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Home My WebLink AboutResolution 01-05 to 46-05C RESOLUTIONS 2005 NO. TITLE ADOPTED 44-05 RESOLUTION APPROVING AND AUTHORIZING THE EXECUTION OF AN AGREEMENT TO LEASE AND AGREEMENT REGARDING POWER PLANT MODERNIZATION AND OUTFALL LEASE BETWEEN THE CITY OF MORRO BAY AND DUKE ENERGY MORRO BAY LLC 11-14-05 45-05 RESOLUTION APPROVING AMENDMENT #1 TO THE LEASE AGREEMENT FOR LEASE SITE 89/89W, LOCATED AT 845 EMBARCADERO; AND AMENDMENT #1 TO THE LEASE AGREEMENT FOR LEASE SITE 90/90W LOCATED AT 875 EMBARCADERO 12-12-05 46-05 RESOLUTION APPROVING ASSIGNMENT OF LEASE AGREEMENT FOR LEASE SITE 89/89W LOCATED AT 845 EMBARCADERO 12-12-05 RESOLUTIONS 2005 NO. TITLE ADOPTED 35-05 RESOLUTION APPROVING SUBLEASE AGREEMENT FOR A PORTION OF LEASE SITE 124-127/124W-127W (VIRG'S FISH'N) 09-12-05 36-05 RESOLUTION APPROVING ASSIGNMENT OF ONE-THHtD INTEREST IN THE LEASE AGREEMENT FOR LEASE SITE 53-56/ 53W-56W LOCATED AT 501 EMBARCADERO 9-26-05 37-05 RESOLUTION AMENDING THE PARHING IN -LIEU FEE AND DESIGNATING AND APPROPRIATING MONIES FROM THE PARHING IN -LIEU FUND 9-26-05 ® 38-05 RESOLUTION ESTABLISHING LOCAL SUPPORT FOR THE DISASTER RESPONSE EFFORTS IN THE HURRICANE -RAVAGED AREA OF THE GULF COAST 9-26-05 39-05 VOID 40-05 VOID 41-05 RESOLUTION APPROVING ASSIGNMENT OF LEASE AGREEMENT FOR LEASE SITE 96/96W LOCATED AT 945 EMBARCADERO 10-24-05 42-05 RESOLUTION AMENDING COUNCIL POLICIES AND PROCEDURES MANUAL SECTION 4.5 (ELECTRONIC MAIL - EMAIL, THE PUBLIC RECORDS ACT AND THE BROWN ACT) 11-14-05 43-05 RESOLUTION AUTHORIZING SUBMISSION OF APPLICATION TO THE RURAL TRANSIT FUND GRANT PROGRAM 11-14-05 of ® RESOLUTIONS 2005 NO. TITLE ADOPTED 27-05 RESOLUTION DIRECTING THE LEVY OF THE ANNUAL ASSESSMENT FOR THE CLOISTERS LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT 06-27-05 28-05 RESOLUTION DIRECTING THE LEVY OF THE ANNUAL ASSESSMENT FOR THE NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT 06-27-05 29-05 RESOLUTION ADOPTING THE OPERATING BUDGETS AND MAKING APPROPRIATIONS ® FOR FISCAL YEAR 2005-2006 06-27-05 30-05 RESOLUTION OF INTENTION TO SELL CITY -OWNED REAL PROPERTY LOCATED AT CORAL/SAN JACINTO STREET, LOT 124, TRACT 1"6 07-11-05 31-05 RESOLUTION AND EASEMENT AGREEMENT GRANTING TO 460 CHORRO CREEK ROAD A 4-FOOT ACCESS EASEMENT FROM CHORRO CREEK ROAD UPON CITY -OWNED PROPERTY 08-08-05 32-05 RESOLUTION ESTABLISHING APPROPRIATIONS LIMIT FOR FISCAL YEAR 2005-2006 09-12-05 33-05 RESOLUTION ACCEPTING $100,000 FROM THE STATE OF CALIFORNIA CITIZENS OPTION FOR PUBLIC SAFETY (COPS) PROGRAM 09-12-05 34-05 RESOLUTION APPROVING A NEW 20-YEAR LEASE AGREEMENT FOR LEASE SITE 110W- 112W AND 20' OF THE EASTERLY PORTION ® OF 111.5W (GAFCO) 09-12-05 RESOLUTIONS 2005 NO. TITLE ADOPTED 20-05 RESOLUTION APPROVING AMENDMENT #1 AUTHORIZING A 10-YEAR EXTENSION TO THE LEASE AGREEMENT FOR. LEASE SITE 37W, ADJACENT TO 261 MAIN STREET 05-09-05 21-05 VOID 22-05 RESOLUTION COMMENDING AND HONORING PERSONNEL OFFICER/RISK MANAGER ARDITH DAVIS ON HER RETIREMENT 05-09-05 23-05 RESOLUTION DECLARING THE CITY'S INTENTION TO LEVY THE ANNUAL ® ASSESSMENT FOR THE MAINTENANCE OF THE CLOISTERS PARK AND OPEN SPACE 05-23-05 24-05 RESOLUTION DECLARING THE CITY'S INTENTION TO LEVY THE ANNUAL ASSESSMENT FOR THE MAINTENANCE OF THE NORTH POINT NATURAL AREA' 05-23-05 25-05 RESOLUTION AMENDING THE MASTER FEE SCHEDULE FOR KITCHEN USE FEES AND APPROVING THE KITCHEN USE POLICY CHANGES 05-23-05 26-05 RESOLUTION ADOPTING AMENDMENTS AND ADDITIONS TO THE CITY'S PERSONNEL RULES AND REGULATIONS AND RESCINDING RULES AND REGULATIONS IN CONFLICT THEREWITH LAYOFF AND SENIORITY 06-13-05 ® RESOLUTIONS 2005 NO. TITLE ADOPTED 14-05 RESOLUTION APPROVING ASSIGNMENT OF LEASE AGREEMENT FOR LEASE SITE 52/52W LOCATED AT 495 EMBARCADERO FROM ASSOCIATED PACIFIC CONSTRUCTORS, INC. REG WHIBLEY AS SOLE OWNER TO PAUL GILLEN AS SOLE OWNER 04-I1-05 15-05 RESOLUTION INITIATING PROCEEDINGS TO LEVY THE ANNUAL ASSESSMENT FOR CLOISTERS LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT 04-25-05 16-05 RESOLUTION INITIATING PROCEEDINGS TO ® LEVY THE ANNUAL ASSESSMENT FOR THE NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT 04-25-05 17-05 RESOLUTION APPROVING A ONE-YEAR LEASE WITH THE MORRO BAY COMMERCIAL FISHERMAN'S ORGANIZATION FOR LEASE SITE 130W-133W LOCATED AT 1231 EMBARCADERO 04-25-05 18-05 RESOLUTION ADOPTING CHANGES TO THE MORRO BAY MASTER FEE SCHEDULE (PUBLIC SERVICES FEES) 04-25-05 19-05 RESOLUTION APPROVING A 10-YEAR LEASE AGREEMENT FOR MOORING ZONE A14 LOCATED OFF -SHORE OF LEASE SITE 71-74/71W-74W AT 699 EMBARCADERO 05-09-05 11 ® RESOLUTIONS 2005 NO. TITLE ADOPTED 08-05 RESOLUTION APPROVING AN APPLICATION AND CONTRACT EXECUTION FOR FUNDING FROM THE GENERAL/NATIVE AMERICAN ALLOCATION OF THE STATE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM AND COMMITMENT OF FUNDS AND AUTHORIZING THE EXECUTION OF A GRANT AGREEMENT AND ANY AMENDMENTS WITH THE STATE OF CALIFORNIA FOR THE PURPOSES OF THIS GRANT 03-14-05 09-05 RESOLUTION APPROVING A SUBLEASE AGREEMENT FOR A PORTION OF LEASE SITE 67/67W LOCATED AT 575 EMBARCADERO BETWEEN YNEZ VIOLE-O'NEILL AND ® ROBERT AND DEBORAH BAIRD 03-14-05 10-05 RESOLUTION ADOPTING THE POLICE DEPARTMENT'S RECOMMENDED FEE AND PARKING FINS ADJUSTMENTS 03-14-05 11-05 RESOLUTION AMENDING THE OPERATING AND CAPITAL IMPROVEMENT BUDGETS AND MAKING SUPPLEMENTAL APPROPRIATIONS FOR FISCAL YEAR 2004-05 03-28-05 12-05 RESOLUTION ADOPTING AN AMENDMENT TO THE MASTER FEE SCHEDULE FOR HARBOR DEPARTMENT FEES AND SERVICES CHARGES O4-11-05 13-05 RESOLUTION ACCEPTING THE FINAL MAP FOR AN APPROVED FIVE -LOT RESIDENTIAL SUBDIVISION KNOWN AS TRACT 2677 04-11-05 11 RESOLUTIONS 2005 NO. TITLE ADOPTED 01-05 RESOLUTION ADOPTING THE CITY INVESTMENT POLICY AND DELEGATING AUTHORITY TO THE CITY TREASURER TO INVEST IDLE FUNDS 01-10-05 02-05 RESOLUTION APPROVING THE PROPOSED BUDGET CALENDAR FOR FISCAL YEAR 2005- 2006 THROUGH 2O06-2007 AND RESCINDING RESOLUTION NO. 59-96 AND MODIFYING RESOLUTION NO.42-04 TO FACILITATE BUDGETARY ACCURACY 01-10-05 03-05 RESOLUTION APPROVING THE CITY'S PROGRAM INCOME REUSE PLAN FOR COMMUNITY DEVELOPMENT BLOCK ® GRANT FUNDS 01-24-05 04-05 RESOLUTION APPROVING MORRO BAY GARBAGE SERVICE BASE YEAR RATE ADJUSTMENT APPLICATION REQUESTING AN INCREASE TO SOLID WASTE COLLECTION RATES 01-24-05 05-05 RESOLUTION AUTHORIZING AND DIRECTING THE INSTALLATION OF STOP SIGNS ON ESTERO AND FRESNO AVENUES AT THE ANCHOR STREET INTERSECTION 01-24-05 06-05 RESOLUTION APPROVING SUBLEASE AGREEMENT FOR A PORTION OF LEASE SITE 86/86W LOCATED AT 801 EMBARCADERO 02-28-05 07-05 RESOLUTION ADOPTING THE RECREATION & PARKS COST OF SERVICES STUDY AND AMENDMENT TO THE MASTER FEE SCHEDULE FOR FACILITY RENTAL FEES 02-28-05 `J ® RESOLUTION NO.46-05 APPROVAL OF ASSIGNMENT OF THE LEASE AGREEMENT FOR LEASE SITE 89/89W, LOCATED AT 845 EMBARCADERO, FROM JOSEF STEINMANN TO JIM SMITH AND CLIFF BRANCH THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay is the lessor of certain property on the Mono Bay waterfront described as Lease Site 89/89W; and, WHEREAS, the Josef Steinmann is the lessee of said property; and, WHEREAS, Mr. Steinmann has requested approval of assignment of the lease agreement for Lease Site 89/89W to Jim Smith and Cliff. Branch; and, WHEREAS, the Mr. Steinmann has completed the assignment application form, paid the assignment fee and the lessee is in compliance with the terms of the lease agreement; and, WHEREAS, the City cannot unreasonably withhold assignment approval. ® NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that the lease agreement for Lease Site 89/89W is hereby assigned from Josef Steinmann to Jim Smith and Cliff Branch, and that the Mayor is hereby authorized to execute the assignment and assumption documents. BE IT FURTHER RESOLVED that this approval of assignment is conditional upon the City Attorney's receipt and approval of the assignment and assumption document by February 12, 2006. Failure to obtain the City Attorney's approval of said final assignment and assumption document by February 12, 2006 will make this approval and resolution null and void. PASSED AND ADOPTED by the City Council of the City of Mono Bay at a regular meeting held thereof on the lfh day of December 2005 by the following vote: AYES: Baxley, DeMeritt, Peirce, Peters, Winholtz I12wre . Zror : 11 ® RESOLUTION NO.45-05 APPROVAL OF AMENDMENT #1 TO THE LEASE AGREEMENT FOR LEASE SITE 89/89W, LOCATED AT 845 EMBARCADERO; AND AMENDMENT #1 TO THE LEASE AGREEMENT FOR LEASE SITE 90/90W, LOCATED AT 875 EMBARCADERO THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay is the lessor of certain property on the Morro Bay waterfront described as Lease Site 89/89W and Lease Site 90/90W; and, WHEREAS, the Tenant on Lease Site 90/90W desires to construct slips and public boardwalk improvements on the site; and, WHEREAS, the slip to be constructed on Lease Site 90/90W will be accessible only through the gangway on a separate Lease Site 89/89W; and, WHEREAS, the Lease for Lease Site 89/89W requires some percentage of the gross leaseable square footage of the site/building be marine related use. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that the Amendment #1 to the Lease Agreement for Lease Site 89/89W and ® Amendment #1 to the Lease Agreement for Lease Site 90/90W are hereby approved, and that the Mayor is hereby authorized to execute the attached Amendments; and, BE IT FURTHER RESOLVED that the City Council finds that the boat slips constructed on Lease Site 89/89W meet the use permit and lease requirements for marine related uses on the site. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting held thereof on the 12 day of December, 2005, by the following vote: AYES: Baxley, DeMeritt, Peirce, Peters, Winholtz NOES: None ABSENT: None AMENDMENT #1 TO THE LEASE AGREEMENT FOR LEASE SITE 89/89W ® This amendment is made and entered into as of this _ day of by and between the City of Morro Bay, a municipal corporation of the state of California, (hereinafter "City") and Josef Steinmann as an individual (hereinafter "Tenant") to amend that certain ground lease for Lease Site 89/89W between City and Tenant dated November 19, 2001. Whereas, City and Josef Steinmann entered into a 40 year lease agreement for Lease Site 89/89W on November 19, 2001, and; Whereas on February 11, 2002, the City Council authorized a consent of landlord to a deed of trust agreement for the lease with Mid State Bank, and; Whereas Josef Steinmann (Tenant) has received City Council concept plan approval of CUP 28-02 to construct a deck to establish lateral public access across Lease Site 90/90W and to construct a dock in front of Lease Site 90/90W that will only have access from Lease Site 89/89W. NOW THEREFORE, Tenant and City mutually agree to amend said lease as follows: Tenant and his successors or Assignees agree to at all times, and under any conditions and without exceptions, allow and permit business/customer and slip user access to the dock to be constructed on Lease Site 90/90W through the gangway on and connected to Lease Site ® 89/89W and business/customer access through operational doorway from Lease Site 90/90W to 89/89W. All other terms and conditions of the Lease shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto hereby execute this amendment. CITY OF MORRO BAY APPROVED AS TO FORM ROBERT SCHULTZ, CI TTORNEY ATTEST: BRIDGE TtAUER, CITY CLERK TENANT—JOSEF STEINMAN N 4L A JOSEF S)TEINMANN r AMENDMENT #1 TO THE LEASE AGREEMENT FOR ® LEASE SITE 90/90W This amendment is made and entered into as of this day of by and between the City of Morro Bay, a municipal corporation of the state of California, (hereinafter "City") and Josef Steinmann as an individual (hereinafter "Tenant") to amend that certain ground lease for Lease Site 90/90W between City and Tenant dated June 22, 1993. Whereas, City and Sophie Hill/Joanne Shiflett entered into a 35 year lease agreement for Lease Site 90/90W on June 22, 1993, and; Whereas, the improvements on the site were reconstructed, and on May 29, 2001 the City Council authorized assignment of the. lease agreement from Hill/Shiflett to Josef Steinmann, and; Whereas Josef Steinmann (Tenant) has received City Council concept plan approval of CUP 28-02 to construct a deck to establish lateral public access across the lease site to repair the westward foundation of the existing deck/building improvements and to construct an approximately 50-foot side tie dock, and; Whereas Tenant's lease for Lease Site 90/90W currently contains a termination date of June 30, 2028; and, Whereas it is in City and Tenant's interest to complete the work outlined in CUP 28-02 and CDP 3-93-017-A2 and to extend the Tenant's lease terms so that Tenant may obtain new financing ® for the improvements. NOW THEREFORE, Tenant and City mutually agree to amend said lease as follows: Section 1.01 TERM: Shall be amended to make a new lease termination'date of September 30, 2040. Section 13.02 CONSTRUCTION OF IMPROVEMENTS: Shall be amended to add the following: City and Tenant agree that in consideration of extension of the term of this lease, Tenant will construct improvements to the premises as outlined in City CUP 28-02 approved in concept by the City Council on January 26, 2004 and as approved and modified by the California Coastal Commission as outlined in CDP 3-93-017-A2, and that failure to complete such improvements as outlined below and in compliance with all conditions of said CUP 28-02 and CDP 3-93-017-A2 as finally approved in precise plan/building permit by December 30, 2006, shall be a default of this lease agreement and subject this agreement to all remedies provided for in article 11 hereof, including termination of the lease agreement. Tenant acknowledges that final approval of said CUP 28-02 requires obtaining a city precise plan and building permit and any and all other permits which are the Tenant's obligation and that Tenant is singularly responsible for processing these required permits through to final approval in the provided for timeframes and for meeting all conditions of these permits. City shall have no special obligation, responsibility or liability in processing these permits, and Tenant acknowledges that said CUP may require review and revision by City building official and engineer for issuance of a final building permit, and Tenant agrees to meet any conditions or revisions required by City for issuance of building permit and or final certificate of occupancy. �1 J LEASE SITE 90/901V— AMENDAIENT 9/ Page 2 Tenant -agrees to obtain the building permit and commence construction of the improvements outlined in CUP 28-02 by March 1, 2006, and to complete the improvements in compliance with CUP 28-02 as evidence by issuance of a certificate of occupancy by December 30, 2006. Failure to meet these deadlines will result in a default as stated above and/or the City shall have the option of assessing a $500.00 per month penalty. For example, if Tenant does not obtain the certificate of occupancy until March 30, 2007, the City may assess and have a right to collect $1500.00 in penalties. All other conditions for construction of improvements in the original lease shall remain in effect. All other terms and conditions of the Lease shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto hereby execute this amendment. CITY OF MORRO BAY TENANT — JOSEF. STEINMANN /) c2D JANiC£ PETERS, M OR JOSEF STEINMANN i APPROVED AS TO FORM 6_t as i` ROBERT SCHULTZ, CI Y ORNEY ATTEST: 11 L] RESOLUTION NO.44-05 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY APPROVING AND AUTHORIZING THE EXECUTION OF AN AGREEMENT TO LEASE AND AGREEMENT REGARDING POWER PLANT MODERNIZATION AND OUTFALL LEASE BETWEEN THE CITY OF MORRO BAY AND DUKE ENERGY MORRO BAY LLC The City Council, City of Morro Bay, California WHEREAS, On October 23, 2000, Duke Energy Morro Bay LLC filed an Application for Certification seeking approval from the California Energy Commission to construct and operate a 1200 MW natural-gas fired, combined cycle, combustion turbine Morro Bay Power Plant Project; and WHEREAS, pursuant to California Public Resources Code, §§ 25519 (c), 21000 et seq. the California Energy Commission (CEC) is Lead Agency for the purposes of environmental review under the California Environmental Quality Act of 1970 (CEQA") for the Project; and ® WHEREAS, pursuant to California Public Resources Code, § 21080.5 the CEC's process and associated documents are functionally equivalent to the traditional Environmental Impact Report process; and WHEREAS, pursuant to CEQA Guidelines sections 15052 and 15096 the City of Morro Bay is required to rely on the Lead Agency's environmental document in acting on whatever aspect of the project requires its approval, unless the City chooses to challenge the adequacy of the EIR; and WHEREAS, the City of Morro Bay leases to Duke property on which is located an off -site outfall structure used for the discharge of the heated water from the Morro Bay Power Plant; and WHEREAS, the Existing Outfall Lease expired on November 15, 2004 and Staff has negotiated a new Outfall Lease Agreement and is presenting the Agreement to Lease and Outfall Lease to Council for approval and execution; and WHEREAS, the California Energy Commission determined that the project will cause no increase in thermal discharge and the project will not result in any significant detrimental biological impacts caused by the outfall discharge; and WHEREAS, the California Energy Commission determined that thermal impacts from the modernization of the Morro Bay Power Plant will not be significant pursuant to 40 the Clean Water Act and will also comply with the California Thermal Plan; and WHEREAS, the California Energy Commission determined that The Morro Bay Power Plant Project will provide local economic benefits and electricity reliability to the `!! San Luis Obispo County area; and WHEREAS, the California Energy Commission determined that The Conditions of Certification ensure that the project will be designed, sited, and operated in conformity with applicable local, regional, state, and federal laws, ordinances, regulations, and standards, including applicable public health and safety standards, and air and water quality standards; and WHEREAS, the California Energy Commission determined that the Conditions of Certification will ensure protection of environmental quality and assure reasonably safe and reliable operation of the facility. The Conditions of Certification also assure that the project will neither result in, nor contribute substantially to, any significant direct, indirect, or cumulative adverse environmental impacts; and WHEREAS, the California Energy Commission determined that the evidence of record establishes that no feasible alternatives to the project, as described during these proceedings, exist which would reduce or eliminate any significant environmental impacts of the mitigated project; and WHEREAS, the California Energy Commission determined that the proceedings leading to this Decision have been conducted in conformity with the applicable ® provisions of Commission regulations governing the consideration of an Application for Certification and thereby meet the requirements of Public Resources Code sections 21000 et seq. and 25500 et seq.; and WHEREAS, the Council of the City of Morro Bay finds that the requirements of CEQA, the Environmental Impact Report process, and the CEQA Guidelines as prescribed by the Secretary for Resources, have been satisfied by the CEC's process and associated documents and adopts the findings set forth in the California Energy Commission's decision; and WHEREAS, the Council of the City of Morro Bay finds that the approval of the Agreement to Lease and Outfall Lease is exempt from review under CEQA because it involves the lease and minor alteration of existing facilities as described in State CEQA Guidelines Section 15301 and is exempt under Class 1, Existing Facilities; Title 2, California Code of Regulations, section 2905 (a)(2). NOW, THEREFORE, BE IT RESOLVED that the Council of the City of Mono Bay authorizes and directs the Mayor to enter into the Agreement to Lease and Outfall Lease in the form attached hereto and to accept, on behalf of the City of Mono Bay, deeds to the parcels of real property to be acquired by the City under the Agreement to Lease and to execute, on behalf of the City, such additional documents, as may be needed to complete the transactions set forth in the Agreement to Lease and the Outfall Lease. 9 ® PASSED AND ADOPTED by the City Council, City of Morro Bay at a regular meeting thereof held on the 14th day of November 2005, by the following vote: AYES: Baxley, Peirce, Peters NOES: DeMeritt, Winholtz ABSENT: None ABSTAIN: None ATTEST: za BRIDGE AUER, CITY CLERK Ll RESOLUTION NO.43-05 A RESOLUTION AUTHORIZING SUBMISSION OF APPLICATION TO THE RURAL TRANSIT FUND GRANT PROGRAM THE CITY COUNCIL City of Morro Bay, California WHEREAS, the San Luis Obispo Council of Governments (SLOCOG) annually adopts the Federal Transit Administration (FTA) Section 5311 formula funds Program of Projects (POP); and WHEREAS, SLOCOG began the Rural Transit Fund (RTF) program with Resolution 02-16 on December 5, 2002 by programming FTA Section 5311 funds to the Regional Transit Authority (RTA); and WHEREAS, RTA has agreed to use these Federal funds for operating support and SLOCOG has agreed to exchange a similar amount of TDA funds for use in the RTF program; and WHEREAS, SLOCOG, RTA, and other rural transit operators worked together to develop a process to exchange FTA Section 5311 formula funds with Transportation Development Act (TDA) funds to create the Rural Transit Fund, including Policies and Procedures to govern the RTF program; and WHEREAS, the Policies and Procedures developed ensure that all funds will be used solely for rural transit projects consistent with the original intent of the FTA Section 5311 program, which is to maintain a reliable funding source for transit capital in the non -urbanized areas of San Luis Obispo county; and WHEREAS, there is $217,744 available for competitive distribution and project applications for the 2006/2007 RTF cycle are due December 1, 2005; and isWHEREAS, the City was awarded a 2005/2006 cycle RTF grant for 80% ($44,000) of the cost to purchase a replacement dial -a -ride vehicle; and WHEREAS, the City does not have local funds available for the remaining 20% ($11,000) needed for the vehicle purchase; and WHEREAS, the City intends to apply for a second RTF grant in the amount of $11,000 and, if awarded, would use both grants to purchase a replacement dial -a -ride vehicle. NOW, THEREFORE, BE IT RESOLVED that the Morro Bay City Council authorizes the City Manager to submit an application to the Rural Transit Fund requesting a grant of $11,000 that would be combined with the previously awarded $44,000 grant for the purchase a replacement dial -a -ride vehicle. PASSED AND ADOPTED by the Morro Bay City Council at a regular meeting thereof held on the 14'" day of November 2005 by the following vote: AYES: Baxley, DeMeritt, Peirce, Peters, Winholtz NOES: None ABSENT: None iuQ& J E PETS, S, Mayor ATTEST: El RESOLUTION NO.42-05 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY AMENDING COUNCIL POLICIES AND PROCEDURES MANUAL SECTION 4.5 WHEREAS, the Council Policies and Procedures Manual for the City of Morro Bay is a combination of City Council actions, policies, references, and information regarding the City Council and City Employees; and WHEREAS, to ensure that all Council members and City Employees are familiar with and understand the City of Morro Bay's philosophies and policies, the City of Morro Bay adopted Resolution 46-02 and its Council Policies and Procedures Manual on August 12, 2002; and WHEREAS, the City desires to amend Section 4.5 of the Council Policies and Procedures Manual, to help avoid disputes over whether City emails are subject to disclosure, as follows: 4.5 ELECTRONIC MAIL (EMAIL), THE PUBLIC RECORDS ® ACT AND THE BROWN ACT City email is no less a part of "official city business" than any other written correspondence, and there is no expectation of privacy for city email messages. Good judgment and common sense should therefore prevail at all times regarding its appropriate use. City email is subject to the requirements of the Brown Act. While the Brown Act does not prohibit the use of email to make individual contacts between Members of the Council, or the public or staff, great care should be taken to avoid the use of email to contact a majority of the Council, either individually or serially, "in a connected plan to engage in collective deliberation on public business." City email should not be used in any case where a record of any event, occurrence or statement is required or intended to be retained by the City in the ordinary course of business. City emails is intended to fulfill the same General function as ordinary daily . verbal communications among City staff and is considered "transitory" documents (work -in -progress), and therefore are not is suNect to records retention requirements. For file management and Pagel of 3 storage purposes, City email messages should only be retained for ® as long as needed. In most instances this means deleting messages as you have read them, and shortly after you have sent them. If an email message, including any attachments thereto, is considered an official city record, such emails should be printed as a hard copy and filed in accordance with the city's records retention policy. Generally, the sender of the email should be the person responsible for printing and filing it accordingly, but persons responsible for a particular program or project file shall be responsible for retaining all e-mail they send or receive related to that program or project. It is the responsibility of individual employees and their department heads to determine if email is an official city record that must be retained in accordance with the city's record retention policy. The city attorney will assist you in making such a determination. You should keep in mind, however, that preliminary drafts, notes or interagency or intra-agency memoranda that are not retained by the city in the ordinary course of business are generally not considered to be official city records subiect to disclosure. Employees are encouraged to delete documents that are not otherwise required to be kept by law or ® whose preservation is not necessary or convenient to the discharge of your duties or the conduct of the city's business. Periodically, the city receives requests for inspection or production of documents pursuant to the Public Records Act, as well as demands by subpoena or court order for such documents. In the event such a request or demand is made for e-mail, the employees having control over such e-mail, once they become aware of the request or demand, shall use their best efforts, by any reasonable means available, to temporarily preserve any e-mail that is in existence until it is determined whether such e-mail is subject to preservation, public inspection or disclosure. The city clerk shall be contacted regarding any such entails within the employee's control The City does not provide Council Members with a City email address or computer. Therefore, the computers and email address are the personal property of each Councilmember. As such, all email communications and information on a Council members computer shall not be considered public records nor suubiect to the Public Records Act. Page 2 of 3 ® NOW, THEREFORE, be it resolved that the City Council of the City of Morro Bay does hereby amend Sections 4.5 of the Council Policies and Procedures Manual to reflect the above amendments. PASSED AND ADOPTED by the City Council, City of Morro Bay at a regular meeting thereof held on the 14th day of November 2005 by the following vote: AYES: NOES: ABSENT: Baxley, DeMeritt, Peirce, Peters, Winholtz None None ABSTAIN: None ATTEST: 61 BRIDGE AVER, CITY CLERK E Page 3 of 3 RESOLUTION NO. 41-05 ® APPROVAL OF ASSIGNMENT OF THE LEASE AGREEMENT FOR LEASE SITE 96/96W, LOCATED AT 945 EMBARCADERO, FROM URSULA AND LARRY DAVIS TO DANIELLE MANDELLA THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay is the lessor of certain property on the Morro Bay waterfront described as Lease Site 96/96W; and, WHEREAS, Ursula and Larry Davis are the lessees of said property; and, WHEREAS, Ursula and Larry Davis have requested City Council approval of assignment the lease agreement for Lease Site 96/96W from Ursula and Larry Davis to Danielle Mandella; and, WHEREAS, the Davis' have completed the assignment application form, paid the assignment fee and the required assignment and assumption document has been approved by the City Attorney for review; and, WHEREAS, the City cannot unreasonably withhold assignment approval. ® NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that the lease agreement for Lease Site 96/96W is hereby assigned from Ursula and Larry Davis to Danielle Mandella, and that the Mayor is hereby authorized to execute the assignment and assumption documents. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting held thereof on the 24c' day of October 2005, by the following vote: AYES: Baxley, DeMeritt, Peirce, Peters, Winholtz NOES: None ABSENT: None L14�11 51. 1 ffla ®r 0 1 W a 0 C, J ASSIGNMENT AND ASSUMPTION AGREEMENT This assignment is made and entered into this day of , 2005, by and between The Whale's TO, a Restaurant (hereinafter referred to as "Assignor") and Danielle Mandella (hereinafter referred to as "Assignee"). 1. The City Council of Morro Bay has approved lease assignment Assignor hereby assigns all rights, title and interest the have in the lease from the City of Morro Bay, known as Morro Bay Lease Site 96 96W under the Master Lease. 2. Assignee acknowledged that the City of Morro Bay has leased the premises to Assignor under the Master Lease. Assignee acknowledges that any assignment of the Master Lease is subject to prior approval by resolution in the City of Morro Bay City Council and is also subject prior execution between Assignor and Assignee of the contract for Purchase and sale and addendum's thereto, by and between Assignor and Assignee. 3. Assignee agrees to comply with all terms and conditions of the Master Lease and to assume all liabilities required under the Master Lease, to defend, indemnify and hold the City free and harmless, from and against, any and all, claims, lawsuits, costs and expenses, including reasonable attorney's fees and court costs arising from, or in any Bray related to, holding, using or operating the leased premises and further agrees to maintain liability insurance in the manner, form and amount required by Master Lease %ith the City included as an additional insured without the offset against the City's insurance. 4. Assignor and Assignee are both aware that there is currently pending air A.D.A. lawsuit concerning lease site 96 / 96CV. Both Assignor and Assignee agree to indemnify and hold harridess the City of Dlorro Bay and such lawsuit shall not be used as a defense for nonperformance of the Master Lease. Assignor confirms to the City that he has not actual knowledge or reasonable cause to believe that any release of hazardous substance has come to be located on/or beneath the real property dw ing the tern of Assignor's occupation of the lease that has not been reported pursuant to Health ik Safety code #253597. Dated: /d13 IU The Whale's Tail nnRes Restaurant By:-Dt �Qt'(,gwlx Darnielle .Nlandella, Assignee Consent to Assignment R Assumptions of all liabilities under the Lease Agreement Dated: (-V 3 Lo 6— G2v.: -LI �I , 7 The City of Morro Bay, Lessor named in the Master Lease, consents to the Assignment upon the conditions set forth above. The City also consents to the agreement by Assignee to assume after the payment of rent and performance of all duties and obligations including all percentage of gross sales rent as set forth in the Master Lease which has been approved by Morro Bay City Council prior to this agreement. ® RESOLUTION NO.38-05 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY ESTABLISHING LOCAL SUPPORT FOR THE DISASTER RESPONSE EFFORTS IN THE HURRICANE -RAVAGED AREA OF THE GULF COAST. THE CITY OF MORRO BAY Morro Bay, California WHEREAS, Hurricane Katrina was one of the worst natural disasters in United States history; and WHEREAS, Federal disaster declarations made in days following Hurricane Katrina covered 90,000 square miles, from New Orleans, Louisiana to Mobile, Alabama, and have since spread to include numerous States accepting hurricane victims; and WHEREAS, the heroic efforts of local police and fire personnel and other men and women in uniform saved thousands of lives and brought much -needed medical supplies, food and water to the region; and WHEREAS, the City of Mono Bay is subject to several kinds of catastrophic natural disasters, including but not limited to earthquakes, floods, landslides and fires; and ® WHEREAS, the response to such disasters would exceed Morro Bay's available resources because of the magnitude of the event and the expense of the personnel, equipment and funding necessary to effectively respond to a catastrophic event; and WHEREAS, because of these challenges, Morro Bay has developed a tradition of mutual aid to other local governments faced with the daunting task of responding to natural disaster;; and WHEREAS, aid can take the form of offers of City personnel, equipment, facilities and/or monetary aid, depending on the needs of affected cities; and WHEREAS, such aid is founded on an ethos of reciprocity that such aid may be offered should the City of Morro Bay find itself in need of assistance at some point in the future; and WHEREAS, the deployment of city personnel to assist other local agencies in responding to a disaster provides valuable experience and insights into how to be of service in the City of Morro Bay in the event of an emergency; and WHEREAS, the community of the City of Morro Bay desires to actively support both short-term disaster response operations and longer -term recovery operations in the ® area affected by Hurricane Katrina. 11 E Resolution No. 38-05 Page Two NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Morro Bay hereby calls upon its employees, citizens, and organizations alike to join in supporting the disaster response efforts in the hurricane -ravaged area of the gulf coast and also authorizes City Staff to waive any City program fees for those that volunteer in the relief effort. BE IT FURTHER RESOLVED, that the City Council of the City of Morro Bay hereby authorizes and appropriates $500 from the Council Contingency Fund to help pay for the costs to ship over 200 T-Shirts . and 100 pants to the New Orleans Police Department as police uniforms. BE IT FURTHER RESOLVED, that the City Council of the City of Morro Bay hereby urges the appropriate city departments —including Fire and Police --to coordinate with the Federal Emergency Management Agency and the American Red Cross in regard to relief efforts in the hurricane -ravaged area of the gulf coast. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting held thereof this 26th day of September 2005 by the following roll call vote: AYES: BAXLEY, DEMERITT, PEIRCE, PETERS NOES: NONE ABSENT: NONE ATTEST: 191413 NEC 73101 LS45 I IVA" R My ® RESOLUTION NO.37-05 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY AMENDING THE PARKING IN -LIEU FEE AND DESIGNATING AND APPROPRIATING MONIES FROM THE PARKING IN -LIEU FUND THE CITY OF MORRO BAY Morro Bay, California WHEREAS, In -Lieu Parking Fees were established, codified as Morro Bay Municipal Code Section 17.44.020A.7, as a means through which public parking can be provided where it is unfeasible to provide such parking as part of on -site development projects; and WHEREAS, Morro Bay Municipal Code Section 17.44.020A.7.b states that monies accumulated in the Parking In -Lieu Fund shall be used for planning, design, acquisition or lease of land and development/redevelopment of public parking facilities; and WHEREAS, Morro Bay Municipal Code Section 17.44.020A.7.f authorizes the establishment of Parking In -Lieu Fees by Resolution of the Council; and WHEREAS, during budget hearings in May and June 2005, the City Council appropriated Parking In -Lieu fees to lease the parking lot at 714 Embarcadero, $80,000 per year; ® and WHEREAS, on September 12, 2005, the City Council held a public hearing regarding preparing a comprehensive Parking Management Plan and modifying the Parking In -Lieu Fee; and WHEREAS, the City Council has considered the information provided to it by those testifying and has reviewed and considered the information provided in the staff report and staff presentation and has read and considered all of the documentation related to Parking In -Lieu Fees. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Morro Bay, in compliance with policy number 2.08 of the Land Use Plan of the Local Coastal Plan, and Ordinance No. 337, that the City Council does hereby consider and estimate an amount necessary to provide parking, including planning, design, land acquisition or lease and construction of improvements; and determines that the Parking In -Lieu Fee is hereby amended from $4,000 per parking space to $15,000 per parking space. BE IT FURTHER RESOLVED, by the City Council of the City of Morro Bay, that $80,000.00 is hereby appropriated from the Parking In -Lieu Fund to lease the property at 714 Embarcadero, Morro Bay, California. 11 ® Resolution No. 37-05 Page Two BE IT FURTHER RESOLVED, by the City Council of the City of Morro Bay, that preparing and adopting a comprehensive Parking Management Plan is hereby designated as a project for use of In -Lieu Parking Fee funds. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting held thereof this 26th day of September 2005 by the following roll call vote: AYES: BAXLEY, PETERS, WINHOLTZ NOES: DEMERITT, PEIRCE ABSENT: NONE ATTEST: BRIDG:� ►r,A.9City Clerk 11 Ll 1] J RESOLUTION NO. 36-05 APPROVAL OF ASSIGNMENT OF ONE-THIRD INTEREST IN THE LEASE AGREEMENT FOR LEASE SITE 53-56/53W-56W (LOCATED AT 501 EMBARCADERO) FROM BRETT CUNNINGHAM TO KEN SCOTT THE CITY COUNCIL City of Morro Bay; California WHEREAS, the City of Morro Bay is the lessor of certain property on the Morro Bay waterfront described as Lease Site 53-56/53W-56W; and, WHEREAS, Estero Landing, Inc. is the lessee of said property; and, WHEREAS, Estero Landing, Inc. has requested City Council approval of assignment of one-third interest in the lease agreement for Lease Site 53-56/53 W-56W from Brett Cunningham to Ken Scoot; and, WHEREAS, Estero Landing, Inc. has completed the assignment application form, paid the assignment fee and the required assignment and assumption document has been approved by the City Attorney for review; and, WHEREAS, the City cannot unreasonably withhold assignment approval. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that a one-third interest in the lease agreement for Lease Site 53-56/53 W-56W is hereby assigned from Brett Cunningham to Ken Scott of Estero Landing, Inc. and that the Mayor is hereby authorized to execute the assignment and assumption documents. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting held thereof on the 26d' day of September 2005, by the following vote: AYES: Baxley, DeMeritt, Peirce, Peters, Winholtz NOES: None ABSENT: None M&&q9LL4_WN,AtJ9R, CITY CLERK EXHIBIT "B" ASSIGNMENT AND ASSUMPTION AGREEMENT This assignment is made and entered into this 3 V day of August, 2005, by and between Brett Cunningham, former 1/3 interest owner in Estero Landing Inc., a California corporation (hereafter referred to as "Assignor") and Ken G. Scott, 2/3 interest in Estero Landing Inc., a California corporation and Frank Loving 1/3 interest in Estero Landing, Inc., a California corporation (hereafter referred to as "Assignee") l . Subject to and expressly contingent upon the approval of the City of Morro Bay and or any other governmental entities or districts with jurisdiction thereof, and subject to Assignor's continuing security interests and/or repossession remedies in the event of an uncured default by Assignee, Assignor hereby assigns all his rights, title and 1/3 interest in that certain lease agreement from the City of Morro Bay, for the property generally known as the Tidelands Lease Sites 53,54,55,56,53 W,54W,55W, and 56W (hereafter the "Premises") commencing August 31, 2005, and continuing to February 28,2021 unless earlier terminated by its terms or operation of law (hereafter the "Master Lease") Upon ® completion of assignment, Estero Landing Inc., a California Corporation will be held by 2/3 interest Ken G. Scott and 1/3 interest Frank Loving. 2. Assignee acknowledges that the City of Morro Bay has leased the Premises to Assignor under the Master Lease. Assignee acknowledges that any assignment of the Master Lease is subject to prior approval by resolution of the City of Morro Bay City Council, and is also subject to -prior execution between Assignor and Assignee of a Contract for Purchase and Sale and Addendums thereto, by and between Assignor and Assignee. Assignee agrees to comply with all terms and conditions of the Master Lease and to assume all liabilities required under the Master Lease. Assignee further agrees, as required under the Master Lease, to defend, indemnify, and hold the City free and harmless, from and against any and all claims, lawsuits, costs, and expenses, including reasonable attorneys' fees and court costs arising from, or in any way related to, holding, using or operating leased premised and further agrees to maintain liability insurance in the manner, form and amount required by the Master Lease with the City included as an additional insured without offset against the City's insurance. 4. Assignee further agrees to provide to the City of Morro Bay, all documentation required under the Master Lease, with regard to Assignee's operations, to enable the City to determine its portion of the gross sales. ® 5. Assignor confirms to the City that it has no actual knowledge or reasonable cause to believe that any release of hazardous substance has come to be located on or beneath the real property during the term of Assignor's occupation of the lease that would have been reportable. pursuant to Health & Safety Code section 25359.7. SO AGREED - Dated: Dated: — 1 S — 0 6 Dated:_ ASSIGNOR � rett Cunningham Former 1/3 interest owner in Estero Landing Inc, a California corporation ESTERO LANDING, INC., a Cr(Gia •nia corporation By (� Ken G. Scott 2/3 interest owner By (C. Fran ving 1/3 interest owner The City of Morro Bay, Lessor named in the Master I -ease, consents to the above -described Assignment upon the conditions set forth above. The City also consents to the agreement by Assignee to assume as of August 31,2005, the payment of rent and performance of all duties and obligations, including all percentages of gross sales, as set forth in the Master Lease, which has been approved by the Morro Bay City Council prior to this Agreement. Dated_ 3/d /O S CITY 0 MO RO KY Janicy Peters, tayor 11 11 ® RESOLUTION NO.35-05 APPROVAL OF A SUBLEASE AGREEMENT FOR A PORTION OF LEASE SITE 124-127/124W-127W (LOCATED AT 1215 EMBARCADERO) BETWEEN VIRG'S FISH'N, INC. AND LEONARD GENTIEU THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay is the lessor of certain property on the Morro Bay waterfront described as Lease Site 124-127/124W-127W; and, WHEREAS, Virg's Fish'n, Inc. is the lessee of said property; and, WHEREAS, Darby Neil of Virg's Fish'n Inc. has requested City Council approval of a sublease agreement for a portion of Lease Site 124-127/124W-127W between Virg's Fish'n Inc.; and Leonard Gentieu, doing business as Papagallo II Yacht Charter, Inc. . WHEREAS, Virg's Fish'n Inc. has completed the assignment application form, paid the assignment fee and provided background information on the proposed sublessee. The Consent to Sublease agreement has been executed by Mr. Neil and Mr. Gentieu and a copy of the sublease agreement has been provided to the City. ® NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that sublease of a portion of a sublease agreement for a portion of Lease Site 124- 127/124W-127W-56W between Virg's Fish'n Inc.; and Leonard Gentieu, doing business as Papagallo I1 Yacht charter, Inc. is hereby approved and that the Mayor is hereby authorized to execute the Consent to Sublease document. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting held thereof on the 12'h day of September 2005, by the following vote: AYES: Baxley, DeMeritt, Peirce, Peters, Winholtz NOES:. None ABSENT: None Lv k� 5 B. p BAUER, CITY CLERK ® CONSENT TO SUBLEASE AGREEMENT THIS CONSENT TO SUBLEASE AGREEMENT is entered into this STN day of , 2005 by and between V 12 (,, s i = S N ti hereinafter referred to as TENANT, and LCA� eti j l dba, r/ai_tq �s_AL1_0 / hereinafter referred to as SUBTENANT and approved by the City of Morro 8ay, California, hereinafter referred to as CITY. RECITALS 1AP21(_ r1 ) C16 Z WHEREAS, a Master Lease was executed on Jalp36_f99i_ , and; WHEREAS, TENANT desires to sublease a portion of the premises to SUBTENANT, and: WHEREAS, the Master Lease requires CITY consent of any sublease in the following form of agreement. NOW, THEREFORE, IT IS AGREED AS FOLLOWS: Afl?-I(A iyZTENANT's 1. TENANT and SUBTENANT jointly and severally guaranty that T NAill pay to City all of the sums required of TENANT and any sums due by reason of ® activities under the terms of the Master Lease dated 6hereinafter known as Master Lease". In the event TENANT fails to make such payment, SUBTENANrf agrees to promptly make such payment to CITY for TENANT. Failure to pay the rent shall constitute a violation of the Master Lease and CITY shall, after three (3) days written notice to TENANT, have the following options: (a) CITY may elect to pursue all legal remedies against TENANT alone or against both TENANT and SUBTENANT or against SUBTENANT alone. CITY'S election to pursue one instead of both of the parties shall not preclude a later action against the other party to recover any amounts not paid and both TENANT and SUBTENANT agree that they are to be jointly and severally liable for any breach by the SUBTENANT. (b) CITY shall have all other legal remedies provided for in the lease and allowed by law, including the right to bring an action for unlawful detainer against SUBTENANT, TENANT or both for non-payment of rent by TENANT of SUBTENANT'S portion of rent due to CITY. 2. SUBTENANT acknowledges receipt of a complete copy of the Master Lease and all amendments thereto and specifically agrees to comply with each and all of the terms and conditions of the Master Lease. TENANT guarantees SUBTENANT's compliance with each and all of the terms and conditions of the Master Lease, and all of the parties agree that a violation by SUBTENANT of the terms of the Master Lease shall constitute a violation of the Master Lease by TENANT. TENANT agrees to take whatever action is required to secure SUBTENANT's compliance with each and all of the terms of the Master Lease, and agrees to indemnify CITY, as ® Landlord, from any and all claims, loss, cost or expense resulting from SUBTENANT's failure to comply with the terms of the Master Lease. Page 1 of 3 3. -The term of the sublease shall be month to month commencing upon execution of said lease provided, however, that the term of the sublease shall not in any event exceed the terms of the Master Lease and said Sublease shall, in all events, terminate upon termination of the Master Lease for any reason, including, but not limited to, a termination which occurs as a result of court judgment. 4. Pursuant to the provision in the Master Lease requiring TENANT to pay rental based on percentage of gross sales, SUBTENANT agrees to and shall keep full, complete, and accurate records, and books of account in accordance with accepted accounting practices as showing the total amount of gross sales, as defined in the Master Lease, made each calendar month in, on or from the subleased premises. SUBTENANT shall keep said records and books of account within San Luis Obispo County and shall notify CITY in advance of their location at all times. Said records, books of account and all cash register tapes, including any sales tax reports that SUBTENANT may be required to furnish any government or governmental agency, including but not limited to those items listed in Exhibit A attached hereto and incorporated herein, shall at all reasonable times be open to the inspection of TENANT, CITY, CITY'S auditor, or other authorized representative or agent of TENANT or CITY. 5. The proposed use by SUBTENANT is as follows: Retail Gift Sales. Percentage of Gross Rental Applicable to Permitted.Use: 5%. Said designated use shall not be changed without the prior written consent of CITY. SUBTENANT acknowledges that the percentage of gross payment required for the proposed use under the terms of the Master Lease is as set forth hereinabove. SUBTENANT agrees that any use by SUBTENANT of the subleased premises for a purpose other than that specified in this paragraph, whether or not permitted under the terms of the Master Lease, shall constitute an unauthorized use subject to those penalties set forth in the Master Lease. The location and size of the proposed use shall not be altered without the prior written consent of the CITY. Specifically, and in addition to any other terms and provisions of the lease, all parties agree that if SUBTENANT makes a use of the subleased premises which is not included within or permitted under the terms of the Master Lease, TENANT shall be liable for and shall pay to CITY, 10% of the gross revenue from such unpermitted use. 6. SUBTENANT shall not alter or improve the premises or any pan thereof without first obtaining the prior written consent of CITY. . 7. Unless SUBTENANT is included as an additional insured under the terms of TENANT's liability insurance, SUBTENANT agrees to maintain adequate liability insurance in the manner and form required under the Master Lease in an amount of not less than S1,000,000 per occurrence and agrees to name the CITY OF MORRO BAY as an additional primary insured without offset against the CITY's insurance. SUBTENANT agrees to provide the certificates of in and copies of the actual insurance policies to the CITY as required under the Master Lease and otherwise comply with the insurance requirements set forth in the Master Lease. CITY reserves the right to require reasonable increases in the liability insurance coverage from time to time. Page 2 of 3 ® 8. SUBTENANT and TENANT agree to indemnify and save CITY free and harmless from and against any and all claims, including reasonable attorneys fees and court costs arising from SUBTENANT's failure to comply with any of the terms of this Consent and Sublease Agreement. 11 9. This Agreement cannot be modified except by a written document mutually approved by the parties hereto. A waiver of any of the conditions or terms of this Consent or of the Master Lease shall not constitute a waiver of any future breach of any terms or conditions of this Consent or the Master Lease. 10. To the extent that the terms of the proposed Sublease are inconsistent with the terms of this Agreement or Master Lease with the CITY OF MORRO BAY, this Agreement or Master Lease shall supersede and be the controlling document. To the extent that this Consent to Sublease Agreement is inconsistent with the terms of the Master Lease, the Master Lease shall supersede and be the controlling document. IN WITNESS WHEREOF, the parties hereto have executed this Consent to Sublease Agreement as of the day and year first above written at Morro Bay, California. TENANT: SUBTENANT: Page 3 of 3 ® OWNER OPERATOR VESSEL AGREEMENT This Agreement is entered in this day of by and between Virg's Fishin', a California corporation (hereinafter referred to as "Visa's") and (individual, business, or corporation) // RECITALS 110,,,q `wld �Z A. A✓7- rJ %147 CA/ ,0' is the owner of a (individual, business, or corporation) -T/-1f certain vessel called ��,g/�o Ir hereinafter referred to as "said vessel." B. Virg's is an onboard nautical tour company which supplies sundries, booking of reservations, and a landing dock for boats. C. Virg's and 4 - —M— � rr QIlkW desire to enter into (individual, business, or corporation) this Agreement to set forth their respective rights and duties in connection with activiiies ® between Virg's and �/°it �S y9c/tf C7 (individual, business, or corporation) IT IS THEREFORE AGREED: %J 1. Virg's agrees to book reservations, and pen-nit 1l��fFnf ld T�:— to dock their said vessel at Virg's Landing. (individual, business, or corporation) 2. In return for services provided by Virg's, D+x-gm/ �r (individual, business, or corporation) agrees to pay Virg's the following sums: (a) Fifteen percent (15%) of any gross income derived whatsoever from operation of said vessel, excluding bunks and galley, in exchange for Virg's providing booking of reservations for said vessel. (d) Dockage fees to cover utilities and dock maintenance will be charged at S5.25 per foot per month. Calendar month will be prorated to the first and due 9 thereafter on the first of each month. (e) The above p� mpensations are subject to change upon thirty (30) days written notice to &AgA1& --ram by Virg's Fishin'. (individual, business, or corporation) 3. The percentages listed in Paragraph 2 above shall pertain to any and all activities conducted by ®OAQ/t�/ --Z- 7 with said vessel (individual, business, or corporation) including but not limited to tour services. 4. The term of this Agreement shall be from month to month unless changed by written agreement between the parties. 5. %Gwl ITT— agrees to pay for any and all (individual, business, or corporation) damages to the Landing or any facilities owned by Virg's as a result of said vessel. 6. �it%�{iG'�� 1� is to carry protection and (individual, business, or corporation) indemnity insurance at no less than the minimal coverage per vessel acceptable to the Public Utilities Commission, but in no event shall this amount be less than Five Hundred Fifty Thousand Dollars (S550,000.) 7. � .46'7—� shall name Virg's Fishin', a (individual, business, or corporation) California corporation, as additionally insured on the Public Utilities Commission insurance and shall supply to Virg's satisfactory evidence naming Virg's Fishin', a California corporation, as additionally insured. The insurance afforded by the policy shall not be reduced or cancelled until thirty (30) days after notice of such reduction or cancellation has bee ailed to the certificate holder, Virg's Fishin'. 8.� �� Z� agrees to indemnify and hold (individual, business, or corporation) Virg's free and harmless from any and all liabilities, obligations, claims, causes of action, attorney fees, costs, and demands as a result of or in any way connected with acts of commission or omission by said vessel. 9• Zi agrees to keep and maintain said (individual, business, or corporation) vessel at all times within the safeguards of the specifications required by the United States Coast Guard. 10. This Agreement shall bind the parties hereto, their heirs, representatives, successors, and assigns. ® 11. No party may assign this Agreement, or any right under it, without first obtaining written approval from the other party. 12. Each party agrees to perform any further action to execute and deliver any documents that may be reasonably necessary to carry out the provisions of this Agreement. 13. In the event that any provisions of this Agreement shall be held to be invalid, the same shall not affect in any respect whatsoever the validity of the remainder of this Agreement. 14. This Agreement may be executed in counterparts but shall be without force or effect until all parties hereto have executed this Agreement. 15. In the event that legal action shall ensue as a result of this Agreement, the prevailing party shall be entitled to reasonable attorney fees and court costs. 16. This Agreement shall be governed and construed in accordance with the laws of the State of California. III' WITNESS WHEREOF, the parties hereto and hereunto set their hands on this ® Agreement on the day and year first written above. VIRG'S FISHIN', a California corporation . Darb y'eil, President CAMy Documents\SPORTFISHING AGREEMENT.doc Created on 05/02/00 1:05 PNI 11 RESOLUTION NO. 34-05 ® APPROVAL OF A NEW TWENTY-YEAR LEASE AGREEMENT FOR LEASE SITE 11OW-112W and 20' OF THE EASTERLY PORTION OF 111.5W, (LOCATED AT 1185 EMBARCADERO) BETWEEN THE CITY OF MORRO BAY AND GAFCO, INC. THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay is the lessor of certain property on the Morro Bay waterfront described as Lease Site I IOW0112W and 20' of the easterly portion of 111.5W; and, WHEREAS, George Leage, doing business as Great American Fish Company, Inc. is the current lessee of said property; and, . WHEREAS, Mr. Leage has proposed redevelopment of the leased area; and, WHEREAS, the City of Morro Bay and GAFCO, Inc. doing business as Great American Fish Company, a California General Corporation owned by George Leage have negotiated a new twenty year lease agreement for Lease Site 11OW- 112W and 20' of the easterly portion of 111.5 W; and, ® NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that a new twenty-year lease agreement for Lease Site 11OW- 112W and 20' of the easterly portion of 111.5W; between the City of Morro Bay and GAFCO, Inc. is hereby approved and that the Mayor is herby authorized to execute the lease agreement. PASSED AND ADOPTED btthe City Council of the City of Morro Bay at a regular meeting held thereof on the 12 day of September 2005, by the following vote: AYES: . Baxley, DeMeritt, Peirce, Peters NOES: Winholtz ABSENT: None ful-k A by. Wily UNION A IS mA, M Ail ZO A A N NU M A T A, W it! VORTATTAWASA T& Finn? :01'"TONAM" G It! ,Mls SWOM 1114 7.0 .11 1 T U 01 f Y 11 A H 101121P.- a Wnud lull-, ; ',ill T! son ilet MWHO I I-M mi f QW) ban 10 oiWo ;a MIJAMPHYY W wn; 1 16 lj: lr� f :NQ7 F M mw 10 lownpop Ommi y 11 'hot ^ 010 is 11"Ka"n Can QU 11 5 awmc jamm, sF. it Kra W vy oil I& my, to TOK1q, nosio: "I PICKY Q/t. 0:01"AT'. 1.3vu cm ! R�, 1V phowN 151 ;,,r A 6-1 w Volvo ko"yous luwj,l eMl JOR 0"0 : Of - 1 W, 0 El El 11 LEASE by and between the CITY OF MORRO BAY ("CITY") and GAFCO, INC. ("TENANT") UILEASES - LEASE FORMS/LS 110 W-112W S-0S TABLE OF CONTENTS n LJ Article1 FIXED TERM.............................................................................................................2 Section1.01 Temi.................................................................................................2 Section 1.02 No Extensions..................................................................................2 Section1.03 Hold Over.........................................................................................2 Section1.04 Replacement .................................. :.................................................. 3 Article2 RENT ......................... :............................................. :..................................................3 Section 2.01. Annual Minimum Rent....................................................................3 Section 2.02 CPI Adjustment to Annual Minimum Rent.....................................3 Section 2.03 Calculation of New Minimum Rent.................................................4 Section 2.04 Percentage Rent................................................................................ 5 Section 2.05 Reimbursements..........................................:....................................8 Section 2.06 Penalty and Interest ............................................... ....:...................... 8 Article3 USE OF PREMISES ...................................................................................................8 Section 3.01 Permitted Uses.................................................................................8 Section 3.02 Unauthorized Use.....................................................................:.......8 Section 3.03 Operation of Business - Hours of Operation....................................8 Section 3.04 Competition .......................................... :............................................ 9 Section 3.05 Hazardous Materials........................................................................9 Section 3.06 Tidelands Trust..............................................................................11 Section 3.07 Compliance with Law.................................................................... I I Section 3.08 Waste or Nuisance . ........................................................................ I I Section3.09 Use by CITY.................................................................................. I I Article 4 CONSTRUCTION, ALTERATION AND REPAIRS.............................................12 Section 4.01 Construction Approval...................................................................12 Section 4.02 Construction Bond.........................................................................12 WLEASES-LEASEFORMS/LS IIOW- 112W 8-05 -1- ® Section 4.03 Mechanics' Liens............................................................................13 Section 4.04 Ownership of Improvements..........................................................13 Article 5 LEASEHOLD MORTGAGES.................................................................................14 Article 6 REPAIRS, MAINTENANCE AND RESTORATION............................................14 Section 6.01 Maintenance by TENANT.............................................................14 Section 6.02 Seawalls and Revetment................................................................14 Section 6.03 Legal Requirements.......................................................................14 Section 6.04 Failure to Repair............................................................................15 Section 6.05 Inspection by CITY........................................................................15 Section 6.06 TENANT'S Duty to Restore Premises...........................................15 Section 6.07 Termination of Lease for Destruction .............................. :............. 16 J Section 6.08 Destruction Due to Risk Not Covered by Insurance ......................17 ® Article 7 INDEMNITY AND INSURANCE..........................................................................17 Section 7.01 Indemnity Agreement....................................................................17 Section 7.02 Liability Insurance.........................................................................18 Section 7.03 Worker's Compensation ..................................... ............................ 19 Section 7.04 Property Insurance.........................................................................19 Section 7.05 Additional Coverage......................................................................19 Section 7.06 General Requirements....................................................................20 Section 7.07 No Subrogation..............................................................................21 Section 7.08 TENANT'S Waiver.........................................................................21 Section 7.09 Insurance Not a Limit....................................................................21 Article8 TAXES AND FEES..................................................................................................21 Section 8.01 TENANT to Pay Taxes..................................................................21 Section 8.02 TENANT to Pay License and Permit Fees....................................22 ® Section 8.03 Utilities...........................................................................................22 UILEASES-LEASE FORDIS/LS I IOW-112W 8-05 -ll- Article 9 CONDEMNATION........................................................................................:.........22 Section 9.01 Total Condemnation.......................................................................22 Section 9.02 Condemnation Award . ........... :....................................................... 22 Section 9.03 Termination for Partial Taking......................................................23 Section 9.04 Relit Abatement for Partial,Taking................................................24 Section 9.05 Conveyance in Lieu of Eminent Domain.......................................24 Section 9.06 Temporary Taking.........................................................................24 Article 10 ASSIGNMENT AND SUBLEASING.....................................................................25 Section 10.01 No Assignment Without CITY'S Consent...................................25 Section 10.02 Change of Ownership as Assignment..........................................25 Section 10.03 Application for Assignment.........................................................26 Section 10.04 Probate Transfer of Assignment..................................................26 Section 10.05 No Sublease Without CITY'S Consent........................................26 Section 10.06 Subtenant Subject to Lease Terms...............................................27 Section 10.07 Consent Form Agreement............................................................27 Section 10.08 TENANT and Guarantor Remain Liable.....................................27 Section 10.09 Nondisturbance............................................................................28 Article 11 DEFAULT AND TERMINATION..........................................................................28 Section 11.01 Abandonment by TENANT.........................................................28 Section 11.02 Termination for Breach by TENANT..........................................28 Section 11.03 Termination for Failure to Pay Rent............................................29 Section 11.04 Lender May Cure Default............................................................29 Section 11.05 Attorneys' Fees.............................................................................29 Section 11.06 Damages for Breach_.....................................................................29 Section 11.07 Cumulative Remedies . ........................... :..................................... 30 Section 11.08 Waiver of Breach.........................................................................30 Section 11.09 Surrender of Premises ................................................................... 30 U:/LEASES - LEASE FORMS/LS I10w-112W 8-05 -111- ® Article 12 MISCELLANEOUS.................................................................................................30 Section 12.01 Attorneys' Fees ................................. '............................................ 30 Section12.02 Notices.........................................................................................31 Section 12.03 Governing Law andJurisdiction ..................................................31 Section 12.04 Binding on Successors..................................................................31 Section 12.05 Partial Invalidity...........................................................................32 Section 12.06 Sole and Only Agreement............................................................32 Section 12.07 Modification.................................................................................32 Section 12.08 Time of Essence...........................................................................32 Section 12.09 Memorandum of Lease for Recording.........................................33 Article 13 SPECIAL PROVISIONS PECULIAR TO THIS LEASE SITE.................................33 Section 13.01 Option to Extend Lease For Twenty (20) Years ..........................33 Section 13.02 Tenant to Mahe Restrooms Available to the General Public ....... 33 ® Section 13.03 Construction of Improvements....................................................33 E UILEASES-LEASE FORMS/LS IIOw-112W"5 -Iv- LEASE This LEASE is made and entered into by and between the CITY OF MORRO BAY, a municipal corporation of the State of California herein called CITY, and GAFCO, Inc., doing business as Great American Fish Company, a California General Corporation owned by George Leage herein called TENANT. WITNESSETII WHEREAS, the State of California granted certain tide and submerged lands located within the CITY limits of CITY to the County of San Luis Obispo and .to its successors, being Chapter 1076, Statutes of 1947, as amended by, Chapter 413, Statutes of 1955, Chapter 1874, Statutes of 1957, and Chapter 70, Statutes of 1960,first extraordinary session; which Statutes may be amended from time to time by the Legislature of the State of California; all of which Statutes are expressly recognized and agreed to be in full force and effect by the parties hereto; and WHEREAS, the parties hereto recognize and agree that on July 17, 1964, the CITY of Morro Bay, Lessor herein, succeeded to all of the right, title and interest of the County of San Luis Obispo in and to all of the tide and submerged lands conveyed to said County by the State of California pursuant to the above mentioned acts; and WHEREAS, judgment has been entered on October 14, 1968, in the case of CITY of Morro Bay, Plaintiff, versus County of San Luis Obispo, and State of California, Defendants, by the Superior Court of the State of California in and for the County of San Luis Obispo, #30417, adjudging and decreeing, among other things, that the.title to said tide and submerged lands so conveyed by the State of California to the County of San Luis Obispo in trust, as set forth above, passed automatically to the CITY of Morro Bay upon the date of its incorporation as a CITY on the 17th day of July, 1964; and WHEREAS, TENANT accepts the within Lease with full knowledge that there is no Warranty of title in and to the within described premises by CITY to TENANT; and WHEREAS, in order to develop and improve Morro Bay Harbor and to assist in carrying out the provisions of the tideland grant as aforesaid, and in order to provide facilities for the accommodation of those using Morro Bay Harbor, CITY desires to lease to TENANT the within described property upon the terms and conditions set forth herein; UILEASES - LEASE FORMS/LS 110w-112W 8-05 -1- ® NOW, THEREFORE, in consideration of the covenants to be performed and the rental to be paid by TENANT to CITY, CITY leases to TENANT, and TENANT leases from CITY, all of the following premises (herein collectively referred to as the "Premises") in the CITY of Morro Bay, County of San Luis Obispo, State of California, described as follows: Lease Site 1 IOW-112W and 20' of the easterly Portion of 111.5W. This property is delineated on Parcel Map of the CITY of Morro Bay No. 68-30, which map was recorded on October 10, 1968, in Book 3, Page 10 of Parcel Maps in the Office of the County Recorder, San Luis Obispo County, California. A copy of said Map is attached hereto as Exhibit A and made a part hereof by reference. Article 1 FIXED TERM Section 1.01 Term. The term of this Lease shall be a period of twenty years, commencing July 1, 2005 (the "Commencement Date"). The term of this Lease shall terminate without notice on June 30, .2025, unless sooner terminated as herein provided or extended as provided for in Section 13.01 ® herein. Section 1.02 No Extensions. The term of this Lease shall not be extended nor shall this Lease be renewed except as provided for in Section 13.01 herein. Requests for continued use of the Premises shall be treated as an application for a new lease and shall require appropriate application to the CITY with all required supporting information and documents, CITY Council approval and the execution of a new CITY lease, containing the then most current terms, covenants, conditions and rent schedules. Section 1.03 Hold Over. Should TENANT hold the demised Premises after the expiration of the term of this Lease with the consent of the CITY, express or implied, such holding over (in the absence of a written agreement between CITY" and TENANT with respect thereto) shall be deemed to create a tenancy from month to month, terminable on thirty (30) days written notice from either party to the other, at a monthly rental equal to two hundred percent (200%) of the average total Rent per month for the twelve (12) months immediately preceding the expiration of the Lease, and ® otherwise subject to each and every term, covenant and condition of this Lease. UAEASES- LEASE FOnISU 110W-112WS-05 -2- Section 1.04 .Replacement. As of the Commencement Date of this Lease, this Lease shall extinguish and replace every prior lease between CITY and TENANT respecting the Premises, if any. Any right or interest held by the TENANT pursuant to any existing lease with respect to the Premises which is not granted pursuant to this Lease shall be extinguished as of the Commencement Date of this Lease. Article 2 RENT Section 2.01 Annual Minimum Rent. TENANT agrees to pay to CITY a minimum guaranteed annual rental for the use and occupancy of the Premises, in an initial amount of $39,631.70 per year (the "Minimum Rent"), payable in advance in equal semiannual installments on January 1 and July 1 each year during the term of the Lease.. If the Commencement Date is other than January 1 or July 1, then' TENANT shall pay, on the Commencement Date, the proportionate amount of the Minimum Rent payable for the period from the Commencement Date until the next payment date of January 1 or July 1, as the case may be. If the tern of the Lease expires on a date other than December 31 or June 30, TENANT'S final installment of Minimum Rent shall be proportionate to the time remaining in the term. All Rent, including the Minimum Rent and the Percentage Rent, shall be paid in lawful money of the United States of America, without offset or deduction and shall be paid to CITY at City Hall located at 595 Harbor Street, Morro Bay, California, or at such other place or places CITY may from time to time designate by written notice delivered to TENANT. Section 2.02 CPI Adjustment to Annual Minimum Rent. (1) The parties agree that as of every July 1 following the Commencement Date (each, a "CPI Adjustment Date"), except as outlined in section 2.03 hereof, the annual Minimum Rent shall be increased in direct proportion to any upward or downward movement in the Consumer Price Index for January 1, 2005 which is hereby agreed to be 195.4 (Base Index). The percentage adjustment for any given year shall be based on the monthly average Index for the calendar year immediately preceding the CPI Adjustment Date as compared with the Base Index. The base index shall be adjusted upon each Calculation of new Minimum Rent as set out in section 2.03 below so that the Base index for CPI adjustment shall be the Consumer Price Index for January 1 of the year of the calculation of new, Minimum Rent. The Consumer. Price Index referred to herein is the Consumer Price Index (all items indexes, all urban consumers) for Los U:/LEASES-LEASE FORNIS/IS IIOW-112W "5 -3- ® Angeles - Anaheim - Riverside, California, compiled and published by the United States Department of Labor, Bureau of Labor Statistics, 1982-84 Base Year = 100 (the "Index") (2) The Annual Minimum Rent shall be adjusted as of each CPI Adjustment Date, and will remain in effect as adjusted until the next CPI Adjustment Date. As an illustration only, if the Base Index (Jan. 1, 1999 CPI) is 166.1 and the monthly average CPI for 2000 is 171.6, then the percentage increase is equal to 3.31 %. Therefore, the -Minimum Rent would be increased by 3.31% as of July 1, 2001, and would continue at that rate through June 30, 2002. (3) If the United States Department of. Labor, Bureau of Labor Statistics, shall cease to compile and make public the Index as now constituted and issued, but shall substitute another index in its place, then said substituted index shall be used for the purpose of adjusting the Minimum Rent for the Premises. If the Index is changed so that the base year differs from that in effect on the Lease Commencement Date, the Index_ shall be converted in accordance with the conversion factor published by the United States Department of Labor, Bureau of Labor Statistics. 'Section 2.03 Calculation of New Minimum Rent. ®- At the end of the initial five (5) years and of each five-year period thereafter, a new Minimum Rent shall be calculated for the following five (5) year period (each, a "Subsequent Rental Period") as follows: A. The Minimum Rent shall be subject to adjustment by appraisal as of the fifth anniversary of the Commencement Date and every five years thereafter (each, an "Appraisal Adjustment Date"). CITY, at its own cost and expense, shall retain an independent qualified appraiser for determination of the fair market value of said premises. Not more than nine (9) months prior to each Appraisal Adjustment Date, CITY shall provide written notice to TENANT of the pending appraisal and he appraiser selected by the CITY to determine the fair market value of the Premises, excluding fixtures and improvements unless such are expressly included in the description of the leasehold hereinabove. If TENANT does not reject CITY's appraiser in writing and within thirty (30) days of CITY's notice of its determination, then the Minimum Rent for the Subsequent Rental Period shall be in the amount determined by CITY as outlined in this Section 2.03. If TENANT rejects CITY's appraiser within thirty (30) days following CITY's notice to TENANT, then within fifteen (15) days alter such 30-day period, each party, at its own cost, shall select an independent professionally designated appraiser who is a member of the American Institute of Real Estate Appraisers, or the Society of Real Estate Appraisers with a ® designation of MAI (Member of American Institute), SRPA (Senior Real Estate Analysis), to U9LEASES-LEASE FORh1S/LS I lOW-112W M5 -4- appraise the fair market value of the Premises. CITY may rely on its original appraisal, or select a new appraiser, at its cost. If a party does not appoint an appraiser within fifteen (15) days after the other party has given notice of the name of its appraiser, the single appraiser appointed shall be the sole appraiser. Each appraiser shall conduct an independent appraisal within thirty (30) days after appointment. If the parties are unable to agree on the Minimum Rent for the Subsequent Rental Period within thirty (30) days after receiving the appraisal(s), then each party shall select one member of a three -member committee. The two so selected members shall select the third member, and this committee shall by majority vote select one or the other of the appraisals. The Minimum Rent determined on the basis of the selected appraisal shall be final and binding and all costs associated with the three -member committee shall be paid equally by CITY and TENANT. B. In the event that the appraisal process is not concluded on or before the Appraisal Adjustment Date, the Minimum Rent shall be adjusted retroactively to such Appraisal Adjustment Date as set out hereinbelow when said appraisal process is completed. C. The total Rent payable, including both the Minimum Rent and the Percentage Rent for each year within the applicable previous five-year period, shall be averaged to produce the average annual total Rent payable for such previous period. D. The new Minimum Rent for.the five-year period commencing on each Appraisal Adjustment Date shall be the greater amount of seventy-five percent (75%) of the average of the total yearly Rent payable during the previous five-year period (as set out in paragraph C. above) or eight percent (8%) of the fair market value of the Premises (as established in paragraph A. above.) The new Minimum Rent shall be divided by two to determine the semiannual payments and shall be paid by TENANT to CITY on the first of each January and July thereafter. This new Minimum Rent shall be adjusted each following year in proportion to any increase in the Consumer Price Index as set out in Section 2.02 of this Lease. Section 2.04 Percentage Rent. A. In addition to the Minimum Rent, TENANT agrees to pay to CITY at the time and in the manner hereinafter specified, as additional Rent for the use and occupancy of the Premises, a sum equal to three percent (3%) of TENANT'S Gross Sales from food services (excluding alcoholic beverages) and five percent (5%) of all other types of gross sales including alcoholic beverages and slip fees, hereinafter defined, less the amount of the Minimum Rent paid pursuant to this Lease (the "Percentage Rent"). B. The term "Gross Sales," as used herein, shall mean (subject to the exceptions and authorized deductions as hereinafter set forth), the total selling price and the total gross amount received by TENANT from all rentals, merchandise sold and services rendered in, on or from the U:/LEASES - LEASE FORMS/LS I ION-112 W 8-05 -5- ® Premises by TENANT, its sublessees; licensees, or concessionaires, both for cash and on credit including, but not limited to, rentals of dockage space, leasing and servicing operations and ticket sales, and if on credit whether or not payment be actually made therefore, all charges for services, alterations or repairs made in or upon the Premises; the gross amount received by TENANT for merchandise sold pursuant to orders received in the Premises, though filled elsewhere; and the gross_ amount received by TENANT from any and all other sources of income derived from the business conducted upon the Premises. C. Notwithstanding the other provisions of Section 2.04, the term "Gross Sales" shall not include the following items, and such items may be deducted from Gross Sales to the extent they have been included therein or have been included in a prior computation of Gross Sales or for which a Percentage Rent has been paid under this Lease to CITY: (1) Credits and refunds made to customers for merchandise returned or exchanged; (2) Any sales or excise taxes otherwise includable in Gross Sales as defined in this Section because such taxes are part of the total selling price of merchandise or services rendered in, from, or on the Premises, where TENANT must account for and remit the taxes to the government entity or entities by which they are imposed; and (3) With respect to credit card sales, fees retained or withheld by the issuer and/or ®, merchant bank pursuant to TENANT'S credit card acceptance agreement, and (4) Rental payments to TENANT from sublessees whose total gross sales are included in gross sales computations. D. TENANT shall keep or cause to be kept full, complete, and accurate records, and books of account in. accordant ce with accepted accounting practices showing the total amount of Gross Sales, as defined herein, made each calendar month in, on or from the Premises. TENANT shall keep said records and books of account within San Luis Obispo County and shall notify CITY in advance of their location at all times. Furthermore, TENANT shall at the time of sale and in the presence of the customer cause the full selling price of each piece of merchandise, each rental received and each service rendered in, on or from the Premises to be recorded in a cash register or cash registers that have cumulative totals and are sealed in accordance with standard commercial practices. Said records, books of account and cash register tapes, including any sales tax reports that TENANT maybe required to furnish any government or governmental agency shall at all reasonable times be open to the inspection of CITY, CITY'S auditor, or other authorized representative or agent of CITY. TENANT consents to the release of sales tax information to CITY and on demand will furnish to CITY a copy of the sales tax reports, quarterly reports and any audit reports of sales for confidential internal use of the CITY in ® determining Gross Sales for TENANT. TENANT consents and authorizes CITY to request such UJLEASES - LEASE FORMS/LS 110w-112W"5 -6- information directly from the State Board of Equalization or other state agency with which sales tax information is filed. is E. By July 31 of each year, TENANT shall furnish CITY with a statement, to be certified by TENANT as current, true and accurate, which shall set forth the Gross Sales of each department, sublessee, licensee and concession operating in, on or from the Premises for the previous twelve (12) calendar months, ending June 30, just concluded, and the authorized deductions, if any, therefrom; and with it TENANT shall pay to CITY the amount of the Percentage Rent which is due to CITY as shown thereby. If TENANT shall at any time cause an audit of sales of TENANT'S business to be made by a public accountant, TENANT shall furnish CITY with a copy of said audit without cost or expense to CITY. CITY may, once in any twelve-month period, cause an audit of the business of TENANT to be made by a public accountant of CITY'S own selection. TENANT shall, upon receiving written notice of CITY'S desire for such an audit deliver and make available all such books, records and cash register tapes to the public or certified public accountant selected by CITY. Furthermore, TENANT shall promptly on demand reimburse CITY for the full cost and expense of said audit, should the audit disclose that the questioned statement or statements understated Gross Sales by five percent (5%) or more but less than ten percent (10%). In the event that an audit.performed at CITY'S request discloses that TENANT understated Gross Sales by less than 5%, the cost of such audit shall be paid by CITY. In the event that any audit or other review of records discloses that the amounts reported as Gross Sales was understated by TENANT by ten percent (10%) or more, CITY shall not only be entitled to recover from TENANT all costs of audit and review but shall also be entitled to recover from TENANT a penalty. equal to two times the Percentage Rent due pursuant to this Lease on such unreported amounts. Whenever any audit discloses that Gross Sales were understated by any amount, TENANT shall immediately pay the additional Percentage Rent therein shown to be payable by TENANT to CITY, together with interest at the Default Rate thereon, from the date the Percentage Rent was payable until the date paid. F. CITY shall be entitled at any time within five (5) years alter the receipt of any such Percentage Rent payment, to question the sufficiency of the amount thereof and/or the accuracy of the statement or statements furnished by TENANT to justify the same. For the purpose of enabling CITY to check the accuracy of any such statement or statements, TENANT. shall for said period of five (5) years after submission to CITY of any such statement keep all of . TENANT'S records, including sales tax returns, all cash register tapes and other data.which in any way bear upon or are required to establish in detail TENANT'S Gross Sales and any authorized deductions therefrom as shown by any such statements and shall upon request make the same available to CITY for examination. U:/LEASFS-LEASE FORMS/IS I IOW -I I2W 8-05 -7- ® Section 2.05 Reimbursements. If TENANT fails to perform any term or covenant of this Lease, CITY may, but is not obligated to, perform such term or covenant, and TENANT shall reimburse CITY therefore as additional Rent hereunder. As an illustration and not as a limitation, if TENANT fails to procure the insurance required by this Lease, CITY may, but is not obligated to, obtain such insurance, with the cost of the premiums being due to CITY upon demand as additional Rent. Section 2.06 .Penalty and Interest. - (1) If any Rent is not received within ten (10) days following the date on which the Rent first became due, TENANT shall pay a late penalty of ten percent (10%) of the amount of the Rent in addition to the Rent. (2) In addition to the penalty, TENANT shall pay interest at the rate of one percent (1%) per month or fraction thereof or the maximum amount permitted by law as of the date this Lease is signed, whichever is greater (the "Default Rate"), on the amount of the Rent, exclusive of the penalty, from the date on which Rent first became delinquent until paid. The term 'Rent" includes any sums advanced by the CITY and any unpaid amounts due from TENANT to the ® CITY. _. Article 3 USE OF PREMISES Section 3.01 Permitted Uses. The Premises shall, during the term of this Lease, be used for the purpose of operating and conducting thereon and therein a restaurant, bar, fish market and slips for boats or any other uses subsequently approved for the Premises by the City. Section 3.02- Unauthorized Use. TENANT agrees to allow only those uses authorized in Section 3.01 hereinabove and that any unauthorized use thereof shall constitute a breach of this Lease and shall, at the option of CITY, terminate this Lease. Section 3.03 Operation of Business - Hours of Operation. Failure to actively and diligently conduct the business authorized herein constitutes a breach of the agreement and shall, at the option of CITY, terminate this lease. UILEASFS- LEASE FORMSAS 110W-112W 8-05 -8- (1) TENANT shall during the term of this Lease conduct business of the nature specified in Section 3.01 of this Lease on the Premises in an efficient and diligent manner and keep the Premises open for the conduct of business continuously and without interruption for at least six hours each day of the year except one day each week and legal holidays. This provision shall not apply if the Premises shall be closed and the business of TENANT is temporarily shut down for a period not to .exceed fourteen (14) calendar days in any calendar year to make necessary repairs, maintenance or other construction deemed necessary by TENANT. This provision shall not apply if the Premises shall be closed and the business of TENANT is temporarily shut down as authorized or required by the CITY Manager or on account of strikes, walkouts, or causes beyond the control of TENANT or for not more than three (3) days out of respect to the memory of an officer, employee, or close relative of any officer or employee of TENANT. (2) TENANT shall operate TENANT'S business on the Premises with due diligence and efficiency and in like manner as comparable businesses operated in the CITY or the coastal area of San Luis Obispo County, so as to produce the maximum amount of Gross Sales and gross receipts from services which may be produced from TENANT'S business; and TENANT at all times shall carry on Premises, a stock or merchandise of such size, character, and quality as is reasonable, designed to produce the maximum return to TENANT, when the sale of merchandise is a permitted use under this Lease. Section 3.04 Competition. During the term of this Lease, TENANT shall not directly nor indirectly acquire or establish any similar or competing business within a radius of five (5) miles from the location of the Premises, provided, however, that TENANT may, with prior written approval from CITY, own or operate more than one business, whether or not competing and similar along the Embarcadero upon CITY lease sites. The purpose of this section is to prevent and prohibit TENANT from reducing revenue to CITY by diverting business from the operation at the Premises to another similar business owned by TENANT within the CITY but not upon a CITY lease site from which CITY is paid rent based on Gross Sales. Section 3.05 Hazardous Materials. (1) TENANT shall not transport, use, store, maintain, generate, dispose, release, treat or discharge any "Hazardous Material" (as defined below) upon or about the Premises (such activities being hereafter referred to as "Hazardous Materials Activities"), nor permit TENANT'S employees, agents, or contractors to engage in Hazardous Materials Activities upon or about the UILEASES - LEASE FOnIS/LS I10W-112W M5 -9- ® Premises,. except as allowed by applicable law. The term "Hazardous Material" for purposes hereof shall mean any chemical, substance, material or waste or component thereof which is now or hereafter listed, defined or regulated as a hazardous or toxic chemical, substance, material or waste or component thereof by any federal, state or local governing or regulatory body having jurisdiction, or which would trigger any employee or community "right -to -know" requirements adopted by any such body. All Hazardous Materials Activities at the Premises shall be conducted strictly in accordance with all applicable laws and regulations. If TENANT shall transport any hazardous waste from the Premises, such transportation shall be done only by a contractor duly licensed to haul hazardous waste and shall use only a duly licensed disposal site approved by TENANT'S liability insurer. (2) TENANT shall promptly notify CITY of. (i) any enforcement, cleanup or other .regulatory action taken or threatened by any governmental or regulatory authority with respect to the presence of any Hazardous Material on the Premises or the migration thereof from or to other property, (ii) any demands or claims made or threatened by any party against TENANT or the Premises relating to any loss or injury resulting from any Hazardous Material on or from the Premises, and (iii) any matters where TENANT is required by applicable law to give a notice to any governmental or regulatory authority respecting any Hazardous Material on the Premises. ®' CITY shall have the right (but not the obligation) to inspect the Premises, to take such remedial action on the Premises, as CITY may deem appropriate, and to join and participate, as a party, in any legal proceedings or actions affecting the Premises initiated in connection with any environmental, health or safety law. (3) If any Hazardous Material is released, discharged or disposed of by TENANT or its employees, agents or contractors, on or about the Premises in violation of the foregoing provisions, TENANT shall immediately notify CITY. CITY may elect either to take such remedial action as CITY deems appropriate, in which event TENANT shall reimburse CITY for all costs thereof within ten (10) days after demand, or direct TENANT to perform such remediation. If CITY directs TENANT to perform the remediation, TENANT shall immediately take such remedial action, as CITY shall direct. TENANT shall, properly and in compliance with applicable laws clean up and remove the Hazardous Material from the Premises and any other affected property at TENANT'S expense. If CITY directs TENANT to perform remediation hereunder and if TENANT shall fail to comply with the provisions of this Section within five (5) days after written notice by CITY, or such shorter time as may be required by applicable law or in order to minimize any hazard to persons or property, CITY may ® (but shall not be obligated to) arrange for such compliance directly or as TENANT'S agent UILEASES-LEASE FORh1S/[S IIOW-112WS-05 -t0- through contractors or other parties selected by CITY at TENANT'S expense (without limiting CITY'S other remedies under this Lease or applicable law). Section 3.06 Tidelands Trust. TENANT shall use and occupy the Premises in strict compliance with the Tidelands Trust purposes under which the Premises or any portion thereof are held by CITY pursuant to the grants from the State of California as set forth in this Lease. Section 3.07 Compliance with Law. TENANT shall, at no cost to CITY, comply with all of the requirements of all local, municipal, county, state and federal authorities now in force, or which may hereafter be in force, pertaining to the Premises, and shall faithfully observe in the use of the Premises all local, municipal and county ordinances and state and federal statutes, rules, regulations and orders now in force or which may hereafter be in force (collectively, "Legal Requirements") provided that TENANT shall not be required to comply with any Legal Requirement imposed by the CITY that would substantially deprive TENANT of a material benefit under this lease unless such Legal Requirement has been imposed or required by a county, state or federal authority. The judgment of any court of competent jurisdiction, or the admission of TENANT in any action or proceeding against TENANT, whether CITY be a party thereto or not, that TENANT has violated any such Legal Requirement in the use of the Premises shall be conclusive of that fact as between CITY and TENANT. Section 3.08 Waste or Nuisance. TENANT shall not commit or permit the commission by others of any waste on the Premises; TENANT shall not maintain, commit, or permit the maintenance or commission. of any nuisance as defined by law on the Premises; and TENANT shall not use or permit the use of the Premises for any unlawful purpose. Section 3.09 Use by CITY. (1) Subject to TENANT's rights hereunder to possession of the Premises, CITY may grant licenses to, or otherwise authorize, other persons and entities permitting uses of the Morro Bay Harbor. (2) CITY also retains and reserves for itself, its successors and assigns, all oil, gas, petroleum and other mineral or hydrocarbon substances in and under the lands leased hereby together with right to prospect and extract all such substances. 101 U:/[,F,ASHS-LEASE FORMS/LS 11OW-112W 8-05 -]1- Article 4 CONSTRUCTION, ALTERATION AND REPAIRS Section 4.01 Construction Approval. (1) TENANT shall not make or permit any other person to make any alterations or Structural additions or structural modifications to the Premises or to any structure thereon or facility appurtenant thereto if the cost thereof shall exceed ten thousand dollars (SI0,000), without the prior written consent of CITY. The consent to be obtained pursuant to this Section 4.01 (1) shall be requested from the Harbor Director for CITY. If the Harbor Director gives such consent to proceed, it is understood that such consent is given by CITY only in its capacity as the landlord under this Lease and not as the permit -issuing authority. TENANT remains obligated to obtain any needed building permits and comply with all applicable planning processes. (2) Where required by the Morro Bay Municipal Code, California Coastal Act, Corps of Engineers or any other state or federal agency having authority over the proposed project, then all Conditional Use Permits, Concept Plans; Precise Plans, Coastal Development Plans, and any other required plans or permits shall be applied for and approved prior to any construction, ® alteration or repairs. Section 4.02 Construction Bond. `(1) Prior to the commencement of any construction the cost.of which is greater than the amount of one hundred thousand dollars ($100,000), TENANT shall. file with the Morro Bay CITY Clerk a final detailed Civil Engineer's, Registered Architect's or Licensed and Bonded General Contractor's estimate of the cost of construction and installation of improvements on the Premises. Said estimate must be submitted to the CITY Engineer for approval. TENANT shall file with the Morro Bay CITY Clerk a faithful performance bond, in a form and issued by a corporate surety company satisfactory to CITY, in an amount satisfactory to CITY but not in excess of one hundred percent (100%) of the final detailed cost estimate, securing the faithful performance of TENANT or its contractor in the completion of said construction. (2) TENANT shall also file with the Morro Bay CITY Clerk a labor and materials . bond, in a form and issued by a corporate surety company satisfactory to CITY, in an amount satisfactory to CITY but not in excess of one hundred percent (100%) of the final detailed cost estimate, securing the payment of all claims for the performance of labor or services on, or the furnishing of materials for, the performance of said construction. ® (3) In lieu of the above referenced bonds, TENANT may post cash deposits or may make other mutually satisfactory arrangements to guarantee the completion of construction WLEASES- LEASE FORN1S/LS 110W-112W"5 -12- projects. In the event the contractor bonds the project, CITY may be named as additional indemnitee to comply with these requirements.. Section 4.03 Mechanics' Liens. At all times during the term of this Lease, TENANT shall keep the Premises and all buildings, installations and other improvements now or hereafter located on the Premises free and clear of all liens and claims of liens for labor, services, materials, supplies, or equipment performed on or furnished to the Premises. TENANT further agrees to at all times, save CITY free and harmless and indemnify CITY against all claims for labor or materials in connection with any improvement, repairs, or alterations on the Premises, and the cost of defending against such claims, including reasonable attorneys' fees. Should TENANT fail to pay and discharge or cause the Premises to be released from such liens or claim of liens within ten (10) days after the filing of such lien or levy, TENANT shall upon written notification be required to immediately deposit with CITY a bond conditioned for payment in full of all claims on which said lien or levy has been filed. Such bond shall be acknowledged by TENANT as principal and by a company or corporation, licensed by the Insurance Commissioner of the State of California to transact the business of a fidelity and surety insurance company as surety. The beneficiary of any security instrument which instrument is on record with CITY, shall have the right to file such a bond on behalf of TENANT. CITY shall have right to post and keep posted on the Premises notices of non -responsibility and any other notices that may be provided by law or which CITY may deem proper for the protection of CITY and Premises from such liens. TENANT shall give CITY notice at least twenty (20) days prior to commencement of any work on the Premises to afford CITY the opportunity to post such notices. Section 4.04 Ownership of Improvements. The parties agree that CITY has the option and right to require TENANT to remove all buildings, structures, installations, improvements of any kind or other property belonging to or placed upon the Premises by TENANT at the termination of this Lease, however occurring, providing CITY gives notice, in writing, no later than thirty (30) days prior to the termination of the Lease, of its decision to require that such improvements be removed. The parties agree that if the CITY exercises its option, then 'at the termination of this Lease, however occurring, TENANT shall have sixty (60) days thereafter to remove all buildings, structures, facilities, installations, improvements and other property belonging to TENANT from the Premises. If CITY exercises such option and TENANT fails to remove all such improvements and other property within sixty (60) days after the termination of this Lease, CITY shall have the right to have any or all such improvements and other property removed at the expense of TENANT. If UILEASES - LEASE FORMS/IS 110w-112W 8-05 -13- ® CITY does not exercise its option to remove (or require the removal of) the improvements and other property, then title to such improvements and other property shall vest in CITY and TENANT shall not remove same. Article 5 LEASEHOLD MORTGAGES Tenant shall not mortgage, securitize or hypothecate the leasehold interest in whole or any part without the prior written approval of City as evidenced by a resolution of the City Council of the City of Morro Bay. Article 6 REPAIRS, MAINTENANCE AND RESTORATION Section 6.01 Maintenance by TENANT. At all times during the term of this Lease, TENANT shall, at TENANT'S own cost and expense, keep and maintain all improvements now or hereafter on the Premises in good order and repair and in a safe and clean condition. Furthermore, TENANT shall, at TENANT'S own '2 cost and expense, maintain at all times during the term of this Lease the whole of the Premises in ® a clean, sanitary, neat and orderly condition. CITY may, at the sole option of CITY, clean and -- clear the Premises, at TENANT'S cost and expense, in the event TENANT fails to clean and clear the Premises in accordance with this Section to the satisfaction of CITY after fifteen (15) days' written notice to TENANT from CITY of CITY'S intent to exercise this option. Section 6.02 Seawalls and Revetment. At all times during the term of this Lease, TENANT shall at TENANT'S own cost and expense repair, maintain, replace and rebuild as necessary, the improvements, pilings, bulkheads, seawalls, revetment, piers, posts and any structures or other improvements located in the water portion of the Premises. Further, TENANT shall at TENANT'S own cost and expense conduct maintenance surveys at reasonable intervals to locate and determine needed repairs. Section 6.03 Legal Requirements. At all times during the term of this Lease, TENANT, at no cost to CITY, shall: (1) Make all alterations, additions, or repairs to the Premises or the. improvements or facilities on the Premises required by any Legal Requirements (as defined in Section 3.07 above) now or hereafter made or issued; ® (2) Observe and comply with all Legal Requirements now or hereafter made or issued respecting the Premises or the improvements or facilities located thereon; UJLEASES - LEASE FORMS/IS I10W-112W M5 -14- (3) Obtain all required permits pursuant to the Morro Bay Municipal Code or State law prior to the initiation of any repair or maintenance activity; and (4) Indemnify and hold CITY and the property of CITY, including the Premises, free and harmless from any and all liability, loss, damages, fines, penalties, claims and actions resulting from TENANT'S failure to comply with and perform the requirements of this section. Section 6.04 Failure to Repair. In the event failure to repair results in a hazardous or unsafe condition, CITY shall have the right and option but not the obligation to close and prohibit access to the unsafe portion of the Premises until such repairs are completed and accomplished and the Premises rendered safe for. public use. In addition, if TENANT fails to repair any hazardous or unsafe condition within ten (10) days of written notice thereof from CITY, CITY shall have the right, but not the obligation, to perform such repair at TENANT'S expense. TENANT shall reimburse CITY for any such repair undertaken by CITY, promptly upon CITY'S demand, as additional Rent. Failure by CITY to enforce any of the provisions of this Article shall not constitute a waiver. of these provisions and CITY may at any time enforce all of the provisions of this Article, requiring all necessary repairs, rebuilding or replacement. Section 6.05 Inspection by CITY. CITY or CITY'S agents, representatives, or employees may enter the Premises at all reasonable times for the purpose of inspecting the Premises to determine whether TENANT is complying with the terms of this Lease and for the purpose of doing other lawful acts that may be necessary to protect CITY'S interest in the Premises under this Lease or to perform CITY'S duties under this Lease. Section 6.06 TENANT'S Duty to Restore Premises. (1) Except as provided in Section 6.07 below, if at any time during this Lease, any improvements now or hereafter on the Premises are destroyed in whole or in part by the elements, or any other cause not the, fault of TENANT or CITY, this Lease shall continue in full force and effect and TENANT, at TENANT'S own cost and expense, shall repair and restore the damaged or destroyed improvement(s) according to the original plan thereof or according to such modified plans therefore as shall be approved in writing by CITY. The work of permitting, repair and restoration shall be commenced by TENANT within one hundred eighty (180) days after the damage or destruction occurs shall be pursued with due diligence, and shall be completed not later than one year after the work is commenced, unless the parties hereto UILEASES-LEASE FORMS/IS IIOW-112N'8-05 -15- ® mutually agree, in writing, to an extension. In all other respects, the work of repair and restoration shall be done in accordance with the requirements for construction work on the Premises set forth in Article 4 of this Lease. Any failure by TENANT either to commence or to complete repair and restoration as required by this Section 6.06 shall be a material default under this Lease. (2) Any and all insurance proceeds that become payable at any time during the term of this Lease because of damage to or destruction of any improvements on the Premises shall be paid to TENANT and applied by TENANT toward the cost of repairing and restoring the damaged or destroyed improvements in the manner required by this Section 6.06, or, if this Lease is terminated, then applied as provided in Section 6.07. Except as set forth in Section 6.08 below, TENANT'S obligation to restore pursuant to this Section shall exist whether or not funds are available from insurance proceeds. Section 6.07 Termination of Lease for Destruction. (1) Notwithstanding the provisions of Section 6.06 of this Lease, TENANT shall have the option of terminating this Lease as provided in this Section 6.07 if: ® (a) During the last fifteen (15) years of the term of this Lease, any improvements now or hereafter on the Premises are so damaged or destroyed by the elements or any cause not the fault of TENANT or CITY, that they cannot be repaired and restored as required by Section 6.06 of this Lease at a cost not exceeding thirty-five percent (35%) of the cost of replacing all improvements if they had been totally destroyed at the time of such damage; or (b) During the last ten (10) years of the term of this Lease, any improvements now or hereafter on the Premises are so damaged or destroyed by the elements or any cause not the fault of TENANT or CITY, that they cannot be repaired and restored as required by Section 6.06 of this Lease at a cost not exceeding fifteen percent (15%) of the cost of replacing all improvements if they had been totally destroyed at the time of such damage. (2) TENANT may exercise its right to terminate pursuant to this Section 6.07 by providing written notice to CITY within one hundred eighty (180) days following damage or destruction as described herein. Such termination shall be effective on the last day of the calendar month following the month in which TENANT provides its notice. (3) If TENANT fails to commence or complete repair and restoration as required by ® Section 6.06, CITY shall have all rights and remedies with respect to TENANT's default, including but not limited to termination of this Lease pursuant to Article 11. UILEASES - LEASE FORMS/IS IIOW-112W 8-05 -16- (4) If this Lease is terminated as a result of damage or destruction, then any insurance proceeds received with respect to the improvements shall be applied or distributed in the following order: debris; then then (a) first, to the demolition of the improvements and removal of all demolition (b) to any accrued and unpaid Rent as of the effective date of the termination; (c) to each Lender under a Leasehold Encumbrance, in order of lien priority, an amount not to exceed the amount due under such Leasehold Encumbrance; then (d) to CITY, an amount equal to the present value, as of the date of termination, of the total Minimum Rent for the remainder of the Term; then (e) the remaining proceeds, if any, to TENANT. Section 6.08 Destruction Due to Risk Not Covered by Insurance. Notwithstanding anything to the contrary in Section 6.06 of this Lease, TENANT shall have the right to terminate this Lease at any time if the improvements on the Premises are damaged. or destroyed by a casualty for which TENANT is not required under this Lease to carry insurance and the cost to repair or restore such improvements exceeds fifty percent (50%) of the fair market value of all the improvements on the Premises immediately -prior to the damage or destruction. Article 7 INDEMNITY AND INSURANCE Section 7.01 Indemnity Agreement. (1) TENANT shall indemnify and hold CITY, and the property of CITY (including the Premises and any improvements now or hereafter on the Premises), and the CITY'S officers, officials, employees and volunteers harmless from any and all liability, claims, loss, damages, and expenses, including attorney fees and litigation expenses,, resulting from TENANT'S occupation and use of the Premises or any negligent act or omission of the TENANT or any of its subtenants, employees, contractors or anyone for whom TENANT may be liable,. specifically including, without limitation, any liability, claim, loss, damage, or expense arising by reason of: (a) The death or injury of any person, including TENANT or any person who is an employee or agent of TENANT, or by reason of the damage to or destruction of any U:/LFASES-LEASE FORMS/LS IIOW-112W 8-05 -17- ® property, including property owned by TENANT or by any person who is an employee or agent of TENANT, from any cause whatever while such person or property is in or on the Premises or in any way connected with the Premises or with any of the improvements or personal property on the Premises; (b) The death or injury of any person, including TENANT or any person who is an employee or agent of TENANT, or by reason of the damage to or destruction of any property, including property owned by TENANT or any person who is an employee or agent of TENANT, caused or allegedly caused by either (i) the condition of the Premises or any improvement placed on the Premises by TENANT, or (ii) any act or omission on the Premises by TENANT or any person in, on, or about the Premises with or without the permission and consent of TENANT; (c) Any work performed on the Premises or materials furnished to the Premises at the instance or request of TENANT or any person or entity acting for or on behalf of TENANT; (d) TENANTT'S failure to perform any provision of this Lease or to comply with any Legal Requirement imposed on TENANT or the Premises. (2) TENANT'S obligations pursuant to this Section to indemnify and hold harmless do not- extend to any liability, claim, loss, damage or expense arising from CITY'S active negligence or willful misconduct. Section 7.02 Liability Insurance. During the term of this Lease, TENANT shall maintain at its cost Commercial General Liability insurance with coverages at least as broad as ISO Forms labeled "City of Morro Bay Insurance requirements for Lessees", Certificate of Insurance — City of Morro Bay", and "Additional Insureds — Managers or Lessors of Premises" attached hereto as Exhibit B and made a part hereof as may be updated or changed from time to time at the sole discretion of the CITY, insuring against claims for bodily injury (including death), property damage, contractual liability, personal injury and advertising injury occurring on the Premises or from operations located in any part of the Premises. Such insurance shall afford protection in amounts no less than One Million Dollars ($1,000,000) per occurrence for bodily injury, personal injury and property damage, provided that if insurance with a general aggregate limit is used, either the general aggregate limit shall apply separately to the Premises or the general aggregate limit shall be ® twice the occurrence limit stated in this Section. All liability insurance carried by TENANT - hereunder shall name CITY, its officers, officials, employees and volunteers as additional U9LEASES-LEASE FORMS/LS 110W-112R'8-05 -18- insureds, and shall be primary insurance with respect to such additional insureds. TENANT shall include all its subtenants as insureds under TENANT's liability policies or shall furnish separate certificates and endorsements for each subtenant. All coverages for subtenants shall comply with all requirements of this Article Seven. Section 7.03 Worker's Compensation. TENANT shall maintain at TENANT'S own expense and keep in full force and effect during the term of this Lease, Worker's Compensation Insurance as provided by law. Said insurance shall contain a waiver of subrogation rights against CITY. TENANT shall also maintain employer's liability insurance with minimum coverage of $1,000,000 per accident for bodily injury or disease. Section 7.04 Property Insurance. TENANT shall,. at its cost, at all times during the tern of this Lease keep all improvements and. other structures on the Premises, as well as any and all additions, improvements and betterments thereto, insured for one hundred percent (100%) of their full replacement cost with no co-insurance provision against loss or destruction by the perils covered by "all risk" (excluding earthquake) property damage insurance policies. Any loss payable under such insurance shall be payable to TENANT, CITY, and any Lender under a Leasehold Encumbrance pursuant to Article 5 of this Lease, as their interests may appear, and such proceeds shall be used and applied in the manner required by Article 6 of this Lease. Section 7.05 Additional Coverage. TENANT shall also maintain, at its expense, the insurance described in this Section 7.05. (1) If TENANT has (or is required by any Legal Requirement to have) a liquor license and is selling or distributing alcoholic beverages on the Premises, then TENANT shall maintain liquor liability coverage in appropriate amounts. TENANT shall require any subtenant who has (or is required by any Legal Requirement to have) a liquor license and who is selling or distributing alcoholic beverages on the Premises, to maintain such coverage. (2) TENANT shall maintain "all risk" (excluding earthquake) property damage insurance covering TENANT's personal property located at the Premises, in amounts not less than the full replacement value of such personal property. CITY shall have no interest in the proceeds of such insurance. C] u:/LEASES-LEASE FORMS/fS IIOW-112WM5 -19- ® (3) TENANT shall, at TENANT's own expense, obtain and maintain any additional insurance coverages that CITY may reasonably require. As illustration only and not as a limitation, in appropriate circumstances such additional insurance may include increased general liability limits, business interruption coverage, business automobile liability, boiler and machinery insurance and/or builder's risk insurance. However, TENANT shall not be required to maintain additional coverages that are in excess of those typically maintained by similarly situated tenants in the Morro Bay area. Section 7.06 General Requirements. Except as specifically provided to the contrary, all the insurance required pursuant to this Article Seven shall be subject to the requirements of this Section 7.06. (1) Maintenance of proper insurance coverage is a material element of this Lease and failure to maintain or renew coverage or to provide evidence of coverage and/or renewal may be treated by the CITY as a material breach of contract. TENANT shall forward the CITY specifications and forms to TENANT'S insurance agent for compliance. _ - -• (2) CITY may at any time require TENANT to increase the minimum coverage limits for insurance required by this Lease, but every such increase shall be reasonable under the circumstances. (3) All policies shall be issued by insurance companies authorized to issue such insurance in California, with an A.M. Best's rating of no less than A:VII. (4) Any deductibles or self -insured retentions must be declared to and approved by CITY. At the option of CITY, either: the insurer shall reduce or eliminate such deductibles or self -insured retentions as respects CITY, its officers, officials, employees and volunteers; or the TENANT shall provide a financial guarantee satisfactory to CITY guaranteeing payment of losses and related investigations, claim administration and defense expenses. (5) Each insurance policy required by this Lease. shall be endorsed to state that coverage shall not be cancelled or reduced, except after thirty (30) days' prior vnitten notice by certified mail, return receipt requested, has been given to CITY. (6) TENANT shall furnish CITY with certificates and amendatory endorsements effecting the -coverage required by this Lease. The endorsements shall be on forms provided by CITY or on other than CITY's forms, provided those endorsements or policies conform to the requirements. All certificates and endorsements are to be received and approved by CITY before ® use of the Premises, and promptly following any renewal or replacement. CITY reserves the UJLEASES-LEASE FORMS/LS IIOW-112W M5 -20- right at any time to require complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications. (7) TENANT's insurance coverage shall be primary insurance as respects CITY, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by CITY, its officers, officials, employees, or volunteers shall be excess of TENANT's insurance and shall not contribute with it. Section 7.07 No Subrogation. TENANT agrees that in the event of loss due to any of the perils for which it has agreed to provide insurance, TENANT shall look solely to its insurance for recovery. TENANT hereby grants to the CITY, on behalf of any insurer providing insurance to either TENANT or CITY with respect to TENANT'S occupancy of the Premises, a waiver of any rights to subrogation which any such insurer of said TENANT may acquire against the CITY by virtue of the payment of any loss under such insurance. Each insurance policy required under this Lease including those insuring TENANT against claims, expense, or liability for injury to persons or property shall provide that the insurer shall not acquire by subrogation any right to recovery which TENANT has expressly waived in writing prior to the occurrence of the loss. Section 7.08 TENANT'S Waiver. TENANT hereby waives any right of recovery against CITY for each claim, expense, liability, or business interruption, or other loss, except where caused by CITY'S active negligence or willful misconduct. TENANT agrees that to. the extent that TENANT fails to acquire insurance, TENANT shall not have any claim against CITY for any loss that results from a risk or peril that would have been included in such insurance. Section 7.09 Insurance Not a Limit. The insurance requirements of this Article Seven are independent of, and do not limit or modify, TENANT'S indemnification and other obligations pursuant to this Lease. Article 8 TAXES AND FEES Section 8.01 TENANT to Pay Taxes. TENANT shall pay, before delinquency, all taxes and assessments levied upon or assessed to TENANT on the Premises by reason of this Lease or of any equipment, appliances, improvement, or other development of any nature whatsoever, erected, installed, or maintained U:/LEASES-LEASE FORMS/LS IIOW-112W8-05 -21- ® by TENANT or by reason of the business or other activity of TENANT upon or in connection with the Premises. TENANT shall pay all possessory interest taxes applicable to the Premises. Section 8.02 TENANT to Pay License and Permit Fees. .TENANT shall pay any fees imposed by law for licenses or permits for any business or activities including construction by TENANT upon the Premises. Section 8.03 Utilities. TENANT shall pay, or cause to be paid, and hold CITY and the property of CITY, including the Premises, free and harmless from all charges for the furnishing of gas, water, electricity, telephone service, and for other public utilities to the Premises during the term of this Lease and for the removal of garbage and rubbish from the Premises during the term of this Lease. Article 9 CONDEMNATION Section 9.01 Total Condemnation. ® If title and possession to all of the Premises is permanently taken for any public or quasi - public use under any statute, or by the right of eminent domain, then this Lease shall terminate on the date that possession of the Premises is taken, and both CITY and TENANT shall thereafter be released from all obligations, including Rent, all of which shall be prorated to the date of termination, except those specified in Section 9.02 of this Lease. Section 9.02 Condemnation Award. Any compensation or damages awarded or payable because of the permanent taking of all or any portion of the Premises by eminent domain shall be allocated between CITY and TENANT as follows: . (1) All compensation or damages awarded or payable for the taking by eminent domain of any land that is part of the Premises shall be paid to and be the sole property of CITY free and clear of any claim of TENANT or any person claiming rights to the Premises through or under TENANT. (2) All compensation or damages awarded or payable which is specifically attributed ® by the taking party to the "good will" of TENANT'S business shall be paid to and be the sole property of TENANT. UJLEASES- LEASE FORA1S/LS HOW-112WM5 -22- (3) All compensation or damages awarded or payable because of any improvements 0 constructed or located on the portion of the Premises taken by eminent domain where only a portion of the Premises is taken by eminent domain, and TENANT is not entitled to or does not terminate this Lease, shall be applied in the manner specified in Section 9.04 toward the replacement of such improvements with equivalent new improvements on the remaining portions of the Premises. (4) All compensation or damages awarded or payable because of any improvements constructed or located on the portion of the Premises taken by eminent domain where this Lease is terminated because of the taking by eminent domain, whether all or only a portion of the Premises is taken by eminent domain, shall be allocated between CITY and TENANT as follows: (a) That percentage of the compensation or damages awarded or payable because of the improvements that equals the percentage of the full term of this Lease that has, at the time of the taking, not expired shall belong to and be the sole property of TENANT. (b) That percentage of the compensation or damages awarded or payable because of the improvements that equals the percentage of the full term of this Lease that has, at the time of the taking, expired shall belong to and be the sole property of CITY. (c) The term "time of taking" as used in this Section shall mean 12:01 a.m. of the date that the agency or entity exercising the eminent domain power, takes, title, or the date that it takes physical possession of the portion of the Premises, whichever shall first occur. (5) Any severance damages awarded or payable because only a portion of the Premises is taken by eminent domain shall be the sole and separate property of CITY. Section 9.03 Termination for Partial Taking, Should, during the term of this Lease, title and possession of only a portion of the Premises be taken for any public or quasi -public use under any statute, or by right of eminent domain, TENANT may, at TENANT'S option, terminate this Lease by serving written notice of termination on CITY within ninety (90) days after TENANT has been deprived of actual physical possession of the portion of the Premises taken for such public use. This Lease shall terminate on the first day of the calendar month following the calendar month in which the notice of termination described in this section is served on CITY. On termination of this Lease pursuant to this Article, all subleases and subtenancies in or on the Premises or any portion of the Premises created by TENANT under this Lease shall also terminate and the Premises shall be UJLEASES- LEASE FORMS/LS IIOW-I12W8-05 -23- ® delivered to CITY free and clear of all such subleases and subtenancies, provided, however, that CITY.may, at CITY'S option, by mailing written notice to a subtenant allow any subtenant to attom to CITY and continue such subtenant's occupancy on the Premises as a TENANT of CITY. On termination of this Lease pursuant to this section, however, both CITY and TENANT shall be released from all obligations under this Lease, except those specified in Section 9.02 of this Lease. Section 9.04 Rent Abatement for Partial Taking. Should, during the term of this Lease, title and possession of only a.portion of the Premises be taken under the power of eminent domain by any public or quasi -public agency or entity. and TENANT does not terminate this Lease, then this Lease shall terminate as to the portion of the Premises taken under eminent domain on the date actual physical possession of the portion taken by eminent domain is taken by the agency or entity exercising the eminent domain power. Furthermore, the Rent payable under this Lease shall, as of that time be reduced in the same proportion of the Premises taken by eminent domain bears to the full value of the Premises at that time; provided however, that TENANT shall make a good faith effort to replace any improvements or facilities with equivalent new facilities on the remaining portion of the ® Premises and do all other acts at TENANIT'S own cost and expense required by the eminent domain taking to make the remaining portion of the Premises fit for the use specified in this Lease. V Section 9.05 Conveyance in Lieu of Eminent Domain. A voluntary conveyance by CITY, with the consent of TENANT, of title to all or a portion of the Premises to a public or quasi -public agency or entity in lieu of and under threat by such agency or entity to take the same by eminent domain proceedings shall be considered a taking of title to all or such portion of the Premises under the power of eminent domain subject to the provisions of this Article. Section 9.06 Temporary Taking. • If the possession of the Premises or any portion thereof should be taken under the power of eminent domain by any public or quasi -public agency or entity for a limited period not extending beyond the term of this Lease, then this Lease shall.not terminate (except as provided in this Section 9.06) and TENANT shall continue to perform all its obligations hereunder, except ® only to the extent that TENANT- is prevented from performing such obligations by reason of such taking. TENANT shall be entitled to receive the entire amount of compensation or UJLEASES- LEASE FORMS&S IIOW-112WM5 -24- damages awarded because of such temporary taking. If a temporary taking extends for more than thirty-six (36) months, then TENANT, shall have the right to terminate this Lease, and TENANT shall be entitled to receive, out of the compensation or damages awarded because of such temporary taking, the amount that is attributable to the period of time up until the effective date of TENANT'S termination of this Lease. Article 10 ASSIGNMENT AND SUBLEASING Section 10.01 No Assignment Without CITY'S Consent. Except as provided in this Article 10, TENANT shall not assign or otherwise transfer this Lease, any right or interest in this Lease, or any right or interest in the Premises or any of the improvements that may now or hereafter be constructed or installed on the Premises without the express written consent of CITY evidenced by resolution first had and obtained. Any assignment or transfer by TENANT without the prior written consent of CITY, whether it be voluntary or involuntary, by operation of law or otherwise, is void and shall, at the option of CITY, terminate this Lease. A consent by CITY to one assignment shall not be deemed to be a consent to any subsequent assignment of this Lease by TENANT. CITY shall not unreasonably nor arbitrarily withhold its approval to the assignment or transfer of this Lease to an assignee who is financially reliable and qualified to conduct the business for which this Lease was granted. It is mutually agreed that the TENANT'S qualifications are a part of the consideration for granting of this Lease and said party does hereby agree to maintain active control and supervision of the operation conducted on the Premises. Section 10.02 Change of Ownership as Assignment. For purposes of this Article 10, the following transactions will be deemed to be assignments or transfers: (1) If TENANT is a partnership or limited liability company: (a) A change in ownership effected voluntarily, involuntarily, or by operation of law, within a twelve-month (12-month) period, of twenty-five percent (25%) or more of the partners or members or twenty-five percent (25%) or more of the partnership or membership interests; or (b) The dissolution of the partnership or limited liability company without its immediate reconstitution. UILEASES - LEASE FORMS/LS I IOW-112W 8-05 -25- ® (2) If TENANT is a closely held corporation (i.e., one whose stock is not publicly held and not traded through an exchange or over the counter): (a) The sale or other transfer, within a twelve-month (12-month) period, of more than an aggregate of twenty-five percent (25%) of the voting shares of TENANT (other than to immediate family members by reason of gift or death); or (b) The dissolution, - merger, consolidation, or other reorganization of TENANT. Section 10.03 Application for Assignment. A condition of an assignment 'shall be that TENANT shall file with the CITY an application to assign the leasehold prepared by the prospective assignee. Concurrently with filing the application, TENANT shall pay a reasonable fee associated with the cost pf processing said application, in cash or certified or cashier's check to enable CITY adequately to investigate the proposed assignee's qualifications as a permitted assignee. CITY shall not be required to account for the use of the sum paid. If the proposed assignee's net worth on the date of assignment is not sufficient to reasonably guarantee successful operation of the Premises in compliance with all applicable CITY, County, State and federal requirements, CITY may withhold approval of the assignment or condition it upon TENANT'S guarantee of such assignee's obligations hereunder for such period as CITY deems advisable. Net worth shall mean the amount by which the total of all assets shall exceed the total of all liabilities as determined in accordance with general accepted accounting principles as approved by CITY'S auditor, or other authorized representative or agent. Section 10.04 Probate Transfer of Assignment. If TENANT is an individual, nothing herein contained will prevent the transfer of this Lease by will, or by operation of law under the intestacy provisions of the California Probate Code as it may be amended from time to time. Probate sale of the leasehold interest will not be permitted without the consent of the CITY, evidenced by resolution, first had and obtained. Section 10.05 No Sublease Without CITY'S Consent. . TENANT shall not sublease the whole nor any part of the Premises, or license, permit, or otherwise allow any other person (the employees of TENANT excepted) to occupy or use the Premises, or any portion thereof, without the prior written consent of CITY's Harbor director, or any future successor to the duties of the City's Harbor Director. A consent to one subletting, occupation, licensing or use shall not be deemed to be a consent to any subsequent subletting, UJLEASES-LEASE FORMS/LS IIOW-112W 8-05 -26- occupation, licensing or use by another person. Any sublease or license without CITY'S written consent shall be void, and shall at CITY'S option, terminate this Lease. CITY shall not unreasonably nor arbitrarily withhold its consent to sublet to one who is qualified and financially reliable. CITY'S consent to any occupation, use, or licensing shall be in CITY'S sole and absolute . discretion. Notwithstanding any provisions herein to the contrary, the terms "assignment," "subletting," "occupation," or "use," shall not be construed or interpreted to mean or include the temporary, short term renting or leasing of boat slips, motel, hotel, or apartment accommodations on the premises. Section 10.06 Subtenant Subject to Lease Terms. Any and all subleases shall be expressly made subject to all the terns, covenants, and conditions of this Lease. In no event shall the term of any sublease extend beyond the tern of this Lease. Subject to Section 10.09, termination of this Lease prior to the expiration of this Lease term shall also tenninate any and all subleases. A breach of the tenns of this Lease by a subtenant shall constitute a breach on the part of TENANT and shall subject both the subtenant and TENANT to all the remedies provided to CITY herein and by law. Failure by any subtenant to report Gross Sales.or to pay Percentage Rent due from subtenant shall constitute a breach of this lease. TENANT hereby agrees to and does guarantee payment of such Percentage Rent due by a subtenant under the terms of this lease. Section 10.07 Consent Form Agreement. Prior to any consent by CITY to any sublease hereof, TENANT shall cause to be executed between TENANT and any subtenant an agreement thaking the CITY a third party beneficiary, in a form acceptable to CITY, whereby the subtenant agrees to be bound by all of the terms, covenants and conditions of this Lease. Further, it is agreed by TENANT that any default by the subtenant of any of the terms, covenants and conditions of this Lease shall be deemed to be violations by TENANT of this Lease and that all remedies of CITY for such violation, including termination of this Lease, shall immediately be enforceable by CITY against TENANT. TENANT shall apply any and all monies received from any subtenant first to the payment of obligations of the subtenant to CITY. Section 10.08 TENANT and Guarantor Remain Liable. Prior to approval by CITY to any sublease hereof, TENANT shall agree to be primarily and jointly and severally liable to CITY for all obligations due CITY by any subtenant, including the.payment of rents, and TENANT shall agree that CITY may proceed directly against U:/LEASES-LEASE FORMS/LS IIOW-]12W8-05 -27- ® TENANT for any obligation owing CITY by the subtenant. If this Lease is guaranteed, neither the sublease nor CITY'S approval thereof shall release the guarantor from its obligations pursuant to the guaranty. Section 10.09 Nondisturbance. On the terms set forth below, CITY may enter into agreements with subtenants providing that in the event of any termination of this Lease prior to the expiration date, CITY will not terminate or otherwise disturb the rights of the subtenant under such sublease, but will instead honor such sublease as if such agreement had been entered into directly between Landlord and such subtenant, conditioned upon such subtenant's agreement to attom to Landlord and full performance of all obligations under the sublease in question ("Non -Disturbance Agreement"). CITY agrees to execute a Non -Disturbance Agreement in connection with a particular sublease provided that Tenant provides CITY with a copy of the sublease, and the Non -Disturbance _Agreement is customary in form and substance and otherwise reasonably acceptable to CITY. Article 11 DEFAULT AND TERMINATION 0. Section 11.01 Abandonment by TENANT. Should TENANT breach this Lease and abandon all or any part of the Premises prior to the scheduled expiration of the tern of this Lease, CITY may continue this Lease in effect by not terminating TENANT'S right to possession of the Premises, in which event CITY shall be entitled to enforce all CITY'S rights and remedies under this Lease including the right to recover the Rent specified in this Lease as it becomes due under this Lease. Section 11.02 Termination for Breach by TENANT. All covenants and agreements contained in this Lease are declared to be conditions to this Lease and to the term hereby demised to TENANT. Should TENANT fail to perform any covenant, condition, or agreement contained in this Lease, except for payment of any Rent or other monetary amount due, and such failure is not cured within thirty (30) days after written notice thereof is served on TENANT, then CITY may terminate this Lease immediately, and in the event of such termination, TENANT shall have no further rights hereunder and TENANT shall thereupon forthwith remove from the Premises and shall have no further right or claim thereto and CITY shall immediately thereupon have the right to re-enter and take possession of the Premises, subject only to appropriate legal process. WLEASES- LEASE FORMS/LS I I OW -I 12W"5 -28- Section 11.03 Termination for Failure to Pay Rent. If any payment of Rent is not made as herein provided and such failure to ,pay is not cured within three (3) days after written notice thereof is served on the TENANT, CITY shall have the option to immediately terminate this Lease; and in the event of such termination, TENANT shall have no further right or claim thereto and CITY shall immediately thereupon have the right to re-enter and take possession of the Premises, subject only to appropriate legal process. Section 11.04 Lender May Cure Default. CITY shall afford the Lender under any Leasehold Encumbrance of record with CITY the right to cure any default by TENANT of the covenants, .conditions, or agreements hereof, as provided in Article 5 of this Lease. Section 11.05 Attorneys' Fees. In the event the CITY finds it necessary to retain an attorney.fn connection with the default by.the TENANT or enforcement of any of the terms, conditions, and covenants of this Lease, even though litigation is not instituted, TENANT shall pay to CITY its reasonable. attorneys' fees. Non-payment of attorneys' fees by TENANT within three (3) days after written notice is served on TENANT shall give rise to an independent legal action by CITY to collect same. If CITY is successful in such legal action, CITY shall also be entitled to attorney fees and costs for the collection action. To the extent that CITY is represented by the City Attorney, a reasonable sum for such attorneys' services will be included as attorneys' fees. Section 11.06 Damages for Breach. Should TENANT default in the performance of any, covenant, condition or agreement contained in this Lease and the default be incurable or not be cured within the time period set forth hereinabove, then CITY may terminate this Lease and- (1) Bring an action to recover from TENANT: (a) The worth at the time of award of the unpaid rent which had been earned at the time of termination of the Lease; (b) The worth at the time of award of the amount by which the unpaid rent which would have been earned after termination of the Lease until the time of award exceeds the amount of rental loss that TENANT proves could have been reasonably avoided; U:/LEASES - LEASE FORMS/LS I 1 Ow-112W 8-05 -29- ® (c) The worth at the time of award of the amount by which the unpaid rent for the balance of the term after the time of award exceeds the amount of rental loss that TENANT proves could be reasonably avoided; and (d) Any other amount necessary to compensate CITY for all detriment proximately caused by TENANT'S failure to perform its obligations under this Lease; and (2) Bring an action, in addition to or in lieu of the action described in subparagraph (1) of this Section, to re-enter and regain possession of the Premises in the manner provided by the laws of unlawful detainer of the State of California then in effect. Section 11.07 cumulative Remedies. The remedies available to CITY in this Article shall not be exclusive but shall be cumulative with and in addition to all remedies now or hereafter allowed by law or elsewhere provided in this Lease. Section 11.08 Waiver of Breach. The waiver by CITY of any breach by TENANT of any of the provisions of this Lease shall not constitute a continuing waiver.or a waiver of any subsequent breach by TENANT either of the same or a different provision of this Lease. Section 11.09 Surrender of Premises. On expiration or sooner termination of this Lease, TENANT shall surrender the Premises, and, subject to Section 4.04, all improvements in or on the Premises, and all facilities in any way appertaining to the Premises, to CITY in good, safe, and clean condition, reasonable wear and tear excepted. Article 12 MISCELLANEOUS Section 12.01 Attorneys' Fees. Should any litigation. be commenced between the parties to this Lease concerning the Premises, this Lease, or the rights and duties of either in relation thereto, the. party, CITY or TENANT, prevailing in such litigation shall be entitled, in addition to such other relief as may be granted in the litigation, to a reasonable sum as,and for its attorneys' fees in such litigation, which shall be determined by the court in such litigation or in a separate action brought for that ® purpose. The "prevailing" party shall mean the party who obtains substantially the relief sought UJLEASES- LEASE FORNIS/LS 11OW-112W S-05 -30- by that party. To the extent that CITY is represented by the CITY Attorney, a reasonable sum for such attorneys' services will be included as attorneys' fees. Section 12.02 Notices. Any and all notice or demands by or from CITY to TENANT, or TENANT to CITY, shall be in writing. They shall be served either personally, or by frst class mail. Any notice or demand to CITY may be given to: with a copy to: Harbor Director 1275 Embarcadero Morro Bay, California 93442 City Manager of the City of Morro Bay City Hall 595 Harbor Street Morro Bay, CA 93442 Any notice or demand to TENANT may be given at: Great American Fish Company, Inc. ATTN: George Leage PO Box 1739 Morro Bay CA 93443-1739 Such addresses may be changed by written notice by either party to the other party. Section 12.03 Governing Law and Jurisdiction. This Lease, and all matters relating to this Lease, shall be governed by the laws of the State of California in force at the time any need for interpretation of this Lease or any decision concerning this Lease arises. CITY and TENANT consent to exclusive personal and subject matter jurisdiction in the Superior Court of the State of California in and for the county where the Premises are located; and each party waives any claim that such court is not a convenient forum. Each party hereby specifically waives the provisions of California Code of Civil Procedure Section 394, and any successor statute thereto. Section 12.04 Binding on Successors. Subject to the provisions herein relating to assignment and subletting each and all of the terms, conditions, and agreements herein contained shall be binding upon and inure to the benefit U:/LEASES - LEASE FORb1S/IS IIOW-112W 8-05 -31- ® of the successors and assigns of any and all of the parties hereto; and all of the parties hereto shall be jointly and severally liable hereunder. Section 12.05 Partial Invalidity. Should any provision of this Lease be held by a court of competent jurisdiction to be either invalid, void, or unenforceable, the remaining provisions of this Lease shall remain in full force and effect unimpaired by the holding. Section 12.06 Sole and Only Agreement. This Lease, including all exhibits incorporated by reference, constitutes the sole and only agreement between CITY and TENANT respecting the Premises and the leasing of the Premises to TENANT. Any other agreements or representations respecting the Premises and their leasing to TENANT by CITY, which are not expressly set forth in this Lease, are null and void. The lease terms herein specified correctly set forth the obligations of CITY and TENANT as of the date of this Lease. No modification, amendment, or alteration of this Lease shall be valid unless it is in writing and signed by both parties. ® Section 12.07 Modification. This agreement shall not be modified except pursuant to a written agreement executed by the MAYOR and CITY CLERK pursuant to prior CITY Council approval. Notwithstanding CITY Council approval, no agreement shall become effective until such agreement is in fact executed by the MAYOR and CITY CLERK. TENANT understands that this agreement may .not be modified by oral statements by any person representing the CITY including the MAYOR and CITY CLERK. TENANT specifically agrees not to rely on oral statements, purported oral waivers, or purported oral modifications and agrees not to rely upon purported written modifications unless they meet the requirements of this paragraph and are approved in writing pursuant to formal City Council action and a subsequent written modification signed by the MAYOR and CITY CLERK. If the title of any person authorized to act for. CITY under this Lease shall be changed during the term of this Lease, then the person who succeeds to substantially the same responsibilities with respect to the CITY shall have the authority to act for CITY under this Lease. Section 12.08 Time of Essence. ® Time is expressly declared to be the essence of this Lease. UJLEASES- LEASE FORMSIS I I ON-112W8-05 -32- Section 12.09 Memorandum of Lease for Recording. CITY and TENANT shall, at the request of either at any time during the term of this Lease, execute a memorandum or "short form" of this Lease, which shall describe the parties, set forth a description of the leased premises, specify the term of this Lease, and incorporate this Lease by reference. Article 13 SPECIAL PROVISIONS PECULIAR TO THIS LEASE SITE The following provisions apply to this Lease site only: Section 13.01 Option to Extend Lease For Twenty (20) Years TENANT has submitted plans to renovate the improvements on the Premises as outlined in CUP application # 0-58. CITY and TENANT agree that TENANT will have an option to extend this Lease for a period of twenty (20) years beyond the termination date of June 20, 2025 (new termination date of June 20, 2045) if TENANT obtains City Council precise plan approval of CUP #0-58 prior to January 1, 2009 and constructs the improvements to the premises outlined in CUP #0-58 prior to January 1, 2012 as evidenced by issuance of a Certificate of Occupancy from the CITY Public Services Department. TENANT shall have the option to extend this lease for twenty years only if TENANT constructs the improvements set forth above prior to January 1, 2012 and said option shall expire one year thereafter on January 1, 2013. Section 13.02 Tenant to Make Restrooms Available to the General Public TENANT shall make the restrooms on the Site available to the General Public at all times the restaurant is open at a minimum. Section 13.03 Construction of Improvements CITY and TENANT agree that TENANT will construct improvements to the premises as outlined in CITY CUP #0-58 and that failure to complete such improvements and comply with all conditions of said CUP by January 1, 2012 shall be a default of this Lease agreement and subject to termination by the CITY as outlined in Article 11 herein. TENANT acknowledges that said CUP may require an evaluation of the, structural adequacy of the existing revetment to insure structural integrity with the proposed development. TENANT shall be required to make revetment repairs, if any are required, as determined by the structural adequacy evaluation and the standards of the City Engineer. TENANT further acknowledges that said CUP may require repair or replacement of portions of the dock, access ways, drainage systems, frontage U:/LEASES-LEASE FORM S/LS IIOW-112W"5 -33- ® improvements to the standards of the City Engineer and TENANT aggress to meet these conditions through review and revision of final building plans prior to issuance of the building permit. TENANT agrees to obtain the building permit and commence construction of the improvements outlined in CUP #0-58 by July 1, 2010 and to complete the improvements in compliance with CUP #0-58 as evidenced by issuance of the Certificate of Occupancy by January I, 2012. During construction of the improvements TENANT shall take all measures to: Avoid any pollution of the atmosphere or littering of land or water or by or originating in or about the premises or caused by TENANT's construction activities; Keep the noise level on the premises to a minimum so that persons in the neighborhood will be able to comfortably enjoy business and facilities in the area; Prevent any pollutants including petroleum products from entering Morro Bay; Avoid negative impacts on surrounding businesses; Prohibit storage of materials or equipments on public property and avoid parking or ® traffic delays or impairment without prior consent of the CITY. EXECUTED on . 2005, at County, California. CITY OF MORRO BAY GREAT AMERICAN FISH COMPANY, INC. a California General Corporation By: GEORGE . AG , PRESIDENT ATTEST: UJLEASES- LEASE FORDIS/AS IIOW-112W8-05 -34- EXHIBIT A 5ce Shccl S of Is )oL.00j 52.e0' 1 W W i N j N �N n N W I I I `VI � � 1 p n co °o I ' 3100' qil y 4 ul�Ir N Nv' � I �/iy,X�• O 'I I 20' v n U N Z w O 1 snap I S � I W •AI1 I szoa' � /O/y�'u� g W b I I ' N V .- I N3L'/5'E /OZOO 1 SO.gJ' SI00 1 � O O V iC m I f I 1 Sao/' SF.00' / /.�+i uv ace ��I✓X•/i't ti /O/nn N V1 4 I I I_ _ _ /Ll.eo• 1 I I 1 1 I I I G U C l EXHIBIT B CITY OF NIORRO BAY 595 Harbor St. Morro Bay, CA 93442 (805)772-6200 FAX (805) 772-7329 INSURANCE REQUIREMENTS FOR LESSEES (NO AUTO RISKS) Lessee shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the Lessee's operation and use of the leased premises. The cost of such insurance shall be borne by the Lessee. Afininium Scope of Insurance Coverage shall be at least as broad as: 1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001). 1 2. . Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance (for lessees with employees). 3. Property insurance against all risks of loss to any tenant improvements or betterments. Afininrum Limits of Insurance Lessee shall maintain limits no less than: Spec C General Liability: 2. Employer's Liability: 3. Property Insurance: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate.limit shall be twice the required occurrence limit. $1,000,000 per accident for bodily injury or disease. Full replacement cost with no coinsurance penalty provision. City of Morro Bay Insurance Requirements for Lessees Deductibles and Setf-Insured Retentions Any deductibles or self -insured retentions must be declared to and approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self -insured retentions as respects the City, its officers, officials, employees and volunteers; or the Lessee shall provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration and defense expenses. Other Insurance Provisions The general liability policy. is to contain, or be endorsed to contain, the following provisions: 1. The City, its officers, officials, employees, and volunteers are to be covered as insureds with respect to liability arising out of ownership, maintenance or use of that part of the premises leased to the Lessee. 2. The Lessee's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Lessee's insurance and shall not contribute with it. 3. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled, except after thirty (30) days' prior written notice by certified mail, return receipt. requested, has been given to the City. Acceptability oflnsurers Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII. Verification of Coverage Lessee shall furnish the City with original certificates and amendatory endorsements effecting coverage required by this clause. The endorsements should be on forms provided by the City or on other than the City's fornis, provided those endorsements or policies conform to the requirements. All certificates and endorsements are to be received and approved by the City before use of City premises. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications at any time. 11 Spec C City of Morro Bay Insurance Requirements for Lessees ® Sub -lessee 6 I Lessee shall include all sub -lessees as insureds under its policies or shall furnish separate certificates and endorsements for each sub -lessee. All coverages for sub -lessees shall be subject to all of the requirements stated herein. Insu O,SpecC Rev. WO Spec C City of Morro Bay . Insurance Requirements for Lessees Reproduction of Insurance Services Office, Inc. Form INSURER: ISO Form CG 20 11 11 85 (Modified) POLICY NUMBER: Commercial General Liability ENDORSEMENT NUMBER: THIS ENDORSEMENT CHANGES THE POLICY, PLEASE READ IT CAREFULLY. ADDITIONAL INSURED -- MANAGERS OR LESSORS OF PREMISES This endorsement modifies insurance provided under the following COMMERCIAL GENERAL LIABILITY COVERAGE PART. SCHEDULE 1. Designation of Premises (Part Leased to You): 2. Name of Person or Organization (Additional Insured): City of Morro Bay 3. Additional Premium: (If no entry appears above, the information required to complete this endorsement will be shown in the Declarations as applicable to this endorsement.) WHO IS AN INSURED (Section 11) is amended to include as an insured the person or organization shown in the Schedule, but only with respect to liability arising out of the ownership, maintenance or use of that part of the Premises leased to you and shown in the Schedule and subject to the following additional exclusions: This insurance does not apply to: 1. Any "occurrence" which takes place after you cease to be a tenant in that premises. 2. Structural alterations, new construction or demolition operations performed by or on behalf of the person or organization shown in the schedule. Modifications to ISO form CG 20 11 11 85: 1. The Insured scheduled above includes the Insured's elected or appointed officers, officials, employees and volunteers. 2. This insurance shall be primary as respects the Insured shown in the schedule above, or if excess, shall stand in an unbroken chair of coverage excess of the Named Insured's scheduled underlying primary coverage. In. either event, any other insurance maintained by the Insured scheduled above shall be in excess of this insurance and shall not be called upon to contribute with it. 3. The insurance afforded by this policy shall not be canceled except after thirty days prior written notice by certified mail return receipt requested has been given to the City. Signature -Authorized Representative CG 20 11 11 85 Insurance Services Office, Inc. Form (Modified) Insurance\Fomi#3 Rev. 8/01 ® RESOLUTION NO.33-05 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY ACCEPTING $100,000 FROM THE STATE OF CALIFORNIA CMZENS OPTION FOR PUBLIC SAFETY (COPS) PROGRAM THE CITY COUNCIL City of Morro Bay, California WHEREAS, Government Code Sections 30061 through 30064 is providing supplemental funds for front line municipal police services after the City adopted its 2005-2006 budget; and WHEREAS, it is proposed that the Police Chief be given discretion to use these funds during the grant period for other purposes authorized by the grant in the event of a change in department staffing and priorities; and WHEREAS, the required public hearing has been held. NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Morro Bay hereby authorize the expenditure , of those funds in accordance with the Government Code as recommended by the Police Chief. ® PASSED AND ADOPTED by the City Council of the City of Morro Bay, California, at a regular meeting held on the 12 of September 2005, by the following vote: AYES: Bagley, Peirce, Peters, Winholtz NOES: DeMeritt ABSENT: None ® RESOLUTION NO.32-05 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, ESTABLISHING APPROPRIATIONS LIMIT FOR FISCAL YEAR 2005 - 2006 FOR THE CITY OF MORRO BAY THE CITY COUNCIL City of Morro Bay, California WHEREAS, Article XIII B of the California Constitution establishes a limitation on appropriations of funds by the City; and WHEREAS, the City has calculated the appropriations limit in accordance with the provisions of Article XIII B of the California Constitution; and WHEREAS, Proposition I I I of June, 1990, requires an annual election of the method of measurement of growth in both PRICE and POPULATION; and WHEREAS, the measurement of PRICE is most advantageous using the growth in the California Per Capita Personal Income measurement; and WHEREAS, the measurement of POPULATION is most advantageous using the growth in San Luis Obispo County population. ® NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Morro By elects to use as measurements of growth, the California Per Capita Personal Income and the County of San Luis Obispo Population growth, and establishes the Fiscal Year 2005-2006 Appropriations Limit at $16,864,329 from the proceeds of taxes. PASSED, APPROVED, AND ADOPTED, by the City Council of the City of Mono Bay, on the 12th day of September, 2005, by the following vote to wit: AYES: Baxley, DeMeritt, Peirce, Peters,,Winholtz NOES: None ABSENT: None HIM I `. :'11 �;. El ATTACHMENT A 0 O 0 eO J n n Q ® c m C m ' 0 L av c 0 N m N rn m rn t 7 m N (7 m O m m y m m m N m m Q N m Q f D l7 L0 r O m m p r N C I Q Orr Q fh Q N ID m QOrNI'lmmQ r � r O rn r Q O m m OMN M r a N m.- �[1 t7 mm f0 In Q M r�mroCJm n Q Q o m m m g m m r r m m a6 m m o o N Ia Q Q m m m N m m n N N m rn O N mV Q r p rnO O N r rn N ¢_ Im') O m rn m P m VO] Imp P m N C7 m M m N rn m lO Q O O O m m 0 Q 0 m m O m m O O N m Z mmm M N C] y O m mN r m Om r r Q mm.-I�m lh C4 r 0 lnm 0 t7 o N O O V Z O m N O Q ONO Q Q Q Q Q Q r � N lh m Q Z r m Q r a r o$a�m n m m o r m o ni �i vi oiv Z r m m m m a D m m m m m m m rn m m m m m 000000 N t 7 Q m m m rnmmmmrnmmmmrnmmmmmmmmrno NW N N> NW N>m NYW N mnm}I0tl3.1 mrrnYlm0N1 0mm>ILW0N mmYIW0NL' NrnYIm0NLL Mm>Im0NL mmmm000C mm 0Nmo000mmmmmm mmm mYIW0NL mYI0NL NNNNN W 00 Wza 0 0 0 0 0 0 0 YIm0L YIW0L YIm0L >Im0L YI00L Ylm0L, 1--mm YY>Y N VIN NN N N N N IN IL IL IL lL IL tL IL lL I1. lL IL ATTACHMENT B 11 C O a m O O co O O LL O m 0 W 0 U TTTTTTT 0 a0 O co W O O O n(o W W wo O O N M N O N 0 0 o c7 n n o w ao o ao ou°Di roi NnN� N N N IR x x X x x x X x M on wi m < O (7 N O O O I Cl)O N co IT n N N co x x x x x X M x m w W 0 Z m E �O \ x m T 0 � 0 m 0 6 j W N ~ � m C E mN m p m U mX m a m C c Op m mmmmcr(DOWm m 0 O > Z m mmO0.2mU m C LL OU mOLO—mxMm CE ~mm ~G1 LLmJLmCmx jE m� Hm>w5 Cm — m06 UN N _ p m C V C V O (� O N — N C O N N m O ` m O C d LL LLN .m. HDca11 �fnHKi 2C7 LL 2 X O N N O O V a EL EL ATTACHMENT C l A Enclosure II Annual Percent Change in Populafion Minus Exclusions (') January 1, 2004 to January 1, 2005 and Total Population, January 1, 2005 Total County Percent Channe — Population Minus Exclusions — Population city _ 200=2D05 1-1-04 1-1-05 1-1-2005 SAN LUIS OBISPO ARROYO GRANDE -024 16.577 16,537 16,537 ATASCADERO .0..^,i 26.193 26.276 27,596 EL PASO DE ROBLES 31:5 26.892 27,713 27.964 GROVER BEACH -0.15 13246 13.226 13228 MORRO BAY -0tx 1n 91.0 in ;I 1n.r, PISM,O BEACH -0B3 9.716 8,644 8,644 SAN LUIS OBISPO OBi 44,183 44,519 44,519 UNINCORPORATED 1.76 103.495 105,339 11 i,726 . COUNT'TOTAl 11c 249.8m. 252,767 260,727 (') Exclusions include resid=_ms on iederal military installaiions and croup ouaners residence in state mental institutions and sate and federal Correctional insmutions. Pao- 1 ATTACHMENT D E May 1, 2005 Enclosure I A. Price Factor: Article XIII B specifies that local jurisdictions select their cost -of -living factor to compute their appropriation limit by a vote of their governing body. The cost -of -living factor provided here is per capita personal income. If the percentage change in per capita personal income is selected, the percentage change to be used in setting the 2005-2006 appropriation limit is: Per Capita Personal Income Fiscal Year Percentage change (FY) over prior year 2005-2006 5.26 B. Following is an example using sample population change and the change in California per capita personal income as growth factors in computing a 2005-2006 appropriation limit. 2005-2006: Per Capita Change = 5.26 percent Population Change = 1.50 percent 26 + 100 Per Capita converted to a ratio: 5.100 = 1.0526 Population converted to a ratio: 1.50+100= 1.015 100 Calculation of factor for FY 2005-2006: 1.0526 x 1.015=1.0684 E E C, J RESOLUTION NO.31-05 RESOLUTION AND EASEMENT AGREEMENT GRANTING TO 460 CHORRO CREEK ROAD, APN 073-131-012, A 4-FOOT ACCESS EASEMENT FROM CHORRO CREEK ROAD UPON CITY OWNED PROPERTY, APN 073-131-010 APN 073-131-010: A PORTION OF LOT 3, MANFORD BROWN LITTLE RANCHES, ACCORDING TO MAP RECORDED MARCH 18,1927 IN BOOK 39 PAGE 90 OF MAPS APN 073-131-012: Parcel 1 and 12 of Project No. M05-0033, File No. SUB2004-00244 The City Council, City of Morro Bay, California WHEREAS, the owner of 460 Chorro Creek Road has been using a 14-foot PG&E easement and a portion of the City property to access the home at said address; and WHEREAS, this additional easement is needed to fulfill a San Luis Obispo requirement for emergency fire access; and WHEREAS, granting of said easement by the City will not create additional financial burden to the City, nor constitute a gift of City funding or property; and WHEREAS, the Owner has agreed to the terms and conditions of the attached Easement Agreement and referenced map (Exhibit B). NOW, THEREFORE, BE IT RESOLVED by the City Council of Morro Bay does grant on behalf of the public a 4-foot easement from Chorro Creek Road upon City owned property for ingress and egress to 460 Chorro Creek Road pursuant the attached Easement Agreement. PASSED AND ADOPTED, by the Morro Bay City Council at a regular meeting thereof held on the 8th day of August 2005 by the following vote: AYES: Baxley, DeMeritt, Peirce, Peters, Wi NOES: None ABSENT: None ATTEST: " & aµ Q BRIDGE BAUER, City Clerk ® Recording requested by and when recorded return to: CITY OF MORRO BAY 595 Harbor Street Morro Bay, CA 93442 805-772-6261 EASEMENT AGREEMENT RECORDER'S USE This Agreement is entered into on _ by and between The City of Morro Bay, hereinafter referred to as "Grantor." and Lawrence and Pamela Flood, hereinafter referred to as "Grantee." Grantor is the owner of certain real property situated in the County of San Luis Obispo, ® State of California (hereinafter referred. to :as: the "Servient Tenement") and more particularly described as the parcel of land in said County and State described in the Grant Deed to the City of Morro Bay dated February 12, 1971 and recorded March 9, 1971 in Book 1608 of Official Records, Page 13, in the office of the County Recorder of said County (A.P.N. 073-131-010). 2. Grantee is the owner of two certain real properties situated in the County of San Luis Obispo, State of California, (hereafter referred to as the "Dominant Tenements"), and more particularly described as follows: Parcel One — the parcel of land in said County and State described in the Voluntary Merger recorded February 23, 2005 as Document No. 2005-014044 of Official Records in the Office of said County Recorder; and Parcel Two — the parcel of land in said County and State described in the Certificate of Compliance recorded February 23, 2005 as Document No. 2005-014043 of Official Records in the office of said County Recorder (both parcels being designated ® as A.P.N. 073-131-012). 3. Grantee desires to acquire certain rights in the Sen Tent Tenement. Pape 1 of 4 ® 4. In consideration for reimbursement for costs incurred, Grantor desires the sum of non- refundable five hundred dollars ($500.00) payable by Grantee to Grantor, Grantor grants to Grantee an easement, subject to the terms of this Agreement. 5. This easement is appurtenant to the Dominant Tenements. 6. The easement granted in this Agreement is an easement for ingress and egress over and across the northerly 4-foot of the Servient Tenement, and is more particularly described and graphically shown on Exhibits "A" and "B" attached hereto and made a part hereof. This easement shall be used solely for road purposes by Grantee and Grantee's heir and assigns. For purposes of this Agreement, "ingress and egress" means use for and by moving vehicular traffic for any purpose connected with the use of the Dominant Tenements. This right of ingress and egress does not include parking. No parking shall be permitted within the Easement. ® 7. The easement granted in this Agreement shall be for and will continue for so long as it is used for the purposes described above. S. Grantee's use of the easement granted in this Agreement shall be exclusive. Notwithstanding the terms of this provision, Grantor reserves the right to use the Servient Tenement in a manner consistent with Grantee's free use and enjoyment of the easement. 9. Grantee and Grantee's heirs and assigns shall maintain the easement in good repair, at Grantee's sole cost and expense. 10. The Grantee and Grantee's heirs shall defend, indemnify and save harmless Grantor, its officers, agents and employees from any and all claims, demands, damages, costs, expenses, or liability occasioned by the performance and attempted performance of these provisions hereof, or in any way arising out of or related to this Agreement, including, but not limited to, inverse • condemnation, equitable relief or any wrongful act or any negligent act or omission to act on the part Page 2 of 4 ® of the Grantee or Grantee's heirs, agents, employees, or independent contractors directly responsible to the Grantee or Grantee's heirs, providing further that the foregoing shall apply to any wrongful acts, or any activity or passively negligent acts or omission to Grantee's agents, employees or independent contractors. Nothing contained in the foregoing indemnity provisions shall be construed to require the Grantee to indemnify the City against any responsibility or liability in contravention of Section 2782 of the Civil Code. 11. If any legal action or proceeding arising out of or relating to this Agreement is brought by either party to this Agreement, the prevailing parry shall be entitled to receive from the other party, in addition to any other relief that may be granted, the reasonable attorneysfees, costs and expenses incurred in the action or proceeding by the prevailing party. 12. In lieu of monetary compensation and to mitigate increased security impacts, Grantee ® agrees to hire a licensed fencing contractor to install an 8-foot high chain link enclosure 15-foot by 15-foot, with slats, 3-strand barbed wire top, and a 3-foot gate around an adjacent City well to the satisfaction of the City. Said work shall be completed prior to the recordation of the easement. 13. Grantee shall be responsible for moving the existing barbed wire fence located along the northerly boundary of Servient Tenement lot, if required by the County of San Luis Obispo. 14. Grantee shall prepare a "Deed Restriction" to be recorded on parcel i of the Voluntary Merger of APN 073-131-012 Portion (Project M05-0033) that restricts any new development from constructing and operating any septic tank, leach field, or hazardous waste disposal within 300-feet of any City well unless authorized by the Grantor. The Deed Restriction shall also request any new development to adhere to City of Morro Bay policies on potable water conservation measure. 15. This Agreement constitutes the entire agreement between Grantor and Grantee relating ® to the above easement. Any prior agreements, promises, negotiations or representations not expressly Page 3 of 4 set forth in this Agreement are of no force and effect. Any amendment to this Agreement shall be of no force and effect unless it is in xNTiting and signed by the Grantor and Grantee. A Dat I 05 Date % -.*� y Date State of California ) County of San Luis Obispo } ® On v.A-r q ; 1)0S fig , before me, Notary Public for the State of lifomia, personally appeared Janice Peters, ( ) personally known to me or ( ) proved to me on the ba s of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that she executed the same in her capacity, and that by her signature on the instrument the person or the entity upon behalf of which the person acted, executed the instrument. Witness my hand a�nd official seal. Notary Public u State of California } County of San Luis Obispo } Zooms On �� 2 tS beforamg'-sTda.erW. X �/</-✓CE y , Notary Public for the State of California, personally appea Lawence and Pamela Flood, ( ) personally known to me or ( ) proved to me on the basis of satis . ence to be the persons whose name are subscribed to the within instrument and acknowledged to me that they executed the same in their capacities, and that by their signatures on the instrument the persons or the entity upon behalf of which the persons acted, executed the instrument. Witness my hand and official seal. Notary Public See Attachment for Notary Paee 4 of 4 E STATE OF CALIFORNIA ) ) ss. COUNTY OF SAN LUIS OBISPO ) On August 9, 2005, before me, Bridgett Bauer, City Clerk for the City of Morro Bay, personally appeared Janice Peters, Mayor for the City of Morro Bay, personally known to me to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person or the entity upon behalf of which the person acted, executed the instrument. WITNESS my hand and official seal. Bridgett Ba r, City Clerk City of Morro Bay, California 11 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California } County of S ,� 4 cJiS5 O-, /5100 ss. , � On'Zi)K, 2Z 2-OD� before me,-•sTyWr'V7 /, X" oau Nm u�TO a M J. & personally appeared /Wj )tor ❑ personally known to me Y3'proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) j/are STUARTA.MMNLEY subscribed to the within instrument and COMM. #1364827 W acknowledged to me that J0411e/they executed NOTARY PUBLIC -CAUFORNIA q the same in Diller/their authorized SAN LUIS OBISPO COUNTY Cn capacity(ies), and that by p(s/Wr/their MYComm.Fxfim&iA'14.2W6 signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. YJIT #SS my hanZajpffi;�z seal. siqun d un'P,Or< Though Me Worma6on below is not required by law, d may prove valuable to persons re4ing on the document and could prevent fraudulent removal and realtachment of this loan to another document Description of Attached Document Title or Type of Document: Document Dale: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer Signer's Name: O Individual Top of auno here O Corporate Officer —Title(s): ❑ Partner —0Limited 0General ❑ Attorney -in -Fact ❑ Trustee ❑ Guardian or Conservator O Other. Signer Is Representing: 03%9 NalTal llNary Alwda6an•V150b 6o10 An-P.O. Ba�tadt•f}uts-a:t CA61313-2o@•www.�laWM qry Pm N 6607 Heohe..t TOF. 1�76d 7 0 Exhibit "A" LEGAL DESCRIPTION An easement for ingress and egress over and upon the northerly four (4) feet of the parcel of land in the County of San Luis Obispo, State of California, described in the grant deed to the City of Morro Bay dated February 12, 1971 and recorded March 9, 1971 in Book 1608 of Official Records, Page 13, in the office of the County Recorder of said County; said parcel of land being portion of Lot 3 of Manford Brown Little Ranches in the County San Luis Obispo according to the map filed in Book 3 of Maps, Page 90, records of said County and State, and more particularly described as follows: Beginning at the northwest comer of said Lot 3 on the southerly right of way line of Quintana Road (formerly known as the San Luis Obispo and Cambria Road) as said Lot and Road are shown and delineated on said map; thence southerly along the west line of said Lot 3, South 3 *01' West, 1532.5 feet to the southwest comer of said Lot 3; thence easterly along the southerly line of said Lot 3, North 73 028' East, 161.8 feet; thence continuing along said southerly line, North 53*41' East. 191.4 feet to the southeast comer of said Lot 3; thence northerly along the east line of said Lot 3. North 3 `01' East, 1357.1 feet to the northeast comer of said Lot 3 on the southerly right of way line of said Quintana Road; thence westerly along the north line of said Lot 3, North 86°59' West, 300.5 feet to the Point of Beginning; excepting therefrom the northerly 738.80 feet of said Lot 3 thereof. ® The above described easement, containing 1200 square feet of land, more or less, is graphically shown on Exhibit `B" attached hereto and made a part hereof. END DESCRIPTION SURVEYOR'S STATEMENT This legaldescription was prepared by me or under my direction in conformance with the requirements of the Land Surveyor's Act. �/ / uumm. � • � �•^'✓/L��Y lulu 25.2005 Wm. E. Touchon Date L.S.4845 Expires:9/30/2006 jF ; ;,- o: 3*13 LS.4845 d a ,n.. EXP. 9/8Qf06�.. OF f' 11 C f February 9, 2005 Mr. Frank Cunningham City Engineer City of Morro Bay Morro Bay, CA 93442 Re: Lawrence L. Flood Jr. Pamela H Flood Owners of Parcel APN 073-131-612 Dear Mr. Cunningham: Per our conversation, we are submitting this letter of intent. We own a home at 460 Chorro Creek Rd. situated on two lots (APN: 073-131-012). The County agrees that we are entitled to sell off one of the lots except that the driveway to the house is too narrow. It is only 14' wide and the County requires 18' for two-way traffic. The City of Morro Bay owns the property adjacent to our driveway. We are are requesting that the City of Morro Bay grant us a 4' easement to make our driveway conform to County standards. Thank you for your con Sincerely, Larry L. Flood, Jr. Attachment: Assessors Map County of San Luis Obispo, Ca. Book 073, Page 131 RESOLUTION No. 30-05 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA ® OF ITS INTENTION TO SELL CITY -OWNED REAL PROPERTY LOCATED AT SEC CORAL/SAN JACINTO STREET, LOT 124, TRACT 1996, MORRO BAY, CALIFORNIA THE CITY COUNCIL CITY OF MORRO BAY, CALIFORNIA WHEREAS, the City purchased real property located at SEC Coral/San Jacinto Street, Lot 124, Tract 1996, Morro Bay, California in September 1996; and WHEREAS, said property was dedicated to the City as a possible site for a fire substation. Subsequently, the City has determined that the property at SEC Coral/San Jacinto Street, Lot 124, Tract 1996, Morro Bay, California, for the common benefit of its citizens is not suited for a fire substation and better locations exist for a fire substation. Any funds derived from the sale shall be dedicated to fire stations; and WHEREAS, pursuant to Government Code section 37350, the City wishes to sell the City - owned real property located at SEC Coral/San Jacinto Street, Lot 124, Tract 1996, Morro Bay, California, for the common benefit of its citizens. Now, THEREFORE, be it resolved that the City Council of the City of Morro Bay notices the citizens of the City of Morro Bay of its intention to sell City -owned real property located at SEC ® Coral/San Jacinto Street, Lot 124, Tract 1996, Morro Bay, California; and BE IT FURTHER RESOLVED, that the City shall hold a hearing on July 25, 2005 for any person who wishes to protest the sale of the City -owned property located at SEC Coral/San Jacinto Street, Lot 124, Tract 1996, Morro Bay, California; and BE IT FURTHER RESOLVED, that pursuant to Government Code section 37422, the City has posted proper notice and proper publication of this Resolution in the Telegram Tribune; and BE IT FURTHER RESOLVED, that on July 25, 2005 at the regularly scheduled Council meeting, final action shall be taken on this matter. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the I lm day of July, 2005 by the following vote: AYES: NOES: ABSENT: Baxley, DeMeritt, Peirce, Peters, Winholtz None None ATTEST: BRtDGETT B ER, City Clerk ® RESOLUTION NO. 29-05 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, ADOPTING THE OPERATING BUDGETS AND MAKING APPROPRIATIONS FOR FISCAL YEAR 2005-2006 FOR THE CITY OF MORRO BAY THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay is required to appropriate and expend public funds to conduct its business activities on a day-to-day basis; and WHEREAS, the City Council finds and determines that the efficiency, economy and effectiveness of City government operations would be substantially impaired if such appropriation were not made; and WHEREAS, Section 37208 of the California Government Code provides that payments or demands conforming to a budget approved by ordinance or resolution need not be audited by the City Council prior to payment; and WHEREAS, the City Council recognizes that Capital Improvement Projects authorized and approved in prior fiscal years (1995-96 through 2004-2005) may not be completed by June 30, 2005; and WHEREAS, the City of Morro Bay uses a two-year budget format that included requests for Fiscal Years 2005-2006 and 2006-2007; and WHEREAS, the City Council is only addressing the budget requests for Fiscal Year 2005- 2006; and WHEREAS, the City Council acknowledges the continuing efforts of staff to operate within an approved budget and manage savings wherever feasible. NOW THEREFORE, BE IT RESOLVED: .1) The Fiscal Year 2005-2006 Operating Budgets are adopted as presented in the proposed budgets and subsequent amendments (attached hereto) and any amendments made at this ® meeting; and ® City Council Resolution No. 29-05 June 28, 2004 C 2) Staff is directed to prepare and publish a final budget document; and 3) The City Manager is authorized to transfer appropriations within the adopted budget so long as the appropriations will not have a significant policy impact and the total authorized appropriations are not exceeded. However, the City Manager may not transfer appropriations from a Fund, Department, Capital Project or Capital Outlay item without City Council approval; and 4) The City Council authorizes and directs the transfer of the balances of capital projects approved in fiscal years 1995-96 through 2004-2005, but not completed by June 30, 2005, to the Capital Improvement Project Fund(s) for Fiscal Year 2005-2006; and 5) The City Council directs that a hiring freeze for all positions in the workforce shall continue indefinitely but reserves the right to review each case as it arises to conform to the adopted layoff policy. PASSED, APPROVED, AND ADOPTED, by the City Council of the City of Morro Bay, on the 27th day of June 2005, by the following vote to wit: AYES: Baxley, Peirce, Peters NOES: DeMeritt, Winholtz ABSENT: None BRIDGE AVER, City Clerk ® City of Morro Bay_ Fiscal Year 2005-2006 Budget Summary of Budgeted Revenues And Expenditures By Fund ATTACHMENT B FY 2005-2006 Fund Name Revenues Expenditures Balance C General Fund 9,082,949 9,389,474 -306,525 Equipment Replacement Fund 33,792 8,000 25,792 Emergency Reserve Fund 0 0 CDBG Loan Repayment Fund 0 0 Gas Tax Fund 220,000 220,000 0 Traffic Safety Fund 55,000 55,000 0 Parking In -Lieu Fund 80,000 -80,000 Transit Fund 444,564 444,566 -2 Water Revenue Fund 3,854,200 1876,768 -22,568 Wastewater Collection Fund 1,650,256 1,650,256 0 Harbor Fund 1,415,000 1,415.000 0 South T-Pier Fund 0 0 0 CC1 Slip Fund 0 0 0 North Point AD 5,645 5,645 - 0 Cloister AD 148,944 148,944 0 WWTP 1,541,409 1,541,409 0 Capital Improvement Project Fund 0 0 0 Water Capital Accum Fund 0 0 0 Wastewater Collection Accum Fund 01 264,506 -264,506 1 18,451,7591 19,099,568 -647,809 ® A N moom�mmooWo�omNOWoo�r00000 m o o m o Q o 0 0 o D onomomono o m m o o N Q r N o o n o W r W o Q m o m 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O O O O O O O 00 0 0 00 O O O O O O O O O O O O O O O O O O O O O O O O N O P N W m O O N Q 0000000000000000000000000000000000000 0 W roQNnN�ooroWaNm0000�QooOoono-onom000 n N Q MO m O W ml7N W O lh Or00 00 n O It) W m 0LQ m m O W n vl W o o Q o 0 0 0 o Q o m m o Q o 0 0 0 0 0 0 0 0 0 0 0 0 0 o W o 0 0 0 o W Q QooNmmo m�nr no W m m00000 oom c� v> m l7 N Yf Q m m O O N r m t7 O O m O n m O O W 0 0 Cf O O O O O Q O N O 0 0 0 0 0 0 N wig W t•I O Q m� n f7 Q O m N W n W m mN n O ON Q ma O� m n O m m O m W O n r 1n m w m 0 N W m O m Q n N O m m CJ N n m n Q N Q f7 N f7 r a LL m `v c U m 0 r 1 1 ! c 1 0 1 U m c n C p c Q 'm LL 2 g E$ m 0.2 � w N O $5m ' m � Om m m n" %moa�oco Jm- Qta- Uioi o E¢ m2 aa oO iumwmcO0Ea5a$LLa$Uo. taSmmooc mE .m� madt um„a,.6 oo d m 00,EESo�o �mmmo_o a�OOnawwa>�Mow>x>1mm ® A Z _ z c LL LL F IL X � J Q 0 � IWi J aN = Q Y Q LL � � a ® A 81; �a m 0 n m p m 7 ® 11 A al I R Dkill It119 f1)►/►` lIM4.11IR ® A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY DIRECTING THE LEVY OF THE ANNUAL ASSESSMENT FOR THE NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT THE CITY COUNCIL City of Morro Bay, California WHEREAS, on May 23, 2005 the City Council did adopt Resolution No. 24-05 declaring the Council's intent to levy an assessment for the annual maintenance of the North Point Natural Area and approving the Engineers Report; and WHEREAS, a public hearing to hear all protests as to the levy of the annual assessment of said district was scheduled for June 27, 2005 at 6:00 p.m. in the Veteran's Memorial Building; and WHEREAS, notices were mailed to one hundred percent (100%) of the property owners on record in the district regarding the proposed assessment and listing the date, time and ,location of the protest hearing, as well as being published in the local newspaper; and WHEREAS, the City Council did hear objections of all interested parties as to ® the levy of the annual assessment for the North Point Landscaping and Lighting Maintenance Assessment District on June 27, 2005 at the Veteran's Memorial Building. NOW, THEREFORE, BE 1T RESOLVED by the City Council of the City of Morro Bay that the annual levy for the maintenance of North Point Natural Area Landscaping and Lighting Maintenance Assessment District generally located as shown on Exhibit "A" attached hereto is hereby ordered and the assessment of $5,645 to be equally distributed per assessable parcel for the Fiscal year 2005-06 is hereby confirmed. BE IT FURTHER RESOLVED by the City Council of the City of Morro Bay that adoption of this resolution shall constitute the levy of an assessment for the Fiscal Year 2005-06 and the City Clerk shall file the diagram and assessment with the County of San Luis Obispo Auditor. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held this 27th day of June, 2005 by the following roll call vote: AYES: Baxley, DeMeritt, Peirce, Peters, NOES: None ABSENT: None 'D T-\;.CLERK EXHIBIT 'A' CITY OF MORRO BAY ® NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING NIAINTENANCE ASSESSMENT DISTRICT ASSESSMENT DIAGRAIYi NORTH POINT NATURAL ARE _- LEGEND a° = 1.i0 AC- �, -U = COUNTY „SS_SMr,=,?C-L PIU11AHrt ub 7 C?_ ri F O r0 �,- a ? y ryYS i / 3 \ rL `. 4 NO crr�v ` 6• TR AC i 2110 5 3 21 •55 AC= 9 0 .3. v t y+ II �a RESOLUTION NO. 27-05 ® A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY DIRECTING THE LEVY OF THE ANNUAL ASSESSMENT FOR THE CLOISTERS LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT THE CITY COUNCIL City of Morro Bay, California WHEREAS, on May 23, 2005 the City Council did adopt Resolution No. 23-05 declaring the Council's intent to levy an assessment for the annual maintenance of the Cloisters Park and Open Space and approving the Engineers Report; and WHEREAS, a public hearing to hear all protests as to the levy of the annual assessment of said district was scheduled for June 27, 2005 at 6:00 p.m. in the Veterans' Memorial Building; and WHEREAS, notices were mailed to one hundred percent (100%) of the property owners on record in the district regarding the proposed assessment and listing the date, time and location of the protest hearing, as well as being published in the local newspaper; and WHEREAS, the City Council did hear objections of all interested parties as to ® the levy of the annual assessment for the Cloisters - Landscaping and Lighting Maintenance Assessment District on June 27, 2005 at the Veterans' Memorial Building. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that the annual levy for the maintenance of Cloisters Landscaping and Lighting Maintenance Assessment District generally located as shown on Exhibit "A" attached hereto is hereby ordered and the assessment of $148,944 to be equally distributed per assessable parcel for the Fiscal Year 2005-06 is hereby confirmed. BE IT FURTHER RESOLVED by the City Council of the City of Morro Bay that adoption of this resolution shall constitute the levy of an assessment for the Fiscal Year 2005-06 and the City Clerk shall file the diagram and assessment with the County of San Luis Obispo Auditor. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held this 27a' day of June, 2005 by the following roll call vote: AYES: Baxley, DeMeritt, Peirce, Peti NOES: None ABSENT: None ATTEST: BRIDGE AUEIZCITY CLERK TPOB PARCEL 1 Most northerly corner of Lot 122 of Tract "1996 0 c o o 0 0 0 1" _ 400' Chi L-7 U C ` O ' V lu'^ EXHIBIT 'A' u 11 RESOLUTION NO.26-05 RESOLUTION ADOPTING AMENDMENTS AND ADDITIONS TO THE CITY OF MORRO BAY PERSONNEL RULES AND REGULATIONS AND RESCINDING RULES AND REGULATIONS IN CONFLICT THEREWITH LAYOFF AND SENIORITY THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay is required to comply with state and federal laws concerning employment and re-employment rights of permanent city employees; and WHEREAS, the City has established policies regarding retention of employment and termination of employment and the rights and responsibilities of the City and employees related to these issues; and WHEREAS, the City desires to amend these existing policies to more clearly delineate the rights and responsibilities of all affected parties regarding layoff and seniority, and; WHEREAS, City staff and employee representatives have reviewed the proposed policy changes and find no further objection to them. NOW, THEREFORE, BE IT RESOLVED by the Morro Bay City Council that the attached amendments and additions to the Personnel Rules and Regulations are adopted and any existing adopted provisions in conflict therewith are rescinded and superseded. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting held thereof on the 13'h day of June 2005 by the following vote: AYES: Baxley, DeMeritt, Peirce, Peters, Winholtz NOES: None ABSENT: None Bridgett Ba r City Clerk E CITY OF MORRO BAY LAYOFF AND SENIORITY POLICY I. PURPOSE A. It is recognized that when it is necessary to reduce City employment due to outsourcing, fiscal constraints, reductions in revenue, reorganization, reductions in municipal services, or reduction in the demand for municipal service, such action and its implementation except as qualified herein, shall be at the sole discretion of the City. B. This Policy establishes regulations pertaining to lay-off and seniority and establishes procedures involved in the application of this Policy. C. When it is deemed necessary to reduce City employment by layoff, the layoff procedure shall protect the right of the City to retain qualified employees, while recognizing the seniority of affected employees as outlined below. D. Lay-offs shall occur by classification within department. The department head, with approval of the City Manager, shall determine the classification, number of ® positions to be affected within a department, the lay-off date, and shall notify the Personnel Officer and the affected employee organization in writing at the earliest possible date. H. POLICY This Policy and the procedures outlined herein apply to all employees in the City of Morro Bay whose positions may be eliminated as outlined above. III. DEFINITIONS A. Lay-off 1. An action caused by a reduction of authorized, budgeted positions wherein an employee is laid -off from the. work force for economic reasons only. The term "Lay-off' shall include removal from city employment or reassignment to a former or other class pursuant to this Policy. B. Classification 1. The job title and job description are the City's official description of the representative duties, responsibilities and employment qualifications of a ® job. MB layoff Policy 6-13-05 final.doc 1 2. Classification means one or more regular positions grouped according to the, duties and responsibilities assigned to a specific job title. 3. A Classification Series consists of a grouping of two or more job classes performing similar work, but at different levels of responsibility, difficulty and pay. (i.e. Worker, Senior Worker, Lead Worker) C. Seniority Seniority for the limited purposes of this policy shall be measured from the time an employee was first granted permanent status in the employee's current classification, subject to the following: a. Service time shall be given only for continuous service with the City of Morro Bay in all regular classifications served. b. Continuous unbroken time worked includes time during which the employee was absent with pay. Approved leaves of absence without pay shall maintain the continuity of employment, but the duration of the leave shall be deducted from the total continuous time period except as provided by State and/or Federal law. C. In cases where there are two or more employees in the Classification from which the lay-off is to be made who have the same seniority date, such employees shall be laid 'off on the following basis: 1) (safety only) test score, provided that they took the same test on the same date. 2) total City seniority. 3) By lot. d. For bumping purposes only, seniority shall be calculated by adding service time in the higher classification(s) to service time in the classification to which the employee is attempting to bump. D. Bumping Rights 1. Bumping rights or bumping shall mean the right of an employee, based upon the seniority as defined in M c, d, 2. Subject to D.3. below, an employee shall be permitted to bump'into a . classification where he/she previously held regular permanent status. Bumping may occur only in the case where the employee has seniority over the person being bumped. Bumping shall also be permitted to lower level positions in the same classification series. Title changes will not disqualify an.employee from bumping if the position is substantially the same as determined by the City Manager. MB Layoff Policy 6-13-05 final.doc 2 ® 3. No employee shall have the right to bump into a classification for which the employee does not possess the minimum qualifications for the classification, such as specialized education, training, certifications, knowledge, skills and abilities. 4. An employee who is bumped shall have the same rights as provided herein and shall be considered laid -off for the purposes of this Policy. IV. SCOPE AND ORDER OF LAY-OFF Lay-off shall occur within a job classification and -division in inverse order of seniority in the following order of employee status: 1. Contract 2. Provisional 3. Probationary 4. Regular employees. (Regular part-time employees' service time shall be prorated for the purposes of computing seniority.) V. NOTIFICATION ® A. In the event the City anticipates a lay-off covered by this Policy; the City will notify the employee organization 15 calendar days prior to notice being given to employees pursuant to V.C. below of its intent prior to making any such layoffs. n U B. Prior to formal announcement of lay-offs the City shall meet and confer with the employee organization concerning the impact of the lay-off decision. Nothing in this section relinquishes the City's right to lay-off employees. The City shall, upon request, explain the rationale/need for the layoffs. C. Employees subject to lay-off shall be given at forty-five (45)-calendar days advance notice in writing. A lay-off notice shall include the following information: 1 . Reason for lay-off 2. Effective date of the lay-off 3 . The employee's calculated seniority date 4. Classes to which the employee may request displacement within the City. 5 . A copy of this Policy. D. An employee who has bumping rights shall notify the Personnel Officer within ten (10) working days after notice of layoff of his/her intention to exercise bumping rights. MB Layoff Policy 6-13-05 final.doc . 3 VI. REEMPLOYMENT A. Employees who are laid off shall have their names placed on a reemployment eligibility list for their current classification or a classification in which they previously held permanent status. The City shall maintain the list as long as any employee is in laid -off status or three years, whichever occurs first. B. Reemployment Eligible List: The reemployment eligible list shall consist of the names of employees and former employees having probationary or regular status who have been laid off or whose positions have been reallocated as a result of reclassification. The affected employees shall be placed on the reemployment eligibility list. Such lists shall take precedence over all eligibility lists. C. The Personnel Officer shall make every effort to place an employee who has been . laid off in a vacant position for which he/she is qualified during the life of the reemployment list. D. An employee, whose name is active on the reemployment list and was employed with the City in a permanent position for at least three consecutive months prior to lay-off, shall be eligible to apply for any promotional recruitment. E. To the extent feasible, the City will utilize re-employment lists when filling temporary and/or contract employee opportunities. is VIL VOLUNTARY DEMOTION IN LIEU OF LAY-OFF A. An employee scheduled for lay-off may voluntarily demote to a vacant lower class, provided the employee possesses the minimum qualifications for the lower position, as determined by the Personnel Officer. B. Employees may also demote to any previously held vacant position, provided that position is vacant, wherein their performance in that position has been documented to be satisfactory. C. To be considered for voluntary demotion in lieu of lay-off, an employee must notify the Personnel Officer in writing of this election no later than ten (10) working days after receiving notice of layoff. VII.- INTERPRETATION Differences regarding interpretation of this policy shall be determined by the City Manager. 11 MB Layoff Policy 6-13-05 final.doc 4 ® VIII. VOLUNTARY LAYOFF E C When lay-offs are pending, employees resigning City positions for alternate employment may request a voluntary lay-off. Upon the approval of the City Manager, such employees shall be considered to be laid -off and will be treated in accordance with this policy. NIB layoff Policy 6-13-05 final.doc 11 El RESOLUTION NO.25-05 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA AMENDING THE MASTER FEE SCHEDULE FOR KITCHEN USE FEES AND APPROVING THE KITCHEN USE POLICY CHANGES THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City Council has reviewed the fees charged for the kitchen use at the Morro Bay Community Center and the Veteran's Memorial Building; and WHEREAS, the City Council has reviewed the Kitchen Use Policies in relation to the use of the kitchens; and WHEREAS, the City Council has determined the fees should be amended to more accurately reflect the cost of operation of the kitchens as well as an amendment to the Kitchen Use Policy to maximize the rental potential of the facility; and WHEREAS, the City Council has reviewed the amended Master Fee Schedule for Facility Rental Fees, the amended Kitchen Use Policy and the Morro Bay Municipal Code Section 3.34.020 that provides for review of the Master Fee Schedule by the City Council and for the adoption of such fees by City Council Resolution. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, that the amended Kitchen Use Policy is hereby adopted as attached and marked as Exhibit "A". BE IT FURTHER RESOLVED by the City Council of the City of Morro Bay that the Master Fee Schedule (kitchen use fees) are hereby amended as attached and marked as Exhibit "B„ PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 23`d day of May 2005 by the following vote: AYES: Baxley, DeMeritt, Peirce, Peters, Wir NOES: None ABSENT: None ATTEST: �Glu-C�t/ BRIDGETT UER, City Clerk Exhibit "A" ® Amended Kitchen Use Policy Concessions and Kitchen Use: A. The City has the right to approve and regulate food and drink concessions. B. No food or drink will be allowed in the facility unless authorized by City permit. C. On -premise sales or solicitations during a rental (i.e. Programs, t-shirts, etc.) by profit -making groups must relate to the event and must be approved by the City. Arrangements are subject to payment.of a minimum of 10% of gross receipts to the City. D. Kitchen use at the Community Center is subject to payment of a clean-up fee, assignment of a kitchen monitor and orientation of kitchen users to the facility. E. The kitchen may be rented more than once every four months only by City approval. Such usage shall be classified as a regular facility use and will be subject to the fee schedule. F. Regular use of the kitchen may only be scheduled Monday through Friday. G. Regular user groups of the kitchen will be assessed fifty percent of the fee schedule for weekday use only. H. Regular facility user groups may use the kitchen on the ® weekends if still available two weeks prior to the date. Those uses will be subject to the fees shown on the regular fee schedule (not assessed at fifty percent). 11 Ll r W cz y E 11 O O� G rs E M O O O O O O r�i � 00 5q 00 5q 00 69 W z O L L L L Z o 0 o po 0 0 p _0 O L N L �o L p L EA C (A Cl— 69 C 6N9 z 0 ° or o 0 O z N L � L ^ L ^ L s9C r,99C tea. 6nC z O° 7 Cl 7 O 3 O 7 O L t Z ^ U N U N V 7 U E01) Cl- 6.q c v3 a v3 c L L L L z Z 69 c sN9 C sM9 C. sV'9 a s s t t O L z L m L L �C �C Iqn. s^sC L L L L r�.i O O 0 0 O O JO z O L O L O_ Cl C'1 �, C• L. Vo U C U Z 69 69 69 L` 69 L' L L O � M � � •n •� 0 U NE r a s Z `A � W O L a U L � 7 � � U e G G 7 L G C�l 4 P rTl l"l z z ° s o s p o f o ° o O O z z 69 C 69 Q � C 6ls Q. 0 s z t o A rTl 1�1 69 � 69 ^A 69 00 69 <JO O O z z = L = L 0o s o° o s o s L N L V L O L 00 U E6 C U (A C U 69 C N U fA C L L rri r�i O L O O O O z z v 0 O O_ O O L O O p L z z S Q Y' L o o A o A o O O L «+ L• M L O L z z 69 C 69 t-'• bss C 6s C- rr Z Z z z p 0 O t O O r/1 — L 0 0 O L L O O O L O O Z z U ys Cl- N U sA Cl- N U sA C M CJ F» C � y T U � a U y -p O R CV 69 II a t D n i 0 U U L L r r o O c 3 C U 7 U r_! � • O p 1 U p C 'LA O ^ rn U ® RESOLUTION NO.24-05 A RESOLUTION OF THE CITY COUNCIL DECLARING THE CITY'S INTENTION TO LEVY THE ANNUAL ASSESSMENT FOR THE MAINTENANCE OF THE NORTH POINT NATURAL AREA THE CITY COUNCIL City of Morro Bay, California WHEREAS, all property owners of the North Point subdivision requested the City of Morro Bay form a maintenance assessment district to fund the maintenance of the North Point Natural Area; and WHEREAS, the Landscaping and Lighting Act of 1972 (the "Act") enables the City to form assessment districts for the purpose of maintaining public improvements; and WHEREAS, pursuant to Section 22623 of the Act, the Engineer has filed in the Office of the City Clerk, and submitted for review to the City Council, a report entitled "Engineers Report North Point Natural Area Landscaping and Lighting Maintenance Assessment", dated May 13, 2005, prepared in accordance with Article 4 of the Act, commencing with Section 22565; and WHEREAS, pursuant to Section 22608.2 of the Act, the subdivider(s) were required by ® City ordinance to install improvements for which an assessment district was required in order to assure continued and uninterrupted maintenance of the North Point Natural Area; and WHEREAS, pursuant to the intent of Article XIII, Section 4, of the California Constitution, the property owners have elected to form the North Point Natural Area Landscaping and Lighting Maintenance Assessment District. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that it is the intent of the Council to order the annual levy and collection of assessments for the North Point Natural Area Landscaping and Lighting Maintenance Assessment District generally located as shown in Exhibit "A" attached hereto at a public hearing to be held June 27, 2005 at 6:00 p.m. in the Veteran's Memorial Building, 209 Surf Street, Morro Bay, CA. BE IT FURTHER RESOLVED by the City Council the improvements to be maintained at the North Point Natural Area are specified in the Engineer's Report dated May 13, 2005 which is hereby approved. BE IT FINALLY RESOLVED by the City Council the assessment upon assessable lots within the district is proposed to total $5,645 or $564.50 per assessable parcel for fiscal year 2005-2006. 11 RESOLUTION 24-05 PAGE 2 ® PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held this 23rd day of May, 2005 by the following roll call vote: AYES: Baxley, DeMeritt, Peirce, Peters, Winholtz NOES: None ABSENT: None FN 11 1.`71In IFt. mot', .�_�.:.� 11 Exhibit A rl CITY Of MORRO BAY NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT ul \ cr ARF15 GlVFN C ASSESSMENT DIAGRAM NOR TH POINT NATURAL AREA LEGEND 1. = LOT NUMBER 70 = COUNTY ASSESSORS PARCEL NUMBER 1 S 19 � �7 9 s �F -�- 7. r 6• TRACT 2110 15 1 5 21 55 AC.i a A A:..... n 0.111 ® RESOLUTION NO.23-05 A RESOLUTION OF THE CITY COUNCIL DECLARING THE CITY'S INTENTION TO LEVY THE ANNUAL ASSESSMENT FOR THE MAINTENANCE OF THE CLOISTERS PARK AND OPEN SPACE THE CITY COUNCIL City of Morro Bay, California WHEREAS, all property owners of the Cloisters subdivision requested the City of Morro Bay form a maintenance assessment district to fund the maintenance of the Cloisters Park and Open Space; and WHEREAS, the Landscaping and Lighting Act of 1972 (the "Act") enables the City to form assessment districts for the purpose of maintaining public improvements; and WHEREAS, pursuant to Section 22623 of the Act, the Engineer has filed in the Office of the City Clerk, and submitted for review to the City Council, a report entitled "Engineers Report - Cloisters Landscaping and Lighting Maintenance Assessment District", May 13, 2005, prepared in accordance with Article 4 of the Act, commencing with Section 22565; and WHEREAS, pursuant to Section 22608.2 of the Act, the subdivider(s) were required by ® City Ordinance to install improvements for which an assessment district was required in order to assure continued and uninterrupted maintenance of the Cloisters Park and Open Space; and WHEREAS, pursuant to the intent of Article XIII, Section 4, of the California Constitution, the property owners have elected to form the Cloisters Landscaping and Lighting Maintenance Assessment District. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that it is the intent of the Council to order the annual levy and collection of assessments for the Cloisters Landscaping and Lighting Maintenance Assessment District generally located as shown in Exhibit "A" attached hereto at a public hearing to be held June 27, 2005 at 6:00 p.m. in the Veteran's Memorial Building, 209 Surf Street, Morro Bay, CA. BE IT FURTHER RESOLVED by the City Council the improvements to be maintained at the Cloisters Park and Open Space are specified in the Engineers Report dated May 13, 2005, which is hereby approved. BE IT FINALLY RESOLVED by the City Council the assessment upon assessable lots within the district is proposed to total $148,944 or $1,241.20 per assessable parcel for fiscal year 2005-2006. is RESOLUTION 23-05 PAGE PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held this 23rd day of May, 2005 by the following roll call vote: AYES: Baxley, DeMeritt, Peirce, Peters, Winholtz NOES: None ABSENT: None ATTEST: 0 11 TPOB PARCEL 1 Most northerly corner of Lot 122 of Tract 1996 0 0 0 0 r (V c 1' = 400' CQ a U C i 4 0. 'f 9 O Qn. Q lug I I EZH H o T Q RESOLUTION NO. 22-05 C El RESOLUTION COMMENDING AND HONORING PERSONNEL OFFICER/RISK MANAGER ARDITH DAVIS ON HER RETIREMENT CITY COUNCIL City of Morro Bay, California WHEREAS, Ardith Davis began her career in municipal government when she was hired by the City of Morro Bay on June 16, 1969; and WHEREAS, Ardith Davis progressed in her career with the City first as a Typist I then 11, Stenographer and Administrative Secretary/Deputy City Clerk thru September 1, 1978; and WHEREAS, Ardith Davis left the employment of the City of Morro Bay on September 1, 1978 to go with her friend and co-worker Murray Warden to the City of Atascadero; and WHEREAS, Ardith Davis returned to the City of Morro Bay on November 28, 1983 as a Confidential Secretary for the Personnel Department; and WHEREAS, Ardith Davis again progressed her career by promoting to Administrative Secretary /Deputy City Clerk and then to City Clerk on July 1, 1987; and WHEREAS, Ardith Davis became the City's first Personnel Officer/Risk Manager on November 2, 1992; and WHEREAS, Ardith Davis has proven herself invaluable by the many City Managers she has worked under due to her sense of fairness and interest in the well-being of the City as a whole; and WHEREAS, Ardith Davis through her own efforts, became expert in all aspects of Personnel Administration, Labor Relations to include negotiations, Benefit Administration, Recruitment, Workers Compensation Administration, Risk Management to include self-insurance and insurance policy, Claims Administration; and WHEREAS, Ardith Davis is retiring to enjoy her many hobbies including gardening, quilting and traveling with her husband, Harold Davis and dog Carly. NOW, THEREFORE, BE IT RESOLVED that the Morro Bay City Council recognizes and extends appreciation to Ardith Davis for her 30 years of service to the community and the City of Morro Bay and wishes her a happy, well-earned, retirement. PASSED AND ADOPTED by the Morro Bay City Council at a meeting thereof held this 9th day of May 2005 by the following vote: AYES: Baxley, DeMeritt, Peirce, Peters, Winholtz NOES: None ABSENT: None ATTE J OUCHER, Deputy City Clerk J CE PETERS Mayor ® RESOLUTION NO. 20-05 APPROVAL OF AMENDMENT #1 TO THE LEASE AGREEMENT FOR LEASE SITE 37W, ADJACENT TO 261 MAIN STREET, AUTHORIZING A 10-YEAR LEASE EXTENSION THE CITY COUNCIL City of Morro Bay, Califomia WHEREAS, the City is the lessor of certain property on the Morro Bay waterfront described as Lease Site 37W; and, WHEREAS, AI Meyer and Ethel Meyer are the lessees of said property; and, WHEREAS, the lessees are in compliance with the terms and conditions of the existing lease agreement for Lease Site 37W; and, WHEREAS, pursuant to the City's Lease Management Policy, the City and the lessees have agreed to an amendment to the lease agreement extending the term of the lease for ten years. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that Amendment #1 to the Lease Agreement for Lease Site 37W, located adjacent ® to 261 Main Street, is hereby approved. BE IT FURTHER RESOLVED, that the Mayor is hereby authorized to execute said Amendment #1. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting held thereof on the 9 day of May 2005, by the following vote: AYES: Baxley, DeMeritt, Peirce, Peters, Winholtz NOES: None ABSENT: None ,JANICE PE S, MAYOR JAMIleBOUCHER, DEPUTY CITY CLERK C RESOLUTION NO. 19-05 ® APPROVAL OF A 10-YEAR LEASE AGREEMENT FOR MOORING ZONE Al-4, LOCATED OFF SHORE OF LEASE SITE 71-74/71W-74W AT 699 EMBARCADERO, WITH THE MORRO BAY MARINA THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay is the lessor of certain tidelands in the Morro Bay described as Mooring Zone A1-4; and, WHEREAS, the Morro Bay Marina has been the lessee of said property since 1991; and, WHEREAS, the City Municipal Code, Section 15.28, states the policy of the City is to lease a portion of Zone A14 to a commercial mooring operator or operators for installation and rental of individual moorings, WHEREAS, the current lease agreement for Mooring Zone A1-4 terminated on June 30, 2004 and has been carried over on a month -to -month holdover; and, ® WHEREAS, the City and the Morro Bay Marina wish to enter into a 10-year lease agreement for Mooring Zone A1-4 to allow the Morro Bay Marina's continued use of the mooring zone area. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that the lease agreement for Mooring Zone Al-4 between the City of Morro Bay and the Morro Bay Marina is hereby approved and that the Mayor is hereby authorized to execute the lease agreement document. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting held thereof on the 9 day of May 2005 by the following vote: AYES: Baxley, DeMeritt, Peirce, Peters, Winholtz NOES: None ABSENT: None ANICE PETERS, MAYOR JANVBOUCHER, DEPUTY CITY CLERK RESOLUTION NO. 18-05 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA ADOPTING CHANGES TO THE MORRO BAY MASTER FEE SCHEDULE THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City Council finds that fees and charges for City services are in need of updating to reflect changes in the cost of providing those services; and WHEREAS, Article XIII B, Section 8(c) of the California Constitution provides that proceeds from user fees and user charges which do not exceed the cost of providing the regulation, product or service do not constitute "proceeds of taxes'; and WHEREAS, the City has reviewed certain fees, taking into account the annual changes in personnel costs, supply costs, and other costs and finds that the proposed fees are in all cases no more than the actual costs of providing the related services; and WHEREAS, Morro Bay Municipal Code Section 3.34.020 provides for review of the Master Fee Schedule by the City Council and for the adoption of such fees by City Council Resolution. ® NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, that the Morro Bay Master Fee Schedule is changed in accordance with the recommendations in the Public Services Cost Study for the City of Morro Bay, April 2004, with the exception of the fees previously changed with in Resolution 62-04. BE IT FURTHER RESOLVED by the City Council of the City of Morro Bay that the above changes to the Morro Bay Master Fee Schedule -will be effective for fees collected on or after July 1, 2005. PASSED AND ADOPTED b the City Council of the City of Morro Bay at a regular meeting thereof held on the 25'� day of April 2005 on the following vote: AYES: DeMeritt, Peirce, Peters, Winholtz NOES: Baxley ABSENT: None ATTEST: ® RESOLUTION NO.17-05 APPROVAL OF A ONE-YEAR LEASE AGREEMENT WITH THE MORRO BAY COMMERCIAL FISHERMAN'S ORGANIZATION FOR LEASE SITE 130W-132W, LOCATED AT 1231 EMBARCADERO THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay is the lessor of certain property on the Morro Bay waterfront described as Lease Site 130W-132W; and, • WHEREAS, the lease agreement with Driscoll's Wharf for this lease site and the adjoining sites to the north and south of Lease Site 130W-132W were terminated by City Council action of March 8, 2004 and the equipment on the site was purchased by the City under an agreement authorized by the City Council at that time; and, WHEREAS, the City Council authorized staff at the March 8, 2004 meeting to find a suitable tenant for the Lease Sites and to consider leasing the dock/unloading area to the Morro Bay Commercial Fisherman's Organization (MBCFO); and, WHEREAS, on April 12, 2004 the City Council approved a one-year lease with ® MBCFO for the dock; and, WHEREAS, the MBCFO has agreed to a newly proposed one-year lease agreement for operation of Lease Site 130W-132W. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that the Mayor is hereby authorized to execute a one-year lease agreement with the MBCFO for Lease Site 130W-132W. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting held thereof on the 25`s day of April 2005, by the following vote: AYES: Baxley, DeMeritt, Peirce, Peters, Winholtz NOES: None ABSENT: None as JANI, E PETERS, MAYOR r BRIDGET-qAUEF, ® RESOLUTION NO.16-05 RESOLUTION OF THE CITY OF MORRO BAY, INITIATING PROCEEDINGS TO LEVY THE ANNUAL ASSESSMENT FOR THE NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT PURSUANT TO THE "LANDSCAPING AND LIGHTING ACT OF 1972" (STREETS AND HIGHWAYS SECTION 22500 ET SEQ.) WHEREAS, the City has placed certain conditions on the development of Tract 21 10"North Point," requiring formation of property Landscaping and Lighting Maintenance Assessment District encompassing and coterminous with the proposed subdivision to provide for the maintenance of a natural area, parking lot, landscaping, decomposed granite and asphalt walkways, and coastal access stairway and other common area improvements to be held by or dedicated to the City of Morro Bay as required by the Morro Bay Municipal Code 16.16.030; and, WHEREAS, these conditions are more specifically identified in the Precise Plan (condition F1-F7); and, WHEREAS, the Owners of the real property within the proposed district consented to the formation of the district pursuant to the Landscaping and Lighting Act of 1972 (Streets and ® Highways Code Section 22608.2 et seq.), and are the only owners of property to be subject to assessments within the district; and, WHEREAS, the Owners of real property within the proposed district offered in fee and in perpetuity, Lot 11 of Tract 2110, and the City has agreed to said Offer of Dedication, provided that the cost of maintenance of thereof is bome by an assessment district as required by the Conditions of Approval of the project; and, WHEREAS, one hundred percent (100%) of the property owners approved formation of the District to assure conformance with the recently enacted "Right to Vote on Taxes Act" (Proposition 218, California Constitution Act XM, C & D). NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay as follows: The City Council of the City of Morro Bay hereby declares its intent to initiate the proceedings to levy and collect assessments pursuant to the "Landscaping and Lighting Act of 1972". (Streets and Highways Code Sections 22500 et seq.) 11 ® Resolution No. 16-05 Page 2 2. The improvements to be subject to assessment for maintenance by such District shall include those enumerated in the conditions of project approval and in Streets and High ways Code Section 22525 which are installed by the developer as a condition of approval of Tract 2110 or which are hereafter installed by developer; pursuant to the Final Improvement Plans for the North Point Project as approved by the City. 3. The Assessment District is a District located in the City of Morro Bay, County of San Luis Obispo. A map showing the boundaries of the proposed District is attached as Exhibit "A" which is hereby incorporated herein. 4. An Engineer's Report will be prepared for consideration at the May 23, 2005 City Council meeting. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held this 25 h day of April, 2005 by the following roll call vote: AYES: Baxley, DeMeritt, Peirce, Peters, Winholtz NOES: None ® ABSENT: None ATTEST: L�c-Lx v BRIDGE AUER CITY CLEICK 11 i SIT A CITY OF MORRO BAY NORTH POINTNATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE'.ASSESSMENT DISTRICT ASSESSMENT DIAGRAM i NORTH POINT NATURAL AREA �. LEGEND LOT MUMBER tea° 1.10 ACC = 4r ©0 COUNTY ASSESSORS PARCEL'NUMBER 8 }Te=vti� Q -Sr � . ny 22 y� NO AHFA N y' GNEU ot` 4,r _ s• TRACT 21.10 5 21 53 AC.* 12 • 0 �� 11 j' 1 • ® RESOLUTION NO.15-05 RESOLUTION OF THE CITY OF MORRO BAY, INITIATING PROCEEDINGS TO LEVY THE ANNUAL ASSESSMENT FOR CLOISTERS LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT PURSUANT TO THE "LANDSCAPING AND LIGHTING ACT OF 1972" (STREETS AND HIGHWAYS SECTION 22500 ET SEQ.) WHEREAS, the City Council has placed certain conditions on the development of Tract 1996, "The Cloisters," requiring formation of a property Maintenance Assessment District encompassing and coterminous with the proposed subdivision to provide for the maintenance of a public park, bicycle pathway, right-of-way landscaping, coastal access ways, ESH restoration area, and other common area improvements to be held by or dedicated to the City of Morro Bay as required by City Ordinance; and, WHEREAS, these conditions are more specifically identified in Vesting Tentative Tract Map (condition l0e) and Precise Plan (condition 2c) as required by City Ordinance; and, WHEREAS, the Owners of the real property within the proposed district have consented in ® writing to the formation of the district pursuant to the Landscaping and Lighting Act of 1972 (Streets and Highways Code Section 22500 et seq.), and are the only owners of property to be subject to assessments within the district; and, WHEREAS, the Owners of real property within the proposed district have offered to dedicate in fee and in perpetuity, Lot 121 (Parcel 1) and Lot 122 of Tract 1996, and the City has agreed to accept said Offer of Dedication, provided that the cost of maintenance of thereof shall be home by an assessment district as required by the Conditions of Approval of the project; and, WHEREAS, one hundred percent (100%) of the property owners approved formation of the district to assure conformance with the recently enacted "Right to Vote on Taxes Act" (Proposition 218, California Constitution Act XM C & D). NOW, THEREFORE, BE IT RESOLVED by the City Council of the. City of Morro Bay as follows: The City Council of the City of Morro Bay hereby declares its intent to initiate the proceedings to levy and collect assessments pursuant to the "Landscaping and Lighting Act of 1972". (Streets and Highways Code Sections 22500 et seq.) ® Resolution No. 15-05 Page 2 The improvements to be subject to assessment for maintenance by such District shall include those enumerated in the conditions of project approval and in Streets and Highways Code Section 22525 which are installed by the developer as a condition of approval of Tract 1996 or which are hereafter installed by developer; pursuant to the Final Improvement Plans for the Cloisters Project as approved by the City. 2. The Assessment District is a District located in the City of Morro Bay, County of San Luis Obispo. A map showing the boundaries of the proposed District is attached as Exhibit "A" which is hereby incorporated herein. 3. An Engineer's Report will be prepared for consideration at the May 23, 2005 City Council meeting. 4. This District shall be called the "Cloisters Landscaping and Lighting Maintenance Assessment District". PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held this 25ffi day of April, 2005 by the following roll call vote: AYES: Baxley, DeMeritt, Peirce, Peters, Winholtz NOES: None ABSENT: None ATTEST: BRIDGET BAUER CITY CLERK 2 tFOB PARCEL 1 ost northerly corner' of Lot 122 of Traci 1996 IAI s RESOLUTION NO. 14-05 ASSIGNMENT OF THE LEASE AGREEMENT FOR LEASE SITE 52/52W, LOCATED ® AT 495 EMBARCADERO, FROM ASSOCIATED PACIFIC CONSTRUCTORS, INC. REG WHIBLEY AS SOLE OWNER TO PAUL GILLEN AS SOLE OWNER WITH SALE OF 50% OF SHARES IN ASSOCIATED PACIFIC CONSTRUCTORS, INC. TO PAUL GILLEN NOW AND THE REMAINDER OF SHARES TO BE TRANSFERRED TO PAUL GILLEN BY DECEMBER, 2005 THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay is the lessor of certain property on the Morro Bay waterfront described as Lease Site 52/52W; and, WHEREAS, Associated Pacific Constructors Incorporated, Reg Whibley sole owner, is the lessee of said property; and, WHEREAS, Associated Pacific Incorporated has requested approval of assignment of the lease agreement for lease Site 52/52W to Paul Gillen and approval of sale of 50% of the corporate shares of Associated Pacific Constructors Inc. Paul Gillen now with the remaining 50% of the shares to transfer to Paul Gillen by December 31, 2005; and, WHEREAS, the necessary assignment fee has been paid, the tenant is in compliance with the terms of the lease agreement, Mr. Gillen's credit report has been approved by the Finance Director and the City Attorney has approved the assignment and assumption document signed by both parties. ® NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro bay that assignment of the lease agreement for Lease Site 52/52W from Associated Pacific Constructors Incorporated, Reg Whibley sole owner to Associated Pacific Constructors Incorporated, Paul Gillen sole owner with approval of sale of 50% of the corporate stock of Associated Pacific Constructors Inc. to Paul Gillen now and the remaining 50% of corporate stock transferring to Paul Gillen by December 31, 2005 is hereby approved and that the Mayor is authorized to execute the assignment and assumption document.. BE IT FURTHER RESOLVED, that final transfer of the remaining 50% of shares in the corporate stock of Associated Pacific Constructors Incorporated is conditional upon receipt of written notification by February 15, 2006. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting held thereof on the 1 I" day of, April 2005 by the following vote: AYES: NOES: El Baxley, DeMeritt, Peters, Winholtz None ASSIGNMENT AND ASSUMPTION AGREEMENT This assignment is made and entered into this day of �, . , 2005, by and between Reg Whibley, (hereinafter referred to as "Assignor'), Associated Pacific Constructors, Inc.(hereinafter referred to as the `leaseholder') and Paul E. Gillen (hereinafter referred to as "Assignee" ). 1. The City Council of Morro Bay has approved lease assignment; Assignor here by assigns all rights, title and interest they have in the lease from the City of Morro Bay, known as Morro Bay Lease Site 52 and 52W, under the Master Lease held by the `lease holder'. 2. Assignee acknowledged that the City of Morro Bay has leased the premises to the "leaseholder" under the Master Lease. Assignee acknowledges that any assignment of the Master Lease is subject to prior approval by resolution in the city of Mono Bay City Council and is also subject prior execution between Assignor and Assignee of the contract for Purchase and sale and addendums thereto, by and between Assignor and Assignee. 3. Assignee agrees to comply with all terms and conditions of the Master Lease and to assume all liabilities required under the Master Lease, to defend, indemnify and hold the City free and harmless from and against, any and all, claims, lawsuits, costs and expenses, including reasonable anomey's fees and court costs arising from, or in any way related to, holding, using or operating the leased premises and further agrees to maintain liability insurance in the manner, form and amount required by Master Lease with the City included as an additional insured without offset against the ® City's insurance. 4. Assignor confirms to the City that he has not actual knowledge or reasonable cause to believe that any release of hazardous substance has come to be located or beneath the real property during the term of Assignors occupation of the lease that has not been reported pursuant to Health & Safety code 925359.7. Dated: Mao By: eg Wbibley, Consent to Assignment & Assumption of all liabilities under the L e Agreement Dated: O200—,F) By: Pa I E. Gillen The City of Mono Bay, Lessor named in the Master Lease, consents to the Assignment upon the conditions set forth above. The City also consents to the agreement by Assignee to assume after 2005, the payment of rent and performance tf all duties and obligations including all percentage of gross sales rent as set forth in the Mas5r Lease which has been approved by Morro Bay City Council prior to this agreement. Ci . - - 1 , • 11 PAUL E. GILLEN 1662 Riverview Dr. Fallbrook Co. 92028 Telephone: 760-213-15471 Fax: 81-5-346-13101 Eatail: If etxpressJaOL.com Heavy Civil / Marine Construction Industry Executive P & L responsibility for sophisticated, multi -million dollar construction projects, which included cutter - suction dredging, pile driving, pipeline laying operations, inshore and platform installation and removals, heavy marine /civil turnkey contracting. Directed bonded turnkey, construction programs that drove millions in new profitable revenues. Proficient at re -engineering traditional business models, applying new focus on effective management while optimizing project management and collaborations programs. Skilled contract negotiator and closer (including government and private sector contracts); excel in business development, new market penetration; prepared to compete in a fast -paced and rapidly chaning market. Pacific Constructors, Inc. formally named Wet Solutions, Inc. -owner Marine Project Management and Business Consultant (1999-present) Providing specialized business consultation and project management for marine services and construction enterprises. Developing project management and engineering methodology for marine solutions. Execution of innovative business and operational plans for restructuring and business development, applying worldwide solutions for local problems. California Class A General Engineering Contractors License 9820584 as the RNI O For Associated Pacific Constructors, Inc. ® Business: Long established west coast marine and civil contractor Objective: Jan. 04- Given cum- to day management ofAPC with the objective to purchase the company from the owner. Results: Achieved 35% Gross Profits on Sales of S3.8 ALI- Producing a net profit percentage of 19% before owners compensation and extraordinary onetime expenses. Business: Long established west coast marine and civil contractor Objective: Bid and secure a pipeline removal project for PG&E as a sub to Inshore Divers, Inc. Pittsburgh, California. Results: Successfully envarded and performed the work for Inshore Divers using the APC Derrick Barge. JC Freese and Tug Moe, completing ahead of schedule and with no accidents/incidents. Project Manager — Subsea Manifold Tie -Ins For Cal Dive International. Inc. Business: Publiclv Traded International Subsea Contractor Objective: Brought in to take over site management of a turnkey design, construct and installation of a Subsea manifold tie in -offshore Trinidad. This was a S2 Mfuliv bonded project. The client was BP. Results: Completed and commissioned the project within the clients expected rime frame, established sufficient processes and procedures to meet the contractual obligations of the owner. Performance and Payment bonding was satisfied. Caldive were very satisfied with the project management I provided for this high profile and costly project. ® Construction Project Manager For Associated Pacific Constructors. Inc. Business: Long established west coast marine and civil contractor PAUL E. GILLEN Objective: Bid, project managed and achieved profitable results on turnkey pipeline removal project Isn highly environinentally sensitive Ventura County. Results: Award, managed and completed bv.luly 2002. On schedule and exceeded both APC's and SCE's performance and financial objectives significantly. Design and Construction Consultant Wet Design. Inc. Universal City, California (July 2001-Oct. 2001) Business: Designer and manufacturer of major animated water displays for such clients as Disney and Bellagio Hotel in Las Vegas. Objective: Provide a design proposal to integrate WET water feature technology on floating, moored platforms, including umbilical supplies and operational requirements. Projects developed for a Chicago, Ill. Display and a.similar project in Puerto Rico... Results: Projects waiting on final funding. At levels exceeding S25.Meach. Interim investor / shareholder Underwater Technology Services. Inc. (UTS) Ventura, California (July 2000-March 2001) Business: Specialized underwater service contractor with local marine construction capability combined with deep-ivater intervention and construction expertise. Primarilv Santa Barbara Channel Oil lndustry underwater Services Provider. Recently acquired by current management. ® Objective: [forked with existing management shareholders to transform business model outside dependency on oil service sector. Results: Successfully negotiated and won major non -oil service underwater contracting project in the fiber optic installation sector. Termination of my ownership interests in March to allox, existing shareholders to pursue oil service x,ork model. Development of Business Plan and Cash Flow Analysis T.L. LaOuav Dredging. Inc. Port Lavaca. Texas (January 20004vtarch 2000) Business: Worked through startup business plan cash flows for funding. This reformation of an lntercoastal Canal Dredging Companv included the Principles of the Texas Gulf Coast's most established dredging companv, starting over after the acquisition of the jO year old family business. (I headed up the acquisition by Orion of Kin�sher Marine Services during my emplovment at Orion) Objective: Develop a financial and operating plan for submission to various fitnding sources for review. Results: Funding was received, dredge purchased and subsequently placed in service. T. W. LaQuav Dredging is exceeding all projections 18 months later. Business Development Consulting Oil Tanking America Inc. and L-Con Constructors. Inc. Houston. Texas and Port O'Spain. Trinidad (viarch 1999-June 1999) Business: Petro Trin of Trinidad and Tobago Offshore oil loading terminal. ® Objective: Joint Venture project involving pricing, feasibility studv of various repair and construction aspects of the new business venture for Oil Tanking, America. Results.- Joint Venture delayed PAUL E. GILLEN Project Estimating and Subcontracting Plan L-Con Constructors, Inc. Houston. Texas (Aug. 1999-Febuary 2000) Business: Houston based national design and construct contractor for petro them. And steel plant construction, piping and electrical. Objective: development of estimate for marine portion of Sllaf mono piled loading berth on Houston Ship Channel for supertanker loading and unloading. Results: Bid was successful and negotiated sub -contract scope and pricing with marine contractor. Bo-kfac Marine Construction, Inc. performed the work. ahead of schedule, under budget. Project Estimating and Subcontracting Plan Bean Stuvvesant LLC New Orleans, La. (July 1999-September 1999) Business: Major intercoastal and offshore dredging contractor. Objective: Estimate supply and installation of marine tower, Galveston Channel entry, for the USACOE on behalf of Bean Stuyvesant LLC, prime dredging contractor. Results: Was successfully and subcontracted construction and installation of marine tower, utilizing Bo -Mac Marine Construction, Inc. Project completed successfully. PAUL E. GILLEN ® CAREER ACHIEVEMENTS: Vice President I Shareholder ORION CONSTRUCTION INC.. Texas (1994-1999) Business: Specialty Heavy Civil and ,Marine construction compunv. originally formed as a fcred price project management company, which by 1997 had successfully completed over SSS Million of turnkey projects, and by 1998, became the largest Texas based marine contractor.:Majority ofprojects 100% bonded through Travelers and later.aetna. Played key role in the start-up and development of the strategic plan that produced exceptional growth of this company. Responsible for strategic and business planning functions, finance and budgeting, marketing and general operations. By 1998, directly responsibility for the management and P&L results of nearly 70% of the total group revenue which contributed in excess of 85% of the group's pre tax income, resulting in a return on capital of over 20%. Pioneered the acquisition. management and successful integration of 2 specialty marine Contracting companies (Mid -Gulf Industrial inc. and King Fisher Marine Services Inc.) into Orion Construction inc.. which significantly impacted the 1998 annual sales (exceeding S68 M) and produced an unprecedented EBITDA in excess of S 1 I M. for this five year old company! As President of Mid -Gulf Industrial Inc., turned around a small local piling company into a key Industry player by streamlining operations (i.e. expanded customer base, re -directed project management and restructured cost accountability), resulting in doubling revenue and profitability within the first 18 months. ® i As Chief Executive Officer of King Fisher Marine Services Inc. (a cutter -suction dredging and marine contractor), was instrumental in doubling the Orion group's EBITDA in 10 months and broadening the group's Texas Gulf Coast dominance. President and Principal Shareholder WS TECHNOLOGY LTD. (formally Wet Solutions. Pte. Ltd.. Singapore (1989-1994) Business: Specialty industrial coating developer and manufacturer, with annual sales in excess of SIO Million USD. Launched successful start-up in spite of a high level of international competition. Developed marketing and sales strategies and executed manufacturing, distribution and applications network within the Asia Pacific region. President and Principal Shareholder Pb1I PIL[,NG SND BHD, Singapore (1987-1992) Business: Civil engineering, piling compam. and manufacturer of propriemry designed construction products sold to specialty residential and commercial markets of,%falatsia. Thailand and Indonesia. Annual revenues in excess of SIO ,Million USD. ® Acquired this company and positioned the business for long-term success. Responsibilities similar to above (see WS Technology Ltd.). * Both 61"S Technology Ltd. and Pibfl Piling SND BHD were sold as going concerns. PAUL E. GILLEN ® Regional Vice President - Singapore (1985-1986) General Manager- California (1982-1985) Project Manager - various locations (1979-1982) OCEANEERING INTERNATIONAL INC. Business: A worldwide undenvater service supplier (i.e. diving, ROV, ships, pipeline repair, ete.) delivering services to oilfield services. US Nate. and private customers. As Regional Vice President, challenged to strengthen operations in a diversified service market extending from Australia to China. Maintained profitability in an economically weakened oil service industry, through astute P&L management and development of innovative marketing programs. As General Manager, took over leadership of 0.1. West Coast division and built one of Oceaneering's most profitable divisions, within 3 years by expanding marketing and sales initiatives outside the traditional customer bases. Doubled sales annually. resulting in revenues in excess of S7 Million USD. As Project Manager, directed a diverse range of heavy marine repair and construction projects (Lump sum fixed contracting) on a worldwide basis. Prior to 1979: Commercial Diving career started 1968 Salvage divine /dock building Caribbean, east coast USA with commercial training Divers Training Academy, Commercial Diving Center. Activities included Hydro Electric repair and maintainence, Hyperbaric welding platforms and pipelines, platform installations, pipe lay, exploration support and extensive north sea bell bounce and saturation divine to depths exceeding 500'. As ® special Projects manager, lead diver, Supervisor, and Project Manager for Oceaneering International Inc. and Seaway Diving A/S, Norway. Working from DP vessels, lay -barges, lockout submersibles, live -boat operations, jack -ups and semi -submersibles. C RESOLUTION NO. 13-05 A RESOLUTION OF THE CITY COUNCIL OF MORRO BAY ACCEPTING THE FINAL MAP FOR AN APPROVED 5-LOT RESIDENTIAL SUBDIVISION KNOWN AS TRACT 2677 THE CITY COUNCIL City of Morro Bay, California WHEREAS, on January 10, 2005 the City Council did hold a public hearing, received public testimony, both written and oral, and after closing the public hearing fully considered the various issues surrounding the case, including recommendations from the Planning Commission during the public hearing that they held on November 15, 2004; and WHEREAS, the Council did approve the tentative map for Tract 2677, and associated development applications, based on certain Conditions of Approval; and WHEREAS, the Council and Planning Commission has previously made findings required by the California Environmental Quality Act (CEQA) and the City of Morro Bay procedures for implementation of CEQA; and WHEREAS the applicant has since satisfied all Conditions of Approval and requests ® permission to record the Final Map; and ' WHEREAS, the recordation of the final map is a ministerial act pursuant to the City of Morro Bay Subdivision Ordinance and California Subdivision Map Act; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, that the City hereby accepts the final map for Tract 2677. PASSED AND ADOPTED by the City Council of the City of Morro Bay, California, at a regular meeting held on the 11 W day of April 2005, by the following vote: AYES: Baxley, DeMeritt, Peters, Winholtz NOES: None ABSENT: Peirce ATTEST: BRIDGETT ` R - u C 11 P a.=3 ar 9P n F ee a "59 iob F< �7O i8 a$z fZ 6'y w�;<B Ib =bBI '6 o Y C <I O k`< 8 iao ! _• i boP �5 �5 S'E n� riF U SNgg ao U _d�Ed� u w U C� S t u b � Ftl� 8 3Wa ti e" H tea: •y � a� g '• b e• E37�o-u Fo�d �<� 3by�ggyg ba add g o m S _ a z b„€WN"F' istj�; baao _<e aieW=a <W� acc. gg £" O b y,.N 9 q b ,crnc ` u b ` � `o>- li IIRO btli=u� Ne- 3 yF Vy ke og`s=dg< s Qo u o s Yii paw z g�gLL� W ¢fie 8nc�� b` -=a. y a=ov`; o O b �.; b i$ O b 8 i..3 = 3 b g i<2...oc c Y C g= kf zzb ZY z gyg o iMX WxMs 8�a � � LJ � 1107 % . / R @w �| \! � � @� | � �\ / !� RESOLUTION NO. 12-05 ADOPTING AN AMENDMENT TO THE MASTER FEE SCHEDULE FOR HARBOR DEPARTMENT FEES AND SERVICES CHARGES THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City Council has reviewed a report on current Harbor Department fees and services charges and cost of living increases since those fees and charges were last increased; and WHEREAS, the City Council of the City of Morro Bay finds it appropriate to increase Harbor Department fees and charges commensurate with increases in the cost of living index. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that the Harbor Department Section of the Morro Bay Master Fee Schedule, attached and marked as "Exhibit A", is hereby amended effective July 1, 2005. ® PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting held thereof on the I 1 th day of April, by the following vote: AYES: Baxley, DeMeritt, Peters, Winholtz NOES: None ABSENT: Peirce "A� BRIDGE AUER, CITY CLERK 11 HARBOR DEPARTMENT FEE SCHEDULE WORKSHEET CURRENT YEAR LAST CHANGE AJDUSTED PROPOSED RATE ADJUSTED IN CPI PER CPI RATE VEL FEES C ercial Fishing Slips Monthly Rate (Per Foot) S3.20 Oct-01 9.70% $3.51 $3.50 Commercial Slip Waiting List Deposit S286.00 Jul-97 21.20% S346.63 $347.00 Transient Slips Monthly Rate (Per Foot) $5.50 Aug-98 18.70% S6.53 $6.55 Transient Slips Daily Rate (Per Foot) S0.60 Aug-98 18.70% S0.71 $0.70 Head Float Berth - Monthly $122.00 Aug-98 18.70% $144.81 $145.00 Daily T-Pier Rate/FI. Dock - First 90 Days (Per Foot) $0.12 Jul-95 25.10% $0.15 $0.15 Daily T-Pier Rate - Over 90 Consecutive Days (Per Foot) S10.20 Jul-95 25.10% S0.25 $0.25 City Moorings - Monthly S132.00 Oct-01 9.70% $144.80 S145.00 City Moorings Private Tackle - Monthly S58.00 Oct-01 9.70% $63.63 $64.00 At-5 Anchorage Area 1-5 Days (Per Foot) $0.00 $0.00 At-5 Anchorage Area After 5 Days (Per Foot) $0.10 Jul-95 25.10% $0.13 $0.13 City Owned Moorings - Daily (Per Foot) $0.12 Oct-01 9.70% S0.13 $0.15 Monthly Impound Rate (Per Foot) S4.00 Oct-01 9.70% S4.39 S4.40 (Non -Impounded Vessels) Impound Mooring Rate - Daily (Per Foot) S0.41 Jul-97 21.20% $0.50 $0.50 (Impounded Vessels) Temporary Moorage Large Vessels/Equip. (Per Day) S107.73 Jul-97. 21.20% $130.57 $130.00 Dry Storage - Daily S2.00 Oct-01 9.70% S2.19 $2.20 SERVICE FEES Electrical - Daily S1.54 Jul-97 21.20% S1.87 $1.85 E ric Cord Rental - Daily S1.03 Jul-97 21.20% $1.25 $1.25 T-Pier Hoist - Per Use S8.00 Oct-01 9.70% $8.78 $8.75 T-Pier Hoist - Per Day $15.00 Oct-01 9.70% S16.46 $16.50 Fish Unloading - Per Hour $48.22 Jul-97 21.20% S58514 $58.00 Wharfage - Per Ton S0.50 Jan-99 14.70% S0.57 $0.60 LIVEABOARD FEES Permit Fee - Annual $76.95 Jul-97 21.20% $93.26 $95.00 Monthly Service Fee - Moorings $10.26 Jul-97 21.20% $12.44 $12.50 Monthly Service Fee - Slips $20.52 Jul-97 21.20% S24.87 $25.00 LEASE SITE ADMIN/SERVICE FEES Requiring City Council Approval $266.76 Jul-97 21.20% $323.31 $325.00 Departmental Approval $51.30 Jul-97 21.20% $62.18 $65.00 VESSEL ASSISTANCE One Patrol Officer, One Boat - Per Hour $75.92 Jul-97 21.20% S92.02 $92.00 Each Additional Officer - Per Hour $42.07 Jul-97 21.20% $50.99 $51.00 NOTES MPIty - Accounts Past Due Over 10 Days ='lo%a gency Vessel Assistance After Hours = 4.5 Hours Minimum Charge All Dockage Based on 36' Minimum Vessel Length or Slip Length (whichever is greater) 10% Discount for Leased Slips & Moorings for Yearly Prepayment (must pay for entire fiscal year) Transient Slip Users Limited to 3 Months as Long as.There are Vessels on the Sublease Waiting List Temporary Moorage - Large Marine Construction Vessels/Equipment for Vessels of Unusual Size O L 0 0 0 t n t n t n O O O O O O c n 0 M 0 0 to t0 c�0 � N � (N 0«')0 0 0 , 0 � O zr M t D O t n 666 N L6 N u 6466664 HEA I-3 b9 69 EA 69 EA tT 60 N V (O V) fA EA EA w EA EA Hi EA I Efl b9 EA 0 O w c0 () c Q) a % 0 T 7 C d m l l9 'p 0�" 'O T ma) O 'i Ec c a N cm � m 0 C O N LL} 2 0 a U. O N E V R y c 0 c °o o m a) cc o Co �Z) Qo ma)` aa)� T c m a a) cw o C L m T O O a) a) C -0 C N= o a L T cp 'O LL a) a) a) a'c c T O a m 7 dL O y m _U a) L �� o I I C 7 a) O LL Z U i i a o Co c0 a) E a) O >. .0 rn m m a > T N I m ca J O C J l m = 0 mC In TO a)Ot7 I N a) m LL >` U— N C a I I rn E Y a) m e Cm I CL a) }�L C M= a)L I MM C 0� C N J Ti 10 2 _O 0 a Q O 0 LL gnm oaYi @ LL a)2 1 c I mm2-0 m ,(D U) I 10 Z` ami @ o a) ac_i aciLL o)rnm m 0 0 3� 3�� o EOL ` E N N O YY - 1 N L)2co 0--0 a— E c c m U U m T — W a >. T >. > T E c UFF2 LL O QQUU 0CL0<< z y Ir y Lii m a O Q UCL ri m O ❑ to F O J � ® N (n @ L O O 00 (000 (O (00 OOO N O co I l- L) O N N L O O O (O N 1� N aO (O of O (O 6 6 0 V m (O 69 , L7 EA b9 ua N (O 69 O. ( 1 613� 69 (A w Cl) 69 - � � N N L_ N O U C N > (6 i a ° Q N c O rn - CL N L N co N co @ N N T N L co y N > N O p N N @ L U � -0 @ > N j 3 CL o a) p L OL - N N L L N C L7 N N 3 O m p n N N @ ® U 0 Q O w C - O' E O L O O :3 c Q E ) E @ r a> c E p co V. E L a@ a Q O. O I L 0 'C N L W C LN C C N @ @ N _ Q O @UL c 'O Q U fCn O T (/@ L�_OC N N E N @ Q Ua) N E @VO 0. L I I - On CL U. (n E c co I y T U Q N @ pU) O a) QO N@� @ a-o.c a E C cN N co -p.�@ -0 co C ) NN- N UO N -0L co E "O N U a)US C K N > N O O .� _E 0> a Q Z N> N a) a O C M U C N @ W LL N NOW=22 LLU @'O NJ(n U U C . C O) (p �% O w N p -0 N L @-p @ L rn E 0) : 7 '— _ in Q N > m fn N O d U U O O' EO @ W H @ d -VN N rn @ (Y E _N N E L O @ @ MnO - N N O U W F W W Q N a N 7 Z (7 O > ,Vi 7 N = Z U U 01 Z' O N E En J N C= U T m \ c O .0 m ® F c a)Q E p Q a w a F a s tL- 3 0 Ll CITY COUNCIL RESOLUTION NO. 11-05 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, AMENDING THE OPERATING AND CAPITAL IMPROVEMENT BUDGETS AND MAKING SUPPLEMENTAL APPROPRIATIONS FOR FISCAL YEAR 2004-2005 FOR THE CITY OF MORRO BAY THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay is required to appropriate and expend public funds to conduct its business activities on a day -today basis; and WHEREAS, the City Council finds and determines that the efficiency, economy and effectiveness of City government operations would be substantially impaired if such appropriation were not made; and WHEREAS, Section 37208 of the California Government Code provides that payments or demands conforming to a budget approved by ordinance or resolution need not be audited by the City Council prior to payment; and WHEREAS, the City Council adopted the original Operating and Capital Improvement Budgets on June 28, 2004 by adoption of Resolution No. 54-04; and WHEREAS, the City Council finds it necessary to amend said budgets. NOW THEREFORE, BE IT RESOLVED: 1) The operating budgets of the City of Morro Bay are amended by modifying appropriations as shown on the attached summary schedule. 2) Approve temporarily removing the positions of City Engineer, Capital Projects Manager and Utility Billing Clerk, from the General Fund, retroactive to January 1, 2005. Said positions are to be paid from the Water Revenue Fund. 3) Remove the four currently vacant positions from the City Council authorized positions roster. Those positions being one Police Officer (Police Department), one Firefighter (Fire Department), one Office Assistant IV (Public Services Departrnent/Administration) and one Maintenance Worker III — Streets (Public Services Department/Streets.) PASSED, APPROVED, AND ADOPTED, by the City Council of the City of Morro Bay, on the 28th day of March 2005, by the following vote to wit: AYES: Baxley, Peirce, Peters NOES: DeMeritt, Winholtz ABSENT: None OOWN •� _ _ • -4 m o - oC) c in w. C X O w N n- - nacUQ n A > o 3 O O a o p m F DC w H n o a n i S w G D a � w F yV O— O O\ O\ OO DD W A A A A A A W 00 OD J GO W N— O to `O `O W Oo to Oo to A �O — — A •..• U Oo — J O O 0 0 O O O �D N --• N — W— O O a\ Vf M 69 69 di Vi65 \ U Uo A AOO C C O OOO O O O O Ila z zz z R [D F� O� 9 v � E IVv Ii ® RESOLUTION NO. 10-05 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA ADOPTING THE POLICE DEPARTMENT'S RECOMMENDED FEE AND PARKING FINE ADJUSTMENTS THE CITY COUNCIL City of Morro Bay, California WHEREAS, at a public hearing at the regularly scheduled City Council meeting on February 28, 2005, the City Council received public input and reviewed the Police Department recommended changes to the Police Department Fee Schedule and parking fines; and WHEREAS, the City Council approved the Police Chief s recommended changes to the Police Department Fee Schedule and parking fines with one modification; and WHEREAS, Morro Bay Municipal Code Section 3.34.020 provides for review of the Master Fee Schedule by the City Council and for the adoption of such fees by City Council Resolution. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, that the recommended changes to the Police Department Master Fee Schedule ® and City parking fines are hereby adopted. BE IT FURTHER RESOLVED by the City Council of the City of Morro Bay that the .Morro Bay Master Fee Schedule as it relates to the Police Department fees and the City parking fines are hereby amended as attached and marked as Exhibits "A" and `B". PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 14`h day of March 2005 by the following vote: AYES: Baxley, Peirce, Peters NOES: DeMeritt, Winholtz ABSENT: None / 011x" ate/ BRIDGE AUER, City Clerk IJ W� 0 vl ICI ^ A via Ll u Lc. a 000000 0000000 � 6 C; - V1 V1 N V1 V1 N V N N N ^ d cr U 'o U .E O C O w�o CO w N c 0 0; " m U O GCcca a.o U r ❑'tea Eon ha � a `va � o U U V O V 'aV y p aci m F E o0. i too c m p U v�F( to r. c c N N V V U > qj O 0 U H U t: U 0 G 1 0 U) O O U O O O O O O O O O O O O O O O O O O O O O O O O O O Cl O Cl O O O O 0 0 �!t 00 000 O OVI VI N V1 N V1 V'1 v1 O O O N- Oi N Q b O O y M C L ti U D O w T V O.^D �O C ON 0. C O U> O U G •fC C t oD � > E y � •v°o `O y E U � o c E E o o _ ¢ on " a�i u_' T •o '> a n co v , O> c— y� � �� a >U N 3 �o 0 obE u� t E 0�.E y mU c`a g v v o p> E a�n m u� y.� e`,f o a.. U y U U T :j Q U) o U o V UO > U ® U U •N ao y O U U U a p U c v O c�a O •C -' U L .E •� C .' p 0 U .- U 00 o U U 0 3� C a o s r U U� U C �. to � � W R " cUi � L c•c t Oa y0 O L cU0 • �, F w @ C y U 7 U W z as c C�� H too jwy L a v e o y a� y t � •N• aU r O N c O c U °, N� .0 L> _. cr m cc E�� ti U C ct o f aci o c' V > b oto�owL o -o •EF c vi o o i a T � . �•� E .N c a.� G y � L E L� .O � p � y y `vcn °v $. o U ? 3 y to a L U U a @ y y a° i O )/(/ 2 ({§� �\ \\�i jkƒ7 _ - cq . kk ))§' ƒ§ ) -�_ qCD §! =0 o a�� \a EE �� u t[ C4 \/ \k)§ Q/§/ &u k) �}\\� �\/j}/j f/ kE- {(]\) ° - ! CLa -,_�� > s - .� .§ :{uaa` )} a6:= + Ez - ±/a§� i)(2§/( A§ �z 2,u@�;a [tee _- _ jk m } )\uce \j ) % � u k \ [ ? f } EXHIBIT B City of Morro Bay Parking Fines Revised 3-14-05 Offenses MSMc Veh. Code Fine Amount Parking wrin parkway 110.36,020 1 40 No Parking Areas 10.36.039 1 40 Posted Restricted Parking 10.36.040 I 40 72 Hour Parking 10.36.060 50 Veh. Repair on pub. Street 10.36.080 I 40 Parking on grade w/o turn wheels 110.36.090 1 1 40 Parking w1in space marking 110.36.110 1 I 40 Curb markings (red, yellow, etc.) 110.36.120 1 40 Parked in pass. loading zone 110.36.150 1 40 Parking in alley 10.36.160 1 I 40 Limited Time Parking 10.36.170 1 1 40 Violating diagonal parking 110.36.190 1 40 No stopping in designated area 110.36.200 1 1 _ 40 Overnight Camping 8.24.010 100 Parking in Fire Lane 1 22500.1 150 Blocking Driveway 122500e 1 40 Block Wheelchair Acc 122500L 1 93 Parked wrin 15' of Fire Hydrant 122514 1 100 Blocking Sidewalk 122500f 40 king a Bus Stop 1 122500i 75 king Intersection gridlock 1 122526 1 165 Curb Parking 18" or wrong way 122502A 1 40 Parking in Bike Lane 1 121211b Vehicle Abandonment on street 22523 1 goo Handica I 122507.8A 1 11 ® RESOLUTION NO.09-05 APPROVAL OF A SUBLEASE AGREEMENT FOR A PORTION OF LEASE SITE 67/67W LOCATED AT 575 EMBARCADERO BETWEEN YNEZ VIOLE-O'NEILL AND ROBERT AND DEBORAH BAIRD THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay is the lessor of certain property on the Morro Bay waterfront described as Lease Site 67/67W; and; WHEREAS, Ynez Viole-O'Neill, the lessee of said property; has requested approval of a sublease agreement with Robert and Deborah Baird; and, WHEREAS, all the necessary documents, and a letter of intent from the proposed . new sublessees have been provided and the assignment fee is paid. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that approval of the sublease agreement between Ynez Viole-O'Neill and Robert and Deborah Baird for a portion of Lease Site 67/67W, located at 575 ® Embarcadero is hereby approved. BE IT FURTHER RESOLVED, that the Mayor is hereby authorized to execute the Consent to Sublease Document. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting held thereof on the I4 day of March, by the following vote: AYES: Baxley, DeMeritt, Peirce, Peters, Winholtz NOES: None ABSENT: None BRIDGE AUER, CITY CLERK ® RESOLUTION NO.08-05 A RESOLUTION APPROVING AN APPLICATION AND CONTRACT EXECUTION FOR FUNDING FROM THE GENERAL/NATIVE AMERICAN ALLOCATION OF THE STATE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM AND COMMITMENT OF FUNDS AND AUTHORIZING THE EXECUTION OF A GRANT AGREEMENT AND ANY AMENDMENTS THERETO WITH THE STATE OF CALIFORNIA FOR THE PURPOSES OF THIS GRANT. The City Council, City of Morro Bay, California WHEREAS, the State Department of Housing and Community Development has announced the availability of approximately $44.5 million for the 2005/2006 General Allocation funding cycle of the Community Development Block Grant (CDBG) Program; and WHEREAS, this funding is in the form of grants to small cities and counties for eligible activities such as housing, public works and community facilities; and WHEREAS, the City of Morro Bay is in need of funding to replace the fire station located at 460 Bonita Street; and ® WHEREAS, the City has met all federal Citizen Participation requirements during the development of this application process; NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Morro Bay that the application for a 3-year, $1,500,000.00 for a Fire Station Replacement Project has been reviewed and is hereby approved as follows: 2005/2006 North Area Fire Station Rehabilitation Project: $425,500 General Administration: 37,500 Activity Delivery: 37,000 2006/2007 North Area Fire Station Rehabilitation Project: $425,500 General Administration: 37,500 Activity Delivery: 37,000 2007/2008 North Area Fire Station Rehabilitation Project: $425,500 General Administration: 37,500 Activity Delivery: 37,000 Total $1,500,000 ®Resolution No. 08-05 Page Two BE IT FURTHER RESOLVED if the grant application is approved, the City will provide local leverage for the rehabilitation program as follows: Staff time (General Administration) S 5,000 Staff time (Activity Delivery) 15,000 BE IT FURTHER RESOLVED that the Director of Public Services is hereby authorized and directed to act on the City's behalf in all matters pertaining to this application. If the application is approved, the Director of Public Services is authorized to enter into and sign the grant agreement and any amendments thereto with the State of California for the purposes of this grant. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Morro Bay held on March 14, 2005 by the following vote: AYES: Baxley, DeMeritt, Peirce, Peters, Winholtz NOES: None ABSENT: None ABSTAIN: None C 11 LOIS CAPPS 23RD DIsTRICT, CALIFORNIA 1707 LONGW RT HOUSE DWCE BMUNG WASNINGTON, DC M515-0522 (202) 225-3E01 ® COMMITTEE ON ENERGY AND COMMERCE COMMITTEE ON THE BUDGET Allen Jones Congreo of the Uniteb btatm gouge of Repregentatibeg February 16, 2005 Program Manager Community Development Block Grant Program Department of Housing & Community Development 2710 Gateway Oaks Drive North Building, Suite 190 Sacramento, California 95833 Dear Mr. Jones: D19TAIu 0i s: ❑ 1411 Mu . S.Eu. Sum 2M S. LM OaMM, CA 93401 (806)546-8348 ❑ 1216 STAEE STREET. Sum 403 S. B"S., CA 93101 18051730-1210 ❑ 141 SD A STREET, Sum ZOE 0..v, CA 9W30 (805) M5-3U0 I am writing in support of the City of Morro Bay's application for $1,500,000 to renovate Fire Station 54 located on the North Side of the City. The City has identified the needs of the community related to fire protection. You will find in the ® City of Morro Bay 5-Year Strategic Plan that residents living on the North Side do not currently receive adequate fire protection based on national averages and required response times. Additionally, residents on the North Side of Morro Bay meet the Target Income Group category as defined by HUD and would be the primary recipients of these services. I am a strong supporter of providing public protection to ensure our health and safety needs are met. Again, I support the City of Morro Bay's application to renovate Fire Station 54, consistent with all relevant rules and regulations. Thank you for your consideration. LC:gh 11 Sincerely, CO"t1Qll LOIS CAPPS Member of Congress FAINTEDONRFC MDPAPER C, J C 11 RESOLUTION NO.07-05 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA ADOPTING THE RECREATION AND PARKS COST OF SERVICES STUDY AND AMENDMENT TO THE MASTER FEE SCHEDULE FOR FACILITY RENTAL FEES THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City Council has reviewed the Recreation and Parks Cost of Services Study concerning program costs, revenues and cost recovery categories; and WHEREAS, the City Council has reviewed the amended Master Fee Schedule for Facility Rental Fees and the Morro Bay Municipal Code Section 3.34.020 provides for review of the Master Fee Schedule by the City Council and for the adoption of such fees by City Council Resolution. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Mono Bay, California, that the Recreation and Parks Cost of Services Study dated December 2004 is adopted, indicating cost recovery ratios for all recreation programs and services. BE IT FURTHER RESOLVED by the City Council of the City of Mono Bay that the Morro Bay Master Fee Schedule is hereby amended as attached and marked as Exhibit "A". PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 28'h day of February 2005 by the following vote: AYES: Baxley, DeMeritt, Peirce, Peters, NOES: None ABSENT: None ATTEST: BRIDGET113AUER, oc — . \ 2 \ \ � [ / \ / \ - 2 � a � � . cz � 2 _ \ - ] z t ) < r L- d •/ \. E — .— }}\ ^� \ \ Z e C O N L t C T � L a N i. U fez O y L � U L 4 U u G L u 1 R U o r_I rri r_i O Vf L. rU C t p Z p_ O O M z Z sF c Gl!) c 601) c sGs C- L L ^, L C o g z o _0 0 O O O L L ^ L '- z z eoi sss Ells Cl- sl� c r�i r�i p 0 O O O O O O O O ' L CC L m L O L U z z O � O C O C O z z _ __ _ O O �° .) N N 00 (,A 4) m z z �� C0s� rasa I�q Cl- < < U O cn A II O y CV Q y y o 3 u T O Y U L r 1 r L lJ U VI O O G ^ O O C J U O O VO v N r n .. 69 69 .. � L ^ 4 C U � I M 1 RESOLUTION NO. 06-05 APPROVAL OF A SUBLEASE AGREEMENT FOR A PORTION OF LEASE SITE 86/86W LOCATED AT 801 EMBARCADERO BETWEEN THE FISHBOWL LLC AND RON BOONE THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay is the lessor of certain property on the Morro Bay waterfront described as Lease Site 86/86W; and; and, WHEREAS, the Fishbowl LLC is the lessee of said property; and, WHEREAS, Roger Cliffe, manager of the Fishbowl LLC has requested approval of a sublease agreement with Ron Boone; and, WHEREAS, all the necessary documents, and a letter of intent from the proposed new sublessee has been provided and the assignment fee is paid. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that approval of the sublease agreement between the Fishbowl LLC and Ron Boone, dba Southern Port Traders, for a portion of Lease Site 86/86W, located at 801 Embarcadero is hereby ® approved. BE IT FURTHER RESOLVED, that the Mayor is hereby authorized to execute the Consent to Sublease Document. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting held thereof on the 28`" day of February, by the following vote: AYES: Baxley, DeMeritt, Peirce, Peters, Winholtz NOES: None ABSENT: None 0 BRIDGETTAUER, CITY CLERK RESOLUTION NO. 05-05 ® RESOLUTION AUTHORIZING AND DIRECTING THE INSTALLATION OF STOP SIGNS ON ESTERO AND FRESNO AVENUES AT THEIR ANCHOR STREET INTERSECTIONS THE CITY COUNCIL City of Morro Bay, California 'WHEREAS, the intersections of Estero and Fresno Avenues at Anchor Street are under the exclusive jurisdiction of the City of Morro Bay; and WHEREAS, it has been determined to be in the best interest of public health, safety, and welfare to install additional stop signs at these intersections; and WHEREAS, California Vehicle Code Section 21354 provides for said installations through the designation of a stop intersection and installation of stop signs at one or more entrances under its jurisdiction; and WHERAS, Morro Bay Municipal Code Section 10.12.060 provides for the assignment of right-of-way at intersections with a resolution of the city authorizing installation of stop signs; and ® WHERAS, it is appropriate to assign right-of-way at the intersections of Estero and Fresno Avenues at Anchor Street due to limited sight distances and other functional concerns. NOW, THEREFORE, BE IT RESOLVED, by the City Council, City of Morro Bay, California, that the intersection of both Estero and Fresno Avenues at Anchor Street are hereby designated as 2-way stop intersections hereto. BE IT FURTHER RESOLVED, that the Department of Public Services be authorized and directed to install appropriate delineation and signs to reflect these added restrictions and limitations. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting on the 24th day of January 2005, by the following vote. AYES: NOES: Peters, Baxley, DeMeritt, Peirce, Winholtz None ABSENT: None ABSTAIN: None ATTEST: 4 JAOiE BOUCHER, Deputy City Clerk ® RESOLUTION NO.04-05 A RESOLUTION APPROVING MORRO BAY GARBAGE SERVICE BASE YEAR RATE ADJUSTMENT APPLICATION REQUESTING AN INCREASE TO SOLID WASTE COLLECTION RATES THE CITY COUNCIL City of Morro Bay, California NVHEREAS, the City Council adopted Resolution 48-01 approving the Garbage, Recycling and Greenwaste Franchise Agreement with Morro Bay Garbage Service (MBGS) for collection services effective January 1, 2002 and setting the initial rates for collection for residential and commercial customers; and WHEREAS, pursuant to Article 8.4, the City will use the guidelines and approach outlined in the City of San Luis Obispo's "Rate Setting Process and Methodology Manual for Integrated Solid 6Yaste Management Rates"; and WHEREAS, on December 8, 2004, MBGS Controller Tom Martin submitted a base year rate adjustment application in conformance with the franchise agreement and rate setting manual requesting a 3.96% increase to solid waste collection rates: and WHEREAS, the Finance Director has reviewed the rate adjustment application and finds the calculation to be reasonable and acceptable in accordance with past practices. ® NOW THEREFORE BE IT RESOLVED, by the City Council of the City of Morro Bay the approval of Morro Bay Garbage Service's Base Year Rate Adjustment Application to increase the solid waste collection rates by 3.96% as outlined in Exhibit A. BE IT FURTHER RESOLVED, by the City Council of the City of Morro Bay the increased solid waste collection rates will become effective March 1, 2005. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 24th day of January 2005 by the following vote: AYES: NOES: ABSENT: ABSTAIN Peters, Baxley, DeMeritt, Peirce, Winholtz None None None ATTEST: /� XLI', M, VC.%f"dz,� ® JAYIIE BOUCHER, Deputy City Clerk Exhibit A 11 E CITY OF MORRO BAY 3.96% AVERAGE ACROSS THE BOARD INCREASE -COMMERCIAL FOR INTEGRATED SOLID WASTE ACTIVITIES EFFECTIVE 3-1-2005 COMMERCIAL WASTE WHEELERS (PER MONTH) size of COLLECTIONS PER WEEK WW 1 2 3 4 5 6 7 32 GALLON $25.54 $49.85 S65.20 $80.571 $104.89 S129.20 $153.99 64 GALLON $37.06 $65.20 $94.65 $127.91 $159.90 S186.76 11 $219.98 96 GALLON 549.85 $86.95 1 $127.91 1 $170.14 1 $207.25 1 $253.31 1 $305.65 Additional charge per can per collection: 58.42 COMMERCIAL DUMPSTER CONTAINERS (PER MONTHI Size of container COLLECTIONS PER WEEK (cubicyards) 1 2 3 4 5 6 7 1 $62.90 $97.45 $125.58 $157.59 $181.91 1 $226.68 $342.47 1.5 $76.96 $126.88 $170.40 $216.47 $259.97 $309.88 $454.62 2 $92.33 $161.42 $216.47 5275.32 $336.75 5398.17 $571.83 3 S119.21 $216.47 $304.76 $386.65 $500.55 1 .$577.32 $779.93 4 $157.59 $293.24 $407.13 $544.06 $680.98 1 55 1 S1,002.10 The rates shown above include the monthly container rental fee and are the same for bins and garwoods, when volume is identical. UNSCHEDULED EXTRA COLLECTIONS FOR COMMERCIAL CUSTOMERS 1 cubic yard (minimum charge) 1.5 cubic yards M 2 cubic yards 3 cubic yards 4 cubic yards Proposed Rate Schedule for Integrated Solid Waste Services effective 3-1-2005 Exhibit A • CITY OF MORRO BAY SINGLE FAMILY and MULTI -UNIT RESIDENTIAL (4 units or less) VOLUME -BASED RATES MINI -CAN SERVICE $7.73 per month for one 20 gallon wastewheeler container collected once each week ECONOMY RATE $12.37 per month for one 32 gallon wastewheeler container collected once each week STANDARD RATE $24.74 per month for one 64 gallon wastewheeler container collected once each week PREMIUM RATE S37.11 per month for one 96 gallon wastewheeler container collected once each week SERVICE AWAY FROM THE STREET CURB $6.74 per month in addition to above service level for each service requested (garbage,recycling, greenwaste) EXTRA CHARGES $6.18 EXTRA GARBAGE additional charge per 33 gallon can or equivalent volume per collection (minimum 1 can) S6.18 OVERFILLED WASTE WHEELER LID MUST BE FLAT $3.09 EXTRA RECYCLING additional charge per 33 gallon can or equivalent volume per collection (minimum 1 can) ® 53.09 EXTRA GREENWASTE additional charge per 33 gallon can or equivalent volume per collection (minimum 1 can) SWITCH WASTE WHEELER SIZES MORE THAN ONCE PER 12 MONTHS $22.48 S39.34 per white good, couch, or hide -a -bed (once a month) $11.25 1 per mattress, boxspring, or small chair, TV, microwave Proposed Rate Schedule for Integrated Solid Waste Services effective 3-1-2005 CJ Exhibit A ® CITY OF MORRO BAY C RATE SCHEDULE FOR COMMERCIAL RECYCLING ACTIVITIES IF YOU RECYCLE TWO CUBIC YARDS OR LESS (ABOUT THE SAME AS TWELVE 33 GALLON TRASH CANS) ONE TIME PER WEEK THERE IS NO CHARGE FOR THE RECYCLING COLLECTION. EVERY COMMERCIAL CUSTOMER IS ENTITLED TO RECEIVE A 96 GALLON BLUE WASTE WHEELER FOR RECYCLING. A 96 GALLON WASTE WHEELER IS 1/2 OF A YARD. IF YOU WANT ADDITIONAL CONTAINERS FOR RECYCLING THERE IS A CHARGE. IF YOU WANT MORE THAN ONE TIME PER WEEK SERVICE, YOU CAN FIND THE CHARGE BY LOOKING AT THE TABLE BELOW. IF YOU HAVE THREE CUBIC YARDS PICKED UP TWICE PER WEEK THE CHARGE IS $54.11. THE TWO FREE YARDS ARE BUILT INTO THE TABLE, DO NOT SUBTRACT THEM FROM YOUR THREE CUBIC YARDS. IF YOU HAVE ANY QUESTIONS ABOUT WHAT YOUR CHARGES SHOULD BE CALL THE OFFICE. COMMINGLED RECYCLING & CARDBOARD COLLECTION COMMERCIAL DUMPSTER CONTAINERS (PER MONTH) Size of container COLLECTIONS PER WEEK (cubicyards) 1 2 3 4 5 6 7 1 INCLUDED' $24.37 $31.40 $39.40 1 $45.48 1 $56.67 $85.62 1.5 INCLUDED' $31.72 $42.59 S54.11 $65.00 $77.47 $113.65 2 INCLUDED' $40.35 $54.11 $68.83 $84.19 $99.54 $142.96 3 $29.79 $54.11 $76.18 $96.67 $125.14 $144.33 $194.99 4 $39.40 $73.31 1 $101.78 1 $136.01 1 $170.26 $192.64 1 $250.52 The rates shown above include the monthly container rental fee and are the same for bins and garwoods, when volume is identical. 5.61384 There is a $5.61 per month rental fee if you want a blue steel bin The $5.61 fee is waived once you begin paying for the pickup service. WHITE OFFICE PAPER COLLECTION White office paper can be commingled with other recycling in your blue waste wheeler. In office collection of white/colored paper is available at $46.30 per hour STYROFOAM COLLECTION Styrofoam is no longer collected for recycling. It should be thrown away as trash. 0 Proposed Rate Schedule for Integrated Solid Waste Services effective 3.1-2005 ® RESOLUTION NO.03-05 A RESOLUTION APPROVING THE CITY OF MORRO BAY PROGRAM INCOME REUSE PLAN FOR COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS The City Council, City of Morro Bay, California WHEREAS, the City Council of the City of Morro may continue to receive grant funding from the Community Development Block Grant Program; and WHEREAS, the repayment of these funds has and will generate program income; and WHEREAS, pursuant to the 24CFR 570.489 (e) and (0, 24CFR 570.500, 24CFR 570.504, and the contracts executed with the Department of Housing and Community Development, the City has developed a Program Income Reuse Plan made part of and attached hereto as Exhibit A. BE IT RESOLVED by the City Council of the City of Morro Bay hereby approves the Program Income Reuse Plan attached hereto as Exhibit A; and BE IT FURTHER RESOLVED that City Manager is hereby authorized to sign all documents related to and required by the program, and to implement the program on behalf of the City of Morro Bay. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Morro Bay held on January 24, 2005 by the following vote: AYES: Peters, Baxley, DeMeritt, Peirce, Winholtz NOES: None ABSENT: None ABSTAIN':.' -.-None ATTEST: ® J BOUCHER, Deputy City Clerk ATTACHMENT Miscellaneous Income Defined. ® If the total amount of income generated from the use of CDBG funds (and retained by the City) during a single program year (July 1 through June 30) is less than $25,000, then these funds shall not be deemed to be program income and shall not be subject to these polices and procedures. However, Quarterly and Annual Program Income Reports must be submitted regardless of whether the $25,000 threshold is reached or not. General Administration (GA) Cost Limitation. Up to eighteen percent (18%) of the total program income expended on all activities during a single program year may be used for CDBG general administration expenses. Reuses of Program Income. Program income must be: a) disbursed for an activity funded under an open grant prior to drawing down additional Federal funds; b) forwarded to the State of California, Department of Housing and Community Development (Department); or c) distributed according to this Program Income Reuse Plan that has been approved by the Department d) distributed to a Revolving Loan Account (RLA) according to this program reuse plan ® after adoption of the plan by the City Council and approval by the Department of Community Development. The City's program income will be used to fund eligible CDBG activities that meet a national objective. Eligible activities and national objective requirements are specified in federal statute at Section 105(a) and in federal regulations at 24 CFR 570.482 and 24 CFR 570.483. The City reserves the option of utilizing program income to fund/augment a CDBG funded activity included in a grant agreement. The City must first follow the citizen participation process, hold a public hearing, obtain a governing body resolution, and obtain approval from the State CDBG Program. This Reuse Plan shall be adopted by the local governing body only after compliance with the City's citizen participation process as specified in Federal Regulations at 24 CFR 570.486, Local Government Requirements. Planning Activities. The City reserves the option of utilizing program income, within the 18 percent general administration annual cap, to fund planning for CDBG-eligible activities. Such planning activities may include: cash match for a State CDBG Planning and Technical Assistance Grant; environmental reviews or other studies necessary for CDBG-eligible projects or programs; or application preparation for CDBG or other grants/loans to supplement funding for CDBG- eligible activities. The costs of such planning activities may be charged to an RLA if the ® planning is for the same activity as the RLA. Otherwise, PI may only be expended on planning activities in conjunction with an open CDBG Planning and Technical Assistance grant. City of Morro Bay 2 Reuse Plan — December 2004 ® RESOLUTION NO. 02-05 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, APPROVING THE PROPOSED BUDGET CALENDAR FOR FISCAL YEARS 2005-2006 THROUGH 2006-2007 AND RESCINDING CITY COUNCIL RESOLUTION 59-96 AND MODIFYING CITY COUNCIL RESOLUTION 42-04 TO FACILITATE BUDGETARY ACCURACY CITY COUNCIL CITY OF MORRO BAY, CALIFORNIA WHEREAS, the City of Morro Bay is required to appropriate and expend public funds to conduct its business activities on a day -today basis; and WHEREAS, the City Council finds and determines that the accuracy of the budget estimates are of paramount importance to an efficient budget development process; and WHEREAS, the first step in the budget development process is to establish a Proposed Budget Calendar that outlines the milestones that can be used to measure progress in the budgets ® orderly development; and WHEREAS, the City Council recognizes that imposing arbitrary and premature deadlines and other mandates upon the budget development process may run counter to development of an efficient and accurate budget; and WHEREAS, the City Council acknowledges the continuing efforts of staff to operate within an approved budget and manage savings wherever feasible; and WHEREAS, the City Council established a policy effective August 12, 1996 through adoption of resolution 59-96 (copy attached) which requires that the budget hearing begin the first week in May; and WHEREAS, the City Council established a policy effective May 24, 2004 through adoption of Resolution 42-04 (copy attached) that requires the City Manager to provide budget documents to the City Council a minimum of seven days before the first hearing each May. C] E D City Council Resolution No. 02-05 January 10: 2005 NOW THEREFORE, BE IT RESOLVED: 1) That the City Council adopts the Proposed Budget Calendar for Fiscal Years 2005-2007 (copy attached.) 2) Furthermore, that the CityCouncil authorizes the recision of previously approved Resolution 59-96 and modifying Resolution 42-04 to remove any references to the month of May, in order to provide more time to improve accuracy of the proposed budget, and 3) That the City Council will continue to hold Public Budget Workshops and continues to desire to adopt a City Budget by June 3e of each year. PASSED, APPROVED, AND ADOPTED, by the City Council of the City of Morro Bay, on the 10th day of January, 2005, by the following vote to wit: AYES: NOES: ABSENT: Baxley, DeMeritt, Peirce, Peters, Winholtz None None .. I ill iAUER, City Clerk CITY COUNCIL RESOLUTION NO. 01-05 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, ADOPTING THE CITY OF MORRO BAY INVESTMENT POLICY AND DELEGATING AUTHORITY TO THE CITY TREASURER TO INVEST IDLE FUNDS CITY COUNCIL CITY OF MORRO BAY, CALIFORNIA WHEREAS, the City Council of the City of Morro Bay desires to prudently invest idle funds of the city to maximize use of taxpayer funds; and WHEREAS, the California Government Code Section 53600.3 states that "all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard."; and WHEREAS, the California Government Code Section 53646 requires all local agency governing boards to annually adopt an investment policy and requires the Treasurer or Chief Financial Officer to provide an investment report to the legislative body at least quarterly; and WHEREAS, the California Government Code Section 53607 authorizes the legislative body to delegate investment authority and responsibility to the Treasurer for a period not to exceed one year but renewable annually, upon review; and ® WHEREAS, the City of Morro Bay first adopted its current investment policy in 1996 and that policy was further refined during 1997 and 1998. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that the Statement of Investment Policy, attached hereto, is adopted and that the City Treasurer is hereby authorized to carry out this policy, on behalf of the City Council. PASSED, APPROVED, AND ADOPTED, by the City Council of the City of Morro Bay, on the I Oth day of January, 2005, by the following vote to wit: AYES: NOES: ABSENT: Baxley, DeMeritt, Peirce, Peters, Winholtz None None BRIDGET]�BAUER,