MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETINGTuesday, October 14, 2025 at 5:30 P.m. - 6:30 P.m.Veterans Memorial Hall 209 Surf St., Morro Bay, CAMembers Present:Mayor Carla WixomCouncil Member Cyndee EdwardsCouncil Member Jeff EcklesCouncil Member Zara LandrumCouncil Member Bill LuffeeStaff Present:Interim City Manager Andrea LuekerCity Attorney Brian StackCity Clerk Dana SwansonFinance Director Emily ConradPublic Works Director Greg KwolekCommunity Development Director Airlin SingewaldPolice Chief Amy WatkinsFire Chief Dan McCrainHarbor Vitality Director Chris Munson1.ESTABLISH QUORUM AND CALL TO ORDER Public Comments: Mayor Wixom called the meeting to order at 5:30 p.m. with all members present. 2.PLEDGE OF ALLEGIANCE Public Comments: 3.REPORTS Public Comments: 3.aClosed Session Report Public Comments: City Attorney Stack announced the Council met in closed session on Monday, October 13, to discuss two real property matters and one potential litigation matter. No reportable action was taken under the Brown Act for that meeting. The Council also met in closed session on Tuesday, October 14, to discuss the City Manager recruitment and no reportable action was taken under the Brown Act.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: a.Water Reclamation Facility & Morro Bay / Cayucos Sanitary District JPA Public Comments: b.Morro Bay Power Plant (Vistra) Public Comments: c.Offshore Wind Energy Public Comments: d.Morro Elementary School Public Comments: 4.RECOGNITION AND PRESENTATIONS Public Comments: 5.PUBLIC COMMENT Public Comments: Members of the Morro Bay 4-H Club shared information regarding their programs in honor of National 4-H Week. For more information, contact [email protected]. Linda Winters, Morro Bay, encouraged residents to prepare in advance for weather-related events. Jeff Heller, Morro Bay, appreciated the work of the Council and City staff. Nicole Dorfman, Morro Bay resident and member of REACT Alliance, announced an upcoming event on Saturday, October 25, from 6:00 - 10:00 p.m. at Shindig in San Luis Obispo. Garry Johnson, Morro Bay, acknowledged visitors place a burden on City services, hoped for more information regarding paid parking at the Rock and was not supportive of paid parking at the boat ramp or charging Morro Bay residents a fee for parking. Margaret Carman, Morro Bay, announced SLOCOG was hosting a community forum regarding the Climate Resiliency Plan on Oct 22, from 6:00 - 7:30 p.m. at the Nazarene Church in Los Osos. She also asked whether the contractor would be held responsible for costs associated with the City's response to a recent broken water line. Betty Winholtz, Morro Bay, requested all department heads be seated in the front of the room. Cal Myers, Morro Bay, clarified the movie night being planned by Friends of the Morro Bay Harbor Dept will be held on Thursday before the Lighted Boat Parade. Katie Schlott, Morro Bay, thanked City for taking the Morro Elementary negotiations seriously. 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. Mayor Wixom announced Item 6.f. is being pulled from the agenda and moved to the next meeting. Mayor Wixom opened public comment for items on the Consent Agenda. Betty Winholtz, Morro Bay, expressed concern regarding Item 6.g and hoped the Council would set parameters on those discussions. End of public comment. Mayor Wixom pulled Item 6.g. Council Member Luffee pulled Item 6.c.Motion byCouncil Member LandrumSeconded byCouncil Member EcklesApprove Consent Agenda items except 6.c, 6.f and 6.g as submitted. Ayes (5)Mayor Wixom, Council Member Landrum, Council Member Edwards, Council Member Luffee, and Council Member EcklesCARRIED (5 to 0)6.aApproval of Minutes Public Comments: Approve as submitted.a.September 23, 2025 - Regular Council Meeting Attachments | Public Comments1.Post-Meeting Minutes - CCRM_Sep23_2025 - English.pdfb.September 23, 2025 - Special Closed Session Meeting Attachments | Public Comments1.Post-Meeting Minutes - CCCM_Sep23_2025 - English.pdfc.September 23, 2025 - Special Meeting Attachments | Public Comments1.Post-Meeting Minutes - City Council Special Meeting_Sep23_2025 - English.pdf6.bApproval of Proclamations Public Comments: Approve as submitted.a.Domestic Violence Awareness Month Proclamation Attachments | Public Comments1.6b Domestic Violence Action Month Proclamation 2025.pdf6.cType 3 Fire Engine Vehicle Replacement Attachments | Public Comments1.6c SR Type 3 Engine Purchase Request.pdf2.6c1 South Coast Fire Equipment Proposal.pdfFire Chief McCrain responded to Council questions regarding funding for the Type 3 replacement vehicle.Motion byCouncil Member LandrumSeconded byCouncil Member LuffeeAuthorize the Fire Chief to sign a purchase agreement in the amount of $669,101.49 for a Pierce Type 3 Wildland Fire Engine to replace Engine 5371 through South Coast Fire Equipment using a Sourcewell Cooperative purchasing agreement.Ayes (5)Mayor Wixom, Council Member Edwards, Council Member Eckles, Council Member Landrum, and Council Member LuffeeCARRIED (5 to 0)6.dAdoption of Resolution No. 52-25 Authorizing the City of Morro Bay to Enter into a Fiscal Year (FY) 2025-26 Surrendered and Abandoned Vessel Exchange Grant Contract and Related Budget Amendment Attachments | Public Comments1.6d SR SAVE Grant C25S0605.pdf2.6d1 Reso 52-25 SAVE Grant.pdf3.6d2 SAVE 2025 Grant unsigned.pdfAdopt Resolution No. 52-25 authorizing the Harbor Business Manager to execute and act as the City’s agent for the attached FY 2025-26 Surrendered and Abandoned Vessel Exchange Grant (SAVE) Agreement #C25S0605 with the State of California Department of Parks and Recreation, Division of Boating and Waterways (DBW) for $15,750.00 for funding to remove abandoned/surrendered vessels and hazards to navigation, and authorizing the related budget amendment.6.eAdoption of Resolution No. 53-25 Authorizing the City of Morro Bay to Enter Into a Fiscal Year (FY) 2025-26 Boating Safety and Enforcement Equipment Grant Contract and Related Budget Amendment Attachments | Public Comments1.6e SR DBW BSE Grant Outdrive Replacement.pdf2.6e1 Reso 53-25 DBW BSE Grant Outdrives.pdf3.6e2 Morro Bay Grant Agreement No. C25L0604.pdfAdopt Resolution No. 53-25, authorizing the Harbor Business Manger to execute and act as the City’s agent for the attached FY 2025-26 Boating Safety and Enforcement Equipment Grant (BSEE) Agreement # C25L0604 with the State of California Department of Parks and Recreation, Division of Boating and Waterways (DBW) in the amount of $32,689.96 to purchase two replacement transom assemblies and two outdrives, and authorizing the related budget amendment.6.fDetermination of Public Convenience or Necessity for ABC License - 640 Quintana Road, Morro Bay Cigarettes, Inc. Attachments | Public Comments1.6f SR - Morro Bay Cigarettes LLC Determination of PCN.pdf2.6f1 Draft Letter from Chief Watkins - Morro Bay Cigarettes Alcohol Letter.pdfThis item was pulled from the agenda.6.gLetter of Interest from LOCSD regarding shared fire protection and emergency medical services Attachments | Public Comments1.6g SR Response to LOCSD request.pdf2.6g1 Letter of Interest from Los Osos CSD.pdfFire Chief McCrain responded to Council inquiries regarding shared fire protection and emergency medical services for LOCSD. There was Council support for creating a subcommittee to participate in the analysis of obligations involved in providing shared services and how that might impact the level of service for our community.Motion byCouncil Member LandrumSeconded byCouncil Member LuffeeAuthorize City staff to prepare a response to the letter of interest exploring shared fire and EMS services.Ayes (5)Mayor Wixom, Council Member Edwards, Council Member Eckles, Council Member Landrum, and Council Member LuffeeCARRIED (5 to 0)7.PUBLIC HEARING ITEMS Public Comments: 8.BUSINESS ITEMS Public Comments: 8.aAdvisory Board Interviews and Citizens Oversight/Finance Advisory Committee Appointment Attachments | Public Comments1.8a SR Advisory Board Interviews.pdf2.8a1 Applications_Redacted.pdfMayor Wixom opened public comment for Item 8.a; seeing none, the public comment period was closed. Michael Jones was unable to attend interviews due to illness and, given two more seats come available February 1, 2026, the Council agreed to hold his application open for the annual recruitment. Mayor Wixom invited Mr. Branin forward to introduce himself. Motion byCouncil Member LandrumSeconded byCouncil Member LuffeeAppoint Barry Branin to fill an unscheduled vacancy on the Citizens Oversight/Finance Advisory Committee (“CFAC”) for two years and carry forward the applicant that was unable to attend tonight.Ayes (5)Mayor Wixom, Council Member Edwards, Council Member Eckles, Council Member Landrum, and Council Member LuffeeCARRIED (5 to 0)8.bAdopt Resolution No. 54-25 revising the City of Morro Bay Community Grant Policy Attachments | Public Comments1.8b SR Community Grant Policy Review.pdf2.8b1 Reso 54-25 Community Grant Policy.pdf3.8b2 Reso 54-25 Exhibit A Community Grant Policy.pdf4.8b3 Reso 54-25 Attachment 1 to Exhibit A Community Grant Application.pdf5.8b4 Reso 54-25 Attachment 2 to Exhibit A Community Grant Scoring Rubric.pdf6.8b5 Reso 54-25 Attachment 3 to Exhibit A Community Grant Agreement.pdf7.8b6 Reso 54-25 Attachment 4 to Exhibit A Annual Report Form.pdf8.8b6.1 Reso 54-25 Attachment 4 pg 2 Community Grant Year End Expense Report.pdfInterim City Manager Lueker presented the report and responded to Council inquiries. Mayor Wixom opened public comment for Item 8.b Dina Lundquist, Morro Bay Chamber of Commerce CEO, expressed concern the proposed policy changes disproportionately burden smaller organizations. Betty Winholtz, Morro Bay, opined the process was too formal and overly burdensome. End of public comment. Following individual comments and discussion, there was Council consensus to rescind the 2019 Community Grants Policy and reevaluate opportunities to support local non-profit groups by way of partnership agreements and event fee waivers. Motion byCouncil Member EcklesSeconded byCouncil Member LandrumRescind Resolution No. 67-19.Ayes (5)Mayor Wixom, Council Member Landrum, Council Member Edwards, Council Member Luffee, and Council Member EcklesCARRIED (5 to 0)8.cShort-Term Rental Ordinance Implementation - Quarterly Update Attachments | Public Comments1.8c STR Update to Council Staff Report_October 2025.pdf2.8c1 Current Vacation Rental Status Map - 175 Buffer_Closed STRs.pdf3.8c2 Current Vacation Rental Map - Clean Version.pdfCommunity Development Director Singewald presented the report and responded to Council inquiries. Mayor Wixom opened public comment on Item 8.c. Barry Branin, Morro Bay, suggested the STR ordinance be amended to eliminate the grandfather clause or impose a 3-to-5-year limit. Michelle Leicester-Cadaret, Morro Bay, supported limiting terms and requested fire pits be phased out. Betty Winholtz, Morro Bay, supported removing the grandfather clause, suggested unhosted hotels be required to comply with the STR ordinance, opposed issuance of new permits except for homeshares, and supported increased fines for non-compliance. Jeff Heller, Morro Bay, hoped for a reduction in the number of licenses and supported increased fines for non-compliance. He suggested residents be given authority to enforce rules and rescind licenses, offering the Palm Springs ordinance as a good example to follow. Maggie Juren, Beach N Bay Getaways & U Relax Vacation Rentals, offered the STR permitting process was time consuming but effective, and urged the Council to not reduce the number of permits issued as there will be attrition due to non-transference of permit upon sale. She noted almost all licensed STRs would not convert to full home rentals and the housing shortage is largely due to second homes. She requested Council allow the current regulations time to achieve their intended purpose. End of public comment. The Council directed staff to return with an ordinance increasing fine amounts as allowed by SB 60 and reconsider the issuance of homeshare permits in January. The Council took a brief recess at 7:45 p.m. and reconvened at 7:56 p.m. with all members present.8.dDiscussion and Request for Direction Regarding Potential to Establish Local Campaign Finance Contribution Limits Attachments | Public Comments1.8d SR - Campaign Contribution Limits Discussion.pdfCity Attorney Stack presented the report and responded to Council inquiries. Mayor Wixom opened public comment for Item 8.d; seeing none, the public comment period was closed. Following comments and discussion, there was Council consensus to direct staff to bring back an ordinance establishing a $500 campaign contribution limit with alternatives for enforcement. 9.COUNCIL DECLARATION OF FUTURE AGENDA ITEMS Public Comments: Council Member Landrum requested the list of pending future agenda items be listed at the bottom of the agenda. Ms. Lueker offered to send it to Council on a monthly or bi-monthly basis. With the economic vitality goal in mind, Council Member Landrum requested discussion of how to create policies (vacancy tax or other mechanism) to encourage owners of vacant property to put businesses in them and address blight (vacant commercial properties at the two entrances to Morro Bay and the Vistra property were listed as examples). Also, in light of discussion on STRs, wished to explore a possible tax on secondary homes. Lastly, she hoped to find a way to encourage property owners along the Embarcadero to use vacant property for parking rather than taking steps to implement paid parking at the Rock, and requested an update on the camping ordinance and massage business regulations. 10.ADJOURNMENT Public Comments: The meeting adjourned at 8:30 p.m. Respectfully submitted, /s/ Dana Swanson, City ClerkNo Item Selected Attachments (0) | Public Comments (0)This item has no attachments.1.6b Domestic Violence Action Month Proclamation 2025.pdf1.Post-Meeting Minutes - CCCM_Sep23_2025 - English.pdf1.Post-Meeting Minutes - City Council Special Meeting_Sep23_2025 - English.pdf1.Post-Meeting Minutes - CCRM_Sep23_2025 - English.pdf1.6c SR Type 3 Engine Purchase Request.pdf2.6c1 South Coast Fire Equipment Proposal.pdf1.6f SR - Morro Bay Cigarettes LLC Determination of PCN.pdf2.6f1 Draft Letter from Chief Watkins - Morro Bay Cigarettes Alcohol Letter.pdf1.6g SR Response to LOCSD request.pdf2.6g1 Letter of Interest from Los Osos CSD.pdf1.8a SR Advisory Board Interviews.pdf2.8a1 Applications_Redacted.pdf1.8b SR Community Grant Policy Review.pdf2.8b1 Reso 54-25 Community Grant Policy.pdf3.8b2 Reso 54-25 Exhibit A Community Grant Policy.pdf4.8b3 Reso 54-25 Attachment 1 to Exhibit A Community Grant Application.pdf5.8b4 Reso 54-25 Attachment 2 to Exhibit A Community Grant Scoring Rubric.pdf6.8b5 Reso 54-25 Attachment 3 to Exhibit A Community Grant Agreement.pdf7.8b6 Reso 54-25 Attachment 4 to Exhibit A Annual Report Form.pdf8.8b6.1 Reso 54-25 Attachment 4 pg 2 Community Grant Year End Expense Report.pdf1.8c STR Update to Council Staff Report_October 2025.pdf2.8c1 Current Vacation Rental Status Map - 175 Buffer_Closed STRs.pdf3.8c2 Current Vacation Rental Map - Clean Version.pdf1.8d SR - Campaign Contribution Limits Discussion.pdf1.6d SR SAVE Grant C25S0605.pdf2.6d1 Reso 52-25 SAVE Grant.pdf3.6d2 SAVE 2025 Grant unsigned.pdf1.6e SR DBW BSE Grant Outdrive Replacement.pdf2.6e1 Reso 53-25 DBW BSE Grant Outdrives.pdf3.6e2 Morro Bay Grant Agreement No. C25L0604.pdfThis item has no public comment