HomeMy WebLinkAboutResolutions 01-07 to 63-07RESOLUTIONS
2007
NO. TITLE ADOPTED
63-07 RESOLUTION ACCEPTING AN OFFER OF -
DEDICATION OF AN EASEMENT FOR CITY
RIGHT OF WAY AND PUBLIC SIDEWALK
PURPOSES ALONG THE PINEY WAY
FRONTAGE OF 461 PINEY WAY 12-10-07
A
RESOLUTIONS
2007
NO. TITLE ADOPTED
54-07 RESOLUTION ACCEPTING ROBERT HENDRIX
RESIGNATION AS CITY MANAGER AND
APPROVING APPOINTMENT OF ANDREA
LUEKER AS INTERIM CITY MANAGER 10-22-07
55-07 RESOLUTION ESTABLISHING USER RATES
FOR RESIDENTIAL WASTEWATER SERVICES 11-13-07
56-07
RESOLUTION AUTHORIZING SUBMISSION OF
APPLICATIONS FOR CALIFORNIA PROPOSITION
1B TRANSIT FUNDS
11-13-07
57-07
RESOLUTION AUTHORIZING SUBMISSION OF
APPLICATIONS TO THE RURAL TRANSIT FUND
®
GRANT PROGRAM
11-13-07
58-07
RESOLUTION RELATING TO THE CLASSIFICATION
AND TERMS OF EMPLOYMENT OF THE
MISCELLANEOUS EMPLOYEES OF THE
CITY OF MORRO BAY
11-13-07
59-07
RESOLUTION RELATING TO THE CLASSIFICATION
AND TERMS OF EMPLOYMENT OF POLICE
EMPLOYEES OF THE CITY OF MORRO BAY
11-13-07
60-07 RESOLUTION OF INTENT TO PURCHASE THE
FINANCIAL SOFTWARE UPGRADE FROM
NEW WORLD SYSTEMS 12-10-07
61-07 RESOLUTION APPROVING AMENDMENT #1
TO THE LEASE AGREEMENT FOR LEASE SITE
34W LOCATED ADJACENT TO 225 MAIN ST. 12-10-07
62-07 RESOLUTION APPROVING SECOND AMENDMENT
TO THE LEASE AGREEMENT FOR LEASE SITE
30W-33W LOCATED ADJACENT TO 201 MAIN ST. 12-10-07
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0 RESOLUTIONS
2007
NO. TITLE ADOPTED
47-07 RESOLUTION ADOPTING THE DEVELOPMENT
IMPACT FEE CALCULATION AND NEXUS
REPORT FOR THE CITY OF MORRO BAY, AND
SUBSEQUENT DOCUMENTATION ACCOMPANYING
SUCH REPORT AND ESTABLISHING DEVELOPMENT
IMPACT FEES FOR ALL DEVELOPMENT WITHIN
THE CITY 10-08-07
48-07 RESOLUTION ADOPTING THE FINAL PARKING
MANAGEMENT PLAN FOR THE CITY 10-08-07
49-07 RESOLUTION AUTHORIZING IN -LIEU PARKING
FEE FUNDS TO BE APPROPRIATED FOR THE
® PARAKING MANAGEMENT PLAN
RECOMMENDATION ON TROLLEY EXPANSION 10-08-07
50-07 RESOLUTION ADDING TO AND AMENDING THE
COUNCIL POLICIES AND PROCEDURES MANUAL
REGARDING USE OF CITY LETTERHEAD AND
USE OF SPEAKER SLIPS AT CITY COUNCIL
MEETINGS 10-08-07
51-07 RESOLUTION IN SUPPORT OF SHIPS TO REEFS
INC. CONCEPT OF ESTABLISHING ARTIFICIAL
REEFS IN THE WATERS OFF SHORE OF ESTERO
BAY IN SAN LUIS OBISPO COUNTY 10-08-07
52-07 RESOLUTION ADOPTING AN EXPENSE
REIMBURSEMENT POLICY FOR ELECTED AND
APPOINTED OFFICIALS 10-08-07
53-07 RESOLUTION ADOPTING CHANGES TO THE
MORRO BAY MASTER FEE SCHEDULE 10-08-07
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® RESOLUTIONS
2007
NO. TITLE ADOPTED
41-07 RESOLUTION FOR THE APPLICATION/
AUTHORIZATION/REE%IBURSEMENT FOR
THE SMALL COMMUNITY WASTEWATER
GRANT PROGRAM 08-27-07
42-07 RESOLUTION AUTHORIZING THE CITY TO
ENTER INTO AN AMENDMENT TO GRANT
AGREEMENT WITH THE DEPARTMENT OF
BOATING AND WATERWAYS FOR MORRO
BAY STATE PARK REHABILITATION PROJECT 08-27-07
43-07 RESOLUTION AUTHORIZING THE SUBMITTAL
OF THE CALIFORNIA STATE DEPARTMENT OF.
HOUSING AND COMMUNITY DEVELOPMENT
FOR FUNDING UNDER THE HOME INVESTMENT
® PARTNERSHIPS PROGRAM 08-27-07
44-07 RESOLUTION AUTHORIZING COOPERATIVE
PURCHASING AGREEMENTS 09-10-07
45-07 RESOLUTION ACCEPTING $100,000 FROM THE
STATE OF CALIFORNIA CITIZENS OPTION FOR
PUBLIC SAFETY (COPS) PROGRAM 09-24-07
46-07 RESOLUTION DESIGNATING PRIMARY AND
SECONDARY PROPOSERS FOR LEASE SITE
87-88/87W-88W AND AUTHORIZATION FOR THE
PRIMARY PROPOSER, CALDWELL/REDICAN
TO APLY FOR DEVELOPMENT PERMITS FOR
LEASE SITE 87-88/87W-88W LOCATED AT
933 EMBARCADERO 09-24-07
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RESOLUTIONS
2007
NO. TITLE ADOPTED
32-07 RESOLUTION ESTABLISHING
APPROPRIATIONS LIMITS 06-11-07
33-07 RESOLUTION AUTHORIZING THE
ESTABLISHMENT OF A LINE OF
CREDIT WITH FIRST BANK OF
SAN LUIS OBISPO AND DESIGNATING
TRANSACTION OFFICERS 06-11-07
34-07 VOID
35-07 RESOLUTION DIRECTING THE LEVY OF
THE ANNUAL ASSESSMENT FOR THE
CLOISTERS LANDSCAPING AND LIGHTING
MAINTENANCE ASSESSMENT DISTRICT 06-25-07
36-07 RESOLUTION DIRECTING THE LEVY OF
THE ANNUAL ASSESSMENT FOR THE
NORTH POINT NATURAL AREA LANDSCAPING
AND LIGHTING MAINTENANCE ASSESSMENT
DISTRICT 06-25-07
37-07 RESOLUTION APPROVING TWO SUBLEASE
AGREEMENTS FOR PORTIONS OF LEASE
SITE 124-128/124W-128W LOCATED AT 1215
EMBARCADERO 07-09-07
38-07
� 11
39-07 RESOLUTION AMENDING THE GUIDELINES FOR
MAJOR VEGETATION REMOVAL, REPLACEMENT
AND PROTECTION 07-09-07
40-07 RESOLUTION APPROVING INITIATION OF
PROCEEDINGS FOR THE ANNEXATION OF CITY -
OWNED PROPERTIES IN THE CHORRO VALLEY 08-13-07
®, RESOLUTIONS
2007
NO. TITLE ADOPTED
25-07 RESOLUTION AWARDING THE CONTRACT FOR
MORRO BAY HARBORWALK PROJECT 05-14-07
26-07 RESOLUTION ACCEPTING AN OFFER OF
DEDICATION OF AN EASEMENT FOR PUBLIC
SIDEWALK PURPOSES ALONG THE PARK
STREET FRONTAGE OF 210 ATASCADERO RD. 05-29-07
27-07 RESOLUTION ACCEPTING AN OFFER OF
DEDICATION OF A 10' WIDE SEWER EASEMENT
AT MINERS ACE HARDWARE LOCATED AT
520 ATASCADERO ROAD 05-29-07
28-07 RESOLUTION DECLARING THE CITY'S
® INTENTION TO LEVY THE ANNUAL ASSESSMENT
FOR THE MAINTENANCE OF THE CLOISTERS
PARK AND OPEN SPACE 05-29-07
29-07 RESOLUTION DECLARING THE CITY'S
INTENTION TO LEVY THE ANNUAL ASSESSMENT
FOR THE MAINTENANCE OF THE NORTH
POINT NATURAL AREA 05-29-07
30-07 RESOLUTION AUTHORIZING TO ENTER INTO AN
AGREEMENT WITH THE UNITED STATES
DEPARTMENT OF AGRICULTURE RURAL
DEVELOPMENT'S COMMUNITY FACILITIES
PROGRAM FOR PURCHASE OF FIRST RESPONDER
EQUIPMENT 05-29-07
31-07 RESOLUTION ADOPTING THE OPERATING BUDGETS
FOR THE 2007-2009 BUDGET CYCLE AND
APPROPRIATING FUNDS FOR THE FISCAL YEAR
2007-2008 FOR THE CITY OF MORRO BAY 05-29-07
El 1
RESOLUTIONS
2007
NO. TITLE ADOPTED
18-07 RESOLUTION SUPPORTING ESTABLISHMENT
OF AN URBAN FOREST MANAGEMENT PLAN
AND COMPREHENSIVE TREE PROGRAM FOR
THE, CITY OF MORRO BAY 04-09-07
19-07 RESOLUTION APPROVING A SUBLEASE FOR
A PORTION OF LEASE SITE 67/67W, LOCATED
AT 575 EMBARCADERO 04-23-07
20-07 RESOLUTION OF ASSIGNMENT FOR
LEASE SITE 86/86W LOCATED AT 801
EMBARCADERO, AND APPROVING A
SUBLEASE AGREEMENT FOR A PORTION
OF LEASE SITE 86/86W BETWEEN 801
EMBARCADERO LLC AND EMBARCADERO
®, GRILL LLC 04-23-07
21-07 RESOLUTION INITIATING PROCEEDINGS TO
LEVY THE ANNUAL ASSESSMENT FOR
CLOISTERS LANDSCAPING AND LIGHTING
MAINTENANCE ASSESSMENT DISTRICT 05-14-07
22-07 RESOLUTION INITIATING PROCEEDINGS TO
LEVY THE ANNUAL ASSESSMENT FOR THE
NORTH POINT NATURAL AREA LANDSCAPING
AND LIGHTING MAINTENANCE ASSESSMENT
DISTRICT 05-14-07
23-07 RESOLUTION APPROVING SUBLEASE
AGREEMENT FOR A PORTION OF LEASE SITE
53-56/53W-56W LOCATED AT 501 EMBARCADERO 05-14-07
24-07 RESOLUTION AMENDING COUNCIL POLICIES
AND PROCEDURES MANUAL REGARDING
EX PARTE COMMUNICATIONS 05-14-07
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RESOLUTIONS
2007
NO. TITLE ADOPTED
09-07
10-07
11-07
RESOLUTION ACCEPTING THE FINAL MAP
FOR AN APPROVED 7-LOT RESIDENTIAL
SUBDIVISION KNOWN AS TRACT 2602
RESOLUTION OF INTENTION TO APPROVE
02-26-07
AN AMENDMENT TO THE CONTRACT BETWEEN
THE BOARD OF ADMINISTRATION CALIFORNIA
PUBLIC EMPLOYEES' RETIREMENT SYSTEM 02-26-07
RESOLUTION AMENDING AND ESTABLISHING
GUIDELINES FOR MAJOR VEGETATION
REMOVAL, REPLACEMENT AND PROTECTION
03-12-07
12-07 RESOLUTION APPROVING ENTERING INTO
COOPERATIVE AGREEMENT WITH THE SAN
LUIS OBISPO COUNCIL OF GOVERNMENTS 03-12-07
13-07 RESOLUTION APPROVING AMENDMENT #3
TO LEASE AGREEMENT FOR LEASE SITE
144/144W LOCATED AT 1287 EMBARCADERO 03-12-07
14-07 RESOLUTION APPROVING SUBLEASE FOR A
PORTION OF LEASE SITE 113W LOCATED
ADJACENT TO 1215 EMBARCADERO 03-12-07
15-07 RESOLUTION RELATING TO THE CLASSIFICATION,
COMPENSATION AND TERMS OF EMPLOYMENT
OF MANAGEMENT EMPLOYEES 03-12-07
16-07 RESOLUTION RELATING TO THE CLASSIFICATION,
COMPENSATION AND TERMS OF EMPLOYMENT
OF CONFIDENTIAL EMPLOYEES 03-12-07
17-07 RESOLUTION APPROVING AMENDMENT #1
TO LEASE AGREEMENT FOR MOORING ZONE
Al 4 WITH MORRO BAY MARINA 03-26-07
RESOLUTIONS
2007
NO. TITLE ADOPTED
01-07 RESOLUTION ADOPTING THE CITY
INVESTMENT POLICY AND DELEGATING
AUTHORITY TO THE CITY TREASURER TO
INVEST IDLE FUNDS 01-08-07
02-07 RESOLUTION AUTHORIZING THE
EXAMINATION OF TRANSACTIONS
(SALES) AND USE TAX RECORDS 01-08-07
03-07 RESOLUTION PROVIDING WORKERS'
COMPENSATON COVERAGE FOR
IDENTIFIED CITY VOLUNTEERS PURSUANT
TO THE PROVISIONS OF SECTION 3363.5
OF THE LABOR CODE 01-08-07
® 04-07 RESOLUTION APPROVING MORRO BAY
GARBAGE SERVICE INTERIM YEAR RATE
ADJUSTMENT APPLICATION AND ADJUSTING
SOLID WASTE COLLECTION RATES 01-22-07
05-07 RESOLUTION APPROVING SUBMISSION OF
STATE TRANSIT ASSISTANCE GRANT
APPLICATIONS 01-22-07
06-07 RESOLUTION RELATING TO THE
CLASSIFICATION, COMPENSATION AND
TERMS OF EMPLOYMENT OF FIRE
EMPLOYEES 01-22-07
07-07 RESOLUTION AUTHORIZING THE MID -YEAR
2006/07 AMENDMENTS TO THE CITY'S
OPERATING AND CAPITAL IMPROVEMENT
BUDGETS 02-13-07
08-07 RESOLUTION APPROVING ADOPTION OF
CALIFORNIA PUBLIC EMPLOYEES'
DEFERRED COMPENSATION PLAN 02-26-07
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RESOLUTION NO. 63-07
A RESOLUTION ACCEPTING AN OFFER OF DEDICATION
OF AN EASEMENT FOR CITY RIGHT OF WAY AND
PUBLIC SIDEWALK PURPOSES ALONG THE PINEY WAY
FRONTAGE OF 461 PINEY. WAY
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, on March 26, 2007 a Coastal Development Permit was issued for
demo/reconstruct of a single family residence at 461 Piney Way; and
WHEREAS, the Piney Way frontage of 461 Piney Way requires an offer of
dedication to the City for City Right of Way and sidewalk purposes; and
WHEREAS, the Owners, Luis Dean Calderwood, Karen Calderwood and
Michael Calderwood has made an irrevocable and perpetual offer to dedicate the required
eighteen foot wide easement to the City; and
WHEREAS, it is in the public interest to accept the offer.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Morro Bay that the attached offer of dedication is hereby accepted on behalf of the
public.
PASSED AND ADOPTED bj the City Council of the City of Morro Bay at a
regular meeting thereof held on the 10 day of December 2007 by the following vote:
AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters
NOES: None
ABSENT: None
® RECORDING REQUESTED BY: and
WHEN RECORDED MAIL TO:
City of Morro Bay Public Services
955 Shasta Avenue
Morro Bay, CA 93442
OFFER OF DEDICATION
(for streets and highway purpose)
For a valuable consideration, receipt of which is hereby acknowledged, Luis Dean Calderwood,
Karen Calderwood and Michael Calderwood,
the undersigned, being present fee title owner(s) of record of the herein described parcel of land,
do hereby make an irrevocable offer of dedication to the City of Morro Bay and its successors or
assigns, for street and highway purposes, the real property situated in the City of Morro Bay,
County of San Luis Obispo, State of California, as described in EHIBIT "A" and shown on
Exhibit `B" attached hereto.
It is understood and agreed that the City of Morro Bay and its successors or assigns shall incur
no liability with respect to such offer of dedication, and shall not assume any responsibility for
the offered parcel of land or any improvements thereon or therein, until such offer has been
accepted by appropriate action of the City of Morro Bay.
® The provisions hereof shall insure to the benefit of and be binding upon heirs, successors, assigns
and personal representatives of the respective parties hereto.
IN WITNESS WHEREOF, these presents have executed this instrument this �6 day
of Now 200 7.
A.P.N. 066 - 186 - 005
Date 20PT
11
Printed Namefritle: Luis Dean Calderwood/Owner
Printed Nameffitle: Karen Calderwood/Owner
Printed Nameffitle: Michael Calderwood/0wner
NOTARY PUBLIC CERTIFICATE
STATE OF CALIFORNIA
COUNTY OF SAN LUIS OBISPO
IV1e1i.�`x� I uG�a.l'r
On \/, 007beforeme NDfkLt1 PI)h1jc_ personally appeared P n !i stow><DooC�-
personally known to me (or proved to me on the ba i�satisfactory evidence) to be the person(Sj whose manex�
is/subscribed to the within instrument and acknowledge to me that he/,k%/tby;� executed the same in hisfbl5rhV
authorized capacity(iP4 and that by his /hir/thpr signature(s) on the instrument the perso?(s), or the entity upon
behalf of which the person(o'acted, executed the instruments.
WITNESS my hand and official seal. MELISSA TUCI�R
COMM. t1886771 0
NOT PUBLIC-CALIFORNIA
`i=•�}� SAN LUIS OBISPO COUNTY
My Comm. Expires May 14, 2010 b
I��y "♦"l-'llTC2'ITl2"R lrl-l-S�
NOTARY PUBLIC CERTIFICATE
STATE OF CALIFORNIA
COUNTY OF SAN LUIS OBISPO i C�
On N�,r 1/ /� 1
OV. I (o 02001 before me NO rG u r PUb � r C, personally appeared ka,lj yl cza Ax.0 ocx__ -
peryl known to me (or proved to me on the basis of satisfactory evidence) to be the personaaj whose mane(,, jy
is/a subscribed to the within instrument and acknowledge to me that hlshe/thK executed the same inA/her/*h
authorized capacity(i, and that by hiss/her/tt}eir signature(dJ on the instrument the person(sr the entity upon
behalf of which the person(_5�"acted, executed the instruments.
WITNESS my hand and official seal. MELISSA TUCKER •
COMM. t1666771
O
NOTARY PUBLIC-CALIFORNIA p
SAN LUIS OBISPO COUNTY �
MM My Comm. Expires May 14, 2010 d
flu
NOTARY PUBLIC CERTIFICATE
STATE OF CALIFORNIA
COUNTY OF SAN LUIS OBISPO Qo0beoreme P , personally appeared�
ichae i,,,jOnjIpf.
personally known to me (or proved to me on the b sis of satisfactory evidence) to be the person(s) whose mane
is/ayisubscribed to the within instrument and acknowledge to me that he/sV/tho executed the same in his/I Ityu
authorized capacity(ieK and at by his /llei/thgdsignature(�on the instrument the person(�or the entity upon
behalf of which the personcted, executed the instruments.
WITNESS my hand and officialseal.
MELISSA TUCKER
" l � IL�,C�[yC.`i
=••c[
'=•�
NOTARY PUBLIC-CALIFORNIA 3
'
SAN LUIS OBISPO COUNTY
My Comm. Expires May 14, 2010 d
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EXHIBIT A
Offer of Dedication
® Legal Description
A portion of Lot 6 of Block E of the Cerrito Addition to the Town of Morro, in the City of
Morro Bay, County of San Luis Obispo according to the map thereof, filed March 14,
1888, In Book A Page 34 of Maps, records of said County, California and that portion of
the Northeast quarter of the Southeast quarter of Section 36, In Township 29 South,
Range 10 East, Mount Diablo Base and Meridian, according to the official plat or plats of
the Survey of said lands returned to the General Land Office by the Surveyor General,
described as follows;
The Easterly 18 feet of that certain parcel of land described indeed to Raymond G.
Massey et. ux. recorded in Book 592 at page 411 more particularly described as follows:
Beginning at the Southwest corner of that certain parcel of land described in deed to
Raymond G. Massey et. ux. recorded in Book 592 at page 411 as shown on Record of
Survey filed in Book 96 of Records of Surveys at page 16; thence South 890 32' 42" East
along the south line,of said Lot 6 a distance of 58.23 feet to a 1 1/4" iron pipe "LS
3877"; thence continuing South 890 32' 42" East a distance of 4.36 feet to the True
Point of Beginning; thence
1) South 890 3242" East along the south line of land described in deed to Raymond
G. Massey et. ux. recorded in Book 592 at page 411 a distance of 18.00 feet to the
® southeast corner thereof, said point being witnessed by a 5/8" rebar "LS 5702"; thence
2) North 000 30' 32" East along the east line of said section 36 and the east line of
land described in deed to Raymond G. Massey et. ux. recorded in Book 592 at page 411
a distance of 40.00 to the northeast corner thereof, said point being witnessed by a
concrete nail in pavement with tag "LS 5702"; thence
3) North 890 27' 09" West along the north line of land described in deed to
Raymond G. Massey et. ux. recorded in Book 592 at page 411 a distance of 18.00 feet;
thence
4) South 00030' 32" West parallel and distant 18.00 feet from the east line of
Section 36 a distance of 40.03 feet to the True Point of Beginning.
The above -described parcel is graphically shown on Exhibit B attached hereto and made
a part hereof.
M:\06-099 461 Piney Way MB\Legal Description\Legal Description offer of Dedication.ci 9�.\
9/25/2007 9:17 AM C ��
Apr CA
EXHIBIT "B"
FND N&T N o
"LS5139" D
PER T RUSED)3 N N
NO
a
22j \"LS 3ND d77RENAR
SOUTH STREET h° PER R3 AND RWELL
4
`ro — 60.00;R1
58.26'M
58.00D1 &D2 CORNERABROM ER46TIESK
M&R1 I (BY LENGER)
N
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+� ANG. 139'46'44"M&R4
0 cn o_ m o
N oo I R _ LINE EST. BY 64 RS 9
C m n0 w /� 0R `' r ,�3r- I NOT ACCEPTED
o0o r^�iN I f�J J
mm Oar
jii S A� z o0 0 81.0'D1&D2 EAST LINE OF THE N.W.1/4
(G m tq N89'27'09"W 80.99'M �\ OF THE S.E. 1/4 OF SECTION
00 (j58.23 M
not 592 O R /� J J o N89'2T09"W 18.00,
DOC. N0. 2006-052107 Iot N00'26'00"E 40.00'Dl
N N oo N N00'30'32"E 40.00'M
00 .0 n 18' OFFER OF DEDICATION
00 o Wo 'o FOR STREET PURPOSES
o
r ('NNN89'29'30"W 81'D1'N89'32' 2"W 18.00'
M0N893242W 80.590
rmm cQ' 58.23M / Z
moo 62.59'M o } LEGEND
P' N o • FND .5/8" REBAR
N 4 FND N&T l o c o IQ OR NAIL & TAG 'LS5702"
p IS 5139" FND 1 1/4"IP n ;u UNLESS OTHERWISE NOTED.
PER R3 ' IS 3877" I i :r
S37'59'21"E PER R4
00
0.30'F.T.C. I J W
N
Z r.�j ao
FND 1 1/4"IP p33
LS 3877' I I c
S� PER R4 \ w" o
o
`J 60.06'R4 00 0
60.l8 M1 In N SCALE 1"=30'
VISTA COURT
M
MICHAEL B. STANTON, PLS 5702 OFFER OF DEDICATION FOR
2146 PARKER STREET, SUITE A-1 STREET PURPOSES
SAN LUIS OBISPO, CA 93401 PINEY WAY, CITY OF MORRO BAY
• 805-594-1960
® RESOLUTION NO.62-07
APPROVAL OF THE SECOND AMENDMENT TO THE
LEASE AGREEMENT FOR
LEASE SITE 30W-33W, LOCATED ADJACENT TO 201 MAIN STREET
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 30W-33W; and,
WHEREAS, Jay and Mereline Coakley, dba Bayfront Marina, are the lessees of
said property; and,
WHEREAS, said Lease Site expires January 1, 2008; and,
WHEREAS, the Coakleys have agreed to complete plans and construction of a
new marine grade electrical system for the slip facilities on the Lease Site; and,
WHEREAS, in an effort to maintain slip facilities in the harbor the City of Morro
Bay is proposing a 6-year extension to the lease agreement provided that the proposed
® improvement plans are completed and submitted by January 1, 2009, obtain a building
permit and expend a minimum of $10,000 on construction of the improvements by
January 31, 2010 and complete the electrical system upgrade by December 30, 2013.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Morro Bay that the Second Amendment to the lease agreement for Lease Site 30W-33W
is hereby approved and that the Mayor is hereby authorized to execute said amendment.
PASSED AND ADOPTED by. the City Council of the City of Morro Bay at a
regular meeting held thereof on the I& day of December 2007, by the following vote:
AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters
NOES: None
ABSENT: None
E
® SECOND AMENDMENT TO THE LEASE AGREEMENT
FOR LEASE SITE 30W-33W
This amendment is made and entered into as of this day of December 2007 by and
between the City of Morro Bay, a municipal Corporation of the state of California, (hereinafter
"City"), and Jay and Mereline Coakley, husband and wife, DBA Bayfront Marina (hereinafter
"Lessee") to amend that certain lease agreement for Lease Sites 30W-33W dated May 19, 1964
(herinafter "Lease").
Whereas the County of San Luis Obispo and Union Oil Co. entered into a lease agreement for
Lease Sites 30W-33W commencing January 1, 1964, and;
Whereas upon incorporation the City of Morro Bay assumed interest in the Lease as Lessor,
and;
Whereas on April 13, 1981 the lease term was extended up to and including January 1, 2008,
and;
Whereas on January 14, 2002 the Morro Bay City Council consented to assignment of the
Lease to Jay and Mereline Coakley.
Now therefore , City and Lessee have agreed to an amendment to the Lease in order to
facilitate continuing operation of the recreational boat facilities at the Sites as follows:
® 1. Paragraph Four: shall be amended so that the lease agreement will have a new termination
date of December 30, 2013.
2. Lessee shall maintain twenty four (24) slips on the site and complete the following work by
the dates shown at Lessee's sole cost and expense or Lessee shall be in material breach of the
Lease and subject to any and all remedies allowed by the Lease or under law.
a: By January 31, 2009, submit to the City Building Department plans for a new marine
grade electrical system including sufficient pedestals and service for the slips on the
site. Said plans to be prepared by a licensed electrical engineer or contractor.
b. By January 31, 2010 finalize the plans and obtain a building permit for work
described above and expend a minimum of $10,000 in construction/installation (not
including design, plan review, building permit costs) of the new system in
conformance with the building permit as verified by submittal of payment receipt to a
licensed and qualified installer or contractor.
c. By December 30, 2010 complete construction/installation of the new electrical
system for the docks on the site.
All other terms and conditions of the Lease shall remain in full force and effect.
El
Second Amendment
Lease Site 30W-33W
Page 2 of 2
IN WITNESS WHEREOF, the parties hereto hereby execute this Amendment.
CITY OF MORRO BAY
ManagerAfidrea Lueker, Interim City
APPROVED AS TO FORM
��_ k L
Robert Schultz, City t rney
ATTEST:
TENANT —Jay and Mereline Coakley
dba Bayfront Marina
Mereline Coakley
Jay Coakley
11
® RESOLUTION NO.61-07
APPROVAL OF AMENDMENT #1 TO THE LEASE AGREEMENT FOR
LEASE SITE 34W, LOCATED ADJACENT TO 225 MAIN STREET
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 34W; and,
WHEREAS, Norman Arnold, dba Distinctive Coastal Properties LLC, is the
lessee of said property; and,
WHEREAS, said Lease Site expired July 1, 2007 and has been on a month -to -
month extension since that time; and,
WHEREAS, Norman Arnold has provided documentation on plans to upgrade
the slip facilities located on Lease Site 34W; and,
WHEREAS, in an effort to maintain slip facilities in the harbor the City of Morro
Bay and Norman Arnold are proposing an 11-year extension to the lease agreement
® provided that the proposed improvements are completed by July 1, 2010.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Morro Bay that Amendment 41 to the lease agreement for Lease Site 34W is hereby
approved and that the Mayor is hereby authorized to execute said amendment.
PASSED AND ADOPTED by. the City Council of the City of Morro Bay at a
regular meeting held thereof on the I(P day of December 2007, by the following vote:
AYES: Grantham, Peirce, Winholtz, Peters
NOES: DeMeritt
ABSENT: None
BRIDGET AUER, CITY CLERK
® AMENDMENT #1 TO THE LEASE AGREEMENT DATED APRIL 14, 1997
FOR LEASE SITE 34W
This amendment is made and entered into as of this _ day of December 2007 by and
between the City of Morro Bay, a municipal corporation of the State of California, (hereinafter
"City") and Distinctive Coastal Properties LLC, a sole member corporation with Mr. Norman J.
Arnold as the sole member, (hereinafter "Tenant") to amend that certain lease agreement for the
ground lease. known as Lease Site 34W (hereinafter "Lease") between City and Tenant dated
April 14, 1997.
Whereas, the existing Lease for Lease Site 34W was assigned to Norman Arnold on May 27,
2003, and;
Whereas, that Lease has an original expiration date of June 30, 2007 and is now on a month -
to -month extension, and;
Whereas, Tenant has discussed longer term improvements on the Lease area, but has not yet
submitted plans for said improvements, and;
Whereas, City and Tenant desire to continue the existing four slip marina on said Lease while
Tenant considers potential longer term improvements to the Lease.
Now Therefore, City and Tenant have agreed to an amendment of the Lease in order to
facilitate continuing operations of the recreational boat facilities at the site.
Section 1.01 TERM: Shall be amended to extend the term of the Lease an additional period
(approximately 11 years) with a new termination date of December 31, 2018.
Section 2.03 — ADJUSTMENT TO MINIMUM RENT: The next five year calculation for new
minimum rent based on reappraisal of the site shall be on July 1, 2012. Minimum rent for July
1, 2008 and every year thereafter until 2012 shall be adjusted based on increase in the
Consumer Price Index as outlined in Section 2.02.
The following Sections shall be added to the Lease as follows:
Section 13.03 - IMPROVEMENTS TO BE CONSTRUCTED ON SITE NO LATER THAN
JULY 1, 2010
On or before July 1, 2010 Tenant will complete the following improvements to the Site:
1. Replace the 2 (two) piles on the northwest end of the slip fingers
2. Purchase and install individual power boxes with meters to each slip.
Tenant will obtain all necessary permits and approval for said improvements, and City shall not
be responsible for unforeseen delays or conditions in permit approvals or actual construction
-and installation.
Section 13.04—ACCESS AND PARKING
Tenant shall:
1. Provide a legal right-of-way access to the slips via a walkway
® 2. Provide use of 5 parking spaces for the boat slip tenants.
LS 34 W — AMENDMENT #1
Page 2 of 2
Section 13.05 — Conditions Pending Assignment of Water Lease 35W-36W
Should the City reach an agreement to lease the adjacent Water Lease Site, Tenant agrees to
the following:
1. Tenant shall allow establishment of a temporary power box on Lease Site 34W for use of
the City and/or tenant at Lease Site 35W-36W, provided the user pay all service and
associated costs. Tenant shall have no liability or responsibility for any damages or
losses incurred in the event such temporary power is not available for any reason what
so ever. Tenant may terminate the use of the temporary power box by providing City
and Tenant of Lease Site 35W-36W with 60 days advance written notice.
2. Tenant may allow access to Lease Site 35W-36W via a separate walkway from Tenant's
property to the City and/or tenant at Lease Site 35W-36W.
Tenant will obtain all necessary permits and approval for said improvements, and City shall not
be responsible for unforeseen delays or conditions in permit approvals or actual construction
and installation.
Section 13.06 — TENANT'S SHORE SIDE RESTROOM TO BE AVAILABLE 24 HOURS
DAILY TO SLIP TENANTS:
Tenant has upgraded Tenant's shore side restroom/shower facility and Tenant agrees to make
the shore side restroom/shower facility available 24 hours daily to Tenant's slip holders. City
acknowledges that Tenant may install a security control system on the shore side restroom,
provided that control system allows the access to slip holders as required by this Section 13.06.
All other terms and conditions of the Lease shall remain in full force and effect. Failure to
comply with all of the terms of this amendment shall be a material breach of the lease and
subject to any and all remedies allowed by the lease or under law.
IN WITNESS WHEREOF, the parties hereto hereby execute this Amendment.
CITY OF MORRO BAY TENANT
71
Janic eters, May Distinctive Coastal Properties LL
Norman J. Arnold, Sole Member
Andrea Lueker, Interim City Manager
APPROVED AS TO FORM
Robert Schultz, City , t Tey
ATTEST: �J
Bridgett BEGer, City Clerk
RESOLUTION NO. 60-07
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA
INTENT TO PURCHASE THE FINANCIAL SOFTWARE UPGRADE
FROM NEW WORLD SYSTEMS
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, the City of Morro Bay purchased financial software from
New World Systems in the 2001/02 fiscal year; and
WHEREAS, the software product (Logos) and operating system
(AS/400) purchased in 2001/02 were nearing the end of their useful life; and
WHEREAS, the cost of procuring new software from another vendor
would be much greater than upgrading with the software currently in use; and
WHEREAS, New World Systems has offered the City a'deep discount
on the product in exchange for the City's acting as a demonstration site for the
Logos.NET product.
® NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Morro Bay, California, that the City has authorized the purchase of the
Logos.NET upgrade at a not -to -exceed price of $175,000.
PASSED AND ADOPTED by the City Council of the City of Morro
Bay at a regular meeting thereof held on the 10th day of December 2007, on the
following vote:
AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters
NOES: None
ABSENT: None
J E PETERS, Mayor
ATTEST:
u�.�1..0.1. �► ��
`4 � Dq BAUER, City Clerk
0
El
11
RESOLUTION NO. 59-07
RESOLUTION RELATING TO THE CLASSIFICATION, COMPENSATION AND
TERMS OF EMPLOYMENT OF POLICE EMPLOYEES OF THE CITY OF MORRO
BAY
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, in accordance with the provisions of the California Government Code
Section 3500 et. seq. and Resolution No. 74-69 of the City of Morro Bay, the City's
representatives have met and conferred in good faith pertaining to the subject of wages, benefits
and conditions of employment with Morro Bay Peace Officers Association; and
WHEREAS, the meetings between the Morro Bay Peace Officers Association and the
City have resulted in a mutual agreement and understanding to recommend that the employees
represented by Morro Bay Peace Officers Association accept all of the terms and conditions as set
forth in a Memorandum of Understanding, an agreement attached and made a part of this
resolution herewith; and
WHEREAS, the City now desires to provide said salaries, benefits and conditions to said
police employees of the City of Morro Bay.
NOW, THEREFORE, BE IT RESOLVED that the Morro Bay City Council does
hereby approve and adopt in full the Memorandum of Understanding for the period July 1, 2005
through June 30, 2007 as attached and made a part of this resolution.
BE IT FURTHER RESOLVED that the Interim City Manager is hereby authorized to
execute the Memorandum of Understanding on behalf of the City.
PASSED AND ADOPTED by the Morro Bay City Council at a meeting thereof field this
13'b day of November 2007 by the following vote:
AYES:
NOES:
ABSENT:
ATTEST:
DeMeritt. Grantham, Peirce, Winholtz, Peters
None
None
BRIDGETn3AUER,
0
EI
RESOLUTION NO. 58-07
RESOLUTION RELATING TO THE CLASSIFICATIONS, COMPENSATION AND
TERMS OF EMPLOYMENT OF THE MISCELLANEOUS EMPLOYEES OF THE
CITY OF MORRO BAY
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, in accordance with the provisions of the California Government Code
Section 3500 et. seq. and Resolution No. 74-69 of the City of Morro Bay, the City's
representatives have met and conferred in good faith pertaining to the subject of wages, benefits
and conditions of employment with SEN Local 620 representing the miscellaneous employees;
and
WHEREAS, the meetings between the SEN Local 620 and the City have resulted in a
mutual agreement and understanding to recommend that the employees represented by SEIU
Local 620 accept all of the terms and conditions as set forth in a Memorandum of Understanding,
an agreement attached and made a part of this resolution herewith; and
WHEREAS, the City now desires to provide said salaries, benefits and conditions to said
miscellaneous employees of the City of Morro Bay.
NOW, THEREFORE, BE IT RESOLVED that the Morro Bay City Council does
hereby approve and adopt in full the Memorandum of Understanding for the period July 1, 2007
through June 30, 2008 as attached and made a part of this resolution.
BE IT FURTHER RESOLVED that the Interim City Manager is hereby authorized to
execute the Memorandum of Understanding on behalf of the City.
PASSED AND ADOPTED by the Morro Bay City Council at a meeting thereof held this
13`s day of November 2007 by the following vote:
AYES:
NOES:
ABSENT
DeMeritt, Grantham, Peirce, Winholtz, Peters
None
None
1:1-J10T1J&%V,AT-JER, City Clerk
11
E
u
RESOLUTION NO. 57-07
A RESOLUTION AUTHORIZING SUBMISSION OF APPLICATIONS 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 finds 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 fimds 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 finds 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 fiords with Transportation Development Act (TDA) fiords 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 $471,263 available for competitive distribution and project applications for the
2008/2009 RTF cycle are due December 3, 2007.
NOW, THEREFORE, BE IT RESOLVED that the Morro Bay City Council authorizes the Interim
City Manager to submit applications to the Rural Transit Fund for the following projects: replacement Dial -A -
Ride vehicle; mechanic equipment and tools; trolley stop signage and information kiosks; transit vehicle
storagelmaintenance facility; and new trolley for third route expansion.
PASSED AND ADOPTED by the Morro Bay City Council at a regular meeting thereofheld on the 13TH
day of November 2007 by the following vote:
AYES:
NOES:
ABSENT:
ATTEST:
DeMeritt, Grantham, Peirce, Winholtz, Peters
None
None
VJO�RA/
BRIDGET AVER, City Clerk
RESOLUTION NO. 56-07
A RESOLUTION AUTHORIZING SUBMISSION OF APPLICATIONS FOR
CALIFORNIA PROPOSITION 1B TRANSIT FUNDS
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, in November 2006, the voters of California passed Proposition 1B which included
funding for transit capital projects; and
WHEREAS, the San Luis Obispo County region is estimated to receive $12 to $14 million for transit
capital projects to be distributed competitively over a five year period with approximately $2.1 million
available for the first round of applications; and
WHEREAS, the State of California has developed guidelines for the use of these funds, which includes a
useful life minimum threshold for requested projects: and
WHEREAS, under the guidelines developed by the State of California, the City of Morro Bay is an
eligible applicant for these funds; and
WHEREAS, the first round of applications requesting the use of Proposition I transit funds are due
November 2, 2007.
NOW, THEREFORE, BE IT RESOLVED that the Morro Bay City Council authorizes the Interim
City Manager to submit applications to the California Proposition I Fund for the following projects: transit
vehicle storage/maintenance facility; and new trolley for third route expansion.
PASSED AND ADOPTED by the Morro Bay City Council at a regular meeting thereofheld on the 13'x
day of November 2007 by the following vote:
AYES: DeMeritt, Grantham, Peirce,
NOES: None
ABSENT: None
ATTEST:
u r�:
0
Winholtz, Peters
RESOLUTION NO. 55-07
RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF MORRO BAY ESTABLISHING USER RATES
FOR RESIDENTIAL WASTEWATER SERVICES
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, in accordance with California Government Code Section 54344, the City
Council has the authority to establish fees and charges for the City's Wastewater System; and
WHEREAS, the community.of Morro Bay seeks to upgrade the wastewater treatment
plant to tertiary treatment standards per the recommendations in the Wastewater Treatment Plant
Facility Master Plan and to provide for a properly functioning wastewater collection system,
complying with the State Water Resources Control Board requirements and the City of Morro
Bay Sewer Collection System Master Plan; and
WHEREAS, after review of relevant financial data, it has been determined that existing
Wastewater System rates and charges presently generate insufficient revenue for prudent
operation of the System for the adequate health, safety, and welfare of the community; and
WHEREAS, the financial analysis for the wastewater treatment plant upgrade has
® provided a plan for funding of the treatment plant operations and maintenance activities into the
future; and
WHEREAS, the City Council finds that an adjustment in rates charged for these services
is necessary now to provide adequate funds to commence required activities on the wastewater
treatment plant upgrade and the collection system for systems operations, maintenance and
replacement; and
WHEREAS, a notice of the public hearing of the proposed changes to the wastewater
rates was mailed to each rate payer not less than forty-five days prior to the public hearing, in
compliance with Section 6 of Article )CM-D of the Constitution of the State of California; and
WHEREAS, a duly noticed public hearing of these proposed rate increases was held
before the City Council on November 13, 2007; and
WHEREAS, at the hearing on November 13, 2007, Jim Nance, Judith Brown, Marcia
Turner, John Barta, Nancy Bast, Michael Durrick, Don Rauch and Susan Mullen were present
and spoke in opposition to the proposal; and David Nelson and Lanny McKay were present and
spoke in support of the proposal; and
WHEREAS, on November 13, 2007, the City Clerk advised the Council that 267 written
protests of the proposal were received prior to the hearing; and
11
® WHEREAS, on November 13, 2007, the City Council received two written rate increase
protests that were submitted at the time of the public hearing; and
WHEREAS, after hearing public testimony and staff s report and recommendations, the
City Council has determined that certain rates and charges for the City's Wastewater System
should be revised and amended.
NOW, THEREFORE, the City Council of the City of Morro Bay hereby resolves as
follows:
SECTION 1: FINDINGS. After hearing testimony, considering the evidence offered, and
duly deliberating the matters presented, the City Council of the City of Morro Bay finds and
determines that:
A Pursuant to the authority of the Revenue Bond Law of 1941 (Government Code
Sections 54300-54700) and of Morro Bay Municipal Code Chapter 13, the City of
Morro Bay operates and maintains systems and facilities for the collection, treatment,
and disposal of sewage and wastewater; and
B. The City Council is empowered to prescribe, revise, and collect charges for the
services and facilities furnished by the City's Wastewater System (the "System"); and
® C. The proceedings related to the proposed increases in wastewater rates and charges
'have been duly noticed in compliance with the Constitution of the State of California,
Government Code Section 54354.5, and other applicable laws; and
C
D. The rates and charges set forth below are not discriminatory; and
E. The rates and charges set forth below are not excessive, inasmuch as revenues from
said rates and charges will not exceed the costs of providing wastewater services; and
F. The revenue generated by the rates and charges set forth below will be sufficient to
pay the current expenses of maintenance and operation of the System, to honor other
City obligations dependent upon System revenues, and to otherwise allow the City to
comply with Government Code Section 54515 and other applicable laws and
regulations.
SECTION 2: WASTEWATER SERVICE RATES AND CHARGES. Based upon these
findings, the City Council hereby determines that it is in the interests of the general welfare of
the community to adjust rates for Residential and Non -Residential categories pursuant to the
following rate schedule:
Resolution 55-07: Wastewater Service Rates Page 2 of 4
LJ
Single Family Residential
$34.02 flat for 10 ccf + $3.04 each ccf over 10
Single Family Condos
$34.02 flat for 3 ccf + $3.04 each ccf over 3
Multiple Family Residential
$34.02 flat for 10 ccf + $3.04 each ccf over 10
Mobile Home Parks
$3.04
per ccf ($34.02 minimum)
Commercial/Domestic Strength
$3.83
per ccf ($34.02 minimum),
Commercial Laundry
$3.83
per ccf ($34.02 minimum)
Condo - Common Area (with sewer)
$3.83
per ccf $34.02 minimum
Laundromat
$3.04
per ccf ($34.02 minimum)
Car Wash
$3.04
per ccf ($34.02 minimum)
Restaurants
$8.79
per ccf ($34.02 minimum)
Bakeries
$8.79
per ccf ($34.02 minimum)
Retirement Home/Hospital
$6.87
per ccf $34.02 minimum
Motels
$5.28
per ccf ($34.02 minimum)
Mortuaries
$5.73
per ccf ($34.02 minimum)
Hotels with Dining
$6.87
per ccf ($34.02 minimum)
Seafood Processors
$8.79
per ccf $34.02 minimum
Water Softeners
$3.04
per ccf ($34.02 minimum)
Schools
$3.04
per ccf ($34.02 minimum)
Other Public Facilities
$3.04
per ccf ($34.02 minimum)
City Facilities on Sewer
$3.04
per ccf ($34.02 minimum)
Power Plant
$391.01 flat rate - not read
® SECTION 3: EFFECTIVE DATE. This Resolution is effective upon its adoption. However,
the Rate Schedule set forth above in Section 2 shall begin with wastewater billed for the month
of July 2008. Except as amended herein, all rates or charges related to the System as contained in
Resolutions 39-06 and 59-06 shall remain in full force and effect.
El
SECTION 4: ANNUAL INCREASES: To reduce the negative impacts of inflation and other
cost increases beyond the community's control, a 5% increase in residential rates and a 7.25%
increase in non-residential rates shall be effective July 1" of each subsequent year.
SECTION 5: COLLECTION. The City Council hereby directs that the rates and charges
established by this Resolution shall be billed and collected together with charges for other utility
services rendered by the City of Morro Bay.
SECTION 6: ENFORCEMENT: In the enforcement of the collection of the rates and charges
established herein, the City of Morro Bay may use any available remedy at law or in equity,
provided, however, that said rates and charges shall not be collected by means of the San Luis
Obispo County Assessor's roll of real property taxes, nor shall any delinquent rates or charges be
enforced by means of a lien on real property.
Resolution 55-07: Wastewater Service Rates
Page 3 of 4
2.
11
PASSED AND ADOPTED by the Morro Bay City Council at a regular meeting thereof
held on the 13te day of November 2007 by the following vote:
AYES: Grantham, Peirce, Peters
NOES: DeMeritt, Winholtz
ABSENT: None
ABSTAIN: None
ATTEST:
Resolution 55-07: Wastewater Service Rates
Page 4 of 4
u
E
RESOLUTION NO. 54-07
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY,
CALIFORNIA, ACCEPTING ROBERT HENDRIX'S RESIGNATION AS
CITY MANAGER AND APPROVING APPOINTMENT OF
ANDREA LUEKER AS INTERIM CITY MANAGER
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, Robert Hendrix was appointed as City Manager for the City of Morro Bay on
December 1, 1997; and
WHEREAS, Robert Hendrix has resigned effective October 9, 2007 as City Manager of the
City of Morro Bay; and
WHEREAS, City Council finds Andrea Lueker is an experienced Public Administrator and
has the qualifications necessary to serve as the Interim City Manager of the City of Morro Bay.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay,
California, as follows:
1. Accept Robert Hendrix's resignation as City Manager effective October 9, 2007.
2. Andrea Lueker is hereby appointed as the Interim City Manager of the City of
Morro Bay to fulfill the functions of that office as provided by Government Code
Section 34851 et seq. and Municipal Code Sections 2.12.010 through 2.12.070, in
substitution for Robert Hendrix, who is specifically relieved of that position.
PASSED AND ADOPTED by the City Council of the City of Morro Bay at the regular'meeting
thereof held this 22nd day of October 2007, by the following roll call vote:
AYES:
NOES:
ABSENT:
ATTEST:
DEMERrrr, GRANTHAM, PEMCE, WINHOLTZ, PETERS
None
None
Bridgett BQaer, City Clerk
® RESOLUTION NO. 53-07
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 needs
to be lowered to make project appeals less expensive to the appellants; and
WHEREAS, Article 3CII 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 these appeal fees and finds that the lowered
fee amounts provide greater access to the general public; 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 to charge a
flat appeal fee of $250.
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 October 8, 2007.
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a
regular meeting thereof held on the 8's day of October 2007 on the following vote:
AYES: DeMeritt, Grantham, Peirce, Wi
NOES: None
ABSENT: None
ATTEST:
0
® RESOLUTION NO.52-07
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MORRO BAY ADOPTING AN EXPENSE REE BURSEMENT POLICY FOR
ELECTED AND APPOINTED OFFICIALS
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, the City of Morro Bay takes seriously its stewardship over the use
of its limited public resources by its officials; and
WHEREAS, the City Council for the City of Morro Bay believes that it is
important that elected and appointed officials remain informed and trained in issues
affecting the affairs of the City and that attendance at institutes, hearings, meetings,
conferences, or other gatherings is of a benefit to the City and its citizens; and
WHEREAS, such benefits include, but are not limited to:
1. Communicating with representatives of regional, state and national
government on City -adopted policy positions and/or other matters of community concern;
® 2. Attending educational seminars designed to improve officials' skill and
information levels;
3. Participating in regional, state and national organizations whose activities
affect the City's interests;
4. Promoting public service and morale by recognizing such service on the part
of City employees, members of the community, and/or other individuals;
5. Attending events that affect the City's interests;
6. Promoting or implementing a strategy for attracting or retaining businesses
and other development to the City; and
7. The performance of other such official duties that affect the City's interests;
and
WHEREAS, in order to promote these endeavors, to protect public resources, and
foster public trust in the use of those resources, as well as comply with state law
requirements regarding reimbursement of expenses, the City Council hereby sets forth the
travel and expense reimbursement policies for the City of Morro Bay; and
E
® WHEREAS, this policy applies to members of the City of Morro Bay's
"legislative body" as that phrase is defined in Section 54952 of the California
Government Code.
NOW, THEREFORE, be it resolved that the City Council of the City of Morro
Bay hereby does approve and adopt the Expense Reimbursement Policy for Elected and
Appointment Officials.
A. AUTHORIZED EXPENSES
City funds, equipment, supplies (including letterhead), titles, and staff time must
only be used for authorized City business. Expenses incurred in connection with the
following types of activities generally constitute authorized expenses, as long as the other
requirements of this Policy are met:
1. Communicating with representatives of regional, state and national government
on City -adopted policy positions;
2. Attending educational seminars designed to improve officials' skill and
information levels;
3. Participating in regional, state and national organizations whose activities affect
® the City's interests;
4. Recognizing service to the City (for example, thanking a longtime employee with
a retirement gift or celebration of nominal value and cost);
5. Implementing a City -approved strategy for attracting or retaining businesses to
the City, which will typically involve at least one staff member; and
6. Meetings such as those listed above for which a meeting stipend is expressly
authorized under this Policy.
All other expenditures require prior approval by the City Council.
Expenses for international and out -of --state travel require prior City Council
approval.
B. EXPENSES NOT ELIGIBLE FOR REIMBURSEMENT
Examples of personal expenses that the City will not reimburse include, but are
not limited to:
1. The personal portion of any trip;
2. Political or charitable contributions or events;
® 3. Family expenses, including partner's expenses, when accompanying official on
City -related business;
Resolution 52-07 Page 2 of 6
® 4. Entertainment expenses, including theater, movies (either in -room or at the
theater), sporting events (including gym, massage and/or golf -related expenses),
or other cultural events;
5. Alcohol/personal bar expenses;
6. Non -mileage personal automobile expenses, including repairs, traffic citations,
insurance or gasoline; and
7. Personal losses incurred while on City business.
Any questions regarding the propriety of a particular type of expense should be
resolved by the City Council before the expense is incurred.
C. COMPENSATION FOR ATTENDANCE AT MEETINGS
Compensation for meeting attendance for elected and appointed members of City
boards and commissions shall be as follows:
1. City Council members' salaries shall be set and enacted as mandated by the
California Government Code.
2. Compensation for meeting attendance for members of the Planning Commission
shall be established by ordinance of the City Council.
® D. TRANSPORTATION
If trip arrangements are made, as a convenience, for spouse or family members,
reimbursement to the City for any advanced expenses should be received by the City
prior to the trip. When attending conferences or meetings that are of such distance that it
is more economical to take commercial transportation, if an official proposes to drive
his/her car in those cases, commercial air fare will be paid and not automobile mileage.
Government and group rates must be used when available.
1. Airfare. Airfares that are reasonable and economical shall be eligible for purposes
of reimbursement.
2. Automobile. Automobile mileage is reimbursed at Internal Revenue Service
("IRS'') rates in effect at the time of travel. These rates are designed to
compensate the driver for gasoline, insurance, maintenance, and other expenses
associated with operating the vehicle. This amount does not include bridge and
road tolls, which are also reimbursable.
3. Car Rental. Rental rates that are reasonable and economical shall be eligible for
purposes of reimbursement.
4. Taxis/Shuttles. Taxi or shuttle fares may be reimbursed, including a 15 percent
gratuity per fare, when the cost of such fares is equal or less than the cost of car
rentals, gasoline and parking combined, or when such transportation is necessary
® for time -efficiency.
Resolution 52-07 Page 3 of 6
® E. LODGING
Lodging expenses will be reimbursed or paid for when travel on official City
business reasonably requires an overnight stay. If such lodging is in connection with a
conference, lodging expenses must not exceed the group rate published by the conference
sponsor for the meeting in question if such rates are available at the time of booking.
Travelers must request government rates, when available. If the group rate is not
available, reimbursement at the IRS rate in effect at the time of travel shall apply (IRS
Publication 463).
F. MEALS
A local expense reimbursement policy identifying a "per diem" of reasonable
rates for meals is not adopted. Receipts for expenses for meals shall be required. Actual
expenses shall be reimbursed subject to the maximum per diem for the meal as set by the
IRS rate in effect at the time of travel. (See Cal. Gov't Code §53232.2(c) and Publication
1542 at www.irs.gov or www.policyworks.gov/perdiem.) The City will not pay for
alcohol/personal bar expenses.
G. MISCELLANEOUS EXPENSES
Officials will be reimbursed for actual telephone, fax, and parking expenses
incurred on City business. Telephone bills should identify which calls were made on City
® business.
El
H. CASH ADVANCE POLICY
From time to time, it may be necessary for an official to request a cash advance to
cover anticipated expenses while traveling or doing business on the City's behalf. Such
request for an advance should be submitted to the City Manager ten (10) working days
prior to the need for the advance with the following information:
l . The purpose of the expenditure(s);
2. The benefits of such expenditure to the residents of City;
3. The anticipated amount of the expenditure(s) (for example, hotel rates, meal costs,
and transportation expenses); and
4. The dates of the expenditure(s).
Any unused advance must be returned to the City within five (5) working days of
the official's return, along with an expense report and receipts documenting how the
advance was used. In the event the City Manager is uncertain as to whether a request
complies with this Policy, such individual must seek resolution from the City Council.
Resolution 52-07 Page 4 of 6
L CREDIT CARD USE POLICY
The City issues credit cards to individual office holders for selected City
expenses. City office holders may use the City's credit card for such purposes as airline
tickets and hotel reservations by following the same procedures for cash advances.
Receipts documenting expenses incurred on the City credit card and compliance with this
policy must be submitted within thirty (30) working days of use. City credit cards may
not be used for personal expenses, even if the official subsequently reimburses the City.
J. EXPENSE REPORT CONTENT AND SUBMISSION DEADLINES
All cash advance expenditures, credit card expenses and expense reimbursement
requests must be submitted on an expense report form provided by the City. This form
shall include the following advisory:
"All expenses reported on this form must comply with the
City's policies relating to expenses and use of public
resources. The information submitted on this form is _ a
public record. Penalties for misusing public resources and
violating the City's policies include loss of reimbursement
privileges, restitution, civil and criminal penalties as well as
additional income tax liability."
® Expense reports must document that the expense in question met the requirements
of this Policy. Officials must submit their expense reports within thirty (30) calendar days
of an expense being incurred, accompanied by receipts documenting each expense.
Restaurant receipts, in addition to any credit card receipts, are also part of the necessary
documentation.
1
Inability to provide such documentation in a timely fashion may result in the
expense being borne by the official.
In the event the official does not attend the trip and non-refundable expenses have
been incurred for registration, lodging and/or travel, the non -attending official shall
submit a written explanation of the reasons for non-attendance to the City Manager. The
City Manager shall determine if the public funds advanced must be reimbursed to the
City. Any decision of the City Manager may be appealed to the City Council.
All expenses are subject to verification that they comply with this Policy.
K REPORTS TO CITY COUNCIL, BOARD OR COMMISSION
At the next regular City Council (or Planning Commission) meeting, each official
shall briefly report on meetings attended at City expense. If multiple officials attended, a
joint report may be made.
Resolution 52-07 Page 5 of 6
L. COMPLIANCE WITH LAWS; VIOLATION
City officials should keep in mind that some expenditures may be subject to
reporting under the Political Reform Act and other laws. All City expenditures are public
records subject to disclosure under the Public Records Act and other applicable laws. Use
of public resources or falsifying expense reports in violation of this policy may result in
any or all of the following: 1) loss of reimbursement privileges, 2) a demand for
restitution to the City, 3) the City's reporting the expenses as income to the elected
official to state and federal tax authorities, 4) civil penalties of up to $1,000 per day and
three times the value of the resources used, and 5) prosecution for misuse of public
resources.
PASSED AND ADOPTED by the City Council, City of Morro Bay at a regular
meeting thereof held on the 8th day of October 2007 by the following vote:
AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters
NOES: None
ABSENT: None
ABSTAIN: None
® / JANICE PEtTERS, Mayor
ATTEST:
El
12001 `
.
9j,
el
t�:
Resolution 52-07 Page 6 of 6,
RESOLUTION NO.51-07
® SUPPORT FOR SHIPS TO REEFS INC.
CONCEPT OF ESTABLISHING ARTIFICIAL REEFS
IN THE WATERS OFF SHORE OF ESTERO BAY IN SAN LUIS OBISPO
COUNTY
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS the City of Morro Bay is trustee of granted tidelands in Morro Bay
-Harbor for the development of commerce, fishery, navigation and recreation; and
WHEREAS, the City of Morro Bay desires coastal dependant, coastal related,
and visitor serving opportunities within the City and the Harbor; and,
WHEREAS the City of Morro Bay has been approached with the concept of
creating reefs in sandy bottom habitat by sinking cleaned and diver -rigged surplus or
derelict vessels in state waters off of Estero Bay; and,
WHEREAS, when completely cleaned and rigged the vessels to be sunk will
provide a new recreation diving site "destination" that will be proximate to Morro Bay
Harbor and will support additional coastal dependent, coastal related and visitor serving
uses, and,
WHEREAS, the City of Morro Bay Harbor Department and the Port San Luis
Harbor District are working together with members of the public and the Ships to Reefs
organization to determine exact siting, permitting requirements and timing for future
® sinking of vessels for artificial reef purposes in San Luis Obispo County; and,
WHEREAS, the Ships to Reefs organization has offered to carry the financial
burden of the project through use of federal or private funds to be made available for
disposing of surplus federal ships.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Morro Bay that the City of Morro Bay supports the concept of creation of artificial reefs
in San Luis Obispo County off of Estero Bay, provided that the project is a benefit to the
environment, the local economy and coastal related uses.
BE IT FURTHER RESOLVED, that the Harbor Department of the City of
Morro Bay is hereby authorized to support the project as to siting and permitting and
logistics of the vessels with the understanding that the City of Morro Bay has no financial
resources to apply to the project at this time.
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a
regular meeting held thereof on the 8 day of October 2007, by the following vote:
AYES: DeMeritt, Grantham, Peirce --Win ltz, Peters
NOES: None
ABSENT: None
PETERS, MA
BRIDGETtBAUER,
RESOLUTION NO. 50-07
®� A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MORRO BAY ADDING TO AND AMENDING THE COUNCIL POLICIES AND
PROCEDURES MANUAL REGARDING USE OF CITY LETTERHEAD AND
USE OF SPEAKER SLIPS AT CITY COUNCIL MEETINGS
THE CITY COUNCIL
City of Morro Bay, California
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
WHEREAS, to ensure that all Councilmembers are familiar with and understand
the City of Morro Bay's philosophies and policies regarding serving on the City Council,
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 add Section 5.4 to the Council Policies and
Procedures Manual in regard to the use of City letterhead and to amend Section 1.3.9.3.5
of the Council Policies and Procedures Manual in regard to the use of speaker slips at
public hearings, as follows:
® 1.3.9.3.5 For Public Hearings. when 10 or more members of the public
desire to speak the Mayor or Mayor Pro Tern may require
speaker slips be completed and delivered to the Clerk before
the item is considered. Comments from the public shall be
limited to three (3) minutes per speaker for Public Hearings,
unless the City Council affirmatively decides otherwise. For
Public Hearings that have the potential to be appealed to the
California Coastal Commission, members of the public who
desire to receive notice of any further proceedings shall write
their name and address on the interested parties list at the back
of the room.
5.4 USE OF CITY LETTERHEAD
Staff will not prepare correspondence representing a
Councilmember's personal point of view or a dissenting point of
view from an official City policy or Council position. If
Councilmembers use their title, position, or City letterhead to
egress a personal opinion, the official City position must be stated
clearly so the audience understands the difference/relationship
between the official City position and the viewpoint of the
Councilmember. A copy of any and all correspondence
developed by or for a Councilmember on City letterhead shall
be provided to the City Manager and the rest of the City
Council.
NOW, THEREFORE, be it resolved that the City Council of the City of Morro
Bay does hereby amend Section 1.3.9.3.5 and add Section 5.4 to 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 8th day of October 2007 by the following vote:
AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters
NOES: None
ABSENT: None
ABSTAIN: None
JANICE P TERS, Mayor
ATTEST:
• Irr r� : �
Resolution 50-07
Page 2 of 2
® RESOLUTION NO. 49-07
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY
AUTHORIZING IN -LIEU PARKING FEE FUNDS BE APPROPRIATED FOR
THE PARKING MANAGEMENT PLAN RECOMMENDATION ON
TROLLEY EXPANSION
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 for public transit
facilities providing access to said parking; and
WHEREAS, at the June 25, 2007 City Council meeting, the Council considered
recommendations from the Parking Management Plan which included a recommendation to
separate Route 1 Downtown/Embarcadero route into two routes to shorten the headway,
encouraging more people to ride the trolley from public parking areas near trolley stops; and
WHEREAS, Council expressed support for expanding service to add a third trolley route
dedicated along the Embarcadero as described in the Parking Management plan; and
® WHEREAS, Council reaffirmed this support at the joint City Council/Planning
Commission study session on September 17, 2007; and
WHEREAS, the funds appropriated from the In -Lieu Parking fund would be used for the
City's required local match to any awarded grant for the acquisition of a new trolley and for the
additional operating costs associated with the third route expansion.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Morro
Bay, that the City's local match to any awarded grant for the acquisition of a new trolley and for
the additional operating costs associated with the third route expansion are 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 8th day of October 2007 by the following roll call vote:
AYES: Grantham, Peirce, Peters
NOES: DeMeritt, Winholtz
ABSENT: None
ABSTAIN: None
BRIDGET-rl6kUER,
® RESOLUTION NO.48-07
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY
ADOPTING THE FINAL PARKING MANAGEMENT PLAN FOR THE CITY OF
MORRO BAY, CALIFORNIA
WHEREAS, the City Council decided that it was necessary and desirable to prepare a
comprehensive Parking Management Plan for the downtown and Embarcadero areas; and
WHEREAS, the City contracted with TPG Consulting, Inc. for a comprehensive
evaluation of the downtown and Embarcadero area parking needs, supply and demand
assessment, and alternative management strategies for a more efficient and effective use
of both public and private parking resources; and
WHEREAS, TPG prepared a report, entitled the Final Parking Management Plan for the
City of Morro Bay, California, in October of 2007 (attached hereto as Exhibit A); and
WHEREAS, the Parking Management Plan for the City of Morro Bay, California, has
been available for public review and comment; and
WHEREAS, following the issuance of the initial draft of the plan in April 2007 Parking
® Management Plan for the City of Morro Bay, California, the City held a numerous public
hearings on the plan with the Harbor Commission, Public Works Advisory Board,
Planning Commission and other civic groups and received additional information; and
WHEREAS, the*Final Parking Management Plan establishes the policy framework for
which to base subsequent decisions on Capital Improvement Projects that implement the
recommendations of the plan; and
WHEREAS, the City Council desires to align all parking related polices in accordance
with the recommendations and conclusions of the Final Parking Management Plan; and
NOW, THEREFORE THE CITY COUNCIL OF THE CITY OF MORRO BAY
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. Consistency with General Plan.
The City Council finds that the parking conditions and management tools to effectively
utilize parking resources in the downtown and Embarcadero areas are consistent with the
City's General Plan and Local Coastal Plan.
�J
® SECTION 2. CEQA Finding.
The adoption of the Final Parking Management Plan is categorically exempt from
environmental review pursuant to section 15061(b)(3) of the California Environmental
Quality Act guidelines. The intent of the management plan is to manage parking
resources and mitigate parking related impacts to the greatest practicable extent within
the City's financial constraints.
SECTION 3. Adoption of Final Parking Management Plan Report.
The Final Parking Management Plan prepared by TPG Consulting, Inc. for the City of
Morro Bay, California, is hereby adopted.
PASSED AND ADOPTED by the City Council of the City of Morro Bay this 8th day of
October 2007 by the following vote:
AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters
NOES: None
ABSENT: None
® ABSTAIN: None
J CE PETERS/Mayor,
ATTEST:
BRIDGE' ALTER, City Clerk
APPROVED AS TO FORM:
ROBERT SCHLTL Z, ity Attorney
El
0 RESOLUTION NO. 47-07
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY
ADOPTING THE DEVELOPMENT IMPACT FEE CALCULATION AND
NEXUS REPORT FOR THE CITY OF MORRO BAY, CALIFORNIA, AND
SUBSEQUENT DOCUMENTATION ACCOMPANYING SUCH REPORT AND
ESTABLISHING DEVELOPMENT IMPACT FEES FOR ALL DEVELOPMENT
WITHIN THE CITY OF MORRO BAY
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, the City Council decided that it was necessary and desirable to
conduct a comprehensive review of the City's development impact fees to determine
whether those fees are adequate to defray the cost of public facilities related to
development projects; and
WHEREAS, the City contracted with MuniFinancial for a comprehensive
evaluation of the City's existing development impact fees; and
WHEREAS, MuniFinancial prepared a report, entitled the Public Facilities Fee
Study for the City of Morro Bay, California, in September of 2007 (attached hereto as
Exhibit A) that recommends an increase to the City's development impact fees and
® explains the nexus between the imposition of the fee and the estimated reasonable cost of
providing the service for which the fee is charged; and
WHEREAS, the Public Facilities Fee Study for the City of Morro Bay,
California, has been available for public review and comment; and
WHEREAS, following the issuance of Public Facilities Fee Study for the City of
Morro Bay, California, the City held a public hearing on September 10, and September
24, 2007 and received additional information; and
WHEREAS, the Public Facilities Fee Study for the City of Morro Bay,
California substantiates the need for an increase in development impact fees amongst
different categories of services and facilities provided by the City; and
WHEREAS, the City has been imposing various impact fees, including fees for
sewer water and traffic, among others; and
WHEREAS, the City Council desires to adopt new development impact fees, in
accordance with the nexus calculations and recommendations in the Report; and
® WHEREAS, after conducting another public hearing and taldng further
testimony, the City Council has determined that these fees shall be reduced by 50 percent
to the greatest extent practical without impacting the current fees, and that these revised
impact fees are provided in Exhibit B; and
WHEREAS, it is the intent of the City Council to exempt any projects currently
submitted for discretionary permits and/or building permits from paying the new impact
fees if those projects were submitted for review to the City by September 24, 2007.
WHEREAS, in compliance with the Mitigation Fee Act (Government Code
section 66000 et seq.), the City Council held a public hearing to solicit public input on the
proposed development impact fees on September 10, and September 24, 2007.
NOW, THEREFORE THE CITY COUNCIL OF THE CITY OF MORRO
BAY DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. Findings Pursuant to Government Code Section 66001.
The City Council finds and determines that the Public Facilities Fee Study (hereinafter
"Report") complies with California Government Code section 66001 by establishing the
basis for the imposition of fees on new development. This finding is based on the fact
that the Report:
(a) Identifies the purpose of the fee;
® (b) Identifies the use to which the fee will be put;
(c) Shows a reasonable relationship between the use of the fee and the type of
development project on which the fee is imposed;
(d) Demonstrates a reasonable relationship between the need for the public
facilities and the type of development projects on which the fee is imposed;
and
(e) Demonstrates a reasonable relationship between the amount of the fee and the
cost of the public facilities or portion of the public facilities attributable to the
development on which the fee is imposed.
SECTION 2. Fees for Uses Consistent with the Report.
The City Council hereby determines that the fees collected pursuant to this resolution
shall be used to finance the public facilities described or identified in the Report, the
Master Facilities Plan or such other public facility master plans as may from time to time
be adopted by the City Council.
SECTION 3. Approval of Items in Report.
The City Council has considered the specific project descriptions and cost estimates
identified in the Report and hereby approves such project descriptions and cost estimates
and finds them reasonable as the basis for calculating and imposing certain development
® impact fees.
Resolution No. 47-07 Page 2 of 6
onviopmem 1,a Fea
0 SECTION 4. Consistency with General Plan.
The City Council finds that the projects and fee methodology identified in the Report are
consistent with the City's General Plan and Local Coastal Plan.
SECTION 5. Differentiation Among Fees.
The City Council finds that the development impact fees recommended in the Report are
separate and different from other fees the City may impose as a condition of final map
approval, building permit issuance or tentative or parcel map approval pursuant to its
authority under the Subdivision Map Act, the Quimby Act, and the City's implementing
ordinances, as may be amended from time to time, for, among other projects, the
construction of storm drainage, major thoroughfares and bridges and the acquisition of
parkland. In no event, however, shall a developer be required to pay for both a fee
imposed pursuant to the Subdivision Map Act and/or the Quimby Act and a portion of the
development impact fee as that would be used to fund the same type of facility as the fee
imposed pursuant to the Subdivision Map Act and/or the Quimby Act. In addition, this
resolution shall not be deemed to affect the imposition or collection of the water and
sewer connection fees authorized by the Municipal Code.
SECTION 6. CEQA Finding.
® The adoption of the Report and the development impact. fee are categorically exempt
from environmental review pursuant to section 15061(b)(3) of the California
Environmental Quality Act guidelines. The intent of the Report and development impact
fee is to provide one way to fund projects and services that have been identified in
environmental analyses of other planning efforts, including the General Plan EIi , and
various City master plans, among others.
SECTION 7. Adoption of Report.
The Public Facilities Fee Study by MuniFinancial for the City of Morro Bay,
California,is hereby adopted.
SECTION 8. Timing of Fee.
A development impact fee shall be imposed upon the issuance of any development permit
and shall be paid prior to issuance of a certificate of occupancy for the project, or at such
earlier time as permitted by law, as set forth in Government Code section 66007. A
"development permit" means any permit or approval from the City including, but not
limited to, subdivision map, revised final planned development, building permit or other
permit for construction, reconstruction, or addition.
Reso oo No. 47-07 Page 3 of 6
Developmcpl Impact Fees
® SECTION 9. Amount of Fee.
The City Council hereby approves and adopts the development impact fees as set forth in
the Report attached to this resolution and incorporated herein. The Report sets forth the
aggregate amount imposed as a development impact fee for both residential and non-
residential land uses and also sets forth the breakdown of each development impact fee
by type of facility or service. The amount of the development impact fee shall be reduced
or a credit shall be applied towards the fee in proportion to the monetary cost of any
improvements installed that would have been funded by the development impact fee. The
amount of the development impact fees shall be modified annually each July 1 based on
the change in the Engineering News Record's construction cost index (ENR-CCI) as
reported for the twelve month period ending in April of each year (April 2007 ENR-CCI
= 7865). Further, the City Council shall formally review the development impact fees
once every two years, or whenever the City Council updates a major City Council policy
document that could have an impact on development impact fees, such as the General
Plan.
E
SECTION 10. Use of Fee.
The development impact fees shall be solely used for (1) the purposes described in the
Report; (2) reimbursing the city for the development's fair share of those capital
improvements already constructed by the City; or (3) reimbursing developers who have
already constructed public facilities described in the Report or the Master Facilities Plan
or other facility master plans adopted from time to time by the City Council, where those
facilities exceeded that needed to mitigate the impacts of the'developers' project or
projects.
SECTION 11. Fee Determination by Square Footage.
Development impact fees for all land uses shall be based upon the square footage of the
building. The development impact fee categories are set forth in the Report, which have
been further revised in the fee program set forth in Exhibit B. Water and wastewater
development impact fees shall be based upon the meter size as set forth in the Report and
Master Fee Schedule.
SECTION 12. 500 Square Foot Exemption.
Development impact fees shall not apply to the first 500 square feet of new square
footage of any proposed addition for single-family residential projects. Should the
addition exceed 500 square feet, the calculation of impact fees shall be based on the total
additional new square footage area.
anWmioo No. 47.07 Page 4 of
Nmlopmem Impact Fees
11
SECTION 13. Current Projects Exempt for New Impact Fees.
Any project submitted for either discretionary and/or building permit approval as of
September 24, 2007 shall be exempt from paying these new Development Impact Fess.
All other currently existing impact fees in effect on September 24, 2007 shall remain in
effect.
SECTION 14. Cumulative additions.
Whenever the cumulative quantity of new additional square footage improvements and
all other permitted additions during the preceding five-year period is over 500 square
feet, payment of impact fees for the total additional area constructed during the said five
year period shall be required.
SECTION 15. Prior Resolutions and Ordinances Superseded.
The development impact fees approved and adopted by this resolution shall take effect in
sixty (60) days and shall supersede previously adopted resolutions that set the amounts of
development impact fees.
SECTION 16. Severability.
If any action, subsection, sentence, clause or phrase of this resolution or the imposition of
a development impact fee for any project described in the Report or the application
thereof to any person or circumstance shall be held invalid or unconstitutional by a court
of competent jurisdiction, such invalidity shall not affect the validity of the remaining
portions of this resolution or other fees levied by this resolution that can be given effect
without the invalid provisions or application of fees.
SECTION 17. Effective Date.
Consistent with California Government Code section 66017(a), the fees adopted by this
resolution shall take effect sixty (60) days following the adoption of this resolution by the
City Council.
Resotutioo No. 47-07 Page 5 of 6
Dnvioomcm Inwaa Fees -
11
0
PASSED AND ADOPTED by the City Council of the City of Morro Bay this 8th
day of October 2007 by the -following vote:
AYES:
NOES:
ABSENT
ATTEST:
DeMeritt, Grantham, Peirce, Winholtz, Peters
None
None
W_-_..1 t . Y1�_
10 Of!:
APPROVED AS TO FORM:
<6�
ROBERT SCHUL , City Attorney
ResohWm No. 4707
Deixlopmcm 1m=d Fees
Page 6 of 6
•
•
EXHIBIT A
PUBLIC FACILITIES FEE STUDY
CITY OF MORRO BAY
• SEPTEMBER 10, 2007
DRAFT REPORT
h MuniFinancial
Corporate Office:
27368 Via Industria
Suite 110
Temecula, CA 92590
Tel: (951) 587 -3500
Tel: (800) 755 -MUNI (6864)
Fax: (951) 587-3510
Office Locations:
Anaheim, CA
Lancaster, CA
Los Angeles Regional Office
Oakland, CA
Sacramento, CA
www.muni.com
Phoenix, AZ
Orlando, FL
Memphis, TN
Seattle, WA
•
TABLE OF CONTENTS
Table of Contents
Executive Summary 1
Background and Study Objectives 1
Development Projections 2
Facility Standards and Costs of Growth 3
Fee Schedules and Revenues 4
1. Introduction and Summary 6
Background and Study Objectives 6
Public Facilities Financing In California 6
Organization of the report 7
Facility Standards Approach 7
2. Growth Projections 11
Use of Growth Projections for Impact Fees 11
Service Population 11 •
Land Use Types 12
Occupant Densities 12
Growth Projections for Morro Bay 13
3. General Facilities 15
Service Population 15
Facility Inventories, Plans & Standards 16
Facility Needs and Costs 17
Fee Schedule 17
Implementation 18
4. Police Facilities 20
Service Population 20
Facility Inventories, Plans & Standards 20
Facility Needs and Costs 21
Fee Schedule 22
Implementation 23
5. Park Facilities 24
Service Population 24
Facility Inventories, Plans & Standards 25
Allocation of Facilities Costs to New Development 26 •
Fee Schedule 26
MuniFinancia!
•
•
• •
Implementation 27
6. Fire Facilities 29
Service Population 29
Facility Inventories, Plans & Standards 30
Facility Needs and Cost 31
Fee Schedule 31
Implementation 32
7. Storm Drain Facilities 33
Equivalent Dwelling Units 33
Facility Inventories, Plans & Standards 34
Facility Needs and Costs 35
Fee Schedule 35
Implementation 36
8. Transportation Facilities 38
Trip Demand 38
Facility Inventories, Plans & Standards 40
Facility Needs and Costs 41
Fee Schedule 42
Implementation 43
9. Water Facilities 44
Dwelling Unit Equivalents 44
Fee Schedule — Net Project Cost 47
Implementation 48
10. Wastewater Facilities 49
Dwelling Unit Equivalents 49
Fee Schedule — System Cost 52
Implementation 54
11. Mitigation Fee Act Findings 55
Purpose of Fee 55
Use of Fee Revenues 55
Benefit Relationship 56
Burden Relationship 56
Proportionality 57
MuniFinancial ii
• •
EXECUTIVE SUMMARY
This report summarizes an analysis of the need for public facilities and capital
improvements to support future development within the City of Morro Bay through
2010. It is the City's intent that the costs representing future development's share of
these facilities and improvements be imposed on that development in the form of a
development impact fee, also known as . a public facilities fee. The public facilities and
improvements included in this update to the City's public facilities fee program are
divided into the following fee categories listed below:
• General Facilities;
• Police Facilities;
• Park Facilities;
• Fire Facilities;
' t • • 1 r • ... I • �
• Storm Drain Facilities;
• Transportation Facilities;
• Water Facilities;
• Wastewater Facilities
The primary policy objective of a public facilities fee program is to ensure that new
development pays the capital costs associated with growth. To fulfill this objective
public agencies should review and update their fee programs periodically to incorporate
the best available information.
The City should review and update this report and the calculated fees approximately
once every three to five years to incorporate the best available information.
The City imposes public facilities fees under authority granted by the Mitigation Fee Act,
contained in California Government Code Sections 66000 through 660025. This report
provides the necessary findings required by the Act for adoption of the revised fees
presented in the fee schedules contained herein.
MuniFinanciat t
•
•
•
Develo ment Pro'ections
This study uses dwelling unit data provided by the California Department of Finance
(DOF). The 2006 population estimates are based on the DOF data. Current and future
employment figures were based on data from the San Luis Obispo Council of
Governments (SLOCOG) growth forecast. The development projections used in this
analysis are summarized in Table E.1.
Table E.1: Growth Assumptions
2006 2010 Increase
Residents' 10,293 10,918 625
Dwelling Units'
Single Family 4,667 4,950 283
Multi- family 2,333 2,443 110
Total 7,000 7,393 393
Employment 2
Commercial 1,658 1,751 93
Office 2,115 2,233 118
Industrial 549 580 31
Subtotal 4,322 4,564 242
Other' 163 172 9
Total 4,485 4,736 251
Building Square Feet (000s)
Commercial 790 834 44
Office 693 732 39
Industrial 549 580 31
Total 2,032 2,146 114
' Califomia Department of Finance (DOF), as of January 1, 2006
2SLOCOG
3 Represents govemment and other institutional.
° Based on employment by land use and occupant density shown in Table 2.1.
Sources: Califomia Department of Finance (DOF), Table E -5, 2006; Employment Density Study
Summary Report, prepared by the Natelson Company, October 2001; SLOCOG; MuniFinancial.
MuniFinandal 2
•
•
Facilit Standards and Costs of Growth
This fee analysis uses standards based on city policy to determine the cost of facilities
required to accommodate growth for public facilities. A standard for each facility
category considered in this study is derived from the City's facility plans for 2010.
Depending on the level of the policy, the City currently may or may not have sufficient
facilities to serve existing development. If the City's existing facilities are below
standard, then a deficiency exists. In this case, the portion of the cost of planned
facilities associated with correcting the deficiency must be allocated to funding sources
other than the fee. Public facilities fees can only fund planned facilities needed to
accommodate new development at the adopted standard.
The master plan standard for facilities is calculated based on all existing and projected
new development, and all existing and planned facilities designed to serve that
development. The standard represents the average cost of all facilities, per square foot
of new development, required to serve the entire service population (existing and new).
The key variable affecting the standard is the amount and cost of planned facilities.
Types of facility standards and their application in specific situations are discussed
below.
Using a cost per square foot of new development facility standard ensures an equitable
distribution of the cost of planned facilities between existing and new development.
The City must distinguish between planned facilities needed to accommodate growth
and planned facilities that serve existing residential and businesses developments. New
development can only fund its fair share of planned facilities. Fair share is based on
application of the same facility standard to both new and existing development. The
types of public facilities funded by these fees are each part of a citywide network or
system of facilities. As a result, it is not possible to determine what portion of each
public building, whether existing or planned, serves existing development or growth. To
ensure compliance. with the law, the City must ensure that there is a reasonable
relationship between new development, the amount of the fee, and facilities funded by
the fee.
Fees for certain facilities are based upon the existing facilities standard. The existing
facilities uses a facility standard based on the ratio of existing facilities to the existing
service population, as calculated to a cost per square foot. Under this approach new
development funds the expansion of facilities at the same standard currently serving
existing development. By definition the existing inventory method results in no facility
deficiencies attributable to existing development. This method is often used when a
long -range plan for new facilities is not available. Only the initial facilities to be funded
with fees are identified in the fee study. Future facilities to serve growth are identified
through an annual capital improvement plan and budget process.
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Fee Schedules and Revenues
The key public policy issues in public facility fee studies is (1) the identification of facility
standards for each category of facilities in a fee program and (2) the measurement of
growth which generates the service demand.
A facility standard is a public policy that states the amount of facilities required per unit
of development (i.e. square foot or dwelling unit) to accommodate the increased service
demand. Examples of facility standards include park acres per capita (resident or
worker). Standards also may be expressed in monetary terms such as the total cost of
facility investments per capita.
To measure existing development and future growth, we use population and
employment, also identified as residents and workers, respectively. We use these
measures because numbers of residents and workers are reasonable indicators of the
level of demand for public facilities. The City builds public facilities primarily to serve
these populations and, typically, the greater the population the larger the facility required
to provide a given level of service.
Since a fee can not be applied directly to each person as they become a new resident or
worker of the City, this measure of demand is then converted to a resident or employee
density per square foot of development and the fee is collected through the development
process. Historically fees may have been applied on a per unit basis although there are
certain inequalities when utilizing this formula since a 5,000 sq ft home would pay the
same level of fees as a 1,000 sq ft home, although the larger home has the capacity for
more residents and more demand on the City's facilities. As such, a fee per square foot
is the most equitable method for allocation of the facilities cost.
The following Table E.2 summarizes the schedule of maximum justified public facilities
fees based on the analysis contained in this report as calculated based on a fee per square
foot. Table E.3 summarizes the estimated public facilities fee as calculated, based on an
estimated building square feet. This amounts are shown for comparison purposes only,
actual fees will be applied on a per square foot basis for development. •
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Table E.2: Estimated Public Facilities Fee Summary (per Square Foot)
General Storm
Land Use Government Police Parks Fire Drain Traffic Water (t) Wastewater (l) Total
•
Residential (Fee per Square Foot)
Single Family $ 2.58 $ 0.33 $ 5.83 $ 0.36 $ 0.05 $ 1.59 $ 0.55 $
Multi- family $ 4.28 $ 0.54 $ 9.67 $ 0.59 $ 0.06 $ 2.47 $ 0.83 $
1.52 $
2.27 $
12.81
20.71
Nonresidential (Fee per Building Square Foot, Except Storm Fees which are per Land Square Foot)
Commercial $ 1.26 $ 0.16 $ 2.26 $ 0.50 $ 0.03 $ 8.16 $ 2.06 $ 3.79 $ 18.22
Office $ 1.83 $ 0.23 $ 3.28 $ 0.73 $ 0.03 $ 4.92 $ 2.06 $ 3.79 $ 16.87
Industrial $ 0.60 $ 0.08 $ 1.07 $ 0.24 $ 0.03 $ 2.83 $ 2.06 $ 3.79 $ 10.70
1 Water and Wastewater actual fees are based on the meter size. Amount shown is estimated based on the lees in Table E.3 divided by the estimated building squar feet in Table E.3.
Table E.3: Estimated Public Facilities Fee Summary
Estimated General Storm
Land Use Building Sq Ft Government Police Parks Fire Drain Traffic Watertlt Wastewater (1) Total
Residential (Fee per Unit, Based on Estimated Building Sq Ft, except Water and Wasterwater)
Single Family 1,500 $ 3,870 $ 495 $ 8,745 $ 540 $ 75 $ 2,385 $ 825 $ 2,273 $ 19,20
Multi- family 1,000 $ 4,280 $ 540 $ 9,670 $ 590 $ 60 $ 2,470 $ 825 $ 2,273 $ 20,
Nonresidential (Fee per 1,000 Building Square Feet, Except Storm Fees which are per Acre and Water and Wastewater)
Commercial 1,000 $ 1,260 $ 160 $ 2,260 $ 500 $ 1,307 $ 8,160 $ 2,063 $ 3,788 $ 19,497
Office 1,000 $ 1,830 $ 230 $ 3,280 $ 730 $ 1,307 $ 4,920 $ 2,063 $ 3,788 $ 18,147
Industrial 1,000 $ 600 $ 80 $ 1,070 $ 240 $ 1,307 $ 2,830 $ 2,063 $ 3,788 $ 11,977
1 Based cc a 5/8 inch meter for Residential and 1 inch for Nonresidential.
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1. INTRODUCTION AND SUMMARY
This report presents an analysis of the need for public facilities to accommodate new
development in the City of Morro Bay. This chapter explains the study approach and
summarizes results under the following sections:
• Background and study objectives;
• Public facilities financing in California;
• Organization of the report; and
• Facility standards approach
Back round and Stud Ob'ectives
The primary policy objective of a public facilities fee program is to ensure that new
development pays the capital costs associated with growth. To fulfill this objective
public agencies should review and update their fee programs periodically to incorporate
the best available information.
The City should review and update this report and the calculated fees approximately
once every three to five years to incorporate the best available information.
The City imposes public facilities fees under authority granted by the Mitigation Fee Act,
contained in California Government Code Sections 66000 through 660025. This report
provides the necessary findings required by the Act for adoption of the revised fees
presented in the fee schedules contained herein.
Public Facilities Financin • In California
The changing fiscal landscape in California during the past 30 years has steadily undercut
the financial capacity of local governments to fund infrastructure. Three dominant
trends stand out:
• The passage of a series of tax limitation measures, starting with Proposition 13
in 1978 and continuing through the passage of Proposition 218 in 1996;
• Declining popular support for bond measures to finance infrastructure for the
next generation of residents and businesses; and
• Steep reductions in federal and state assistance.
Faced with these trends, many cities and counties have had to adopt a policy of "growth
pays its own way." This policy shifts the burden of funding infrastructure expansion
from existing rate and taxpayers onto new development. This funding shift has been
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accomplished primarily through the imposition of assessments, special taxes, and
development impact fees also known as public facilities fees. Assessments and special
taxes require approval of property owners and are appropriate when the funded facilities
are directly related to the developing property. Development fees, on the other hand,
are an appropriate funding source for facilities that benefit all development jurisdiction -
wide. Development fees need only a majority vote of the legislative body for adoption.
a ariization bf%.tt a re • ort
The determination of a public facilities fee begins with the selection of a planning
horizon and development of projections for population and employment. These
projections are used throughout the analysis of different facility categories, and are
summarized in Chapter 2.
Chapters 3 through 10 are devoted to documenting the maximum justified public
facilities fee for each of the following six facility categories:
• General Facilities;
• Police Facilities;
• Park Facilities;
• Fire Facilities
• Storm Drain Facilities;
• Transportation Facilities;
• Water Facilities;
• Wastewater Facilities
The five statutory findings required for adoption of the proposed public facilities fees in
accordance with the Mitigation Fee Act (codified in California Government Code Sections
66000 through 66025) are summarized in Chapter 11.
Facilit Standards A. 'roach
The key public policy issue in public facility fee studies is the identification of facility
standards for each category of facilities in a fee program. A facility standard is a public
policy that states the amount of facilities required per unit of new development to
accommodate the increased service demand. Examples of facility standards include park
acres per capita and wastewater generation per equivalent dwelling unit. Standards also
may be expressed in monetary terms such as the total cost of facility investments per
capita or per square foot of new development.
The facility standard assists in documenting statutory findings required for adoption of a
public facilities fee. First, the standard documents a reasonable relationship between the
type of new development and the total need for new facilities. Where applicable, the
same facility standard is applied to both existing and new development to ensure that
new development does not fund deficiencies associated with existing development.
Second, the facility standard is often used to allocate facility costs to each development
project, documenting a reasonable relationship between the amount of the fee and the
cost of facilities allocated to each development project.
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Types of facility standards and their application in specific situations are discussed
below. This section concludes with a description of how facility standards are used in the
current study.
Types of Facility Standards
The types of standards that may be used in a public facility fee study include:
• Demand standards determine the amount of facilities required to accommodate
growth, for example park acres per thousand residents, traffic level of service,
or gallons of water per day per dwelling unit. These standards are the most
common method for discussing policy options with regards to public facility
fees.
• Deign standards determine how a facility should be designed to meet expected
demand, for example park improvement requirements, street intersection
design, and water storage needs. These standards are typically not evaluated as
part of a fee analysis, but they can have a significant impact on the cost of
facilities.
• Cost standards determine the cost per unit of demand based on the estimated
cost of facilities, for example cost per capita, cost per square foot, cost per
vehicle trip, or cost per gallon of water per day. ,
• Applying Facility Standards
Demand and design standards may or may not play an explicit role in the documentation
of a specific public facility fee, while cost standards always play a role. Often the
approach depends on the degree to which the community has engaged in comprehensive
facility master planning to identify facility needs.
• For some fees explicit demand and design standards are used to determine total
facility needs and costs, and then a cost standard is used to allocate costs to
new development. For example, the fee study may document how a park
standard of three acres per 1,000 residents determines park needs for new
development. Next, a cost standard is calculated based on total park needs
allocated per unit of new development to calculate the fee schedule.
• For other fees the total cost of needed facilities is documented outside of the
fee study. The fee study may base future facility needs on a community's
existing inventory of facilities, a detailed facility master plan, or simply the
judgment of a community's elected leaders regarding facility needs. Though
demand and design standards may have been used the fee study itself does not
explicitly use these factors in the fee calculation. Instead the study proceeds
directly to the calculation of a cost standard to allocate costs per unit of
development and calculate the fee schedule. For example, a separate
wastewater facilities master plan may have already documented the facilities
needs requiring the fee study to simply allocate those total costs per unit of
new development.
•
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Demand and design standards tend to be grounded in engineering analysis performed
outside of the fee study if not simply a statement of public policy. Cost standards, on the
other hand, tend to be an integral part of all fee studies. There are three approaches used
to calculate a cost standard, described below.
• The existing inventory method calculates the facility standard and allocates
costs based on the ratio of existing facilities to the existing service population.
Under this approach new development funds the expansion of facilities at the
same standard currently serving existing development. By definition the
existing inventory method results in no facility deficiencies attributable to
existing development. This method is often used when a long -range plan for
new facilities is not available. Only the initial facilities to be funded with fees
are identified in the fee study. Future facilities to serve growth are identified
through an annual capital improvement plan and budget process.
• The planned facilities method calculates the facility standard and allocates
costs based on the ratio of planned facilities to the increase in demand
associated with new development. This method is appropriate when planned
facilities only benefit new development, such as a sewer trunk line extension to
a previously undeveloped area. This method also may be used when there is
excess capacity in existing facilities that can accommodate new development.
In that case new development can fund facilities at a standard lower than the
existing inventory standard and still provide an acceptable level of facilities.
Alternatively, this method may be used when improvements would benefit
both existing and new development. In this case, new development only pays
its fair share of facilities costs.
• The system plan method calculates the facility standard and allocates costs
based on the ratio of existing plus planned facilities to total future demand
(existing and new development). This method is used when (1) the local
agency anticipates increasing its facility standard above the existing inventory
standard discussed above, and (2) planned facilities are part of a system that
benefit both existing and new development Using a facility standard that is
higher than the existing inventory standard creates a deficiency for existing
development. The jurisdiction must secure non -fee funding for that portion of
planned facilities required to correct the deficiency.
The Types and Approaches Used In This Study
The type of facility standard calculated in this study is primarily the cost standard. The
cost standard can be based on various methods to determine the cost for purposes of the
analysis. When determining the cost of facilities cities may look at the current market
cost or actual cost to construct new facilities or purchase land, the replacement cost
(either current replacement cost or discounted for deferred maintenance), the original
purchase cost, or the depreciated cost. Depending on which costs basis the city uses
there can be a significant difference in the resulting impact fees. For purposes of this
study the City has elected to utilize conservative cost methods including depreciated cost
and discounted replacement cost for facilities cost and will utilize the estimated current
market value for land. When the depreciated or discounted replacement cost methods
MuniFinancial 9
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are utilized, the City may not recover or mitigate the full costs associated with providing
the existing level of service to new development. As such, the mitigation of the full
impact of development may need to be reviewed through alternative methods including
development agreements.
This study uses the existing inventory approach to determine facility standards for public
facilities Under the existing inventory approach, new development would contribute to
the cost of improvements in proportion to the level of investment made to date, based
on the cost standard described above.
Fees for certain facilities are based upon the existing facilities standard. The existing
facilities uses a facility standard based on the ratio of existing facilities to the existing
service population, as calculated to a cost per square foot. Under this approach new
development funds the expansion of facilities at the same standard currently serving
existing development. By definition the existing inventory method results in no facility
deficiencies attributable to existing development. This method is often used when a
long -range plan for new facilities is not available. Future facilities to serve growth are
identified through an annual capital improvement plan and budget process.
MuniFinancial 10
2. GROWTH PROJECTIONS
This chapter explains how development projections are used to calculate public facilities
fees, and summarizes estimates of existing development and projections of growth used
for this study. Existing development is estimated for 2006 (as prescribed by DOF), and
the planning horizon is 2010.
Use of Growth; Pro'ections for Im s act Fees:;x
Estimates of existing development and projections of growth are critical assumptions
used throughout the fee chapters that follow in this report. These estimates are used as
follows:
• Estimates of total development at the 2010 planning horizon are used to
determine the total amount of public facilities required to accommodate
growth, and to allocate those costs on a per unit basis, for example costs per
square foot of new development.
• Estimates of growth from 2006 to 2010 are used to allocate to new
development its fair share of total planned facility needs.
• Estimates of the typical square footage of development for residential and non
residential uses, per capita.
To measure existing development and future growth, we use population and
employment, also identified as residents and workers, respectively. We use these
measures because numbers of residents and workers are reasonable indicators of the
level of demand for public facilities. The City builds public facilities primarily to serve
these populations and, typically, the greater the population the larger the facility required
to provide a given level of service. A reasonable measure of the levels of demand can
also be calculated to a rate per square foot of new development based on the current
levels of residential and non residential density per square foot, the typical development
size and the level of service provided for the facilities.
Service Po s ulation
Different types of development use public facilities at different rates in relation to each
other, depending on the services provided In Chapters 3 through 10, a specific service
population is identified for each facility type to reflect total demand. The service
population weights residential land uses type against. nonresidential land uses based on
the relative demand for services between residents and workers and the per capita
density per square foot.
MuniFinanrial
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Land Use T pes
To ensure a reasonable relationship between each fee and the type of development
paying the fee, growth projections distinguish between different land use types. The
land use types used in this analysis are defined below.
• Single family: Attached and detached one -family dwelling units.
• Multi- family: All attached dwellings such as duplexes and condominiums,
plus mobile homes, apartments, and dormitories.
• Commercial: All commercial, retail, educational, and hotel /motel
development.
• Office: All general, professional, and medical office development.
• Industrial: All manufacturing and warehouse development.
Some developments may include more than one land use type, such as an industrial
warehouse with living quarters (a live -work designation) or a planned unit development
with both single and multi-family uses. In these cases the public facilities fee would be
calculated separately for each land use type.
The City should have the discretion to impose the public facilities fee based on the
specific aspects of a proposed development regardless of zoning. The guideline to use is
the probable occupant density of the development, either residents or workers per
building square foot. The fee imposed should be based on the land use type that most
closely represents the probable occupant density of the development.
Occupant Densities
Occupant densities, expressed as service population per square foot, ensure a reasonable
relationship between the increase in service population and amount of the fee. To do
this, they must vary by the estimated service population generated by a particular
development project. Developers pay the fee based on the number of additional
building square feet of new development, so the fee schedule must convert service
population estimates to these measures of project size. This conversion is done with
average occupant density factors by land use type, shown in Table 2.1.
The residential occupant density factors are derived from the 2000 U.S. Census Bureau's
Tables H -31 through H -33. Table H -31 provides vacant housing units data, while Table
H -32 provides information relating to occupied housing. Table H -33 documents the
total 2000 population residing in occupied housing. The US Census numbers are
adjusted by using the California Department of Finance (DOF) estimates for January 1,
2006 found on Table E -5. The density factors are then equated to a square footage
based on the typical occupant density and the typical historical housing unit size within
the City. For purposes of this analysis the City has determined that the typical single
family home and multi- family home which has historically contributed to the existing
facilities standards within the City is 1,500 sq ft and 1,000 sq ft, respectively.
MuniFinanaiai 12
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The non - residential density factors are based on Employment Denrity Study Summary Report,
prepared for the Southern California Association of Governments, October 2001 by The
Natelson Company. The factors represent an average for the specific land uses included
in the study. For example, the industrial density factor represents an average for light
industrial, heavy industrial, and warehouse uses likely to occur in the City.
Table 2.1: Occupant Density
Residential 1,2
Single Family 1.55 Residents per 1,000 square feet
Multi- family 1.71 Residents per 1,000 square feet
Nonresidential 3
Commercial 2.10 Employees per 1,000 square feet
Office 3.05 Employees per 1,000 square feet
Industrial 1.00 Employees per 1,000 square feet
1 Based on the 2004 City of Morro Bay Housing Element.
2 Represents a density of 2.32 residents per single family dwelling unit and 1.71 residents per
Multifamily dwelling unit.
3 Nonresidential occupant density factors derived from City of Morro Bay growth projections and
the Natelson Company, Inc., Employment Density Study Summary Report, October 31, 2001.
Report completed for the Southem Califomia Association of Govemments (SCAG).
Growth Pro'ections for Morro Ba
Table 2.2 summarizes the demographic assumptions used in this analysis. The base year
for this study is the year 2006 for all categories. The existing facilities in 2006 will make
up the existing facilities standard in our study.
The 2006 population estimates are based on DOF projections. Current and future
employment figures were based on data from the San Luis Obispo Council of
Governments (SLOCOG) growth forecast.
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• Table 2.2: Growth Assumptions
2006 2010 Increase
Residents) 10,293 10,918 625
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Dwelling Units'
Single Family 4,667 4,950 283
Multi- family 2,333 2,443 110
Total 7,000 7,393 393
Employment 2
Commercial 1,658 1,751 93
Office 2,115 2,233 118
Industrial 549 580 31
Subtotal 4,322 4,564 242
Other' 163 172 9
Total 4,485 4,736 251
Building Square Feet (000s)
Commercial 790 834 44
Office 693 732 39
Industrial 549 580 31
Total 2,032 2,146 114
' California Department of Finance (DOF), as of January 1, 2006
2SLOCOG
3 Represents govemment and other institutional.
" Based on employment by land use and occupant density shown in Table 2.1.
Sources: California Department of Finance (DOF), Table E -5, 2006; Employment Density Study
Summary Report, prepared by the Natelson Company, October 2001; SLOCOG; MuniFinancial.
MumFinanriai 14
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3. GENERAL FACILITIES
This chapter presents an analysis of the need for general facilities to accommodate new
development in the City of Morro Bay. A fee schedule is presented based on the cost of
these facilities to ensure that new development provides adequate funding to meet its
needs.
4.
The City's general facilities serve both residents and businesses. Demand for services
and associated facilities is based on the City's service population including residents and
workers.
Table 3.1 shows the estimated service population in 2006 and 2010. In calculating the
service population, workers are weighted less than residents to reflect lower per capita
service demand. Nonresidential buildings are typically occupied less intensively than
dwelling units, so it is reasonable to assume that average per- worker demand for services
is Less than average per- resident demand. The 0.24 - weighting factor for workers is based
on a 40 -hour workweek divided by a total of 168 hours in a week.
Table 3.1: General Government Facilities Service Population
Residents
Service Population
Weighted Workers (Res. + Weighted
Workers (Workers .24) Workers)
Existing (2006)
New Development (2006-2010)
Total (2010)
Weighting factor
10,293 4,485 1,076 11,369
625 251 60 685
10,918 4,736 1,136 12,054
1.00 0.24
Note: Workers are weighted 810.24 of residents based on a 40 hour work week out of a possible 168 hours In a week.
Sources: Table 2.2; MunlFinancial
MuniFinancial 15
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Facilit Inventories, Plans & Standards
The City owns 54,172 square feet of building space situated on approximately 23 acres
for city administration and maintenance facilities. These existing facilities house the City
Council chambers, the City Manager and City Clerk's offices, and other governance and
administrative functions such as Finance, Human Resources, and Public Services
Department.
Table 3.2 summarizes existing general facilities. The table also shows the existing
facility standard expressed in terms of costs per capita.
Table 3.2: General Government Facilities Existing Standard
Inventory Unit Cost' Value
Land (acres)
Civic Center / City Hall
Community Center
Veterans Memorial Building
City Yard
Subtotal - Land
Buildings (square feet)
City Hall
Administrative Office
Teen Center
Community Center
Veterans Memorial Building
Public Works
Subtotal - Buildings
Vehicles & Equipment
Total Facilities
Existing Service Population
2.64 $ 700,000 $ 1,848,000
1.28 700,000 896,000
0.66 700,000 462,000
18.30 700,000 12,810.000
22.88 $ 16,016,000
3,564 $ 200 $ 713,000
5,000 200 1,000,000
2,238 200 448,000
19,674 200 3,935,000
5,000 200 1,000,000
18,696 200 3.739.000
54,172 $ 10,835,000
$ 903,908
$ 27,754,908
11,369
Cost per Capita
Facility Standard per Resident $ 2,441
Facility Standard per Worker ` 586
Unit costs based on current market value for the condition of the facilities and may not reflect the full replacement value.
2 Based on a weighing factor of 0.24.
Sources: Tables 3.1; City of Morro Bay; MuniFinancial
MuniFinancial 16
Facilit Needs and Costs
Table 3.3 presents the cost of new general facilities needed to maintain the existing
facility standard as growth occurs. The costs generated by new development also
represent the total revenue that the general facilities fee would generate. These revenues
should be annually programmed to capital improvement projects and be integrated into a
5 -year Capital Improvement Plan (CIP).
Table 3.3: General Facilities to Accommodate New Development
Facility Standard Per Capita
New Development Service Population (2006 -2010)
Costs Generated by New Development
$ 2,441
685
$ 1,672,085
Sources: Tables 3.1 and 3.2; MuniFinancial
Eta: S.Clied (ilea atic �
Table 3.4 presents the general facilities fee schedule based on the existing standard. The
cost per capita is converted to a fee per square foot of new development based on
service population densities. The total fee includes an administrative charge to fund
costs that include: a standard overhead charge applied to all City programs for legal,
accounting, and other departmental and citywide administrative support, and impact fee
program administrative costs including revenue collection, revenue and cost accounting,
mandated public reporting, and fee justification analyses.
MuniFinancial 17
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• Table 3.4: General Government Facilities Fee (Existing Standard)
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Costs per Cost per Total Fee / Sq.
Land Use Capita Densityl Unit Admin2'3 Feet Ft.
Residential
Single Family $ 2,441 1.55 $ 3,775 $ 94 $ 3,869 $ 2.58
Multi- family 2,441 1.71 4,174 104 4,278 4.28
Nonresidential
Commercial $ 586 2.10 $ 1,231 $ 31 $ 1,262 $ 1.26
Office 586 3.05 1,787 45 1,832 1.83
Industrial 586 1.00 586 15 601 0.60
Persons per 1,000 square feet.
2 Fee per 1,000 square feet.
' Administrative charge of 2.5 percent.
Sources: Tables 2.1 and 3.2; MuniFinancial.
Irit` le`menfation
This section identifies tasks that the City should complete when implementing the fee
programs.
Programming Revenues and Projects with the CIP
The City should update its Capital Improvement Plan (CIP) to program fee revenues to
specific projects. Use of the CIP in this manner documents a reasonable relationship
between new development and the use of fee revenues.
For the five -year planning period of the CIP, the City should allocate all existing fund
balances and projected fee revenue to specific general facilities projects. The City can
hold funds in a project account for longer than five years if necessary to collect sufficient
funds to complete a project.
Inflation Adjustment
The City should identify appropriate inflation indexes in the fee ordinance and adopt an
automatic inflation adjustment to the fee annually. The City should use separate indexes
for land and construction costs. Calculating the land cost index may require use of a
property appraiser every several years The construction cost index can be based on the
City's recent capital project experience or taken from any reputable source, such as the
Engineering News Record. To calculate the fee increases, each index should be weighted by
the share of total planned facility costs represented by land or construction, as
appropriate.
MuniFinancial 18
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Reporting Requirements
The City should comply with the annual and five -year reporting requirements of
Government Code 66000 et seq. For facilities to be funded with a combination of public
facilities fees and other revenues, the City must identify the source and amount of the
other revenues. The City must also identify when the other revenues are anticipated to
be available to fund the project.
MuniFinanial 19
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4. POLICE FACILITIES
This chapter presents an analysis of the need for police stations and related facilities to
accommodate new development in the City of Morro Bay. A fee schedule is presented
based on the cost of these facilities' to ensure that new development provides adequate
funding to meet its needs.
Se vic6zPo • ufation
The City's police facilities serve both residents and businesses. The need for these
services and associated facilities is measured by the City's service population, which is
the number of residents and workers within its service area.
Table 4.1 shows the estimated service population in 2006 and 2010. In calculating the
service population, workers are weighted less than residents to reflect lower per capita
service demand. Nonresidential buildings are typically occupied less intensively than
dwelling units, so it is reasonable to assume that average per - worker demand for services
is less than average per - resident demand. The 0.24 - weighting factor for workers is based
on a 40 -hour workweek divided by a total of 168 hours in a week.
• Table 4.1: Police Facilities Service Population
Service Population
Weighted Workers (Res. + Weighted
Residents Workers (Workers .24) Workers)
Existing (2006)
New Development (2006 -2010)
Total (2010)
Weighting factor
10,293 4,485 1,076 11,369
625 251 60 685
10,918 4,736 1,136 12,054
1.00 0.24
Note: Workers are weighted at 0.24 of residents based an a 40 hour work week out of a possible 168 hours in
a week.
Sources: Table 2.1: MuniFinancial.
Facilit Inventories, Plans & Standards
The police department occupies 6,213 square feet of building space on .55 acres. The
department has the primary responsibility of providing local law enforcement and those
community services that promote a strong sense of welfare and safety for its citizens.
As growth continues to push the geographic limits of the City, the department will
MuniFinancial
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increase the size of the main station at the current site to serve growth within the City of
Morro Bay. City staff provided estimates of all existing facility inventories.
Table 4.2 summarizes existing police facilities, including vehicles and equipment
associated with police functions.
Table 4.2: Police Facilities Existing Standard
Inventory Unit Cost'
Value
Existing Facilities
Main Station - Land (acres) 0.26 $ 700,000 $ 185,000
Main Station Buildings (sq. ft.) 2 5,555 250 1,389,000
Annex Building - Land (acres) 0.29 700,000 205,000
Annex Buildings (sq. ft.) 2 658 250 165,000
$ 1,944,000
Existing Equipment & Vehicles
Vehicles w/ equipment 717,800
Officer equipment 204,750
Communication, Computers, Etc. 642,250
$ 1,564,800
Total Facilities and Equipment $ 3,508,800
Existing Service Population
Cost per Capita
Facility Standard per Resident
Facility Standard per Worker'
11,369
$ 309
74
Based on a weighing factor of 0.24.
2 Amount discounted due to deferred maintenance costs.
3 Unit costs based on current market value for the condition of the facilities and may not reflect the full replacement value.
Unit costs based on replacement value.
Sources: Tables, 4.1; City of Morro Bay; Munifinancial.
Facilit Needs and Costs
Table 4.3 presents the cost of new police facilities needed to maintain the existing
facility standard as growth occurs. The costs generated by new development also
represent the total revenue that the police facilities fee would generate. These revenues
should be annually programmed to capital improvement projects and be integrated into a
5 -year Capital Improvement Plan (CIP).
MuniFinancial
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• Table 4.3: Police Facilities to Accommodate New
Development
Facility Standard Per Capita $ 309
New Development Service Population (2006 -2010) 685
Total Generated by New Development $ 211.665
Sources: Tables 4.1 and 4.2; MuniFinancial
FeetScledul'e
Table 4.4 presents the police facilities fee schedule based on the existing standard. The
cost per capita is converted to a fee per square foot of new development based on
service population densities. The total fee includes an administrative charge to fund
costs that include: a standard overhead charge applied to all City programs for legal,
accounting, and other departmental and citywide administrative support, and impact fee
program administrative costs including revenue collection, revenue and cost accounting,
mandated public reporting, and fee justification analyses.
Table 4.4: Police Facilities Fee
Cost per Cost per Total Fee /
Land Use Capita Density' Unite Admin" Feel Sq. Ft.
Residential
Single Family $ 309 1.55 $ 478 $ 12 $ 490 $ 0.33
Multi- family 309 1.71 528 13 541 0.54
Nonresidential
Commercial $ 74 2.10 $ 156 $ 4 $ 160 $ 0.16
Office 74 3.05 226 ' 6 232 0.23
Industrial 74 1.00 74 2 76 0.08
' Persons per 1,000 square feet.
1 Fee per 1,000 square feet.
Administrative charge of 2.5 percent
Sources: Tables 2.1 and 4.2; MuniFinancial
MuniFinanaai 22
Implementation
This section identifies tasks that the City should complete when implementing the fee
programs.
Programming Revenues and Projects with the CIP
The City should update its Capital Improvement Plan (CIP) to program fee revenues to
specific projects. Use of the CIP in this manner documents a reasonable relationship
between new development and the use of fee revenues.
For the five -year planning period of the CIP, the City should allocate all existing fund
balances and projected fee revenue to police facilities projects. The City can hold funds
in a project account for longer than five years if necessary to collect sufficient funds to
complete a project.
Inflation Adjustment
The City should identify appropriate inflation indexes in the fee ordinance and adopt an
automatic inflation adjustment to the fee annually. The City should use separate indexes
for land and construction costs. Calculating the land cost index may require use of a
property appraiser every several years. The construction cost index can be based on the
City's recent capital project experience or taken from any reputable source, such as the
Engineering News Record. To calculate the fee increases, each index should be weighted by
the share of total planned facility costs represented by land or construction, as
appropriate.
Reporting Requirements
The City should comply with the annual and five -year reporting requirements of
Government Code 66000 et seq. For facilities to be funded with a combination of public
facilities fees and other revenues, the City must identify the source and amount of the
other revenues. The City must also identify when the other revenues are anticipated to
be available to fund the project.
MuniFinancial 23
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5. PARK FACILITIES
The purpose of this fee is to ensure that new development funds its fair share of
parkland and facilities. The City would use fee revenues to expand park facilities to serve
new development.
Seivtce,Pco"• ulatian,.
Park facilities serve both residents and workers in the service area. Service population is
used as a measure of the need for park facilities because both residents and workers use
park facilities.
Table 5.1 shows the estimated service population for 2006 and 2010. The number of
residents and workers are reasonable indicators of the level of demand for public
facilities. In calculating the service population, residents are given a weight of 1.0 and
workers are weighted at 0.19 to reflect lower per capita service usage. Nonresidential
park services are typically occupied less intensively than dwelling units, so it is reasonable
to assume that average per - worker usage of services is less than average per - resident
usage.
Table 5.1: Parks Service Population
Weighted Workers
Residents Workers (Workers .19)
Service Population
(Res. + Weighted
Workers)
Existing (2006) 10,293 4,485 852 11,145
New Development (2006 -2010) 625 251 48 673
Total (2010) 10,918 4,736 900 11,818
1.00 0.19
Sources: Table 2.2; U.S. Bureau of the Census; MuniFinancial.
The 0.19 per- worker weighting used here is derived from a study carried out by staff in
the City of Phoenix, and is one of the best sources of this data that we are aware of. We
used data from that study to estimate a per capita factor that is independent of land use
patterns. Relative demand for parks between residents and workers does not vary
substantially on a per capita basis across communities, enabling us to use this data for all
the communities we assist in the documentation of a parks public facilities fee.
MuniFinancia! 24
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Facilit Inventories, Plans & Standards
This section describes the City of Morro Bay's existing facility inventory of park
facilities. As growth continues to push the geographic limits of the City, the facilities will
increase to serve growth within the City of Morro Bay. City staff provided estimates of
all existing facility inventories.
Table 5.2. summarizes the value of all existing park land, trails, and bike paths.
Table 5.2: Existing Park Inventory
Acres 1 Sq Ft / Unit Cost (Land and
Length Improvements) 2 Value
Existing Facilities
Parkland (acres)
Bayshore Bluffs Park
Morro Bay City Park
Monte Young Park
Anchor Park
Lila Keiser Park
Cloisters Park
Del Mar Park
North Point Natural Area
Coleman Park
Centennial Park
Mariner Park
Tidelands Park
Trails/Bike Paths
Miscellaneous Bike Paths
3.24 $ 900,000 $ 2,916,000
0.31 900,000 279,000
0.69 900,000 621,000
0.09 900,000 81,000
7.95 900,000 7,155,000
19.63 900,000 17,667,000
10.00 900,000 9,000,000
1.10 900,000 990,000
0.99 900,000 891,000
0.09 900,000 81,000
0.09 900,000 81,000
8.89 900,000 8.001.000
47,763,000
2,884,493
Open Space (acres)
Cloisters Open Space 8.12 80,000 649,600
Morro Cove Open Space Dedication 1.55 80,000 124,000
Morro Dunes TPNacant/Beach 35.12 80,000 2,809,600
Sandspit 74.00 80,000 5,920,000
Open Space/Rock Lot/Beach 16.52 80,000 1,321,600
10,824,800
Total Facilities $ 61,472,293
Existing Service Population 11,145
Cost per Capita
Facility Standard per Resident $ 5,516
Facility Standard per Worker' 1,048
Based on a weighing factor of 0.19.
2 Improvement costs are estimated at $200,000 per acre for site improvements (curbs, gutters, water, sewer. and electrical access), plus
basic park and field amenities such as basketball or tennis court, restroom, parking, tot lot. inigation, turf, open green space, pedestrian
paths, and picnic tables.
Sources: Tables, 5.1; City of Morro Bay; MuniFinancial.
MuniFinancial 25
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Allocation of Facilities Costs to New Development
Table 5.3 presents the cost of new park facilities needed to maintain the existing facility
standard as growth occurs. The costs generated by new development also represent the
total revenue that the park facilities fee would generate. These revenues should be
annually programmed to capital improvement projects and be integrated into a 5 -year
Capital Improvement Plan (CIP).
Table 5.3: Park Facilities to Accommodate New
Development
Facility Standard Per Capita $ 5,516
New Development Service Population (2006 -2010) 673
Costs Generated by New Development $ 3,712,268
Sources: Tables 5.1 and 5.2; MuniFinancial
Fee!Sciedule
Table 5.4 presents the park facilities fee schedule based on the existing standard. The
cost per capita is converted to a fee per square foot of new development based on
service population densities. The total fee includes an administrative charge to fund
costs that include: a standard overhead charge applied to all City programs for legal,
accounting, and other departmental and citywide administrative support, and impact fee
program administrative costs including revenue collection, revenue and cost accounting,
mandated public reporting, and fee justification analyses.
MuniFinancial 26
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Table 5.4: Park Facilities Fee
Land Use
Cost per Cost per Total Fee I
Capita Density3 Unit' Admin23 Fee' Sq. Ft.
Residential
Single Family $ 5,516 1.55 $ 8,531 $ 213 $ 8,744 $ 5.83
Multi- family 5,516 1.71 9,432 236 9,668 9.67
Nonresidential
Commercial $ 1,048 2.10 $ 2,201 $ 55 $ 2,256 $ 2.26
Office 1,048 3.05 3,197 80 3,277 3.28
Industrial 1,048 1.00 1,048 26 1,074 1.07
1 Persons per 1,000 square feet.
2 Fee per 1,000 square feet.
3 Administrative charge of 2.5 percent
Sources: Tables 2.1 and 5.2; MuniFinancial
Im • iementation` ° "4 >'
This section identifies tasks that the City should complete when implementing the fee
programs.
Programming Revenues and Projects with the CIP
The City should update its Capital Improvement Plan (CIP) to program fee revenues to
specific projects. Use of the CIP in this manner documents a reasonable relationship
between new development and the use of fee revenues.
If the total cost of all planned projects varies from the total cost used as a basis for the
fee, the City should revise the fee accordingly.
For the five -year planning period of the CIP, the City should allocate all existing fund
balances and projected fee revenue to park facilities projects. The City can hold funds in
a project account for longer than five years if necessary to collect sufficient funds to
complete a project.
Identify Non -fee Revenue Sources
The City must identify non -fee revenue sources to fully fund the planned facilities and
justify the maximum public facilities fee. The City should take any actions necessary to
'secure those funds.
Inflation Adjustment
The City should identify appropriate inflation indexes in the fee ordinance and adopt an
automatic inflation adjustment to the fee annually. The City should use separate indexes
for land and construction costs. Calculating the land cost index may require use of a
property appraiser every several years. The construction cost index can be based on the
Men :Financial 27
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City's recent capital project experience or taken from any reputable source, such as the
Engineering News Record. To calculate the fee increases, each index should be weighted by
the share of total planned facility costs represented by land or construction, as
appropriate.
Reporting Requirements
The City should comply with the annual and five -year reporting requirements of
Government Code 66000 et seq. For facilities to be funded with a combination of public
facilities fees and other revenues, the City must identify the source and amount of the
other revenues. The City must also identify when the other revenues are anticipated to
be available to fund the project.
MuniFinandat 28
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6. FIRE FACILITIES
This chapter presents an analysis of the need for fire stations and related facilities to
accommodate new development in the City of Morro Bay. A fee schedule is presented
based on the cost of these facilities to ensure that new development provides adequate
funding to meet its needs
Service. Po • ulation
The City's fire facilities serve both residents and businesses. Therefore, the City's service
population, i.e. the number of residents and workers within its service area, measures the
need for fire services and associated facilities.
Table 6.1 provides estimates of the service populations in 2006 and 2010. The number
of residents and workers are reasonable indicators of the level of demand for public
facilities. In calculating the service population, workers were weighted less than residents
to reflect lower per capita service usage. Nonresidential buildings are typically occupied
less intensively than dwelling units, so it is reasonable to assume that average per- worker
usage of services is less than average per - resident usage.
The specific 0.69 per - worker weighting used here is derived from an extensive study
carried out by planning staff in the City of Phoenix. Data from that study was used to
calculate a per capita factor that is independent of land use patterns. Because of the large
geographical area covered by this study, it is the best source of data for application to
other areas. It is reasonable to assume that relative demand for fire service between
residents and workers does not vary substantially on a per capita basis across
communities, enabling use of this data for other communities in the documentation of a
fire facilities impact fee.
Table 6.1: Fire Facilities Service Population
Service Population
Weighted Workers (Res. + Weighted
Residents Workers (Workers *.69) Workers)
Existing (2006)
New Development (2006 -2010)
Total (2010)
Weighting factor
10,293 4,485 3,095 13,388
625 251 173 798
10,918 4,736 3,268 14,186
1.00 0.69
Sources: Table 2.2; MunlFInancial.
MuniFinancial 29
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Facilit Inventories, Plans & Standards
The fire department presently provides 24 -hour protection to the City of Morro Bay
from two stations. City staff provided existing facility inventories, which serve the
existing service population. As growth continues to push the geographic limits of the
City, the department will increase the size of the stations to serve growth within the City
of Morro Bay.
Table 6.2 summarizes existing fire facilities, including vehicles and equipment associated
with fire functions.
Table 6.2: Fire Existing Standard
Inventory Unit Cost D Value
Existing Facilities
Land (acres)
Cloisters Fire Station Site 0.99 $ 700,000 $ 693,000
Bonita Street Fire Station Site 0.15 700,000 104,000
Harbor Street Fire Station Site 0.51 700,000 357.000
Sub -total $ 1,154,000
Buildings (sq. ft.)
Fire Station 54 (Offices) 2 1,000 $ 50 $ 50,000
Fire Station 54 (Apparatus Bay) 1,632 309 504,000
Fire Station 53 (Modular) 2,200 136 300,000
Sub -total $ 854,000
Vehicles & Equipment ° $ 2,520,366
Total Existing Facilities & Equipment $ 4,528,366
2006 Service Population 13,388
Cost per Capita $ 338
Facility Standard per Resident $ 338
Facility Standard per Worker' 233
' Based on a weighing factor of 0.69
2 The Unit Cost of the building is based on possible use of the building in its current condition.
J Unit costs based on current market value for the condition of the facilities and may not reflect the full replacement value.
4 Unit costs based on replacement value.
Sources: City of Morro Bay; MuniFinancial.
MuniFinancial 30
Facilit Needs and Cost
Table 6.3 presents the cost of new fire facilities needed to maintain the existing facility
standard as growth occurs. The costs generated by new development also represent the
total revenue that the fire facilities fee would generate. These revenues should be
annually programmed to capital improvement projects and be integrated into a 5 -year
Capital Improvement Plan (CIP).
Table 6.3: Fire Facilities to Accommodate New Development
Facility Standard Per Capita
New Development Service Population (2006 -2010)
Total Generated by New Development
$
338
798
269,916
Sources: Tables 6.1 and 6.2; MuniFinancial
Fee sScheduIe \3 _''
Table 6.4 presents the fire facilities fee schedule based on the existing plan standard.
The cost per capita is converted to a fee per square foot of new development based on
service population densities. The total fee includes an administrative charge to fund
costs that include: a standard overhead charge applied to all City programs for legal,
accounting, and other departmental and citywide administrative.support, and impact fee
program administrative costs including revenue collection, revenue and cost accounting,
mandated public reporting, and fee justification analyses.
Table 6.4: Fire Facilities Fee
Cost per Cost per Total Fee /
Land Use Capita Densityt Unit' Admin2'a Feel Sq. Ft.
Residential
Single Family $ 338 1.55 $ 523 $ 13 $ 536 $ 0.36
Multi- family 338 1.71 578 14 592 0.59
Nonresidential
Commercial $ 233 2.10 $ 490 $ 12 $ 502 $ 0.50
Office 233 3.05 712 18 730 0.73
Industrial 233 1.00 233 6 239 0.24
1 Persons per 1,000 square feet.
2 Fee per 1,000 square feet.
J Administrative charge of 2.5 percent
Sources: Tables 2.1 and 6.2; MuniFinancial
MuniFinancial 31
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IM s lementation
This section identifies tasks that the City should complete when implementing the fee
programs.
Programming Revenues and Projects with the CIP
The City should update its Capital Improvement Plan (CIP) to program fee revenues to
specific projects. Use of the CIP in this manner documents a reasonable relationship
between new development and the use of fee revenues.
For the five -year planning period of the CIP, the City should allocate all existing fund
balances and projected fee revenue to fire facilities projects. The City can hold funds in
a project account for longer than five years if necessary to collect sufficient funds to
complete a project.
Inflation Adjustment
The City should identify appropriate inflation indexes in the fee ordinance and adopt an
automatic inflation adjustment to the fee annually. The City should use separate indexes
for land and construction costs. Calculating the land cost index may require use of a
property appraiser every several years. The construction cost index can be based on the
City's recent capital project experience or taken from any reputable source, such as the
Engineering News Record. To calculate the fee increases, each index should be weighted by
the share of total planned facility costs represented by land or construction, as
appropriate.
Reporting Requirements
The City should comply with the annual and five -year reporting requirements of
Government Code 66000 et seq. For facilities to be funded with a combination of public
facilities fees and other revenues, the City must identify the source and amount of the
other revenues. The City must also identify when the other revenues are anticipated to
be available to fund the project.
MuniFinandiat 32
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7. STORM DRAIN FACILITIES
This chapter presents an analysis of the need for storm drain related facilities to
accommodate new development in the City of Morro Bay. A fee schedule is presented
based on the cost of these facilities to ensure that new development provides adequate
funding to meet its needs
E : uivalent Dv ellii %WitsMSt
New development generates additional storm water runoff by increasing the amount of
land that is not penetrable to precipitation. Consequently, new development generates
the need for, and benefits from, expanded storm drain facilities. Table 7.1 presents the
percent impervious factors by land use type.
Table 7.1: Storm Drainaae - Eau'valent Dwellina Units
Average Equivalent
Percent DU /Acre or Dwelling Unit
Impervious2 Acre (EDU)3
Residential (Per Dwelling Units)
Single Family
Multi- Family
Non - residential (Per Acre)
Commercial
Office
Industrial
35%
49%
90%
95%
80%
6.65
11.40
1.00
1.00
1.00
1.00
0.82
17.10
18.05
15.20
Dwelling units per acre for residential usage and acres for Non - residential usage.
2 Percent Impervious Service derived from USDA data.
3 Equivalent Dwelling Unit ( "EDU ") based upon a comparison of all Residential and Non - residential use
classifications to the Single Family Dwelling Unit which is assigned a rating of 1.0.
Table 7.2 presents the growth in Equivalent Dwelling Unit (EDU) based on current and
projected development through 2010 and the EDU calculations shown in Table 7.1.
MuniFinancial 33
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Table 7.2: Storm Drain Facilities Total Equivalent Dwelling Units
2006 2006 EDUs 2010 EDUs
DUMSF' 2010 DUI KSF' Growth EDU' DU /Acre DU/Acre
EDU Growth
Residential (dwelling unit)
Single Family 4,667 4,950 283 1.00 4,667 4.950 283
Multi- Family 2 333 2 443 110 0.82 1.913 2.003 90
Total Dwelling Units 7,000 7,393 393 6,580 6,953 373
Non-residential (1.000 sa 1(1
Commercial 790 834 44
Building Sq Ft Per Acre (0.25 FAR) 10 900 10 900 10 900
Total Commercial Acres 72 77 4 17.10 1.239 1,308 69
Office 693 732 39
Building Sq Ft Per Acre (0.25 FAR) 10 900 10,900 10 900
Total Commercial Acres 64 67 4 18.05 1,148 1,212 65
Industrial 549 580 31
Building Sq Ft Per Acre (0.30 FAR) 13 10Q 13 100 13 100
Total Commercial Acres 42 44 • 2 15.20 637 673 3Q
Total EDUs
Pecent of Total EDUs
7.819 8,261 442
95% 100% 5%
Residential Dwelling Units (VU') from U.S. Census Bureau Table FI31 to ti-33 for 2000 as adjusted by 2005 California Depan.nent
at Finance data.
2 2010 projection from SCAB for ResIdenilal and Non- restdental.
' From Table 7.1
Facillt iWc'htor es, Plans &'Standard&
This section describes the City of Morro Bay's existing facility inventory of storm drain
facilities. As growth continues to push the geographic limits of the City, the facilities will
increase to serve growth within the City of Morro Bay.
Table 7.3. summarizes the value of all existing storm drain facilities. Table 7.4
illustrates the storm drain facilities cost per EDU based on the project cost in Table 7.3
and the total EDU growth shown in Table 7.2.
Table 7.3: Storm Drain Facilities - Existing Facilities
Depreciated Storm Drain System Value
Storm Drain Lines
Total Storm Drain Facilities Costs
Estimated Original Accumulated
Costs Depreciation Current Value
899,141 $ 347,668 $ 551,473
$ 551,473
Sources: City of Morro Bay; MuniFinancial.
MuniFinancial 34
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Table 7.4: Storm Drain Facilities - Cost Per EDU
EDU Calculation
Total Cost to New Development'
2006 EDUs
Cost Per EDU
$ 551,473
7,819
$ 71
Source: Tables 7.3 and 7.2
Facilit ` Needs and Costs w'.
Table 7.5 presents the cost of new storm drain facilities needed to maintain the existing
facility standard as growth occurs. The costs generated by new development also
represent the total revenue that the storm drain facilities fee would generate. These
revenues should be annually programmed to capital improvement projects and be
integrated into a 5 -year Capital Improvement Plan (CIP).
Table 7.5: Stormdrain Facilities to Accommodate
New Development
Facility Standard Per EDU
New Development EDUs (2006 -2010)
New Development Contribution to Planned Facilities
$
71
442
31,388
Sources: Tables 7.3 and 7.4; MuniFinancial
Fee Schedule
Table 7.6 presents the storm drain facilities fee schedule based on the existing plan
standard. The cost per EDU is converted to a fee per structural square foot of new
residential development and a fee per land square foot of new non - residential
development based on EDU's. The total fee includes an administrative charge to fund
costs that include: a standard overhead charge applied to all City programs for legal,
accounting, and other departmental and citywide administrative support, and impact fee
program administrative costs including revenue collection, revenue and cost accounting,
mandated public reporting, and fee justification analyses.
MuniFinancial
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Table 7.6: Storm Drain Facilities - Proposed Fees
EDU
Factor
Basel
Land Use
Cost per
EDU1
Base
Fee3
Admin Total Fee /
Fee° Fees Sq. Fts''
Residential (Fee Per Square Foot of Unit)
Single Family $ 71
Multi - Family 71
Non - residential (Fee Per Square Foot of Land)
Commercial $ 71
Office 71
Industrial 71
1.00 $ 71 $ 2 $
0.82 58 1
17.10 $ 1,214 $
18.05 1,282
15.20 1,079
30 $
32
27
73 $ 0.05
59 0.06
1,244 $ 0.03
1,314 0.03
1,106 0.03
' From Table 7.4.
2 From Table 7.1.
3 Fee derived by multiplying the Cost per EDU by the EDU factor and rounded to nearest dollar.
4 Administration Fee of 2.5 percent of the Base Fee and rounded to nearest dollar.
5 Derived by adding the Base Fee by the Administration Fee.
6 Per Square Foot Non - residential Fee calculated by dividing the Total Fee by 43,560.
Residential per square foot fee is based on a 1,500 sq. ft. single family home and a 1,000 sq. ft. multi family unit.
Im; tether tation>
This section identifies tasks that the City should complete when implementing the fee
programs.
Programming Revenues and Projects with the CIP
The City should update its Capital Improvement Plan (CIP) to program fee revenues to
specific projects. Use of the CIP in this manner documents a reasonable relationship
between new development and the use of fee revenues.
For the five -year planning period of the CIP, the City should allocate all existing fund
balances and projected fee revenue to storm drain facilities projects. The City can hold
funds in a project account for longer than five years if necessary to collect sufficient
funds to complete a project.
Inflation Adjustment
The City should identify appropriate inflation indexes in the fee ordinance and adopt an
automatic inflation adjustment to the fee annually. The City should use separate indexes
for land and construction costs. Calculating the land cost index may require .use of a
property appraiser every several years. The construction cost index can be based on the
City's recent capital project experience or taken from any reputable source, such as the
Engineering News Record. To calculate the fee increases, each index should be weighted by
MuniFinancial 36
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the share of total planned facility costs represented by land or construction, as
appropriate.
Reporting Requirements
The City should comply with the annual and five -year reporting requirements of
Government Code 66000 et seq. For facilities to be funded with a combination of public
facilities fees and other revenues, the City must identify the source and amount of the
other revenues. The City must also identify when the other revenues are anticipated to
be available to fund the project.
MuniFinanciat 37
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8. TRANSPORTATION FACILITIES
This chapter summarizes an analysis of the need for, streets and related transportation
facilities to accommodate growth within the City of Morro Bay. It documents a
reasonable relationship between new development and a transportation fee to fund
streets and related transportation facilities that serve new development.
Tr`' •iDemani
Estimates of existing and new development provide the basis for calculating the
transportation facilities fee. Estimates of existing development provide the basis for the
facility standard. The facility standard is used to determine the rate at which new
development will be required to increase the value of the City's equity in its system of
street improvements. Estimates of new development are used to calculate the total
amount of fee revenues that would be generated.
The need for transportation improvements is based on the trip demand generated by
new development. A reasonable measure of this demand is the number of average daily.
vehicle trips, adjusted for the type of trip. Vehicle trip generation rates are a reasonable
measure of demand on the City's transportation system because alternate modes of
transportation (transit, bicycle, pedestrian) are often substitutes for vehicle trips.
The two types of trips adjustments made to trip generation rates to calculate trip demand
are described below:
• Pass -by trips are deducted from the trip generation rate. Pass -by trips are
intermediate stops between an origin and a final destination that require no
diversion from the route, such as stopping to get gas on the way to work.
• Trip generation rate is adjusted by the average length of trips for a specific land
use category compared to the average length of all trips on the street system.
Table 8.1 shows the calculation of trip demand factors by land use category based on
the adjustments described above. Data is based on extensive and detailed trip surveys
conducted by the San Bernardino Association of Governments (SANBAG). The
surveys provide one of the most comprehensive databases available of trip generation
rates, pass -by trips factors, and average trip length for a wide range of land uses in San
Bernardino County.
MuniFinancial 38
Table 8.1: Trip Rate Adjustment Factor
Total
Excluding
Pass -by'
Average Adjust-
Trip ment
Length2 Factor3
Average
Daily
Trips°
Trip
Demand
Factors
Residential
Single Family
100%
7.4
1.02
9.94
10.09
Multi- family
100%
7.4
1.02
6.89
6.99
Nonresidential'
Commercial
70%
5.39
0.52
44.59
23.08
Office
100%
8.87
1.22
11.44
13.92
Industrial
100%
8.87
1.22
6.57
7.99
' Percent of total trips. Primary trips are trips with no midway stops, or "links ". Diverted trips are
linked trips whose distance adds at least one mile to the primary trip. Pass -by trips are links that
do not add more than one mile to the total trip.
2 Average Trip Length is from SANBAG Trip Generation Rate Analysis.
3 The trip adjustment factor equals the percent of non - pass -by trips multiplied by the average trip
length and divided by the systemwide average trip length of 7.29 miles.
4 Trip rates are the standard ITE rates, adjusted for passenger car equivalent (PCE).
3 The trip demand factor is the product of the trip adjustment factor and the average daily trips.
6 Trip percentages, average trip lengths, and average daily trips based on SANBAG Trip
Generation Rate Analysis.
r Trip percentages, average trip lengths, and average daily trips based on SANBAG Trip
Generation Rate Analysis.
Sources: San Bemardino Association of Governments, Trip Generation Rate Analysis;
MuniFinancial.
Table 8.2 estimates the trip demand generated by existing and new development on the
City's system of street improvements between 2006 and 2010. Total trip demand is
based on the trip demand factors calculated in Table 8.2 and the growth estimates in
Table 2.1. As shown in the table, new development would represent approximately 5.4
percent of total trip demand.
MuniFinancial 39
•
•
•
Table 8.2: Trip Demand From Existing and New Development
Trip
Demand
Factor
Growth
Existing 2010
Trip
Existing Demand Total
Trip From Trip
Demand Growth Demand
Residential (units)
Single Family
Multi- family
Subtotal
10.09
6.99
Nonresidential (sq. ft.)
Commercial 23.08
Office 13.92
Industrial 7.99
Subtotal
Total
Percent of Total
4,667 283
2,333 110
7,000 393
790 44
693 39
549 31
2,032 114
47,090 2,854 49,944
16,308 766 17,074
63,398 3,621 67,018
18,233 1,016 19,249
9,647 543 10,189
4.387 248 4.634
32,266 1,806 34,072
127,930 7,233 135,163
94.6% 5.4% 100%
Source: Tables 2.2 and 8.1; MuniFinancial
Fief lit ;lnv`eln'tor esrPlans` &Standardi
The depreciated value of the City's existing and planned transportation facilities of $44.1
million (Table 8.3) is used to develop the transportation system facility standard in
Table 8.4. This standard calculates an existing equity per trip that becomes the standard
used in determining the fee. By using the depreciated value of facilities for
transportation, fee revenues can be used for improvement projects that upgrade and
increase the value of the entire system of facilities. New development would add to the
existing equity in the City's system of facilities in proportion to growth in demand as
measured by the increase in the number of new trips on the City transportation network.
The equity approach allows jurisdictions to add a range of facilities to accommodate
growth without having to exactly duplicate existing facilities. For example, rather than
build a new road, a City may upgrade and expand the roadway as a better way to
accommodate growth by increasing the number of lanes. This approach ensures new
development is treated fairly by requiring contributions to these new facilities only up to
the level of investment made by existing development.
MuniFinancial 40
• •
Table 8.3: Transportation Project List
Estimated Original Accumulated
Costs Depreciation Current Value
Depreciated Street System Value
Right of Ways $ 30,147,268 $ - $ 30,147,268
Pavement 14,894,107 2,658,337 12,235,770
Curbs and Gutters 447,319 238,570 208,749
Sidewalks 263,931 140,766 123,165
Bridges 1,384,874 154,095 1,230,779
Traffic Signals 210,166 52,100 158,066
Total Costs $ 44,103,797
Sources: City of Morro Bay, GASB 34; MuniFinancial
Table 8.4: Transportation Existing Facilities Standard
Depreciated Street System Value
Total Street System Value
Trip Demand - 2006
Existing Equity Per Trip
$ . 44,103,797
$ 44,103,797
127,930
$ 345
Sources: Tables 8.2 and 8.3; MuniFinancial
Facilit Needs and Costs
Table 8.5 presents the cost of new transportation facilities needed to maintain the
existing facility standard as growth occurs. The costs generated by new development also
represent the total revenue that the transportation facilities fee would generate. These
revenues should be annually programmed to capital improvement projects and be
integrated into a 5 -year Capital Improvement Plan (CIP).
MuniFinancial
41
• Table 8.5: Transportation Facilities to
Accommodate New Development
•
•
Total
Equity Per Trip $ 345
Trip Demand From Growth (2006 -2010) 7,233
Contribution from New Development $ 2,495,385
Sources: Tables 8.2, 8.3 and 8.4; MuniFinancial.
Fee`'Sc leCdule'
Table 8.6 presents the transportation facilities fee schedule based on the existing plan
standard. The cost per trip is converted to a fee per square foot of new development
based on trip rates for residential and non - residential developments. The total fee
includes an administrative charge to fund costs that include: a standard overhead charge
applied to all City programs for legal, accounting, and other departmental and citywide
administrative support, and impact fee program administrative costs including revenue
collection, revenue and cost accounting, mandated public reporting, and fee justification
analyses.
Table 8.6: Transportation Facilities Fee
Land Use
Trip
Equity Demand Base Total Fee /
Per Trip Factor Fee1'4 Admin2•3 Feet Sq. Ft.
Residential
Single Family $ 345 10.09 $ 2,321 $ 58 $ 2,379 $ 1.59
Multi- family 345 6.99 2,412 60 2,472 2.47
Nonresidential
Commercial $ 345 23.08 7,963 $ 199 $ 8,162 $ 8.16
Office 345 13.92 4,802 120 4,922 4.92
Industrial 345 7.99 2,757 69 2,826 2.83
Fee per 1,000 square feet for residential and nonresidential uses.
2 Fee per 1,000 square feet.
3 Administrative charge of 2.5 percent
" Residential per square foot fee is based on a 1,500 sq. ft. single family home and a 1,000 sq. ft. multi family unit.
Sources: Tables 8.2 and 8.4; MuniFinancial.
MuniFinancial 42
Implementation
This section identifies tasks that the City should complete when implementing the fee
programs.
Programming Revenues and Projects with the CIP
The City should update its Capital Improvement Plan (CIP) to program fee revenues to
specific projects. Use of the CIP in this manner documents a reasonable relationship
between new development and the use of fee revenues.
For the five -year planning period of the CIP, the City should allocate all existing fund
balances and projected fee revenue to transportation facilities projects. The City can
hold funds in a project account for longer than five years if necessary to collect sufficient
funds to complete a project.
Inflation Adjustment
The City should identify appropriate inflation indexes in the fee ordinance and adopt an
automatic inflation adjustment to the fee annually. The City should use separate indexes
for land and construction costs. Calculating the land cost index may require use of a
property appraiser every several years. The construction cost index can be based on the
City's recent capital project experience or taken from any reputable source, such as the
Engineering News Record. To calculate the fee increases, each index should be weighted by
the share of total planned facility costs represented by land or construction, as
appropriate.
Reporting Requirements
The City should comply with the annual and five -year reporting requirements of
Government Code 66000 et seq. For facilities to be funded with a combination of public
facilities fees and other revenues, the City must identify the source and amount of the
other revenues. The City must also identify when the other revenues are anticipated to
be available to fund the project.
MuniFinancial 43
•
•
•
•
•
•
• •
9. WATER FACILITIES
This chapter presents an analysis of the need for water facilities to accommodate new
development in the City of Morro Bay. Separate fee schedules are presented based on the
cost of these facilities based on the Net Facilities Project Cost.
Dwellin � Unit.E • tiiNialentift yfri,.vividttsgr
Facility standards are used to determine the capacity needed to accommodate development.
Consequently, standards provide a reasonable relationship between development and the
need for public facilities to serve that development. For purposes of this study, we used
typical water consumption patterns to calculate the Dwelling Unit Equivalent (DUE) factors
for the various land use types. Table 9.1 presents the growth projections for the City
expressed in residential dwelling units for the residential land use type and in workers and
building square feet for the nonresidential land use type. Table 9.2 presents the DUE
conversion by land use. These DUE factors are used to allocate project costs among
individual developments because they provide a reasonable estimate of each development's
demand for water distribution facilities.
MuniFinancia/ 44
Table 9.1: Growth Assumptions
2006 2010 Increase
Residents' 10,293 10,918 625
Dwelling Units'
Single Family 4,667 4,950 283
Multi- family 2,333 2,443 110
Total 7,000 7,393 393
Employment 2
Commercial 1,658 1,751 93
Office 2,115 2,233 118
Industrial 549 580 31
Subtotal 4,322 4,564 242
Other' 163 172 9
Total 4,485 4,736 251
Building Square Feet (000s)
Commercial 790 834
Office 693 732
Industrial 549 580
Total 2,032 2,146
44
39
31
114
I California Department of Finance (DOF), as of January 1, 2006
2 SLOCOG
3 Represents government and other institutional.
" Based on employment by land use and occupant density shown in Table 2.1.
Sources: California Department of Finance (DOF), Table E -5, 2006; Employment Density Study
Summary Report, prepared by the Natelson Company, October 2001; SLOCOG; MuniFinancial.
MuniFinancial
45
•
•
•
•
•
Table 9.2: Water Flow Generation Factors
•
} 0 ) §
In 0 to
co co
3
/
u
CO NI N CO N
/\ CO ) [
£/
cn
nd Use Cate
Dwelling Units (DU) / Building Square Feet (00
Estimated Average Water Demand per DU or per acre (GPD)
%
LL
0.
j
\ , ,
E j 7.5
\ \ § /
Plan and industry standards for non residential land uses.
tE
II le
ce
t to
0 ts
\ \'t
\'e
jj \ \\ cr
lo f2
!$ «)]
Lt to
\E
`8i {\
}k{\)
} / t
00
g 1g
Sources: City of Morro Bay; MuniFinancial
•
]
$
•
•
Fee Schedule - Net Pro -ect Cost
Table 9.3 presents the cost per DUE calculation based on existing DUE demand placed on
the water system. The Net Facilities Project Costs is based on the current depreciated value
of the water system..
Table 9.3: Fee per DUE Calculation
Net Facilities Project Costs
DUEs
Fee per DUE
$ 7,655,077
9,504
$ 805
Sources: Table 9.2; 2004 City of Morro Bay GASB 34 Report; MuniFinancial.
Table 9.4 presents the proposed water facilities impact fee based on meter size.
Table 9.4: Water Impact Fee
AWWA Rated
Meter Size Capacity GPM
5/8" 20
1" 50
1 1/2" 100
2" 160
3" 320
4" 500
6" 1,000
8" 1,600
AW WA Meter
Service Ratio
1.0
2.5
5.0
8.0
16.0
25.0
50.0
80.0
Base Fee Admin Fee'
$ 805 $
2,013
4,025
6,440
12,880
20,125
40,250
64,400
20
50
101
161
322
503
1,006
1,610
Total Fee
$ 825
2,063
4,126
6,601
13,202
20,628
41,256
66,010
' Administrative charge of 2.5 percent
Sources: Table 9.3a; MuniFinancial.
MuniFinancial 47
•
•
•
•
•
•
Im ' Iementation
This section identifies tasks that the City should complete when implementing the fee
programs.
Programming Revenues and Projects with the CIP
The City should update its Capital Improvement Plan (CIP) to program fee revenues to
specific projects. Use of the CIP in this manner documents a reasonable relationship
between new development and the use of fee revenues.
For the five -year planning period of the CIP, the City should allocate all existing fund
balances and projected fee revenue to water facilities projects. The City can hold funds in a
project account for longer than five years if necessary to collect sufficient funds to complete
a project.
Inflation Adjustment
The City should identify appropriate inflation indexes in the fee ordinance and adopt an
automatic inflation adjustment to the fee annually. The City should use separate indexes for
land and construction costs. Calculating the land cost index may require use of a property
appraiser every several years. The construction cost index can be based on the City's recent
capital project experience or taken from any reputable source, such as the Engineering News
Record. To calculate the fee increases, each index should be weighted by the share of total
planned facility costs represented by land or construction, as appropriate.
Reporting Requirements
The City should comply with the annual and five -year reporting requirements of Government
Code 66000 et seq. For facilities to be funded with a combination of public facilities fees and
other revenues, the City must identify the source and amount of the other revenues. The
City must also identify when the other revenues are anticipated to be available to fund the
project.
MuniFinancial 48
• •
10. WASTEWATER FACILITIES
In 2004 the City of Morro Bay authorized a study to determine what improvements would
be needed in their collection system over the next several years. The study recommended
approximately $4 million worth of near term improvements and another $1 million in future
capital improvements.
In 2006 the City and the Cayucos Sanitary District approved a schedule that assured the
conversion to full secondary and tertiary treatment and partial composting by March 31,
2014. A study is currently underway to determine the need for upgrades and expansion of
the existing wastewater treatment plant to meet this schedule.
Based on the status of the current study on the facilities and the financing plan for such
improvements for the wastewater collection and treatment facilities, the City should review
and calculate the amount of the impact fees once all costs are determined from the Master
Plan and the alternatives for financing the future facilities have been evaluated. The
availability of certain financing programs will have a significant affect on the final impact
fees.
With regards to the current impact fee collected by the City, we have completed an estimated
analysis to confirm if such current fees are reasonable. Based on the current demand of
approximately 11,489 DUEs in the system and conservative estimated facilities replacement
costs of $26,040,379, the City may continue to collect the existing impact fee of $2,257, until
a new impact fee study can be completed based on the new facilities costs. In addition, the
City should identify an appropriate inflation indexes in the fee ordinance and adopt an
automatic inflation adjustment to the fee annually.
This chapter presents an analysis of the need for wastewater facilities to accommodate new
development in the City of Morro Bay. Separate fee schedules are presented based on the
cost of these facilities based on the Escalated System Cost.
Dwelling Unit Equivalents
Facility standards are used to determine the capacity needed to accommodate development.
Consequently, standards provide a reasonable relationship between development and the
need for public facilities to serve that development. For purposes of this study, we used
typical wastewater facilities demand patterns to calculate the Dwelling Unit Equivalent
(DUE) factors for the various land use types. Table 10.1 presents the growth projections for
the City expressed in residential dwelling units for the residential land use type and in
workers and building square feet for the nonresidential land use type. Table 10.2 presents
the DUE conversion by land use. These DUE factors are used to allocate project costs
among individual developments because they provide a reasonable estimate of each
development's demand for wastewater facilities.
MuniFinancial
49
•
•
•
•
•
•
Table 10.1: Growth Assumptions
2006 2010 Increase
Residents' 10,293 10,918 625
Dwelling Units'
Single Family 4,667 4,950 283
Multi- family 2,333 2,443 110
Total 7,000 7,393 393
Employment 2
Commercial 1,658 1,751 93
Office 2,115 2,233 118
Industrial 549 580 31
Subtotal 4,322 4,564 242
Other' 163 172 9
Total 4,485 4,736 251
Building Square Feet (000s)
Commercial 790 834 44
Office 693 732 39
Industrial 549 580 31
Total 2,032 2,146 114
' California Department of Finance (DOF), as of January 1, 2006
2SLOCOG
3 Represents government and other institutional.
Based on employment by land use and occupant density shown in Table 2.1.
Sources: California Department of Finance (DOF), Table E -5, 2006; Employment Density Study
Summary Report, prepared by the Natelson Company, October 2001; SLOCOG; MuniFinancial.
MuniFinancial 50
ration Facto
le 10.2: Flow Ge
r
ra
ro
U
0
N
4)
E
E
0
to
to
C
N 0 0 N CO N
0 0 00 0 N-
CO M N O T
N r r T.
N
N O O C) N
O lD CO
r r 0)
r O
N 01
Dwelling Units (DU) / Building Square Feet (000s)
o. m
ao n
0)) ' N
M 0 n
n O CO
C) r O
N O
S
N.
- a
O 0
a y
(, 0
m o
U ca
m r
a a
`0 0
O O
0. a
o N
2' 2'
m 0
.co .c
N N
0
`w
a 0
A m
0) 3
0) nN O)
2 U m
• N
> >
Q a ¢ o - W
y LL N U
C y C LL O
w • Oo `w 0 «0
W W 0 )-
9
N
2.)
TA c
0 0
m
K
E m
E o
N q
LL
T
N LL
c
`m
c
7m
C
3 _
,1=
m v m $
_ m
g
m E r
s v m g,
o 0 m
r °s3
:32E5
E m
i E ° S
• 0 3 0
A E 0 3 0
W
▪ 3 A a = 'o
2 m m
m
, o E 5
o ` L $
c
3 a
, • 0• 133 E E
D' U' m
• m'a 8
w o
` c aLL n 3
t m m E
o @ m
iu m m
3 m °s 9
c v m
m E
y m o C
amm
a @i 5
q b
• > V
0
o
w
a °_m o
.O m m LL O
a C W R
P W Z 0 IS
Source: City of Morro Bay; MuniFinancial
•
h
•
Fee Schedule - S stem Cost
Table 10.3 presents the cost per DUE calculation based on existing DUE demand
placed on the wastewater system. The Escalated System Cost is based on the Estimated
Historical Cost, with a fifteen year escalation factor applied. Since most of the current
wastewater facilities were installed prior to the last fifteen years and in many cases back
to the 1950's, new facilities may require higher quality or environmental factors.
Therefore, this cost only represents a portion of the full replacement cost for the system.
Table 10.3: Fee per DUE Calculation
Estimated Historical Cost $ 16,396,677
Cost Escalator 1 1.59
Escalated System Cost $ 26,040,379
DUEs 11,489
Fee per DUE $ 2,267
'Engineering News Reocrd Construction Cost Index- 10 year projection.
Sources: Table 10.2; 2004 City of Morro Bay GASB 34 Report; MuniFinancial.
Table 10.4 presents the proposed wastewater . facilities impact fee based on System Costs
in Table 10.3 and meter size.
MuniFinancial 52
• •
Table 10.4: Wastewater Impact Fee
Meter Equivalent Cost per Meter
Meter Size Ratio 1,2 Admin 3 Total Fee 4
5/8" x 3/4" 1.00 $ 2,267 $ 6 $ 2,273
1" 1.67 3,778 9 3,788
11/2" 3.33 7,557 19 7,576
2" 6.67 15,113 38 15,151
3" 10.67 24,181 60 24,242
4" 16.67 37,783 94 37,878
6" 33.33 75,567 189 75,756
8" 80.00 181,360 453 181,813
10" 1.26.67 287,153 718 287,871
12" 166.67 377,833 945 378,778
t 5/8" x 3/4" meter size represents a single family dwelling unit.
2 Fee per meter size based on meter equivalent ratio (relative to a single family dwelling unit).
3 Administrative charge of 2.5 percent.
4 Total fee per meter size.
Sources: Table 10.2; City of Morro Bay; MuniFinancial.
MuniFinancial 53
•
•
•
Im • lementation
This section identifies tasks that the City should complete when implementing the fee
programs.
Programming Revenues and Projects with the CIP
The City should update its Capital Improvement Plan (CIP) to program fee revenues to
specific projects. Use of the CIP in this manner documents a reasonable relationship
between new development and the use of fee revenues.
For the five -yeat planning period of the CIP, the City should allocate all existing fund
balances and projected fee revenue to wastewater facilities projects. The City can hold
funds in a project account for longer than five years if necessary to collect sufficient
funds to complete a project.
Inflation Adjustment
The City should identify appropriate inflation indexes in the fee ordinance and adopt an
automatic inflation adjustment to the fee annually. The City should use separate indexes
for land and construction costs. Calculating the land cost index may require use of a
• property appraiser every several years. The construction cost index can be based on the
City's recent capital project experience or•taken from any reputable source, such as the
Engineering News Record. To calculate the fee increases, each index should be weighted by
the share of total planned facility costs represented by land or construction, as
appropriate.
Reporting Requirements
The City should comply with the annual and five -year reporting requirements of
Government Code 66000 et seq. For facilities to be funded with a combination of public
facilities fees and other revenues, the City must identify the source and amount of the
other revenues. The City must also identify when the other revenues are anticipated to
be available to fund the project.
MuniFinancial 54
• •
11. MITIGATION FEE ACT FINDINGS
Public facilities fees are one -time fees typically paid when a building permit is issued and
imposed on development projects by local agencies responsible for regulating land use
(cities and counties). To guide the widespread imposition of public facilities fees, the
State Legislature adopted the Mitigation Fee Act (the Act) with Assembly Bill 1600 in 1987
and subsequent amendments. The Act, contained in California Government Code Sections
66000 through 66025, establishes requirements on local agencies for the imposition and
administration of fee programs. The Act requires local agencies to document five
findings when adopting a fee.
The five statutory findings required for adoption of the maximum justified public
facilities fees documented in this report are presented in this chapter and supported in
detail by the report that follows. All statutory references are to the Act.
Pur ose of .,Fee
For the first finding the City must:
Identify the purpose of the fee. §66001(a)(1)
The policy of the City of Morro Bay is that new development will not burden existing
development with the cost of public facilities required to accommodate growth. The
purpose of the public facilities fees documented by this report is to implement this
policy by providing a funding source from new development for capital improvements
to serve that development. The fees advance a legitimate interest of the City by enabling
the City to provide municipal services to new development.
Use of Fee Revenues
For the second finding the City must:
Identify the use to which the fee is to be put. If the use is financing public facilities,
the facilities shall be identified. That identification may, but need not, be made by
reference to a capital improvement plan as specified in Section 65403 or 66002, may
be made in applicable general or specific plan requirements, or may be made in other
public documents that identify the public facilities for which the fee is charged.
566001 (a) (2)
The public facilities fees documented by this report will fund expanded facilities to serve
new development. All facilities funded by these fees will serve residents and workers of
the City of Morro Bay. Each public facility fee will be restricted to funding only one of
the following types of public facilities:
MuniFinancial
55
•
•
•
• •
• General facilities;
• Police facilities;
• Park facilities;
• Fire facilities;
• Strom Drain facilities;
• Transportation facilities;
• Water facilities; and
• Wastewater facilities
Detailed descriptions of certain planned facilities, including their specific location if
known at this time, are included in master plans, capital improvement plans, or other
City planning documents or are available from City staff. The City may change the list
of planned facilities to meet changing circumstances and needs, as it deems necessary.
The fee program should be updated if these changes result in a significant change in the
fair share cost allocated to new development.
Benefit Relationshi
For the third finding the City must:
Determine how there is a reasonable relationship between the fee's use and the
type of development project on which the fee is imposed: §66001(a)(3)
The City will restrict fee revenues to the acquisition of land, construction of public
buildings, and purchase of related equipment, furnishings, vehicles, and services that
serve new development. Public facilities funded by each fee will provide a citywide
network of services accessible to the additional residents and workers associated with
new development. Fees will not fund planned facilities needed to correct existing
deficiencies. Thus, there is a reasonable relationship between the use of fee revenues
and the residential and nonresidential types of new development that will pay the fee.
Burden Relationship
For the fourth finding the City must:
Determine how there is a reasonable relationship between the need for the
public facility and the type of development project on which the fee is imposed.
§66001(a)(4)
The need for each type of facility is based on a facility standard that represents the
demand generated by new development for that facility. Service population, EDUs,
DUEs and trips determine demand for facilities. For each facility type demand is
MuniFinandal
56
• •
measured by a single facility standard that can be applied across land use types to ensure
a reasonable relationship to the type of development. Service population standards are
calculated based on residents associated with residential development and employment
associated with nonresidential development. To calculate a single per capita standard,
one worker is weighted less than one resident based on an analysis of the relative
demand between residential and nonresidential development.
The same facility standards used to determine growth needs are also used to determine if
planned facilities will partially serve existing development by correcting existing
deficiencies. This approach ensures that new development will only be responsible for
its fair share of planned facilities, and that each public facilities fee will not unfairly
burden new development with the cost of facilities associated with serving existing
development.
See the Growth Projections chapter for a description of how service population and growth
projections are calculated. Facility standards are described in the Facility Inventories, Plans
and Standards section of each fee chapter.
Pro • ortionalit
For the fifth fording the City must:
Determine how there is a reasonable relationship between the amount of the fee
and the cost of the public facility or portion of the public facility attributable to
the development on which the fee is imposed. §66001(b)
This reasonable relationship between each public facilities fee for a specific development
project and the cost of the facilities attributable to that project is based on the estimated
amount of demand that the project will accommodate. The total fee for a specific
project is based on its size as measured by building square feet. The fee schedule
converts the estimated demand that a development project will accommodate into a fee
based on the size of the project. Larger projects of a certain land use type will have a
higher service population and pay a higher fee than smaller projects of the same land use
type. Thus, the fee schedule ensures a reasonable relationship between the public
facilities fee for a specific development project and the cost of the facilities attributable
to that project.
See the Growth Projections chapter or Demand section in each specific chapter for a
description of how demand is determined for different types of land uses using
occupancy density factors. See the Fee Schedule section of each facility chapter for a
presentation of the public facilities fee schedule.
MurFinan iat 57
•
•
•
•
•
VI
EXHIBIT B
REVISED FEE SCHED1E
Adjusted Public Facilities Fee Summary (per Square Foot)
General Stenn
Land Use Government Police Parks Fire Drain Traffic Water") Wastewater rat Total
(Fee per Square Foot)
Single Family $ 0.98 $ 0.33 $ 1.03 $ 0.36 $ 0.05 $ 1.59 $ 0.55 $ 1.52 $ 6.41
Multi-family $ 1.63 $ 0.54 $ 1.71 $ 0.59 $ 0.06 $ 2.47 $ 0.83 $ 2.27 $ 10.10
Nonretidentia( (Fee per Building Square Foot, Except Storm Fees which am per Land Square Foot)
Commercial $ 0.19 3 0.06 $ - 3 0.18 $ 0.03 3 2.88 S 2.06 3 3.79 6 9.17
Office $ 0.27 S 0.08 3 - $ 0.26 3 0.03 $ 1.72 3 2.08 3 3.79 3 8.21
Industrial $ 0.09 $ 0.03 $ - $ 0.08 S 0.03 $ 0.99 $ 2.06 $ 3.79 $ 7.07
1 Water and wMWralr actual fees ale bud co the max Nee Amount Nowt is ea9reled bud on the M h UM* E.3 aided by the estimated balding aquae Math T•ble E3.
Adjusted Public Facilities Fee Summary
Estimated General Storm
Land Use Building Sq Ft Government Police Parks Fire Drain Traffic Water "' Wastewater nil Total
$genWsI (Fee per Unit, Based on Estimated &dh*ng Sq FC except Water end Wastewater)
Single Family 1,500 $ 1,470 $ 495 $ 1,545 $ 540 $ 75 $ 2,385 $ 825 $ 2.273 $ 9,608
Multi-family 1,000 $ 1,630 $ 540 $ 1,710 $ 590 $ 60 $ 2,470 $ 825 $ 2,273 $ 10,098
Non,M$ntiai (Fee per 1,000 Building Square Feet, Except Storm Fees which am per Acre and Water and Wastewater)
Commercial 1,000 $ 190 $ 60 $ - $ 180 8 1,307 $ 2,860 $ 2,063 $ 3,788 $ 10,447
O81ce 1,000 $ 270 $ BO S - 8 260 $ 1,307 $ 1,720 $ 2,063 $ 3,788 $ 9,487
Industrial 1,000 $ 90 $ 30 $ - $ 80 $ 1,307 $ 990 $ 2,063 $ 3,788 $ 8,347
1 Based one 51a inch near far ResidrNe and 1 Inch for No.wesidraa.
RESOLUTION NO. 46-07
DESIGNATION OF PRIMARY AND SECONDARY PROPOSERS FOR
® LEASE SITE 87-88/87W-88W AND AUTHORIZATION FOR THE PRIMARY
PROPOSER, CALDWELL/REDICAN, TO APPLY FOR DEVELOPMENT PERMITS
FOR LEASE SITE 87.88/87W-88W LOCATED AT 833 EMBARCADERO
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS the City of Morro Bay is the lessor of certain properties on the Morro
Bay Waterfront described as Lease Site 87-88/87W-88W; located at 833 Embarcadero;
and,
WHEREAS, the Morro Bay City Council directed staff to put out a request for
proposals for development of said Lease Site; and,
WHEREAS City staff prepared a request for proposals with a submittal deadline
of July 31, 2007, advertised said request in local papers; and,
WHEREAS, on July 31, 2007 three qualified proposals were received at City
Hall, and,
WHEREAS, City staff set up a three person panel to review the proposals; and,
WHEREAS, on September 4, 2007 the panel heard presentations from all the
proposers and recommended that the City Council designate Burt Caldwell and Doug
Redican Proposal I (Caldwell/Redican) as the primary proposer and Violet Leage as the
® secondary proposer for Lease Site 87-88/87W-88W.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro
Bay that the Caldwell/Redican Proposal I is hereby designated as the primary proposer
for Lease Site 87-88/87W-88W and that the proposal submitted by Violet Leage is
hereby designated as secondary proposer for Lease Site 87-88/87W-88W.
BE IT FURTHER RESOLVED, that as primary proposer Caldwell Redican must
obtain concept level approval of the development plans for Lease Site 87-88/87W-88W
by September 24, 2008. City staff is hereby authorized to complete any necessary
paperwork, such as the landlord's consent, to enable Caldwell/Redican to apply for said
development permits.
BE IT FURTHER RESOLVED, that should Caldwell/Redican fail to meet the
September 24, 2008 deadline for concept level approval of development plans, the
secondary proposer, Violet Leage, will ascend to the primary proposer position.
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a
regular meeting held thereof on the 24`s day of September 2007, by the following vote:
AYES: DeMeritt, Grantham Peirce, Peters
NOES: Winholtz
ABSENT: None
u.
JA E PETERS MAYOR
JA91E BOUCHER, DEPUTY CITY CLERK
® RESOLUTION NO. 45-07
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY
ACCEPTING $100,000 FROM THE STATE OF CALIFORNIA CITIZENS
OPTION FOR PUBLIC SAFETY (COPS) PROGRAM
WHEREAS, Government Code Sections 30061 through 30064 is providing
supplemental funds for front line municipal police services after the City adopted its
2007-2008 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 24 h of September 2007, by the following vote:
AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST: J /
J e Boucher, Deputy City Clerk
11
® RESOLUTION NO. 44-07
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA
AUTHORIZING COOPERATIVE PURCHASING AGREEMENTS
(PIGGYBACK PURCHASING)
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, the City of Morro Bay has the need to purchase items
through the Request for Proposal (RFP) process; and
WHEREAS, California Government Code Sections 54201 - 54205 that
set the practice of establishing purchasing policies by local governments do not
preclude governmental agencies from purchasing items based on the RFP
process of another governmental agency; and
WHEREAS, Staff recognizes the amount of time spent in RFP process
that will be saved through cooperative purchasing agreements;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
® City of Morro Bay, California, that the City will engage in cooperative
purchasing agreements (piggyback purchasing) where it is beneficial to the City
and declare the following employee to act on the City's behalf:
Susan Slayton Finance Director/Treasurer/Purchasing Agent
PASSED AND ADOPTED by the City Council of the City of Morro
Bay at a regular meeting thereof held on the 10th day of September 2007, on the
following vote:
AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters
NOES: None
None
ABSENT:
ATTEST:
C' ,t BAUER,
® RESOLUTION NO.43-07
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY
AUTHORIZING THE SUBMITTAL OF AN APPLICATION TO THE
CALIFORNIA STATE DEPARTMENT OF HOUSING AND COMMUNITY
DEVELOPMENT FOR FUNDING UNDER THE HOME INVESTMENT
PARTNERSHIPS PROGRAM; AND IF SELECTED, THE EXECUTION OF A
STANDARD AGREEMENT AND ANY AMENDMENTS THERETO; AND ANY
RELATED DOCUMENTS NECESSARY TO PARTICIPATE IN THE HOME
INVESTMENT PARTNERSHIPS PROGRAM.
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, the California Department of Housing and Community
Development (hereinafter referred to as the "Department") is authorized to allocate
HOME Investment Partnership Program ("HOME") funds made available from the U.S.
Department of Housing and Urban Development ("HUD"). HOME funds are to be used
for the purposes set forth in Title II of the Cranston -Gonzalez National Affordable
Housing Act of 1990, in federal implementing regulations set forth in Title 24 of the
® Code of Federal Regulations, part 92, and Title 25 of the California Code of Regulations
commencing with section 8200; and
WHEREAS, the Department anticipates issuing a 2007 Notice of Funding
Availability announcing the funds under the HOME Over -the -Counter Program (the
"OTC NOFA'); and
WHEREAS, In response to the 2007 OTC NOFA, the City of Morro Bay, a
municipal corporation subdivision of the State of California, (the "Applicant"), wishes to
apply to the Department for and receive an allocation of HOME funds.
NOW, THEREFORE, BE IT RESOLVED, in response to the 2007 OTC
NOFA, the Applicant shall submit an application to the Department to participate in the
HOME program and for an allocation of funds not to exceed Four Hundred Eighty Six
Thousand Dollars ($486,000.00) for the following activities and programs to be located
in the City of Morro Bay: Owner -Occupied Rehabilitation Program.
BE IT FURTHER RESOLVED that if the application for funding is approved,
then the Applicant hereby agrees to use the HOME funds for eligible activities in the
manner presented in the therefore mentioned application as approved by the Department
in accordance with the statues and regulations cited above. The Applicant may also
execute a Standard Agreement, any amendments thereto, and any and all other documents
or instruments necessary or required by the Department of HUD for participation in the
® HOME program (collectively, the required documents).
Resolution No. 43-07
Page Two
BE IT FURTHER RESOLVED that the applicant authorizes the Public Services
Director or his designee(s) to execute, in the name of the applicant any required
documents as outlined by the Department, HUD or other agency related to the program.
PASSED AND ADOPTED at a regular meeting of the City Council of the City
of Morro Bay held on August 27, 2007 by the following vote:
AYES:
NOES:
ABSENT:
DeMeritt, Grantham, Peirce, Winholtz, Peters
None
None
ATTEST:
BRIDGET AUER, City Clerk
C
® RESOLUTION NO.42-07
AUTHORIZATION FOR THE CITY OF MORRO BAY TO
ENTER INTO AN AMENDMENT TO GRANT AGREEMENT #05-128-990
WITH THE DEPARTMENT OF BOATING AND WATERWAYS
FOR MORRO BAY STATE PARK REHABILITATION PROJECT PLANNING
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, in 2002 the City of Morro Bay (City) and the California Department of
Parks and Recreation (State Parks) entered into an agreement to have the City of Morro Bay
manage planning, design and construction for improvements and rehabilitation of the State Park .
Marina; and,
WHEREAS, per the terms of the agreement between the City and State Parks, revenues
from the State Park Marina are paid to the City to complete an EIR for the rehabilitation project
and,
WHEREAS, funding for construction of the actual improvements to the State Park
Marina as yet unsecured, but the project may qualify for the DBW Capital Outlay Program; and,
WHEREAS, in July 2006 the City and DBW entered into grant agreement #05-128-980
to provide $80,000 funding for planning work to fiuther identify and analyze dredging disposal
analysis and construction alternatives; and,
® WHEREAS, DBW has agreed to fund an additional $85,000 through an amendment to
grant agreement 405-128-980 to work on design specifications and cost estimates for the State
Park Marina Rehabilitation -Project.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro
Bay that the City of Morro Bay is hereby authorized to enter into amendment #05-128-980 for the
Morro Bay State Park Marina Rehabilitation Project Planning Grant in the amount of $85,000.
BE IT FURTHER RESOLVED, that the Harbor Director is hereby authorized to act as
the City's agent in regards to all aspects of the amended grant agreement.
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular
meeting held thereof on the 27 ° day of August 2007, by the following vote:
AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters
11
RESOLUTION NO.41-07
® RESOLUTIONS OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA
FOR THE APPLICATION/AUTHORIZATION/REE"URSEMENT FOR THE SMALL
COMMUNITY WASTEWATER GRANT PROGRAM
THE CITY COUNCIL
City of Morro Bay, California
APPLICATION/AUTHORIZED REPRESENTATIVE RESOLUTION
WHEREAS, the City Council of the City of Morro Bay agrees that the Finance Director is hereby
authorized and directed to sign and file, for and on behalf of the City of Morro Bay, a Financial Assistance
Application for a loan/grant from the State Water Resources Control Board in the amount not to exceed
$1,428,400, for the planning, design, and construction of the Morro Bay/Cayucos Sanitary District Jointly -
owned Wastewater Treatment Facility; and
WHEREAS, the City of Morro Bay hereby agrees and further does authorize the aforementioned
representative or his/her designee to certify that the City has and will comply with all applicable state and
federal statutory and regulatory requirements related to any federal and state loan/grants received.
® NOW, THEREFORE BE It RESOLVED, that the Finance Director or his/her designee of the
City of Morro Bay is hereby authorized to negotiate and execute a loan/grant contract and any amendments
or change orders thereto and certify loan/grant disbursements on behalf of the City of Morro Bay.
REIMBURSEMENT RESOLUTION
WHEREAS, the City of Morro Bay (the "City") desires to finance the costs of constructing and/or
reconstructing certain public facilities and improvements relating to its water and wastewater system,
including certain treatment facilities, pipelines and other infrastructure (the "Project"); and
WHEREAS, the City intends to finance the construction and/or reconstruction of the Project or
portions of the Project with moneys ('Project Funds") provided by the State of California, acting by and
through the State Water Resources Control Board (SWRCB); and
WHEREAS, the SWRCB may fund the Project Funds with proceeds from the sale of obligations
the interest upon which is excluded from gross income for federal income tax purposes (the "Obligations");
and
WHEREAS, prior to either the issuance of the Obligations or the approval by the SWRCB of the
Project Funds the City desires to incur certain capital expenditures (the "Expenditures") with respect to the
Project from available moneys of the City; and
® WHEREAS, the City has determined that those moneys to be advanced on and after the date hereof
to pay the Expenditures are available only for a temporary period and it is necessary to reimburse the City
for the Expenditures from the proceeds of the Obligations;
NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:
® SECTION 1. The City hereby states its intention and reasonably expects to reimburse Expenditures paid
prior to the issuance of the Obligations or the approval by the Board of the Project Funds.
SECTION 2. The reasonably expected maximum principal amount of the Project Funds is $24,770,000.
(Note: The Division of Financial Assistance may provide up to 150 percent of the
Preliminary Loan Commitment without having to go back to the Board or Division Chieffor
reauthorization. Also, the amount stated here cannot be exceeded by Division unless
superceded by Resolution.)
SECTION 3. This resolution is being adopted no later than 60 days after the date on which the City will
expend moneys for the portion of the Project costs to be reimbursed with Project Funds.
SECTION 4. Each Expenditure by the City will be of a type properly chargeable to a capital account
under general federal income tax principles.
SECTION 5. To the best of our knowledge, this City is not aware of the previous adoption of official
intents by the City that have been made as a matter of course for the purpose of reimbursing
expenditures and for which tax-exempt obligations have not been issued.
SECTION 6. This resolution is adopted as official intent of the City in order to comply with Treasury
® Regulation § 1.150-2 and any other regulations of the Internal Revenue Service relating to
the qualification for reimbursement of Project costs.
SECTION 7. All the recitals in this Resolution are true and correct and this City so finds, determines and
represents.
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting
thereof held on the 27th day of August 2007 by the following vote:
AYES:
DeMeritt, Grantham, Peirce, Winhol
NOES:
None
ABSENT:
None
ATTEST:
I0
® RESOLUTION NO.40-07
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY,
CALIFORNIA APPROVING INITIATION OF PROCEEDINGS FOR THE
ANNEXATION OF CITY -OWNED PROPERTIES IN THE CHORRO VALLEY
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, City of Morro Bay City Council desires to initiate proceeding
pursuant to the Cortese -Knox -Hertzberg Local Government Reorganization Act of 2000,
commencing with Section 56000 of the California government Code, for annexation of
territory to the City of Morro Bay; and
WHEREAS, this resolution is submitted to comply consistent with Government
Code Section 56700; and
WHEREAS, the Notice of Intent to adopt this Resolution of Application has been
given according to Government Code Section 56654(b); and
WHEREAS, the following agency or agencies would be affected by the proposed
jurisdictional changes: Agency: County of San Luis Obispo. Nature of Change: Annex into
® the City of Morro Bay; and
WHEREAS, the territory is uninhabited. A map of the territory is attached hereto
as Exhibits A, and is incorporated herein by this reference; and
WHEREAS, the proposed annexation is subject to the following terms and
conditions;
a. The property is intended to be used by the City of Morro Bay for operation
and maintenance of City water wells and associated public facility uses. The
City of Morro Bay does not intend for the property to be used for any other
use.
WHEREAS, the City of Morro Bay intends to file an application with the County
of San Luis Obispo requesting a change in land use from the current agriculture zoning to
public facilities; and
WHEREAS, LAFCO will assume Lead Agency status, responsible for compliance
with the California Environmental Quality Act (CEQA) and the City of Morro Bay shall pay
for any studies needed to comply with CEQA; and
® WHEREAS, LAFCO had determined that this proposal meets the criteria for
waiver of Conducting Authority proceedings as set forth in Government Code Section
56663(a).
® Resolution No. 40-07
Page Two
NOW, THEREFORE, BE TT RESOLVED that the City Council of the City of
Morro Bay hereby adopts and approves this Resolution of Application, and hereby requests
that LAFCO proceed with the processing of this sphere of influence amendment and the
annexation of territory as authorized and in the manner provided by the Cortese -Knox -
Hertzberg Local Government Reorganization Act of 2000.
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular
meeting thereof held on the 1 P day of August 2007 on the following vote:
AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
BRIDGE BAUER, City Clerk
E
® RESOLUTION NO.39-07
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MORRO BAY, CALIFORNIA AMENDING THE GUIDELINES FOR
MAJOR VEGETATION REMOVAL; REPLACEMENT
AND PROTECTION
THE CrrY CouNcn,
CrrY OF MORRO BAY, CALIFORNIA
WHEREAS, the Morro Bay General Plan/Local Coastal Plan recognizes the importance that
Major Vegetation adds to the character and beauty of the City; and
WHEREAS, the Morro Bay Municipal Code and the Coastal Act require a Coastal
Development Permit for the "removal or harvesting of major vegetation other than for agricultural
purposes" but do not include a definition of"major vegetation' in the regulations; and
WHEREAS, the City of Morro Bay has therefore determined that reasonable regulation of
the removal, replacement and protection of major vegetation is necessary to promote the public
® health, safety and general welfare of the community; and
WHEREAS, in 1995 the City Council of the City of Morro Bay adopted Major Vegetation
Removal, Replacement and Protection Guidelines; and
WHEREAS, by Resolution 11-07, the City Council on March 12, 2007 amended the Major
Vegetation Removal, Replacement and Protection Guidelines; and
WHEREAS, based on experience in implementing the 1995 Guidelines and the 2007
Amendment there is a need to again update and refine the current Guidelines to prohibit the removal
of trees during nesting season.
NOW, THEREFORE, be it resolved that the City Council of the City of Morro Bay hereby
amends and makes revisions to the Major Vegetation Removal, Replacement and Protection
Guidelines that were previously adopted by the City Council as follows:
C
Resolution 39-07 Page 2 of 4
. Major Vegetation Removal, Replacement
and Protection Guidelines
A. Pursuant to 17.12.199.G. Major Vegetation Shall Be Defined As:
1. Natural riparian vegetation within fifty (50) feet from the top of a creek bank, coastal
bluff, beach, or sand dune.
2. Natural riparian vegetation within fifty (50) feet from a wetland as defined by the U.S.
Fish and Wildlife Service and the Coastal Commission Statewide Interpretive
Guidelines.
3. Threatened or endangered plant species including trees as defined by the
Environmental Protection Agency and the California Natural Diversity Data Base.
4. Vegetation growths providing a significant habitat base for threatened or endangered
animal species.
5. City -designated or voluntarily identified landmark trees.
6. Any tree with a trunk that is a minimum of six (6) inches in diameter (i.e., 18.8" in
circumference) at four and one half feet (4 1/2) vertically above the ground, or, any
tree with multiple trunks that includes at least one trunk with a minimum diameter of
six (6) inches in diameter at four and one half feet (4 1/2) vertically above the ground
or with trunks that have an aggregate diameter of at least twenty (20) inches at four
® and one half feet (4 1/2) vertically above the ground.
7. Exceptions which are NOT considered major vegetation:
a. Crop trees and/or ornamental edible fruit trees are not considered major
vegetation and shall not require a Coastal Development Permit for removal.
b. Diseased, damaged and/or aged trees that pose an imminent danger to persons
and/or property shall not require a Coastal Development Permit for removal.
If the tree to be removed is diseased and/or hazardous, a report by a certified
arborist stating that the tree presents a hazard and must be immediately
removed shall be submitted to the Public Services Department.
C. Single family residential homes shall not require a Coastal Development
Permit for the removal of less than three trees in any twelve (12) month
period.
B. Coastal Development Permit and Findings Required:
1. Removal of major vegetation as defined in Section A shall require a Coastal
Development Permit which shall be processed as follows:
a. Ifthe major vegetation removal is within non -appeal jurisdiction, the City shall
process an Administrative Coastal Development Permit (the administrative
permit process shall be changed to a "Minor Coastal Development Permit"
procedure at the time the City implements such procedure).
® b. If the major vegetation removal is within appeal or original jurisdiction, a
regular Coastal Development Permit shall be required.
Resolution 39-07
Page 3 of 4
2. For a Coastal Development Permit to issue, the following findings must be made:
a. That the major vegetation removal, as mitigated, will not significantly impact
any threatened or endangered plant or animal habitat area
b. That reasonably calculated mitigation measures are in place to avoid
dangerous soil erosion or instability resulting from the removal;
C. That the Major Vegetation removal will not adversely affect the character of
the surrounding neighborhood.
3. In the event that a Coastal Development Permit is denied under the terms of these
guidelines and said denial is the sole cause that the property owner is reasonably
unable to develop the property, the City may waive the provisions of this ordinance in
such a manner as to make reasonable development possible.
C. Vegetation Protection Policy:
1. Except in the case of an emergency as determined by the Director of Public Services, no tree
should be removed during nesting season, which is February 1 through June 30.
D. Vegetation Replacement Policy:
1. All citizens of Morro Bay and all tree owners presenting Removal Notification shall
be encouraged to participate in the Voluntary Tree Program. Replacement vegetation
may be planted on site, on City property w directed by the Public Works Department,
or on property designated in the "Trees Wanted List," which shall consist of property
owners who would like trees planted on their property and are willing to commit to
maintain the planted trees until established; the City will provide the property owner
with printed information on the City -sponsored Voluntary Tree Program.
2. All major vegetation removed with a Coastal .Development Permit (Minor,
Administrative, or Regular) shall be subject to a mandatory replacement program as
follows:
E. Fees:
E
a. Trees shall be replaced at a ratio of two 5-gallon trees or one 15-gallon tree
for every tree removed.
b. Tree removal within an Environmentally Sensitive Habitat (ESH) zone, a
wetland, or a stream corridor shall be replaced at a ratio of three 5-gallon
trees or two 15-gallon trees for every tree removed.
C. Replacement vegetation may be planted on the applicant's site or other
privately held lands with the property owner's permission, or presented to the
City to plant on public lands.
A fee equal to the City's cost of such permit processing shall be charged for all
Coastal Development Permits.
Resolufion 39-07
Page 4 of 4
E
0
11
F. Fines and Penalties:
l . Any unpermitted major vegetation removal undertaken in an ESH zone, a wetland, or
a stream corridor shall be replaced at a ratio of five 15-gallon trees for every tree
removed.
2. Any unpermitted tree removal undertaken in an area other than an ESH zone,
wetland, or a stream corridor shall be replaced at a ratio of two 15-gallon trees for
every tree removed:
3. If the City finds a professional person or company responsible for the illegal removal
of major vegetation, the City shall notify the appropriate certifying body and/or
licensing board to inform them of the name of the professional responsible for the
unauthorized removal and the circumstances of the violation.
G. Maior Vegetation Plan for Proposed Construction:
1. All proposed construction plans shall show existing major vegetation.
2. If Staff finds that the proposed construction will encroach on existing major
vegetation, the applicant shall:
a. Have the option of requesting a permit to remove the vegetation; or
b. Retain the vegetation with recommendations from Planning and Building staff
for protective plans.
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting
thereof held on the 9t° day of July, 2007 by the following vote:
AYES:
NOES:
ABSENT
DeMeritt, Grantham, Peirce, Wuiholtz, Peters
None
None
ABSTAIN: None
ATTEST:
BRIDGE BAUER, CITY CLERK
RESOLUTION NO.37-07
® APPROVAL OF TWO SUBLEASE AGREEMENTS FOR PORTIONS OF
LEASE SITE 124-128/124W-128W, LOCATED AT 1215 EMBARCADERO,
BETWEEN DARBY NEIL AND VIRG'S LANDING, INC. AND BETWEEN DARBY NEIL AND
SURACHETE KORWAIS DBA THAI BOAT AND SEAFOOD MARKET
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 124-128/124W-128W; and,
WHEREAS, Darby Neil is the lessee of said property; and,
WHEREAS, Darby Neil has requested City Council approval of a sublease agreements
for portions of Lease Site 124-128/24W-128W between Darby Neil and Virg's Landing, Inc. and
between Darby Neil and Surachete Korwais, dba Thai Boat and Seafood Market; and,
WHEREAS, Darby Neil has completed the assignment application form, paid the
assignment fee and provided background information on the proposed subleases. The Consent to
Sublease agreements have been executed and copies of the sublease agreements have been
provided to the City.
is NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro
Bay that subleases for portions of Lease Site 124-128/124W-128W between Darby Neil and
Virg's Landing, Inc. and between Darby Neil and Surachete Korwais, dba Thai Boat and
Seafood Market are hereby approved and that the Mayor is hereby authorized to execute the
Consent to Sublease documents.
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular
meeting held thereof on the 9t' day of July 2007, by the following vote:
AYES: DeMeritt, Peirce, Winholtz, Peters
NOES: None
ABSENT: Grantham
J CE PETERS, MAYOR
B G—E-7T�-3-ZER, CITY CLERK
E
RESOLUTION NO. 36-07
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 29, 2007 the City Council did adopt Resolution No. 29-07 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 25, 2007 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 25, 2007
at the Veteran's 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 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 2007-08 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 2007-08 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 25th day of June, 2007 by the following roll call vote:
AYES: DeMeritt, Grantham, Peirce, Wirtholtz, Peters
NOES: None
ABSENT: None
9RIDGETT(�AUER, CITY CLERK
EXHIBIT 'A'
CITY OFMORRO BAY
40 NORTH POINT NATURAL AREA
LANDSCAPING AND LIGHTING .
MAINTENANCE ASSESSMENT DISTRICT
ASSESSMENT DIAGRAM
It -I
082
s ,
=� 22. -
NO AREA
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NORTH POINT NATURAL AREA
LEGEND
I. = LOT NUMBER
0 = COUNTY ASSESSORS PARCEL NUMBER
Z0 A 1 .
TRACT 2110
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RESOLUTION NO. 35-07
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 29, 2007 the City Council did adopt Resolution No. 28-07 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 25, 2007 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 Cloisters Landscaping and Lighting Maintenance Assessment District on June 25, 2007 at
the Veteran's 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 2007-08 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 2007-07 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 25th day of June, 2007 by the following roll call vote:
AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters
NOES: None
ABSENT: None
ATTEST:
BRIDGETT B6UER, CITY CLERK
TPOB PARCEL 1
Most northerly comer
Lot 122 of Tract 1996
0
0
0
a
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L' =
400•
EXH o : oT A
0
P
RESOLUTION NO.33-07
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA
AUTHORIZING THE ESTABLISHMENT OF A LINE OF CREDIT
WITH FIRST BANK OF SAN LUIS OBISPO
AND DESIGNATING TRANSACTION OFFICERS
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, staff recognizes the need to interim financing to cover cash flow shortages due to
timing of the arrival of key revenues; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay,
California, that the City establish a line of credit with First Bank of San Luis Obispo and designate the
following officers to withdraw funds and effect changes to the account:
Janice Peters
Mayor
Robert E. Hendrix
City Manager
Susan Slayton
Finance Director/Treasurer
Joyce Bunting
Accountant
Laurie Goforth
Lead Account Tech
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting
thereof held on the 11 th day of June 2007, on the following vote:
AYES: Grantham, Peirce, Peters
NOES: DeMeritt, Winholtz
F.V6, 1111 4 W ;
ATTEST:
BRIDGETTYAUER, City Clerk
® RESOLUTION NO.32-07
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA
ESTABLISHING APPROPRIATIONS LIMIT
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, Article XIIIB of the California Constitution establishes a limitation on
the appropriation of funds by the City; and
WHEREAS, the.City has calculated the appropriations limit in accordance with the
provisions of Article XIIIB of the California Constitution; and
WHEREAS, Proposition 11I of June 1990 requires an annual election of the
methodology used in the calculation of the current year appropriations limit.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Morro Bay, California, to accept the calculation as prepared by the Finance Department
and establish the fiscal year 2007-08 Appropriations Limit at $18,617,934.
® 'PASSED AND ADOPTED by the City Council of the City of Morro Bay at a
regular meeting thereof held on the 11th day of June 2007, on the following vote:
AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters
NOES: None
ABSENT: None
ATTEST:
i
-:OU
t. 'A: . .
0
Attachment A
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Attachment B
E
. CITY OF MORRO BAY
APPROPRIATION LIMIT DOCUMENTATION
FISCAL YEAR 2007-08
PROCEEDS OF TAXES CALCULATION
(1)
PROCEEDS
TOTAL
PROCEEDS
OTHER THAN
ESTIMATED
OF TAXES
TAXES
REVENUES
PROPERTY TAXES
$ 2,250,589 $
$
2,250,589
OTHER TAXES
4,070,521
625,000
4,695,521
PERMITS
277,325
277,325
REVENUE FROM AGENCIES
STATE
710,349
710,349
STATE/COUNTY GRANTS
300,800
300,800
FEDERAL GRANTS
-
-
USE OF MONEY & PROPERTY
INTEREST
79,981
135,513
215,494
RENT
186,000
186,000
FINES @ FORFIETURES
58,000
58,000
CHARGES FOR SERVICES
9,936,182
9,936,182
OTHER REVENUES
530,250
530,250
$ 7,111,440 $
12,049,070 $
19, 160,510
(2) [3)
CALIFORNIA POPULATION
YEAR
PCPI CHANGE
CHANGE
LIMIT
1978-79
BASE YEAR
$
3,046,393
1979-80
10.17%
1.380k
3,402,527
1980-81
10.53%
0.26%
3,770,591
1981-82
9.12%
1.39%
4,171,660
1982-83
6.79%
2.04%
4,545,796
1983-84
2.35%
1.81%
4,736,835
1984-85
4.74%
1.75%
5,048,185
1985-86
3.74%
1.62%
5,321,826
1986-87
2.3096
4.12%
5,668,530
1987-88
3.04%
2.93%
6,011,990
1988-89
3.93%
3.83%
6,487,570
1989-90
4.98%
3.92%
7,077,629
1990-91
4.21%
4.59%
7,714,137
1991-92
4.14%
3.04%
8,277,721
1992-93
-0.64%
1.00%
8,306,991
1993-94
2.72%
1.86%
8,691,654
1994-95
0.71%
1.40%
8,875,912
1995-96
4.72%
1.60%
9,443,573
1996-97
4.67%
2.31%
10,112,922
1997-98
' 4.67%
2.D6%
10,803,250
1998-99
4.15%
2.70%
11,555,378
1999-2000
4.53%
2.28%
12,354,234
2000-01
4.91%
2.46%
13,279,663
2001-02
7.82%
1.60%
14,547,223
2002-03
-1.27%
1.80%
14,620,998
2003-04
2.31%
1.32%
15,156,198
2004-05
3.28%
1.15%
15,833,334
2005-06
5.26%
1.19%
16,864,495
2006-07
3.96%
0.73%
17,660,315
2007-08
4.42%
0.96%
18,617,934
PROCEEDS OF TAXES 7,111,440
PROCEEDS OF TAXES
UNDER APPROPRIATION LIMIT $ 11,506,494
[I] Per City of Morro Bay 2007-08 Adopted Annual Budget
[2] Per State Department of Finance (per capita personal income).
[3) Per State Department of Finance (population growth of City or County, whichever is greater).
Attachment C
El
11
1
May 2007
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 2007-2008 appropriation limit is:
Per Capita Personal Income
Fiscal Year Percentage change
(FY) over prior year
2007-2008 4.42
B. Following is an example using sample population change and the change in
California per capita personal income as growth factors in computing a 2007-2008
appropriation limit.
2007-2008:
Per Capita Cost of Living Change = 4.42 percent
Population Change = 1.20 percent
Per Capita Cost of Living converted to a ratio: 4.42 + 100 = 1 0442
i00
Population converted to a ratio: 1.20+100 = 1.0120
]00
Calculation of factor for FY 2007-2008:
1.0442 x 1.0120=1.0567
Fiscal Year 2007-2008
Attachment D
I*
County
City
San Luis Obispo .
Enclosure II
Annual Percent Change in Population Minus Exclusions (')
January 1, 2006 to January 1, 2007 and Total Population, January 1, 2007
Percent Change
2006-2007
— Population Minus Exclusions —
f6QrI1
1.1.07
Total
Population
1-1-2007
Arroyo Grande
1.22
16,557
16,759
16.759
Atascadero
1.02
26,288
26,566
27,778
El Paso De Robles
2.34
28,662
29,334
29,514
Grover Beach
-0.71
13,179
13,085
13,085
Morro Bay
-0.26
10,463
10,436
10,436
Pismo Beach
-0.60
8.597
8,545
8,545
San Luis Obispo
-0.20
44,326
44,239
44.239
Unincorporated
1.47
106,470
108,035
114,544
County Total 0.96 254,542 256,989 264,900
40
(') Exclusions include residents on federal military installations and group quarters'residents in state mental institutions, and state and federal
40 correctional institutions`
Page 1
® RESOLUTION NO.31-07
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF MORRO BAY, CALIFORNIA
ADOPTING THE OPERATING BUDGETS FOR THE
2007 — 2009 BUDGET CYCLE AND APPROPRIATING FUNDS
FOR THE FISCAL YEAR 2007/08 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 the day-to-day business activities of the City; and
WHEREAS, the Morro Bay City Council finds and determines that the appropriations are
necessary for continued efficiency, economy and effectiveness of the City government operations; and
WHEREAS, Section 37208 of the California Government Code provides that payments or
demands conforming to an approved budget adopted by ordinance or resolution do not require audit
by the City Council prior to payment; and
WHEREAS, the City Council recognizes that Capital Improvement Projects authorized and
® approved in prior fiscal years may not be completed by June 30, 2007; and
WHEREAS, the continuing efforts of staff to operate the business of the City within an
approved budget and to create savings wherever feasible are acknowledged by the City Council.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay,
California, that:
I . The Fiscal Year 2007-08 Operating Budget is adopted as presented in the Proposed Budget
and in subsequent attached Amendments A and b, and any further amendments made at this
meeting;
2. Staff is directed to prepare and publish a final budget document;
3. The City Manager is authorized to transfer appropriations within the adopted budget so long
as the appropriations changes do not have a significant policy impact and total appropriations
are not exceeded;
4. City Council approval is required to transfer appropriations between funds, capital projects,
or capital outlay items;
5. The City Council authorizes and directs the transfer of balances for capital projects approved
in prior fiscal years, but not completed by June 30, 3007, to the Capital Improvement Project
Fund(s) for the 2007-08 fiscal year; and
6. The City Council directs that the hiring freeze for positions in the City workforce continue
for those positions funded within the General fund, and the City Council reserves the right to
® review any vacancies on a case -by -case basis as to its official policy.
u
11
u
Resolution No. 31-07
Page Two
PASSED, APPROVED, AND ADOPTED, by the City Council of the City of Morro Bay, at a
regular meeting thereof held on the 24th day of May 2007, by the following vote to wit:
AYES:
NOES:
ABSENT:
DeMeritt, Grantham, Peirce, Peters
Winholtz
None
BRIDGE AVER, City Clerk
J CE PETERS, Ndayor
® RESOLUTION NO.3"7
AUTHORIZATION FOR THE CITY OF MORRO BAY TO
ENTER INTO A GRANT AGREEMENT WITH THE
UNITED STATES DEPARTMENT OF AGRICULTURE
RURAL DEVELOPMENT'S COMMUNITY FACILITIES PROGRAM
FOR PURCHASE OF FIRST RESPONDER EQUIPMENT
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, the City of Morro Bay (City) applied for a grant with the United States
Department of Agriculture (USDA) for a Rural Development Community Facilities Program
grant for purchase of first responder equipment; and,
WHEREAS, the grant covers purchase of a hybrid 4-wheel drive vehicle, two personal
watercraft and associated equipment for first responders; and,
WHEREAS, under the grant agreement, the City will be reimbursed for 35% of the cost
of the first responder equipment.
WHEREAS, a condition of the grant agreement is that the "governing body" must
® authorize execution of the Grant Agreement.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro
Bay that the City of Morro Bay is hereby authorized to enter into a USDA Rural Development
Community Facilities Program for Purchase of First Responder Equipment and that the Mayor is
hereby authorized to execute said grant agreement.
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular
meeting held thereof on the 29's day of May 2007 by the following vote:
AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters
NOES: None
ABSENT: None
BRIDGETT(�AUER, CITY CLERK
® RESOLUTION NO.29-07
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 18,
2007, 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 25,
2007 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 Engineers Report dated May 18, 2007 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
2007-2008.
RESOLUTION 29-07
PAGE
® PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular
meeting thereof held this 29`h of May, 2007 by the following roll call vote:
AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters
NOES: None
ABSENT: None
ATTEST:
F I Wei
`:: • a .
11
40
RESOLUTION NO.28-07
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 18, 2007, 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 25, 2007 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 Engineer's Report dated May 18, 2007,
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
2007-2008.
El
RESOLUTION 28-07
PAGE
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular
meeting thereof held this 29"' day of May, 2007 by the following roll call vote:
AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters
NOES: None
ABSENT: None
ATTEST:
G M_... MIN. -
El
PETERS,MAYOR
RECORDING REQUESTED BY: and
WHEN RECORDED MAIL TO:
Nick Muick
City of Mono Bay Public Services
955 Shasta Avenue
Mono Bay, CA 93442
RESOLUTION NO. 27-07
A RESOLUTION ACCEPTING AN OFFER OF DEDICATION OF A 10' WIDE SEWER
EASEMENT AND ABANDONMENT OF AN EXISTING 10' WIDE CITY SEWER
EASEMENT AT MINERS ACE HARDWARE, 520 ATASCADERO ROAD, AS SHOWN
AT ATTACHED OFFER AND EXHIBITS ATTACHED HEREWITH
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, on October 17, 2005 the City approved a Coastal Development Permit at
Miner's Hardware, 520 Atascadero Road, for a new 20,000 square -foot building and related
improvements; and
WHEREAS, it was necessary to relocate a City sewer main line and easement which is
on site at 520 Atascadero Road; and
® WHEREAS, the Owner has relocated and constructed the new sewer main line in
accordance with City standard and requests that the City abandon the existing easement; and
WHEREAS, the Owner, Michael L. Miner and Susan E. Miner Family Trust, and Steve
Miner and Dorothy Miner, have made said offer of easement attached herewith; and
WHEREAS, it is in the public interest to accept the offer.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Mono
Bay that the attached offer of dedication is hereby accepted and the old easement is hereby
abandoned on behalf of the public.
PASSED AND ADOPTED by the City Council of the City of Mono Bay at a regular
meeting thereof held on the 29 h day of May 2007 by the following vote:
AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters
NOES: None
ABSENT: None
C' '
r/-7
L�-j
RECORDING REQUESTED BY: and
WHEN RECORDED MAIL TO:
Nick Muick
City of Morro Bay Public Services
955 Shasta Avenue
Morro Bay, CA 93442
RESOLUTION NO. 26-07
A RESOLUTION ACCEPTING AN OFFER OF DEDICATION
OF AN EASEMENT FOR PUBLIC SIDEWALK PURPOSES
ALONG THE PARK STREET FRONTAGE OF 210 ATASCADERO ROAD
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, on July 14, 2006 a Use and Coastal Development Permit was issued for
construction of an RV Park at 210 Atascadero Road; and
WHEREAS, the Park Street frontage of 210 Atascadero requires an offer of dedication to
the City for sidewalk purposes; and
is WHEREAS, the Owner, George Salwasser, has made an irrevocable and perpetual offer
to dedicate the required six foot wide sidewalk easement to the City; and
WHEREAS, it is in the public interest to accept the offer.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro
Bay that the attached offer of dedication is hereby accepted on behalf of the public.
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular
meeting thereof held on the 29a' day of May 2007 by the following vote:
AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters
NOES: None
ABSENT: None
l
RESOLUTION NO.25-07
® RESOLUTION AWARDING THE CONTRACT FOR
MORRO BAY HARBORWALK PROJECT NO. MB-2006-S2
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, installation of bikeways in the community of Morro Bay is an
identified priority of the adopted Circulation Element to the General Plan as an
encouragement of use of alternative modes of transportation; and
WHEREAS, the Waterfront Master Plan, adopted in 1995, has as one of its
critical elements the development of bicycle and pedestrian improvements along the
Morro Bay waterfront; and
WHEREAS, in 2001 the City Council approved the Waterfront Boardwalk
Project Feasibility Study and directed staff to pursue development of the Project ; and
WHEREAS, in recognition of the regional significance and benefit of the Project,
the City has been able to secure State and Federal grant funds for the design, permitting,
and construction of the Project, and
WHEREAS, plans and specifications for Project No. MB-2006-S2: Morro Bay
® Harborwalk were prepared and bid pursuant to the Public Contract Code as the first phase
of overall waterfront pedestrian, bicycle and circulation improvements; and
WHEREAS, Souza Construction Inc, San Luis Obispo, submitted the lowest
responsible bid in the total amount of $1,690,365.00; and
WHEREAS, it is in the public interest that the Project be constructed at this time.
NOW, THEREFORE, BE IT RESOLVED, by the Morro Bay City Council that
the contract for Project No. MB-2006-S2: Morro Bay Harborwalk is hereby awarded to
Souza Construction Inc. of San Luis Obispo in the amount of $1,690,365.00; and
BE IT FURTHER RESOLVED, the Mayor is hereby authorized to execute
contract documents reflecting this action.
PASSED AND ADOPTED by the Morro Bay City Council at a regular meeting
thereof held on the 14th day of May, 2007 by the following vote:
AYES:
DeMeritt, Grantham, Peirce, Winholt
NOES:
None
ABSENT:
None
® ATTEST:
BRIDGE BAUER, City Clerk
RESOLUTION NO. 24-07
® A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MORRO BAY AMENDING COUNCIL POLICIES AND
PROCEDURES MANUAL REGARDING EX PARTE COMMUNICATIONS
THE CITY COUNCIL
City of Morro Bay, California
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
WHEREAS, to ensure that all Councilmembers are familiar with and understand
the City of Morro Bay's philosophies and policies regarding serving on the City Council,
the City of Morro Bay adopted Resolution 46-02 and its Council Policies and Procedures
Manual on August 12, 2002; and
WHEREAS, ex parte communications are contacts (e.g., letters, e-mails,
meetings) made by one party with a decisionmaker outside the presence of other
interested parties. Reliance on information received in this manner has the potential to be
unfair to other interested parties because such parties cannot rebut information of which
they are not aware. Legal concerns regarding these kinds of communications stem from
the constitutionally -based doctrine of procedural due process; and
® WHEREAS, to prevent actual and perceived abuses and to ensure that all
members of the public are given adequate opportunities to present their views and
opinions to the Council in regard to quasi-judicial decisions, the City Council hereby
amends the Council Policies and Procedures Manual to add a paragraph in regard to ex
parte communications, as follows:
1.3.9 NOTICED PUBLIC HEARINGS
During the pendency of any Public Hearing that is a quasi-iudicial
proceeding no Council member or Planning Commission member shall
engage in an ex varte communication with any "Interested Party" who
intends to influence the decision of the council or board member in a
proceeding unless the council or board member discloses the ex pane
communication in the council or board's record. "Interested Party" means
any individual with an interest in the quasi-judicial proceeding that is
greater than the general interest of the public as a whole. The term
includes but is not limited to parties involved in the proceeding, parties
that may be significantly affected by the decision, and nonprofit or public
interest organizations and associations with a special interest in the matter
"Interested Party."
El
Resolution No. 24-07
Page Two
NOW, THEREFORE, be it resolved that the City Council of the City of Morro
Bay does hereby amend Section 1.3.9 of the Council Policies and Procedures Manual to
include the above paragraph.
PASSED AND ADOPTED by the City Council, City of Morro Bay at a regular
meeting thereof held on the 14th day of May 2007 by the following vote:
AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters
NOES: None
ABSENT: None
JANICE PETERS, Mayor
ATTEST:
F �
fADGET-OBAUER, City Clerk
® RESOLUTION NO.23-07
APPROVAL OF A SUBLEASE AGREEMENT FOR A PORTION OF
LEASE SITE 53-56/53W-56W (LOCATED AT 501 EMBARCADERO)
BETWEEN ESTERO LANDING, INC. AND MARK KOCINA
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 53-56/53 W-56W; and,
WHEREAS, Estero Landing, Inc. is the lessee of said property; and,
WHEREAS, Estero Landing Inc. has requested City Council approval of a sublease
agreement for a portion of Lease Site 53-56/53 W-56W between Estero Landing Inc.; and Mark
Kocina, doing business as Morro Bay Sailing Adventures; and,
WHEREAS, Estero Landing 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 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 53-56/53 W-
56W between Estero Landing Inc.; and Mark Kocina, doing business as Morro Bay Sailing
Adventures 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 14a' day of May 2007, by the following vote:
AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters
NOES: None
ABSENT: None
..
IDGET07 BAUER, CITY CLERK
11
CONSENT TO SUBLEASE AGREEMENT
THIS CONSENT TO SUBLEASE AGREEMENT is entered into this __day of
''SJ tie. 2007 by and between l'aV- ( M\C>. Im
hereinafter referred to as TENANT and ftww c cC T\cs -
, dba, (XA 2 hereinafter referred to as
SUBTENANT and approved b e City Morro tay, California, hereinafter referred to as
CITY.
RECITALS
WHEREAS, a Master Lease was executed on 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:
1. TENANT and SUBTENANT jointly and severally guaranty that TENANT will pay to
City all of the sums required of TENANT and any sums due by reason of SUBTENANTS
® activities under the terms of the Master Lease dated hereinafter
known as "Master Lease". In the event TENANT fails to make such payment, SUBTENANT
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 SUBTENANTS portion ofrent-
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 SUBTENANTS 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
SUBTENANTS 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
SUBTENANTs failure to comply with the terms of the Master Lease.
Page / of 3
3. The tens of the sublease attached as Exhibit A shall be 6 MNAToyewr
commencing upon execution of said lease provided, however, that the tern 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, andbooks 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 B 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:
O
Percentage of Gross Rental Applicable to Permitted Use:
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 terns 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 teRris 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 unpennitted use.
6. SUBTENANT shall not alter or improve the premises or any part thereof without first
obtaining the prior written consent of CITY.
7. SUBTENANT agrees to submit a statement of previous business experiencc-and
agrees to submit current personal and business financial statements upon request and further
agrees too submit such documents as part of the CITYs consideration ' of the consent to
Sublease Agreement. SUBTENANT shall not assign, mortgage, or encumber the subleased
premises in whole or in part without the prior written consent of CITY.
8. 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
$1,000,000 per occurrence and agrees to name the. CITY OF MORRO BAY as an additional
primary insured without offset against the Cf] Y's insurance. SUBTENANT agrees to provide
the certificates of insurance 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
Page 2 of
f�J
CJ
E
Master Lease. CITY reserves the right to require reasonable increases in the liability insurance
coverage from time to time.
9. 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.
10. 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.
11. 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.
TEN T:
CITY OF MORRO BAY:
PETERS, MAYOR
SUBTENANT:
Page 3 of 3
0
EXHIBIT "B"
CONSENT TO SUBLEASE AGREEMENT
At a minimum, certain books and records shall be kept by Lessee and Sublessee such
as:
1. Pre -numbered and dated guest checks;
2. Pre -numbered sales invoices or daily cash register tapes;
3. Bank Statements;
4. Sales Tax Returns;
5. Sales Journals;
6. Cash Disbursement Journals; and
® 7. General Ledger
® RESOLUTION NO.22-07
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.)
THE CITY COUNCIL
City of Morro Bay, California
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
F 1-177); 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 borne 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 X1II, 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. 22-07
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 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 29, 2007 City
Council meeting.
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular
meeting thereof held this 14`s day of May, 2007 by the following roll call vote:
AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters
NOES: None
® ABSENT: None
ATTEST:
BRIDGETISbAUER
CITY CLERK
EXHIBIT 'A'
C17-Y OF MORRO RAY
® NORTH POINT NATURAL AREA
LANDSCAPING AND LIGHTING
MAINTENANCE ASSESSMENT DISTRICT
ASSESSMENT DIAGRAM
. v
082
.
41
NO AREA
� CNr'_Tl
-^
0-
El
NORTH POINT NATURAL AREA
f S,
7.
9. E
LEGEND
i. = LOT NUMBER
i0 = COUNT; ASSESSORS PARCEL NUMBER
6. TRACT 2110
15 1
5 21
55
ACs
4
® RESOLUTION NO.21-07
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.)
THE CITY COUNCIL
City of Morro Bay, California
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 I Oe) 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
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.)
E
Resolution No.21-07
Page 2
1. 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 29, 2007 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 10 day of May, 2007 by the following roll call vote:
0 AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters
NOES: None
ABSENT: None
ATTEST:
CITY CLERK
TPOB PARCEL, 1
Most northerly corner of
Lot 122 of Tract 1996
RF
0
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L' =
400' .
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6
® RESOLUTION NO.20-07
ASSIGNMENT OF LEASE SITE 86/86W LOCATED AT 801 EMBARCADERO,
FROM BURTON K. CALDWELL TO 801 EMBARCADERO LLC,
BURTON K. CALDWELL AND DOUG REDICAN, MEMBERS AND
APPROVAL OF A SUBLEASE AGREEMENT FOR A PORTION OF
LEASE SITE 86/86W BETWEEN 801 EMBARCADERO LLC
AND EMBARCADERO GRILL LLC
THECITYCOUNCIL
City of Morro Bay, California
WHEREAS, the City of Morro Bay is the lessor of certain tidelands in the Morro
Bay described as Lease Site 86/86W; and,
WHEREAS, Burton K. Caldwell is the lessee of said property; and,
WHEREAS, Mr. Caldwell has requested assignment of the lease agreement for
Lease Site 86/86W to 801 Embarcadero LLC, Burton K. Caldwell and Doug Redican,
Members; and,
WHEREAS, the lease agreement for Lease Site 86/86W requires City Council
approval of any sublease; and,
® WHEREAS, 801 Embarcadero LLC is also requesting approval of a sublease
agreement for a portion of Lease Site 86/86W to Embarcadero Grill LLC, Burton K.
Caldwell and Doug Redican, Members; and
WHEREAS, an assignment and assumption document is under review by the
City Attorney, the necessary sublease documents have been provided, a letter of intent
from Mr. Caldwell and Mr. Redican has been received and the application fee is paid.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Morro Bay that assignment of the lease agreement for Lease Site 86/86W from Burton K.
Caldwell to 801 Embarcadero LLC, Burton K. Caldwell and Doug Redican, Members is
hereby approved.
BE IT FURTHER RESOLVED that approval of the sublease agreement
between 801 Embarcadero LLC and Embarcadero Grill LLC, for a portion of Lease Site
86/86W, located at 801 Embarcadero is hereby approved.
BE IT FURTHER RESOLVED, that said approvals are contingent upon final
approval of the assignment and assumption documents by the City Attorney no later than
May 31, 2007.
C
® Resolution No. 20-07
Page Two
BE IT FURTHER RESOLVED, that the Mayor is hereby authorized to execute
the necessary assignment and sublease documents.
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a
regular meeting held thereof on the 23rd day of April 2007 by the following vote:
AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters
NOES: None
ABSENT: None
0 RESOLUTION NO. 19-07
APPROVAL OF SUBLEASE FOR A PORTION OF LEASE SITE 67/67W,
LOCATED AT 575 EMBARCADERO,
BETWEEN YNEZ VIOLE O'NEILL AND JAYNE BEHMAN
DOING BUSINESS AS J. H. BEHMAN GALLERY & STUDIO
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 Lease Site 67/67W; and,
WHEREAS, Ynez Viole-O'Neill, the lessee of said property; has requested approval of a
sublease agreement with Jayne Behman; and,
WHEREAS, the lease agreement for Lease Site 67/67W requires City Council approval
of any sublease; 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 TT RESOLVED by the City Council of the City of Morro
® Bay that approval of the sublease agreement between Ynez Viole-O'Neill and Jayne Behman 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 23m day of April, 2007 by the following vote:
AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters
NOES: None
ABSENT: None
J CE PETS MAYOR
BRIDGET%BAUER, CITY CLERK
E
® RESOLUTION NO. 18-07
A RESOLUTION SUPPORTING ESTABLISHMENT OF AN
URBAN FOREST MANAGEMENT PLAN AND COMPREHENSIVE
TREE PROGRAM FOR THE CITY OF MORRO BAY
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, the California Coastal Act and Morro Bay Local Coastal Plan
recognizes the importance of trees for their place in an urban setting and also their
contribution to open space, community character, and environmental health, by policies
and programs that bid the City to:
• Require new residential development to respect site constraints such as property
size and shape, ground slope, access, creeks and wetlands, wildlife habitat, native
vegetation and significant trees.
• Encourage any future walkways and bikeways to be designed in a meandering
fashion to minimize loss of existing trees and landscaping.
• Acknowledges that existing large trees, whether native to the area or exotic, can
contribute to the identity of a community or neighborhood.
® WHEREAS, Morro Bay has been designated a ".Tree City USA" by application to
the Arbor Day Foundation, and
WHEREAS, trees provide urban wildlife habitat, provide scenic beauty, create
privacy, minimize erosion and the threat of landslides, reduce the effect of pollution in
the air, mitigate climatic problems such as summer heat and high wind velocities, calm
traffic, and add value to private property; and
WHEREAS, trees require planting, maintenance, and protection in order to provide
these benefits; and
WHEREAS, on February 13, 2007, the City Council for the City of Morro Bay
unanimously agreed to begin the process of designing an Urban Forest Management Plan
for Morro Bay.
NOW, THEREFORE, BE IT RESOLVED THAT the City Council finds and
declares again and formalizes it in this resolution that it is in the best interest of the City
and its residents to establish a draft Urban Forest Management Plan by May 8, 2007,
which may include:
• A vision of how Morro Bay could look if it were to include more mature trees,
following the example of other cities that have invested in and protected their
® trees;
• Procedures that enable the City and residents to provide and ensure public safety
through prudent pruning and maintenance, including replacement of unsafe trees
with desirable trees when tree removal is unavoidable;
• Investment in an ongoing program to place utility wires underground where they
would otherwise interfere with mature and maturing trees;
• A comprehensive street tree planting program throughout the City with the
objective of providing tree -canopied streets where appropriate;
• Coordinated use of public and private resources for the purchase, planting,
trimming and removal of trees on public and private property; funding should
include retrofitting city sidewalks, streets, landscape strips and medians to safely
accommodate mature trees;
• A funding strategy based on current or potential funding sources for tree planting,
maintenance and technical assistance;
• List of the most desirable trees for Morro Bay's soil, climate, and water supply,
• Annual notification to all property owners about the value of trees to the
community, the City's tree ordinance, appropriate tree selection, planting, and
priming techniques, and other resources available to keep trees healthy;
• Analysis of the City's current tree ordinance for any necessary revisions that are
required to promote the objectives described herein; all of which to be presented
to the appropriate standing committees and then to the City Council;
• A volunteer organization that provides leadership, advice, assistance and
information to citizens and the City about tree care, local guidelines, services and
® training
• Use of the media (including the City's website and other approaches) to provide
tree -related information, educate and promote the City's tree care, planting and
best tree choice guidelines;
• An inventory of trees on public and private property, right of ways, etc. .that
identifies areas of concern, as well as significant, valued and protected trees
throughout the City;
• A preservation program for trees throughout the City.
• Standards and regulations for planting and protecting trees within construction
and new tree planting areas or zones;
• Planting of trees that will become heritage trees;
PASSED, APPROVED, AND ADOPTED, by the City Council of the City of
Morro Bay, on the 9'h day of April 2007, by the followingvpte to wit:
AYES: DeMeritt, Peirce, Winholtz, Peters
NOES: Grantham
ABSENT: None
Janice
® Bridgett uer, City Clerk
Mayor
P1
RESOLUTION NO. 17-07
APPROVAL OF AMENDMENT #1 TO THE LEASE AGREEMENT FOR
MOORING ZONE A14, LOCATED OFF SHORE OF 699 EMBARCADERO,
WITH MORRO BAY MARINA
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, the City of Mono Bay is the lessor of certain tidelands in the Morro Bay
described as Mooring Zone A1-4; and,
WHEREAS, a 10-year lease agreement for Mooring Zone Al-4 was approved by the
City Council in May 2005; and,
WHEREAS, the lease agreement names Mono Bay Marina a California Corporation as
the tenant of Mooring Zone Al-4; and,
WHEREAS, Stan and Carol Trapp of Morro Bay Marina are operating as Mono Bay
Marina a California General Partnership; and,
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Mono
® Bay that Amendment #1 to the lease agreement for Mooring Zone Al-4 between the City of
Mono Bay and the Mono Bay Marina, a California General Partnership, 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 Mono Bay at a regular
meeting held thereof on the 26a' day of March 2007, by the following vote:
AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters
NOES: None
ABSENT: None
PETERS, NYAYOR
AMENDMENT #1 TO THE LEASE AGREEMENT DATED MAY 9, 2005
® FOR MOORING ZONE A1-4
This amendment #1 (Amendment) is made and entered into as of this day of
, 2007 by and between the City of Morro Bay, a Municipal Corporation of
the State of California (hereinafter City) and Morro Bay Marina, a California General Partnership .
(hereinafter Tenant), to amend that certain lease dated May 9, 2005 known as the A1-4 Mooring Zone
Lease.
WHEREAS, the City is grantee and lessor of certain granted tidelands within the City limits including
those tidelands knows as Mooring Zone A1-4; and,
WHEREAS, on May 9, 2005 the City executed a 10-year lease for Mooring Zone A1-4 with Morro Bay
Marina, Inc.; and,
WHEREAS, Tenant has subsequently informed the City that the Morro Bay Marina business is held as
a California General Partnership; and,
WHEREAS, Tenant and City desire to amend said lease so that the Tenant is Morro Bay Marina, a
California General Partnership.
NOW THEREFORE, Tenant and City mutually agree that the Tenant for the Mooring Zone A1-4 lease
agreement is Morro Bay Marina, a California General Partnership.
® All other terms and conditions of said lease shall remain the same.
IN WITNESS WHEREOF, the parties hereto hereby execute this Amendment.
CITY OF MORRO BAY
APPROVED AS TO FORM:
Robert Schultz, City Atto ey
ATTEST:
TENANT — MORRO BAY MARINA
a California General Partnership
T. St ey Trapp
1 1,111111501
- r
T. Stanley Trapp, Tru tee
B dgett uer, City Clerk Carol W. Trapp, Trustee
The T. Stanley Trapp and Carol W. Trapp
Trust Dtd February 27, 2001 .
RESOLUTION NO. 16-07
RESOLUTION RELATING TO THE CLASSIFICATION, COMPENSATION
AND TERMS OF EMPLOYMENT OF CONFIDENTIAL EMPLOYEES
OF THE CITY OF MORRO BAY
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, in accordance with the provisions of the California Government Code
Section 3500 et. seq. and Resolution No. 74-69 of the City of Morro Bay, the City's
representatives have met and conferred in good faith pertaining to the subject of wages, benefits,
and conditions of employment with the confidential employees; and
WHEREAS, the meeting between the confidential employees and the City has resulted in
a mutual agreement and understanding to recommend that the employees represented by the
confidential unit accept all of the terms and conditions as set forth in a Memorandum of
Understanding, an agreement attached and made a part of this resolution herewith; and
WHEREAS, the City now desires to provide said salaries, benefits, and conditions to
said confidential employees of the City of Morro Bay.
® NOW, THEREFORE, BE IT RESOLVED that the Morro Bay City Council does
hereby approve and adopt in full the Memorandum of Understanding as attached and made a part
of this resolution.
PASSED AND ADOPTED by the Morro Bay City Council at a result meeting thereof
held this 12'" day of March, 2007 by the following vote:
AYES:
NOES:
ABSENT
ATTEST:
DeMeritt, Grantham, Peirce, Winholtz, Peters
None
None
[."-.?qUE1 ���jAUER, City Clerk
U
® MEMORANDUM OF UNDERSTANDING BETWEEN
THE CONFIDENTIAL EMPLOYEES
AND THE CITY OF MORRO BAY
July 2006 — June 2008
ARTICLE 1 - PURPOSE
1.1 WHEREAS, the City of Morro Bay is a municipal corporation existing under the
laws of the State of California as a general law city; and
1.2 WHEREAS, the City of Morro Bay is limited, insofar as funds are concerned,
because of a fixed tax rate; and in structure because it is a public entity rather
than a profit making business; and
1.3 WHEREAS, Confidential Employees and the City of Morro Bay recognize that
the mission and the purpose of the City is to provide for high -quality and
economical municipal services and facilities to the residents of the City of Morro
Bay.
1.4 THEREFORE, this Memorandum of Understanding is entered into as of
2007, between the City of Morro Bay, referred to as "CITY" and the
Confidential Employees, referred to as the "UNIT."
® 1.5 It is the intent and purpose of this memorandum to assure sound and mutually
beneficial working and economic relations and conditions between the parties
hereto; to provide for an orderly and peaceable method and manner of resolving
any differences which may arise and to negotiate any misunderstanding which
could arise and to set forth herein the basic and full agreement between the
parties concerning the pay, wages, hours of employment, and other terms and
conditions of employment.
ARTICLE 2 - MANAGEMENT
2.1 In order to ensure that the City shall continue to carry out its municipal functions,
programs, and responsibilities to the public imposed by law, and to maintain
efficient public service for the citizens of Morro Bay, the City continues to reserve
and retain solely and exclusively all management rights, regardless of the
frequency of use, including those rights and responsibilities set forth by law and
those City rights set forth in the City's Personnel Rules and Regulations and
including but not limited to the following:
2.1.1 To manage the City and determine policies and procedures and the right to
manage the affairs of all Departments.
MOU/=f mw 7/1/06 to 6/30/08
2.1.2 To determine the existence or nonexistence of facts which are the basis
of the management decision in compliance with State law.
2.1.3 To determine the necessity, organization, implementation, and termination
of any service or activity conducted by the City or other government
jurisdiction and to expand or diminish services.
2.1.4 To.direct, supervise, recruit, select, hire, evaluate, promote, transfer,
discipline, discharge, terminate, demote, reduce, suspend, reprimand,
withhold salary increases and benefits for disciplinary reasons, or
otherwise discipline employees in accordance with Department or City
rules, regulations, or ordinances.
2.1.5 To determine the nature, manner, means, extent, type, time, quantity,
quality, technology, standard, and level of services to be provided to the
public.
2.1.6 To require performance of other public services not specifically stated
herein in the event of emergency or disaster, as deemed necessary by the
City.
2.1.7 To lay off employees because of lack of work or funds or under conditions
where continued work would be inefficient or nonproductive or not cost
effective, as determined by the.City. is
2.1.8 To determine and/or change facilities, methods,technology, equipment,
operations to be performed, organization structure, and allocate or assign
work by which the City operations and services are to be conducted.
2.1.9 To determine method of financing.
2.1.10 To plan, determine, and manage Departments' budget which includes,
but is not limited to, changes in the number of locations and types of
operations, processes and materials to be used in carrying out all
functions and the right to contract or subcontract any work or operations.
2.1.11 To determine the size and composition of the workforce, assign work to
employees of the City in accordance with requirements determined by the
City and to establish and require compliance to work hours and changes
to work hours, work schedules, including call back, standby, and overtime,
and other work assignments, except as otherwise limited by this
agreement, or subsequent agreements.
MOU/conf mou 7/1/06 to 6/30/08
2
2.1.12 To establish and modify goals and objectives related to productivity and
performance programs and standards, including but riot limited to quality
and quantity, and required compliance therewith.
2.1.13 To determine qualifications, skills, abilities, knowledge, selection
procedures and standards, job classification, job specifications, and to
reallocate and reclassify employees in accordance with division and/or
City Rules and Regulations.
2.1.14 To determine the issues of public policy and the overall goals and
objectives of the City and to take necessary action to achieve the goals
and objectives of the City.
2.1.15 To hire, transfer intra or inter Department, promote, reduce in rank,
demote, reallocate, terminate and take other personnel action for non -
disciplinary reasons in accordance with Department and/or City Rules,
Regulations and Ordinances.
2.1.16 To determine policies; procedures and standards for recruiting, selecting,
training and.promoting employees.
1.17 To establish, implement, and/or modify rules and regulations, policies,
and procedures related to productivity, performance, efficiency, personal
appearance standards, code of ethics and conduct, safety, health, and
order, and to require compliance therewith.
2.1.18 To maintain order and efficiency in facilities and operation.
2.1.19 To restrict the activity of an employee organization on City facilities
except as set forth in this agreement.
2.1.20 To take any and all necessary steps and actions to carry out the service
requirements and mission of the City in emergencies or any other time
deemed necessary by the City and not specified above.
2.2 Nothing herein is meant to diminish City rights provided by the Government
Code.
2.3 AUTHORITY OF THIRD PARTY NEUTRAL - MANAGEMENT RIGHTS
All management rights, powers, authority and functions, whether heretofore or
hereinafter exercised, shall remain vested exclusively with the City. No third
party neutral shall have the authority to diminish any of the management rights
MOUhonf mou 7/1/06 to 6/30/08
which are included in this agreement.
2.4 Nothing herein is meant to diminish employee rights provided by the Government
Code.
ARTICLE 3 - RECOGNITION
3.1 The Confidential Unit is comprised of the following classifications:
Executive Secretary/City Clerk
Senior Accounting Technician
Personnel Technician
Account Clerk III -Confidential
The term "employee" or "employees" as used herein shall refer only to the
foregoing classifications.
3.2 Employees working on a regular basis in a classified position, but less than full-
time shall receive vacation and sick leave accruals on a pro -rated basis
commensurate with hours worked. All benefits for new hires, including insurance
benefits, will be allocated on a pro -rated basis commensurate with hours worked.
3.3 ELECTRONIC DEPOSIT
All employees shall receive their pay by electronic methods. New hires must
present account information for a checking or a savings account with an ACH
member financial institution.
ARTICLE 4 - TERM
Except as otherwise specifically provided herein, the term of this Agreement
commences on July 1, 2006 and expires and is otherwise fully terminated at midnight
on June 30, 2008.
ARTICLE 5 - ANTI -DISCRIMINATION
The CITY and UNIT mutually agree they will not discriminate against employees for the
exercise of their rights under the State of California Government Code Section 3502.
ARTICLE 6 -WORK SCHEDULE
This article is intended to define the normal hours of work and shall not be construed as
a guarantee of work per day or per week, or of days of work per week.
MOU/wnf mou 7/1/06 to 6/30/08
4
® 6.1 WORKDAY:
The normal workday shall be eight (8) hours of work in a twenty-four (24)
consecutive hour period, except in cases of emergencies. Alternative work
schedules can be implemented upon approval of the City Manager, and
providing they are not in violation of FLSA regulations.
6.2 WORKSHIFT:
Employees shall be scheduled to work on regular workshifts having regular
starting and quitting times. Except for emergencies, employees' workshifts shall
not be changed without 24 hour prior notice to the employee. Call -out or
overtime does not constitute as change in workshift.
6.3 WORKWEEK:
The normal workweek shall be five (5) workdays and two (2) consecutive days of
rest in a seven (7) day period beginning Saturday, 12:00 a.m. and ending seven
days later on Friday night at 11:59 p.m., except in cases of emergencies, or at
the specific request of an employee and approval of department head. Nothing
herein shall be construed to eliminate currently established irregular work
schedules.
6.4 OVERTIME COMPENSATION
6.4.1 All work required by the City and actually performed beyond forty (40)
® hours worked in a workweek is defined as Fair Labor Standards Act
(FLSA) overtime. FLSA overtime shall be compensated at one and one-
half (1.5) times the employee's regular rate of pay, as defined by FLSA.
6.4.2 Designated City holidays shall be considered as time worked for purposes
of computing overtime for personnel working a Monday through Friday, 8
hours a day, schedule with Saturday and Sunday as regular days off.
Employees working other schedules will accrue 8 hours holiday time and,
if working on the City designated holiday, be paid at the rate of one and
one-half (1.5) time the employee's regular rate of pay, as defined by
FLSA.
6.5 COMPENSATORY TIME OFF (CTO)
6.5.1 At the employee's option, Compensatory Time Off may be taken in lieu of
payment for overtime.
6.5.2 CTO may be accrued. An employee's CTO balance shall indicate the
amount of CTO available for employee's use. For example, if an
employee works two (2) hours of FLSA overtime and elects to accrue
CTO, the employee's CTO balance shall indicate three (3) hours.
MOU/wnf mm 7/1/06 to 6/30/08
6.5.3 An employee's CTO balance shall not exceed a maximum of forty (40)
hours. If overtime is earned which would exceed this limit, the excess .10
shall be paid in cash.
6.5.4 FLSA overtime shall be accrued and taken at one and one-half (1.5) times
the amount of overtime actually worked. For example, if an employee
works two (2) hours FLSA overtime in a workweek, the employee shall be
entitled to either two (2) hours pay at one and one-half (1.5) times the
employee's regular rate of pay, or three (3) hours of CTO.
6.5.5 All CTO requested by an employee shall be approved in advance by the
employee's Department Head.
6.6 EMERGENCIES:
6.6.1 Nothing herein shall be construed to limit or restrict the authority of
management to make temporary assignments to different or additional
locations, shifts, or duties for the purpose of meeting an emergency.
Such emergency assignments shall not extend beyond the period of said
emergency.
6.6.2 Short staffing caused solely by absences due to employees taking
approved paid leave shall not be considered an emergency.
ARTICLE 7 - VACATION LEAVE
NOTE: ALL LEAVE TIME (VACATION, SICK LEAVE, HOLIDAY, ETC.), WILL BE
TAKEN OFF ON AN HOUR FOR HOUR BASIS EQUALING EMPLOYEE ACTUAL TIME
OFF, REGARDLESS OF ACCUMULATION RATES.
7.1 During the term of this agreement, paid vacation leave shall be earned at the
following rate:.
Service Years Entitlement in Days
1 thru 2
10
3 thru 4
11
5 thru 6
12
7 thru 8
13
9 thru 10
14
11 thru 12
15
13 thru 14
16
15 thru 16
17
17 thru 18
18
MOU/conf mou 7/1/06 to 6/30/08
19 thru 20 19
21 or more 20
7.2 The standard for vacation time is eight (8) hours, equals one (1) day.
7.3 MAXIMUM ACCUMULATION
It is recognized long-standing accumulations of vacation time exist for some
employees. In order to compensate employees for this unused vacation time
and reduce this liability for the City, CITY and UNIT agree on the following policy:
7.3.1 Unused vacation leave may be carried over into the following year to a
maximum of 400 hours. Employees exceeding the 400 hour maximum as
of the pay period containing November 1 of each year will be paid off for
vacation time exceeding the 400 hour maximum. The City shall make
said payment with the pay period containing December 1 of each year.
Payment shall be computed based upon the employee's base hourly rate
of pay as of June 30 of the same calendar year.
7.3.2 Employees separating from the City are entitled to pay for accumulated
vacation based upon employee's base hourly rate of pay as of June 30
prior to separation.
ARTICLE 8 - HOLIDAYS
8.1 For the purpose of this agreement, the following days are the holidays for the
employees in this unit:
Independence Day
Labor Day
Veteran's Day
Thanksgiving Day
Day after Thanksgiving
.Christmas Day
New Year's Day
Martin Luther King, Jr.
Lincoln's Birthday
Washington's Birthday
Memorial Day
Floating Holiday
Floating Holiday
MOU/coot mou 7/ V06 to 6/30108
July 4
1st Monday in September
November 11
4th Thursday in November
Friday after Thanksgiving
December 25
January 1
Day 3rd Monday in January
February.12.
3rd Monday in February
Last Monday in May
Varies
Varies
8.2 Holidays falling on Saturday shall be observed on the preceding Friday and
holidays falling on Sunday shall be observed on the following Monday; and, shall
be considered designated holidays for purposes of overtime.
8.3 One holiday equals eight hours. Accrued holiday time may.be taken in less than
eight hour increments.
8.4 It is agreed that when a holiday is proclaimed by the Mayor of the CITY, then
each employee shall be granted time -off in the same number of equivalent work
hours. Such time -off shall be selected by the Department Head.
8.5 Employees may accumulate up to a maximum of 48 hours holiday time. Hours
of holiday time accumulated over 48 hours will be paid off. When an employee
terminates employment with the CITY, he/she shall receive pay for his/her
current holiday balance up to a maximum of 48 hours at his/her current base
hourly rate.
8.6 CITY's denial of requested holiday time off shall be neither arbitrary nor
capricious.
ARTICLE 9 - ADMINISTRATIVE LEAVE
9.1 Each member of this Unit is eligible to earn twenty-seven (27) hours of
administrative leave per fiscal year. The time during the fiscal year at which an
employee may take administrative leave shall be determined by their department
head with regard for the wishes of the employee and particular regard for the
needs of the services.
9.2 Up to 24 hours of administrative leave may be rolled over into the following fiscal
year. Upon termination, employee will be paid the pro -rated amount
commensurate with that portion of the fiscal year worked.
ARTICLE 10 - SICK LEAVE
10.1 During the term of this agreement, sick leave shall be earned at the rate of one
(1) eight -hour workday for each calendar month of service. Sick leave used shall
be actual employee time off. For example, if an employee works four (4) ten (10)
hour days per week and is off sick for one of the ten (10) hour days, ten (10)
hours shall be deducted from employee's sick leave balance. There shall be no
maximum to the amount of sick leave that an employee may accumulate.
10.2 Based on individual utilization of paid sick leave in the preceding fiscal year,
employee may convert unused accumulated sick leave into paid vacation leave
once during the following fiscal year, pursuant to the formula below:
MOU/wnf mou 7/1/06 to 6/30/O8
11
® Maximum Conversion
Sick Leave Utilization Sick Leave To Vacation Leave
0 hours 96 hours 48 hours
0 to 8 hours 72 hours 36 hours
8 1/4 to 16 hours .48 hours 24 hours
16 1/4 to 25 hours 24 hours 12 hours
Over 25 hours 0 0
At least 160 hours shall remain in employee's sick leave bank after any
conversion is authorized.
10.3 Upon the service retirement of an employee who has more than ten (10) years of
service with the CITY, said employee shall be entitled to receive payment for up
to the first ninety (90) days of his/her accrued sick leave at twenty-five percent
(25%) of the employee's rate of pay as of the date of service retirement.
Service retirement is defined as service retirement from both the CITY and the
respective retirement system thereof.
NOTE: Sick leave converted to service credit for PERS purposes cannot be
compensated (converted to dollars).
is ARTICLE 11 - RETIREMENT BENEFITS
11•A Effective the beginning of the first pay period after this agreement is approved by
the City Council, the City shall no longer contribute any portion of the unit
employee's employee contribution to the Public Employees Retirement System
(hereinafter referred to as PERS).
11.2 The amounts previously paid by the CITY were employee contributions and
were paid by the CITY to partially satisfy the employee's obligation to contribute
to PERS. Instead, it shall now be the employee's obligation to contribute the
employee's contribution to PERS.
11.3 The CITY shall add the 7% PERS Miscellaneous amount to employee's salary
and the employee shall pay her/his own contribution by payroll deduction
consistent with the provision of 414 (h) 2 of the Internal Revenue Code. It is
understood that the City will experience no significant increase in its costs as a
result of this change.
® MOU/=f mo M M6 to W30/01
9
11.4 UNIT understands and agrees that employees bear the risk of payment of any
increases in the employee contribution above the current percentage made by
action of the PERS or the state legislature.
11.5 Parties agree that CITY payment of PERS contributions are made based upon
tax treatment currently permitted by the State Franchise Tax Board and the IRS.
11.6 Should current tax treatment change, the UNIT and the employee shall hold
harmless the CITY, it's officers and agents from any and all claims or costs of
any type including but not limited to liability for back taxes, arising out of this
agreement to pay part of the employee's PERS contribution.
11.7 Should current tax treatment change, the UNIT shall have the opportunity to
meet and confer regarding any such changes,
11.8 The CITY agrees to continue providing PERS Miscellaneous employees in this
unit with the following PERS optional benefits:
2.7% at 55 plan (Section 21354)
Sick Leave Credit Option (Section 20965)
One -Year Final Compensation (20042)
Military Service Credit (21024)
Add 1959 Survivor Benefit, Level 4 (21574), effective 5/5/07 or as soon
thereafter as it can be accomplished.
11.9 If the State Legislature adopts a two-tier PERS retirement program applicable to
unit members, then all unit members employed after the effective date of such
P.E.R.S. changes shall be placed in a new retirement plan or one selected by
the CITY. Current employees at the time of plan adoption will have a one-time
option to enter the new plan; enrollment period to be selected by CITY.
ARTICLE 12 - HEALTH BENEFITS
12.1 MEDICAL INSURANCE
During the term of this Agreement, the City shall offer PERS medical
insurance plans.
12.1.1 Employees of this unit shall participate in the PERS or PERS authorized
medical insurance plans on a cafeteria style basis, with the CITY
contributing a maximum of $64.40/month to the active employee's
medical insurance, and $1.00/month to retiree medical insurance.
Effective January 2007, the contribution for active employees will
MOU/wnfmou 7/1/06 to 6/30/08
10
E
increase to $80.80. Any costs in excess of these contribution rates shall
be paid by the employee and Retiree.
12.1.2 The program described in the previous MOU in section 12.1.2, that
provided for a lump sum payment to employees to purchase health
benefits, is discontinued as of the pay period containing July 1, 2002. The
amount of money employees are receiving as of the pay -period containing
July 1, 2002 in lieu of insurance benefits (commonly known as "cash -
back") will be frozen at amounts received as of the pay -period containing
July 1, 2002. Cash -back is eliminated for employees currently using all
insurance dollars for insurance and any new hires. If a cash -back
employee changes the structure of their insurance (add dependents,
delete dependents, drop insurance with the City, change carriers, etc.)
cash -back is not an option. Cash -back will be eliminated for employees
during the open enrollment period in 2003 for the 2004 calendar year, and
in subsequent years, if said employees are required (because of
eliminated plans) to change carrier. In the event an employee receiving
cash -back is forced to make a plan change because the City changes
plans and/or ceases to contract with PERS for insurance, that employee
will maintain cash -back.
12.1.3 Effective the pay period containing January 1, 2006 Unit employees will
receive a medical insurance contribution as follows:
Employee only - up to $625/month or cost of insurance, whichever is less
Employee + 1 - up to $675/month or cost of insurance, whichever is less
Employee + family - up to $700/month or cost of insurance, whichever is
less
12.1.4 The CITY shall contribute an additional $50:00 for Employee only,
$100.00 for Employee + 1 and $125 for Employee +2 for medical
insurance, beginning January 1, 2007. The remainder of any increase
shall be paid by employee.
12.2 DENTAL AND VISION INSURANCE
12.2.1 During the term of this Agreement, the City shall offer dental/life and
vision insurance and each employee shall be required to carry both
dental/life and vision insurance for self. Life Insurance is provided at
$20,000 per employee. The following rates are effective January 1, 2007:
VISION
Employee Only $ 7.98
0 MOU/=Imou 7/1" a 6110101
DENTAL LIFE TOTALS
$37.40 $6.20 $ 51.58
Employee +1 $15.84 $99.08 $6.20 $121.12
Employee +2 $20.45 $99.08 $6.20 $125.73
12.2.2 Employee will be responsible for the following monthly amounts for
dental/life and vision beginning with the pay period including January 1,
2007:
Employee Only $2.08
Employee +1 $3.65
Employee +2 $3.90
City will pay the remaining premium for dental/life and vision
12.2.3 Any changes to the dental/life or vision premiums that occur during the
term of this Agreement shall be shared one half by the employee and
one half by the City.
12.3 Any coverage made available to future retirees beyond COBRA time
requirements shall be paid for by the retiree.
12.4 CONTRIBUTION TO OTHER PROGRAMS
City will contribute up to $1,000 per calendar year to employee's deferred
compensation or approved retiree medical savings plan on a 2:1 basis (i.e.,
employee contributes $2, City contributes $1). is
ARTICLE 13 - EDUCATION INCENTIVES
13.1 CITY agrees to reimburse the costs for job related and job -required certifications,
correspondence courses, and licenses (except Class III driver's license) upon
successful completion of the examination or course by the employee having
written authorization in advance from their department head. This shall include
application fees, examination fees, and certificate fees. Renewal fees may be
paid in advance by the CITY.
CITY agrees to provide a CITY vehicle, when available, during normal working
hours for required transportation and will permit paid time for employee to take
examinations scheduled during normal working hours. No mileage payments are
authorized for personal transportation, and time spent outside normal working
hours shall not be compensated.
13.2 COLLEGE DEGREES
13.2.1 CITY agrees to pay the following education incentives on base salary to
regular employees hired prior to January 1, 1998 who hold degrees above
MOU/oonf mou 7/1/06 to 6/30/08
12
® the minimum required in their respective classification.
Associate of Arts Degree - $600 annually
Bachelors Degree - $1200 annually
13.2.2 If an employee's job description requires an AA degree and the
employee has a Bachelor's Degree, the employee will receive only the
difference between an AA and a BA degree, or $600 annually.
13.2.3 If an employee's job description requires a degree or if an employee is
promoted to a classification that requires a degree, the employee shall not
receive education incentive pay for the required degree.
The parties agree that this section shall not be interpreted to reduce the
amount of education incentive pay that any employee hired prior to
January 1, 1998 receives, notwithstanding the fact that the employee is
promoted to a higher position requiring a particular degree, or the fact that
the job description for the employee's existing position has been revised
to require a particular degree. In the event an employee hired prior to
January 1, 1998 promotes to a position requiring a degree not required by
the lower position, or if the job description for an employee hired prior to
January 1, 1998 is revised to require a degree not previously required for
® the position, the employee shall continue to receive the amount of the
education incentive pay received in the lower position or previous job
description.
13.2.4 Based on the new job descriptions for all classifications which were
adopted in May 1995, as well as salary survey implementation over the
last three years, employees currently in positions now required to hold an
AA or BA degree according to the job description for the classification they
hold, will continue to receive an educational incentive for said degree.
Any employees hired on or after January 1, 1998 or current employees
promoted on or after January 1, 1998 to positions requiring degrees will
be subject to section 13.2.3 above.
13.2.5 Employees hired on or after January 1, 1998 shall not be eligible for this
incentive.
ARTICLE 14 - SALARIES
14.1 Wages shall remain unchanged for the term of this agreement.
14.2 All salary adjustments, including but not limited to merit increases, educational
incentives, and any other pay adjustments will take effect at the beginning of the
® MOUkonf mou 7/1/06 m 6/30/08
13
next payroll period after the scheduled effective date of the increase.
14.3 Any and all special pay incentives will be calculated on base salary.
14.4 During the term of this agreement, the CITY agrees that should a COLA or other
"across the board" salary adjustment for another employee group be awarded,
.that a similar adjustment will be.awarded the Confidential Group. Such
adjustment will be prospectively effective on the same date and in the same
percentage amount as implemented for the other bargaining unit adjustment but
in no case earlier than July 1, 2007. COLA adjustments awarded to more than
one other group will not result in additional adjustments for this group.
ARTICLE 15 - SPECIAL PAY PRACTICES
Members of this Unit who are required by their supervisor to attend meetings outside of
the normal work schedule for the purpose of taking minutes of said meetings shall be
paid a minimum of four hours at time and one-half without regard to hours actually
worked during the work week. Minutes taken at meetings during regular work hours
shall be included in employees' regular rate of pay and not compensated beyond that.
ARTICLE 16 — PROBATION
The probationary period for newly hired employees shall be twelve (12) months. The
probationary period for employees promoted to a higher classification shall be six
months in the new classification. The City shall have the option of granting a newly
hired employee regular status at any time after nine (9) months of service.
ARTICLE 17 - NO STRIKE, NO LOCK -OUT
17.1 During the term of this Agreement, the CITY will not lockout any employees nor
will the Unit/UNIT cause, authorize, advise or encourage any interruption of work
or any other concerted action. The term "interruption of work" shall mean any
work stoppage or strike (including economic and unfair labor practice strikes) or
any intentional slowdown of work. The term "other concerted action" includes
picketing or boycott activities by the UNIT.
17.2 There shall be no refusal to work on, handle or produce any materials or
equipment because of a labor dispute.
17.3 Any employee engaging in any action prohibited by this Article shall be subject to
immediate discharge or such other discipline as the CITY may assess. Such
discharge or discipline shall not be reviewable through the Grievance Procedure.
ARTICLE 18 - FULL UNDERSTANDING, MODIFICATION WAIVER
MOU/conf mou 7/1/06 to 6/30/08
14
® 18.1 This Agreement sets forth the full and entire understanding of the parties
regarding the matters set forth herein, and any other prior or existing
understanding or agreements by the parties, whether formal or informal,
regarding any such matters are hereby superseded or terminated in their
entirety.
18.2 It is agreed and understood that each party hereto voluntarily and unqualifiedly
waives its right to negotiate, and agrees that the other party shall not be required
to negotiate, with respect to any matter covered herein.
18.3 No agreement, alteration, understanding, variation, waiver, or. modification of any
of the terms or provisions contained herein shall in any manner be binding upon
the parties hereto unless made and executed in writing by all parties hereto, and
if required, approved by the City and ratified by the membership of the UNIT.
18.4 The waiver of any breach of any term, or condition of this Agreement by either
party shall not constitute a precedent in the future enforcement of all its terms
and provisions.
ARTICLE 19 - SEVERABILITY
If any provision(s) are held to be contrary to law by a court of competent jurisdiction,
such provision(s) will not be deemed valid and subsisting except to the extent permitted
by law, but all other provisions will continue in full force and effect.
Date: 3 II Y ` a -7 Date: ;P)%
CONFIDENTIAL EMPLOYEES UNIT
MOU/=f mou 7/1/06 m 6/30108
15
CITY OF MORRO BAY
obert E. Hendrix, City Manager
�nffir'ea Lueker, Assistant City Manager
RESOLUTION NO. 15-07
RESOLUTION RELATING TO THE CLASSIFICATION, COMPENSATION
AND TERMS OF EMPLOYMENT OF MANAGEMENT EMPLOYEES
OF THE CITY OF MORRO BAY
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, in accordance with the provisions of the California Government Code
Section 3500 et. seq. and Resolution No. 74-69 of the City of Morro Bay, the City's
representatives have met and conferred in good faith pertaining to the subject of wages, benefits,
and conditions of employment with the management employees; and
WHEREAS, the meeting between the management employees and the City has resulted
in a mutual agreement and understanding to recommend that the employees represented by the
management unit accept all of the terns and conditions as set forth in a Memorandum of
Understanding, an agreement attached and made a part of this resolution herewith; and
WHEREAS, the City now desires to provide said salaries, benefits, and conditions to
said management employees of the City of Morro Bay.
® NOW, THEREFORE, BE IT RESOLVED that the Morro Bay City Council does
hereby approve and adopt in full the Memorandum of Understanding as attached and made a part
of this resolution.
PASSED AND ADOPTED by the Morro Bay City Council at a result meeting thereof
held this 12'' day of March, 2007 by the following vote:
AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters
NOES: None
ABSENT: None
r
J ICE PETERS ayor
ATTEST:
4BRfDGETeBAUER, City Clerk
11
MEMORANDUM OF UNDERSTANDING BETWEEN
THE MANAGEMENT EMPLOYEES
AND THE CITY OF MORRO BAY
July 2006 to June 2008
ARTICLE 1 -PURPOSE
1.1 WHEREAS, the City of Morro Bay is a municipal corporation existing under the laws of
the State of California as a general law city; and
1.2 WHEREAS, the City of Morro Bay is limited, insofar as funds are concerned, because
of a fixed tax rate; and in structure because it is a public entity rather than a profit
making business; and
1.3 WHEREAS, Management Employees and the City of Morro Bay recognize that the
mission and the purpose of the City is to provide for high -quality and economical
municipal services and facilities to the residents of the City of Morro Bay.
1.4 THEREFORE, this Memorandum of Understanding is entered into as of , 2007
between the City of Morro Bay, referred to as "CITY" and the Management Employees,
referred to as the "UNIT."
® 1.5 It is the intent and purpose of this memorandum to assure sound and mutually
beneficial working and economic relations and conditions between the parties hereto; to
provide for an orderly and peaceable method and manner of resolving any differences
which may arise and to negotiate any misunderstanding which could arise and to set
forth herein the basic and full agreement between the parties concerning the pay,
wages, hours of employment, and other terms and conditions of employment.
ARTICLE 2 - MANAGEMENT
2.1 In order to ensure that the City shall continue to carry out its municipal functions,
programs, and responsibilities to the public imposed by law, and to maintain efficient
public service for the citizens of Morro Bay, the City continues to reserve and retain
solely and exclusively all management rights,_ regardless of the frequency of use,
including those rights and responsibilities set forth by law and those City rights set forth
in the City's Personnel Rules and Regulations and including but not limited to the
following:
2.1.1 To manage the City and determine policies and procedures and the right to
manage the affairs of all Departments.
® MOUlmg t mw 7 06 to 6 20 08
2.1.2 To determine the existence or nonexistence of facts, which are the basis of the
management decision in compliance with State law. ID
2.1.3 To determine the necessity, organization, implementation,.and termination of any
service or activity conducted by the City or other government jurisdiction and to
expand or diminish services.
2.1.4 To direct, supervise, recruit, select, hire, evaluate, promote, transfer, discipline,
discharge, terminate, demote, reduce, suspend, reprimand, withhold salary
increases and benefits for disciplinary reasons, or otherwise discipline
employees in accordance with Department or City rules, regulations, or
ordinances.
2.1.5 To determine the nature, manner, means, extent, type, time, quantity, quality,
technology, standard, and level of services to be provided to the public.
2.1.6 To require performance of other public services not specifically stated herein in
the event of emergency or disaster, as deemed necessary by the City.
2.1.7 To lay off employees because of lack of work or funds or under conditions where
continued work would be inefficient or nonproductive or not cost effective, as
determined by the City.
2.1.8 To determine and/or change facilities, methods, technology, equipment,
operations to be performed, organization structure, and allocate or assign work
by which the City operations and services are to be conducted.
2.1.9 To'determine method of financing.
2.1.10 To plan, determine, and manage Departments' budget which includes, but is not
limited to, changes in the number of locations and types of operations,
processes and materials to be used in carrying out all functions and the right to
contract or subcontract any work or operations.
2.1.11 To determine the size and composition of the work force, assign work to
employees of the City in accordance with requirements determined by the City
and. to establish and require compliance to work hours and changes to work
hours, work schedules, including call back, standby, and overtime, and other
work assignments, except as otherwise limited by this agreement, or subsequent
agreements.
MOU/mgnt mou 7 06 to 6 20 08
® 2.1.12 To establish and modify goals and objectives related to productivity and
performance programs and standards, including but not limited to quality and
quantity, and required compliance therewith.
2.1.13 To determine qualifications, skills, abilities, knowledge, selection procedures
and standards, job classification, job specifications, and to reallocate and
reclassify employees in accordance with division and/or City Rules and
Regulations.
2.1.14 To determine the issues of public policy and the overall goals and objectives of
the City and to take necessary action to achieve the goals and objectives of the
City.
2.1.15 To hire, transfer intra or inter Department, promote, reduce in rank, demote,
reallocate, terminate and take other personnel action for non -disciplinary reasons
in accordance with Department and/or City Rules, Regulations and Ordinances.
2.1.16 To determine policies, procedures and standards for recruiting, selecting,
training and promoting employees.
2.1.17 To establish, implement, and/or modify rules and regulations, policies, and
procedures related to productivity, performance, efficiency, personal appearance
standards, code of ethics and conduct, safety, health, and order, and to require
compliance therewith.
2.1.18 To maintain order and efficiency in facilities and operation.
2.1.19 To restrict the activity of an employee organization on City facilities except as
set forth in this agreement.
2.1.20 To take any and all necessary steps and actions to carry out the service
requirements and mission of the City in emergencies or any other time deemed
necessary by the City and not specified above.
2.2 Nothing herein is meant to diminish City rights provided by the Government Code.
2.3 AUTHORITY OF THIRD PARTY NEUTRAL - MANAGEMENT RIGHTS
All management rights, powers, authority and functions, whether heretofore or
hereinafter exercised, shall remain vested exclusively with the City. No third
party neutral shall have the authority to diminish any of the management rights, which
are included in this agreement.
2.4 Nothing herein is meant to diminish employee rights provided by the Government Code.
® MOU/mgmt mw 7 06 to 6 20 08
3
ARTICLE 3 - RECOGNITION
3.1 The Management Unit is comprised of the following classifications:
Commander
City Engineer
Senior Civil Engineer
Capital Projects Manager
Planning Manager
Building Official
Wastewater Division Manager
Public Services Superintendent
Information Systems Administrator
Accountant
Management Analyst
Facilities Superintendent
Senior Planner
Parks Superintendent
Support Services Manager (effective on the first day of the pay period following the
adoption of this MOU by the City Council)
The term "employee" or "employees" as used herein shall refer only to the foregoing
classifications.
3.2 Employees working on a regular basis in a classified position, but less than full-time
shall receive vacation and sick leave accruals on a pro -rated basis commensurate with
hours worked. All benefits for new hires, including insurance benefits, will be allocated
on a pro -rated basis commensurate with hours worked.
3.3 ELECTRONIC DEPOSIT
All employees shall receive their pay by electronic methods. New hires must present
account information for a checking or a savings account with an ACH member financial
institution.
ARTICLE 4 - TERM
Except as otherwise specifically provided herein, the term of this Agreement commences on
July 1, 2006 and expires and is otherwise fully terminated at midnight on June 30, 2008.
MOU/mgmt mou 7 06 to 6 20 08
1
® ARTICLE 5 - ANTI -DISCRIMINATION
The CITY and UNIT mutually agree they will not discriminate against employees for the
exercise of their rights under the State of California Government Code Section 3502.
ARTICLE 6 -WORK SCHEDULE
This article is intended to define the normal hours of work and shall not be construed as a
guarantee of work per day or per week, or of days of work per week.
6.1 WORKDAY:
The normal workday shall be eight (8) hours of work in a twenty-four (24) consecutive
hour period, except in cases of emergencies. Alternative work schedules can be
implemented upon approval of the City Manager.
6.2 WORKSHIFT:
Employees shall be scheduled to work on regular workshifts having regular starting and
quitting times. Except for emergencies, employees' workshifts shall not be changed
without 24-hour prior notice to the employee.
6.3 WORKWEEK:
The normal workweek shall be five (5).workdays and two (2) consecutive days of rest in
a seven (7) day period beginning Saturday, 12:00 a.m. and ending seven days later on
Friday night at 11:59 p.m., except in cases of emergencies, or at the specific request of
® an employee and approval of department head. Nothing herein shall be construed to
eliminate currently established irregular work schedules.
6.4 OVERTIME COMPENSATION
Employees in this unit are considered "exempt" employees within the definition of FLSA
and do not receive overtime for time worked outside of the regular work schedule.
6.5 EMERGENCIES:
6.5.1 Nothing herein shall be construed to limit or restrict the authority of management
to make temporary assignments to different or additional locations, shifts, or
duties for the purpose of meeting an emergency. Such emergency assignments
shall not extend beyond the period of said emergency.
6.5.2 Short staffing caused solely by absences due to employees taking approved paid
leave shall not be considered an emergency.
0 MOU/mgmt mm 7 06 to 6 20 08
ARTICLE 7 - VACATION LEAVE Is
NOTE: ALL LEAVE TIME (VACATION, SICK LEAVE, HOLIDAY, ETC.), WILL BE TAKEN OFF
ON AN HOUR FOR HOUR BASIS EQUALING EMPLOYEE ACTUAL TIME OFF, REGARDLESS
OF ACCUMULATION RATES.
7.1 During the term of this agreement, paid vacation leave shall be earned at the following
rate:
Service Years Entitlement in Days
1 thru 2
10
3 thru 4
11
5 thru 6
12
7 thru 8
13
9 thru 10
14
11 thru 12
15
13 thru 14
16
15 thru 16
17
17 thru 18
18
19 thru 20
19
21 or more
20
7.2 The standard for vacation time is eight (8) hours equals one (1) day.
7.3 MAXIMUM ACCUMULATION.
It is recognized long-standing accumulations of vacation time exist for some employees.
In order to compensate employees for this unused vacation time and reduce this
liability for the City, CITY and UNIT agree on the following policy:
7.3.1 Unused vacation leave may be carried over into the following year to a maximum
of 400 hours. Employees exceeding the 400 hour maximum as of the pay period
containing November 1 of each year will be paid off for vacation time exceeding
the 400 hour maximum. The City shall make said payment with the pay period
containing the December 1 of each year. Payment shall be computed based
upon the employee's base hourly rate of pay as of June 30 of the same calendar
year. At employees' option, said payment may be received in up to four equal
installments in the first year of this Agreement. At the employees' further option,
said payment may be put into deferred compensation.
7.3.2 Employees separating from the City are entitled to pay for accumulated vacation
based upon employee's base hourly rate of pay as of June 30 prior to
separation.
MOU/mgmt mou 7 06 to 6 20 08
® 7.4 A member of this unit may exercise an option to convert into cash a maximum of forty
(40) hours of accrued vacation leave each fiscal year. Such conversion shall be
computed at.the employee's current base hourly rate on an hour per hour basis.
ARTICLE 8 - HOLIDAYS
8.1 For the purpose of this agreement, the following days are the holidays for the
employees in this unit:
Independence Day
July 4
Labor Day
1st Monday in September
Veteran's Day
November 11
Thanksgiving Day
4th Thursday in November
Day after Thanksgiving
Friday after Thanksgiving
Christmas Day
December 25
New Year's Day
January 1
Martin Luther King, Jr. Day
3rd Monday in January
Lincoln's Birthday
February 12
Washington's Birthday
3rd Monday in February
Memorial Day
Last Monday in May
Floating Holiday
Varies
® Floating Holiday
Varies
8.2 Holidays falling on Saturday shall be observed on the preceding Friday and holidays
falling on Sunday shall be observed on the following Monday; and, shall be considered
designated holidays for purposes of overtime.
8.3 One holiday equals eight hours. Accrued holiday time may be taken in less than eight
hour increments.
8.4 It is agreed that when a holiday is proclaimed by the Mayor of the CITY, then each
employee shall be granted time -off in the same number of equivalent work hours. Such
time -off shall be selected by the Department Head.
8.5 Employees may accumulate up to a maximum of 48 hours holiday time. Hours of
holiday time accumulated over 48 hours will be paid off. When an employee terminates
employment with the CITY, he/she shall receive pay for his/her current holiday balance
up to a maximum of 48 hours at his/her current base hourly rate.
8.6 CITY's denial of requested holiday time off shall be neither arbitrary nor capricious.
9 MOU/mgm mw 706 m 6 20 08
ARTICLE 9 - ADMINISTRATIVE LEAVE
9.1 Each member of this Unit is eligible to earn sixty-four (64) hours of administrative leave
per fiscal year. The time during the fiscal year at which an employee may take
administrative leave shall be determined by their department head with regard for the
wishes of the employee and particular regard for the needs of the services.
9.2 Up to 24 hours of administrative leave may be rolled over into the following fiscal year.
Upon termination, employee will be paid the pro -rated amount commensurate with that
portion of the fiscal year worked.
9.3 Each member of the unit may be eligible for additional administrative leave upon
authorization from the City Manager. Such administrative leave may be granted when
employees are required to perform their responsibilities in times of immediate threat to
public health, safety and property, beyond their regular work schedule. The approval of
such time is not guaranteed, and sole discretion without appeal rights rests with the City
Manager, and is expressly eliminated from the Grievance Procedure. Recognizing the
impact of the Fair Labor Standards Act, employees in this unit will be sensitive to the
operational needs and financial limitations of the City, and will therefore attempt to limit
the use of overtime by employees in their respective areas of responsibility.
9.4 Each new member of this Unit hired during the term of this agreement shall, at time of
hire, be eligible for forty (40) hours of administrative leave. Use and accumulation of
such leave will be in accordance with the other provisions of Article 9, except in the
event that employee terminates before completing probation, administrative leave shall
not be compensated.
ARTICLE 10 - SICK LEAVE
10.1 During the term of this agreement, sick leave shall be earned at the rate of one (1)
eight -hour workday for each calendar month of service. Sick leave used shall be actua
employee time off. For example, if an employee works four (4) ten (10) hour days per
week and is off sick for one of the ten (10) hour days, ten (10) hours shall be deducted
from employee's sick leave balance. There shall be no maximum to the amount of sick
leave that an employee may accumulate.
10.2 Based on individual utilization of paid sick leave in the preceding fiscal year, employee
may convert unused accumulated sick leave into paid vacation leave once during the
following fiscal year, pursuant to the formula below:
Sick Leave Utilization
Maximum Conversion
Sick Leave To Vacation Leave
0 hours 96 hours 48 hours
0 to 8 hours 72 hours 36 hours
MOU/mgmt mou 7 06 to 6 20 08
CJ
® 8 1/4 to 16 hours 48 hours 24 hours
16 1/4 to 25 hours 24 hours 12 hours
Over 25 hours 0 0
At least 160 hours shall remain in employee's sick leave bank after any conversion is
authorized.
10.3 Upon the service retirement of an employee who has more than ten (10) years of
service with the CITY, said employee shall be entitled to receive payment for up to the
first seven hundred twenty (720) days of his/her accrued sick leave at thirty-five percent
(35%) of the employee's rate of pay as of the date of service retirement.
Service retirement is defined as service retirement from both the CITY and the
respective retirement system thereof.
NOTE: Sick leave converted to service credit for PERS purposes cannot be
compensated (converted to dollars).
ARTICLE 11 — EXEMPT TIME OFF
This policy is established in accordance with the Fair Labor Standards Act, which exempts
employees of this unit from requiring the City to pay time and one-half for time worked over 40
®hours. Effective July 1, 2002, Unit members will use accumulated leave time to take time off
for sick leave, medical appointments, personal business, vacation, etc. for time off that is less
than one full day in the same manner as issued for taking time off that exceeds one day; that
is, filling out leave forms and noting time off on time cards.
The exception to this policy is that time off less than two (2) continuous hours per day need
not be recorded. Abuses of this exception, i.e., taking''Y2 hour here and there throughout the
day, will not be allowed.
ARTICLE 12 - RETIREMENT BENEFITS
12.1 UNIT understands and agrees that employees bear the risk of payment of any
increases in the employee contribution above the current percentage made by action of
the PIERS or the state legislature.
12.2 Parties agree that CITY payment of PIERS contributions are made based upon tax
treatment currently permitted by the State Franchise Tax Board and the IRS.
12.3 Should current tax treatment change, the UNIT and the employee shall hold harmless
the CITY, it's officers and agents from any and all claims or costs of any type including
but not limited to liability for back taxes, arising out of this agreement to pay part of the
employee's PIERS contribution.
9 MOU/mgmt mou 7 06 to 6 20 08
12.4 Should current tax treatment change, the UNIT shall have the opportunity to meet and
confer regarding any such changes.
12.5 If the State Legislature adopts a two-tier P.E.R.S. retirement program applicable to unit
members, then all unit members employed after the effective date of such P.E.R.S.
changes shall be placed in a new retirement plan or one selected by the CITY. Current
employees at the time of plan adoption will have a one-time option to enter the new
plan; enrollment period to be selected by CITY.
12.6 PERS Miscellaneous Employees
12.6.1 Effective the beginning of the first pay period after this agreement is approved
by the City Council, the City shall no longer contribute any portion of the unit
employee's employee contribution to the Public Employees Retirement System
(hereinafter referred to as PERS).).
12.6.2 The amounts previously paid by the CITY were employee contributions and
were paid by the CITY to partially satisfy the employee's obligation to contribute
to PERS. Instead, it shall now be the employee's obligation to contribute the
employee's contribution to PERS.
12.6.3 The CITY shall add the 7% PERS Miscellaneous amount to employee's salary
and the employee shall pay her/his own contribution by payroll deduction
consistent with the provision of 414 (h) 2 of the Internal Revenue Code. It is
understood that the City will experience no significant increase in its costs as a
result of this change.
12.6.4 The CITY agrees to continue providing PERS Miscellaneous employees in this
unit with the following PERS optional benefits:
2.7% at 55 plan (Section 21354.5)
Sick Leave Credit Option (Section 20965)
Military Service Credit (21024)
One -Year Final Compensation (20042)
Add 1959 Survivor Benefit, Level 4 (21574), effective 5/5/07 or as soon
thereafter as it can be accomplished.
12.7. PERS Safety Employees
12.7.1 The City shall no longer contribute any portion of a PERS safety employee's
contribution to the Public Employees Retirement System (hereinafter referred to
as PERS).
12.7.2 The amounts previously paid by the CITY were employee contributions and
MOU/mgmt mou 7 06 to 6.20 08
10
were paid by the CITY to partially satisfy the employee's obligation to contribute
to PERS. Instead, it shall now be the employee's obligation to contribute the
employee's contribution to PERS.
12.7.3 CITY shall add the equivalent amount (9% PERS Safety) to employee's salary
and the employee shall pay his/her own contribution by payroll deduction
consistent with the provisions of 414 (h) 2 of the Internal Revenue Code. It is
understood that the City will experience no significant increase in its costs as a
result of this change.
12.7.4 The CITY agrees to continue to provide PERS Safety employees in this unit with
a retirement benefit program through the Public Employees Retirement System
(PERS) as follows:
Highest Single Year Compensation effective 6-22-91 (Section 20042)
Sick Leave Credit effective 6-24-89 (Section 20965)
1959 Survivor Benefit effective 6-24-89 (Section 21580)
3% @ 50 Retirement Formula effective 6-24-89 (Section 21362)
3rd Level Survivor Benefit effective 6-24-89 (Section 21573)
Military Service Credit effective 6-9-98 (Section 21024)
ARTICLE 13 - HEALTH BENEFITS
13.1 MEDICAL INSURANCE
® During the term of this Agreement, the City shall offer PERS medical insurance
plans.
13.1.1 Employees of this unit shall participate in the PERS and PERS authorized
medical insurance plans on a cafeteria style basis, with the CITY contributing a
maximum of $64.40/month to the active employee's medical insurance, and
$1.00/month to retiree medical insurance. Effective January 2007, the
contribution for active employees will increase to $80.80. Any costs in excess of
these contribution rates shall be paid by the employee and Retiree.
13.1.2 The program described in the previous MOU in section 12.1.2, that provided for
a lump sum payment to employees to purchase health benefits, is discontinued
as of the pay period containing July 1, 2002. The amount of money employees
are receiving as of the pay -period containing July 1, 2002 in lieu of insurance
benefits (commonly known as "cash -back") will be frozen at amounts received as
of the pay -period containing July 1, 2002. Cash -back is eliminated for
employees currently using all insurance dollars for insurance and any new hires.
If a cash -back employee changes the structure of their insurance (add
dependents, delete dependents, drop insurance with the City, change carriers,
etc.) cash -back is not an option. Cash -back will be eliminated for employees
during the open enrollment period in 2003 for the 2004, and in subsequent
® MOU/mgmt mm 7 06 to 6 20 08
tt
years, calendar year if said employees are required (because of eliminated
plans) to change carrier. In the event an employee receiving cash -back is forced
to make a plan change because the City changes plans and/or ceases to
contract with PERS for insurance, that employee will maintain cash -back.
13.1.3 Effective the pay period containing January 1, 2006, Unit employees will receive
a medical insurance contribution as follows:
Employee only - up to $625/month or cost of insurance, whichever is less
Employee + 1 up to $675/month or cost of insurance, whichever is less
Employee + family - up to $700/month or cost of insurance, whichever is less
13.1.4 The City shall contribute an additional $50.00 for Employee only, $100.00 for
Employee + 1 and $125 for Employee +2 for medical insurance, beginning
January 1, 2007. The remainder of any increase shall be paid by employee.
13.2 DENTAL AND VISION INSURANCE
13.2.1 During the term of this Agreement, the City shall offer dental/life and vision
insurance and each employee shall be required to carry both dental/life and
vision insurance for self. Life Insurance is provided at $20,000 per employee.
The following rates are effective January 1, 2007
VISION
DENTAL
LIFE
TOTALS
Employee Only $ 7.98
$37.40
$6.20
$ 51.58
Employee +1 $15.84
$99.08
$6.20
$121.12
Employee +2 $20.45
$99.08
$6.20
$125.73
13.2.2 Employee will be responsible for the following monthly amounts for dental/life
and vision beginning with the pay period including. January 1, 2007:
Employee Only
$2.08
Employee +1
$3.65
Employee +2
$3.90
City will pay the remaining premium for dental/life and vision
13.2.3 Any changes to the dental/life or vision premiums that occur during the term of
this Agreement shall be shared one half by the employee and one half by the
City.
13.3 Any coverage made available to future retirees beyond COBRA time requirements shall
be paid for by the retiree.
MOU/mgmt mou 7 06 to 6 20 08 -
12
® 13.4 LTD INSURANCE
The Management employees shall participate in the City -provided Long Term Disability
Insurance Plan. The City shall pay the costs for this plan.
13.5 CONTRIBUTION TO OTHER PROGRAMS
City will contribute up to $1,000 per calendar year to employee's deferred
compensation or approved retiree medical savings plan on a 2:1 basis (i.e., employee
contributes $2, City contributes $1).
13.6 WORKER'S COMPENSATION LEAVE
Any employee who is absent from duty because of an on-the-job injury in accordance
with state worker's compensation law and is not eligible for disability payments under
Labor Code Section 4850 shall be paid the difference between his/her base salary and
the amount paid by worker's compensation during the first forty-five (45) working days
of such temporary disability absence. Eligibility for worker's compensation leave
requires an open worker's compensation claim.
ARTICLE 14 - EDUCATION INCENTIVES
® 14.1 CITY agrees to reimburse the costs for job related and job -required certifications,
correspondence courses, and licenses (except Class III driver's license) upon
successful completion of the examination or course by the employee having written
authorization in advance from their department head. This shall include application
fees, examination fees, and certificate fees. Renewal fees may be paid in advance by
the CITY. This provision does not apply to continuing education requirements.
14.2 CITY agrees to provide a CITY vehicle, when available for required transportation and
will permit paid time for employee to take examinations scheduled during normal
working hours. If no city vehicle is available, City will reimburse mileage for use of
personal vehicle.
ARTICLE 15 - SALARIES
15.1 Wages shall remain unchanged for the term of this agreement
15.2 All salary adjustments, including but not limited to merit increases, educational
incentives, and any other pay adjustments will take effect at the beginning of the next
payroll period after the scheduled effective date of the increase.
15.3 Any and all special pay incentives will be calculated on base salary.
®15.4 During the term of this agreement, the CITY agrees that should a COLA or other
MOU/mgmt mou 7 06 to 6 20 08
13
"across the board" salary adjustment for another employee group be awarded, that a /fA
similar adjustment will be awarded the Management Group. Such adjustment will be ,9
prospectively effective on the same date and in the same percentage amount as
implemented for the other bargaining unit but in no case earlier than July 1, 2007.
COLA adjustments awarded to more than one other group will not result in additional
adjustments for this group.
ARTICLE 16 — PROBATION
The probationary period for newly hired employees shall be twelve (12) months. The
probationary period for employees promoted to a higher classification shall be six (6) months
in the new classification. The City shall have the option of granting a newly hired employee
regular status at any time after nine (9) months of service.
ARTICLE 17 - NO STRIKE, NO LOCK -OUT
17.1 During the term of this Agreement, the CITY will not lockout any employees nor will the
UNIT cause, authorize, advise or encourage any interruption of work or any other
concerted action. The term "interruption of work" shall mean any work stoppage or
strike (including economic and unfair labor practice strikes) or any intentional slowdown
of work. The term 'other concerted action" includes picketing or boycott activities by
the UNIT.
17.2 There shall be no refusal to work on, handle or produce any materials or equipment 40
because of a labor dispute.
17.3 Any employee engaging in any action prohibited by this Article shall be subject to
immediate discharge or such other discipline as the CITY may assess. Such discharge
or discipline shall not be reviewable through the Grievance Procedure.
ARTICLE 18 - FULL UNDERSTANDING, MODIFICATION WAIVER
18.1 This Agreement sets forth the full and entire understanding of the parties regarding the
matters set forth herein, and any other prior or existing understanding or agreements by
the parties, whether formal or informal, regarding any such matters are hereby
superseded or terminated in their entirety.
18.2 It is agreed and understood that each party hereto voluntarily and unqualifiedly waives
its right to negotiate, and agrees that the other party shall not be required to negotiate,
with respect to any matter covered herein.
18.3 No agreement, alteration, understanding, variation, waiver, or modification of any of the
terms or provisions contained herein shall in any manner be binding upon the parties
hereto unless made and executed in writing by all parties hereto, and if required,
MOUlmgmt mou 7 06 to 6 20 08
14
0 approved by the City and ratified by the membership of the UNIT.
18.4 The waiver of any breach of any term, or condition of this Agreement by either party
shall not constitute a precedent in the future enforcement of all its terms and provisions.
ARTICLE 19 - SEVERABILITY
If any provision(s) are held to be contrary to law by a court of competent jurisdiction, such
provision(s) will not be deemed valid and subsisting except to the extent permitted by law, but
all other provisions will continue in full force and effect.
Date: ��/y�0�'I Date: y/a la 7
MANAGEMENT EMPLOYEES UNIT CITY OF MORRO BAY
Rill Rnnrhor
El
® MOU/mgmt mm 7 06 to 6 20 08
15
Robe Hendrix, City M er
rr
Andrea Lueker, Asl stant City Manager
® RESOLUTION NO. 14-07
APPROVAL OF A SULBEASE FOR A PORTION OF LEASE SITE 113W,
LOCATED ADJACENT TO 1215 EMBARCADERO,
BETWEEN VIRG'S FISH'N AND ZOE ANDERS
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 I3W, located adjacent to 1215 Embareadero; and,
WHEREAS, Virg's Fish'n, is the lessee of said property; and,
WHEREAS, Darby Neil, operator of Virg's Fish'n, has requested City Council approval
of a sublease agreement for a portion of Lease Site 113W between Virg's Fish'n; and Zoe
Anders, doing business as Big Rock Charters, LLC.
WHEREAS, Virg's Fish'n 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 Ms. Anders 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 I I3 W between
Virg's Fish'n and Zoe Anders, doing business as Big Rock Charters LLC 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 March 2007, by the following vote:
AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters
NOES: None
ABSENT: None
BRIT)GETT tALFER, CITY CLERK
® RESOLUTION NO. 13 -07
APPROVAL OF AMENDMENT #3 TO THE LEASE AGREEMENT
FOR LEASE SITE 144/144W,
LOCATED AT 1287 EN1BARCADERO
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 144/144W, located at 1287 Embarcadero; and,
WHEREAS, Charles and Sandra Marciel are the lessees of said property; and,
WHEREAS, the Tenants operate the sole boat refrigeration repair dock in Mono
Bay; and,
WHEREAS, the City has proposed an amendment to the lease agreement to
provide for continued operation of the boat refrigeration repair dock, to ensure
improvement and repair of the dock facilities and to extend the lease term for 6 years.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Mono Bay that Amendment #3 to the Lease Agreement for Lease Site 144-144W is
® hereby approved and that the Mayor is hereby authorized to execute said Amendment.
PASSED AND ADOPTED by the City Council of the City of Mono Bay at a
regular meeting held thereof on the 12 day of March 2007, by the following vote:
AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters
NOES: None
ABSENT: None
BRIDGETT19AU> R, CITY CLERK
11
RESOLUTION NO. 12-07
® RESOLUTION APPROVING ENTERING INTO
COOPERATIVE AGREEMENT NO. MB-STL-01
WITH THE SAN LUIS OBISPO COUNCIL OF GOVERNMENTS
u
�J
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, the City of Morro Bay and the San Luis Obispo Council of
Governments (SLOCOG) are authorized to enter into agreements for transportation
related purposes; and
WHEREAS, the City applied to SLOCOG for grant funding for certain
individual projects; and
WHEREAS, funding was approved and a new SHA/STP Cooperative
Agreement, No. MB-STL-01, has been prepared to administer said grants; and
WHEREAS, it is in the interests of public health and welfare that the City enter
into said Agreement; and
WHEREAS, it is necessary to designate a Project Coordinator for the Agreement
and the projects referenced therein.
NOW, THEREFORE, BE IT RESOLVED by the Morro Bay City Council, that
SLOCOG SHA/STP Cooperative Agreement No. MB-STL-01 is hereby approved; and
BE IT FURTHER RESOLVED, the Director of Public Services is herewith
designated to be the City's Project Coordinator; and
BE IT FURTHER RESOLVED, the Mayor is hereby authorized to execute said
Agreement on behalf of the City.
PASSED AND ADOPTED by the Morro Bay City Council at a regular meeting
thereof held on the 12th day of March, 2007 by the following vote:
AYES:
NOES:
ABSENT:
DeMeritt, Grantham, Peirce, Winholtz, Peters
None
None
ATTEST:
BRIDGE BAUER, City Clerk
San Luis Obispo Council of Governments
® Agreement No. MB-STL- 01
SHAISTP COOPERATIVE AGREEMENT
THIS AGREEMENT, ENTERED INTO ON THE DATE BELOW STATED is between the San Luis Obispo
Council of Governments, referred to herein as "SLOCOG", and the
CITY OF MORRO BAY
a municipal corporation and
political subdivision of the
State of California, referred
to herein as the "CITY".
RECITALS
WHEREAS, SLOCOG and the CITY are authorized, pursuant to requirements of the Safe, Accountable,
Flexible, Efficient Transportation Equity Act: A Legacy for Users (STL), and State Statutes enacted by SB
45 (1997), to enter into a Cooperative Agreement for any transportation purpose within the CITY; and
WHEREAS, the SLOCOG Board approved allocation of regional Surface Transportation Program (STP)
funds for the projects identified on the attached Table 1 (summary table and project summary sheets) and
each of the individual project is herein referred to as "PROJECT"; and
WHEREAS, SLOCOG intends to exchange its apportionment of Federal Surface Transportation
Program (STP) funds for State Highway Account (SHA) funds for the PROJECTS, therefore eliminating the
non-federal match and compliance with the National Environmental Policy Act (NEPA); and
® WHEREAS, all applicable laws, regulations, and policies relating to the use of State Highway Account
(SHA) funds for the PROJECTs shall apply notwithstanding any other provisions of this Agreement; and
WHEREAS, all obligations of the CITY under the terms of this Agreement are subject to funding
appropriation by the Legislature, and the receipt and allocation of funding by SLOCOG; and
WHEREAS, This agreement supercedes Amendment #2 to Agreement No. MB-TEA21-01; and
WHEREAS, Agreement No. MB-TEA21-01 and Amendment # 1 thereto remain in full effect.
NOW, THEREFORE, in consideration of the above noted findings and considerations, the parties agree
as follows:
1) The CITY agrees to administer each PROJECT and conduct the applicable environmental process
required under the California Environmental Quality Act (CEQA) for each PROJECT.
2) The CITY agrees to advertise, open and review bids, and to award the contract for each applicable
PROJECT (or combination of projects) as needed, in accordance with State laws.
3) The CITY agrees that all phases of each PROJECT will be developed in accordance with policies,
procedures, practices, standards, regulations, and laws that apply to the CITY, Caltrans (where
appropriate), and SLOCOG including but not limited to the applicable requirements included in Exhibit
C (Attached hereto), the 2006 annual exchange agreement and subsequent STL annual exchange
agreements between SLOCOG and the State of California (Department of Transportation). If in the
judgment of SLOCOG a project may impact a street, road or highway owned or controlled by a
jurisdiction other than CITY (including without limitation the County, another city, or the State of
California), SLOCOG may require the CITY to establish a project development team (PDT) composed
® of representatives of such jurisdictions, as well as SLOCOG.
SLOCOG SHA/STP General Cooperative Agreement page 1
4) The CITY agrees to construct each PROJECT in accordance with the plans and specifications of the
CITY (and Caltrans when PROJECT involves state highway facilities), and in accordance with the
conditions of funding adopted by SLOCOG.
5) The CITY agrees to maintain the facilities constructed, improved, or otherwise modified.
6) The CITY agrees to utilize, for each PROJECT, an amount of Regional or Urban SHA funds equal to
or less than that adopted by SLOCOG, and that SLOCOG's total obligation shall not exceed the
amounts shown in Table 1 unless a greater amount has been authorized in advance in writing by
SLOCOG.
7) The CITY agrees to account for all costs for the PROJECTS to be paid by SLOCOG pursuant to this
Agreement and agrees to perform all the reimbursable work for each project according to the billing
period identified in the project summary sheets.
8) After the opening of bids on applicable PROJECTS, the CITY shall notify SLOCOG of any cost
overruns or underruns to the original cost estimate. The following will be assumed and reflected in
SLOCOG's SHA accounting spreadsheets:
a) If less funding than what was programmed is required for a PROJECT, the cost savings will be
made available for reprogramming into another CITY project as approved by SLOCOG.
b) If more funding than what was programmed is required for a PROJECT, the CITY will be solely
responsible for providing the additional funding, which can be comprised of various non -regional
funding sources, including cost savings from other CITY SHA projects.
9) The CITY may submit an invoice for reimbursement of funds expended for each PROJECT no more
than once a month, using the attached Reimbursement Request Form (Exhibit A). All Payments will
be prorated between CITY and SLOCOG based on the agreed percentages of funding, as adopted by
SLOCOG and listed on each project summary sheet. All invoices must contain the following:
a. SHA PROJECT number and name
b. A brief description of work accomplished during the billing period.
C. A copy of the consultant's bill to the CITY (if applicable).
d. Amount expended by the CITY during the billing period, with evidence of funds expended (e.g.
a copy of a CITY check to consultant or accounting documentation, etc.)
e. Amount requested for reimbursement for the billing period
10) SLOCOG agrees to reimburse the CITY within 30 days of receipt of a completed reimbursement
request form (Exhibit A) with all applicable attachments and signatures or as funds become available
on a "1" come, 1" served" basis, an amount expended by the CITY during the invoices' billing period
less the aforesaid proration. If a PROJECT receives both Regional and Urban State Highway Account
funding (referred to in Exhibits hereto as "RSHA" and "USHA" respectively), reimbursements shall be
made on a pro rata basis from each source for SLOCOG's share. SLOCOG's total obligation for each
PROJECT cost shall not exceed the amount shown in Table 1," unless SLOCOG has in writing
authorized a greater amount per adopted SLOCOG policy.
11) Within two months of each PROJECT's completion and all work incidental thereto, the CITY must
provide SLOCOG certification in the form provided in Exhibit B hereto, of completion in accordance
with the provisions in this Agreement, and a final invoice containing those items listed above. In the
event that final project costs are less than those listed on Table 1, hereto , the funds shall be
reallocated in accordance with item #8 above.
12) If this project has been paid for either entirely, or in part with Regional SHA funds, and CITY, or any of
its officials, chooses to publicly memorialize participation in said project, then CITY shall also
memorialize SLOCOG's financial participation in said project in a manner agreeable to SLOCOG.
This paragraph shall apply to, but is not limited to, signage during construction, representation at
dedications and placement of plaques or other objects of memorialization, whether at or near the
project site or not. -
13) The CITY grants to the State of California and/or SLOCOG access to the CITY's books and records
for the purpose of.verifying that SHA funds paid are properly accounted for and the proceeds are
expended in accordance with the tens of this Agreement. All documents shall be available for
SLOCOG SHA/STP General Cooperative Agreement page 2
inspection by authorized Caltrans and/or SLOCOG agents at any time during the PROJECT
® development and for a four-year period from the date of completion, or for one year after the audit is
completed or waived by Caltrans and/or SLOCOG, whichever is later.
14) Upon completion of all work under this Agreement, ownership and title to all materials will
automatically be vested in the CITY and no further agreement will be necessary to transfer ownership
to the CITY.
15) If existing public and/or private utilities conflict with the PROJECT construction or violate the CITY's
encroachment policy (as applicable), the CITY shall make all necessary arrangements with the
owners of such utilities for their protection, relocation or removal. The CITY shall review the plans for
protection, relocation or removal. If there are costs of such protection, relocation, or removal which
the CITY must legally pay, the CITY shall pay the cost of said protection, relocation or removal, plus
cost of engineering, overhead and inspection. If any protection, relocation or removal of utilities is
required, such work shall be performed in accordance with CITY policies and procedures.
16) The CITY shall defend, indemnify and save harmless SLOCOG, its officers and employees from all
and any claims, demands, damages, costs, expenses, judgments, attorneys' fees or any liability
arising out of this Cooperative Agreement to the performance or attempted performance of the
provisions hereof, or any project referred to in the Exhibits hereto. Nothing contained in the foregoing
indemnity provision shall be construed to require CITY to indemnify SLOCOG against any
responsibility of liability in contravention of Civil Code section 2782.
17) If the CITY transfers its risk connected with design or construction of this project to independent
contractors, CITY agrees to use its best efforts to obtain the independent contractor's inclusion of
SLOCOG as an indemnitee and in any insurance procured by such independent contractor(s) for the
project, to name SLOCOG as an additional insured.
18) Both the CITY and SLOCOG shall designate a Project Coordinator who shall represent the respective
® agencies and through whom all communications between the parties to this agreement shall occur.
19) Both parties agree that if, in the course of carrying out the PROJECT, there is a disagreement among
the Project Coordinators over the direction of the project, the matter will be forwarded through a three
step conflict resolution process. First, resolution will be attempted between the CITY Manager and
SLOCOG Executive Director. If a dispute continues, a determination shall be made by the SLOCOG
Executive Committee, and, if required, final determination by the full SLOCOG Board.
20) Nothing in the provisions of this Agreement is intended to create duties, obligations, or rights for third
parties not signatories to this Agreement or affect the legal liability of either party of the Agreement by
imposing any standard of care with respect to the maintenance of local roads different from the
standard of care imposed by law.
21) No alteration or variation of the terms of this Agreement shall be valid unless made in writing and
signed by the parties thereto, and no oral understanding or agreement not incorporated herein or in
the attached Table 1 shall be binding on any of the parties thereto.
22) This Agreement may be terminated or provisions contained therein may be altered, changed, or
amended by mutual consent, in writing, of the parties hereto.
23) Prior to award of a contract for any PROJECT, SLOCOG may terminate the applicable PROJECT in
the Cooperative Agreement by written notice, provided SLOCOG pays the CITY for all PROJECT -
related costs reasonably incurred by the CITY prior to termination. Also, prior to award of a contract
for any PROJECT, the CITY may terminate the applicable PROJECT in the Cooperative Agreement
by written notice, provided the CITY pays SLOCOG for all costs reasonably incurred by SLOCOG
prior to termination.
SLOCOG SHA/STP General Cooperative Agreement page 3
SIGNATURES:
CITY
By:
Date
ATTEST: (�
By:
Bridged, Baue City Clerk
APPROVED AS TO FORM AND LEGAL EFFECT:
By:
Robert Schultz, City Attorney
Date:
SAN LUIS OBISPO
COUNCIL OF GOVERNMENTS
By:
Ronald L. De Carli, Executive Director
Date:
By:
Wyatt CaS SLOCOGCounsel
Date: l (g —L,)G
SLOCOG SHA/STP General Cooperative Agreement page 4
0
2006 Regional Transportation Improvement Program
®San Luis Obispo Region (in $000s)
Morro Bay, City of
MPO ID: 22300000111 RSTP #: PRMB05 RTIP #: 07-03
TITLE: N. Main St- Bikepath
DESCRIPTION: N. Main St. Bikepath
CHANGE REASON: New project
TOTAL
PRIOR
06/07 07108, '. 08109 09/10
10/111
PE RW CON
RSTP-RSHA - Prior
$30
I 1 S30
530
TOTAL
$30
$30
-_ -
$30
COMMENTS: Project delayed; assess status December 2006. Amount Billed SO; Balance $30,000
MPO ID: 22300000069 RSTP #: STLMB01U RTIP #: 07-00
TITLE: Morro Bay Highschool Bike Path
DESCRIPTION: Construct class I bike path I
CHANGE REASON: Carry over from 04-17
TOTAL
I PRIOR
06107 07108 - 08109 ..09110
10/11
PE RW CON
RSTP-USHA
S35
$35
- -
S35
TOTAL
$35
S35
- _
$35
COMMENTS:
MPO ID: 22300000067 RSTP #: STLMB02U RTIP #: 07-00
TITLE: ADA Improvements
DESCRIPTION: Construct ADA Improvements
CHANGE REASON: Carry over from 04-17
TOTAL
I PRIOR
.06107 07/08 08109 09/10
10/111
PE RW CON
RSTP-USHA
$68
1 $68
-
S68
TOTAL
$68
$68
-
$68
COMMENTS:
MPO ID: 22300000042
TITLE: South Bay Blvd Rehab
DESCRIPTION: Rehab So. Bay from Chorro Crk Bridge to SR 1
CHANGE REASON: Carry over from 04-17
RSTP #: STLMB03U RTIP #: 07-00
TOTAL
PRIOR
1 06/07' 07108
08109 091101
101111
PE RW CON
RSTP-USHA
$137
S137
$137
TOTAL
$137
$137
$137
COMMENTS: PSSR received.
Page 1 Tuesday, October 31. 2006
2006 Regional Transportation Improvement Program
San Luis Obispo Region (in $000s)
Morro Bay, City of
MPO ID: 22300000016 RSTP #: STLMB04U; STLM804R RTIP #: 07-00
TITLE: Highway 1/41 Main/Radcliffe Intersection Imps,
DESCRIPTION: This project will study the intersection of Main and Radcliff for possible improvements. Possible
improvements will include realigning roads in the area to improve operations and safety on Main Street and
at the 1/41 intersection to the north. The City of Morro Bay plans to move forward with this project ASAP.
As a condition of approval, the regional funds must be matched 50150 with non -regional funds. .
CHANGE REASON: Carry over from 04-17
TOTAL
PRIOR
>-' 106/07 .07/08 <-t08109
10/11
PE RW CON
RSTP-RSHA
$15
RSTP-USHA
$15.:
$15
$15
TOTAL
$30.;
$30
$30
COMMENTS:
MPO ID: 22300000070 RSTP M STLMB06U RTIP #: 07-00
TITLE: Install Pacific Coast Bike Route Signs
DESCRIPTION: Install bike routes signs within City Limit of Morro Bay
CHANGE REASON: Carry over from 04-17
TOTAL
PRIORI
06107 .. 07108_•: ' 08109*_ , 09/101
101111
PE RW CON
RSTP-USHA
$10
$10
;,� � �
$10
TOTAL
I $to
$10
-- -
$10
COMMENTS:
Page 2 Tuesday, October 31, 2006
1
11
Table 3 (STIP Funds) - 2007 Regional Transportation Improvement Program
®San Luis Obispo Region (in $000s)
Morro Bay, City of
11
0
MPOID: 11300000153 PPNO: 0972 RTIP#-
07-00
TITLE: Quintana Rd/Morro Bay Blvd Roundabout
DESCRIPTION: In Morro Bay at Quintana Road, Morro Bay Blvd and Route 1 on and off ramp INS). Construct a single
roundabout intersection to replace the six -legged intersections.
CHANGE REASON: Carry over from 04-00, Change schedule/ timeline, Revise Funding - Increase Funding
TOTAL
PRIOR
06/07 ' 07108 08/09 " 09110
10/11
PE RW
CON
Loc Funds - City Funds
S34
S34
-
$34
STIP-RIP (S/O)
$885
$160
$725
S160
$725
STIP-RIP Prior(S/O)
$473
S473
S473
TOTAL
$1.392
S194
S1,198 _ ..
$160
$1,232
COMMENTS: Per April 2006 CTC action
MPO ID: 11300000154 PPNO: 0973
RTIP g:
07-00
TITLE: Waterfront Boardwalk improvements
DESCRIPTION: In the city of Morro Bay at the waterfront embarcadero near Morro Rock.
Construct a pedestrian
boardwalk and bike path.
CHANGE REASON: Carry over from 04-13, Revise Funding - Add New Funding Source
TOTAL
PRIOR
06107 07/08 08/o909/10
10/11
PE
RW
CON
Loc Funds - Local Trans. Funds
S500
S500
-
S16
S484
Loc Funds - Private Funds
$1,400
$1,400
S7.400
STIP-RIP(TE)
S1.619
S719
S900.
S170
S1,449
TOTAL
E3,519
$2,619
E900 - -
$186
$1,400
E7,933
COMMENTS: Additional TE funds per 2006 STIP
Page 1 Wednesday, September 20, 2006
® RESOLUTION NO.11-07
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MORRO BAY, CALIFORNIA AMENDING AND ESTABLISHING
GUIDELINES FOR MAJOR VEGETATION REMOVAL, REPLACEMENT
AND PROTECTION
THE CITY COUNCIL
CITY OF MORRO BAY, CALIFORNIA
WHEREAS, the Morro Bay General Plan/Local Coastal Plan recognizes the importance that
Major Vegetation adds to the character and beauty of the City; and
WHEREAS, the Mono Bay Municipal Code and the Coastal Act require a Coastal
Development Permit for the "removal or harvesting of major vegetation other than for agricultural
purposes" but do not include a definition of "major vegetation" in the regulations; and
WHEREAS, the City of Mono Bay has therefore determined that reasonable regulation of
the removal, replacement and protection of major vegetation is necessary to promote the public
® health, safety and general welfare of the community; and
WHEREAS, in 1995 the City Council of the City of Mono Bay adopted Major Vegetation
Removal, Replacement and Protection Guidelines; and
WHEREAS, based on changes in City organizational structure and experience in
implementing the 1995 Guidelines, there is a need to update and refine the current Guidelines; and
WHEREAS, the City of Mono Bay recognizes that because of the known benefits of major
vegetation on undeveloped properties and properties capable of further subdivision, these properties
should be protected from unregulated removal of major vegetation; and
WHEREAS, the City of Mono Bay also recognizes that residents of existing single family
homes should be able to determine to a certain extent the nature of their private landscaped
surroundings.
NOW, THEREFORE, be it resolved that the City Council of the City of Morro Bay hereby
amends and makes revisions to the Major Vegetation Removal, Replacement and Protection
Guidelines that were previously adopted by the City Council as follows:
r�1
LJ
Resolution 11-07 Page 2 of 4
Major Vegetation Removal, Replacement
and Protection Guidelines
A. Pursuant to 17.12.199.G. Major Vegetation Shall Be Defined As:
Natural riparian vegetation within fifty (50) feet from the top of a creek bank, coastal
bluff, beach, or sand dune.
2.
Natural riparian vegetation within fifty (50) feet from a wetland as defined by the
U.S. Fish and Wildlife Service and the Coastal Commission Statewide Interpretive
Guidelines.
3.
Threatened or endangered plant species including trees as defined by the
Environmental Protection Agency and the California Natural Diversity Data Base.
4.
Vegetation growths providing a significant habitat base for threatened or endangered
animal species.
5.
City -designated or voluntarily identified landmark trees.
6.
Any tree with a trunk that is a minimum of six (6) inches in diameter (i.e., 18.8" in
circumference) at four and one half feet (4 1/2) vertically above the ground, or, any
tree with multiple trunks that includes at least one trunk with a minimum diameter of
six (6) inches in diameter at four and one half feet (41 /2) vertically above the ground
or with trunks that have an aggregate diameter of at least twenty (20) inches at four
and one half feet (4 1/2) vertically above the ground.
®
7.
Exceptions which are NOT considered major vegetation:
a. Crop trees and/or ornamental edible fruit trees are not considered major
vegetation and shall not require a Coastal Development Permit for removal.
b. Diseased, damaged and/or aged trees that pose an imminent danger to persons
and/or property shall not require a Coastal Development Permit for removal.
If the tree to be removed is diseased and/or hazardous, a report by a certified
arborist stating that the tree presents a hazard and must be immediately
removed shall be submitted to the Public Services Department.
C. Single family residential homes shall not require a Coastal Development
Permit for the removal of less than three trees in any twelve (12) month
period.
B. Coastal Development Permit and Findings Required:
1. Removal of major vegetation as defined in Section A shall require a Coastal
Development Permit which shall be processed as follows:
a. If the major vegetation removal is within non -appeal jurisdiction, the City
shall process an Administrative Coastal Development Permit (the
administrative permit process shall be changed to a "Minor Coastal
Development Permit' procedure at the time the City implements such
® procedure).
b. If the major vegetation removal is within appeal or original jurisdiction, a
regular Coastal Development Permit shall be required.
2
Resolution 11-07 Page 3 of 4
11
C.
10
E.
2. For a Coastal Development Permit to issue, the following findings must be made:
a. That the major vegetation removal, as mitigated, will not significantly impact
any threatened or endangered plant or animal habitat area;
b. That reasonably calculated mitigation measures are in place to avoid
dangerous soil erosion or instability resulting from the removal.
3. In the event that a Coastal Development Permit is denied under the terms of these
guidelines and said denial is the sole cause that the property owner is reasonably
unable to develop the property, the City may waive the provisions of this ordinance in
such a manner as to make reasonable development possible.
Vegetation Replacement Policy:
I . All citizens of Morro Bay and all tree owners presenting Removal Notification shall
be encouraged to participate in the Voluntary Tree Program. Replacement vegetation
may be planted on site, on City property as directed by the Public Works Department,
or on property designated in the "Trees Wanted List," which shall consist of property
owners who would like trees planted on their property and are willing to commit to
maintain the planted trees until established; the City will provide the property owner
with printed information on the City -sponsored Voluntary Tree Program.
2. All major vegetation removed with a Coastal Development Permit (Minor,
Administrative, or Regular) shall be subject to a mandatory replacement program as
follows:
Fees:
a. Trees shall be replaced at a ratio of two 5-gallon trees or one 15-gallon tree
for every tree removed.
b. Tree removal within an Environmentally Sensitive Habitat (ESH) zone, a
wetland, or a stream corridor shall be replaced at a ratio of three 5-gallon
trees or two 15-gallon trees for every tree removed.
C. Replacement vegetation may be planted on the applicant's site or other
privately held lands with the property owner's permission, or presented to the
City to plant on public lands.
A fee equal to the City's cost of such permit processing shall be charged for all
Coastal Development Permits.
Fines and Penalties:
I . Any unpermitted major vegetation removal undertaken in an ESH zone, a wetland, or
a stream corridor shall be replaced at a ratio of five 15-gallon trees for every tree
removed.
2. Any unpermitted tree removal undertaken in an area other than an ESH zone,
wetland, or a stream corridor shall be replaced at a ratio of two 15-gallon trees for
every tree removed.
Resolution •1 I -07
Page 4 of 4
3. If the City finds a professional person or company responsible for the illegal removal
of major vegetation, the City shall notify the appropriate certifying body and/or
licensing board to inform them of the name of the professional responsible for the
unauthorized removal and the circumstances of the violation.
F. Maior Vegetation Plan for Proposed Construction:
1. All proposed construction plans shall show existing major vegetation.
2. If Staff finds that the proposed construction will encroach on existing major
vegetation, the applicant shall:
a. Have the option of requesting a permit to remove the vegetation; or
b. Retain the vegetation with recommendations from Planning and Building
staff for protective plans.
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting
thereof held on the 12th day of March 2007 by the following vote:
AYES:
NOES:
ABSENT:
ATTEST:
LI
DeMeritt, Grantham, Peirce, Winholtz, Peters
None
None
RESOLUTION NO. 10-07
RESOLUTION OF INTENTION TO APPROVE AN AMENDMENT TO THE
CONTRACT BETWEEN THE BOARD OF ADMINISTRATION CALIFORNIA
PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL,
CITY OF MORRO BAY
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, the Public Employee's Retirement Law permits the participation of
public agencies and their employees in the Public Employees' Retirement System by the
execution of a contract, and sets forth the procedure by which said public agencies may
elect to subject themselves and their employees to amendments to said Law; and
WHEREAS, one of the steps in the procedure to amend this contract is the
adoption by the governing body of the public agency of a resolution giving notice of its
intention to approve an amendment to said contract, which resolution shall contain a
summary of the change of the proposed in said contract; and
WHEREAS, the following is a statement of the proposed change:
To provide Section 21574 (Fourth Level of 1959 Survivor Benefits) for local
miscellaneous members.
NOW, THEREFORE, BE IT RESOLVED that the governing body of the
above agency does hereby give notice of intention to approve an amendment to the
contract between said public agency and the Board of Administration of the Public
Employee's Retirement System, a copy of said amendment begin attached hereto, as an
"Exhibit" and by this reference made a part hereof.
PASSED AND ADOPTED as a resolution of the Morro Bay City Council at a
meeting held this 26`s day of February 2007 by the following vote:
AYES:
NOES:
ABSENT:
DeMeritt, Grantham, Peirce, Winhnitz Peter
None
None
C, 1-*&a it l &,.,
BRIDGE BAUER, City Clerk
2
® RESOLUTION NO.09-07
A RESOLUTION OF THE CITY COUNCIL OF MORRO BAY
ACCEPTING THE FINAL MAP FOR AN APPROVED 7-LOT RESIDENTIAL
SUBDIVISION KNOWN AS TRACT 2602
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, on August 8, 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 June 6, 2005; and
WHEREAS, the Council did approve the tentative map for Tract 2602, 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 2602.
PASSED AND ADOPTED by the City Council of the City of Morro Bay, California, at
a regular meeting held on the 26's day of February 2007, by the following vote:
AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters
NOES: None
ABSENT: None
ATTEST:
® Eli-
BRIDGETt BAUER, City Clerk
RESOLUTION NO. 08-07
® RESOLUTION APPROVING ADOPTION OF
CALIFORNIA PUBLIC EMPLOYEES'
DEFERRED COMPENSATION PLAN
CITY COUNCIL
City of Morro Bay, California
WHEREAS, the City of Morro Bay desires to establish an additional deferred
compensation plan for the benefit of its employees; and
WHEREAS, the Board of Administration of the California Public Employee's
Retirement System ("CalPERS") has established the California Public Employees Deferred
Compensation Plan (the "CalPERS Plan") which may be adopted by a governmental employer
the employees of which are public employees; and
WHEREAS, the City of Morro Bay believes that the CalPERS Plan and the investment
options available thereunder will provide valuable benefits to its employees; and
WHEREAS, the Board has appointed State Street Bank and Trust Company ("State
Street") to perform administrative services under the CalPERS Plan and to act as the Board's
agent in all matters relating to the administration of the CalPERS Plan;
NOW, THEREFORE, BE IT RESOLVED that the City of Morro Bay adopts the
Ca1PERS Plan for the benefit of its employees and authorizes and directs the (Title of Board
Delegate) to execute the attached adoption agreement on behalf of the City of Morro Bay, and to
provide State Street with such information and cooperation as may be needed on an ongoing
basis in the administration of the CalPERS Plan. A copy of this resolution, the agreement and
any attachments thereto shall be on file in the office of the City Clerk.
PASSED AND ADOPTED as a resolution of the Morro Bay City Council at a meeting
held this 26`s day of February, 2007 by the following vote:
AYES:
DeMeritt, Grantham, Peirce, Winholt
NOES:
None
ABSENT:
None
Evs—C w
p. 1sp T)c
BRIDGETVBAUER, City Clerk
RESOLUTION NO.07-07
RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA, AUTHORIZING THE MID -YEAR
2006/07 AMENDMENTS TO THE CITY'S OPERATING AND CAPITAL
IMPROVEMENT BUDGETS
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 day-to-day business activities; and
WHEREAS, the City Council adopted the original Operating and Capital Improvement
Budgets on June 12, 2006, by Resolution No. 25-06; and
WHEREAS, the City Council deems it necessary to amend said budgets.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro
Bay, California:
1. The operating budgets of the City of Morro Bay are amended by additional revenues
p and appropriations as show on the attached schedule; and
® 2. An additional $40,000 in the Promotions and Advertising budget as directed.
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular
meeting thereof held on the I P day of February 2007, by the following vote:
AYES: Grantham, Peirce, Peters
NOES: DeMeritt, Winholtz
ABSENT: None
ATTEST:
BRIDGET OAUER, City Clerk
El
® RESOLUTION NO.06-07
RESOLUTION RELATING TO THE CLASSIFICATION, COMPENSATION
AND TERMS OF EMPLOYMENT OF FIRE EMPLOYEES
OF THE CITY OF MORRO BAY
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, in accordance with the provisions of the California Government Code
Section 3500 et. seq. and Resolution No. 74-69 of the City of Mono Bay, the City's
representatives have met and conferred in good faith pertaining to the subject of wages, benefits
and conditions of employment with the Morro Bay Fire Fighters Association; and
WHEREAS, the meetings between the Morro Bay Fire Fighters Association and the City
have resulted in a mutual agreement and understanding to recommend that the employees
represented by the Morro Bay Fire Fighters Association accept all of the terms and conditions as
set forth in a Memorandum of Understanding, an agreement attached and made a part of this
resolution herewith; and
WHEREAS, the City now desires to provide said salaries, benefits and conditions to said
fire employees of the City of Morro Bay.
® NOW, THEREFORE, BE IT RESOLVED that the Morro Bay City Council does
hereby approve and adopt in full the Memorandum of Understanding for the period July 1, 2006
through June 30, 2007 as attached and made a part of this resolution.
BE IT FURTHER RESOLVED that the City Manager and Assistant City Manager are
hereby authorized to execute the Memorandum of Understanding on behalf of the City.
PASSED AND ADOPTED by the Morro Bay City Council at a meeting thereof held this
22od day of January, 2007 by the following vote:
AYES: DeMcritt, Grantham, Peirce, Winholtz, Peters
NOES: None
ABSENT: None
J P1110E PETERS Mayor
ATTEST:
BRIDGE AUER, City Clerk
RESOLUTION NO.05-07
® A RESOLUTION APPROVING SUBMISSION OF
STATE TRANSIT ASSISTANCE GRANT APPLICATIONS
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, in April 2006, the San Luis Obispo Council of Governments (SLOCOG) Board
approved the Transportation Development Act allocations for fiscal year 200612007. which includes
Population Based State Transit Assistance funds; and
WHEREAS, the State Transit Assistance is derived from the statewide sales tax on gasoline
and diesel fuel and the apportionment approved by the SLOCOG Board in April 2006 was based on
funding estimates from the State of California; and
WHEREAS, in August 2006, the amount of Population Based State Transit Assistance funds
to the San Luis Obispo region was updated after the Sate of California budget was adopted in June
2006, increasing by over $1,500,000 due to higher fuel prices and the State of California not
appropriating State Transit Assistance funds to balance its budget; and
WHEREAS, the Population Based State Transit Assistance funding is disbursed through the
SLOCOG Board; and
® WHEREAS, the SLOCOG Board in December 2006 approved a "Call for Projects" to
determine how to allocate the $1,500,000 in increased Population Based State Transit Assistance
funds through a competitive project application process; and
WHEREAS, the project applications were due to the SLOCOG on January 11, 2007.
NOW, THEREFORE, BE IT RESOLVED that the Morro Bay City Council approves of
the grant applications for the projects listed in Exhibit A and their submission by the City Manager,
or his appointed designee, to the San Luis Obispo Council of Governments.
PASSED AND ADOPTED by the Morro Bay City Council at a regular meeting thereof held
on the 22°d day of January 2007 by the following vote:
AYES:
NOES:
ABSENT:
DeMeritt, Grantham, Peirce, Winholtz, Peters
None
None
ATTEST:
BRIDGETT QAUER, City Clerk
Exhibit A
® State Transit Assistance Applications
Capital Proiects
Dial -A -Ride 2002 Vehicle Replacement
Estimated project cost: $65,000
Rural Transit Fund grant: $44,000
State Transit Assistance grant: $217000
Dial -A -Ride 2003 Vehicle Replacement
Estimated project cost: $65,000
Rural Transit Fund grant: $52,000
State Transit Assistance grant: $13,000
Dial -A -Ride 2005 Vehicle Replacement
Estimated project cost: $69,000
Rural Transit Fund grant: $13,800
State Transit Assistance grant: $55.200
Dial -A -Ride Purchase and Installation of Generator
Estimated project cost: $95,000
Rural Transit Fund grant: $76,800
State Transit Assistance grant: S l %200
® Transit Manager Computer Equipment Replacement
Estimated project cost: $3,000
State Transit Assistance grant: $3,000
Operating Projects
Reinstatement of Dial -A -Ride Driver Lunch Coverage
Estimated project cost: $45,557 (18 month pilot project)
State Transit Assistance grant: $45,557
Sunday Dial -A -Ride Service
Estimated project cost:
State Transit Assistance grant:
Dial -A -Ride Second Saturday Bus
Estimated project cost:
State Transit Assistance grant:
$34,332 (18 month pilot project)
$34,332
$34,332 (18 month pilot project)
$34,332
Dial -A -Ride Later Weekday and Saturday Hours
Estimated project cost: $41,679 (18 month pilot project)
State Transit Assistance grant: $41,679
RESOLUTION NO.04-07
A RESOLUTION APPROVING MORRO BAY GARBAGE SERVICE
INTERIM YEAR RATE ADJUSTMENT APPLICATION
AND ADJUSTING SOLID WASTE COLLECTION RATES
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, 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 Waste Management Rates"; and
WHEREAS, also pursuant to Article 8.4, adjustments for cost of living increases are to he
received in the two years between base years; and
WHEREAS, the last base year collection rates were approved by the City Council on
January 13, 2005; and
® WHEREAS, on November 2, 2006, MBGS Controller Tom Martin submitted an interim rate
adjustment application that was later revised and resubmitted on January 9, 2007 in conformance
with the franchise agreement and rate setting manual requesting a 2.58% increase to solid waste
collection rates.
NOW THEREFORE BE IT RESOLVED, by the City Council of the City of Morro Bay
the approval of Morro Bay Garbage Service's Interim Year Rate Adjustment Application to increase
the solid waste collection rates by 2.58% 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, 2007.
PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular
meeting thereof held on the 22"d day of January 2007 by the following vote:
AYES: DeMeritt, Grantham, Peirce,
NOES: None
ABSENT: None
ATTEST:
® BRI� 1 UER, City Clerk
Winholtz, Peters
® Exhibit A
CITY OF MORRO SA Y
SINGLE FAMILY and MULTI -UNIT RESIDENTIAL (4 units or leas)
VOLUME -BASED RATES
MINI -CAN SERVICE
S8.18 per month for one 19 gallon wastewheeler container collected once each week
ECONOMY RATE
$13.09 per month for one 32 gallon wastewheeler container collected once each week
STANDARD RATE
$26.18 per month for one 64 gallon wastewheeler container collected once each week
PREMIUM RATE
539.27 per month for one 96 gallon wastewheeler container collected once each week
SERVICE AWAY FROM THE STREET CURB
$7.13 per month in addition to above service level for each service requested (garbage,recycling, greenwaste)
EXTRA CHARGES
$6.53 EXTRA GARBAGE additional charge per 33 gallon can or equivalent volume per collection (minimum 1 ran)
r�z
OVERFILLED WASTE WHEELER LiD MUST BE FLAT
EXTRA RECYCLING adGtlonsl charge per 33 gallon can or equMdlent volume per wCection (mimmun 1 ran)
EXTRA GREENWASTE ade tonal charge per 33 gallon cah or aquivalem volume per mreaion (miraman t can)
SWITCH WASTE WHEELER SIZES MORE THAN ONCE PER 12 MONTHS
® $
41.63 per white good, couch, or hide -a -bed (once a month)
$11.90 per mattress, boxspdng, or small chair, TV, microwave
Proposed Rate Schedule for Integrated Solid Waste Services effective 3-1-2007
Fj
E
CITY OF MORRO BAY
Exhibit A
2.58% AVERAGE ACROSS THE BOARD INCREASE -COMMERCIAL
FOR INTEGRATED SOLID WASTE ACTIVITIES
EFFECTIVE 3-1-2007
COMMERCIAL WASTE WHEELERS (PER MONTH)
size
of
COLLECTIONS PER WEEK
WW
1 2 3 4
5
6
7
32 GALLON
$27.02
$52.75
$68.99
$85.25
$11 E298
$136.71
$162.94
64 GALLON
$39.22
$68.99
$100.15
$135.34
$169.20
5197.83
$233
96 GALLON
$5275
$92.00
$135.34
$180.03
$219.30
5268.03
$323.41
Additional charge per can per collection:
COMMERCIAL DUMPSTER CONTAINERS PER MONTH
Size of
container
COLLECTIONS PER WEEK
(cubicyards)
1 2 3 4 5 6 7
1
$66.551
$103.111
$132.881
$166.741
$192.481
$239.851
$362.37
1.5
$81.43
$134.26
$180.30
$229.05
$275.2
$327.89
$481.02
2
$97.70
$170.80
$229.05
$291.32
$356.32
5421.31
$605.06
3
$126.141
$229.051
$322.471
$409.121
$529.64
1 $610.871
$825.26
4
$166.741
$310.281
$430.781
$575.681
$720.551
S815.331
$1,060.34
The rates shown above include the monthly corainer rental fee and are the same for bins
and ganwoods, when volume is identical.
UNSCHEDULED EXTRA COLLECTIONS FOR COMMERCIAL CUSTOMERS
$17.15 1 cubic yard (minimum charge)
$
Proposed Rate Schedule for Integrated Solid Waste Services effective 3.1.2007
25.74
1.5 cubic yards
$34.31
2 cubic yards
$51.45
3 cubic yards
$68.60
4 cubic yards
® Exbibit A
CITY OF MORRO BAY
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 112 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 $55.81. 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 AT 2W. OF GARBAGE RATES
COMMERCIAL DUMPSTER CONTAINERS (PER MONTH)
Sim of
container
COLLECTIONS PER WEEK
cubicyards)
1 2 3 4 5 6 7
1
INCLUDED`
$25.78
1 $33.22
$41.69
$48.12
$59.96
$90.59
1.5
INCLUDED`
$33.57
$45.08
$57.26
$68.77
$81.97
$120.26
2
INCLUDED`
$42.70
$57.26
$72.83
$89.08
$105'.33
$151.27
3
INCLUDED'
$57.261
$80.62
$102.28
$132.41
1 $152.721
$206.32
4
INCLUDED*
$T7.57
1 $107.70
$143.92
S180.141
$203A3
I $265.09
I ne rates shown above mdude the monthly container rental tee and are the same for bins
® and garwoods, when volume is identical.
` There is a $5.93 per mordh rental fee if you want a blue steel bin
The $5.93 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 whitetcolored paper is available at $48.99 per has 5.929124
STYROFOAM COLLECTION
Styrofoam is no longer collected for recycling. It should be thrown away as trash.
Proposed Rate Schedule for Integrated Solid Waste Services effective 3-1-2007
E
0 RESOLUTION NO.03-07
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF MORRO BAY, CALIFORNIA, PROVIDING
WORKERS' COMPENSATION COVERAGE FOR
IDENTIFIED CITY VOLUNTEERS PURSUANT TO THE
PROVISIONS OF SECTION 3363.5 OF THE LABOR CODE
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, the City of Morro Bay finds its best interest will be served by utilizing
identified volunteers in the provision of certain government services; and
WHEREAS, said volunteers should be eligible for workers' compensation coverage
while on duty;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Morro Bay
does hereby:
I. Find and determine that the public interest in best served by providing workers'
Is
compensation coverage for City volunteer workers as specified by the City Manager; and
2. Provide eligibility for said volunteers for workers' compensation benefits which will be
applicable during the time the person actually performs volunteer services, provided,
however, that the rights of volunteers shall be limited as set forth in the Labor Code.
PASSED AND ADOPTED by the Morro Bay City Council at a meeting thereof held this
8i° day of January, by the following vote:
AYES: DeMeritt, Grantham, Peirce, Winholtz, Peters
NOES: None
ABSENT: None
ATTEST:
0 awork r mp.wc oluntmnm 12 06
RESOLUTION NO.02-07
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY,
AUTHORIZING THE EXAMINATION OF
TRANSACTIONS (SALES) AND USE TAX RECORDS
THE CITY COUNCIL
City of Morro Bay, California
WHEREAS, pursuant to Ordinance No. 519, the City of Morro Bay entered into a contract
with the State Board of Equalization to perform all functions incident to the administration and
collection local transactions and use taxes; and
WHEREAS, the City Council of the City of Morro Bay deems it necessary for authorized
representatives of the City to examine confidential transactions and use tax records of the State
Board of Equalization pertaining to transactions and use taxes collected by the Board for the City
pursuant to that contract; and
WHEREAS, Section 7056 of the California Revenue and Taxation Code sets forth certain
requirements and conditions for the disclosure of Board records and establishes criminal penalties
for the unlawful disclosure of information contained in, or derived from, the transactions and use
tax records of the Board; and
® WHEREAS, Section 7056 of the California Revenue and Taxation Code requires that any
person designated by the City shall have an existing contract to examine the City's sales and use tax
records.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MORRO BAY
HEREBY RESOLVES AS FOLLOWS:
Section 1. That the Finance Director or other officer(s) or employee(s) of the City (hereafter
referred to as City) designated in writing by the Finance Director to the State Board of Equalization
(hereafter referred to as Board), is hereby appointed to represent the City with authority to examine
transactions and use tax records of the Board pertaining to transactions and use taxes collected for
the City by the Board pursuant to the contract between the City and the Board. The information
obtained by examination of Board records shall be used only for purposes related to the collection
of the City transactions and use taxes by the Board pursuant to the contract.
Section 2. That the City's existing contract with Hinderliter, del Llamas and Associates is
hereby amended to add thereto the examination of the transactions and use tax records of the City
pertaining to transactions and use taxes collected for the city by the Board.
11
Resolution No. 02-07
® Page Two
Section 3. That Hinderliter, de Llamas and Associates is hereby designated to examine the
transactions and use tax records of the City pertaining to transactions and use taxes collected for the
City by the Board. The entity designated by this section meets all of the following conditions:
a) Has an existing contract with the City to examine those transactions and use tax
records;
b) Is required by that contract to disclose information contained in, or derived from,
those transactions and use tax records only to the officer(s) or employee(s) authorized under Section
1 of this resolution to examine the information;
c) Is prohibited by that contract from performing consulting services for a retailer
during the term of that contract; and
d) Is prohibited by that contract from retaining the information contained in, or derived
from, those transactions and use tax records after that contract has expired.
The information obtained by examination of Board records shall be used only for purposes related
to the collection of City's transactions and use taxes by the Board pursuant to the contract between
is the City and Board.
Section 4. The City Clerk of the City is hereby directed to certify adoption of this Resolution
and to send a copy to:
State Board of Equalization
Local Tax Section MIC:27
P.O. Box 942879
Sacramento, CA 94279-0001
PASSED AND ADOPTED by the City of Morro Bay on the 8th day of January 2007.
AYES:
NOES:
ABSENT:
DeMeritt, Grantham, Peirce, Winholtz, Peters
None
None
Bridgett Uier, City Clerk
C
RESOLUTION NO.01-07
® 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
THE 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, per California Government Code Section 53646(a)(2), all local agency governing
boards may render to the legislative body of that local agency a statement of investment policy, which the
legislative body of the local agency shall consider at a public meeting and shall also consider any change in
the policy.
WHEREAS, per California Government Code Section 53607, the legislative body may delegate
investment authority and responsibility to the Treasurer and/or designated staff for a period of one year
® subject to annual review and monthly review of transactions initiated by the designee; and
WHEREAS, the City of Morro Bay first adopted its current investment policy in 1996, and refined
in during 1997 and 1998; and
WHEREAS, the investment policy presented has been modified based on the 2003 guidelines
prepared by the California Debt and Investment Advisory Committee (CDIAC) and the Government Finance
Officers Association (GFOA).
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that the
Statement 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 8 °
day of January, 2007, by the following vote to wit:
AYES: DeMeritt, Grantham, Peirce,
NOES: None
ABSENT: None
Is Bridgett Ba r, City Clerk
Winholtz, Peters
CA
I
Janice Peters, Mayor
® E
PURPOSE
CITY OF MORRO BAY
INVESTMENT POLICY
JANUARY 2007
This investment policy establishes the practices and procedures to be used in managing the City of
Morro Bay's (City) portfolio in accordance with the requirements of the State of California
Government Code and the guidelines provided by the California Debt and Investment Advisory
Commission (CDIAC) and the Government Finance Officers Association (GFOA).
SCOPE OF THE POLICY
This policy governs the investment of money that is not required to meet the immediate needs of
the City.
LEGAL AUTHORITY
® Govemment Code Sections., California Government Code Sections 53600 to 53609 govern the
investment of local agency funds.
Legislative Changes. Any applicable legislative actions will be acted on as of their effective dates
and will be incorporated into the policy annually, specifying the California Government Code
sections that have been added, deleted or amended.
OBJECTIVES
The City Treasurer will consider the following factors in priority order when assessing investment
opportunities:
Safety.- The primary objective is the preservation of principal. Capital losses will be
avoided, whether from default or erosion of market value, meaning that the City will not
sell or trade an investment because of market fluctuation. The two types of risk to be
minimized are:
1. Credit risk — the risk that an issuer or other counterparty to an investment will not fulfill
its obligations; and
2. Interest rate or market risk — the risk that changes in interest rates will adversely affect
the fair value of an investment.
® Liquidity.- The second objective is the liquidity of the portfolio. The portfolio should remain
sufficiently fle)dble to enable the City to meet the operating requirements that are
1
reasonably anticipated. In order to sure liquidity, the investment policy must recognize
® that calculating cash flows are the basis of any good investment strategy. Meeting the
daily cash flow demand goes hand -in -hand with meeting the City's liquidity needs.
E J
11
Yeld.• The third objective, behind safety and liquidity, is attaining a market rate of return
throughout the budgetary and economic cycles.
While managing the portfolio, the treasurer and designated staff will strive to maintain public trust
by av6iding any transactions that might impair public confidence in the City. When selecting
investment instruments, the treasurer and designated staff will remain cognizant of any social and
policy considerations that have been established and defined in this policy.
GENERALSTRATEGY
The treasurer and designated staff may follow a passive or active investment strategy. Passive
investment policies adhere to the investment goal of holding investments to maturity. Active
investment strategy is the buying and selling of investments to achieve a certain benchmark
objective. Great care, coupled with the advice of a fiscal agent, should be followed with an active
investment policy.
The City, as stated above in the Objectives section under Safety, follows the passive investment
strategy of holding investments to maturity.
STANDARD OF CARE
Prudent Investor Standard- The prudence standard for trust investing traces back to Harvard
College v. Amory, 26 Mass. (9 Pick.) 446 (1830). Judge Samuel Putnam stated that trustees should
"observe how men of prudence, discretion and intelligence manage their own affairs, not in regard
to speculation, but in regard to the permanent disposition of their funds, considering
the probable income, as well as the probable safety, of the capital to be invested."
This standard will be followed by the treasurer and designated staff.
Ethics and Conflict of Interest: The treasurer and designated staff should refrain from personal
business activities that could conflict with the proper execution of the investment program or
which could impair their ability to make impartial decisions.
Delegation of Authority.• The following positions and corresponding City personnel are delegated
the power to invest the funds of the City:
Mayor..........................................
City Manager ..............................
Finance Director/Treasurer........
Accountant ................................
Lead Account Technician...........
Account Clerk III ........................
Janice Peters
Robert E. Hendrix
Susan Slayton
Joyce Bunting
Laurie Goforth
Cristie Brazzi
These designations may change with the annual affirmation of this policy. Each delegate is
required to adhere to the requirements set forth in the investment policy.
2
® SAFEKEEPING AND CUSTODY
Third -party safekeeping. Ownership of the City's investment securities will be protected through
third -party custodial safekeeping. The custodian will provide the City with a safekeeping receipt or
monthly, itemized statement. Exceptions to this requirement are made for certificates of deposit,
money market funds and investment pools.
Intemal Controls. These are designed to ensure that the assets of the City are protected from
theft, loss, or misuse. Such internal controls are in place include:
1. Control of collusion;
2. Separation of duties;
3. Safekeeping of securities; and
4. Written confirmation of telephone transactions and wire transfers.
The City will separate the person who authorizes or performs the transaction from the person or
people who ultimately record or otherwise account for the transaction to achieve separation of
duties.
Delivery vs. Payment- All investment transactions should be conducted using standard delivery vs.
payment procedures. In delivery vs. payment, the purchaser pays for the securities when they are
delivered either to the purchaser or his/her custodian, and ensures that securities are deposited in
an eligible financial institution prior to the release of funds.
® AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
The City will only conduct business with approved banks, savings and loans, credit unions, and
securities brokers/dealers. A list of financial dealers and institutions is to be maintained.
Broker/dealers and institutions must meet all requirements established by federal and.state law.
SUITABLE AND AUTHORIZED INVESTMENTS
Authorized Investment Types., The City, by virtue of California Government Code Sections 53600 —
09, has the ability to invest in the numerous types of instruments. The City has looked at its
goals, objectives, and standards of care in establishing a list of authorized investment types that
also meet statutory requirements. Those types of investment instruments that meet the criteria
for the City are:
1. Securities of the U. S. Government, or its agencies;
2. California's Local Agency Investment Fund (LAIF) pool;
3. FDIC Insured Certificates of Deposit;
4. Bankers' Acceptances (not exceeding 40% of portfolio/max maturity 180 days);
5. Money Market funds whose portfolios consist of the foregoing (not exceeding 20%
of portfolio);
6. Collateralized Certificates of Deposit of $100,000 or more (not exceeding 25% of
the portfolio); and
® 7. Passbook savings accounts
Prohibited Investment Types: In addition to a listing of authorized investments, California
® Government Code Section 53601.6 prohibits local agencies from investing in the following
instruments:
1. Inverse floaters;
2. Range notes or mortgage -derived, interest -only strips;
3. Any security that could result in zero interest accrual if held to maturity;
4. Stock;
5. Futures or options; and
6. Repurchase agreements and reverse repurchase agreements.
There may be additional investment instruments in which the City does not want the treasurer to
invest, and those will be defined in future investment policies.
INVESTMENT PARAMETERS
Diversification of Investments: The City may choose to impose more stringent restrictions or
further restrictions on other investment instruments, depending on its investment goals and risk
tolerances, than those proposed in the California Government Code Sections 53600 - 09. The City
has indicated those authorized investments with the appropriate percentage of the portfolio
allowed as follows:
1. Money market funds not to exceed 20%;
2. Collateralized Certificates of Deposit not to exceed 25%;
® 3. Securities of any one issuer, except those obligations of the U.S. government, U.S.
governmental agencies, and U.S. government -sponsored enterprises, not to exceed
5%; and
4. Mutual funds not to exceed 10%.
Maximum Maturity.- California Government Code Section 53601 lists the maximum maturity for
any instrument as five (5) years. The exception to this time frame is made for investments with
LAIF only.
Minimum Credit Requirements: The City has chosen to follow the California Government Code
Section 53601 that sets the minimum credit rating required for certain investment instruments as
follows:
1. Short-term debt shall be rated at least "A-1" by Standard & Poor's Corporation, "P-
1" by Moody's Investors Service, Inc., or "F-1" by Fitch Ratings. If the issuer of
short-term debt has also issued long-term debt, this long-term debt rating shall be
rated at least "A," without regard to +/- or 1, 2, 3 modifiers, by Standard & Poor's
Corporation, Moody's Investors Service, Inc., or Fitch Ratings.
2. Long-term debt shall be rated at least "A," without regard to +/- or 1, 2, 3
modifiers, by Standard & Poor's Corporation, Moody's Investors Service, Inc., or
Fitch Ratings.
Maximum Weighted Average Maturity of a Porffo/io: As part of the monthly portfolio performance
report that is provided to the City Council, a weighted average maturity (WAM) of the portfolio is
4
calculated. While there are no requirements under state law for a maximum WAM of a portfolio,
® CDIAC's Local Agency Investment Guidelines suggest that local agencies include and monitor WAM
to arrive at an acceptable range for future implementation of a maximum benchmark.
PORTFOLIO MANAGEMENT ACTNM
Active or Passive Portfolio Management.• In active portfolio management, treasurers buy and sell
securities based on how to maximize portfolio values over a given timeframe. In passive portfolio
management, the goal is to match a market rate of return (usually a benchmark). Weighing the
pros and cons of each strategy in light of staff resources and investment, the City has chosen to
follow a passive portfolio management strategy.
Competitive Bidding: Investments are purchased in the most cost effective and efficient manner
utilizing approved brokers/dealers on all investment transactions.
Reviewing and Monitoring of the Portfolio: The portfolio is to be reviewed on a monthly basis to
ensure that the investments are being properly tracked and reported.
Portfolio Adjustments: If the portfolio demonstrates non-compliance with the investment policy,
the treasurer and designated staff may hold the affected securities to maturity to avoid losses;
however, the treasurer may choose to rebalance the portfolio earlier to bring it back into
compliance only if the portfolio will not suffer any losses for selling the investment prior to
maturity.
® Performance standards: The objective of investing is to obtain a rate of return throughout
budgetary and economic cycles, commensurate with investment risk constraints and cash flow
needs.
REPORTING
Reporting Methods: On a monthly basis, the investment portfolio will be provided to the City
Council and will list the following components per Government Code_ Section 53646 (b):
1. Types of investment;
2. Issuer names;
3. Dates of maturity;
4. Par amounts;
5. Dollar amounts;
6. Market values;
7. Descriptions of programs under the management of contracted parties;
8. A statement of compliance with the investment policy; and
9. A statement of the ability to meet cash flow needs for six months.
Governmental Accountings standards Board (GASB) statement No. 31 - Marking to Market. The
City's portfolio is to be marked -to -market for the monthly investment report provided to the City
Council and at minimum, annually for the financial statements. Market values are to be obtained
from a reputable and independent source and disclosed to the City Council in the monthly written
® report. The independent source of pricing should not be one of the parties to the transaction
being valued. Such an independent source could include a broker or other financial institution that
was not a counterparty to the transaction, the custodial bank if the bank was not a counterparty to
® the transaction, publicly available publications such as The Wait Street Journal, or other pricing
services for which a separate fee would be paid.
This is consistent with GASB Statement No. 31, which requires that governmental entities report
investments at fair value, and with the California Governmental Code, which also requires market
values of investments be reported.
Calculation of Yield and Costs: All yield rates on investments will be presented at book value.
Invesbnent Policy Adoption, Review, and Amendment: The investment policy will be reviewed,
amended, and presented to the City Council annually at the beginning of the calendar year. The
review should ensure that the policy is consistent with the overall objectives of preservation of
principal, liquidity, and return, and is in conformance with the law, financial and economic trends,
and the cash flow needs of the local agency.
Definitions or Glossary of Terms: This investment policy includes a definition section (Appendix A)
in order to establish a common vocabulary between the treasurer and designated staff, the City
Council, and the public.
11
APPENDIX A — INVESTMENT POLICY TERMINOLOGY
® The following are examples of terminology commonly found in California City investment policies.
The inclusion of these sections provides clarity to investment policies and better enables readers to
understand important concepts.
Authorized Financial Dealers and Institutions: List of financial institutions authorized to
provide investment services.. May also include a list of approved security broker/dealers with which
the City can do business. These institutions and broker/dealers are usually selected by their ability
to add value to the investment process. Some criteria to consider when choosing an approved
broker/dealer include creditworthiness, expertise, and the products in which the financial dealer or
institution is familiar. GFOA suggests that all entities qualifying for investment transactions provide
audited financial statements; proof of industry group (National Association of Securities Dealers
[NASD]) certification; proof of state registration; completed broker/dealer questionnaire; and
certification of having read, understood, and agreeing to comply with the investment policy.
Bankers' Acceptance: A draft, bill or exchange accepted by a bank or trust company. The
accepting institution guarantees payment of the bill, as well as the issuer.
Certificate of Deposit: A time deposit with a specific maturity evidenced by a certificate.
Collateralization: Process by which a borrower pledges securities, property, or other deposits
for the purpose of securing the repayment of a loan and/or_ security. California Government Code
Section 53601 requires that all repurchase agreements be secured by eligible securities with a
® market value of 102 percent or greater of the funds borrowed. GFOA recommends and California
Government Code requires that full collateralization be required on non-negotiable certificates of
public deposit.
Delegation of Authority: The granting of authority to manage the investment program to
designated officials. Such authority is usually derived from code sections, ordinance, charters, or
statutes. Government Code Section 53607, for example, allows the City Council to delegate, for a
one-year period, its authority to invest or reinvest funds or to sell or exchange securities held by
the local government.
Delivery vs. Payment: A type of securities transaction in which the purchaser pays for the
securities when they are delivered either to the purchaser or his/her custodian. It ensures that
securities are deposited in an eligible financial institution prior to the release of funds. A third -party
custodian as evidenced by safekeeping receipts should hold securities.
Diversification: A process of investing assets among a range of security types by sector,
maturity, credit rating, and call type or structure. This reduces exposure to risk by combining a
variety of investments, which are unlikely to all move in the same direction. GFOA suggests
diversifying a city's investment portfolio by limiting investments to avoid exposure to a specific
sector, limiting investment in securities with higher credit risks, investing in instruments with
varying maturities, and continuously investing a portion of the portfolio in readily available funds
such as a local government investment pool, money market funds, or overnight repurchase
agreements to ensure that appropriate liquidity is maintained in order to meet ongoing obligations.
7
Ethics and Conflicts of Interest: The California Political Reform Act of 1974 requires certain
® designated public officials at all levels of government to publicly disclose their private economic
interests and requires all public officials to disqualify themselves from participating in decisions in
which they have a financial interest. As part of this requirement, local agencies are required to
adopt and promulgate a Conflict of Interest Code, with certain required sections. To further
promulgate this Code, investment policies sometimes include language requiring the ethical
conduct of investment officers and statements regarding refraining from personal business activity
that could conflict with the proper execution and management of the investment program or that
could impair their ability to make impartial decisions. To avoid conflicts, GFOA recommends that
investment officers disclose material interests in financial institutions with which they do business,
disclose personal financial interests that could be .related to the performance of the investment
portfolio, and refrain from undertaking personal investment transactions with the same individual
with whom business is conducted on behalf of the local government.
Exemption:. Language that grandfathers prohibited investments into the investment polity
because they may have been held in the portfolio prior to the prohibition. When these
investments mature or are liquidated, the money should be reinvested as provided by the policy
and the exemption language should be removed from the policy.
FDIC: Federal Deposit Insurance Corporation is a federal agency that insures bank deposits up to
$100,000 per deposit.
General Objectives: The section of an investment policy that illustrates the three main
objectives (safety, liquidity, and yield), in order of priority, of a good investment policy. In addition
® to these commonly included objectives, there are a myriad of other objectives for which an
investment policy can strive. Safety is the preservation of principal. Liquidity is how easily an
investment may be redeemed for cash. Yield is the current rate of return on a security generally
expressed as a percentage of its current price. As per California Government Code Section
53600.5, safeguarding the principal of the funds under its control should be the primary objective
of local agencies. Liquidity also should be a principal objective of a portfolio. The portfolio should
maintain sufficient liquidity to meet operating requirements. To accomplish this, a local agency can
structure a portfolio so that investments mature when cash is needed and also by investing in
liquid securities with an active secondary market. Yield should be the last objective an investment
portfolio should strive for, behind safety and liquidity. Since there are many different ways for yield
to be calculated, the investment policy should specify how it is to be calculated.
Internal Controls: The system used to ensure that the local government assets are protected
from loss, theft, or misuse. Such a system should provide a reasonable assurance that such loss,
theft, or misuse can be prevented. Examples include separation of duties, delegation of authority,
and documentation. GFOA suggests that an internal control system address the following points:
control of collusion, separation of transaction authority from accounting and recordkeeping,
custodial safekeeping, avoidance of physical delivery of securities, clear delegation of authority to
subordinate staff, written confirmation of transactions for investments and wire transfers, and
development of a wire transfer agreement with the lead bank and third -party custodian.
Investment Parameters: Specified restrictions on investments to limit the amount of risk in a
portfolio. These parameters may be specified in the California Government Code; however, the
® local agency may choose to further restrict investment options depending on its risk tolerance.
[3
Such parameters may include diversification of investments types, percentages, or dollar limits per
® issuer and setting maximum maturities.
Investment Types: A recitation of the investment types the local agency has been given
authority in which to invest. This may be a list of securities allowable under California Government
Code Section 53601 et seq., and may be further restricted by the agency itself. For a description of
the allowable California local agency investment instruments, please see CDIAC's latest version of
its Local Agency Investment Guidelines, available on its website at www.treasurer. ca.gov/cdiac.
GFOA recommends the investment in the following types of securities: U.S. government securities
and agency obligations; highly -rated certificates of deposit, bankers' acceptances, commercial
paper; investment -grade state and local government obligations; repurchase agreements
securitized by the previously -mentioned securities; SEC -regulated, dollar -denominated money
market.mutual funds; and local government investment pools.
Liquidity: A liquid asset is one that can be quickly and easily converted into cash without loss in
value.
Market Value: The price at which a security is trading at a point in time. Selling an investment
at market value can result in a gain ($500,000 investment sold for $515,000 = $15,000 gain) or
loss ($500,000 investment sold for $498,000 = $2,000 loss). Gains and losses are dependent on
changes in the current rate of interest as compared to the interest rate of the investment that is
being considered for sale.
Marking -to -Market: The act of recording the price or value of a security to reflect its current
® market value rather than its book value.
Maximum Maturities: Maturity.is the date on which the security or obligation is redeemed by
the issuer in exchange for cash. California law states that local governments cannot invest in
instruments with terms remaining to maturity in excess of five years unless they receive express
authority from their legislative bodies to do so. Local governments should attempt to match
investment maturities with anticipated cash flow requirements. There is no requirement under
California law for local governments to have a weighted average maturity (WAM) restriction for
their portfolio, although CDIAC's Local Agency Investment Guidelines suggests that local agencies
consider adopting a WAM restriction.
Performance Standards: The criteria by which a stated goal is measured. An investment
portfolio's performance and risk exposure should be evaluated against appropriate benchmarks on
a regular basis. One standard that should be strived for should be a market rate of return in a
given interest rate environment.
Policy Considerations: The local ordinances or other requirements that place restrictions on the
policy. Local governments should consider what should be exempted from the policy and also
when, or under what circumstances, the policy should be amended.
Pooling of Funds: A statement in the investment policy that except for certain restricted or
.special funds, cash balances should be consolidated from all funds to maximize investment
earnings.
® Portfolio: The collection of investment instruments held.
9
® Prudent Investor Standard: Legal maxim that all investments should be made with care, skill,
prudence and diligence under the circumstances then prevailing, which persons of prudence,
discretion, and intelligence exercise in the professional management of their business affairs, not
for speculation, but for investment, considering the probable safety of their capital as well as the
probable income to be derived.
Reporting: Presentation of evaluation data or other information to communicate processes,
roles, and results. Investment policies should include reporting requirements such as methods of
reporting investments, the standards against which investments should be reported, and the
requirement for calculating market value.
Reporting Methods: Ways in which investment outcomes are reported including listing of
instrument values, dollar value returns, percentage yields, etc: GFOA suggests that local
governments prepare investment reports at least quarterly. In California, investment reports are
no longer required to be submitted to legislative bodies. This requirement is now permissive. If a
local government chooses to submit an investment report in accordance with California
Government Code Section 53646 to their legislative bodies, they are still required to submit copies
to CDIAC for the second and fourth quarter of every calendar year until January 1, 2007. GFOA
goes on to list some suggested components of investment reports including listing of securities,
gains and losses, average weighted yield to maturity as compared to benchmarks, listing of
investment by maturity date, and percentage of the total portfolio which each type of investment
represents.
® Risk: Two of the most common risks assodated with local government portfolio investing are
credit risk and interest rate risk. Credit risk is the risk to an investor that an issuer will default in
the timely payment of interest and/or principal on a security. Interest rate risk is the risk that the
market value of securities in the portfolio will fall due to changes in general interest rates. Limiting
investment to the safest types of securities, pre -qualifying financial institutions, broker/dealers,
and others with which the local agency will do business, and diversifying the number of issuers in
an investment portfolio can minimize credit risk. Interest rate risk can be minimized by structuring
the portfolio so that investments mature at the same time that cash is required or investing
operating funds in highly liquid, shorter -term securities (e.g., U.S. Treasury bills or notes).
Safekeeping and Custody: Rules derived to ensure the safety of an investment and within
whose control the investment resides. Some examples include third -party safekeeping, developing
lists of authorized financial dealers and institutions, developing internal controls, and using a
delivery vs. payment standard for transactions. Local agencies should consider requiring securities
to be held by third -party custodians, evidenced by timely statements illustrating the balance held
by these custodians.
Scope: The types of funds that the policy covers (e.g., operating funds, bond proceeds, etc.). In
general, investment policies cover short-term operating funds. Longer -term funds such as
retirement funds are covered by other policies. The investment of bond funds usually is governed
by the bond documents such as the trust indenture.
Standards of Care: The degree of care that a reasonably prudent person would exercise in the
® investment of local agency funds.
® December 20, 2005 CITY OF MORRO BAY
STATEMENT OF INVESTMENT POLICY
Introduction
Monies not required for immediate expenditure by the City of Morro Bay shall be invested in
compliance with governing provisions of law (including Section 53600 of the Government Code) and
this Investment Policy.
Policy
It is the policy of the City of Morro Bay to invest funds in a manner which will provide the highest
investment return with the maximum security while meeting the daily cash flow demands of the city
and conforming to all federal, state and local statutes governing the investment of public funds.
Scope
This investment policy applies to all financial assets of the City of Morro Bay. These funds are
accounted for in the City' s Comprehensive Annual Financial Report and include:
® Funds:
General Fund
Special Revenue Funds
Enterprise Funds
Capital Project Funds
Trust and Agency Funds
Internal Service Funds
And any other fund maintained by the City, unless specifically exempted.
Prudence
Investments shall be made with judgment and care, under circumstances then prevailing, which
persons of prudence, discretion and intelligence exercise in the management of their own affairs, not
for speculation, but for investment, considering the probable safety of their capital as well as their
probable income to be derived.
The standard of prudence to be used by investment officials shall be the "prudent person" standard
and shall be applied in the context of managing an overall portfolio. Investment officers acting in
accordance with the investment policy and exercising due diligence shall be relieved of personal
responsibility for an individual security=s credit risk or market price changes, provided deviations
from expectations are reported in a timely fashion and appropriate action is taken to control adverse
® D:TileWSWORDNOLICIES\invesm t policy 2005.doc
® Statement of Investment Policy
City of Morro Bay, California
January, 2006
developments.
Obiective
The primary objectives, in priority order, of the City of Morro Bay's investment activities shall be:
Safety: Safety of principal is the foremost objective of the investment program Investments of the
City of Morro Bay shall be undertaken in a manner that seeks to ensure the preservation of capital in
the overall portfolio. To attain this objective, diversification is required in order that potential losses
on individual securities do not exceed the income generated from the remainder of the portfolio.
Liquidity: The City of Morro Bay' s investment portfolio will remain sufficiently liquid to enable the
city to meet all operating requirements, which might be reasonably anticipated.
Return on Investments: The City of Morro Bay--s investment portfolio shall be designed with the
objective of attaining a rate of return throughout the budgetary and economic cycles, commensurate
with the city' s investment risk constraints and the cash flow characteristics of the portfolio.
® 'Delegation ofAuthority
Pursuant to Section 53607 ofthe Government Code, the Treasurer ofthe City ofMorro Bay shall be
delegated authority and assume full responsibility for investing and reinvesting idle funds of the city.
In accordance with S13109, Chapter 749, 1996 statutes, the City Council shall annually delegate such
authority and responsibility, subject to review. In further accordance with SB 109, the City Council is
trustee and therefore fiduciary subject to the prudent investor standard and, delegation ofauthorityto
the Treasurer does not relieve the City Council of that trustee role.
Ethics and Conflict of Interest
Officers and employees involved in the investment process shall refrain from personal business activity
that could conflict with proper execution of the investment program, or which could impair their
ability to make impartial investment decisions. Employees and investment officials shall disclose to the
City Manager any material financial interests in financial institutions that conduct business within this
jurisdiction, and they shall further disclose any large personal financial/investment positions that could
be related to the performance of the City of Morro Bay, particularly with regard to the time of
purchases and sales.
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® Statement of Investment Policy
City of Morro Bay, California
January, 2006
Authorized Financial Dealers and Institutions
The Treasurer will maintain a list of investment brokers/dealers and financial institutions authorized to
provide investment and safekeeping services for the city. All broker/dealers and financial institutions
that desire to become qualified bidders for investment transactions and related services shall supply
the Treasurer with the following:
Current audited financial statements
Proof of registration with the National Association of Security Dealers (NASD)(Broker/Dealers) and
Small Investors Protection Corporation (SIPC)
Certification of having read the City of Mono Bay's Investment Policy
Certification of authorization to do business in the State of California
Authorized and Suitable Investments
Governing laws of the State of California permit local agencies to invest in a range of investment
instruments that vary in complexity and sophistication, as well as risk and reward. Due to the limited
size of the City of Mono Bay's portfolio, the city does not require frequent entry into the investment
® marketplace. Under these circumstances, it would be prudent for the city to limit the range of
investment instruments to a subset of those allowable, in order to provide for diversification and at
the same time limit the risk associated with limited entry into the marketplace.
Suitable investment instruments shall include the following and all transactions shall be on a delivery
versus payment (DVP) basis:
Securities of the U. S. Government, or its agencies.
California Local Agency Investment Fund Demand Deposits
FDIC Insured Certificates of Deposit
Bankers' Acceptances (not exceeding 40% of portfolio/ max maturity 180 days)
Money Market funds whose portfolios consist of the foregoing (not exceeding 20% of portfolio)
Passbook savings accounts
Except for securities of the U.S. Government, or its agencies, and for the LAIF fund, maturities on
each investment shall not exceed three (3) years from date of purchase.
Diversification
The City of Mono Bay will diversify its investments by security type and institution to the greatest
extent practicable. With the exception of securities of the U.S. Government, or its agencies and the
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® Statement of Investment Policy
City of Morro Bay, California
January, 2006
California Local Agency Investment Fund, no more than 40% ofthe city, s total investment pool will
be invested in a single security type or with a single financial institution.
Reporting
The Treasurer is charged with the responsibility of making a monthly investment portfolio report to
the City Council of the City of Morro Bay. The monthly report shall include an accounting for all cash
and investments in the portfolio and shall include both cost and marked -to -market value as ofthe end
of the monthly reporting period.
Investment Policy Adoption
The city, s investment policy shall be adopted by resolution of the City Council. The policy shall be
reviewed annually by the City Council and any modifications made thereto must be approved by the
City Council. The City Council shall also delegate authority to make investments by resolution on an
annual basis.
11
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® Statement of Investment Policy
City of Morro Bay, California
January, 2006
Glossary of Terms
Bankers, Acceptance: A draft or bill or exchange accepted by a bank or trust company. The
accepting institution guarantees payment of the bill, as well as the issuer.
Broker: A broker brings buyers and sellers together for a commission.
Certificate of Deposit: A time deposit with a specific maturity evidenced by a certificate.
Comprehensive Annual Financial Report (CAFR): The official annual report of the City of
Morro Bay. It includes combined statements of each individual fund and account group prepared in
conformity with GAAP. It also includes supporting schedules necessary to demonstrate compliance
with finance -related and contractual provisions, introductory material and a detailed statistical section.
Delivery Versus Payment: One of two methods of delivery of securities. Similar to an escrow for a
home loan, where a third party holds both the payment and the security and exchanges them after all
specifications have been met.
Diversification: A method for reducing investment risk by using a variety of investment instruments
and financial institutions to avoid a single catastrophic failure.
FDIC: Federal Deposit Insurance Corporation is a federal agency that insures bank deposits up to
$100,000 per deposit.
Liquidity: A liquid asset is one that can be quickly and easily converted into cash without a
substantial loss in value.
LAIF: California Local Agency Investment Fund is an investment pool that aggregates all funds
from political subdivisions and invests them under the custody of the State Treasurer.
Market Value: The price at which a security is trading and could presumably be sold or purchased.
Maturity: The date upon which the principal or stated value of an investment becomes due and
payable.
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Statement of Investment Policy
City of Morro Bay, California
January, 2006
Money Market: The market in which short-term debt instruments are issued and traded.
Portfolio: The collection of securities held by an investor.
Safekeeping: A service rendered by banks for a fee whereby securities and valuables ofall types are
held in the bank's vault for protection.
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