additional obligations on Licensor nor does it waive any rights hereunder in this or any other regard.

14. Licensee will renew the required coverage annually as long as Licensor, or its employees or agents face an exposure from operations of any type pursuant to this agreement. This obligation applies whether or not the agreement is canceled or terminated for any reason. Termination of this obligation is not effective until Licensor executes a written statement to that effect.

15. Licensee shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from Licensee’s insurance agent to this effect is acceptable. A certificate of insurance and/or additional insured endorsement as required in these specifications applicable to the renewing or new coverage must be provided to Licensor within five days of the expiration of the coverages.

16. The provisions of any workers’ compensation or similar act will not limit the obligations of Licensee under this agreement. Licensee expressly agrees not to use any statutory immunity defenses under such laws with respect to Licensor, its employees, officials and agents.

17. Requirements of specific coverage features or limits contained in this section are not intended as limitations on coverage, limits or other requirements nor as a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue, and is not intended by any party or insured to be limiting or all-inclusive.

18. These insurance requirements are intended to be separate and distinct from any other provision in this agreement and are intended by the parties here to be interpreted as such.

19. The requirements in this Section supersede all other sections and provisions of this Agreement to the extent that any other section or provision conflicts with or impairs the provisions of this Section.

20. Licensee agrees to be responsible for ensuring that no contract used by any party involved in any way with the project reserves the right to charge Licensor or Licensee for the cost of additional insurance coverage required by this agreement. Any such provisions are to be deleted with reference to Licensor. It is not the intent of Licensor to reimburse any third party for the cost of complying with these requirements. There shall be no recourse against Licensor for payment of premiums or other amounts with respect thereto.

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City of Morro Bay
Exhibit B

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21. Licensee agrees to provide immediate notice to Licensor of any claim or loss against Licensee arising out of the work performed under this agreement. Licensor assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve Licensor.

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Prepared By: DS Dept Review:____________
City Manager Review: JC City Attorney Review: BS
Staff Report
TO: Honorable Mayor & City Council
FROM: Dana Swanson, City Clerk
SUBJECT: Advisory Board Interviews and Appointments to Fill Unscheduled Vacancies for terms ending January 31, 2027 on the Citizens Oversight/Finance Advisory Committee and Public Works Advisory Board

RECOMMENDED ACTION
Conduct interviews and make appointments to fill unscheduled vacancies on the Citizens Oversight/Finance Advisory Committee (“CFAC”) and Public Works Advisory Board (“PWAB”).

ALTERNATIVES
The Council may choose to not fill one or both of the vacancies and direct staff accordingly.

BACKGROUND/DISCUSSION
On April 28, 2026, City staff learned of the passing of CFAC Member Jean Johnson. Ms. Johnson was appointed to serve on the CFAC in February 2023 and, among many other valued community contributions, collaborated with Subcommittee Member Brian Dorfman to research viable revenue enhancement opportunities that were presented to the City Council in October 2025. Ms.

Johnson’s passing leaves an unscheduled CFAC vacancy for a term ending January 31, 2027.

On May 28, 2026, Robert Nava announced his resignation from the PWAB, a role he served in since August 2021. Mr. Nava’s resignation leaves an unscheduled PWAB vacancy for a term ending January 31, 2027.

Notices the City was accepting applications to fill these unscheduled vacancies were placed on the City website and “e-notification” service, published in the Estero Bay News, listed in the annual Local Appointments List (Maddy Act Notice) posted in the City Hall and Library kiosks, and distributed via City’s Facebook page. Two applications for each advisory body were received during the recruitment period which closed Friday, July 10th.

The following individuals submitted applications (Attachment 1) for consideration by the City Council.

1. CFAC - Michael Jones

2. CFAC – Thomas (Tom) Starnes

3. PWAB – Michael Lucas

4. PWAB – Wendelyn (Lyn) Wickham
AGENDA NO: 8.a
MEETING DATE: July 28, 2026

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Following interviews for each advisory body, the Council may make the appointment either by motion, second and voice vote or the Council may vote by written ballot with the results announced and each member’s vote read into the record by the City Clerk.

ATTACHMENTS & REFERENCE DOCUMENTS

1. Applications

2. Link to current Local Appointment List

3. Link to Advisory Body Handbook & By-laws

4. Link to Council Policies & Procedures Manual

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Application Review, Sep 29, 2025
Citizens Finance Advisory Committee
City of Morro Bay
Personal Info
Phone number
Email
Address
--
Social Media
--Websites
--
Source
Applied through your website's jobs page
Responsibility
Recruiter
Rachael Hendricks
Coordinator
--
Michael Jones
Candidate Application
Job Post Questions
I would like to be considered for appointment to the following Commission/Advisory Body:

Citizens Finance Advisory Committee
Please provide your residential address.
, Morro Bay CA 93442
Are you registered to vote in the City of Morro Bay?
Yes
What's your highest level of education, institution name, and field of study? Graduate Degree (MBA) Specializing in Finance & Corporate Strategy Are you currently or have you previously served on a board, commission, committee, or other public body? If yes, which one and when? What do you feel were the advisory body’s major accomplishment(s) during your tenure? Most recently: American Heart Association Los Angeles Governing Body (Go Red for Women Initiative) - Collaborated to set up programming for high school aged girls interested in STEM education. This included various site visits to tech company, biotech, media and finance companies to expose each cohort to various career paths. 1 Powered by Greenhouse

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As CFO of The Community Foundation San Luis Obispo County, I oversee a $94 million endowment, manage budgeting, audit, and compliance processes, and provide transparent reporting to boards and stakeholders. My background at Goldman Sachs, PIMCO, and Wave Financial further developed my expertise in risk management, fiscal oversight, and strategic planning. These experiences, combined with a commitment to public accountability and community service, prepare me to contribute effectively to the Citizens Finance Committee.

Why are you interested in serving on this advisory board, commission, or committee? I am interested in serving on the Citizens Finance Committee because I believe sound fiscal management is essential to the long-term health of Morro Bay. As a resident, I want to contribute my professional financial expertise to ensure transparency, accountability, and sustainability in the City’s budgeting and planning. Serving on this committee offers an opportunity to give back to the community while helping safeguard its financial future.

I have read the Advisory Bodies Handbook regarding the expectations and responsibilities of this Commission/Advisory Board/Committee and, should I be appointed, am able and willing to devote the necessary time to perform the required duties. https://www.morrobayca.gov/DocumentCenter/View/8325/Advisory-Bodies-Handbook-and-By-Laws?bidId= Yes
2 Powered by Greenhouse

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Michael Jones
. Morro Bay, CA 93442 | |
Profile
Finance executive with 15+ years of experience in capital markets, investment management, and nonprofit financial leadership. Currently serving as CFO of The Community Foundation San Luis Obispo County, with a proven track record in fiscal oversight, risk management, and strategic planning. Skilled in translating complex financial data into clear, actionable insights for boards, stakeholders, and community partners. Committed to strengthening transparency, accountability, and long-term financial sustainability for public and community institutions.

Experience
CHIEF FINANCIAL OFFICER | COMMUNITY FOUNDATION SAN LUIS OBISPO COUNTY | AUGUST 2023 – PRESENT
· Executive Oversight: Lead financial strategy, planning, and reporting for a $94mm+ nonprofit foundation serving donors, grantees, and the San Luis Obispo County community. · Investment Management: Oversee investment management of the Foundation’s endowment and restricted funds, coordinating with external advisors to ensure prudent stewardship.
· Financial Controls: Direct budgeting, audit, and compliance processes, ensuring adherence to GAAP and nonprofit regulatory requirements.
· Strategic Oversight and Change Management: Develop scenario planning models addressing risks from state and federal funding shifts, providing actionable strategies to the Board.
· Governance: Partner with the CEO and Board of Directors on strategic planning, governance, and long-term sustainability initiatives.
· Leadership: Served as Interim CEO (2025), ensuring operational stability and strategic continuity during executive transition.

HEAD OF BUSINESS DEVELOPMENT| WAVE FINANCIAL | 2020-2023 · Capital Introduction: Spearhead fundraising efforts, raising north of $30mm in assets under management across venture fund products as well as bespoke portfolio management solutions; Total opportunity pipeline of over $500mm representing between $8-10mm of annual revenue.
· Corporate Strategy & Product Development: Reporting to the Chief Strategy Officer, worked closely with executive team on all internal business initiatives such as fundraising, corporate structuring, Sales P&L forecasting, marketing/growth strategy, & top-down business development strategy.

INVESTMENT MANAGEMENT | GOLDMAN SACHS & CO. | 2016- 2020 · Strategic Advisory: Advised key clients in the region on behalf of the Firm on asset allocation & risk management considerations across public & private investment markets; assets under management generated: approximately $80mm. · Client Management: Conducted ongoing quarterly & annual portfolio reviews for client relationships divided among the broader team (approx. $2.2B in AUM); actively managed

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client portfolios via a combination of manager selection, asset allocation, options trading/risk analytics, and data-driven pre-sale planning.

CLIENT MANAGEMENT | PACIFIC INVESTMENT MANAGEMENT CO. | 2008- 2015
· Client Management: Advised clients within the Firm’s largest institutional channel (over $80B in assets focused on financial services organizations) on investment solutions; provided holistic coverage involving intimate product expertise, investment strategy review, portfolio analytics/attribution, & custom reporting to support positive client outcomes.
· Strategy Development: Reporting to the Head of Client Management, managed ongoing department-level revenue targets and forecasting to provide management with critical KPI’s in the pursuit of data driven business decisions (approx. $800B dept. AUM); Contextualized product-level KPI’s to support the direction of marketing resources and field sales support.

Education
B.S. IN BUSINESS ADMINISTRATION | JUNE 2008 | CALIFORNIA STATE

UNIVERSITY NORTHRIDGE
MASTER OF BUSINESS ADMINISTRATION | JUNE 2017 | VANDERBILT

UNIVERSITY
Skills & Abilities
· Financial Strategy & Planning
· Investment Management & Endowment
Stewardship
· Governance/Policy Development
· Data Analytics/Scenario Planning
· Stakeholder/Community Engagement
· Strategic Philanthropy/Complex gift
planning

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Michael Jones
.

Morro Bay, CA 93442
September 25, 2025
City Clerk’s Office
City of Morro Bay
595 Harbor Street
Morro Bay, CA 93442
Dear Members of the Selection Committee,
I am writing to apply for a volunteer position on the Citizens Finance Committee for the City of Morro Bay. With over 15 years of experience in capital markets, investment management, and nonprofit financial leadership, I am eager to bring my background in fiscal oversight and strategic planning to support the City’s financial health and longterm sustainability.

In my current role as Chief Financial Officer of The Community Foundation San Luis Obispo County, I oversee a $94 million endowment that directly supports local nonprofits and community initiatives. My responsibilities include developing financial strategies, managing investments, ensuring compliance with nonprofit accounting standards, and preparing transparent reports for our Board and stakeholders.

Importantly, I have worked closely with governing bodies to strengthen fiscal accountability, build risk management frameworks, and enhance public trust through clear communication of complex financial matters.

Prior to my nonprofit leadership role, I spent more than a decade in investment and client management at firms such as Goldman Sachs and PIMCO. That experience honed my skills in asset allocation, risk analysis, and stakeholder reporting, competencies I now apply in a civic context to ensure prudent stewardship of community resources.

As a resident of Morro Bay, I am deeply committed to the responsible management of public resources that impact our community’s future. I view service on the Citizens Finance Committee as an opportunity to contribute both technical expertise and a collaborative spirit to ensure our City’s budgeting, oversight, and planning processes remain strong, transparent, and responsive to residents’ needs.

Thank you for considering my application. I would welcome the opportunity to contribute to the City of Morro Bay by serving on the Citizens Finance Committee.

Sincerely,
Michael Jones

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Application Review, Jun 22, 2026
Citizens Finance Advisory Committee
City of Morro Bay
Personal Info
Phone number
Email
Address
--
Social Media
--Websites
--
Source
Applied through your website's jobs page
Responsibility
Recruiter
Skyler Onaga
Coordinator
--
Thomas Starnes
Candidate Application
Job Post Questions
I would like to be considered for appointment to the following Commission/Advisory Body:

Citizens Finance Advisory Committee
Please provide your residential address.
, Morro Bay
Are you registered to vote in the City of Morro Bay?
Yes
What's your highest level of education, institution name, and field of study? Bachelor of Arts, UC Irvine, Social Science. I was also the Editor in Chief of the student newspaper. 1 Powered by Greenhouse

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Are you currently or have you previously served on a board, commission, committee, or other public body? If yes, which one and when? What do you feel were the advisory body’s major accomplishment(s) during your tenure? I spent many years on committees and commissions as well as meeting regularly with stakeholder groups. I was the Executive Officer of the Orange County Parks Commission. I also was a Board Member of the Greater Vallejo Recreation District, Orange County Natural Communities Coalition, the Orange County Parks Foundation, and the Laguna Canyon Foundation. I attended and co-moderated meetings of Friends of Harbors, Beaches and Parks.

Additionally, I was the Orange County representative on the Dana Point Harbor Merchants Association for 3 years. I am proud of the many accomplishments of the various boards I have been on.

Most recently, at the Greater Vallejo Recreation District, it was a very positive result from a fiscal perspective. When I was appointed, the district was struggling financially to the point where they were depleting all their reserves to just make payroll. This was a result of a program of overspending at the direction of prior Board Members and against the wishes of the City Council, General Manager, and staff. I believe I was a contributing factor in supporting staff and convincing fellow Board Members to change the fiscal environment. By the time I resigned to relocate to Morro Bay, we had replenished reserves and had a balanced budget of operating funds without sacrificing service to the public.

What experience, technical training and skills qualify you for an appointment, considering your experience and activities in business, labor, professional, social, or other organizations?
I have almost 30 years of management experience in the public sector, including most recently as a Board Member for the Greater Vallejo Recreation District. Just prior to that I worked for 25 years at the County of Orange and OC Parks where I was appointed as the Director. As the Director of OC Parks, I was responsible for the financial wellbeing and stewardship of nearly 60,000 acres of parkland, open space, historical sites, beaches, shoreline, harbors, and a zoo, serving 16 million visitors annually. The annual operating budget was more than $145 million.

I have developed and executed recreation, conservation, financial, and business strategies. I have expertise in budgeting, land management, public administration, contracts, performance assessment, project management, emergency operations, wildfire mitigation strategies, public information, and best practices in internal and external communications.

I am passionate about fiscal responsibility and staff development. In addition to mentoring staff at all levels, I regularly collaborated with multiple labor organizations including Teamsters, Orange County Sheriff’s Association, Orange County Employees Association, and Orange County Management Association on labor negotiations and employee relations issues. I have also interacted regularly and effectively with elected officials, including State Assemblymembers, County Board of Supervisors and City Council Members; as well as their staff, appointed officials; and countywide and state Commissions and Committees, including the Coastal Commission. Additionally, I have experience working on boards, with stakeholder groups, and with members of the public.

Why are you interested in serving on this advisory board, commission, or committee? After a career in public service, my wife and I recently fulfilled our longtime goal of making Morro Bay our home. I have a lengthy, high-level background in municipal government and want to contribute the knowledge I have acquired in my career to make meaningful contributions to the community. I wish to do this in a way that is respectful to the views of the elected officials, supportive of staff, and beneficial to the public.

I am eager to give back to the community by applying my experience in public finance, budgeting, and organizational leadership to help ensure transparency and accountability in the use of Measure E revenues. I spent many years being engaged in public discourse with the public, elected officials, and serving on committees and commissions as well as meeting regularly with stakeholder groups. I believe these experiences will be useful in this capacity. I have a strong desire to be engaged in the community in which I live and support the local government.

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TOM STARNES
Morro Bay, CA 93442
| (
SUMMARY  Nearly 30 years of public sector management and executive leadership experience.  Served as Director of OC Parks after a 25-year career with the County of Orange.  Managed the stewardship of nearly 60,000 acres of parks, beaches, harbors, historic sites, open space, and a zoo.
 Oversaw an annual operating budget exceeding $145 million.  Developed and implemented recreation, conservation, and business strategies.  Expertise in budgeting, public administration, contracts, and project management.  Experienced in emergency operations, wildfire mitigation, and organizational performance assessment.
 Strong advocate for fiscal responsibility, accountability, and staff development.  Worked collaboratively with elected officials, boards, commissions, and advisory committees at all levels.
 Served as a Board Member of the Greater Vallejo Recreation District and has extensive experience engaging stakeholders and the public.

EXPERIENCE BOARD MEMBER GREATER VALLEJO RECREATION DISTRICT After retiring and relocating to the Bay Area, I was appointed and served on the Board of the Greater Vallejo Recreation District (GVRD). I served as Board Member, Secretary, Vice Chair, and Chair during my tenure. GVRD operates as an autonomous special district within the City of Vallejo that is supported by its own property tax increment. The City owns a majority of the parks that the District assumes responsibility for maintaining and operating under a master lease agreement. The District is overseen by an appointed Board of Directors (three board members are appointed by the Vallejo City Council and two by Solano County Supervisors) and a General Manager who has day-to-day operating and fiduciary responsibility. I recently left that position to relocate to Morro Bay.

DIRECTOR OC PARKS
Managed a staff of 354 full-time, union-represented employees and more than one thousand contract workers. Responsible for stewardship of nearly 60,000 acres of parkland, turf parks, open space, historical sites, beaches, shoreline, harbors, and a zoo, serving approximately 16 million visitors annually. The annual operating budget was more than $145 million. Developed and executed recreation, conservation, and business strategies. Oversight of all land management, public administration, contracts, performance assessment, project management, emergency operations, wildfire mitigation strategies, public information, human resources, legal issues, and internal and external communications. Represented the department externally and interacted effectively with elected officials, including Commissions, Committees, County Board of Supervisors, City Council Members, their staff, and appointed officials. Additionally, represented department at events, presentations, speeches, with during presentations to stakeholder groups and members of the public. Served on multiple commissions and boards, notably as the Executive Officer of the Orange County Parks Commission.

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DEPUTY DIRECTOR OC PARKS
Managed a staff of more than 100 full-time, union-represented employees and several hundred contract workers. Worked with a diverse group of professionals across four divisions. As Administrative Deputy Director, was responsible for business and administration (policy, budget, employee services); strategic communications (outreach, marketing, events); entitlements (land use, mitigation, permits); and planning and design (park master plans, resource management plans, rehabilitation projects). In fulfilling these responsibilities, I worked with myriad County agencies and external organizations including the Board of Supervisors, Orange County Public Works, Orange County Fire Authority, Orange County Sheriff, US Forest Service, US Fish and Wildlife Service, California State Parks, California Coastal Commission, US Army Corps of Engineers, and numerous municipalities, non-profits, and community groups.

STRATEGIC COMMUNICATIONS MANAGER OC PARKS
Supervised Communications Division staff of 11. Developed annual communications strategic business plan and manage annual budget of more than $2.5 million, including budget forecasting. Collaborated with County human resources team on all HR matters in OC Parks.

Oversaw all large special events such as the Summer Concert Series and Sunset Cinema Film Series, totaling 24 events over the span of 15 weeks annually with a combined attendance of nearly 40,000 people. Supervised event permitting function, issuing up to 1,800 permits to the public annually, and parking and annual pass sales, generating more than $4 million in sales annually. Oversaw the point of sale and reservation systems. Managed all OC Parks internal and external communications, including videos, flyers, brochures, presentations, awards applications, displays, manuals, and the employee newsletter. Supervised website content, social media, public relations, public information, marketing, and all media management.

Leveraged media relations opportunities to expand awareness and visitation, resulting in almost $9 million in earned media value and more than 9 billion media impressions annually.

Monitored advertising and media efforts to ensure annual outreach strategy was on track with department goals; provided updates and reports to executive management. Collaborated with elected officials and Board of Supervisors’ staff, County Chief Executive Office, and other county agency leadership for all media relations and special event functions. Managed all customer care functions including capturing, responding to, and recording complaints.

COMMUNICATIONS MANAGER OC PARKS
Developed, implemented, and managed programs, projects, and events for more than 25 OC Parks facilities. Developed annual communications strategic business plan and managed annual budget of $2 million, including budget forecasting and management approval. Supervised communications division staff of 10 and multiple contract services, including responsibility for special events, public information, website content, social media, reservation system, parking, customer relations and special event permits. Managed community outreach programs for purposes of public input, education, and awareness. Monitored advertising and media efforts to ensure annual outreach strategy is on track with department goals; provide updates and reports to executive management. Wrote and edited agency-wide materials, including brochures, presentations, awards applications, annual reports, displays and manuals. Managed branding and messaging organization-wide; managed and launched a re-branding campaign for all parks facilities, including developing new brochures, maps, and other collateral for each facility.

Oversaw website strategy program, including a complete site redesign project, mobile web app

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development and ongoing maintenance. Collaborated with elected officials and Board of Supervisors’ staff, County Chief Executive Office, and other county agency leadership.

PUBLIC INFORMATION OFFICER ORANGE COUNTY PROBATION DEPARTMENT Managed media relations and developed content for publications, website, and other community outreach collateral. Created annual reports and managed department’s balanced scorecard process. Responded to media inquiries and proactively pursued publicity opportunities with local and national outlets, often with sensitive or emergency-related subject matter; worked with NBC Nightly News, Fox News, Discovery Channel and PBS, as well as reporters from local media. Developed presentations, videos and brochures highlighting the department’s rehabilitation and education programs. Analyzed and tracked legislation affecting the department, including implementation of resulting funding; held lead role in oversight of Juvenile Justice Crime Prevention Act state funding implementation. Conducted facility tours for media, elected officials and community partner groups.

EDUCATION UC IRVINE, SOCIAL SCIENCE
Editor-in-Chief of UCI Student Newspaper

UC IRVINE, PROJECT MANAGEMENT CERTIFICATE

CHAPMAN UNIVERSITY, LEADERSHIP CERTIFICATE

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June 19, 2026
Tom Starnes
.

Morro Bay, CA 93442
Dana Swanson, City Clerk
City of Morro Bay
595 Harbor Street
Morro Bay, CA 93442
Dear City Clerk Dana Swanson,
I am pleased to submit my application for appointment to the Citizens Finance Advisory Committee for the City of Morro Bay. After a career in public service, my wife and I recently fulfilled our longtime goal of making Morro Bay our home. I am eager to give back to the community by applying my experience in public finance, budgeting, and organizational leadership to help ensure transparency and accountability in the use of Measure E revenues.

During my career, including 25 years with the County of Orange and retiring as Director of OC Parks, I was responsible for the financial stewardship of an an annual operating budget exceeding $145 million. I developed and implemented financial and operational strategies, managed public resources, and worked closely with elected oƯicials, advisory boards, labor organizations, and community stakeholders to ensure responsible use of taxpayer funds.

I have also served on numerous boards and commissions, including as a Board Member of the Greater Vallejo Recreation District, where I helped support policies that restored the District's financial stability by rebuilding reserves while maintaining services to the public. That experience reinforced my commitment to fiscal responsibility, transparency, and collaborative decision-making.

I would be honored to bring my experience to the Citizens Finance Advisory Committee. I am committed to providing objective, thoughtful oversight, supporting City staƯ and elected oƯicials, and helping ensure that local sales tax revenues are managed in accordance with voter intent and for the benefit of the Morro Bay community.

Thank you for your consideration.

Sincerely,
Tom Starnes

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Application Review, Jul 10, 2026
Public Works Advisory Board 2026
City of Morro Bay
Personal Info
Phone number
)
Email
Address
--
Social Media
--Websites
--
Source
Applied through your website's jobs page
Responsibility
Recruiter
Skyler Onaga
Coordinator
--
Michael Lucas
Candidate Application
Job Post Questions
I would like to be considered for appointment to the following Commission/Advisory Body:

Public Works Advisory Board
Please provide your residential address.

Are you registered to vote in the City of Morro Bay?
Yes
What's your highest level of education, institution name, and field of study? Master of Architecture, Morgan State University
1 Powered by Greenhouse

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Are you currently or have you previously served on a board, commission, committee, or other public body? If yes, which one and when? What do you feel were the advisory body’s major accomplishment(s) during your tenure? I served several terms on the Morro Bay Planning Commission 2013-2021 and 2005-2011. We primarily were involved in the new General Plan, re-use issues around the Power Plant and Embarcadero planning, moving of the sewage treatment plant and water recycling, and methods of project evaluation. Diablo Canyon Decommissioning Panel 2022-2025. Preparing the plant for decommissioning... then recommissioning requested by the Governor. Cal Poly San Luis Obispo 1997- 2017 . I retired from full-time employment as Associate Dean for Academic Affairs.

I was responsible for chairing the College of Architecture and Environmental Design Master Plan, contributions to the University Master Plan, and primarily representing the college on committees concerning university advising, multi-cultural issues, and academic procedures. What experience, technical training and skills qualify you for an appointment, considering your experience and activities in business, labor, professional, social, or other organizations?
As an architect, I was responsible for design and management of a wide variety of educational facilities, and earlier in my career smaller commercial and residential projects in historic urban settings. As an educator I was involved in creating general education courses to introduce issues of environmental ethics and impact, infrastructure, and local and regional planning to students across the university. Why are you interested in serving on this advisory board, commission, or committee? As retired but part-time continuing architectural faculty member, I have the time to contribute my experience and expertise to the board. I am interested in all the scales of work done in planning and public works from policy to details. I am particularly interested in the future of Morro Bay and providing adequate services and infrastructure for residents, businesses and visitors while properly respecting the historic and environmental conditions that make it such a sought after community to live.

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Michael Austin Lucas
, Morro Bay, California, USA 93442

Education Master of Architecture
Morgan State University, Baltimore, Maryland, 1995 [4.0/4.0 gpa] Master's Thesis: "Four Settings for the Anchor School: Urban Alternatives for Holistic Child Growth" Baltimore American Institute of Architecture Jury Award for Outstanding Thesis- Advanced Studio Bachelor of Architecture [Cum Laude]
University of Cincinnati, Cincinnati, Ohio, 1979 [Six-Year Cooperative Education Program] Undergraduate Thesis: "Holy Cross Monastery: The Changing Morphology of an Urban Landmark" Registration Licensed Architect: Maryland [1982-2022]; Pennsylvania [1996-97] Academic California Polytechnic State University, San Luis Obispo, California Experience College of Architecture and Environmental Design [CAED] Professor Emeritus, 2017; Professor, 2008-17; Associate Professor [with Tenure], 2003-08; Assistant Professor, 1997-2003 Architecture Department 1997-2026
Beginning Design [architecture and architectural engineering freshmen; years 1 and 2 of 5-year professional program] First Year Design. Second Year Design 2021-26
Upper Division Design
Fifth Year Thesis Seminar and Design Lab 1998–2010 [coordinator 2005-2010] History/Theory
Principles of Environmental Design [EDES 123; course originator]; General Education/Human Development; 2016-22 Native American Architecture and Place 2017-22; 2003-14 Upper Division Campus-Wide Writing Intensive, General Education/Humanities Cross-listed in Ethnic Studies; Ethnic Studies Minor, Sustainable Environments Minor London: Architecture and Place [ARCH 420 variant] Summer 2009, for Cal Poly London Studies Program Upper Division Campus-Wide Writing Intensive, General Education Humanities Course Option Associate Dean of Academic Affairs [Dean’s recommendation; Provost three-year appointment] 2014-2017 Duties: Supervise Graduate and Undergraduate Curriculum and Catalogue; Student Advising, Progress, Retention, and Academic Discipline; International Education; Faculty Professional Development; Assist in Annual Faculty Review Cycle; Supervision of CAED Advising Center and Staff, Supervision of Neel Resource Center and Staff. Primary author/editor, CAED Master Plan 2014-30; Lead Writer, CAED Strategic Plan 2017-22.

Associate Department Head [Department Head appointment with faculty consultation, 2013-14; 2004-2006] Student Affairs Duties: Curriculum, Catalogue, Articulation with Community Colleges, Transfer Student Admission, Student Progress, Change-of-Majors, Student Advising, Special Counseling Issues, Cooperative Education, Visitor Liaison.

Academic Fulbright Teaching/Research Award, Slovak Republic, Fall 2021 Awards Faculty of Fine Arts, Institute of Aesthetics and Arts Culture, University of Prešov in Prešov Course: Survey of American Aesthetics: Embodiment, Art, Architecture and Place Topical survey of evolving American aesthetics via an architectural, art, and spatial history, from indigenous America through colonization, urbanization, and globalization.

Course: Topics in Embodied Aesthetics, Phenomenology, Eco-Phenomenology, Architecture, and Environmental Design Aimed primarily at students studying Aesthetics. Phenomenology, architecture, and art via philosophic roots in Edmund Husserl, Martin Heidegger, Maurice Merleau-Ponty, Luce Irigaray, philosopher/theologian Jean-Luc Marion, speculative realist Graham Harman, as well placed-based thinking of Edward Casey.

Research: Dych Života: Breathing Life into the Slovak Wooden Churches of the Carpathian Mountains:

Embodied Aesthetics, Phenomenology, Architecture, and Environment Lived and phenomenal experience across settings and structures of wooden churches of the region, dating from the 16th century. Despite modest village settings these structures meticulously cared for, rebuilt, and maintained across Hungarian, Nazi, and Soviet control, and now stand in a larger manner as a national symbol of the resilience of the Slovak people. 2017 ‘Admired Educator’, Design Intelligence Magazine [one of twenty-five named across design education nationally] 2010 Architecture Department Faculty Merit Award
Highest Departmental Award; Peer nominated, Tenured Peer review and award. 2008 Cal Poly Distinguished Teacher Award
Highest University Award; first CAED recipient in twenty years. Student nominated, Peer review, Presidential award.

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Michael Austin Lucas
Publication and Design Village: An Embodied Beginning for Architects [draft in review] Presentation Invited chapter in Making Things: An Embodied Approach to Learning Architectural Design, ed. Stephen Temple, Routledge, [in final editorial review; est. publication late 2026] Documenting pedagogy and outcomes of fifteen years of first year student full scale temporary dwelling design-build works.

Resilience, Resistance, and Atmosphere: Bounding the Wooden Churches of the Carpathians Conservation of Architectural Heritage 7th Edition, Tarek Teba and Antonio Di Raimo [eds.], Springer, Fall, 2025 Between Transcendental and National: Wooden Churches of Slovakia What is Shared? Architectural Heritage in Conflict, Special Issue of Fabrications, Vol.34, No.2, Savia Paalate and Panayiota Pyla, [eds.], online version September 2024
A Knife, a Stone, a Clock: Public Space in and of Time
Proceedings of Coordinates of Aesthetics, Art, and Culture 7: Public Space in the Contexts of Aesthetics, Art Theory and Art Practice, Eva Kušnírová and Lenka Bandurová [eds]; University of Prešov, Prešov, Slovak Republic. [eBook] 2022.

Considering how the qualities of urban space and their uses as contributing to a sense of ‘thick time’.

Tripling in Architectural Design
Invited chapter in Horizons of Difference: Rethinking Space, Place and Identity with Irigaray, Ruthann Kim, Yvette Russell, and Barbara Sharpe [eds.] SUNY Press, 2022.

Application of Luce Irigaray’s metaphor of multiple realities/tripling in Beginning Design studio pedagogy.

Community St. Benedict Episcopal Church, Los Osos, California Service People’s Warden, 2024-27; Parish Council/Vestry 2024-27; 2019-2022; Lay Minister [license], Lay Preacher [license] Responsible for planning and maintenance on 1940 era relocated Army Chapel rebuilt in 2000 on four-acre site.

Buildings and Grounds Committee [Chair] 2024-27, Personnel Committee 2024-27, Priest Search Committee 2024.

Designer and project management for solar power array [2022-25], large tree reforestation and landscape plan [2022], heat pump conversion [2022], fire sprinkler system, and pump [2017-22], completion of classrooms, meeting space and chapel within 1940 era shell [2014-16], Priest’s study [design-build, 2014] Diablo Canyon Decommissioning Engagement Panel
Community Member 2022-2025 [Panel peer review and invitation] Non-regulatory twelve-member body created to foster and encourage open communication, public involvement and education on decommissioning plans and activities for the Diablo Canyon nuclear plant, the last nuclear facility in the state of California.

Planning Commission, City of Morro Bay, California
Planning Commissioner, 2013-2021 and 2005-11 [appointment by City Council] General Plan, Specific Plans, Zoning, and CEQA environmental impact/project review for coastal California town of 10,000. [bi-monthly meetings; approximately 20 hours/month] Major Projects and Initiatives: Wastewater Reclamation Plant; General Plan Update, Downtown Master Plan Upgrade, Embarcadero Waterfront Promenade, Housing Element Update.

Professional Murphy and Dittenhafer, Inc.; Baltimore, MD. and York, PA Experience: 1995 - 1997
Associate [1995]. Studio Leader [one of five internal studios], Project Manager/Architect Thirty-person firm with regional institutional and non-profit clientele. Project Scope: $50,000-$27,000,000 [historic value] Whitaker Center for Sciences and Arts, Harrisburg, PA [with Hardy, Holzman, Pfeiffer] 2000 AIA Pennsylvania Merit Award
Administrative Support/Classroom Building, Community College of Baltimore County 2000 AIA Central Pennsylvania Design Award
Brick Street Café, Towson University, Towson, MD
1999 AIA Central Pennsylvania Design Award
York Jewish Community Center Master Plan, York, PA
2000 AIA Central Pennsylvania Design Award
St. Vincent de Paul Society Outreach Center, Fell’s Point Historic District, Baltimore, MD 1998 Baltimore AIA Design Award
St. Joseph Catholic Church Parish Hall, Hagerstown, MD
Probst-Mason Inc.; Baltimore, MD
1992 - 94; Senior Associate [1993] Project Manager/Architect Twenty-person firm with regional educational/institutional and residential clientele. Project Scope $750,000 -$9,000,000 Solley Elementary School, Anne Arundel County, MD
Meade Heights Elementary School. Anne Arundel County, MD Carole Highlands Elementary School, Takoma Park, MD
Aberdeen Senior Center, Aberdeen, MD
Graham’s Alley Master Plan, Easton, MD

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Application Review, Jun 9, 2026
Public Works Advisory Board 2026
City of Morro Bay
Personal Info
Phone number
)
Email
Address
--
Social Media
--Websites
--
Source
Applied through your website's jobs page
Responsibility
Recruiter
Skyler Onaga
Coordinator
--
Wendelyn Wickham
Candidate Application
Job Post Questions
I would like to be considered for appointment to the following Commission/Advisory Body:

Public Works Advisory Board
Please provide your residential address.

Are you registered to vote in the City of Morro Bay?
Yes
What's your highest level of education, institution name, and field of study? MS Civil Engineering Cal Poly
Are you currently or have you previously served on a board, commission, committee, or other public body? If yes, which one and when? What do you feel were the advisory body’s major accomplishment(s) during your tenure? No.
1 Powered by Greenhouse

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What experience, technical training and skills qualify you for an appointment, considering your experience and activities in business, labor, professional, social, or other organizations?
Licensed civil engineer with 35 years experience. I specialized in in hydraulics, including hydrology, culvert design, creek bank protection design, flood plain studies, fish passage studies, and highway drainage. I also have some experience in roadway design. I collaborated with multi-discipline project teams and am familiar with project processes. I performed my own studies and also oversaw permit and consultant work. I worked directly with several local and resource agencies and FEMA in the course of obtaining permits and approvals for projects.

Why are you interested in serving on this advisory board, commission, or committee? I'm interested in public works projects and am looking for a way to help out in my community.

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Morro Bay City CouncilJuly 28, 2026

Morro Bay City Council
July 28, 2026