MINUTES - MORRO BAY CITY COUNCIL

REGULAR MEETING

Wednesday, November 12, 2025 at 5:30 P.m. - 6:30 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 Manager Andrea Lueker
• 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 Vitality Director Chris Munson

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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: real property negotiations regarding the former Morro Elementary School site and the City Manager recruitment.  No reportable action was taken pursuant to the Brown Act.

3.b

Mayor and Councilmembers' Reports, Announcements and Presentations

Mayor Wixom announced Item 8.b., the Morro Creek Stabilization Project, was being pulled from the agenda and will be discussed at a Special Meeting next week, and that public comment on this item would be taken during general Public Comment.

3.c

City Manager Reports, Announcements and Presentations

3.d

Subcommittee Reports - Verbal Update of Current Subcommittee Activities

a.

Water Reclamation Facility & Morro Bay / Cayucos Sanitary District JPA

b.

Morro Bay Power Plant (Vistra)

c.

Offshore Wind Energy

d.

Morro Elementary School

4.

RECOGNITION AND PRESENTATIONS

None.

5.

PUBLIC COMMENT

• Linda Winters, Morro Bay, provided a Monday Night Dinner update and announced the upcoming Annual Thanksgiving Dinner.  
• Betty Winholtz, Morro Bay, announced the Recreation & Parks Commission will discuss the Events Policy at its November 20th Meeting, commented on her experience observing bicyclists safely cross at Main and Highway 41 which would not have happened with a roundabout, and requested a PEG Fund status update.  
• Margaret Carman, Morro Bay, expressed concern about microplastics, pollution and offshore wind. 
• Jeremiah O'Brien, Morro Bay, commented in support of the Morro Creek stabilization project and asked the City keep the commercial fishermen informed during the project.  
• Bill Blue, President of the Morro Bay Commercial Fishermen's Organization, strongly supported the Morro Creek restoration project as continued access to the gear storage was imperative and offered to be a point of contact if and when construction takes place.  

End of 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, commented on Item 6.e., noting paving needs on Pacific Street and Shasta Avenue. Regarding Item 6.f, she asked if the City plans to amend policies in order to provide water service outside the city limits.  

End of public comment.

Mayor Wixom pulled Item 6.b. Council Member Luffee pulled Items 6.e. and 6.f. 

• Motion by Council Member Landrum
  Seconded by Council Member Eckles

  Approve all items on Consent, except Items 6.b, 6.e and 6.f, as submitted.

  Ayes (5)

  Mayor Wixom, Council Member Landrum, Council Member Edwards, Council Member Luffee, and Council Member Eckles

  CARRIED (5 to 0)

6.a

Approval of Minutes

• Approve as submitted.

a.

October 14, 2025 - Regular Council Meeting

b.

October 21, 2025 - Special Joint Council and CFAC Meeting

c.

October 28, 2025 - Special Closed Session Meeting

6.b

Consideration of forming Council Sub-committee regarding Examining the feasibility of shared Fire and EMS services with LOCSD titled the "Shared Fire Services subcommittee"

Interim City Manager Lueker requested the Council nominate two members to participate on this new subcommittee. Mayor Wixom offered to serve and invited Council Member Eckles to join her. Council Member Landrum nominated the Mayor and Council Member Eckles to serve on the subcommittee and Council Member Luffee added his support.  

• Motion by Mayor Wixom
  Seconded by Council Member Luffee

  Establish a Council sub-committee consisting of Mayor Wixom and Council Member Eckles 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. 

  Ayes (5)

  Mayor Wixom, Council Member Landrum, Council Member Edwards, Council Member Luffee, and Council Member Eckles

  CARRIED (5 to 0)

6.c

Approval of Fiscal Year 2024-25 Year-End Budget Adjustments

• Adopt Resolution No. 57-25 approving FY 2024-25 Year-End Budget Adjustments.

6.d

First Quarter Investment Report (period ending September 30, 2025) for Fiscal Year (FY) 2025-26

• Receive the attached First Quarter Investment Report (period ending September 30, 2025) for FY 2025-26.

6.e

Authorize a Professional Services Agreement with Pavement Engineering, Inc. for Pavement Evaluation and Design Services for the 2026 Pavement Rehabilitation Project

Staff responded to Council inquiries and questions raised during public comment.

• Motion by Council Member Luffee
  Seconded by Council Member Landrum

  Authorize 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.

  Ayes (5)

  Mayor Wixom, Council Member Edwards, Council Member Eckles, Council Member Landrum, and Council Member Luffee

  CARRIED (5 to 0)

6.f

Adopt Resolution Nos. 55-25 and 56-25 for Grant Applications for Potential Rancho Colina Utilities Consolidation

Staff responded to questions related to potential annexation of the property, noting consideration and analysis would come at a later stage in the project. 

• Motion by Council Member Luffee
  Seconded by Council Member Landrum

  Adopt 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.

  Ayes (5)

  Mayor Wixom, Council Member Edwards, Council Member Eckles, Council Member Landrum, and Council Member Luffee

  CARRIED (5 to 0)

6.g

Ordinance 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,

• Adopt 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.h

Approval 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

• Authorize 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

7.a

Review and Adopt Draft Funding Recommendations for the 2026 Community Development Block Grant (CDBG) Program

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.

• Betty Winholtz, Morro Bay, commented in support of staff's recommendation and appreciated this year's focus on housing needs.  

End of public comment.

Mayor closed the public hearing.

• Motion by Mayor Wixom
  Seconded by Council Member Luffee

  Conduct 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.

  Ayes (5)

  Mayor Wixom, Council Member Edwards, Council Member Eckles, Council Member Landrum, and Council Member Luffee

  CARRIED (5 to 0)

8.

BUSINESS ITEMS

8.a

Reinstate of an Assistant City Manager to Prioritize and Manage Economic Development Efforts and Other Duties

Interim City Manager Lueker presented the report and responded to Council inquiries.

Mayor Wixom opened public comment for Item 8.a.

• Jim Gross, Morro Bay, appreciated the report and offered his support as the City moves forward to define the role of the Assistant City Manager and economic development goals.  
• Bob Fowler, Member of the Chamber of Commerce Board of Directors and Business Advisory Committee, offered the Chamber's support and suggested the new city manager have a role in defining economic development for our city and selecting the person to lead those efforts.
• Dina Lundquist, Morro Bay Chamber of Commerce CEO, strongly supported the City's economic development efforts, noting the Chamber stands ready to be a strategic partner.   
• Betty Winholtz, Morro Bay, questioned the timing and suggested waiting until the new city manager is on board. 
• Margaret Carman, Morro Bay, agreed it was not time to hire an Assistant Manager and urged the City to wait until the new city manager was on board and gets a feel for the organization.  

End of public comment.

Following discussion, there was consensus to pause until the permanent city manager has an opportunity to audit the organization's integrity and efficiency then provide recommendations to Council regarding economic development policies and goals, revenue generation ideas, and alternatives to lead those efforts. Mayor Wixom directed the Clerk to add a follow-up item to the agenda planning track (estimated timeframe more than 90 days, less than 9 months).  

8.b

Declaration of Emergency and Authorize Actions required for the Morro Creek Stabilization Project

This item was pulled from the agenda and a special meeting will be held the week of November 17th to address this issue.

8.c

Discussion of Potential Ordinance Framework for Establishing Local Business Regulations for Massage Establishments and Technicians

The Council took a brief recess at 7:14 p.m. and reconvened at 7:23 p.m. with all members present.

Police Chief Watkins presented the report and responded to Council inquiries.

Mayor Wixom opened public comment for Item 8.c.

• Michelle Leicester-Cadaret, Morro Bay, appreciated the proposed ordinance, urged enforcement of sign regulations requiring neon signs to be turned off at night, and suggested hours of operation be limited.  
• Susan Stewart, Morro Bay business owner, appreciated the recommendations and suggestions, reminding staff of the importance of informing affected business owners.  

End of public comment.

Following Council discussion, there was consensus to return with an ordinance that, in addition to what was presented, addressed the number of establishments and proximity to each other. Individual comments suggested regulations related to window coverings that require visibility from the street into the lobby during business hours. 

• Motion by Council Member Landrum
  Seconded by Council Member Edwards

  Direct staff regarding the potential adoption of an Ordinance establishing local business regulations specific to massage establishments and technicians with comments that have been made tonight.

  Ayes (5)

  Mayor Wixom, Council Member Edwards, Council Member Eckles, Council Member Landrum, and Council Member Luffee

  CARRIED (5 to 0)

9.

COUNCIL DECLARATION OF FUTURE AGENDA ITEMS

Council Member Landrum requested and received support for a status report on the Veterans Hall A/V project be presented to PWAB.  

Council Member Landrum requested a conversation regarding the City's response to the gentleman who presented concerns about arsenic contamination at the power plant.  

10.

ADJOURNMENT

The meeting adjourned at 8:15 p.m. 

Respectfully submitted,

/s/ Dana Swanson, City Clerk