City Council Regular Meeting - August 25, 2026
1. ESTABLISH QUORUM AND CALL TO ORDER
Public Comments:
Mayor Wixom called the meeting to order at 5:40 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 that prevents her from participating in person.
2. PLEDGE OF ALLEGIANCE
Public Comments:
3. REPORTS
Public Comments:
3.a
Closed Session Report
Public Comments:
City Attorney Stack announced the Council met in closed session to discuss three items: (1) real property negotiations matter regarding Morro Dunes RV Park located at 1700 Embarcadero, (1) potential litigation matter, and (1) Public Employee Performance Evaluation regarding the City Manager. No reportable action was taken under the Brown Act on any item.
3.b
Mayor and Councilmembers' Reports, Announcements and Presentations Public Comments:
3.c
City Manager Reports, Announcements and Presentations
Public Comments:
3.d
Subcommittee Reports - Verbal Update of Current Subcommittee Activities Public Comments:
None
1. Water Reclamation Facility & Morro Bay / Cayucos Sanitary District JPA Public Comments:
2. Morro Bay Power Plant (Vistra)
Public Comments:
3. Morro Elementary School
Public Comments:
4. RECOGNITION AND PRESENTATIONS
Public Comments:
4.a
Hunger Action Month Proclamation
Public Comments:
Presented to Savannah Colevans, SLO Food Bank Director of Community Engagement.
5. PUBLIC COMMENT
Public Comments:
Sugar Cliff, Grandma's Mercantile on Main, spoke favorably about the Saturday Downtown Farmers' Market and hoped no changes would be considered.
Linda Winters, Morro Bay, commented on Monday Night Dinners and recently attended meetings and events.
Lynda Merrill, Morro Bay, spoke in support of purchasing Morro Elementary School and advocated for the continued free use of the Community Center Studio by the Friday Life Drawing group.
Camille Watkin, Morro Bay, asked if the City would consider lowering the flag in honor of Dolly Parton.
Sydney Ramos, Morro Bay, urged the City to agendize discussion and take a stand against a nationwide video surveillance system.
Linda Donnelly, Morro Bay, shared her recent experience at the Rock and Coleman Park bathrooms and thanked the Maintenance worker who attended to restroom supply needs on a Sunday evening.
Betty Winholtz, Recreation & Parks Commission Chair, shared a portion of an email from a Cambria representative congratulating the Recreation Division on a successful flag football season and championship weekend.
Marlene Owens, Morro Bay, encouraged the City to move forward with the purchase of Morro Elementary in honor of Lila Keiser and her dedication to providing safe playgrounds and ball fields.
Margaret Carman, Morro Bay, advocated for a full-time children's librarian and restored library operating hours.
Layla Fabans commented in support of the City's purchase of Morro Elementary.
End of public comment.
6. CONSENT AGENDA
Public Comments:
Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. The public will also be provided an opportunity to comment on consent agenda items.
Betty Winholtz, Morro Bay, commented on Item 6.e, seeking clarification regarding hydrogeological investigations. Regarding Items 6.b and 6.f, she asked when to expect clarification regarding board communications to the Council. Regarding Item 6.d, she asked that the reserve policy discussion be part of the conversation regarding the purchase of Morro Elementary.
End of public comment.
Council Member Landrum pulled Items 6.b, 6.c and 6.f.
Motion by
Council Member Eckles
Seconded by
Council Member Luffee
Approve Consent Agenda Items except 6.b, 6.c and 6.f 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 Proclamations
Public Comments:
Approve as submitted.
1. Proclamation declaring September 2026 to be "Hunger Action Month" Attachments
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Public Comments
1. 6a September Hunger Action Month Proclamation - Morro Bay.pdf
6.b
Water Reclamation Facility Project WRF Quarterly Report Attachments
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Public Comments
1. 6b SR WRF Quarterly Report Q4 FY25-26.pdf
2. 6b WRF Q4 Report FY25-26 April-June.pdf
Public Works staff responded to Council questions.
Motion by
Council Member Landrum
Seconded by
Council Member Luffee
Receive and file the Fiscal Year (FY) 2026 Quarterly Report for April – June 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)
6.c
Designation of Voting Delegate and Alternate at League of California Cities 2026 Annual Conference Business Meeting and provide direction as necessary Attachments
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Public Comments
1. 6c SR LOCC Voting Delegate 2026.pdf
2. 6c1 2026-Cal-Cities-Resolution-Packet.pdf
Motion by
Council Member Luffee
Seconded by
Council Member Landrum
Appoint Mayor Wixom as the City's voting delegate at the League of California Cities Annual Conference with Council Member Landrum and City Manager Craig as alternates.
Ayes (5)
Mayor Wixom, Council Member Eckles, Council Member Edwards, Council Member Landrum, and Council Member Luffee CARRIED (5 to 0)
6.d
Quarterly Update on the Status on City Council 2025-2027 Goals Attachments
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Public Comments
1. 6d SR City Goals Update.pdf
2. 6d1 Goal Status Worksheet 8-25-26.pdf
Receive an update from staff on the City’s progress on City goals established in March 2025.
6.e
Easement Agreement and Deed Between Morro Bay Power Company LLC and the City of Morro Bay for the Recycled Water Facilities Infrastructure Attachments
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Public Comments
1. 6e SR RWF Easement Swap.pdf
2. 6e1 Agreement - Vistra Dynegy Morro Bay_ 2026-08-18 No.2 w-Deed.pdf
3. 6e2 Deed Easement - 2026-08-03 Vistra (w Exhibits).pdf Approve the easement agreement and deed (Agreement) between Morro Bay Power Company LLC and the City of Morro Bay necessary for the implementation of the Recycled Water Project, in substantially the form attached, subject to review and approval by the City Attorney as to form and legal effect.
Authorize the City Manager to execute the Agreement and related documents and make any non-substantive amendments consistent with the terms approved by Council, subject to review and approval by the City Attorney as to form and legal effect.
6.f
GSI Extraction Well Project Agreement Amendment No. 1
Attachments
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Public Comments
1. 6f SR GSI Ex Well Amend 1.pdf
2. 6f1 GSI Amendment No. 1 - Extraction Well.pdf
3. 6f2 GSI Extraction Well Amended Scope of Work.pdf
Public Works staff responded to Council inquiries.
Motion by
Council Member Landrum
Seconded by
Council Member Luffee
Authorize the City Manager to execute Amendment No. 1 with GSI Water Solutions (GSI) to extend the term of the agreement and increase contract budget in the amount of $53,188.00 for additional hydrogeologic support services on the Morro Basin Wellfield Rehabilitation Project.
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
Public Comments:
None.
8. BUSINESS ITEMS
Public Comments:
8.a
Acceptance of the Morro Elementary School Site Due Diligence Report; Determination Regarding the City's Intent to Purchase the Property; and Direction to Staff Regarding Close of Escrow Attachments
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Public Comments
1. 8a SR Morro Elementary Due Diligence Report.pdf
City Manager Craig and Due Diligence Manager Michael Codron, EMBC Planning Strategies, presented the report.
The Council took a brief recess at 6:58 p.m. and reconvened at 7:09 p.m. with all members present.
City Manager Craig relayed his communications with the San Luis Coastal Unified School District regarding deal points for short-term financing of the property purchase.
Mayor Wixom opened public comment for Item 8.a.
Tina Wener, Morro Bay, looked forward to more details about financing and development options.
Barry Branin, Morro Bay, spoke in support of the purchase noting it could be paid for with proceeds from the sale of other city-owned properties.
Pat Mangione, Morro Bay, commented on need to fund street repair and other projects, opposed moving the library, supported the preservation of historic buildings and hoped plans would include revenue generating ideas.
Tim Crowley, Morro Bay, had fond memories of Morro Elementary but was concerned about funding for the purchase and ongoing maintenance needs.
Courtney Shepler, Morro Bay, appreciated staff work on short-term financing and suggested it would help to have clarity on both the current commitment and future plans.
Janice Peters, Morro Bay, was impressed with the condition of the property and was confident various rental income could cover costs and provide the city with a beautiful civic center.
Glenn Silloway, President of the Morro Bay Historical Society, shared they prepared a draft historic preservation ordinance for the City, in part, to preserve these buildings. He wished to see a document listing all capital expenditures, this project being part of many, invite public participation to evaluate development alternatives then, once a final plan can be priced, put it to a vote of the people.
Marlys McPherson, Morro Bay, questioned how the purchase fits into our current budget and future forecast, did not believe the City has to own the property to control future development through zoning and entitlements, and preferred the school district keep the property and run the risk of finding a developer.
Shirley Fraser, Morro Bay, supported moving forward under these favorable financial terms, noting ultimate control of the property lies with the city if we purchase it. She believed there may be room for compromise on renovation costs.
Mike Gerson, Morro Bay, envisioned a path forward with minimal impact to the City's financial reserves, looked forward to special meetings to hear what the community wants to see, personally leaned toward preserving the fields and open space and making it a public park and civic plaza, with workforce housing on the north end of the parcel and senior housing at the current city hall site.
D'Arcy Castro, Friends of Morro Elementary, encouraged the City to proceed in escrow, stating it was in the best interest to retain control of such an important piece of land. She appreciated the due diligence reports and believed retrofitting Morro Elementary versus new construction would save money.
Semu Torres thanked those who have worked on this project and supported moving forward with the purchase.
Judy Setting, Morro Bay, appreciated the school district's offer to finance the purchase but preferred the City remain debt-free. She wished to keep the library and mural intact and that new housing development be located on other city-owned properties.
Debbie Highfill, Morro Bay, was supportive of the purchase and hoped the sports fields and programs presently on site would remain.
Linda Donnelly, Morro Bay, commented on potential consequences of not buying the property and urged the City to move forward with the purchase.
Nicholas Cueva and Jamiee Motley spoke in support of the City purchasing this important historical site.
Tunde Banffy-Stapleton, offered strong support for acquiring the property and hoped the Montessori school would remain.
End of public comment.
Staff responded to Council inquiries.
Motion by
Council Member Landrum
Seconded by
Council Member Luffee
Receive and accept the Morro Elementary School Site Due Diligence Report; and Make a determination, pursuant to Section 1.5 of the Purchase and Sale Agreement, to find the Property suitable for City purposes and confirm the City’s intent to purchase the Property and proceed through the due diligence period; and Based on the determination, direct staff to proceed to close of escrow and return to the City Council in October with the final terms of the purchase, including the potential for seller financing.
Ayes (4)
Mayor Wixom, Council Member Eckles, Council Member Landrum, and Council Member Luffee Noes (1)
Council Member Edwards
CARRIED (4 to 1)
9. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS
Public Comments:
None.
10. ADJOURNMENT
Public Comments:
The meeting adjourned at 8:14 p.m.
Respectfully submitted,
/s/ Dana Swanson, City Clerk