MINUTES - MORRO BAY CITY COUNCIL

REGULAR MEETING

Tuesday, June 25, 2024 at 5:30 P.m. - 9:30 P.m.

Veterans Memorial Hall, 209 Surf St., Morro Bay, CA

Members Present:

• Mayor Carla Wixom
• Council Member Zara Landrum
• Council Member Laurel Barton
• Council Member Cyndee Edwards
• Council Member Jennifer Ford

Staff Present:

• City Manager Yvonne Kimball
• City Attorney Chris Neumeyer
• City Clerk Dana Swanson
• Public Works Director Greg Kwolek
• Community Development Director Airlin Singewald
• Police Chief Amy Watkins
• Fire Chief Dan McCrain
• Administrative Programs Manager Melissa Green

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1.

ESTABLISH QUORUM AND CALL TO ORDER

Mayor Wixom called the meeting to order at 5:31 p.m., with all members present. 

2.

MOMENT OF SILENCE

3.

PLEDGE OF ALLEGIANCE

4.

REPORTS

4.a

Closed Session Report

City Attorney Neumeyer announced no reportable action was taken in closed session. 

4.b

Mayor and Councilmembers' Reports, Announcements and Presentations

https://youtu.be/QM6GbliQEQY?si=tboTfVbastoGp1S-&t=119

4.c

City Manager Reports, Announcements and Presentations

https://youtu.be/QM6GbliQEQY?si=omX__fKgttrAWh1s&t=427

4.d

Subcommittee Reports

https://youtu.be/QM6GbliQEQY?si=EdXF2LcaRENr9-rk&t=831

a.

Water Reclamation Facility & Morro Bay / Cayucos Sanitary District JPA

b.

Morro Bay Power Plant (Vistra)

c.

Offshore Wind Energy

d.

Downtown Design District

5.

RECOGNITION AND PRESENTATIONS

5.a

Presentation of "Parks Make Life Better Month" Proclamation

https://youtu.be/QM6GbliQEQY?si=4BMoq4w6kNXFLNYj&t=1394

Presented to Recreation Supervisor, Angelica Jepsen.

6.

PUBLIC COMMENT

https://youtu.be/QM6GbliQEQY?si=oRXTIDRKnod-m-oE&t=1701

Mayor Wixom opened public comment for items not on the agenda.

• BMC Eric Ceallaigh, Officer in Charge Morro Bay, USCG, introduced himself and looked forward to being involved in the community.  
• Tom Harrington, Morro Bay, spoke regarding Measure A-24.  
• Michael Oliveira, Morro Bay, expressed concern regarding the new skiff storage program.  
• Laurie Allen, Morro Bay, commented on the County's plan to restrict access to the Morro Bay library book room.  
• Garry Johnson, Morro Bay, spoke regarding potential for lithium battery failures and urged residents to vote yes on Measure A.
• Nancy Cooper, Morro Bay, asked the City to enforce the current skiff program before implementing a new policy. 
• Lynda Merrill, Morro Bay, read letter from husband, Frank Merrill, regarding ballot measures. 
• Jim Gross, Morro Bay, urged residents to vote against Measure A-24 and allow the City the ability to negotiate directly with the developer.  
• Joe Silano, Morro Bay, urged the City to enforce the skiff storage program established by Resolution 9.81 and stop the new skiff policy.
• Linda Winters, Morro Bay, expressed gratitude to those who offered assistance following back surgery.   
• Adam Battenburg, Morro Bay, asked the City to pause the new skiff storage program and work with mooring owners toward a better solution.  
• Denise Jacobson, Cambria, expressed concern about the skiff storage contract.  
• Pirate Steve Yarling, Morro Bay, spoke regarding new skiff storage program.  
• Aaron Ochs, Morro Bay, spoke in favor of Measure A-24.  
• Andrea Lueker, spoke on behalf of REACT Alliance, working to ensure the community understands impacts of offshore wind.  
• Mandy Davis, President of REACT Alliance, shared that since making presentation to City Council, they have made presentations all over the County about the impacts and consequences of offshore wind.  
• Bill Bowes, Morro Bay, commented on the City's need for additional revenues and was concerned Measure A-24 would take that away.  
• Barry Branin, Morro Bay, urged residents to support Measure A-24 as an opportunity to clean up the power plant brown zone.  
• Betty Winholtz, Morro Bay, commented on the County's plan to restrict use of the Library book room and urged the Council to meet with County to try to negotiate something different.  If that were not successful, she suggested the City consider leaving the library system. 
• Michelle Leicester-Cadaret, Morro Bay, commented on the Otay Mesa battery storage facility fire and asked the City to take proactive measures to prevent use of illegal fireworks. 
• An unnamed resident offered comments.  
• Margaret Carman, Morro Bay, urged the City to address the County's plan to restrict access to the Library book room.  
• Laurie Gillespie, Morro Bay, raised concern regarding parking issues and dying vegetation along San Jacinto, and noted Easter Street is in need of resurfacing.  
• Jean Johnson, Morro Bay, called for the City to assert its right to speak with County Library director and Supervisor Gibson to reconsider the decision to close the Library book room.
• Carol Parchet, Morro Bay, commented on need for street paving.  
• Don Maruska spoke regarding the community's need to better understand the potential impacts of Measure A-24 and urged the City to explore the issue and AB 205 through the relevant agencies.  
• Judy Setting, Morro Bay, commented on Measure A-24.

End of public comment.

The City Council took a brief recess at 6:57 p.m. The meeting reconvened at 7:11 p.m. with all members present.

7.

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.

https://youtu.be/QM6GbliQEQY?si=QV4b-dpQ9kvm9NPK&t=6050

Mayor Wixom opened public comment for items on the Consent Agenda.

• Rita Johnson, Morro Bay, commented on the need for more information from both sides on Measure A-24.  
• Jim Gross, Morro Bay, endorsed the inclusion of rebuttal arguments in the ballot pamphlet.  
• Glenn Silloway, Morro Bay, spoke in support of adding rebuttal arguments for the ballot measure and urged residents to vote No on Measure A-24. 
• Marlys McPherson, Morro Bay, spoke in opposition to Measure A-24.  
• Jeff Eckles, Morro Bay, spoke in support of allowing rebuttal arguments for Measure A-24 and asked how the accuracy of the arguments would be judged and whether claims that aren't true would be printed in the voters guide.  
• Judy Setting, Morro Bay, expressed concern about potential misinformation presented in arguments.  She also requested a line item expenditure report for the Cloisters Assessment District.  

End of public comment.

Council Member Landrum pulled Item 7.c.

• Motion by Council Member Ford
  Seconded by Mayor Wixom

  Approve consent agenda items 7.a through 7.e, minus item 7.c.

  Ayes (5)

  Mayor Wixom, Council Member Landrum, Council Member Barton, Council Member Edwards, and Council Member Ford

  CARRIED (5 to 0)

7.a

Approval of Minutes

• Approve as submitted.

a.

May 28, 2024 - Special City Council Meeting

b.

May 28, 2024 - Regular Council Meeting

c.

June 11, 2024 - Special Closed Session Meeting

7.b

Approval of Proclamations

• Approve as submitted.

a.

Proclamation declaring July 2024 as "Parks Make Life Better Month"

7.c

General Municipal Election Resolutions for November 5, 2024 Election

https://youtu.be/QM6GbliQEQY?si=zArs6sDZi3h1kdPi&t=6768

Council Member Edwards commented on the importance of allowing for rebuttal arguments to be filed for and against the measure and posed questions that she had hoped would be addressed in a report on the potential impacts of the measure.  She suggested staff prepare a brief summary of what Measure A-24, the potential impacts and how it may relate to AB 205. 

• Motion by Council Member Edwards
  Seconded by Council Member Landrum
  1. Adopt Resolution No. 35-24 calling a general municipal election for November 5, 2024, and requesting consolidation of the election with the County, and Resolution No. 36-24 adopting regulations for candidate statements; and
  2. Adopt Resolution No. 37-24 allowing for the filing of rebuttal arguments to the primary written arguments in support of and opposing Measure A-24.

  Ayes (5)

  Mayor Wixom, Council Member Landrum, Council Member Barton, Council Member Edwards, and Council Member Ford

  CARRIED (5 to 0)

7.d

Resolutions approving Tentative Agreements and Successor MOUs for Morro Bay Peace Officers Assoc., SEIU Local No. 620, and Morro Bay Firefighters Assoc., and approving salaries and benefits for Unrepresented Confidential, Management, and Department Heads

• Staff recommends the City Council:

  1. Adopt Resolution No. 38-24 approving the Tentative Agreement for and Successor Memorandum of Understanding (MOU) as agreed to by the Morro Bay Police Officers Association (“MBPOA”) with an effective date of July 1, 2024.
  2. Adopt Resolution No 39-24 approving the Tentative Agreement for and Successor Memorandum of Understanding (MOU) as agreed to by the SEIU (Service Employees International Union) Local No. 620 with an effective date of July 1, 2024.    
  3. Adopt Resolution No. 40-24 approving the Tentative Agreement for, and Successor Memorandum of Understanding (MOU) as agreed to by the Morro Bay Firefighters Association (MBFFA) with an effective date of July 1, 2024.
  4. Adopt Resolution No. 41-24 approving the unrepresented Confidential employees' salary and benefits resolution effective July 1, 2024.
  5. Adopt Resolution No. 42-24 approving the unrepresented Management employees' salary and benefits resolution with an effective date of July 1, 2024.
  6. Adopt Resolution No. 43-24 approving the unrepresented Department Head employees' salary and benefits resolution with an effective date of July 1, 2024.

  The terms of the proposed MOUs (Memorandum of Understanding) and Resolutions are within the authority parameters approved by the Council in closed session. Each union's membership has voted on and approved the proposals.

7.e

Adopt Resolution No. 44-24 Revising the Terms of the City's Reimbursement Agreement with the California Governor's Office of Emergency Services to add the Deputy Chief and Seasonal Firefighter Job Classifications

• Adopt Resolution No. 44-24 rescinding and replacing Resolution No. 62-21 and revising the terms of the City’s reimbursement agreement to include the classifications of Deputy Chief and Seasonal Firefighter.

8.

PUBLIC HEARING ITEMS

8.a

Adoption of Resolution No. 45.24 Directing the Levy of the Annual Assessment for the Cloisters Landscaping and Lighting Maintenance Assessment District

https://youtu.be/QM6GbliQEQY?si=6nXsAWyPcGCQtngo&t=7454

Public Works Director Kwolek presented the report and responded to Council inquiries.

Mayor Wixom opened public comment on Item 8.a.

https://youtu.be/QM6GbliQEQY?si=ggHiNjXVI9Fcf2a5&t=7825

• Betty Winholtz, Morro Bay, requested a detailed financial report of general fund contribution toward maintenance of the Cloisters Assessment District.  
• Barry Branin, Morro Bay, felt some level of general fund support for Cloisters Park was appropriate.  
• Nattalia Merzoyan, Morro Bay, questioned utility costs for the Assessment District.  
• Dawn Beattie, Morro Bay, commented on the need to dredge the Cloisters pond for stormwater management and to remove contaminants.  

End of public comment.

• Motion by Council Member Ford
  Seconded by Council Member Edwards

  Adopt Resolution No. 45-24 approving the levy of the annual assessment for the Cloisters Landscaping and Lighting Maintenance Assessment District.

  Ayes (5)

  Mayor Wixom, Council Member Landrum, Council Member Barton, Council Member Edwards, and Council Member Ford

  CARRIED (5 to 0)

8.b

Adoption of Resolution No. 46-24 Directing the Levy of the Annual Assessment for the North Point Natural Area Landscaping and Lighting Maintenance Assessment District

https://youtu.be/QM6GbliQEQY?si=G1ytEYoryS7GbuVp&t=8362

Public Works Director Kwolek presented the report and responded to Council inquiries.

Mayor Wixom opened public comment for Item 8.b.

https://youtu.be/QM6GbliQEQY?si=-2hmrCUF5dKKfGCe&t=8543

• Betty Winholtz, Morro Bay, requested a more detailed reporting of maintenance costs.  

End of public comment.

• Motion by Council Member Landrum
  Seconded by Mayor Wixom

  Adopt Resolution No. 46-24 approving the levy of the annual assessment for the North Point Natural Area Landscaping and Lighting Maintenance District.

  Ayes (5)

  Mayor Wixom, Council Member Landrum, Council Member Barton, Council Member Edwards, and Council Member Ford

  CARRIED (5 to 0)

9.

BUSINESS ITEMS

9.a

Resolutions Approving Fiscal Year (FY) 24-25 Operating and Capital Budgets; FY 24-25, FY 25-26 and FY 26-27 Salary Schedules; New Job Classifications; Investment Policy; and FY 24-25 GANN Appropriations Limit

https://youtu.be/QM6GbliQEQY?si=aj88jVWNyLqR0n15&t=8699

Administrative Programs Manager Green presented the report and responded to Council inquiries.

Mayor Wixom opened public comment on Item 9.a.

https://youtu.be/QM6GbliQEQY?si=u13OftG6ekLzyfqc&t=10335

• Betty Winholtz, Morro Bay, objected to $25K for a professional goals facilitator, increased funding for Information Technology, and excessive reserves.  She urged the Council to prioritize and increase funding for street improvements.   
• Barry Branin, Morro Bay, took issue with hiring more people when revenues are projected to decline.  

End of public comment.

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

• Motion by Council Member Ford
  Seconded by Council Member Barton

  Staff recommends the City Council:

  1. Adopt Resolution No. 47-24 adopting the Fiscal Year (FY) 2024-25 Operating and Capital Budgets; and
  2. Adopt Resolution No. 48-24 approving the FY 2024-25, FY 2025-26, and FY 2026-27 Salary Schedules; and
  3. Adopt Resolution No. 49-24 approving Recreation Specialist and Assistant to the City Manager/Public Relations Manager Job Classifications and Job Descriptions; and
  4. Adopt Resolution No. 50-24 readopting the City’s Investment Policy; and
  5. Adopt Resolution No. 51-24 setting the FY 2024-25 GANN Appropriations Limit at $35,461,193.

  Ayes (5)

  Mayor Wixom, Council Member Landrum, Council Member Barton, Council Member Edwards, and Council Member Ford

  CARRIED (5 to 0)

9.b

Council Consideration to Affirm Staff Authority to Execute Amendment to State Revolving Fund (SRF) Construction Loan Agreement

https://youtu.be/QM6GbliQEQY?si=yDteRP2zJQzcU8e7&t=12227

Public Works Director Kwolek presented the report and responded to Council inquiries.

There was Council consensus to go past 9:30 p.m. to finish this item.

Mayor Wixom opened public comment on Item 9.b.

https://youtu.be/QM6GbliQEQY?si=QVyA7xBabPhI0Vwj&t=14016

• Homer Alexander, Morro Bay, urged the Council to approve the amendment and hoped staff would pursue grant funding for decommissioning of the old wastewater treatment plant. 
• Betty Winholtz, Morro Bay, agreed with previous speaker and questioned the continued need for Carollo's services.  
• Barry Branin, Morro Bay, spoke in support of staff's recommendation.

End of public comment.

• Motion by Council Member Barton
  Seconded by Mayor Wixom

  Affirm Staff Authorization to execute an amendment to the SRF Construction Loan Agreement (Loan Amendment) with the State Water Resources Control Board for a needed extension of the Construction Completion Date and SRF loan repayment dates, as well as providing for additional budget for WTTP decommissioning and demolition.  This Amendment is required to be executed by June 30, 2024, by the State Water Board.

  Ayes (5)

  Council Member Barton, Council Member Ford, Mayor Wixom, Council Member Landrum, and Council Member Edwards

  CARRIED (5 to 0)

10.

COUNCIL DECLARATION OF FUTURE AGENDA ITEMS

https://youtu.be/QM6GbliQEQY?si=lEsij7Qc64Tpt8QE&t=14615

Council Member Landrum asked that an emergency item be brought to the July meeting to support Friends of the Morro Bay Library's request for continued use of the book room.  There was full Council support and comments regarding individual outreach out to County representatives. 

11.

ADJOURNMENT

The meeting adjourned at 9:36 p.m.