CITY OF MORRO BAY City Council Regular Meeting AgendaWednesday, November 12, 2025 at 5:30 P.m. - 6:30 P.m.Veterans Memorial Hall 209 Surf St., Morro Bay, CAPublic 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. NEW!! 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. 1.ESTABLISH QUORUM AND CALL TO ORDER Public Comments: 2.PLEDGE OF ALLEGIANCE Public Comments: 3.REPORTS Public Comments: 3.aClosed Session Report Public Comments: 3.bMayor and Councilmembers' Reports, Announcements and Presentations Public Comments: 3.cCity Manager Reports, Announcements and Presentations Public Comments: 3.dSubcommittee Reports - Verbal Update of Current Subcommittee Activities Public Comments: 1.Water Reclamation Facility & Morro Bay / Cayucos Sanitary District JPA Public Comments: 2.Morro Bay Power Plant (Vistra) Public Comments: 3.Offshore Wind Energy Public Comments: 4.Morro Elementary School Public Comments: 4.RECOGNITION AND PRESENTATIONS Public Comments: None.5.PUBLIC COMMENT Public Comments: 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. 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.6.aApproval of Minutes Public Comments: (City Clerk)Recommended ActionApprove as submitted.1.October 14, 2025 - Regular Council Meeting Attachments | Public Comments1.Post-Meeting Minutes - CCRM_Oct14_2025 - English.pdf2.October 21, 2025 - Special Joint Council and CFAC Meeting Attachments | Public Comments1.Post-Meeting Minutes - Special Joint Council CFAC Meeting_Oct21_2025 - English.pdf3.October 28, 2025 - Special Closed Session Meeting Attachments | Public Comments1.Post-Meeting Minutes - CCCM_Oct28_2025 - English.pdf6.bConsideration of forming Council Sub-committee regarding Examining the feasibility of shared Fire and EMS services with LOCSD titled the "Shared Fire Services subcommittee" Attachments | Public Comments1.6b Consideration of Forming Los Osos and Morro Bay Fire Services.pdf2.6b1 Letter of Interest MB Fire.pdf(Fire Department)Recommended ActionAs requested during the approval of Item 6h at the October 14, 2025 Regular Meeting, consider the establishment of a Council sub-committee regarding the Letter of Interest received from the Los Osos CSD regarding examining the feasibility of shared Fire and EMS services. If a sub-committee is established, pursuant to Council Policies Section 3.13, a defined purpose, parameters, and anticipated duration of the sub-committee should be established. 6.cApproval of Fiscal Year 2024-25 Year-End Budget Adjustments Attachments | Public Comments1.6c SR 2024-25 Year-End Budget Adjustments.pdf2.6c1 Reso 57-25 FY 2024-25 Year-End Budget Adjustments.pdf3.6c2 2024-25 Budget Performance Reports.pdf(Finance Department)Recommended ActionAdopt Resolution No. 57-25 approving FY 2024-25 Year-End Budget Adjustments.6.dFirst Quarter Investment Report (period ending September 30, 2025) for Fiscal Year (FY) 2025-26 Attachments | Public Comments1.6d SR FY2025-26 Q1 Investment Report.pdf2.6d1 FY 2025-26_Q1 Investment Report.pdf(Finance Department)Recommended ActionReceive the attached First Quarter Investment Report (period ending September 30, 2025) for FY 2025-26.6.eAuthorize a Professional Services Agreement with Pavement Engineering, Inc. for Pavement Evaluation and Design Services for the 2026 Pavement Rehabilitation Project Attachments | Public Comments1.6e SR Authorize PSA with PEI FY26 Paving Design.pdf2.6e1 Pavement Engineering Inc._Agreement for FY26 Paving Design.pdf(Public Works Department)Recommended ActionAuthorize the City Manager to execute a Professional Services Agreement with Pavement Engineering, Inc. in the amount of $343,334.00 for Pavement Evaluation and Design Services for the 2026 Pavement Rehabilitation Project. 6.fAdopt Resolution Nos. 55-25 and 56-25 for Grant Applications for Potential Rancho Colina Utilities Consolidation Attachments | Public Comments1.6f SR - Rancho Colina Modify Resos 55-25 and 56-23.pdf2.6f1 Reso 55-25 CWSRF_Rancho Colina Consolidation Evaluation.pdf3.6f2 Reso 56-25 - DWSRF_Rancho Colina Consolidation Evaluation.pdf(Public Works Department)Recommended ActionAdopt Resolution Nos. 55-25 and 56-25 for the Clean Water State Revolving Fund (CWSRF) and Drinking Water State Revolving Fund (DWSRF) Grant Applications for the Rancho Colina Consolidation Evaluation Projects. These resolutions only modify previously approved City Council Resolution Nos. 51-23 and 52-23.6.gOrdinance No. 673, repealing and reenacting multiple chapters of Title 14 (Buildings and Construction) of the MBMC to incorporate the 2025 California Building Standards Code, including the 2025 Wildland-Urban Interface Code and related local amendments, Attachments | Public Comments1.6g SR 2025 Building Code Adoption.pdf2.6g1 Ord 673 2025 Building Code Update (Red-lined).pdf3.6g2 Ord 673 2025 Building Code Update (Clean).pdfincluding the addition of spark arrestors on outdoor fire pits and the prohibition of fireworks(Community Development Department)Recommended ActionAdopt Ordinance No. 673: “An Ordinance of the City Council of the City of Morro Bay, California, repealing, amending and reenacting Chapters 14.01 – 14.12 of Title 14 (Buildings and Construction) of the Morro Bay Municipal Code, thereby adopting by reference and amending the 2025 California Building Code (Volumes 1 and 2), Residential, Electrical, Mechanical, Plumbing, Energy, Historical Building, Fire, Existing Building, Green Building, Administrative, and Reference Standards Codes, the 2021 International Property Maintenance Code, the 1997 Uniform Code for the Abatement of Dangerous Building Code, and the 2025 Wildland-Urban Interface Code.”6.hApproval of Contract with San Luis Obispo County for Animal Care and Control Services for FY 2025/26 through FY 2029/30 and adoption of Resolution No. 58-25 Authorizing the Related Budget Amendment Attachments | Public Comments1.6h SR Animal Control Services.pdf2.6h1 Animal Care and Control Services Contract_FY 2025-30.pdf3.6h2 Reso 58-25 Budget Amendment Resolution Animal Services Contract.pdf(Police Department)Recommended ActionAuthorize the City Manager to execute a five-year contract with the County of San Luis Obispo, for the continued provision of Animal Care and Control Services from July 1, 2025 to June 30, 2030 and adopt Resolution No. 58-25 amending the Operating Budget to the full contract amount for FY 2025/26. 7.PUBLIC HEARING ITEMS Public Comments: 7.aReview and Adopt Draft Funding Recommendations for the 2026 Community Development Block Grant (CDBG) Program Attachments | Public Comments1.7a SR 2026 Draft CDBG Funding Recommendations Staff Report_FIN.pdf2.7a1 Reso 59-25 for 2026 Draft CDBG Funding Recommendations.pdf3.7a2 CAPSLO 40 Prado Application for Public Services.pdf4.7a3 CAPSLO Minor Home Repair Application for Housing Rehabilitation.pdf5.7a4 Public Works ADA Sidewalk Repair Application for Public Facilities.pdf(Community Development Department)Recommended ActionConduct a public hearing to review and adopt Resolution No. 59-25 approving draft funding recommendations for the 2026 Community Development Block Grant (CDBG) funds and forward recommendations to the San Luis Obispo (SLO) County Board of Supervisors for inclusion with the other draft funding requests from the Urban County Consortium. The funding recommendation is for two of the three applications received, both from Community Action Partnership of San Luis Obispo County, Inc. (CAPSLO) for a total estimated funding allocation of $64,262. Additionally, staff recommends the City Council authorize the City Manager to make pro rata adjustments to the allocation based on the final funding amount from SLO County based on the approval of the Federal budget and HUD’s final grant amount to the County.8.BUSINESS ITEMS Public Comments: 8.aReinstate of an Assistant City Manager to Prioritize and Manage Economic Development Efforts and Other Duties Attachments | Public Comments1.8a SR Reinstatement of an Assistant City Manager to Prioritize and Manage Economic Development Efforts and Other Duties.pdf(Interim City Manager)Recommended ActionApprove the reinstatement of an Assistant City Manager position in the City of Morro Bay, with the position focusing on economic development activities as well as number of other duties and provide staff direction as necessary.8.bDeclaration of Emergency and Authorize Actions required for the Morro Creek Stabilization Project Attachments | Public Comments1.8b SR (Interim) Morro Creek Bank Stabilization Declaration of Emergency.pdf(Public Works Department)Recommended ActionAuthorize the following actions related to the Morro Creek Bank Stabilization Project: Adopt a Resolution, by not less than four-fifths affirmative vote, confirming an emergency exists and authorizing the City Manager to negotiate and award an emergency public works contract for the project in an amount not to exceed $500,000; Authorize the City Manager, or designee, to approve construction contingency amounts up to a total of $150,000; Authorize the City Manager, or designee, to approve a professional services agreements for design and engineering during construction services for an amount not to exceed $250,000; and Find that the project is exempt from review under the California Environmental Quality Act Guidelines, pursuant to Section 15269(b) – Emergency Projects. 8.cDiscussion of Potential Ordinance Framework for Establishing Local Business Regulations for Massage Establishments and Technicians Attachments | Public Comments1.8c SR Massage Ordinance Discussion.pdf2.8c1 Quick facts about CAMTC.pdf3.8c2 2024-CAMTC-Smart-Guide.pdf(Police Department / City Attorney)Recommended ActionDiscuss and give direction to staff regarding the potential adoption of an Ordinance establishing local business regulations specific to massage establishments and technicians.9.COUNCIL DECLARATION OF FUTURE AGENDA ITEMS Public Comments: 10.ADJOURNMENT Public Comments: The November 25, 2025 Regular Meeting has been canceled. The next Regular Meeting will be held on December 9, 2025. 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. No Item Selected Attachments (0) | Public Comments (0)This item has no attachments.1.Post-Meeting Minutes - CCRM_Oct14_2025 - English.pdf1.Post-Meeting Minutes - Special Joint Council CFAC Meeting_Oct21_2025 - English.pdf1.6b Consideration of Forming Los Osos and Morro Bay Fire Services.pdf2.6b1 Letter of Interest MB Fire.pdf1.Post-Meeting Minutes - CCCM_Oct28_2025 - English.pdf1.6e SR Authorize PSA with PEI FY26 Paving Design.pdf2.6e1 Pavement Engineering Inc._Agreement for FY26 Paving Design.pdf1.6g SR 2025 Building Code Adoption.pdf2.6g1 Ord 673 2025 Building Code Update (Red-lined).pdf3.6g2 Ord 673 2025 Building Code Update (Clean).pdf1.6h SR Animal Control Services.pdf2.6h1 Animal Care and Control Services Contract_FY 2025-30.pdf3.6h2 Reso 58-25 Budget Amendment Resolution Animal Services Contract.pdf1.6f SR - Rancho Colina Modify Resos 55-25 and 56-23.pdf2.6f1 Reso 55-25 CWSRF_Rancho Colina Consolidation Evaluation.pdf3.6f2 Reso 56-25 - DWSRF_Rancho Colina Consolidation Evaluation.pdf1.8c SR Massage Ordinance Discussion.pdf2.8c1 Quick facts about CAMTC.pdf3.8c2 2024-CAMTC-Smart-Guide.pdf1.6c SR 2024-25 Year-End Budget Adjustments.pdf2.6c1 Reso 57-25 FY 2024-25 Year-End Budget Adjustments.pdf3.6c2 2024-25 Budget Performance Reports.pdf1.6d SR FY2025-26 Q1 Investment Report.pdf2.6d1 FY 2025-26_Q1 Investment Report.pdf1.7a SR 2026 Draft CDBG Funding Recommendations Staff Report_FIN.pdf2.7a1 Reso 59-25 for 2026 Draft CDBG Funding Recommendations.pdf3.7a2 CAPSLO 40 Prado Application for Public Services.pdf4.7a3 CAPSLO Minor Home Repair Application for Housing Rehabilitation.pdf5.7a4 Public Works ADA Sidewalk Repair Application for Public Facilities.pdf1.8a SR Reinstatement of an Assistant City Manager to Prioritize and Manage Economic Development Efforts and Other Duties.pdf1.8b SR (Interim) Morro Creek Bank Stabilization Declaration of Emergency.pdfThis item has no public comment