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HomeMy WebLinkAboutCC_2025-06-24 Regular Meeting Minutes 1 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING June 24, 2025, 5:30 p.m. Veterans Memorial Hall 209 Surf St., Morro Bay, CA Members Present: Mayor Carla Wixom Council Member Cyndee Edwards Council Member Jeff Eckles Council Member Zara Landrum Council Member Bill Luffee Staff Present: Interim City Attorney Robert Schultz City Clerk Dana Swanson Finance Director Emily Conrad Public Works Director Greg Kwolek Community Development Director Airlin Singewald Police Chief Amy Watkins Fire Chief Dan McCrain Harbor Vitality Director Chris Munson _____________________________________________________________________ 1. ESTABLISH QUORUM AND CALL TO ORDER Mayor Wixom called the meeting to order at 5:30 p.m. with all members present. 2. MOMENT OF SILENCE In remembrance of Linna Thomas. 3. PLEDGE OF ALLEGIANCE 4. REPORTS 4.a Closed Session Report https://youtu.be/CVr3jSoXeKA?si=veJIWnEbrhDQs1VK&t=82 Interim City Attorney Schultz announced that with regard to the first two Property Negotiations items, no action was taken that required reporting under the Brown Act. Regarding the City Manager Performance Evaluation, action was taken that required reporting. The Council voted 3- 2, with Mayor Wixom and Council Member Eckles opposed, to dismiss/release the City Manager from employment with the City. 2 4.b Mayor and Councilmembers' Reports, Announcements and Presentations https://youtu.be/CVr3jSoXeKA?si=2hxyTPomLH52sBLU&t=136 4.c City Manager Reports, Announcements and Presentations None 4.d Subcommittee Reports - Verbal Update of Current Subcommittee Activities https://youtu.be/CVr3jSoXeKA?si=8hjocZhO75TkJM8G&t=1045 a. Water Reclamation Facility & Morro Bay / Cayucos Sanitary District JPA b. Morro Bay Power Plant (Vistra) c. Offshore Wind Energy d. Morro Elementary School 5. RECOGNITION AND PRESENTATIONS https://youtu.be/CVr3jSoXeKA?si=9_cls3jlNzgeU7Jh&t=1122 5.a Proclamation declaring July 2025 as "Parks Make Life Better Month" Presented to Recreation Services Supervisor Angelica Jepsen. 5.b Proclamation recognizing the 30th Anniversary of the Morro Bay National Estuary Program Presented to Morro Bay National Estuary Program Executive Director, Melodie Grubbs. 6. PUBLIC COMMENT https://youtu.be/CVr3jSoXeKA?si=vavnns8VBmjEdcr7&t=1523  Linda Winters, Morro Bay, provided a Monday Night dinner update.  Kiernan Cottle, Morro Bay, offered comments.  Margaret Carman, Morro Bay, shared her appreciation for the National Estuary Program and invited them to attend REACT Alliance events. End of public commenbt. 7. CONSENT AGENDA https://youtu.be/CVr3jSoXeKA?si=yOeM2pojgATNNpca&t=1920 3 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. Regarding Item 7.f., Mayor Wixom announced the resolution would be amended to transfer the entire $488,000 to the Pavement Management Program.  Betty Winholtz, Morro Bay, appreciated the full amount would be transferred to the Pavement Management Program and restated writte n comments submitted for Item 7.h, asking that Council not approve the Final EIR, as new areas had been added that were not examined in the original EIR. End of public comment. Council Member Landrum pulled Items 7.h. and 7.i. Motion by Council Member Eckles Seconded by Council Member Landrum Approve Consent Agenda items 7.a through 7.g as submitted. Ayes (5): Mayor Wixom, Council Member Edwards, Council Member Eckles, Council Member Landrum, and Council Member Luffee CARRIED (5 to 0) 7.a Approval of Minutes Approve as submitted. a. May 27 ,2025 - Regular Council Meeting b. June 10, 2025 - Special Closed Session Meeting 7.b Proclamations Approve as submitted. a. Proclamation declaring July 2025 as "Parks Make Life Better Month" b. Proclamation recognizing the 30th Anniversary of the Morro Bay National Estuary Program 7.c Approval of SB-1 Funding Project List for FY 25/26 Pavement Management Plan Project Adopt Resolution No. 33-25 approving the Fiscal Year 2025/26 project list for use of Senate Bill 1 (Road Repair and Accountability Act of 2017) Road Maintenance and Rehabilitation Account (RMRA) funds. 4 7.d Approve Professional Services Agreement for RRM Design Group for Design Services for Multimodal Safety and Accessibility Intersection Improvements at Main Street and Quintana Road Approve and authorize the City Manager to execute a professional services agreement with RRM Design Group to provide design Services for Multimodal Safety and Accessibility Intersection Improvements at Main Street and Quintana Road in an amount not to exceed $213,172, which includes a 5% contingency. 7.e Authorization to Enter into a FY 2025-26 Oil Spill Response Equipment Staging Grant Funding Agreement with the Department of Fish and Wildlife (CDWF) in the Amount of $5,000.00 Adopt Resolution No. 34-25 authorizing the Harbor Director to enter into a FY 2025/2026 Oil Spill Response Equipment Staging Grant Funding Agreement with the CDFW in the Amount Of $5,000.00. 7.f Adoption of Resolution No. 35-25 Authorizing a FY 24/25 Budget Adjustment Transferring Monies from the Transit Operating Fund to the Pavement Management Program Mayor Wixom announced the resolution would be amended to transfer the full $488,000 to the Pavement Management Program. Adopt Resolution No. 35-25 authorizing a FY24/25 budget adjustment as a transfer of $488,000 from the Transit Operating Fund to the General Capital Improvement Fund for the purposes of contributing to the Pavement Management Program. 7.g Monetary donation from the Friends of the Morro Bay Fire Department Authorize the City Manager to execute an agreement, accepting the financial donation from the Friends of the Morro Bay Fire Department in the sum of $15,414. to be used for the purpose of completing design and construction documents for the Bonita Street Fire Station #2 Project. 7.h WRF Quarterly Report, Recycled Water Conceptual Design Report, WRF EIR Addendum #2, Recycled Water Implementation Strategy, and Contract Amendments https://youtu.be/CVr3jSoXeKA?si=OQpAoVtwdWZBF8P0&t=2169 Staff responded to questions raised during public comment and Council inquiries. Motion by Council Member Edwards Seconded by Council Member Luffee Staff recommends the City Council: 5 1. Receive and file the Fiscal Year 2025 Quarter 3 WRF Quarterly Report (Jan 1 – Mar 31); 2. Receive and file the Conceptual Design Report (CDR) for the Recycled Water Project; 3. Approve the Final Environmental Impact Report (EIR) Addendum #2 for the Water Reclamation Facility (WRF) Program; 4. Approve the Updated Recycled Water Implementation Strategy Recommendations; and 5. Approve and authorize the City Manager to execute: 1. An amendment to a professional services agreement with Confluence Engineering Solutions (ConfluenceES) to provide recycled water program management support services for Fiscal Year (FY) 2025/26 for the WRF Program in the amount of $356,772 for a not-to-exceed agreement amount of $1,324,304, and to extend the agreement term to June 30, 2026; 2. An amendment to a professional services agreement with GSI Water Solutions, Inc. (GSI) to provide hydrogeological support services in the amount of $397,100 for a not-to-exceed agreement amount of $1,737,463, and to extend the agreement term to December 31, 2026; and 3. An amendment to a professional services agreement with Far Western Anthropological Research Group, Inc. to provide services for archaeological investigations for the Recycled Water Project and Wastewater Treatment Plant (WWTP) Decommissioning and Demolition in the amount of $129,817 for a not-to-exceed agreement amount of $1,174,550.01, and to extend the agreement term to December 31, 2026. Ayes (4): Mayor Wixom, Council Member Edwards, Council Member Eckles, and Council Member Luffee Noes (1): Council Member Landrum CARRIED (4 to 1) 7.i Approval of Professional Services Agreement with Anchor QEA for the Wastewater Treatment Plant Decommissioning and Demolition Engineering Design https://youtu.be/CVr3jSoXeKA?si=ZPNsIHN8e2Sc9tzo&t=2508 Staff responded to Council inquiries. 6 Motion by Council Member Landrum Seconded by Council Member Edwards 1. Approve and authorize the City Manager to execute a professional services agreement in the amount of $901,000. with Anchor QEA (A-QEA) for the design services for the Wastewater Treatment Plant (WWTP) Demolition and Decommissioning project; and 2. Authorize the City Manager to approve contract amendments, if needed, up to a 5% contingency ($45,050), for a total not -to- exceed amount of $946,050. Ayes (5): Mayor Wixom, Council Member Edwards, Council Member Eckles, Council Member Landrum, and Council Member Luffee CARRIED (5 to 0) 8. PUBLIC HEARING ITEMS 8.a Adoption of Resolution No. 36-25 Directing the Levy of the Annual Assessment for the Cloisters Landscaping and Lighting Maintenance Assessment District https://youtu.be/CVr3jSoXeKA?si=BBLcivRmeM_XTGZE&t=3183 Public Works Director Kwolek presented a brief report. Mayor Wixom opened the public hearing and public comment for Item 8.a. https://youtu.be/CVr3jSoXeKA?si=r_ZFt3NhuRx5Nl0d&t=3290  Dawn Beattie, Morro Bay, stated for the record her belief there's no annual increase because the assessment was intended to be transferred to another entity.  Betty Winholtz, Morro Bay, suggested the City put forward a Prop 218 vote implementing annual increases to see if the Cloisters homeowners would turn it down. End of public comment. Motion by Mayor Wixom Seconded by Council Member Luffee Conduct the public hearing and approve the levy of the annual assessment for the Cloisters Landscaping and Lighting Maintenance Assessment District (LLMAD) by adopting Resolution No. 36-25. Ayes (5): Mayor Wixom, Council Member Edwards, Council Member Eckles, Council Member Landrum, and Council Member Luffee 7 CARRIED (5 to 0) 8.b Adoption of Resolution No. 37-25 Directing the Levy of the Annual Assessment for the North Point Natural Area Landscaping and Lighting Maintenance Assessment District https://youtu.be/CVr3jSoXeKA?si=z8A6HWMMofhIJzkb&t=3731 Public Works Director Kwolek presented a brief report. Mayor Wixom opened the public hearing and public comment for Item 8.b. https://youtu.be/CVr3jSoXeKA?si=nFVQ5lmufJqbpuGz&t=3798  Betty Winholtz, Morro Bay, did not favor putting forward a Prop 218 vote for the North Point assessment district at this time and commented on the proper maintenance of this natural area. End of public comment. Staff responded to questions raised during public comment. Motion by Mayor Wixom Seconded by Council Member Landrum 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. 37-25. Ayes (5): Mayor Wixom, Council Member Edwards, Council Member Eckles, Council Member Landrum, and Council Member Luffee CARRIED (5 to 0) 9. BUSINESS ITEMS The Council took a brief recess at 6:36 p.m. and reconvened at 6:45 p.m. with all members present. 9.a Resolutions Approving Fiscal Year (FY) 25-26 operating and Capital Budgets; FY 24-25, FY 25-26 and FY 26-27 Salary Schedules; New Job Classifications; Investment Policy; and FY 25-26 GANN Appropriations Limit https://youtu.be/CVr3jSoXeKA?si=q_eEUXHO4MKH83wV&t=4037 Finance Director Conrad presented the report and responded to Council inquiries. Mayor Wixom opened public comment for Item 9.a. https://youtu.be/CVr3jSoXeKA?si=69nUMyqIrzvmljLu&t=4990 8  Jane Heath, Morro Bay resident and business owner, urged the Council to approve the budget as presented including the police communications upgrade.  Walter Heath, Morro Bay, commented in favor of the police communications upgrade project.  Michelle Leicester-Cadaret, Morro Bay, questioned the need for the communications update, suggesting there were alternative ways to secure confidential information.  Margaret Carman, Morro Bay, was not in favor of the police communications project update and was opposed to adding more 5G towers.  Betty Winholtz, Morro Bay, opposed the addition of a Utilities Project Manager, replacement of the radio system, and new water meters, and suggested the Council pull those three items back for consideration at a future meeting. She also suggested lowering the reserve levels, and examining staffing needs.  Dina Lundquist, Morro Bay Chamber of Commerce CEO, offered comments in response to the CFAC's revenue generation recommendations.  Morro Bay Police Sgt. Grant Hasselback spoke on behalf of the Peace Officers' Association ("POA") regarding the importance of an improved communications system.  Nic De Angelis, Morro Bay, urged Council to review a list of capital projects, approve the police communications upgrade, and work to improve the top line.  Morro Bay Police Sgt. and POA President Stephanie Storm commented on the need for an improved communications system to ensure officer safety.  Courtney Shepler, Morro Bay, suggested the long-range forecast projects a need for staffing cuts unless something is done to increase revenues, and asked the Council to be thoughtful and proactive about solving the revenue problems. Due to technical difficulties, a brief recess was taken at 7:30 pm. The meeting reconvened at 7:46 p.m. with all members present.  Courtney Shepler wrapped up her comments.  Judy Setting, Morro Bay, commented in support of updating the police communications system but hoped a less expensive option was available that meets mandate requirements. She opposed adding a Utilities Project Manager position and suggested the City 9 consider staffing reductions in order to meet long-term essential expenditures. End of public comment. Staff responded to questions raised during public comment and further Council inquiries. Motion by Mayor Wixom Seconded by Council Member Luffee Staff recommends the City Council: 1. Adopt Resolution No. 38-25 adopting the (FY) 2025-26 Operating and Capital Budgets; and 2. Adopt Resolution No. 39-25 approving Utilities Project Manager, Collections and Pretreatment Operator, and Water Resources Compliance Specialist Classifications and Job Descriptions; and 3. Adopt Resolution No. 40-25 approving the FY 2024-25, FY 2025- 26, and FY 2026-27 Salary Schedules; and 4. Adopt Resolution No. 41-25 approving the Compensation and Benefits for the Unrepresented Management Designated Employees for 2024-25 through 2026-27; and 5. Adopt Resolution No. 42-25 readopting the City’s Investment Policy; and 6. Adopt Resolution No. 43-25 setting the FY 2025-26 GANN Appropriations Limit at $37,744,894. Ayes (5): Mayor Wixom, Council Member Edwards, Council Member Eckles, Council Member Landrum, and Council Member Luffee CARRIED (5 to 0) 9.b Short-term Rental Ordinance Implementation - Quarterly Update https://youtu.be/CVr3jSoXeKA?si=BR-x9zR0j-hrqIB6&t=9370 Community Development Director Singewald presented the report and responded to Council inquiries. Mayor Wixom opened public comment for Item 9.b. https://youtu.be/CVr3jSoXeKA?si=87LkX0DIrBTnetNQ&t=11615  Helene Finger, Morro Bay, commented in support of policy change Option 2, prioritizing issuing permits to those on the wait list. She suggested the City revise the ordinance to require STR owners to 10 submit a page from their tax return proving they have an active rental.  Walter Heath, Morro Bay, suggested folding the cost of the business license into the cost of the STR permit to eliminate that bottleneck.  An unnamed person offered comments in support of permitting new STRs in commercial spaces, adding he would have no issue submitting Schedule E from his tax return as evidence of an active rental.  Barry Branin, Morro Bay, supported limiting the number of STRs in residential zones to 137. He was supportive of STRs in commercial zones.  Michelle Leicester-Cadaret, Morro Bay, concurred with Mr. Branin's comments.  Mitchell Bush, STR manager, shared his policy is to make sure the neighbors have his contact information so that operational violations or other problems can be quickly resolved.  Jim Curnutt, Morro Bay, suggested the City have code enforcement officers available on the weekends.  Courtney Shepler, Morro Bay, complimented staff for the work and suggested the City consider an STR license limited to use 30 days per year but otherwise complies with all the same rules. End of public comment. Receive and file a quarterly update on the Community Development Department’s progress in implementing the City’s Short-term Rental Ordinance through permit annual renewal process, and resume issuance of commercially zoned STR permits, and provide staff direction as necessary. 10. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS https://youtu.be/CVr3jSoXeKA?si=6E0yDcD7s7ptwAF -&t=13191 None. 11. ADJOURNMENT The meeting adjourned at 9:32 p.m. Respectfully submitted, /s/ Dana Swanson, City Clerk 11 /s/ Dana Swanson, City Clerk