Loading...
HomeMy WebLinkAboutResolution 01-09 to 65-09RESOLUTIONS 2009 NO. TITLE ADOPTED 64-09 RESOLUTION ENDING THE DECLARATION OF A WATER EMERGENCY FOR THE STATE WATER SHUTDOWN ANFD REPEAL OF THE MANDATORY CONSERVATION REQUIREMENT AND ADOPTION OF A STANDING WATER EMERGENCY DURING REDUCED OR NON -STATE WATER DELIVERY PERIODS 12-14-09 65-09 RESOLUTION APPROVING THE REAL ESTATE AGREEMENT FOR THE SALE OF CITY -OWNED PROPERTY LOCATED AT 781 MARKET STREET AND AT THE CORNER OF PACIFIC AND MARKET 12-14-09 �J ® RESOLUTIONS 2009 NO. TITLE ADOPTED 58-09 RESOLUTION APPROVING AN INTERIM LEASE AGREEMENT FOR LEASE SITE 96/96W LOCATED AT 945 EMBARCADERO 12-14-09 59-09 RESOLUTION APPROVING AMENDMENT #4 TO THE LEASE AGREEMENT FOR LEASE SITE 87-88/ 87W-88W LOCATED AT 833 EMBARCADERO 12-14-09 60-09 RESOLUTION AUTHORIZING THE CITY TO ENTER INTO ABANDONED WATERCRAFT ABATEMENT FUND CONTRACT WITH THE DEPARTMENT OF BOATING AND WATERWAYS 12-14-09 61-09 RESOLUTION AUTHORIZING AND DELEGATING AUTHORITY TO THE UTILITIES/CAPITAL PROJECTS is MANAGER FOR THE PURSUIT OF A PROPOSITION 84 WATER TREATMENT GRANT 12-14-09 62-09 RESOLUTION AUTHORIZING STAFF TO SUBMIT THE ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANT PROGRAM APPLICATION TO THE CALIFORNIA ENERGY COMMISSION FOR GRANT FUNDS TO EXECUTE THE PROPOSED IMPROVEMENTS IDENTIFIED IN THE CALIFORNIA ENERGY COMMISSIONS "ENERGY AUDIT LETTER REPORT" 12-14-09 63-09 RESOLUTION AUTHORIZING THE CITY TO JOIN THE CALIFORNIA-FIRST PROGRAM; AUTHORIZING THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY TO ACCEPT APPLICATIONS FROM PROPERTY OWNERS, CONDUCT CONTRACTUAL ASSESSMENT PROCEEDINGS AND LEVY CONTRACTUAL ASSESSMENTS WITHIN THE TERRITORY OF THE CITY 12-14-09 p ® RESOLUTIONS 2009 NO. TITLE ADOPTED 50-09 RESOLUTION DECLARING A CITYWIDE WATER EMERGENCY 09-28-09 51-09 RESOLUTION ACKNOWLEDGING ITS INTENTION TO SELL CITY -OWNED REAL PROPERTY LOCATED AT 781 MARKET AND AT THE CORNER OF PACIFIC AND MARKET IN MORRO BAY 09-28-09 52-09 RESOLUTION APPROVING THE APPLICATION FOR GRAND FUNDS FOR THE PER CAPITA GRANT PROGRAM UNDER THE CALIFORNIA CLEAN WATER, CLEAN AIR, SAFE NEIGHBOR- HOODS, AND COASTAL PROTECTION ACT OF 2002 FOR IMPROVEMENTS TO LILA KEISER PARK 10-12-09 ® 53-09 RESOLUTION APPROVING A BUSINESS LICENSE APPLICATION FOR AN ARCADE IN CONFORMANCE WITH MORRO BAY MUNICIPAL CODE SECTION 5.04.330 AT 725 EM 3ARCADERO 10-12-09 54-09 RESOLUTION AUTHORIZING THE CITY TO ENTER INTO A GRANT AGREEMENT WITH THE DEPARTMENT OF BOATING AND WATERWAYS FOR STATE PARK MARINA MAINTENANCE DREDGING 11-09-09 55-09 RESOLUTION ACCEPTING $100,000 GRANT FROM THE STATE OF CALIFORNIA CITIZENS OPTION FOR PUBLIC SAFETY PROGRAM 11-09-09 56-09 RESOLUTION AMENDING THE HOUSING ELEMENT OF THE GENERAL PLAN 11-09-09 57-09 RESOLUTION APPOINTING THE CITY TREASURER AND CITY ENGINEER 12-14-09 LJ RESOLUTIONS 2009 NO. TITLE ADOPTED 44-09 RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE A LANDLORD'S ESTOPPEL FOR LEASE SITE 122-123/122W-123W LOCATED AT 1205 EMBARCADERO 08-10-09 45-09 RESOLUTION AUTHORIZING THE CITY OF MORRO BAY TO ENTER INTO A GRANT AGREEMENT WITH THE DEPARTMENT OF BOATING AND WATERWAYS FOR STATE PARK MARINA DREDGING STUDIES, PERMITS AND MONITORING AND AUTHORIZATION FOR THE CITY TO ENTER INTO A CONSULTING SERVICES AGREEMENT WITH ANCHOR ENVIRONMENTAL TO ACQUIRE STATE PARK MARINA DREDGING PERMITS 08-24-09 46-09 RESOLUTION ADOPTING AMENDMENTS TO THE 2009/2010 MASTER FEE SCHEDULE 08-24-09 47-09 RESOLUTION DETAILING STRATEGIES TO PREVENT AND REDUCE VACANCIES ON THE EMBARCADERO AND STIMULATE BUSINESS 09-28-09 48-09 RESOLUTION DESIGNATING PRIMARY AND SECONDARY PROPOSERS FOR LEASE SITE 96/96W AND AUTHORIZATION FOR THE PRIMARY PROPOSER TO APPLY FOR DEVELOPMENT PERMITS FOR LEASE SITE 96/96W LOCATED AT 945 EMBARCADERO 09-14-09 49-09 RESOLUTION APPROVING THE FORM OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF A PURCHASE AND SALE AGREEMENT AND RELATED DOCUMENTS WITH RESPECT TO THE SALE OF THE SELLER'S PROPOSITION IA RECEIVABLE FROM THE STATE; AND DIRECTING AND AUTHORIZING CERTAIN OTHER ACTIONS ® IN CONNECTION THEREWITH 09-28-09 RESOLUTIONS 2009 NO. TITLE ADOPTED 36-09 RESOLUTION AUTHORIZING THE CITY ATTORNEY TO COOPERATE WITH THE LEAGUE OF CALIFORNIA CITIES; OTHER CRIES AND COUNTIES IN LITIGATION CHALLENGING THE CONSTITUTIONALITY OF ANY SEIZURE BY STATE GOVERNMENT OF THE CITY'S STREET MAINTENANCE FUNDS 06-22-09 37-09 RESOLUTION ADOPTING THE 2009/10 FISCAL YEAR OPERATING BUDGET 06-29-09 38-09 RESOLUTION WITHDRAWING RESOLUTION NO. 78-08 WHICH AMENDED THE SALARIES AND ® BENEFITS OF THE MANAGEMENT EMPLOYEES 06-29-09 39-09 RESOLUTION CONSENTING TO THE CHAPTER 11 BANKRUPTCY RESTRUCTURING OF CHARTER COMMUNICATIONS 07-13-09 40-09 RESOLUTION AUTHORIZING THE ISSUANCE OF CREDIT CARDS THROUGH RABOBANK 07-13-09 41-09 RESOLUTION APPROVING THE CITY TO ENTER INTO THE CALIFORNIA ENERGY COMMISSION'S ENERGY PARTNERSHIP PROGRAM 07-13-09 42-09 RESOLUTION ESTABLISHING THE ANNUAL PROPOSITION 4 APPROPRIATIONS LIlMHT FOR THE FISCAL YEAR 2009/10 07-13-09 43-09 RESOLUTION OF AUTHORIZATION TO ENTER INTO A FINANCIAL ASSISTANCE AGREEMENT WITH THE STATE WATER RESOURCES CONTROL BOARD FOR PHASE I CONSTRUCTION OF A LOW IMPACT DEVELOPMENT BOAT REPAIR YARD AND DESIGNATION OF A REPRESENTATIVE TO SIGN ® THE FINANCIAL ASSISTANCE AGREEMENT 07-13-09 RESOLUTIONS 2009 NO. TITLE ADOPTED 27-09 RESOLUTION ADOPTING THE IDENTIFY THEFT PREVENTION PROGRAM 06-08-09 28-09 RESOLUTION APPROVING A 2009/10 APPLICATION FOR FUNDING AND THE EXECUTION OF A GRANT AGREEMENT AND ANY AMENDMENTS THERETO FROM THE GENERAL/COLONIA ALLOCATION OF THE SATE CDBG PROGRAM 06-08-09 45-08 RESOLUTION OPPOSING THE PASSAGE OF ASSEMBLY BILL 761, WHICH WOULD ESTBLISH STATEWIDE VACANCY DECONTROL FOR ALL MOBILEHOME RENT CONTROL 06-08-09 ® 30-09 RESOLUTION CONTINUING THE 2008/09 BUDGET 06-22-09 31-09 RESOLUTION DIRECTING THE LEVY OF THE ANNUAL ASSESSMENT FOR THE CLOISTERS LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT 06-22-09 32-09 RESOLUTION DIRECTING THE LEVY OF THE ANNUAL ASSESSMENT FOR THE NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT 06-22-09 33-09 RESOLUTION AUTHORIZING THE SAN LUIS OBISPO COUNTY ASSESSOR TO ASSESS AMOUNTS DUE ON DELINQUENT SOLID WASTE COLLECTION AND DISPOSAL ACCOUNTS AS TAX LIENS AGAINST THE PROPERTIES 06-22-09 34-09 RESOLUTION ADOPTING REVISIONS TO THE MASTER FEE SCHEDULE 06-22-09 35-09 RESOLUTION SUPPORTING THE "SAVE ® CALIFORNIA'S STATE PARKS" CAMPAIGN 06-22-09 RESOLUTIONS 2009 NO. TITLE ADOPTED 19-09 RESOLUTION TO AUTHORIZE GRANT APPLICATION (PRINCIPLE FORGIVENESS LOAN) TO THE STATE WATER RESOURCES QUALITY CONTROL BOARD CLEAN WATER STATE REVOLVING FUND FOR PHASE I CONSTRUCTION OF A LOW IMPACT DEVELOPMENT BOAT REPAIR YARD 04-27-09 20-09 RESOLUTION ADOPTING THE BY-LAWS FOR THE MORRO BAY TOURISM BUSINESS IMPROVEMENT DISTRICT ADVISORY BOARD 04-27-09 21-09 RESOLUTION DECLARING THE CITY'S INTENTION TO LEVY THE ANNUAL ASSESSMENT FOR THE MAINTENANCE OF THE CLOISTERS ® PARK AND OPEN SPACE 05-11-09 22-09 RESOLUTION DECLARING THE CITY'S INTENTION TO LEVY THE ANNUAL ASSESSMENT FOR THE MAINTENANCE OF THE NORTH POINT NATURAL AREA 05-11-09 23-09 RESOLUTION FINDING A SEVERE FISCAL HARDSHIP WILL EXIST IF ADDITIONAL CITY PROPERTY TAX FUNDS ARE SEIZED AND ADDITIONAL UNFUNDED MANDATES ARE ADOPTED BY THE STATE OF CALIFORNIA 05-11-09 24-09 RESOLUTION ANNOUNCING FINDINGS AND APPROVAL OF THE GREEN BUILDING INCENTIVE PROGRAM 05-26-09 25-09 VOID 26-09 RESOLUTION AUTHORIZING A SIX-MONTH LICENSE AGREEMENT FOR USE OF CITY FACILITIES WITH BIG ROCK CHARTERS/ ® CHABLIS 05-26-09 �J RESOLUTIONS 2009 NO. TITLE ADOPTED 14-09 RESOLUTION APPROVING ASSIGNMENT OF LEASE AGREEMENT FOR LEASE SITE 122-123/122W-123W AND EXTENSION 122W-123W FROM HARBOR HUT, INC. GEORGE LEAGE TO THMT INC., HEATHER AND TROY LEAGE AND CONDITIONAL APPROVAL OF AMENDMENT #1 TO THE LEASE AGREEMENT FOR LEASE SITE 122-123/122W-123W (HARBOR HUT) 04-13-09 15-09 RESOLUTION INITIATING PROCEEDINGS TO LEVY THE ANNUAL ASSESSMENT FOR CLOISTERS LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT 04-13-09 16-09 RESOLUTION INITIATING PROCEEDINGS TO LEVY THE ANNUAL ASSESSMENT FOR THE NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT 04-13-09 17-09 RESOLUTION FOR PAYING AND REPORTING THE VALUE OF EMPLOYER PAID MEMBER CONTRIBUTIONS FOR SEW MISCELLANEOUS EMPLOYEES 04-27-09 18-09 RESOLUTION FOR PAYING AND REPORTING THE VALUE OF EMPLOYER PAID MEMBER CONTRIBUTIONS FOR THE MORRO BAY FIREFIGHTERS 04-27-09 ® RESOLUTIONS 2009 NO. TITLE ADOPTED 08-09 RESOLUTION DECLARING THE CITY'S INTENTION TO ESTABLISH THE MORRO BAY BUSINESS IMPROVEMENT DISTRICT, DECLARING ITS INTENTION TO LEVY AN ASSESSMENT ON LODGING BUSINESSES WITHIN SUCH DISTRICT, AND FIXING THE TIME AND PLACE OF A PUBLIC MEETING AND A PUBLIC HEARING THEREON AND GIVING NOTICE THEREOF 02-23-09 09-09 RESOLUTION AUTHORIZING THE CITY TO ENTER INTO A DERELICT VESSEL ABATEMENT GRANT WITH THE MORRO BAY NATIONAL ESTUARY PROGRAM 03-09-09 10-09 RESOLUTION APPROVING THE PARCEL MAP FOR A 4-LOT RESIDENTIAL SUBDIVISION KNOWN AS PM Morro Bay 05-0357 AND ACCEPTING THE OFFER OF DEDICATION OF A PUBLIC PEDESTRIAN EASEMENT 03-09-09 11-09 RESOLUTION SUPPORTING THE EFFORTS OF THE MORRO BAY BEAUTIFUL ADOPT -A -TREE PROGRAM 03-09-09 12-09 RESOLUTION AUTHORIZING THE FEDERAL FUNDING UNDER FTA SECTION 5311 WITH CALIFORNIA DEPARTMENT OF TRANSPORTATION TO PURCHASE ONE WHEELCHAIR ACCESSIBLE DIAL -A -RIDE VEHICLE AND ONE WHEELCHAIR ACCESSIBLE TROLLEY 04-13-09 13-09 RESOLUTION APPROVING AMENDMENT #1 TO THE LEASE AGREEMENT FOR LEASE SITE 129W-131W (MORRO BAY FISH COMPANY, INC.) 04-13-09 RESOLUTIONS 2009 NO. TITLE ADOPTED 01-09 RESOLUTION ADOPTING THE CITY INVESTMENT POLICY AND DELEGATING AUTHORITY TO THE CITY TREASURER TO INVEST IDLE FUNDS 01-12-09 02-09 RESOLUTION DESIGNATING AND AUTHORIZING TRANSACTION OFFICERS TO INVEST PUBLIC FUNDS 01-12-09 03-09 RESOLUTION RESCINDING RESOLUTION NO. 58-06 THAT CONDITIONALLY GRANTED CONSENT TO THE COUNTY OF SAN LUIS OBISPO TO FORM THE SAN LUIS OBISPO COUNTY TOURISM BUSINESS IMPROVEMENT DISTRICT 01-28-09 ® 04-09 RESOLUTION AUTHORIZING THE MID -YEAR 2008/09 AMENDMENTS TO THE CITY'S OPERATING AND CAPITAL IMPROVEMENT BUDGETS 02-09-09 05-09 RESOLUTION REAFFIRMING INVESTMENT OF MONIES IN THE LOCAL AGENCY INVESTMENT FUND AND DESIGNATING TRANSACTION OFFICERS 02-09-09 06-09 RESOLUTION ENDORSING THE GUIDING PRINCIPLES OF THE SAN LUIS OBISPO COUNTYWIDE 10-YEAR PLAN TO END HOMELESSNESS 02-02-09 07-09 RESOLUTION RELATING TO THE CLASSIFICATION, COMPENSATION AND TERMS OF EMPLOYMENT OF FIRE EMPLOYEES OF THE CITY OF MORRO BAY 02-02-09 RESOLUTION NO. 65-09 RESOLUTION APPROVING THE REAL ESTATE AGREEMENT FOR THE SALE OF CITY -OWNED PROPERTY LOCATED AT 781 MARKET AND AT THE CORNER OF PACIFIC AND MARKET IN MORRO BAY, CALIFORNIA The City Council, City of Morro Bay, California WHEREAS, the City purchased real property located at the Corner of Pacific and Market Streets, Morro Bay, California in 2001 for $500,000.00; and WHEREAS, the City purchased real property located at 781 Market Street, Morro Bay, California in 2002 as part of a purchase that also included the property at 714 Embarcadero for $2,700,000.00; and WHEREAS, pursuant to Government Code section 37350, the City wishes to sell City - owned real properties located at the Corner of Pacific and Market and at 781 Market Street, Morro Bay, California for the common benefit of its citizens; and WHEREAS, pursuant to Government Code section 37421, and Resolution 51-09, the City notified its citizens of its intention to sell City -owned properties located at the Corner of Pacific and Market and at 781 Market Street, Morro Bay, California; and ® WHEREAS, the City designated the real properties at the Comer of Pacific and Market and at 781 Market Street, California for sale at the Open Session Council Meeting on September 28, 2009 and held a public hearing on October 12, 2009, and after receiving no protests passed and adopted Resolution 51-09 by a unanimous vote; and WHEREAS, the City has negotiated the attached Real Estate Agreement with the Buyer of the properties for $1,500,000.00. Now, THEREFORE, be it resolved that the City Council of the City of Morro Bay does hereby approve the attached Real Estate Purchase Agreement for the sale of the City -owned real property located at the Comer of Pacific and Market and at 781 Market Street, Morro Bay, California. PASSED AND ADOPTED by the City Council, City of Morro Bay at a regular meeting thereof held on the 14a' day of December 2009, by the following vote: AYES: Borchard, Grantham, Smukler, Winholtz NOES: Peters ABSENT: None ABSTAIN: None ATTEST: BRIDGE AUER, City Clerk ® RESOLUTION NO.64-09 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA ENDING THE DECLARATION OF A WATER EMERGENCY FOR THE STATE WATER SHUTDOWN AND REPEAL OF THE MANDATORY CONSERVATION REQUIREMENT AND ADOPTION OF A STANDING WATER EMERGENCY DURING REDUCED OR NON STATE WATER DELIVERY PERIODS THE CITY COUNCIL City of Morro Bay, California WHEREAS, the annual maintenance period for the State Water Project shutdown during 2009 has been completed; and WHEREAS, it is in the interest of the health, safety and general welfare of the residents of the City of Morro Bay to conserve the City's water supply during future State Water Project shutdowns; and WHEREAS, it is in the interest of the health, safety and general welfare of the residents of the City of Morro Bay to conserve the City's water supply during future State ® Water Project deliveries of 35 % or less; and WHEREAS, in May 1993 the City of Morro Bay proactively established preparations for impending water supply shortages and emergencies by adopting Mandatory Water Conservation Requirements in the Morro Bay Municipal Code Section 13.04.320 et sec; and WHEREAS, in accordance with Section 13.04.340 the City of Morro Bay Public Works (Services) Director is hereby authorized and directed to take any or all of the necessary actions, which in his judgment will best conserve water during the duration of the emergency. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, that resolution 50-09 is hereby repealed; and NOW, THEREFORE, BE IT FURTHER RESOLVED, by the City Council of the City of Morro Bay, California; that it is in the public interest to institute Mandatory Water Conservation Requirements during future State Water Project shutdowns; and NOW, THEREFORE, BE IT FURTHER RESOLVED, by the City Council of the City of Morro Bay, California, that it is in the public interest to institute Mandatory ® Water Conservation Requirements during State Water Project deliveries of 35% or less; and ® Resolution No. 64-09 Page Two NOW, THEREFORE, BE IT FURTHER RESOLVED, by the City Council of the City of Morro Bay, California, that the Public Services Director is hereby authorized and directed to take any and all actions outlined in Section 13.04.340 of the Morro Bay Municipal Code based on Mandatory Water Conservation Requirement - Level B (Moderately Restricted Water Supply Conditions), that will best conserve water during the State Water Project shutdown or when State Water Deliveries are below 35%. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 14th day of December, 2009 on the following vote: AYES: Borchard, Grantham, Smukler, Winholtz, Peters NOES: None ABSENT: None ATTEST: (Li BRIDGE BAUER, City Clerk r ® RESOLUTION NO.63-09 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY AUTHORIZING THE CITY OF MORRO BAY TO JOIN THE CALIFORNIAFIRST PROGRAM; AUTHORIZING THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY TO ACCEPT APPLICATIONS FROM PROPERTY OWNERS, CONDUCT CONTRACTUAL ASSESSMENT PROCEEDINGS AND LEVY CONTRACTUAL ASSESSMENTS WITHIN THE TERRITORY OF THE CITY OF MORRO BAY; AND AUTHORIZING RELATED ACTIONS THE CITY COUNCIL City of Morro Bay, California WHEREAS, the California Statewide Communities Development Authority ("California Communities") is a joint exercise of powers authority the members of which include numerous cities and counties in the State of California, including the City of Morro Bay (the "City"); and WHEREAS, California Communities has established the CaliforniaFIRST program (the "CaliforniaFIRST Program") to allow the financing of certain renewable energy, energy efficiency and water efficiency improvements (the "Improvements") through the levy of contractual assessments pursuant to Chapter 29 of Division 7 of the Streets & Highways Code ® ("Chapter 29") and the issuance of improvement bonds (the "Bonds") under the Improvement Bond Act of 1915 (Streets and Highways Code Sections 8500 and following) (the "1915 Act") upon the security of the unpaid contractual assessments; and WHEREAS, Chapter 29 provides that assessments may be levied under its provisions only with the free and willing consent of the owner of each lot or parcel on which an assessment is levied at the time the assessment is levied; and WHEREAS, the City desires to allow the owners of property within its jurisdiction ("Participating Property Owners") to participate in the CaliforniaFIRST Program and to allow California Communities to conduct assessment proceedings under Chapter 29 and to issue Bonds under the 1915 Act to finance the Improvements; and WHEREAS, California Communities will conduct assessment proceedings under Chapter 29 and issue Bonds under the 1915 Act to finance Improvements; WHEREAS, there has been presented to this meeting a proposed form of Resolution of Intention to be adopted by California Communities in connection with such assessment proceedings (the "ROI"), a copy of which is attached hereto as Exhibit A, and the territory within which assessments may be levied for the CaliforniaFIRST Program shall include• all of the territory within the City's official boundaries of record (the "Proposed Boundaries"); and E ® WHEREAS, the City will not be responsible for the conduct of any assessment proceedings; the levy or collection of assessments or any required remedial action in the case of delinquencies in such assessment payments; or the issuance, sale or administration of the Bonds or any other bonds issued in connection with the CaliforniaFIRST Program; and WHEREAS, pursuant to Government Code Section 6586.5, a notice of public hearing has been published once at least five days prior to the date hereof in a newspaper of general circulation in the City and a public hearing has been duly conducted by this City Council concerning the significant public benefits of the CaliforniaFIRST Program and the financing of the Improvements; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay as follows: Section 1. On the date hereof, the City Council held a public hearing and the City Council hereby finds and declares that the issuance of bonds by California Communities in connection with the CaliforniaFIRST Program will provide significant public benefits, including without limitation, savings in effective interest rate, bond preparation, bond underwriting and bond issuance costs and reductions in effective user charges levied by water and electricity providers within the boundaries of the City. Section 2. In connection with the CaliforniaFIRST Program, the City hereby consents to the conduct of special assessment proceedings by California Communities pursuant ® to Chapter 29 on any property within the Proposed Boundaries and the issuance of Bonds under the 1915 Act; provided, that (1) Such proceedings are conducted pursuant to one or more Resolutions of Intention in substantially the form of the ROI; (2) The Participating Property Owners, who shall be the legal owners of such property, execute a contract pursuant to Chapter 29 and comply with other applicable provisions of California law in order to accomplish the valid levy of assessments; and (3) The City will not be responsible for the conduct of any assessment proceedings; the levy or collection of assessments or any required remedial action in the case of delinquencies in such assessment payments; or the issuance, sale or administration of the Bonds or any other bonds issued in connection with the CaliforniaFIRST Program. (4) The issuance of Bonds will occur following receipt of a final judgment in a validation action filed by California Communities pursuant to Code of Civil Procedure Section 860 that the Bonds are legal obligations of California Communities. E ® Section 3. Pursuant to the requirements of Chapter 29, California Communities has prepared and will update from time to time the "Program Report" for the CaliforniaFIRST Program (the "Program Report"), and California Communities will undertake assessment proceedings and the financing of Improvements as set forth in the Program Report. Section 4. The appropriate officials and staff of the City are hereby authorized and directed to make applications for the CaliforniaFIRST program available to all property owners who wish to finance Improvements; provided, that California Communities shall be responsible for providing such applications and related materials at its own expense. The following staff persons, together with any other staff persons chosen by the City Manager from time to time, are hereby designated as the contact persons for California Communities in connection with the CaliforniaFIRST Program: Bruce Ambo, Public Services Director. Section 5. The appropriate officials and staff of the City are hereby authorized and directed to execute and deliver such closing certificates, requisitions, agreements and related documents as are reasonably required by California Communities in accordance with the Program Report to implement the CaliforniaFIRST Program for Participating Property Owners. Section 6. The appropriate officials and staff of the City are hereby authorized and directed to pay California Communities a fee in an amount not to exceed $10,000.00, which California Communities will use to pay for the costs of implementing the CaliforniaFIRST Program in the City, including the payment of legal costs incurred in connection with judicial validation of the CaliforniaFIRST Program. ® Section 7. The City Council hereby finds that adoption of this Resolution is not a "project" under the California Environmental Quality Act, because the Resolution does not involve any commitment to a specific project which may result in a potentially significant physical impact on the environment, as contemplated by Title 14, California Code of Regulations, Section 15378(b)(4)). Section 8. This Resolution shall take effect immediately upon its adoption. The City Clerk is hereby authorized and directed to transmit a certified copy of this resolution to the Secretary of California Communities. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 14's day of December, 2009, by the following vote: AYES: Borchard, Grantham, Smukler, Winholtz, Peters NOES: None ABSENT: None JA CE PETE , Mayor ATTEST: ® BRIDG BAUER, City Clerk 3 ® EXHIBIT A 11 r� FORM OF RESOLUTION DECLARING INTENTION TO FINANCE INSTALLATION OF DISTRIBUTED GENERATION RENEWABLE ENERGY SOURCES, ENERGY EFFICIENCY AND WATER EFFICIENCY IMPROVEMENTS 4 EXHIBIT A FORM OF RESOLUTION OF INTENTION ® RESOLUTION NO. RESOLUTION DECLARING INTENTION TO FINANCE INSTALLATION OF DISTRIBUTED GENERATION RENEWABLE ENERGY SOURCES, ENERGY EFFICIENCY AND WATER EFFICIENCY IMPROVEMENTS COUNTY OF WHEREAS, the California Statewide Communities Development Authority ("California Communities") is authorized under the authority granted California Communities pursuant to Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California in accordance with Chapter 29 of Part 3 of Division 7 of the Streets & Highways Code of the State of California ('Chapter 29") to authorize assessments to finance the installation of distributed generation renewable energy sources, energy efficiency and water efficiency improvements that are permanently fixed to real property ("Authorized Improvements"); and WHEREAS, Chapter 29 authorizes California Communities to enter into contractual assessments to finance the installation of Authorized Improvements in the County of _ (the "County"); and WHEREAS, California Communities wishes to declare its intention to establish a CalifomiaFIRST program (the "CalifomiaFIRST Program") in the County, pursuant to which California Communities, subject to certain conditions set forth below, would enter into contractual assessments to finance the installation of Authorized Improvements in the County; ® NOW, THEREFORE, BE IT RESOLVED by the California Statewide Communities Development Authority, as follows: Section 1. Findings. California Communities hereby finds and declares the following: (a) The above recitals are true and correct. (b) Energy conservation efforts, including the promotion of energy -related Authorized Improvements to residential, commercial, industrial, or other real property, are necessary to address the issue of global climate change and the reduction of greenhouse gas emissions in the County. (c) Water conservation efforts, including the promotion of water -related Authorized Improvements to residential, commercial, industrial, or other real property, are necessary to address the issue of chronic water shortages in California. (d) The upfront cost of making residential, commercial, industrial, or other real property more energy and water efficient, along with the fact that most commercial loans for that purpose are due on the sale of the property, prevents many property owners from installing Authorized Improvements. (e) A public purpose will be served by establishing a contractual assessment program, to be known as the CalifomiaFIRST Program, pursuant to which California ® Communities will finance the installation of Authorized Improvements to residential, commercial, industrial, or other real property in the County. Jones Hall, A Professional Law Corporation 11-24-09 Section 2. Determination of Public Interest. California Communities hereby determines that (a) it would be convenient, advantageous, and in the public interest to designate an area, which shall encompass the entire geographic territory within the boundaries of the County, within which California Communities and property owners within the County may enter into contractual assessments to finance the installation of Authorized Improvements pursuant to Chapter 29 and (b) it is in the public interest for California Communities to finance the installation of Authorized Improvements in the County pursuant to Chapter 29. Section 3. Identification of Authorized Improvements. California Communities hereby declares that it proposes to make contractual assessment financing available to property owners to finance installation of Authorized Improvements, including but not limited to those improvements detailed in the Report described in Section 8 below, as that Report may be amended from time to time. Section 4. Identification of Boundaries. Contractual assessments may be entered into by property owners located within the entire geographic territory of the County; provided, however, that California Communities shall not enter into contractual assessments to finance the installation of Authorized Improvements with the owner of any property in the County unless requested to do so first by the County if the property is located in unincorporated territory or a city if the property is located in incorporated territory and after such city or the County, as applicable, has held a public hearing pursuant to Section 6586.5 of the Government Code of the State of California. The form of resolution pursuant to which cities may request California Communities to enter into contractual assessments to finance the installation of Authorized Improvements is attached as Exhibit A. ® Section 5. Proposed Financing Arrangements. Under Chapter 29, California Communities may issue bonds pursuant to Chapter 29 that are payable by contractual assessments and California Communities may advance its own funds to finance work to be repaid through contractual assessments, and may from time to time sell bonds to reimburse itself for such advances. Division 10 (commencing with Section 8500) of the Streets & Highways Code of the State (the °Improvement Bond Act of 1915°) shall apply to any bonds issued pursuant to Chapter 29, insofar as the Improvement Bond Act of 1915 is not in conflict with Chapter 29. California Communities shall determine the creditworthiness of a property owner to participate in the financing of Authorized Improvements based on the criteria developed by the Program Manager in consultation with the CaliforniaFIRST Program financing team and on file with the Secretary. In connection with bonds issued under the Improvement Bond Act of 1915 that are payable from contractual assessments, serial and/or term improvement bonds shall be issued in such series and shall mature in such principal amounts and at such times (not to exceed 20 years from the second day of September next following their date) and at such rate or rates of interest (not to exceed the maximum rate permitted by applicable law) as shall be determined by California Communities at the time of the issuance and sale of the bonds. The provisions of Part 11.1 of the Improvement Bond Act of 1915 shall apply to the calling of the bonds. It is the intention of California Communities to create a special reserve fund for the bonds under Part 16 of the Improvement Bond Act of 1915. California Communities will not advance ® available surplus funds from its treasury to cure any deficiency in the redemption fund to be created with respect to the bonds; provided, however, that this determination shall not prevent California Communities from, in its sole discretion, so advancing funds. The bonds may be ® refunded under Division 11.5 of the California Streets and Highways Code or other applicable laws permitting refunding of the bonds, upon the conditions specified by and at the determination of California Communities. California Communities hereby authorizes the Program Manager, upon consultation with bond counsel and the CaliforniaFIRST Program underwriter, to provide for the issuance of bonds payable from contractual assessments. In connection with the issuance of bonds payable from contractual assessments, California Communities expects to obligate itself, through a covenant with the owners of the bonds, to exercise its foreclosure rights with respect to delinquent contractual assessment installments under specified circumstances. Section 6. Public Hearing. Pursuant to the Act, California Communities hereby orders that a public hearing be held before this Commission, at on 2010 at a.m., for the purposes of allowing interested persons to object to or inquire about the proposed program or any of its particulars. The public hearing may be continued from time to time as determined by the Commission for a time not exceeding a total of 180 days. At the time of the hearing, the Report described in Section 8 below shall be summarized and the Commission shall afford all persons who are present an opportunity to comment upon, object to, or present evidence with regard to the proposed contractual assessment program, the extent of the area proposed to be included within the program, the terms and conditions of the draft Contract described in Section 8 below, or the proposed financing provisions. Following the ® public hearing, California Communities may adopt a resolution confirming the Report (the "Resolution Confirming Report") or may direct the Report's modification in any respect, or may abandon the proceedings. The Commission hereby orders the Secretary to publish a notice of public hearing once a week for two successive weeks. Two publications in a newspaper published once a week or more often, with at least five days intervening between the respective publication dates not counting such publication dates, are sufficient. The period of notice will commence upon the first day of publication and terminate at the end of the fourteenth day. The first publication shall occur not later than 20 days before the date of the public hearing. Section 7. Notice to Water and Electric Providers. Pursuant to Section 5898.24 of the Streets & Highways Code, the Commission hereby orders the Secretary to provide written notice of the proposed contractual assessment program within the County to all water and electric providers within the boundaries of the County not less than 60 days prior to adoption of the Resolution Confirming Report. Section 8. Report. The Commission hereby directs the Program Manager for the CalifomiaFIRST Program to prepare and file with the Commission a report (the "Report") at or before the time of the public hearing described in Section 6 above containing all of the following: (a) A map showing the boundaries of the territory within which contractual assessments are proposed to be offered, as set forth in Section 4 above. ® (b) A draft contract (the "Contract") specifying the terms and conditions that would be agreed to by California Communities and a property owner within the County. The Contract may allow property owners to purchase directly the related equipment and materials for the ® installation of the Authorized Improvements and to contract directly for the installation of such Authorized Improvements. (c) A statement of California Communities' policies concerning contractual assessments including all of the following: (1) Identification of types of Authorized Improvements that may be financed through the use of contractual assessments. (2) Identification of California Communities official authorized to enter into contractual assessments on behalf of California Communities. (3) A maximum aggregate dollar amount of contractual assessments in the County. (4) A method for setting requests from property owners for financing through contractual assessments in priority order in the event that requests appear likely to exceed the authorization amount. (d) A plan for raising a capital amount required to pay for work performed pursuant to contractual assessments. The plan may include amounts to be advanced by California Communities through funds available to it from any source. The plan may include the sale of a bond or bonds or other financing relationship pursuant to Section 5898.28 of Chapter 29. The plan shall include a statement of or method for determining the interest rate and time period ® during which contracting property owners would pay any assessment. The plan shall provide for any reserve fund or funds. The plan shall provide for the apportionment of all or any portion of the costs incidental to financing, administration, and collection of the contractual assessment program among the consenting property owners and California Communities. (e) A report on the results of the consultations with the County Auditor -Controller described in Section 10 below concerning the additional fees, if any, that will be charged to California Communities for incorporating the proposed contractual assessments into the assessments of the general taxes of the County on real property, and a plan for financing the payment of those fees. Section 9. Nature of Assessments. Assessments levied pursuant to Chapter 29, and the interest and any penalties thereon, will constitute a lien against the lots and parcels of land on which they are made, until they are paid. Unless otherwise directed by California Communities, the assessments shall be collected in the same manner and at the same time as the general taxes of the County on real property are payable, and subject to the same penalties and remedies and lien priorities in the event of delinquency and default. Section 10. Consultations with County Auditor -Controller. California Communities hereby directs the Program Manager to enter into consultations with the County Auditor - Controller in order to reach agreement on what additional fees, if any, will be charged to California Communities for incorporating the proposed contractual assessments into the assessments of the general taxes of the County on real property. Section 11. Preparation of Current Roll of Assessment. Pursuant to Section ® 5898.24(c), California Communities hereby designates the Program Manager (or his/her designee) as the responsible official for annually preparing the current roll of assessment ® obligations by assessor's parcel number on property subject to a voluntary contractual assessment. Section 12. Procedures for Responding to Inquiries. The Program Manager shall establish procedures to promptly respond to inquiries concerning current and future estimated liability for a voluntary contractual assessment. Section 13. Professionals Appointed. California Communities hereby appoints Jones Hall, A Professional Law Corporation, San Francisco, Califomia, as bond counsel to California Communities in connection with the CalifomiaFIRST Program. The Commission hereby authorizes and directs an Authorized Signatory of California Communities (as determined from time to time by the Commission by separate resolution) to enter into appropriate agreements with such firm for its services to California Communities in connection with the matters addressed in this Resolution. Section 14. Set -Up Fees. The County and various cities within the County have advanced fees to California Communities to pay for certain costs of establishing the CalifomiaFIRST Program, some or all of which represent State Energy Program (SEP) funds. The Program Manager is hereby authorized and directed to return to the County and cities, as applicable, any fees paid to Califomia Communities by the County and cities, as applicable, that do not represent SEP funds and that California Communities does not use to pay for the costs of establishing the CalifomiaFIRST Program. Section 15. Effective Date. This resolution shall take effect immediately upon its 40 adoption. # Y # Y # Y Y # Y # # # PASSED AND ADOPTED by the California Statewide Communities Development Authority this , 2010. I, the undersigned, the duly appointed, and qualified member of the Commission of the California Statewide Communities Development Authority, DO HEREBY CERTIFY that the foregoing resolution was duly adopted by the Commission of said Authority at a duly called meeting of the Commission of said Authority held in accordance with law on 12010. 0 El Member ® RESOLUTION NO. 62-09 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA AUTHORIZING STAFF TO SUBMIT THE ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANT PROGRAM APPLICATION TO THE CALIFORNIA ENERGY COMMISSION FOR GRANT FUNDS TO EXECUTE THE PROPOSED IMPROVEMENTS IDENTIFIED IN THE CALIFORNIA ENERGY COMMISSIONS'ENERGY AUDIT LETTER REPORT" THECITYCOUNCIL City of Morro Bay, California WHEREAS, the City Council of the City of Morro Bay, California recognizes that it is in the interest of the regional, state, and national economy to stimulate the economy; create and retain jobs; reduce fossil fuel emissions; and reduce total energy usage and improve energy efficiency within our jurisdiction; and WHEREAS, Energy Efficiency and Conservation Block Grant (EECBG) funds are available through the California Energy Commission's EECBG Program for grants to eligible local governments for cost-effective energy efficiency projects; and ® WHEREAS, the City Council of the City of Morro Bay, California is eligible for EECBG funding under the California Energy Commission's EECBG Program; and WHEREAS, the City Council of the City of Morro Bay, California is proposing to implement the energy efficiency project described in the CEC Energy Audit Letter Report dated November 19, 2009 in order to qualify for EECBG funds from the California Energy Commission; and WHEREAS, the City Council of the City of Morro Bay, California has considered the application of the California Environmental Quality Act (CEQA) to the approval of the energy efficiency project described in the CEC Energy Audit Letter Report dated November 19, 2009; and NOW, THEREFORE, BE IT RESOLVED, that in compliance with the California Environmental Quality Act (CEQA), City Council of the City of Morro Bay, California finds that the approval of the energy efficiency project described in the CEC Energy Audit Letter Report dated November 19, 2009 is considered a "project" under CEQA and is exempt pursuant to Section 15301 (Existing Facilities), Class 1 of the CEQA Guidelines because the project consists of the repair, maintenance, and minor alteration of existing public structures, facilities, and mechanical equipment involving negligible or no expansion of the existing use. BE IT ALSO RESOLVED, that the City Council of the City of Morro Bay, California authorizes the submittal of the application to the California Energy Commission's EECBG Program ® for funds to execute the proposed project described in the CEC Energy Audit Letter Report dated November 19, 2009. ® Resolution No. 62-09 Page Two BE IT ALSO RESOLVED, if recommended for funding by the California Energy Commission, the City Council of the City of Morro Bay, California authorizes the City of Morro Bay to accept a grant award up to the amount of this application for $ 55,983, and, that the Recreation and Parks Director acting for the City of Morro Bay is hereby authorized and empowered to execute in the name of the City of Morro Bay, all necessary contracts and agreements, and amendments hereto, to implement and cant' out the purposes specified in the application. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 14'h day of December, 2009 on the following vote: AYES: Borchard, Grantham, Smukler, Winholtz, Peters NOES: None ABSENT: None ® ATTEST: At R, City Clerk RESOLUTION NO.61-09 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA AUTHORIZING AND DELEGATING AUTHORITY TO THE UTILITIES/CAPITAL PROJECTS MANAGER FOR THE PURSUIT OF A PROPOSITION 84 WATER TREATMENT GRANT THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay has the authority to construct, operate, and maintain the City of Morro Bay Water System; and WHEREAS, the City of Morro Bay desires to preserve the provision and protection of the drinking water supplied to the consumers of the City of Morro Bay Water System, therefore; NOW, THEREFORE, BE IT RESOLVED by the Morro Bay City Council that, pursuant and subject to all of the terms and provisions of The Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Bond Act of 2006 (Proposition 84) and all amendments thereto, application be made to the State of ® California for funding; and BE IT FURTHER RESOLVED that the Utilities/Capital Projects Manager of said City of Morro Bay is hereby authorized and directed to cause the necessary data to be prepared, investigations to be performed and application to be signed and filed with the State of California. PASSED AND ADOPTED by the City Council of the City of Morro Bay at regular meeting thereof held on the 14th day of, December 2009 on the following vote: AYES: Borchard, Grantham, Smukler, Winholtz, Peters NOES: None ABSENT: None (47 J E PETERS, Mayor ATTEST: 11 ® BRIDGE BAUER, City Clerk 0 RESOLUTION NO.60-09 AUTHORIZATION FOR THE CITY OF MORRO BAY TO ENTER INTO ABANDONED WATERCRAFT ABATEMENT FUND CONTRACT WITH THE DEPARTMENT OF BOATING AND WATERWAYS THE CITY COUNCIL City of Morro Bay, California WHEREAS, City of Morro Bay (City) applied for a grant from the Department of Boating and Waterways (DBW) under the Abandoned Watercraft Abatement Fund (AWAF); and WHEREAS, DBW awarded a grant of $13,500 under the AWAF program to the City for removal of derelict/abandoned vessels and hazards to navigation; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, that the City of Morro Bay is hereby authorized to enter into AWAF Contract 909-214-503 for the removal of derelict/abandoned vessels and hazards to navigation in the amount of $13,500. ® 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 grant agreement. PASSED AND ADOPTED by the City Council of the City of Morro Bay at regular meeting thereof held on the 14th day of December, 2009 on the following vote: AYES: Borchard, Grantham, Smukler, Winholtz, Peters NOES: None ABSENT: None ATTEST: R 1. 1k 11 ® RESOLUTION NO.59-09 APPROVAL OF AMENDMENT #4 TO THE LEASE AGREEMENT 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, in 2007 the Morro Bay City Council directed staff to put out a request for proposals for development of said Lease Site; and WHEREAS, on September 24, 2007 the City Council designated Burt Caldwell and Doug Redican as primary proposer for said Lease Site; and WHEREAS, Mr. Caldwell is still working on permitting and plans for the redevelopment; and WHEREAS, the existing lease agreement with Violet Leage expires on March 31, 2010; and WHEREAS, Ms. Leage has requested a one-year extension to the term of the lease agreement ® for said Lease Site in order to maintain two successful waterfront business operations on the site while the redevelopment plans are being processed. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, that Amendment #4 to the lease agreement for Lease Site 87-88/87W-88W extending the term of the lease through March 31, 2011 is hereby approved. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 14'h day of December, 2009 on the following vote: AYES: Borchard, Grantham, Smukler, Winholtz NOES: Peters ABSENT: None J E PETERS, ayor ATTEST: IDGET],BBRAUER, City Clerk ® AMENDMENT #4 LEASE AGREEMENT FOR LEASE SITES 87-88/87W-88W This Amendment #4 (the "Amendment") is made and entered into as of this day of , 2009 by and between the City of Morro Bay, a municipal corporation of the State of California (hereinafter "City°) and Violet Leage, (hereinafter "Tenant") to amend that certain ground lease for Lease Sites 87-88/87W-88W, between City and Tenant dated April 1, 1970 (the "Lease"). WHEREAS, the City is grantee and lessor of granted Tidelands within the City limits, including those lands known as Lease Sites 87-88/87W-88W, and the adjacent westerly submerged land's, and; WHEREAS, on April 1, 1970 City executed a long-term ground lease for Lease Site 87-88/87W- 88W with UPTE, Inc., which lease was subsequently assigned to Ralph and Shirley Gunther, and; WHEREAS, on February 27, 1976 said lease was amended to clarify building conditions on the site, and; WHEREAS, on September 23, 1997 said lease was assigned from Ralph and Shirley Gunther to George Leage, and; ® WHEREAS, on April 10, 2000 said lease was amended to add a new use "operation of transient occupancy unit" and to require reconstruction of the second floor of the improvements on the site in conformance with CUP 36-99 by March 31, 2003 in consideration of City extending the terms of the lease until September 30, 2018, and; WHEREAS, on June 17, 2003 City extended the deadline for reconstruction of the second floor until December 31, 2004, and acknowledged that CUP 36-99 had expired and was replaced by CUP 21-02, and; WHEREAS, on April 12, 2004 City approved assignment of the lease from George Leage to his sister, Violet Leage, and; WHEREAS, in 2006 Tenant informed the City that they could not complete the improvements permitted under CUP 21-02; and, WHEREAS, on July 10, 2006 City and Tenant mutually agreed to Amendment #3 to the lease to reset the termination date of the Lease Agreement to March 31, 2010, and; WHEREAS, City is working with another party to develop a Conference Center at this site, but said Conference Center is not currently permitted and cannot reasonably be expected to begin construction within the next year. NOW THEREFORE, City and Tenant mutually agree to extend the term of the Lease for one year until March 31, 2011 with all other terms and conditions of the lease to remain in full force ® and effect. ® RESOLUTION NO.58-09 APPROVAL OF AN INTERIM LEASE AGREEMENT FOR LEASE SITE 96/96W, LOCATED AT 945 EMBARCADERO, WITH STAN VAN BEURDEN 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 96/96W; located at 945 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, on July 21, 2009 three qualified proposals were received at City Hall; and, WHEREAS, on September 14, 2009 the City Council approved Resolution 448- 09 designating Stan Van Beurden as the primary proposer for Lease Site 96/96W and designating Held Family as secondary proposer for Lease Site 96/96W; and, WHEREAS, the existing lease agreement for Lease Site 96/96W expires on January 31, 2010 and the current tenant is seeking another location for operation of their business; and, WHEREAS, to provide for interim improvements and for operation of a viable business on the Lease Site during the permitting process, the City of Morro Bay and Stan Van Beurden have agreed to enter into an interim three-year and four month Lease Agreement for Lease Site 96/96W during which time Mr. Van Beurden will operate a restaurant on the site and complete the permitting process for the Lease Site 96/96W redevelopment plan. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, that the interim Lease Agreement for Lease Site 96/96W between the City of Morro Bay and Flying Dutchman Enterprises, Stan Van Beurden sole shareholder is hereby approved and that the Mayor is hereby authorized to execute said Lease Agreement. BE IT FURTHER RESOLVED, that the City Council hereby authorizes early termination of the existing lease agreement with Danielle Mandella in the month of January 2010 if Ms. Mandella so desires. 11 ® Resolution No. 58-09 Page Two PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 14'h day of December, 2009 on the following vote: AYES: Borchard, Grantham, Smukler, Winholtz, Peters NOES: None ABSENT: None ATTEST: 0'&r� BRIDGE1 E RESOLUTION NO.46-09 ® A RESOLUTION OF THE CITY COUNCIL OF ® THE CITY OF MORRO BAY, CALIFORNIA, AMENDING THE 2009/10 MASTER FEE SCHEDULE n LJ 11 THE CITY COUNCIL City of Morro Bay, California WHEREAS, on June 22, 2009, the City Council adopted Resolution No. 34-09, which adopted the 2009/10 Master Fee Schedule; and WHEREAS, legislative changes have occurred that require amendments to that Schedule. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, that the Master Fee Schedule be amended as follows: FEE DESCRIPTION OLD FEE NEW FEE Liveaboard application Annually - $111 Biennially - $172 Parkin fines: Parking within a Parkway $45.00 $50.00 No Parking Areas $45.00 $50.00 Posted Restricted Parking $45.00 $50.00 72-Hour Parking $55.00 $60.00 Vehicle Repair on Public Street $45.00 $50.00 Parking on Grade without Turning Wheels $45.00 $50.00 Parking within Space Marking $45.00 $50.00 Curb Markings red, yellow, etc. $45.00 $50.00 Parking in Passenger Loading Zone $45.00 $50.00 Parking in Alley $45.00 $50.00 Limited Time Parking $45.00 $50.00 Violating Diagonal Parking $45.00 $50.00 No Stopping in Designated Area $45.00 $50.00 Overnight Camping $101.00 $106.00 Expired registration $45.00 $50.00 Parking in Fire Lane $155.00 $160.00 Blocking Driveway $45.00 $50.00 Blocking Wheelchair Access $98.00 $103.00 Parking within 15' of Fire Hydrant $105.00 $110.00 Blocking Sidewalk $45.00 $50.00 Blocking a Bus Stop $80.00 $85.00 Blocking Intersection Gridlock $170.00 $175.00 Curb Parkin 18" or Wrong Way $45.00 $50.00 Parking in a Fire Lane $45.00 $50.00 Vehicle Abandonment on Street $305.00 $310.00 Handicap $280.00 $285.00 ® PASSED, AND ADOPTED, by the City Council of the City of Morro Bay, at a regular meeting thereof held on the 24i° day of August 2009, by the following vote: AYES: Borchard, Grantham, Smukler, Winholtz, Peters NOES: None ABSENT: None BRIDGETT BAUER, City Clerk E E C 11 11 City of Morro Bay Master Fee Schedule Police Department (See Notes) Parking Fines [1]: Parking within a. Parkway No Parking Areas Posted Restricted Parking 72-Hour Parking Vehicle Repair on Public Street Parking on Grade without Turning Wheels Parking within Space Marking Curb Markings (red, yellow, etc.) Parking in Passenger Loading Zone Parking in Alley Limited Time Parking Violating Diagonal Parking No Stopping in Designated Area Overnight Camping Expired registration Parking in Fire Lane Blocking Driveway Blocking Wheelchair Access Parking within 15' of Fire Hydrant Blocking Sidewalk Blocking a Bus Stop Blocking Intersection Gridlock Curb Parking 18" or Wrong Way Parking in Bike Lane Vehicle Abandonment on Street Handicap [1) Amended August 24, 2009 MBMC Vehicle Code 10.36.020 10.36.030 10.36.040 10.36.060 10.36.080 10.36.090 10.36.110 10.36.120 10.36.150 10.36.160 10.36.170 10.36.190 10.36.200 08.24.010 4000(a) 22500.1 22500e 22500L 22514 22500f 22500i 22526 22502A 21211b 22523 22507.8A $ 4580 $ 50.00 $ 45.00 $ 50.00 $ 45.08 $ 50.00 $ 5560 $ 60.00 $ 45.00 $ So.00 $ 45.00 $ 50.00 $ 45.00 $ 50.00 $ 45.00 $ 50.00 $ 45.00 $ 50.00 $ 15.90 $ 50.00 $ 45:00 $ 50.00 $ 45.00 $ 50.00 $ 45:00 $ 50.00 $ 191.00 $ 106.00 $ 45.00 $ 50.00 $ 155.00 $ 160.00 $ 45.09 $ 50.00 $ 98.99 $ 103.00 $ 105.99 $ 110.00 $ 45.00 $ 50.00 $ 80.00 $ 85.00 $ 170.00 $ 175.00 $ 45.00 $ 50.00 $ 45.00 $ 50.00 $ 395.00 $ 310.00 $ 280.00 $ 285.00 19 City of Morro Bay ® Master Fee Schedule Harbor Department (See Notes) Slips Commercial Fishing Lease - monthly per linear foot $ 3.85 Transient Slip Lease - monthly per linear foot $ 7.60 Transient Slip Rental - daily per linear foot $ 0.85 Head Float Berth - Flat monthly rate $ 169.00 T-Piers Dockage - daily per liner foot $ 0.18 Dockage - after 90 continuous days per linear foot $ 0.31 Floating Dock - daily per linear foot $ 0.18 Dry Storage Daily - Flat rate $ 2.60 ® Liveaboard Fees Application Fee - yearly biennial [1) $ 111.00 $170.00 City Moorings - monthly service fee $ 14.50 City Slips - monthly service fee $ 29.00 Moorings City -Owned - monthly $ 169.00 Private -Owned Tackle - monthly $ 74.50 City -Owned - daily per linear foot $ 0.18 A1-5 Anchorage Area - days 1-5 per linear foot $ 0.00 A1-5 Anchorage Area - after 5 days per linear foot $ 0.16 Temporary Moorage - large marine equip. or vessel - per day $ 151.00 Non -Impounded boats on Impound Mooring - temporary only: Monthly per linear foot $ 6.50 Impound mooring rate - daily per linear foot $ 0.57 Mooring transfer fee (Flat rate) $ 1,000.00 [t] Amended august 24, 2009 26 City of Morro Bay ® Master Fee Schedule Harbor Department Notes Any account past due over 10 days will be charged a 10% penalty. Emergency vessel assistance after hours will require a minimum of 4.5 hours at the set rate. All dockage is based on a 36' minimum vessel length or length of the slip, whichever is larger. Temporary moorage related to marine construction equipment or vessels of unusual size - see fees for Temporary Moorage - Large Marine Equip. or Vessel A 10% discount is available for leased commercial slips and moorings when paid one year in advance. Account must be paid for entire year in advance. Transient slip users shall be limited to 3 months in any slip as long as there are vessels appropriate ® to the slip size on the sublease waiting list. The Harbor Director may waive dockage fees for Tall Ships visiting Morro Bay Harbor for any period less than 30 days with written notice. Parking fee applies to the boat trailer spaces at the boat launch ramp, and Tidelands Park trailer and towing vehicle spaces. Any liveaboard application, submitted during the period January 1 through June 30, is good only for that fiscal year and the following fiscal year, but will be prorated by reducing the liveaboard application fee, stated herein, by 25%. 11 ® RESOLUTION NO.45-09 AUTHORIZATION FOR THE CITY OF MORRO BAY TO ENTER INTO GRANT AGREEMENT #08-101-102 WITH THE DEPARTMENT OF BOATING AND WATERWAYS FOR STATE PARK MARINA DREDGING STUDIES, PERMITS AND MONITORING AND AUTHORIZATION FOR THE CITY OF MORRO BAY TO ENTER INTO A CONSULTING SERVICES AGREEMENT WITH ANCHOR ENVIRONMENTAL TO ACQUIRE STATE PARK MARINA DREDGING PERMITS RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA 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, the DBW has agreed to enter into Grant Agreement 908-101-102 with the City of Morro Bay to provide funding for acquiring dredging permits and associated studies, for the State Park Marina Rehabilitation project to maintain and improve operations at the existing marina while long-term improvements are evaluated; and, WHEREAS, the City has identified Anchor Environmental as a consultant to provide the permitting and associated studies for said maintenance dredging. 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 Planning Grant for the State Park Marina Rehabilitation Project in the amount of $297,000, and that the Harbor Director is hereby authorized to act as the City's agent in regards to all aspects of the grant agreement. BE IT FURTHER RESOLVED, that the Harbor Director is hereby authorized to enter into the consulting services agreement with Anchor Environmental and that the Harbor Director is hereby authorized to act as the City's agent in regards to all aspects of ® the consulting services agreement. ® PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting held thereof on the 24`h day of August 2009, by the following vote: AYES: Borchard, Grantham, Smukler, Winholtz, Peters NOES: None ABSENT: None ATTEST: BRrDGEIq BAUER, City Clerk E E ® RESOLUTION NO.44-09 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA APPROVAL OF LANDLORD'S ESTOPPEL AGREEMENT FOR LEASE SITE 122-123/122W-123W, EXT. 122W-123W, LOCATED AT 1205 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 122-123/122W-123W, Ext. 122W-123W; and WHEREAS, said lease site was conditionally assigned to THMT (Troy and Heather Leage) in April 2009; and WHEREAS, the lessee is financing the lease site and the lender, Mission Community Bank, is requesting that the City authorize execution of a Landlord's Estoppel for Lease Site 122-123/122W-123W, Ext. 122W-123W; and ® WHEREAS, the City Attorney has reviewed and must approve a final Landlord's Estoppel for said Lease Sites; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, that the Landlord's Estoppel for Lease Site 122-123/122W-123W, Ext. 122W-123W is hereby approved and that the Mayor is hereby authorized to execute said document contingent upon City Attorney approval of the final format. BE IT FURTHER RESOLVED that approval of the Landlord's Estoppel and assignment of lease is conditional upon receipt of the final documents, as approved by the City Attorney and signed by all parties, by August 31, 2009. PASSED AND ADOPTED b� the City Council of the City of Morro Bay at a regular meeting thereof held on the 10 day of August, 2009 on the following vote: AYES: Borchard, Grantham, Smukler, Winholtz, Peters NOES: None ABSENT: None % j J CE PETER, Mayor ATTEST: BRIDGE BAUER City Clerk 0 RECORDATION REQUESTED BY: MISSION COMMUNITY BANK B amass Banking Center 34BO Higuem Street, Suite 100 San Luis Obispo, CA 93401 WHEN RECORDED MAIL TO: MISSION COMMUNITY BANK Business Banking Center 3480 Higutra Street Suite 100 San Luis Obispo, CA 93401 SEND TAX NOTICES TO: THMT, INC. 1205 EMBARCADERO FOR RECORDERS USE ONLY MORRO BAY CA 93442 LANDLORD'S ESTOPPEL CERTIFICATE THIS LANDLORD'S ESTOPPEL CERTIFICATE dated August 3, 2009, is made and executed among THMT, INC., whose address Is 1205 EMBARCADERO, MORRO BAY, CA 93442 ("Trustor"); MISSION COMMUNITY BANK, Business Banking Center, 3480 Higuera Street, Suite 100, San Luis Obispo, CA 93401 ("Lender"); and CITY OF MORRO BAY ("Landlord"). Truster and Lender have entered into, or are about to enter into, a financial transaction whereby Lender has acquired or will acquire a security interest or other lien on Trustofs leasehold Interest in the Property described below. To Induce Lender to extend one or more loans or other financial accommodations to Truster against such security interest In the Property and for other valuable consideration, with knowledge that Lender is relying thereon, Landlord and Truster hereby agree with Lende or as follows: THE LEASE. Landlord has leased the Property to Trustor pursuant to a lease (the "Lease") dated April 27, 1998 'Rea propertyT located DESCRIPTION. TIO LU 5 e Lease Covets the following llo ingforn�bed real property, together with all improvements thereon (the SAN BISPO See EXHIBIT "A', winch is attached to this Certificate and made a part of this Certificate as If fully set forth herein. The.Real Property or its address is commonly known as 1205 EMBARCADERO, MORRO BAY, CA 93442. The Assessor's Parcel Number for the Real Property is 940-000-147. ESTOPPEL Landlord and Truster hereby jointly and severally represent and warrant to Lender that: Lease in Effect. The Lease (f) has been duly executed and accepted by Landlord and Truster, (it) Is in fug force and effect, and (iii) has net been modified or changed, either in writing or orally, except as reflected in the copy of the Lease provided to Lender. No Default. As of the date of this Certificate, (i) all conditions and obligations to be performed by either Landlord or Truster under the Lease, to the dale hereof, have been satisfied; (11) there exists no breach, default, or event or condition which, the giving of notice or live passage of time, or both, would constitute such a breach or default under the Lease; and (iii) there are no existing claims, defenses or offsets against obligations of either Landlord or Truster under the Lease, including any against rents due or to become due under the terms of the Lease. Entire Agreement The Lease constitutes the entire agreement between Landlord and Truster with respect to the Lease of the Property. No Prepaid Rent. No deposits or prepayments of rent have been made in connection with the Lease, except as may be described above in the summary description of the Lease. AGREEMENTS. Landlord and Truster hereby jointly and severally agree with Lender that, during all such times as Lender is the beneficiary of the security interest in the Property described above: Modification, Termination and Cancellation. Landlord and Truster will not consent to any modification, termination or cancefiation of the Lease unless Lender first wnsents thereto In writing. Notice-of-Default-Landlord-will-notify-Lender_in_writing concurrently with any notice given to Truster of any breach or default on the part of Truster under the Lease, and Landlord agrees that Lander shall htheave right (but nota thobilgatior cure -any breach -or- -writing t default specified in such notice within the time periods set forth below and Landlord will not declare a default of the Lease, if Lender cures such default within thirty (30) days from and after expiration of the time period provided in the Lease for the cure thereof by rty (30) day period, the Truster; Provided, however, that if such default cannot 30) da th diligenceperiod to remedy the same within hall be deemed sufficient so long as commencement of action by lender within such thirty ( ) Y P Lender pursues such are with diligence. nal representatives, successors and MISCELLANEOUS PROVISIONS. This Certificate shall extend to and bind the respective heirs, parse assigns of the parties to tints Certificate. This Certificate shall be governed by and construed in accordance with the laws of the State of ® California. If Landlord is other than an individual, any agent or other person executing this Certificate on behalf of Landlord represents and warrants to Lender that he or she has full power and authority to execute this Certificate on Landlord's behalf. Lender shall not be deemed to have waived any rights under this Certificate unless such waiver is in writing and signed by Lender. No delay or omission on the part of Lender in exercising any right shall operate as a waiver of such right or any other right. A waiver by Lender of a prevision of this LANDLORD'S ESTOPPEL CERTIFICATE Loan No: 4558 (Continued) Page 2 Certificate shall not constitute a waiver of or prejudice Lender's right otherwise to demand strict compliance with that provision or any other prevision. TRUSTOR AD ENAND EACH LANDLORD AGREES EACH CKNOWLEDTHIS HCERN FICATEDIS DATED ALL HAUGUST 35102009 OF THIS LANDLORD'S ESTOPPEL CERTIF TRUSTOR: THMT, INC. By: Date TROY LEAGE, President of THMT, INC. By: Date HEATHER LEAGE, Secretary of THMT, INC. LANDLORD: CITY OF MORRO B By. � D Sit na for CITY OF MOR O BAY LENDER MISSION COMMUNITY BANK x Date Authorized Officer STATE OF _ COUNTY OF On CERTIFICATE OF ACKNOWLEDGMENT 2g before me, (here insert name and title of the officer) personally appeared TROY LEAGE and HEATHER LEAGE, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) islare subscribed to the within instrument and acknowledged to me that helshelthey executed the same in his/her/their authorized capaclty(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument -- I certihy.under.PENAL WITNESS my hand and official seal. Signature Slate of Califomia that the foregoing paragraph is true and correct. (Seal) 11 E E E 11 LANDLORD'S ESTOPPEL CERTIFICATE Loan No: 4558 (Continued) Page 3 CERTIFICATE OF ACKNOWLEDGMENT STATE OF Uttf'09-NI A- ) ) SS COUNTYOF 'SAM LI LS 0136 O ) On A"ILST 211. 2o__0 before me, FiAi�vJOR`/ aLtl NOTARY F""L1� (here m art name an trde of tha— of�fi .'er) personally appeared JAN ICE who proved to me on the bast of satisfactory evidence to be I acknowledged to me the he executed the same in# the instrument the person(aq, or the entity upon behalf of which os3r and that b the instrument. I certify under PENALTY OF PERJURY under the laws of the State of Cafitomia that the foregoing paragraph is true and correct. ALMMARJORY;= it CONIM.61Im762 Ln WITNESS my hand and official seal. 8{NIllaeBl®000IMtY MJ Cann �tbv; 1011 Signature CERTIFICATE OF ACKNOWLEDGMENT STATE OF ) SS COUNTY OF (Seal) On 20 before me, (here insert name and title of the officer) personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authoraed capaclMies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the persons) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the Stale of California that the foregoing paragraph Is true and correct. WITNESS my hand and official seal. Signature PR-3 RESOLUTION 56-09 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY AMENDING THE HOUSING ELEMENT OF THE GENERAL PLAN (CASE NO. A00-008) THE CITY COUNCIL City of Morro Bay, California WHEREAS, the Planning Commission of the City of Morro Bay held a duly noticed public hearing on October 19, 2009 to consider amendments to the Housing Element of the General Plan contained in the 2009 Housing Element and recommended approval of said amendments to the City Council; and WHEREAS, said Housing Element complies with the City of Morro Bay objectives, criteria and procedures for implementation of the California Environmental Quality Act (CEQA) in that a Negative Declaration was prepared and no other documentation is deemed necessary; and WHEREAS, at the November 9, 2009 Public Hearing after consideration of the staff report and the testimony of all persons, if any, wishing to testify, the City Council did find the following facts and reasons to justify their action in this matter: ® 1. These amendments to the Housing Element are consistent with the requirements of State Law with respect to the contents required for the preparation of the Housing Element; and 2. These amendments are internally consistent with all other elements of the General Plan and the Local Coastal Program of the City of Morro Bay. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City if Morro Bay, California, determines as follows: SECTION 1. That the above recitations are true and correct and constitute the findings of the City Council in this matter; and SECTION 2. The City Council finds that the Housing Element complies with the requirements of Government Code Section 65302, as provided in Government Code Article 10.6. SECTION 3. The City Council does hereby approve Case No. A00-008 amending the Housing Element as shown in Attachment 4 as amended by the City Council with minor corrections from the State Department of Housing and Community Development as the Housing Element of the General Plan of the City of Morro Bay. ® SECTION 4. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect. ® Resolution No. 56-09 Page Two PASSED, APPROVED, AND ADOPTED, by the City Council of the City of Morro Bay, on the day of November 9, 2009, by the following vote to wit: AYES: Borchard, Grantham, Smukler, Peters NOES: Winholtz ABSENT: None ATTEST:41 .}{- BRIDGET AUER, City Clerk rE ® RESOLUTION NO.55-09 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA ACCEPTING $100,000 GRANT FROM THE STATE OF CALIFORNIA CITIZENS OPTION FOR PUBLIC SAFETY (COPS) PROGRAM THE CITY COUNCIL City of Morro Bay, California WHEREAS, Government Code Sections 30061 through 30064 is providing supplemental funds for front line municipal police services after the City adopted its 2009-2010 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 or actual grant funds received; and WHEREAS, the required public hearing has been held. NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Morro Bay, California, that the expenditure of those funds is hereby authorized 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 thereof held on the 9'h day of November 2009, on the following vote: AYES: Borchard, Grantham Smukler, Winholtz, Peters NOES: None ABSENT: None ATTEST: BRIDGET BAUER, City Clerk ri1 U 0 RESOLUTION NO. 54-09 AUTHORIZATION FOR THE CITY OF MORRO BAY TO ENTER INTO GRANT AGREEMENT #08-127-949 WITH THE DEPARTMENT OF BOATING AND WATERWAYS FOR STATE PARK MARINA MAINTENANCE DREDGING 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 and other costs associated with the rehabilitation project and, WHEREAS, funding for dredging studies, permitting and monitoring was approved through acceptance of DBW agreement 908-101-102 in August 2009; and, WHEREAS, the DBW has agreed to enter into Grant Agreement #08-127-949 with the City of Morro Bay to provide funding for actual maintenance dredging costs for the State Park Marina to maintain and improve operations at the existing marina while long-term improvements are evaluated. 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 DBW grant agreement 908- 127-949 for the State Park Marina Maintenance Dredging in the amount of $300,000. 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 grant agreement. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting held thereof on the 9 h day of November 2009, by the following vote: AYES: Borchard, Grantham, Smukler, Winholtz, Peters NOES: None ABSENT: None ATTEST: ® BRIDGEq BAUER, City Clerk ® RESOLUTION NO.53-09 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY APPROVING A BUSINESS LICENSE APPLICATION FOR AN ARCADE IN CONFORMANCE WITH MORRO BAY MUNICIPAL CODE 5.04.330 AT 725 EMBARCADERO ROAD THE CITY COUNCIL City of Morro Bay, California WHEREAS, Doug Redican applied for a business license for a "Family Fun Zone" video arcade located at 725 Embarcadero; and WHEREAS, pursuant to the Morro Bay Municipal Code, the license application shall be submitted to the City Council for its action and that the Police Chief shall cause to have taken, fingerprints of all business supervisors and employees of the arcade and to prepare a confidential background investigation to be assessed in a report to the City Council; and WHEREAS, after review by the Police Department, the following conditions are is recommended: 1. Interior lighting within the premises shall be adequate enough to allow clean view of the interior of the establishment from the exterior doorway. 2. No furniture shall be placed in the premises that would encourage loitering 3. The hours of operation shall be limited to 11:00 a.m. to 10:00 p.m. 4. There must be at least one approved manager on location at Rose's Landing who will have the responsibility of supervising the arcade. The approved manager(s) must have their fingerprints and background investigation completed by the Police Department as required by the Municipal Code Section 5.05.330 prior to assuming those duties. 5. A closed circuit television/security camera monitoring system will be installed and operation at all times during business hours. Such system will consist of a minimum amount of cameras to adequately cover the premises. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that a business license, with the above conditions, is approved for the Rose's Landing Family Fun Zone arcade located at 725 Embarcadero. 11 ® Resolution No. 53-09 Page Two BE TT FURTHER RESOLVED by the City Council of the City of Morro Bay that this action supports new business in Morro Bay and is in conformance with the goals set by the Morro Bay City Council during their goal -setting workshop held in February 2009, specifically "develop ways to retain Basting businesses and attract new ones". PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held this 12i° day of October 2009 by the following roll call vote: AYES: Borchard, Smukler, Winholtz, Peters NOES: None ABSENT: Grantham ® ATTEST: "ems,/ BRIDGET BAUER, CITY CLERK r ® RESOLUTION NO.52-09 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA APPROVING THE APPLICATION FOR GRANT FUNDS FOR THE PER CAPITA GRANT PROGRAM UNDER THE CALIFORNIA CLEAN WATER, CLEAN AM SAFE NEIGHBORHOODS, AND COASTAL PROTECTION ACT OF 2002 FOR EN4PROVEMENTS TO LILA KEISER PARK THE CITY COUNCIL City of Morro Bay, California WHEREAS, the people of the State of California have enacted the Per Capita Grant Program which provides funds for the acquisition and development of neighborhood, community, and regional parks and recreation land and facilities; and WHEREAS, the California Department of Parks and Recreation has been delegated the responsibility for the administration of the grant program, setting up necessary procedures; and WHEREAS, said procedures established by the California Department of Parks and Recreation require the Applicant's Governing Body to certify by resolution the approval of the ® Applicant to apply for the Per Capita Allocation; and WHEREAS, the Applicant will enter into a Contract with the State of California, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, that the City Council of the City of Morro Bay hereby: 1. Approves the filing of an Application for the local assistance fund from the Per Capita Grant Program under the California Clean Water, Clean Air, Safe Neighborhood Parks, and Coastal Protection Act of 2002; and 2. Certifies that the Applicant has or will have sufficient funds to operate and maintain the Project(s); and 3. Certifies that the Applicant has reviewed, understands and agrees to the General Provisions contained in the Contract shown in the Procedural Guide; and 4. Appoints the Recreation and Parks Director as agent to conduct all negotiations, execute and submit all documents including, but not limited to Applications, agreements, payment requests and so on, which may be necessary for the completion of Project(s). PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 12th day of October, 2009 on the following vote: AYES: Borchard, Smukler, Winholtz, Peters NOES: None ABSENT: Grantham ATTEST: BRIDGET BAUER, City Clerk 0 El ® RESOLUTION No. 51-09 RESOLUTION OF THE CITY COUNCH. OF THE CITY OF MORRO BAY, CALIFORNIA OF ITS INTENTION TO SELL CITY -OWNED REAL PROPERTY LOCATED AT 781 MARKET AND AT THE CORNER OF PACIFIC AND MARKET IN MORRO BAY, CALIFORNIA THE CrrY COUNCIL CrrY OF MORRO BAY, CALIFORNIA WHEREAS, the City purchased real property located at the Corner of Pacific and Market Street, Morro Bay, California in 2001; and WHEREAS, the City purchased real property located at 781 Market Street, Morro Bay, California in 2002; and WHEREAS, the property located at the Corner of Pacific and Market Street was purchased using parking in lieu funds and was dedicated as a parking lot. Subsequently, the City has determined that this property is underutilized because of its location away from the Embarcadero and Downtown area; and ® WHEREAS, the property located at 781 Market Street was part of a purchase that also included the property at 714 Embarcadero. Since the City purchased the properties, the property at 781 Market Street has been vacant and the City has determined that this property has no potential to be developed as a City facility; and WHEREAS, pursuant to Government Code section 37350, the City wishes to sell the City - owned real property located at 781 Market and the City -owned real property located at the Comer of Pacific and Market in Morro Bay, California for the common benefit of its citizens. Now, THEREFORE, be it resolved that the City Council of the City of Morro Bay notices the citizens of the City of Morro Bay of its intention to sell City -owned real property located at 781 Market and at the Comer of Pacific and Market in Morro Bay, California; and BE rr FURTHER RESOLVED, that the City shall hold a hearing on October 12, 2009 for any person who wishes to protest the sale of the City -owned property located at 781 Market and at the Comer of Pacific and Market in Morro Bay, California; and BE rr FURTHER RESOLVED, that pursuant to Government Code section 37422, the City shall post proper notice and proper publication of this Resolution; and BE IT FURTHER RESOLVED, that on October 12, 2009 at the regularly scheduled Council meeting, final action shall be taken on this matter. Resolution 5 1-09 Page 2 of 2 11 PASSEL) AND ADOMD by the City Council of the City of Morro Bay at a regular meeting thereof held on the 28`h day of September, 2009 by the following vote: AYES: Borchard, Grantham, Smukler, Winholtz, Peters NoEs: NoNE ABSENT: NONE ABSTAIN: NONE ATTEST: k �• �� i'1� i• ® RESOLUTION NO.50-09 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA DECLARING A CITY-WIDE WATER EMERGENCY THE CITY COUNCIL City of Morro Bay, California WHEREAS, the annual maintenance period for the State Water Project shutdown is forthcoming and the City's water supply will at a minimum become constrained; and WHEREAS, it is in the interest of the health, safety and general welfare of the residents of the City of Morro Bay to conserve the City's water supply during the State Water Project shutdown; and WHEREAS, in May 1993 the City of Morro Bay proactively established preparations for impending water supply shortages and emergencies by adopting Mandatory Water Conservation Requirements in the Morro Bay Municipal Code Section 13.04.320 et sec; and WHEREAS, in accordance with Morro Bay Municipal Code Section 13.04.330 — ® Council Water Conservation Powers, that the City Council declares an emergency water condition exists. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Morro Bay, California, that it is in the public interest to institute Mandatory Water Conservation Requirements during the State Water Project shutdown; and NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Morro Bay, California, that the Public Services Director is hereby authorized to implement Severe Water Supply Conditions, Section 13.04.345C of the Morro Bay Municipal Code in conjunction with his powers of enforcement as outlined in Section 13.04.340 of the Morro Bay Municipal Code that will best conserve water during the State Water Project shutdown. NOW, THEREFORE, BE IT RESOLVED, the conservation measures shall begin October 19, 2009 when the State Water Project annual maintenance shutdown is tentatively scheduled ® Resolution No. 50-09 Page Two PASSED AND ADOPTED by the City Council of the City of Morro Bay at regular meeting thereof held on the 28th day of September 2009 on the following vote: AYES: Borchard, Grantham, Smukler, Winholtz, Peters NOES: None ABSENT: None ATTEST: BRIDGETT AVER, City Clerk 11 r ® RESOLUTION NO.49-09 A RESOLUTION APPROVING THE FORM OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF A PURCHASE AND SALE AGREEMENT AND RELATED DOCUMENTS WITH RESPECT TO THE SALE OF THE SELLER'S PROPOSITION 1A RECEIVABLE FROM THE STATE; AND DIRECTING AND AUTHORIZING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH THE CITY COUNCIL City of Morro Bay, California WHEREAS, pursuant to Section 25.5 of Article XIII of the California Constitution and Chapter 14XXXX of the California Statutes of 2009 (Assembly Bill No. 15), as amended (the "Act"), certain local agencies within the State of California (the "State") are entitled to receive certain payments to be made by the State on or before June 30, 2013, as reimbursement for reductions in the percentage of the total amount of ad valorem property tax revenues allocated to such local agencies during the State's 2009-10 fiscal year (the "Reimbursement Payments"), which reductions have been authorized pursuant to Sections 100.05 and 100.06 of the California Revenue and Taxation Code; and WHEREAS, the City of Morro Bay, a local agency within the meaning of Section 6585(f) of the California Government Code (the "Seller"), is entitled to and has ® determined to sell all right, title and interest of the Seller in and to its "Proposition ]A receivable", as defined in Section 6585(g) of the California Government Code (the "Proposition 1 A Receivable"), namely, the right to payment of moneys due or to become due to the Seller pursuant to Section 25.5(a)(1)(B)(iii) of Article XIII of the California Constitution and Section 100.06 of the California Revenue and Taxation Code, in order to obtain money to fund public capital improvements or working capital; and WHEREAS, the Seller is authorized to sell, or otherwise dispose of, its property as the interests of its residents require; and WHEREAS, the California Statewide Communities Development Authority, a joint exercise of powers authority organized and existing under the laws of the State (the "Purchaser"), has been authorized pursuant to Section 6588(x) of the California Government Code to purchase the Proposition I Receivable; and WHEREAS, the Purchaser desires to purchase the Proposition 1 A Receivable and the Seller desires to sell the Proposition IA Receivable pursuant to a purchase and sale agreement by and between the Seller and the Purchaser in the form presented to this City Council (the "Sale Agreement") for the purposes set forth herein; and 2 ® Resolution No. 49-09 Page Two WHEREAS, in order to finance the purchase price of the Proposition IA Receivable from the Seller and the purchase price of other Proposition IA Receivables from other local agencies, the Purchaser will issue its bonds (the "Bonds") pursuant to Section 6590 of the California Government Code and an Indenture (the "Indenture"), by and between the Purchaser and [TRUSTEE], as trustee (the "Trustee"), which Bonds will be payable solely from the proceeds of the Seller's Proposition I Receivable and other Proposition I A Receivables sold to the Purchaser by local agencies in connection with the issuance of the Bonds; and WHEREAS, the Seller acknowledges that (i) any transfer of its Proposition I Receivable to the Purchaser pursuant to the Sale Agreement shall be treated as an absolute sale and transfer of the property so transferred and not as a pledge or grant of a security interest by the City of Morro Bay to secure a borrowing, (ii) any such sale of its Proposition IA Receivable to the Purchaser shall automatically be perfected without the need for physical delivery, recordation, filing or further act, (iii) the provisions of Division 9 (commencing with Section 9101) of the California Commercial Code and Sections 954.5 to 955.1 of the California Civil Code, inclusive, shall not apply to the sale of its Proposition I A Receivable, and (iv) after such transfer, the Seller shall have no right, title, ® or interest in or to the Proposition I Receivable sold to the Purchaser and the Proposition IA Receivable will thereafter be owned, received, held and disbursed only by the Purchaser or a trustee or agent appointed by the Purchaser; and WHEREAS, the Seller acknowledges that the Purchaser will grant a security interest in the Proposition 1 A Receivable to the Trustee and any credit enhancer to secure payment of the Bonds; and WHEREAS, a portion of the proceeds of the Bonds will be used by the Purchaser to, among other things, pay the purchase price of the Proposition 1 A Receivable; and WHEREAS, the Seller will use the proceeds received from the sale of the Proposition IA Receivable for any lawful purpose as permitted under the applicable laws of the State. NOW, THEREFORE, BE IT RESOLVED, the City Council of the City of Morro Bay hereby resolves as follows: Section 1. All of the recitals set forth above are true and correct, and this City Council hereby so finds and determines. E ® Resolution No. 49-09 Page Three Section 2. The Seller hereby authorizes the sale of the Proposition I Receivable to the Purchaser for a price equal to the amount certified as the Initial Amount (as defined in the Sale Agreement) by the County auditor pursuant to the Act. The form of Sale Agreement presented to the City Council is hereby approved. An Authorized Officer (as set forth in Appendix A of this Resolution, attached hereto and by this reference incorporated herein) is hereby authorized and directed to execute and deliver the Sale Agreement on behalf of the Seller, which shall be in the form presented at this meeting. Section 3. Any Authorized Officer is hereby authorized and directed to send, or to cause to be sent, an irrevocable written instruction to the State Controller (the "Irrevocable Written Instruction') notifying the State of the sale of the Proposition I A Receivable and instructing the disbursement pursuant to Section 6588.6(c) of California Government Code of the Proposition IA Receivable to the Trustee, on behalf of the Purchaser, which Irrevocable Written Instruction shall be in the form presented at this meeting. Section 4. The Authorized Officers and such other Seller officers, as appropriate, are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents, including but not limited to, if required, appropriate escrow instructions relating to the delivery into escrow of executed documents prior to the closing of the Bonds, and such other documents mentioned in the Sale ® Agreement or the Indenture, which any of them may deem necessary or desirable in order to implement the Sale Agreement and otherwise to cant' out, give effect to and comply with the terms and intent of this Resolution; and all such actions heretofore taken by such officers are hereby ratified, confirmed and approved. Section 5. All consents, approvals, notices, orders, requests and other actions permitted or required by any of the documents authorized by this Resolution, whether before or after the sale of the Proposition I A Receivable or the issuance of the Bonds, including without limitation any of the foregoing that may be necessary or desirable in connection with any default under or amendment of such documents, may be given or taken by an Authorized Officer without further authorization by this City Council, and each Authorized Officer is hereby authorized and directed to give any such consent, approval, notice, order or request, to execute any necessary or appropriate documents or amendments, and to take any such action that such Authorized Officer may deem necessary or desirable to further the purposes of this Resolution. Section 6. The City Council acknowledges that, upon execution and delivery of the Sale Agreement, the Seller is contractually obligated to sell the Proposition I Receivable to the Purchaser pursuant to the Sale Agreement and the Seller shall not have any option to revoke its approval of the Sale Agreement or to determine not to perform its obligations thereunder. is Section 7. This Resolution shall take effect from and after its adoption and approval. • Resolution No. 49-09 Page Four PASSED AND ADOPTED by the City Council of the City of Morro Bay, State of California, this 28th day of September 2009, by the following vote: AYES: Borchard, Grantham, Smukler, Wi NOES: None ABSENT: None ATTEST: APPROVED AS TO FORM: Ll" It GLt i k' e BRIDGE AVER, City Clerk MBERT SCHULTZ Q., City Attorney El r 11 Authorized Officers: APPENDIX A CITY OF MORRO BAY Andrea Lueker, City Manager Susan Slayton, Administrative Services Director Any designee of any of them, as appointed in a written certificate of such Authorized Officer delivered to the Trustee. E 11 ® RESOLUTION NO.48-09 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA DESIGNATION OF PRIMARY AND SECONDARY PROPOSERS FOR LEASE SITE 96/96W AND AUTHORIZATION FOR THE PRIMARY PROPOSER, STAN VAN BEURDEN TO APPLY FOR DEVELOPMENT PERMITS FOR LEASE 96/96W LOCATED AT 945 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 96/96W; located at 945 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 21, 2009, advertised said request in local papers; and, WHEREAS, on July 21, 2009 three qualified proposals were received at City Hall, and, ® WHEREAS, City staff set up a three person panel to review the proposals; and, on August 20, 2009 the panel heard presentations from all the proposers and recommended that the City Council designate Stan Van Beurden as the primary proposer and the Held Family as the secondary proposer for Lease Site 96/96W. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, that Stan Van Beurden is hereby designated as the primary proposer for Lease Site 96/96W and that the proposal submitted by the Held Family is hereby designated as secondary proposer for Lease Site 96/96W. BE IT FURTHER RESOLVED, that as primary proposer Van Beurden must obtain concept level approval of the development plans for Lease Site 96/96W by September 14, 2010. City staff is hereby authorized to complete any necessary paperwork, such as the landlord's consent, to enable Van Beurden to apply for said development permits. BE IT FURTHER RESOLVED, that should Van Beurden fail to meet the September 14, 2010 deadline for concept level approval of development plans, the secondary proposer, the Held Family, will ascend to the primary proposer position. u Resolution No.48 -09 Page 2 E PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 14te day of September, 2009 on the following vote: AYES: Borchard, Grantham, Smukler, Winholtz, Peters NOES: None ABSENT: None Fall VIIZYIIA U E ® RESOLUTION NO.47-09 RESOLUTION DETAILING STRATEGIES TO PREVENT AND REDUCE VACANCIES ON THE EMBARCADERO AND STIMULATE BUSINESS 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 City Tidelands leases and properties; and, WHEREAS, the local, California and national economies are experiencing the worst economic recession in at least 30 years, which has impacted many local businesses and resulted in vacancies on the City Tidelands lease properties; and, WHEREAS, vacancies on Tidelands lease properties harm the City wide business environment and reduce direct rents received by the City in the form of percentage of gross sales rent collections; and WHEREAS, the City Council of the City of Morro Bay desires to outline policies that can be established to support City Tidelands tenants and reduce vacancies for overall ® City business enhancement and the public good; and, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, that City staff is authorized to negotiate payment plans for past due rents and charges under the City Tidelands Lease Sites and to waive penalties and interests that would otherwise be required by the existing Tidelands lease agreements; and, BE IT FURTHER RESOLVED that City staff is authorized to offer to all City Tidelands Lease Site tenants that they can pay any minimum annual rent payments which are normally due six months in advance the option of making those payments quarterly in advance; and, BE IT FURTHER RESOLVED that the City Council will support office type uses on the second floor of City Tidelands Lease Site properties for the purpose of reducing vacancies, provided those uses conform with any and all planning and zoning regulations or requirements; and, BE IT FURTHER RESOLVED that for the Fiscal Year 09-10 the City Council of Morro Bay directs that minimum annual rents for all modern City Leases (not including leases known as Pipkin or County Leases) shall be set at the exact same rate as the minimum annual rents were in Fiscal Year 08-09, except those sites where 5-year appraisal adjustments have reset minimum annual rents to a level lower than the Fiscal ® Year 08-09, specifically LS71-74/71W-74W and LS89/89W. The effect of this action is to waive contractually outlined Consumer Price Index adjustments for certain modern City Leases in Fiscal Year 09-10 so that master tenants pass these savings through to - subtenants in an effort to reduce vacancies on City Tidelands properties. BE IT FURTHER RESOLVED that these actions are unique to Fiscal Year 09- 1E and shall not continue or obligate the City to repeat or continue this Resolution in the future without further City Council action. PASSED AND ADOPTED b� the City Council of the City of Morro Bay at a regular meeting thereof held on the 28 day of September, 2009 on the following vote: AYES: Borchard, Grantham, Smukler, Winholtz, Peters NOES: vote ABSENT: vote ATTEST: "0'& \&�� - ® BRrDGETt BAUER, City Clerk E. F 0 LEASE By and between the CITY OF MORRO BAY ('CITY") and FLYING DUTCHMAN ENTERPRISES ("TENANT") TABLE OF CONTENTS Article1 FIXED TERM............................................................................................................ 2 Section1.01 Term............................................................................................. 2 Section1.02 No Extensions.............................................................................. 2 Section1.03 Hold Over..................................................................................... 2 Section1.04 Replacement................................................................................. 3 Article2 RENT...............................................................................................................a......... 3 Section 2.01 Annual Minimum Rent................................................................ 3 Section 2.02 CPI Adjustment to Annual Minimum Rent ................................. 3 Section 2.03 Percentage Rent........................................................................... 4 Section 2.04 Reimbursements........................................................................... 6 Section 2.05 Penalty and Interest...................................................................... 6 Article3 USE OF PREMISES .................................................................................................. 7 Section 3.01 Permitted Uses............................................................................. 7 Section 3.02 Unauthorized Use......................................................................... 7 Section 3.03 Operation of Business - Hours of Operation ................................ 7 Section 3.04 Hazardous Materials.................................................................... 8 Section3.05 Tidelands Trust............................................................................ 9 Section 3.06 Compliance with Law.................................................................. 9 Section 3.07 Waste or Nuisance....................................................................... 9 Section3.08 Use by CITY.............................................................................. 10 Article 4 CONSTRUCTION, ALTERATION AND REPAIRS ............................................ 10 Section 4.01 Construction Approval............................................................... 10 Section 4.02 Construction Bond..................................................................... 10 Section 4.03 Mechanics' Liens........................................................................ 11 Lease Agreement - Van eeurden12/09 -i- ® Section 4.04 Ownership of Improvements...................................................... 12 Article 5 LEASEHOLD MORTGAGES................................................................................ 12 Article 6 REPAIRS, MAINTENANCE AND RESTORATION ........................................... 12 Section 6.01 Maintenance by TENANT ......................................................... 12 Section 6.02 Seawalls and Revetment............................................................ 13 Section 6.03 Legal Requirements................................................................... 13 Section 6.04 Failure to Repair........................................................................ 13 Section 6.05 Inspection by CITY.................................................................... 13 Section 6.06 TENANT'S Duty to Restore Premises ....................................... 14 Section 6.07 Termination of Lease for Destruction ........................................ 14 Section 6.08 Destruction Due to Risk Not Covered by Insurance .................. 15 Article 7 INDEMNITY AND INSURANCE ......................................................................... 16 ® Section 7.01 Indemnity Agreement................................................................ 16 Section 7.02 Liability Insurance..................................................................... 17 Section 7.03 Worker's Compensation............................................................. 17 Section 7.04 Property Insurance..................................................................... 17 Section 7.05 Additional Coverage.................................................................. 18 Section 7.06 General Requirements................................................................ 18 Section 7.07 No Subrogation.......................................................................... 19 Section 7.08 TENANT'S Waiver.................................................................... 20 Section 7.09 Insurance Not a Limit................................................................ 20 Article8 TAXES AND FEES ................................................................................................. 20 Section 8.01 TENANT to Pav Taxes.............................................................. 20 Section 8.02 TENANT to Pay License and Permit Fees ................................ 20 ® Section 8.03 Utilities....................................................................................... 20 Lease Agreement- Van Seurdenl2/09 Article9 CONDEMNATION................................................................................................. 21 Section 9.01 Total Condemnation................................................................... 21 Section 9.02 Condemnation Award................................................................ 21 Section 9.03 Termination for Partial Taking .................................................. 22 Section 9.04 Rent Abatement for Partial Taking ............................................ 22 Section 9.05 Conveyance in Lieu of Eminent Domain ................................... 23 Section 9.06 Temporary Taking..................................................................... 23 Article 10 ASSIGNMENT AND SUBLEASING.................................................................... 23 Section 10.01 No Assignment Without CITY'S Consent ................................. 23 Section 10.02 Change of Ownership as Assignment ........................................ 24 Section 10.03 Application for Assignment....................................................... 24 Section 10.04 Probate Transfer of Assignment ................................................ 25 Section 10.05 No Sublease Without CITY'S Consent ...................................... 25 Section 10.06 Subtenant Subject to Lease Terms ............................................. 25 Section 10.07 Consent Form Agreement.......................................................... 26 Section 10.08 TENANT and Guarantor Remain Liable ................................... 26 Section 10.09 Nondisturbance.......................................................................... 26 Article 11 DEFAULT AND TERMINATION......................................................................... 27 Section 11.01 Abandonment by TENANT ....................................................... 27 Section 11.02 Termination for Breach by TENANT ........................................ 27 Section 11.03 Termination for Failure to Pay Rent .......................................... 27 Section 11.04 Lender May Cure Default.......................................................... 27 Section 11.05 Attorneys' Fees........................................................................... 28 Section 11.06 Damages for Breach................................................................... 28 Section 11.07 Cumulative Remedies................................................................ 29 Section 11.08 Waiver of Breach....................................................................... 29 Section 11.09 Surrender of Premises................................................................ 29 Lease Agreement - Van eeurden12/09 ® Article 12 MISCELLANEOUS................................................................................................ 29 Section 12.01 Attorneys' Fees........................................................................... 29 Section12.02 Notices....................................................................................... 29 Section 12.03 Governing Law and Jurisdiction ................................................ 30 Section 12.04 Binding on Successors............................................................... 30 Section 12.05 Partial Invalidity......................................................................... 30 Section 12.06 Sole and Only Agreement.......................................................... 31 Section12.07 Modification............................................................................... 31 Section 12.08 Time of Essence......................................................................... 31 Section 12.09 Memorandum of Lease for Recording ....................................... 31 Article 13 SPECIAL PROVISIONS PECULIAR TO THIS LEASE SITE ................................ 32 Section 13.01 TENAINT's Obligation to Redevelop Site ................................. 32 K] KI Lease Agreement- Van eeurden12/09 -IV- LEASE This LEASE is made and entered into by and between the CITY OF MORRO BAY, a municipal corporation of the State of California herein called CITY, and Flying Dutchman Enterprises, a California corporation, Stan Van Beurden Sole Shareholder, herein called WWn WITNESSETH WHEREAS, the State of California granted certain tide and submerged lands located within the CITY limits of CITY to the County of San Luis Obispo and to its successors, being Chapter 1076, Statutes of 1947, as amended by Chapter 413, Statutes of 1955, Chapter 1874, Statutes of 1957, and Chapter 70, Statutes of 1960, first extraordinary session; which Statutes may be amended from time to time by the Legislature of the State of California; all of which Statutes are expressly recognized and agreed to be in full force and effect by the parties hereto; and WHEREAS, the parties hereto recognize and agree that on July 17, 1964, the CITY of Morro Bay, Lessor herein, succeeded to all of the right, title and interest of the County of San Luis Obispo in and to all of the tide and submerged lands conveyed to said County by the State of California pursuant to the above mentioned acts; and WHEREAS, judgment has been entered on October 14, 1968, in the case of CITY of Morro Bay, Plaintiff, versus County of San Luis Obispo, and State of California, Defendants, by the Superior Court of the State of California in and for the County of San Luis Obispo, #30417, adjudging and decreeing, among other things, that the title to said tide and submerged lands so conveyed by the State of California to the County of San Luis Obispo in trust, as set forth above, passed automatically to the CITY of Morro Bay upon the date of its incorporation as a CITY on the 17th day of July, 1964; and WHEREAS, TENANT accepts the within Lease with full knowledge that there is no warranty of title in and to the within described premises by CITY to TENANT; and WHEREAS, in order to develop and improve Morro Bay Harbor and to assist in carrying out the provisions of the tideland grant as aforesaid, and in order to provide facilities for the accommodation of those using Morro Bay Harbor, CITY desires to lease to TENANT the within described property upon the terms and conditions set forth herein; 40 Lease Agreement - Van Beurdenl2/09 — Exhibit B ® NOW, THEREFORE, in consideration of the covenants to be performed and the rental to be paid by TENANT to CITY, CITY leases to TENANT, and TENANT leases from CITY. all of the following premises (herein collectively referred to as the "Premises") in the CITY of Morro Bay, County of San Luis Obispo. State of California. described as follows: _Lease Sites 96-96W. This property is delineated on Parcel Map of the CITY of Morro Bay No. 68-30, which map was recorded on October 10, 1968, in Book 3, Page 10 of Parcel Maps in the Office of the County Recorder, San Luis Obispo County, California. A copy of said Map is attached hereto as Exhibit A and made a part hereof by reference. Article 1 FIXED TERM Section 1.01 Term. The term of this Lease shall be a period of. Three years and five months, commencing February 1, 2010 (the "Commencement Date"). The term of this Lease shall terminate without notice on June 30, 2013, unless sooner terminated as herein provided. ® Section 1.02 No Extensions. r� The term of this Lease shall not be extended nor shall this Lease be renewed. Requests for continued use of the Premises shall be treated as an application for a new lease and shall require appropriate application to the CITY with all required supporting information and documents, CITY Council approval and the execution of a new CITY lease, containing the then most current terms, covenants, conditions and rent schedules. Section 1.03 Hold Over. Should TENANT hold the demised Premises after the expiration of the term of this Lease with the consent of the CITY, express or implied, such holding over (in the absence of a written agreement between CITY and TENANT with respect thereto) shall be deemed to create a tenancy from month to month, terminable on thirty (30) days written notice from either party to the other, at a monthly rental equal to two hundred percent (200%) of the average total Rent per month for the twelve (12) months immediately preceding the expiration of the Lease, and otherwise subject to each and every term, covenant and condition of this Lease. Lease Agreement - Van Beurdenl2/09 -2- Section 1.04 Replacement. 1 0 As of the Commencement Date of this Lease, this Lease shall extinguish and replace every prior lease between CITY and TENANT respecting the Premises, if any. Any right or interest held by the TENANT pursuant to any existing lease with respect to the Premises which is not granted pursuant to this Lease shall be extinguished as of the Commencement Date of this Lease. Article 2 RENT Section 2.01 Annual Minimum Rent. TENANT agrees to pay to CITY a minimum guaranteed annual rental for the use and occupancy of the Premises, in an initial amount of $15,000 per year (the "Minimum Rent"), payable in advance in equal semiannual installments on January 1 and July 1 each year during the term of the Lease. If the Commencement Date is other than January 1 or July 1, then TENANT shall pay, on the Commencement Date, the proportionate amount of the Minimum Rent payable for the period from the Commencement Date until the next payment date of January 1 or July 1, as the case may be. If the term of the Lease expires on a date other than December 31 or June 30, TENANT'S final installment of Minimum Rent shall be proportionate to the time remaining in the term. All Rent, including the Minimum Rent and the Percentage Rent, shall be paid in lawful money of the United States of America, without offset or deduction and shall be paid to CITY at City Hall located at 595 Harbor Street, Morro Bay, California, or at such other place or places CITY may from time to time designate by written notice delivered to TENANT. Section 2.02 CPI Adiustment to Annual Minimum Rent. (1) The parties agree that as of every July 1 following the Commencement Date (each, a "CPI Adjustment Date"), except as outlined in section 2.03 hereof,.the annual Minimum Rent shall be increased in direct proportion to any upward or downward movement in the Consumer Price Index for January 1, 2008 which is hereby agreed to be 220.7 (Base Index). The percentage adjustment for any given year shall be based on the monthly average Index for the calendar year immediately preceding the CPI Adjustment Date as compared with the Base Index. The Consumer Price Index referred to herein is the Consumer Price Index (all items indexes, all urban consumers) for Los Angeles - Anaheim - Riverside, California, compiled and published by the United States Department of Labor, Bureau of Labor Statistics, 1982-84 Base Year = 100 (the "Index") Lease Agreement -Van Beurdenl2/09 -3- (2) The Annual Minimum Rent shall be adjusted as of each CPI Adjustment Date, and ,�vRll remain in effect as adjusted until the next CPI Adjustment Date: As an illustration only, if the Base Index (Jan. 1, 1999 CPI) is 166.1 and the monthly average CPI for 2000 is 171.6, then the percentage increase is equal to 3.31%. Therefore, the Minimum Rent would be increased by 3.31% as of July 1, 2001, and would continue at that rate through June 30, 2002. (3) If the United States Department of Labor. Bureau of Labor Statistics, shall cease to compile and make public the Index as now constituted and issued, but shall substitute another index in its place, then said substituted index shall be used for the purpose of adjusting the Minimum Rent for the Premises. If the Index is changed so that the base year differs from that in effect on the Lease Commencement Date, the Index shall be converted in accordance with the conversion factor published by the United States Department of Labor, Bureau of Labor Statistics. Section 2.03 Percentage Rent. A. In addition to the Minimum Rent, TENANT agrees to pay to CITY at the time and in the manner hereinafter specified, as additional Rent for the use and occupancy of the Premises, a sum equal to five percent (5%) of TENANT'S Gross Sales, hereinafter defined, less the amount of the Minimum Rent paid pursuant to this Lease (the "Percentage Rent"). B. The term "Gross Sales," as used herein, shall mean (subject to the exceptions and authorized deductions as hereinafter set forth), the total selling price and the total gross amount received by TENANT from all rentals, merchandise sold and services rendered in, on or from the Premises by TENANT, its sub lessees, licensees, or concessionaires, both for cash and on credit including, but not limited to, rentals of dockage space, leasing and servicing operations and ticket sales, and if on credit whether or not payment be actually made therefore, all charges for services, alterations or repairs made in or upon the Premises; the gross amount received by TENAINT for merchandise sold pursuant to orders received in the Premises, though filled elsewhere; and the gross amount received by TENANT from any and all other sources of income derived from the business conducted upon the Premises. C. Notwithstanding the other provisions of Section 2.04, the term "Gross Sales" shall not include the following items, and such items may be deducted from Gross Sales to the extent they have been included therein or have been included in a prior computation of Gross Sales or for which a Percentage Rent has been paid under this Lease to CITY: (1) Credits and refunds made to customers for merchandise returned or exchanged; ® (2) Any sales or excise taxes otherwise includable in Gross Sales as defined in this Section because such taxes are part of the total selling price of merchandise or services rendered Lease Agreement -Van Beurdenl2/09 -4- in, from, or on the Premises, where TENANT _must account for and remit the taxes to the government entity or entities by which they are imposed; and (3) With respect to credit card sales, fees retained or withheld by the issuer and/or merchant bank pursuant to TENANT'S credit card acceptance agreement, and (4) Rental payments to TENANT from sub lessees whose total gross sales are included in gross sales computations. D. TENANT shall keep or cause to be kept full, complete, and accurate records, and books of account in accordance with accepted accounting practices showing the total amount of Gross Sales, as defined herein, made each calendar month in, on or from the Premises. TENANT shall keep said records and books of account within San Luis Obispo County and shall notify CITY in advance of their location at all times. Furthermore, TENANT shall at the time of sale and in the presence of the customer cause the full selling price of each piece of merchandise, each rental received and each service rendered in, on or from the Premises to be recorded in a cash register or cash registers that have cumulative totals and are sealed in accordance with standard commercial practices. Said records, books of account and cash register tapes, including any sales tax reports that TENANT may be required to furnish any government or governmental agency shall at all reasonable times be open to the inspection of CITY, CITY'S auditor, or other authorized representative or agent of CITY. TENANT consents to the release of sales tax information to CITY and on demand will furnish to CITY a copy of the sales tax reports, quarterly reports and any audit reports of sales for confidential internal use of the CITY in determining Gross Sales for TENANT.. TENANT consents and authorizes CITY to request such information directly from the State Board of Equalization or other state agency with which sales tax information is filed. E. By July 31 of each year, TENANT shall furnish CITY with a statement, to be certified by TENANT as current, true and accurate, which shall set forth the Gross Sales of each department, sub lessee, licensee and concession operating in, on or from the Premises for the previous twelve (12) calendar months, ending June 30, just concluded, and the authorized deductions, if any, therefrom; and with it TENANT shall pay to CITY the amount of the Percentage Rent which is due to CITY as shown thereby. If TENANT shall at any time cause an audit of sales of TENANT'S business to be made by a public accountant, TENANT shall furnish CITY with a copy of said audit without cost or expense to CITY. CITY may, once in any twelve-month period, cause an audit of the business of TENANT to be made by a public accountant of CITY'S own selection. TENANT shall, upon receiving written notice of CITY'S desire for such an audit deliver and make available all such books, records and cash register tapes to the public or certified public accountant selected by CITY. Furthermore, TENANT shall • promptly on demand reimburse CITY for the full cost and expense of said audit, should the audit Lease Agreement - Van Beurden12/09 -5- ® disclose that the questioned statement or statements understated Gross Sales by five percent (5%) or more but less than ten percent (10%). In the event that an audit performed at CITY'S request discloses that TENANT understated Gross Sales by less than 5%, the cost of such audit shall be paid by CITY. In the event that any audit or other review of records discloses that the amounts reported as Gross Sales was understated by TENANT by ten percent (10%) or more, CITY shall not only be entitled to recover from TENANT all costs of audit and review but shall also be entitled to recover from TENANT a penalty equal to two times the Percentage Rent due pursuant to this Lease on such unreported amounts. Whenever any audit discloses that Gross Sales were understated by any amount, TENANT shall immediately pay the additional Percentage Rent therein shown to be payable by TENANT to CITY, together with interest at the Default Rate thereon, from the date the Percentage Rent was payable until the date paid. F. CITY shall be entitled at any time within five (5) years after the receipt of any such Percentage Rent payment, to question the sufficiency of the amount thereof and/or the accuracy of the statement or statements furnished by TENANT to justify the same. For the purpose of enabling CITY to check the accuracy of any such statement or statements, TENANT shall for said period of five (5) years after submission to CITY of any such statement keep all of TENANT'S records, including sales tax returns, all cash register tapes and other data which in ® any way bear upon or are required to establish in detail TENANT'S Gross Sales and any s authorized deductions therefrom as shown by any such statements and shall upon request make the same available to CITY for examination. Section 2.04 Reimbursements. If TENANT fails to perform an.term or covenant of this Lease, CITY may, but is not obligated to, perform such term or covenant, and TENANT shall reimburse CITY therefore as additional Rent hereunder. As an illustration and not as a limitation, if TENANT fails to procure the insurance required by this Lease, CITY may, but is not obligated to, obtain such insurance, with the cost of the premiums being due to CITY upon demand as additional Rent. Section 2.05 Penalty and Interest. (1) If any Rent is not received within ten (10) days following the date on which the Rent first became due, TENANT shall pay a late penalty of ten percent (10%) of the amount of the Rent in addition to the Rent. (2) In addition to the penalty, TENANT shall pay interest at the rate of one percent 0 %) per month or fraction thereof or the maximum amount permitted by law as of the date this ® Lease is signed, whichever is greater (the "Default Rate"), on the amount of the Rent. exclusive of the penalty, from the date on which Rent first became delinquent until paid. The term "Rent" Lease Agreement- Van Beurdenl2/09 -6- includes any sums advanced by the CITY and any unpaid amounts due from TENANT to the CITY. Article 3 USE OF PREMISES Section 3.01 Permitted Uses. The Premises shall, during the term of this Lease, be used for the purpose of operating and conducting thereon and therein the following uses: restaurant and takeout food service and boat berthing. Section 3.02 Unauthorized Use. TENANT agrees to allow only those uses authorized in Section 3.01 hereinabove and that any unauthorized use thereof shall constitute a breach of this Lease and shall, at the option of CITY. terminate this Lease. Section 3.03 Operation of Business - Hours of Operation. Failure to actively and diligently conduct the business authorized herein constitutes a breach of the agreement and shall, at the option of CITY, terminate this lease. (1) TENANT shall during the term of this Lease conduct business of the nature specified in Section 3.01 of this Lease on the Premises in an efficient and diligent manner and keep the Premises open for the conduct of business continuously and without interruption for at least six hours each day of the year except one day each week and legal holidays. This provision shall not apply if the Premises shall be closed and the business of TENANT is temporarily shut down for a period not to exceed fourteen (14) calendar days in any calendar year to make necessary repairs, maintenance or other construction deemed necessary by TENANT. This provision shall not apply if the Premises shall be closed and the business of TENANT is temporarily shut down as authorized or required by the CITY Manager or on account of strikes, walkouts, or causes beyond the control of TENANT or for not more than three (3) days out of respect to the memory of an officer, employee, or close relative of any officer or employee of TENANT. (2) TENANT shall operate TENANT'S business on the Premises with due diligence and efficiency and in like manner as comparable businesses operated in the CITY or the coastal area of San Luis Obispo County, so as to produce the maximum amount of Gross Sales and gross receipts from services which may be produced from TENANT'S business; and TENANT at all times shall carry on Premises, a stock or merchandise of such size, character, and quality as is Lease Agreement - Van Beurden12/09 -7- ® reasonable; designed to produce the maximum return to TENANT, when the sale of merchandise is a permitted use under this Lease. Section 3.04 Hazardous Materials. (1) TENANT shall not transport, use, store, maintain, generate, dispose, release, treat or discharge any "Hazardous Material" (as defined below) upon or about the Premises (such activities being hereafter referred to as "Hazardous Materials Activities"), nor permit TENANT'S employees, agents, or contractors to engage in Hazardous Materials Activities upon or about the Premises, except as allowed by applicable law. The term "Hazardous Material" for purposes hereof shall mean any chemical, substance, material or waste or component thereof which is now or hereafter listed, defined or regulated as a hazardous or toxic chemical, substance, material or waste or component thereof by any federal, state or local governing or regulatory body having jurisdiction, or which would trigger any employee or community "right -to -know" requirements adopted by any such body. All Hazardous Materials Activities at the Premises shall be conducted strictly in accordance with all applicable laws and regulations. If TENANT shall transport any hazardous waste from the Premises, such transportation shall be done only by a contractor duly licensed to haul hazardous waste and shall use only a duly licensed disposal site ® approved by TENANT'S liability insurer. (2) TENANT shall promptly notify CITY of: (i) any enforcement, cleanup or other regulatory action taken or threatened by any governmental or regulatory authority with respect to the presence of any Hazardous Material on the Premises or the migration thereof from or to other property. (ii) any demands or claims made or threatened by any party against TENANT or the Premises relating to any loss or injury resulting from any Hazardous Material on or from the Premises, and (iii) any matters where TENANT is required by applicable law to give a notice to any governmental or regulatory authority respecting any Hazardous Material on the Premises. CITY shall have the right (but not the obligation) to inspect the Premises, to take such remedial action on the Premises, as CITY may deem appropriate, and to join and participate, as a party, in any legal proceedings or actions affecting the Premises initiated in connection with any environmental, health or safety law. (3) If any Hazardous Material is released, discharged or disposed of by TENANT or its employees, agents or contractors, on or about the Premises in violation of the foregoing provisions, TENANT shall immediately notify CITY. CITY may elect either to take such remedial action as CITY deems appropriate, in which event TENANT shall reimburse CITY for ® all costs thereof within ten (10) days after demand, or direct TENANT to perform such remediation. If CITY directs TENANT to perform the remediation.. TENANT shall immediately Lease Agreement - Van Beurden12/09 -8- take such remedial action, as CITY shall direct. TENANT shall, properly and in compliance with applicable laws clean up and remove the Hazardous Material from the Premises and any other affected property at TENANT'S expense. If CITY directs TENANT to perform remediation hereunder and if TENANT shall fail to comply with the provisions of this Section within five (5) days after written notice by CITY, or such shorter time as may be required by applicable law or in order to minimize any hazard to persons or property, CITY may (but shall not be obligated to) arrange for such compliance directly or as TENANT'S agent through contractors or other parties selected by CITY at TENANT'S expense (without limiting CITY'S other remedies under this Lease or applicable law). Section 3.05 Tidelands Trust. TENANT shall use and occupy the Premises in strict compliance with the Tidelands Trust purposes under which the Premises or any portion thereof are held by CITY pursuant to the grants from the State of California as set forth in this Lease. Section 3.06 Compliance with Law. TENANT shall, at no cost to CITY, comply with all of the requirements of all local, municipal, county, state and federal authorities now in force, or which may hereafter be in force, pertaining to the Premises, and shall faithfully observe in the use of the Premises all local, municipal and county ordinances and state and federal statutes, rules, regulations and orders now in force or which may hereafter be in force (collectively, "Legal Requirements") provided that TENANT shall not be required to comply with any Legal Requirement imposed by the CITY that would substantially deprive TENANT of a material benefit under this lease unless such Legal Requirement has been imposed or required by a county, state or federal authority. The judgment of any court of competent jurisdiction, or the admission of TENANT in any action or proceeding against TENANT, -whether CITY be a party thereto or not, that TENANT has violated any such Legal Requirement in the use of the Premises shall be conclusive of that fact as between CITY and TENANT. Section 3.07 Waste or Nuisance. TENANT shall not commit or permit the commission by others of any waste on the Premises; TENANT shall not maintain, commit, or permit the maintenance or commission of any nuisance as defined by law on the Premises; and TENANT shall not use or permit the use of the Premises for any unlawful purpose. Lease Agreement - Van Beurden 12/09 -9- ® Section 3.08 Use br CITY. (1) Subject to TENANT's rights hereunder to possession of the Premises, CITY may grant licenses to, or otherwise authorize, other persons and entities permitting uses of the Morro Bay Harbor. (2) CITY also retains and reserves for itself, its successors and assigns, all oil, gas, petroleum and other mineral or hydrocarbon substances in and under the lands leased hereby together with right to prospect and extract all such substances. Article 4 CONSTRUCTION, ALTERATION AND REPAIRS Section 4.01 Construction Approval. (1) TENANT shall not make or permit any other person to make any alterations or structural additions or structural modifications to the Premises or to any structure thereon or facility appurtenant thereto if the cost thereof shall exceed ten thousand dollars ($10,000), without the prior written consent of CITY. The consent to be obtained pursuant to this Section 4.01(1) shall be requested from the Harbor Director for CITY. If the Harbor Director gives such consent to proceed, it is understood that such consent is given by CITY only in its capacity as the landlord under this Lease and not as the permit -issuing authority. TENANT remains obligated to obtain any needed building permits and comply with all applicable planning processes. (2) Where required by the Morro Bay Municipal Code, California Coastal Act, Corps of Engineers or any other state or federal agency having authority over the proposed project, then all Conditional Use Permits, Concept Plans, Precise Plans, Coastal Development Plans, and any other required plans or permits shall be applied for and approved prior to any construction, alteration or repairs. Section 4.02 Construction Bond. (1) Prior to the commencement of any construction the cost of which is greater than the amount of one hundred thousand dollars ($100,000), TENANT shall file with the Morro Bay CITY Clerk a final detailed Civil Engineer's, Registered Architect's or Licensed and Bonded General Contractors estimate of the cost of construction and installation of improvements on the Premises. Said estimate must be submitted to the CITY Engineer for approval. TENANT shall file with the Morro Bay CITY Clerk a faithful performance bond, in a form and issued by a ® corporate surety company satisfactory to CITY. in an amount satisfactory to CITY but not in Lease Agreement - Van Beurdenl2/09 -10- excess of one hundred percent (100%) of the final detailed cost estimate, securing the faithful ID performance of TENANT or its contractor in the completion of said construction. (2) TENANT shall also file with the Morro Bay CITY Clerk a labor and materials bond, in a form and issued by a corporate surety company satisfactory to CITY, in an amount satisfactory to CITY but not in excess of one hundred percent (100%) of the final detailed cost estimate, securing the payment of all claims for the performance of labor or services on, or the furnishing of materials for, the performance of said construction. (3) In lieu of the above referenced bonds, TENANT may post cash deposits or may make other mutually satisfactory, arrangements to guarantee the completion of construction projects. In the event the contractor bonds the project, CITY may be named as additional indemnitee to comply with these requirements. Section 4.03 Mechanics' Liens. At all times during the term of this Lease, TENANT shall keep the Premises and all buildings, installations and other improvements now or hereafter located on the Premises free and clear of all liens and claims of liens for labor, services, materials, supplies, or equipment performed on or furnished to the Premises. TENANT further agrees to at all times, save CITY free and harmless and indemnify CITY against all claims for labor or materials in connection with any improvement, repairs, or alterations on the Premises, and the cost of defending against such claims, including reasonable attorneys' fees. Should TENANT fail to pay and discharge or cause the Premises to be released from such liens or claim of liens within ten (10) days after the filing of such lien or levy, TENANT shall upon written notification be required to immediately deposit with CITY a bond conditioned for payment in full of all claims on which said lien or levy has been filed. Such bond shall be acknowledged by TENANT as principal and by a company or corporation, licensed by the Insurance Commissioner of the State of California to transact the business of a fidelity and surety insurance company as surety. The beneficiary of any security instrument which instrument is on record with CITY shall have the right to file such a bond on behalf of TENANT. CITY shall have right to post and keep posted on the Premises notices of non -responsibility and any other notices that may be provided by law or which CITY may deem proper for the protection of CITY and Premises from such liens. TENANT shall give CITY notice at least twenty (20) days prior to commencement of any work on the Premises to afford CITY the opportunity to post such notices. • Lease Agreement - Van Beurdenl2/09 -11- ® Section 4.04 Ownership of Improvements. C The parties agree that CITY has the option and right to require TENANT to remove all buildings, structures; installations, improvements of any kind or other property belonging to or placed upon the Premises by TENANT at the termination of this Lease, however occurring, providing CITY gives notice, in writing, no later than thirty (30) days prior to the termination of the Lease, of its decision to require that such improvements be removed. The parties agree that if the CITY exercises its option, then at the termination of this Lease, however occurring, TENANT shall have sixty (60) days thereafter to remove all buildings, structures, facilities, installations, improvements and other property belonging to TENANT from the Premises. If CITY exercises such option and TENANT fails to remove all such improvements and other property within sixty (60) days after the termination of this Lease, CITY shall have the right to have any or all such improvements and other property removed at the expense of TENANT. If CITY does not exercise its option to remove (or require the removal of) the improvements and other property, then title to such improvements and other property shall vest in CITY and TENANT shall not remove same. Article 5 LEASEHOLD MORTGAGES Tenant shall not mortgage, securitize or hypothecate the leasehold interest in whole or any part without the prior written approval of City as evidenced by a resolution of the City Council of the City of Morro Bay. Article 6 REPAIRS, MAINTENANCE AND RESTORATION Section 6.01 Maintenance by TENANT. At all times during the term of this Lease, TENANT shall, at TENANT'S own cost and expense, keep and maintain all improvements now or hereafter on the Premises in good order and repair and in a safe and clean condition. Furthermore, TENANT shall, at TENANT'S own cost and expense, maintain at all times during the term of this Lease the whole of the Premises in a clean, sanitary, neat and orderly condition. CITY may, at the sole option of CITY, clean and clear the Premises, at TENANT'S cost and expense, in the event TENANT fails to clean and clear the Premises in accordance with this Section to the satisfaction of CITY after fifteen (15) days' ,written notice to TENANT from CITY of CITY'S intent to exercise this option. Lease Agreement - Van Beurden12/09 -1 Z- Section 6.02 Seawalls and Revetment. At all times during the term of this Lease, TENANT shall at TENANT'S own cost and expense repair, maintain, replace and rebuild as necessary, the improvements, pilings, bulkheads, seawalls, revetment, piers, posts and any structures or other improvements located in the water portion of the Premises. Further, TENANT shall at TENANT'S own cost and expense conduct maintenance surveys at reasonable intervals to locate and determine needed repairs. Section 6.03 Legal Requirements. At all times during the term of this Lease, TENANT, at no cost to CITY, shall: (1) Make all alterations, additions, or repairs to the Premises or the improvements or facilities on the Premises required by any Legal Requirements (as defined in Section 3.07 above) now or hereafter made or issued; (2) Observe and comply with all Legal Requirements now or hereafter made or issued respecting the Premises or the improvements or facilities located thereon; (3) Obtain all required permits pursuant to the Morro Bay Municipal Code.or State law prior to the initiation of any repair or maintenance activity; and (4) Indemnify and hold CITY and the property of CITY, including the Premises, free and harmless from any and all liability, loss, damages, fines, penalties, claims and actions resulting from TENANT'S failure to comply with and perform the requirements of this section. Section 6.04 Failure to Repair. In the event failure to repair results in a hazardous or unsafe condition, CITY shall have the right and option but not the obligation to close and prohibit access to the unsafe portion of the Premises until such repairs are completed and accomplished and the Premises rendered safe for public use. In addition, if TENANT fails to repair any hazardous or unsafe condition within ten (10) days of written notice thereof from CITY, CITY shall have the right, but not the obligation, to perform such repair at TENANT'S expense. TENANT shall reimburse CITY for any such repair undertaken by CITY, promptly upon CITY'S demand, as additional Rent. Failure by CITY to enforce any of the provisions of this Article shall not constitute a waiver of these provisions and CITY may at any time enforce all of the provisions of this Article, requiring all necessary repairs, rebuilding or replacement. Section 6.05 Inspection by CITY. CITY or CITY'S agents, representatives, or employees may enter the Premises at all reasonable times for the purpose of inspecting the Premises to determine whether TENANT is Lease Agreement -Van Beurden12/09 -13- ® complying with the terms of this Lease and for the purpose of doing other lawful acts that may be necessary to protect CITY'S interest in the Premises under this Lease or to perform CITY'S duties under this Lease. Section 6.06 TENANT'S Duty to Restore Premises. (1) Except as provided in Section 6.07 below, if at any time during this Lease; any improvements now or hereafter on the Premises are destroyed in whole or in part by the elements, or any other cause not the fault of TENANT or CITY, this Lease shall continue in full force and effect and TENANT, at TENANT'S own cost and expense, shall repair and restore the damaged or destroyed improvement(s) according to the original plan thereof or according to such modified plans therefore as shall be approved in writing by CITY. The work of permitting, repair and restoration shall be commenced by TENANT within one hundred eighty (180) days after the damage or destruction occurs shall be pursued with due diligence, and shall be completed not later than one year after the work is commenced, unless the parties hereto mutually agree, in writing, to an extension. In all other respects, the work of repair and restoration shall be done in accordance with the requirements for construction work on the Premises set forth in Article 4 of this Lease. Any failure by TENANT either to commence or to ® complete repair and restoration as required by this Section 6.06 shall be a material default under this Lease. (2) Any and all insurance proceeds that become payable at any time during the term of this Lease because of damage to or destruction of any improvements on the Premises shall be paid to TENANT and applied by TENANT toward the cost of repairing and restoring the damaged or destroyed improvements in the manner required by this Section 6.06, or, if this Lease is terminated, then applied as provided in Section 6.07. Except as set forth in Section 6.08 below, TENANT'S obligation to restore pursuant to this Section shall exist whether or not funds are available from insurance proceeds. Section 6.07 Termination of Lease for Destruction. (1) Notwithstanding the provisions of Section 6.06 of this Lease. TENANT shall have the option of terminating this Lease as provided in this Section 6.07 if: (a) During the last fifteen(15) years of the term of this Lease, any improvements now or hereafter on the Premises are so damaged or destroyed by the elements or any cause not the fault of TENANT or CITY, that they cannot be repaired and restored as required by Section 6.06 of this Lease at a cost not exceeding thirty-five percent (36%) of the Lease Agreement - Van Beurdenl2/09 -14- cost of replacing all improvements if they had been totally destroyed at the time of such damage; or (b) During the last ten (10) years of the term of this Lease, any improvements now or hereafter on the Premises are so damaged or destroyed by the elements or any cause not the fault of TENANT or CITY, that they cannot be repaired and restored as required by Section 6.06 of this Lease at a cost not exceeding fifteen percent (15%) of the cost of replacing all improvements if they had been totally destroyed at the time of such damage. (2) TENANT may exercise its right to terminate pursuant to this Section 6.07 by providing written notice to CITY within one hundred eighty (180) days following damage or destruction as described herein. Such termination shall be effective on the last day of the calendar month following the month in which TENANT provides its notice. (3) If TENANT fails to commence or complete repair and restoration as required by Section 6.06, CITY shall have all rights and remedies with respect to TENANT's default, including but not limited to termination of this Lease pursuant to Article 11. (4) If this Lease is terminated as a result of damage or destruction, then any insurance proceeds received with respect to the improvements shall be applied or distributed in the following order: debris; then then (a) first, to the demolition of the improvements and removal of all demolition (b) to any accrued and unpaid Rent as of the effective date of the termination; (c) to each Lender under a Leasehold Encumbrance, in order of lien priority, an amount not to exceed the amount due under such Leasehold Encumbrance; then (d) to CITY, an amount equal to the present value, as of the date of termination, of the total Minimum Rent for the remainder of the Term; then (e) The remaining proceeds, if any, to TENANT. Section 6.08 Destruction Due to Risk Not Covered by Insurance. Notwithstanding anything to the contrary in Section 6.06 of this Lease, TENANT shall have the right to terminate this Lease at any time if the improvements on the Premises are damaged or destroyed by a casualty for which TENANT is not required under this Lease to carry Lease Agreement - Van Beurden12/09 -15- insurance and the cost to repair or restore such improvements exceeds fifty percent (50%) of the fair market value of all the improvements on the Premises immediately prior to the damage or destruction. Article 7 INDEMNITY AND INSURANCE Section 7.01 Indemnity Agreement. (1) TENANT shall indemnify and hold CITY; and the property of CITY (including the Premises and any improvements now or hereafter on the Premises), and the CITY'S officers, officials, employees and volunteers harmless from any and all liability, claims, loss, damages, and expenses, including attorney fees and litigation expenses, resulting from TENANT'S occupation and use of the Premises or any negligent act or omission of the TENANT or any of its subtenants, employees, contractors or anyone for whom TENANT may be liable, specifically including, without limitation, any liability, claim, loss, damage, or expense arising by reason of: (a) The death or injury of any person; including TENANT or any person who is an employee or agent of TENANT, or by reason of the damage to or destruction of any ® property, including property owned by TENANT or by any person who is an employee or agent of TENANT, from any cause whatever while such person or property is in or on the Premises or in any way connected with the Premises or with any of the improvements or personal property on the Premises: (b) The death or injury of any person, including TENANT or any person who is an employee or agent of TENANT; or by reason of the damage to or destruction of any property; including property owned by TENANT or any person who is an employee or agent of TENANT, caused or allegedly caused by either (i) the condition of the Premises or any improvement placed on the Premises by TENANT, or (ii) any act or omission on the Premises by TENANT or any person in, on, or about the Premises with or without the permission and consent of TENANT: (c) Any work performed on the Premises or materials furnished to the Premises at the instance or request of TENANT or any person or entity acting for or on behalf of TENANT: (d) TENANT'S failure to perform any provision of this Lease or to comply with any Legal Requirement imposed on TENANT or the Premises. 0 Lease Agreement - Van Beurdenl2/09 -16- (2) TENANT'S obligations pursuant to this Section to indemnify and hold harmless do not extend to any liability, claim, loss, damage or expense arising from CITY'S active negligence or willful misconduct. Section 7.02 Liability Insurance. During the term of this Lease, TENANT shall maintain at its cost. Commercial General Liability insurance with coverage's at least as broad as ISO Forms labeled "City of Morro Bay Insurance requirements for Lessees", Certificate of Insurance — City of Morro Bay", and "Additional Insureds — Managers or Lessors of Premises" attached hereto as Exhibit B and made a part hereof as may be updated or changed from time to time at the sole discretion of the CITY, insuring against claims for bodily injury (including death), property damage, contractual liability, personal injury and advertising injury occurring on the Premises or from operations located in any part of the Premises. Such insurance shall afford protection in amounts no less than One Million Dollars ($1,000,000) per occurrence for bodily injury, personal injury and property damage, provided that if insurance with a general aggregate limit is used, either the general aggregate limit shall apply separately to the Premises or the general aggregate limit shall be twice the occurrence limit stated in this Section. All liability insurance carried by TENANT hereunder shall name.CITY, its officers, officials, employees and volunteers as additional insureds, and shall be primary insurance with respect to such additional insureds. TENANT shall include all its subtenants as insureds under TENANT's liability policies or shall furnish separate certificates and endorsements for each subtenant. All coverage's for subtenants shall comply with all requirements of this Article Seven. Section7.03 Worker's Compensation. TENANT shall maintain at TENANT'S own expense and keep in full force and effect during the term of this Lease, Worker's Compensation Insurance as provided by law. Said insurance shall contain a waiver of subrogation rights against CITY. TENANT shall also maintain employer's liability insurance with minimum coverage of $1,000,000 per accident for bodily injury or disease. Section 7.04 Property Insurance. TENANT shall, at its cost, at all times during the term of this Lease keep all improvements and other structures on the Premises, as well as any and all additions, improvements and betterments thereto, insured for one hundred percent (100%) of their full replacement cost with no co-insurance provision against loss or destruction by the perils covered by "all risk" (excluding earthquake) property damage insurance policies. Any loss payable under Lease Agreement - Van Beurdenl2/09 -1 7- such insurance shall be payable to TENANT, CITY, and any Lender under a Leasehold Encumbrance pursuant to Article 5 of this Lease, as their interests may appear, and such proceeds shall be used and applied in the manner required by Article 6 of this Lease. Section 7.05 Additional Coverage. TENANT shall also maintain, at its expense, the insurance described in this Section 7.05. (1) If TENANT has (or is required by any Legal Requirement to have) a liquor license and is selling or distributing alcoholic beverages on the Premises, then TENANT shall maintain liquor liability coverage in appropriate amounts. TENANT shall require any subtenant who has (or is required by any Legal Requirement to have) a liquor license and who is selling or distributing alcoholic beverages on the Premises, to maintain such coverage. (2) TENANT shall maintain "all risk" (excluding earthquake) property damage insurance covering TENANT's personal property located at the Premises, in amounts not less than the full replacement value of such personal property. CITY shall have no interest in the proceeds of such insurance. ® (3) TENANT shall, at TENANT's own expense, obtain and maintain any additional insurance coverage's that CITY may reasonably require. As illustration only and not as a limitation, in appropriate circumstances such additional insurance may include increased general liability limits, business interruption coverage, business automobile liability, boiler and machinery insurance and/or builder's risk insurance. However, TENANT shall not be required to maintain additional coverage's that are in excess of those typically maintained by similarly situated tenants in the Mono Bay area. Section 7.06 General Requirements. Except as specifically provided to the contrary, all the insurance required pursuant to this Article Seven shall be subject to the requirements of this Section 7.06. (1) Maintenance of proper insurance coverage is a material element of this Lease and failure to maintain or renew coverage or to provide evidence of coverage and/or renewal may be treated by the CITY as a material breach of contract. TENANT shall forward the CITY specifications and forms to TENANT'S insurance agent for compliance. (2) CITY may at any time require TENANT to increase the minimum coverage limits for insurance required by this Lease, but every such increase shall be reasonable under the ® circumstances. Lease Agreement - Van Beurdenl2/09 - ].8- (3) All policies shall be issued by insurance companies authorized to issue such insurance in California, with an A.M. Best's rating of no less than A:VII. (4) Any deductibles or self -insured retentions must be declared to and approved by CITY. At the.option of CITY, either: the insurer shall reduce or eliminate such deductibles or self -insured retentions as respects CITY, its officers, officials, employees and volunteers; or the TENANT shall provide a financial guarantee satisfactory to CITY guaranteeing payment of losses and related investigations, claim administration and defense expenses., (5) Each insurance policy required by this Lease shall be endorsed to state that coverage shall not be cancelled or reduced, except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to CITY. (6) TENANT shall furnish CITY with certificates and amendatory endorsements effecting the coverage required by this Lease. The endorsements shall be on forms provided by CITY or on other than CITY's forms, provided those endorsements -or policies conform to the requirements. All certificates and endorsements are to be received and approved by CITY before use of the Premises, and promptly following any renewal or replacement. CITY reserves the right at any time to require complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications. (7) TENANT's insurance coverage shall be primary insurance as respects CITY, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by CITY, its officers, officials, employees, or volunteers shall be excess of TENANT's insurance and shall not contribute with it. Section 7.07 No Subrogation. TENANT agrees that in the event of loss due to any of the perils for which it has agreed to provide insurance, TENANT shall look solely to its insurance for recovery. TENANT hereby grants to the CITY, on behalf of any insurer providing insurance to either TENANT or CITY with respect to TENANT'S occupancy of the Premises, a waiver of any rights to subrogation which any such insurer of said TENANT may acquire against the CITY by virtue of the payment of any loss under such insurance. Each insurance policy required under this Lease including those insuring TENANT against claims, expense, or liability for injury to persons or property shall provide that the insurer shall not acquire by subrogation any right to recovery which TENANT has expressly waived in writing prior to the occurrence of the loss. `J Lease Agreement -Van Beurden 12/09 -19- ® Section 7.08 TENANT'S Waiver. TENANT hereby waives any right of recovery against CITY for each claim; expense, liability, or business interruption, or other loss, except where caused by CITY'S active negligence or willful misconduct. TENANT agrees that to the extent that TENANT fails to acquire insurance, TENANT shall not have any claim against CITY for any loss that results from a risk or peril that would have been included in such insurance. Section 7.09 Insurance Not a Limit. The insurance requirements of this Article Seven are independent of, and do not limit or modify, TENANT'S indemnification and other obligations pursuant to this Lease. Article 8 TAXES AND FEES Section 8.01 TENANT to Pay Taxes. TENANT shall pay, before delinquency, all taxes and assessments levied upon or assessed to TENANT on the Premises by reason of this Lease or of any equipment, appliances, ® improvement, or other development of any nature whatsoever, erected, installed, or maintained by TENANT or by reason of the business or other activity of TENANT upon or in connection with the Premises. TENANT shall pay all possessory interest taxes applicable to the Premises. Section 8.02 TENANT to Pav License and Permit Fees. TENANT shall pay any fees imposed by law for licenses or permits for any business or activities including construction by TENANT upon the Premises. Section 8.03 Utilities. TENANT shall pay, or cause to be paid, and hold CITY and the property of CITY, including the Premises, free and harmless from all charges for the famishing of gas, water, electricity, telephone service, and for other public utilities to the Premises during the term of this Lease and for the removal of garbage and rubbish from the Premises during the term of this Lease. Lease Agreement- Van Beurdenl2/09 -20- Article 9 CONDEMNATION Section 9.01 Total Condemnation. If title and possession to all of the Premises is permanently taken for any public or quasi - public use under any statute, or by the right of eminent domain, then this Lease shall terminate on the date that possession of the Premises is taken, and both CITY and TENANT shall thereafter be released from all obligations, including Rent, all of which shall be prorated to the date of termination, except those specified in Section 9.02 of this Lease. Section 9.02 Condemnation Award. Any compensation or damages awarded or payable because of the permanent taking of all or any portion of the Premises by eminent domain shall be allocated between CITY and TENANT as follows: (1) All compensation or damages awarded or payable for the taking by eminent domain of any land that is part of the Premises shall be paid to and be the sole property of CITY free and clear of any claim of TENANT or any person claiming rights to the Premises through or under TENANT. is (2) All compensation or damages awarded or payable which is specifically attributed by the taking party to the "good will" of TENANT'S business shall be paid to and be the sole property of TENANT. (3) All compensation or damages awarded or payable because of any improvements constructed or located on the portion of the Premises taken by eminent domain. where only a portion of the Premises is taken by eminent domain, and TENANT is not entitled to or does not terminate this Lease, shall be applied in the manner specified in Section 9.04 toward the replacement of such improvements with equivalent new improvements on the remaining portions of the Premises. (4) All compensation or damages awarded or payable because of any improvements constructed or located on the portion of the Premises taken by eminent domain where this Lease is terminated because of the taking by eminent domain, whether all or only a portion of the Premises is taken by eminent domain, shall be allocated between CITY and TENANT as follows: (a) That percentage of the compensation or damages awarded or payable because of the improvements that equals the percentage of the full term of this Lease that has, at the time of the taking, not expired shall belong to and be the sole property of TENANT. Lease Agreement - Van Beurden12/09 - -21- ® (b) That percentage of the compensation or damages awarded or payable because of the improvements that equals the percentage of the full term of this Lease that has; at the time of the taking, expired shall belong to and be the sole property of CITY. (c) The term "time of taking" as used in this Section shall mean 12:01 a.m. of the date that the agency or entity exercising the eminent domain power, takes, title, or the date that it takes physical possession of the portion of the Premises, whichever shall first occur. (5) Any severance damages awarded or payable because only a portion of the Premises is taken by eminent domain shall be the sole and separate property of CITY. Section 9.03 Termination for Partial Taking. Should; during the term of this Lease, title and possession of only a portion of the Premises be taken for any public or quasi -public use under any statute, or by right of eminent domain, TENANT may, at TENANT'S option, terminate this Lease by serving written notice of termination on CITY within ninety (90) days after TENANT has been deprived of actual physical possession of the portion of the Premises taken for such public use. This Lease shall terminate on the first day of the calendar month following the calendar month in which the notice ® of termination described in this section is served on CITY. On termination of this Lease pursuant to this Article, all subleases and subtenancies in or on the Premises or any portion of the Premises created by TENANT under this Lease shall also terminate and the Premises shall be delivered to CITY free and clear of all such subleases and subtenancies, provided, however, that CITY may, at CITY'S option, by mailing written notice to a subtenant allow any subtenant to attom to CITY and continue such subtenant's occupancy on the Premises as a TENANT of CITY. On termination of this Lease pursuant to this section, however, both CITY and TENANT shall be released from all obligations under this Lease, except those specified in Section 9.02 of this Lease. Section 9.04 Rent Abatement for Partial Taking. Should, during the term of this Lease, title and possession of only a portion of the Premises be taken under the power of eminent domain by any public or quasi -public agency or entity and TENANT does not terminate this Lease, then this Lease shall terminate as to the portion of the Premises taken under eminent domain on the date actual physical possession of the portion taken by eminent domain is taken by the agency or entity exercising the eminent domain ® power. Furthermore, the Rent payable under this Lease shall, as of that time be reduced in the same proportion of the Premises taken by eminent domain bears to the full value of the Premises at that time; provided however, that TENANT shall make a good faith effort to replace any Lease Agreement -Van Beurden 12/09 -2 2- improvements or facilities with equivalent new facilities on the remaining portion of the Premises and do all other acts at TENANT'S own cost and expense required by the eminent domain taking to make the remaining portion of the Premises fit for the use specified in this Lease. Section 9.05 Conveyance in Lieu of Eminent Domain. A voluntary conveyance by CITY, with the consent of TENANT, of title to all or a portion of the Premises to a public or quasi -public agency or entity in lieu of and under threat by such agency or entity to take the same by eminent domain proceedings shall be considered a taking of title to all or such portion of the Premises under the power of eminent domain subject to the provisions of this Article. Section 9.06 Temporary Taking. . If the possession of the Premises or any portion thereof should be taken under the power of eminent domain by any public or quasi -public agency or entity for a limited period not extending beyond the term of this Lease, then this Lease shall not terminate (except as provided in this Section 9.06) and TENANT shall continue to perform all its obligations hereunder, except only to the extent that TENANT is prevented from performing such obligations by reason of such taking. TENANT shall be entitled to receive the entire amount of compensation or damages awarded because of such temporary taking. If a temporary taking extends for more than thirty-six (36) months, then TENANT shall have the right to terminate this Lease, and TENANT shall be entitled to receive, out of the compensation or damages awarded because of such temporary taking, the amount that is attributable to the period of time up until the effective date of TENANT'S termination of this Lease. Article 10 ASSIGNMENT AND SUBLEASING Section 10.01 No Assignment Without CITY'S Consent. Except as provided in this Article 10, TENANT shall not assign or otherwise transfer this Lease, any right or interest in this Lease, or any right or interest in the Premises or any of the improvements that may now or hereafter be constructed or installed on the Premises without the express written consent of CITY evidenced by resolution first had and obtained. Any assignment or transfer by TENANT without the prior written consent of CITY, whether it be voluntary or involuntary, by operation of law or otherwise, is void and shall, at the option of CITY, terminate this Lease. A consent by CITY to one assignment shall not be deemed to be a Lease Agreement - Van Beurdenl2/09 -23- consent to any subsequent assignment of this Lease by TENANT. CITY shall not unreasonably nor arbitrarily withhold its approval to the assignment or transfer of this Lease to an assignee who is financially reliable and qualified to conduct the business for which this Lease was granted. It is mutually agreed that the TENANT'S qualifications are a part of the consideration for granting of this Lease and said party does hereby agree to maintain active control and supervision of the operation conducted.on the Premises. Section 10.02 Change of Ownership as Assignment. For purposes of this Article 10, the following transactions will be deemed to be assignments or transfers: (1) If TENANT is a partnership or limited liability company: (a) A change in ownership effected voluntarily, involuntarily, or by operation of law; within a twelve-month (12-month) period, of twenty-five percent (25%) or more of the partners or members or twenty-five percent (25%) or more of the partnership or membership interests: or • (b) The dissolution of the partnership or limited liability company without its immediate reconstitution. (2) If TENANT is a closely held corporation (i.e., one whose stock is not publicly held and not traded through an exchange or over the counter): (a) The sale or other transfer, within a twelve-month (12-month) period, of more than an aggregate of twenty-five percent (25%) of the voting shares of TENANT (other than to immediate family members by reason of gift or death); or (b) The dissolution. merger; consolidation; or other reorganization of TENANT. Section 10.03 Application for Assignment. A condition of an assignment shall be that TENANT shall file with the CITY an application to assign the leasehold prepared by the prospective assignee. Concurrently with filing the application, TENANT shall pay a reasonable fee associated with the cost pf processing said application, in cash or certified or cashier's check to enable CITY adequately to investigate the proposed assignee's qualifications as a permitted assignee. CITY shall not be required to ® account for the use of the sum paid. If the proposed assignee's net worth on the date of assignment is not sufficient to reasonably guarantee successful operation of the Premises in Lease Agreement - van Beurdenr2/09 -24- compliance with all applicable CITY, County, State and federal requirements, CITY may withhold approval of the assignment or condition it upon TENANT'S guarantee of such assignee's obligations hereunder for such period as CITY deems advisable. Net worth shall mean the amount by which the total of all assets shall exceed the total .of all liabilities as determined in accordance with general accepted accounting principles as approved by CITY'S auditor, or other authorized representative or agent. Section 10.04 Probate Transfer of Assignment. If TENANT is an individual, nothing herein contained will prevent the transfer of this Lease by will, or by operation of law under the intestacy provisions of the California Probate Code as it may be amended from time to time. Probate sale of the leasehold interest will not be permitted without the consent of the CITY, evidenced by resolution, first had and obtained. Section 10.05 No Sublease Without CITY'S Consent. TENANT shall not sublease the whole nor any part of the Premises, or license, permit, or otherwise allow any other person (the employees of TENANT excepted) to occupy or use the Premises, or any portion thereof, without the prior written consent of CITY's Harbor director, or any future successor to the duties of the City's Harbor Director. A consent to one subletting, occupation, licensing or use shall not be deemed to. be a consent to any subsequent subletting, occupation, licensing or use by another person. Any sublease or license without CITY'S written consent shall be void, and shall at CITY'S option, terminate this Lease. CITY shall not unreasonably nor arbitrarily withhold its consent to sublet to one who is qualified and financially reliable. CITY'S consent to any occupation, use, or licensing shall be in CITY'S sole and absolute discretion. Notwithstanding any provisions herein to the contrary, the terms "assignment," "subletting," "occupation," or "use," shall not be construed or interpreted to mean or include the temporary, short term renting or leasing of boat slips, motel, hotel, or apartment accommodations on the premises. Section 10.06 Subtenant Subject to Lease Terms. Any and all subleases shall be expressly made subject to all the terms, covenants, and conditions of this Lease. In no event shall the term of any sublease extend beyond the term of this Lease. Subject to Section 10.09, termination of this Lease prior to the expiration of this Lease term shall also terminate any and all subleases. A breach of the terms of this Lease by a subtenant shall constitute a breach on the part of TENANT and shall subject both the subtenant and TENANT to all the remedies provided to CITY herein and by law. Failure by any subtenant Lease Agreement - Van Beurden12/09 -25- ® to report Gross Sales or to pay Percentage Rent due from subtenant shall constitute a breach of this lease. TENANT hereby agrees to and does guarantee payment of such Percentage Rent due by a subtenant under the terms of this lease. Section 10.07 Consent Form Agreement. Prior to any consent by CITY to any sublease hereof; TENANT shall cause to be executed between TENANT and any subtenant an agreement making the CITY a third party beneficiary, in a form acceptable to CITY. whereby the subtenant agrees to be bound by all of the terms; covenants and conditions of this Lease. Further, it is agreed by TENANT that any default by the subtenant of any of the terms, covenants and conditions of this Lease shall be deemed to be violations by TENANT of this Lease and that all remedies of CITY for such violation; including termination of this Lease, shall immediately be enforceable by CITY against TENANNT. TENANT shall apply any and all monies received from any subtenant first to the payment of obligations of the subtenant to CITY. Section 10.08 TENANT and Guarantor Remain Liable. Prior to approval by CITY to any sublease hereof. TENANT shall agree to be primarily ® and jointly and severally liable to CITY for all obligations due CITY by any subtenant, including the payment of rents, and TENANT shall agree that CITY may proceed directly against TENANT for any obligation owing CITY by the subtenant. If this Lease is guaranteed, neither the sublease nor CITY'S approval thereof shall release the guarantor from its obligations pursuant to the guaranty. Section 10.09 Nondisturbance. On the terms set forth below, CITY may enter into agreements with subtenants providing that in the event of any termination of this Lease prior to the expiration date, CITY will not terminate or otherwise disturb the rights of the subtenant under such sublease, but will instead honor such sublease as if such agreement had been entered into directly between Landlord and such subtenant, conditioned upon such subtenant's agreement to attom to Landlord and full performance of all obligations under the sublease in question ("Non -Disturbance Agreement"). CITY agrees to execute a Non -Disturbance Agreement in connection with a particular sublease provided that Tenant provides CITY with a copy of the sublease, and the Non -Disturbance Agreement is customary in form and substance and otherwise reasonably acceptable to CITY. Lease Agreement - van Beurdenl2/09 -26- Article 11 DEFAULT AND TERMINATION O Section 11.01 Abandonment by TENANT. Should TENANT breach this Lease and abandon all or any part of the Premises prior to the scheduled expiration of the term of this Lease, CITY may continue this Lease in effect by not terminating TENANT'S right to possession of the Premises, in which event CITY shall be entitled to enforce all CITY'S rights and remedies under this Lease including the right to recover the Rent specified in this Lease as it becomes due under this Lease. Section 11.02 Termination for Breach by TENANT. All covenants and agreements contained in this Lease are declared to be conditions to this Lease and to the term hereby demised to TENANT. Should TENANT fail to perform any covenant, condition, or agreement contained in this Lease, except for payment of any Rent or other monetary amount due, and such failure is not cured within thirty (30) days after written notice thereof is served on TENANT, then CITY may terminate this Lease immediately, and in the event of such termination, TENANT shall have no further rights hereunder and TENANT shall thereupon forthwith remove from the Premises and shall have no further right or claim thereto and CITY shall immediately thereupon have the right to re-enter and take possession of the Premises, subject only to appropriate legal process. Section 11.03 Termination for Failure to Pay Rent. If any payment of Rent is not made as herein provided and such failure to pay is not cured within three (3) days after written notice thereof is served on the TENANT, CITY shall have the option to immediately terminate this Lease; and in the event of such termination, TENANT shall have no further right or claim thereto and CITY shall immediately thereupon have the right to re-enter and take possession of the Premises, subject only to appropriate legal process. Section 11.04 Lender May Cure Default. CITY shall afford the Lender under any Leasehold Encumbrance of record with CITY the right to cure any default by TENANT of the covenants, conditions, or agreements hereof, as provided in Article 5 of this Lease. 11 Lease Agreement -Van Beurdenl2/09 -27- Section 11.05 Attornevs' Fees. In the event the CITY finds it necessary to retain an attorney in connection with the default by the TENANT or enforcement of any of the terms, conditions, and covenants of this Lease, even though litigation is not instituted, TENANT shall pay to CITY its reasonable attorneys' fees. Non-payment of attorneys' fees by TENANT within three (3) days after written notice is served on TENANT shall give rise to an independent legal action by CITY to collect same. If CITY is successful in such legal action, CITY shall also be entitled to attorney fees and costs for the collection action. To the extent that CITY is represented by the Croy Attorney, a reasonable sum for such attorneys' services will be included as attorneys' fees. Section 11.06 Damages for Breach. Should TENANT default in the performance of any covenant; condition or agreement contained in this Lease and the default be incurable or not be cured within the time period set forth hereinabove, then CITY may terminate this Lease and: (1) Bring an action to recover from TENANT: (a) The worth at the time of award of the unpaid rent which had been earned at the time of termination of the Lease; (b) The worth at the time of award of the amount by which the unpaid rent which would have been earned after termination of the Lease until the time of award exceeds the amount of rental loss that TENANT proves could have been reasonably avoided-, (c) The worth at the time of award of the amount by which the unpaid rent for the balance of the term after the time of award exceeds the amount of rental loss that TENANT proves could be reasonably avoided-, and (d) Any other amount necessary to compensate CITY for all detriment proximately caused by TENANT'S failure to perform its obligations under this Lease; and (2) Bring an action, in addition to or in lieu of the action described in subparagraph (1) of this Section, to re-enter and regain possession of the Premises in the manner provided by the laws of unlawful detainer of the State of California then in effect. Lease Agreement - Van Beurden 12/09 -28- Section 11.07 Cumulative Remedies. The remedies available to CITY in this Article shall not be exclusive but shall be cumulative with and in addition to all remedies now or hereafter allowed by law or elsewhere provided in this Lease. Section 11.08 Waiver of Breach. The waiver by CITY of any breach by TENANT of any of the provisions of this Lease shall not constitute a continuing waiver or a waiver of any subsequent breach by TENANT either of the same or a different provision of this Lease. Section 11.09 Surrender of Premises. On expiration or sooner termination of this Lease, TENANT shall surrender the Premises, and, subject to Section 4.04, all improvements in or on the Premises, and all facilities in any way appertaining to the Premises, to CITY in good, safe, and clean condition, reasonable wear and tear excepted. Article 12 MISCELLANEOUS Section 12.01 Attorneys' Fees. Should any litigation be commenced between the parties to this Lease concerning the Premises, this Lease, or the rights and duties of either in relation thereto, the party, CITY or TENANT, prevailing in such litigation shall be entitled, in addition to such other relief as may be granted in the litigation, to a reasonable sum as and for its attorneys' fees in such litigation, which shall be determined by the court in such litigation or in a separate action brought for that purpose. The "prevailing" party shall mean the party who obtains substantially the relief sought by that party. To the extent that CITY is represented by the CITY Attorney, a reasonable sum for such attorneys' services will be included as attorneys' fees. Section 12.02 Notices. Any and all notice or demands by or from CITY to TENANT, or TENANT to CITY, shall be in writing.' They shall be served either personally, or by registered or certified mail. Any notice or demand to CITY may be given to: Lease Agreement - Van Beurdenl2/09 -29- (� Harbor Director ® 1275 Embarcadero Morro Bay, California 93442 with a copy to: City Manager of the City of Morro Bay City Hall 595 Harbor Street Morro Bay CA 93442 Any notice or demand to TENANT may be given at: Flying Dutchman Enterprises Stan Van Beurden PO Box 1027 Morro Bay CA 93442 Such addresses may be changed by written notice by either party to the other party. Section 12.03 Governine Law and Jurisdiction. ® This Lease, and all matters relating to this Lease, shall be governed by the laws of the State of California in force at the time any need for interpretation of this Lease or any decision concerning this Lease arises. CITY and TENANT consent to exclusive personal and subject matter jurisdiction in the Superior Court of the State of California in and for the county where the Premises are located, and each party waives any claim that such court is not a convenient forum. Each party hereby specifically waives the provisions of California Code of Civil Procedure Section 394, and any successor statute thereto. Section 12.04 Binding on Successors. Subject to the provisions herein relating to assignment and subletting each and all of the terms, conditions, and agreements herein contained shall be binding upon and inure to the benefit of the successors and assigns of any and all of the parties hereto; and all of the parties hereto shall be jointly and severally liable hereunder. Section 12.05 Partial Invaliditv. Should any provision of this Lease be held by a court of competent jurisdiction to be either invalid. void, or unenforceable, the remaining provisions of this Lease shall remain in full 46 force and effect unimpaired by the holding. 'Lease Agreement - Van Beurdenl2/09 -30- Section 12.06 Sole and Only Agreement. 0 This Lease, including all exhibits incorporated by reference, constitutes the sole and only agreement between CITY and TENANT respecting the Premises and the leasing of the Premises to TENANT. Any other agreements or representations respecting the Premises and their leasing to TENANT by CITY, which are not expressly set forth in this Lease, are null and void. The lease terms herein specified correctly set forth the obligations of CITY and TENANT as of the date of this Lease. No modification, amendment, or alteration of this Lease shall be valid unless it is in writing and signed by both parties. Section 12.07 Modification. This agreement shall not be modified except pursuant to a written agreement executed by the MAYOR and CITY CLERK pursuant to prior CITY Council approval. Notwithstanding CITY Council approval, no agreement shall become effective until such agreement is in fact executed by the MAYOR and CITY CLERK.. TENANT understands that this agreement may not be modified by oral statements by any person representing the CITY including the MAYOR and CITY CLERK. TENANT specifically agrees not to rely on oral statements, purported oral waivers, or purported oral modifications and agrees not to rely upon purported written modifications unless they meet the requirements of this paragraph and are approved in writing pursuant to formal City Council action and a subsequent written modification signed by the MAYOR and CITY CLERK. If the title of any.person authorized to act for CITY under this Lease shall be changed during the term of this Lease, then the person who succeeds to substantially the same responsibilities with respect to the CITY shall have the authority to act for CITY under this Lease. Section 12.08 Time of Essence. Time is expressly declared to be the essence of this Lease. Section 12.09 Memorandum of Lease for Recording. CITY and TENANT shall, at the request of either at any time during the term of this Lease, execute a memorandum or "short form" of this Lease, which shall describe the parties, set forth a description of the leased premises, specify the term of this Lease, and incorporate this Lease by reference. 0 Lease Agreement -Van Beurden r2/09 -31- Article 13 SPECIAL PROVISIONS PECULIAR TO THIS LEASE SITE The following provisions apply to this Lease site only: Section 13.01 TENANT's Obligation to Redevelop Site TENANT has proposed a major redevelopment of the premises and this lease is an interim lease to allow TENANT to operate a restaurant on premises while processing permits and completing design/development of the proposed development. TENANT agrees that it shall be a material default and breach of this lease agreement to fail to meet the following time frames for said redevelopment project. May 31, 2010, complete any necessary interim repairs and improvements to re-establish a restaurant on the premises and meet the requirements of Section 3.03 hereof. OPERATION OF BUSINESS. CITY agrees to waive the requirements of Section 3.03 hereof for the period February 1, 2010 to May 31, 2010 March 31, 2011 TENANT shall complete City Concept approval of plans for redevelopment project as described in TENANT's proposal dated July 2009, including the boat ® slips on the premises. December 31, 2011 TENANT shall obtain Coastal Commission permits for said project. December 31, 2012 TENANT shall obtain City precise plan approval for said project March 31. 2013 TENANT shall obtain City building permit for said project. EXECUTED on CITY OF MORRO BAY 20 . at County. California. Flying Dutchman Enterprises a California Corporation doing business as By: : at I Stan Van Beurden, President and Sole Shareholder Lease Agreement -Van Beurden 12/09 -32- EXHIBIT A :COPY OF PAR 93 25 Al� 3-4�5 W cli!in/ —4 Lease Agreement Van Beurden 12-09 Exhibit A City of Morro Bay Insurance Requirements for Lessees u Signature -Authorized Representative Address CG 20 11 11 85 Insurance Services Office, Inc. Form (Modified) Insurance\Form#3 Rev. 8/01 0 Lease Agreement - Van Beurdenl2/09 — Exhibit B u RESOLUTION NO. 57-09 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA APPOINTING THE CITY TREASURER AND CITY ENGINEER THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay's Municipal Code Section 2.12.090 does not grant to the City Manager the power to appoint the City Treasurer or the City Engineer; and WHEREAS, the City has determined that Susan Slayton possesses the skills and abilities necessary to be an effective City Treasurer; and WHEREAS, the City has determined that Robert Livick possesses the skills and abilities necessary to be an effective City Engineer. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, that the following appointments are made: Susan Slayton City Treasurer Robert Livick City Engineer PASSED AND ADOPTED, by the City Council of the City of Morro Bay, at a regular meeting thereof held on the 14'h day of December 2009, by the following vote: AYES: Borchard, Grantham, Smukler, Winholtz, Peters NOES: None ABSENT: None ® RESOLUTION NO.43-09 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA AUTHORIZATION TO ENTER INTO A FINANCIAL ASSISTANCE AGREEMENT WITH THE STATE WATER RESOURCES CONTROL BOARD FOR PHASE I CONSTRUCTION OF A LOW IMPACT DEVELOPMENT BOAT REPAIR YARD AND DESIGNATION OF A REPRESENTATIVE TO SIGN THE FINANCIAL ASSISTANCE AGREEMENT, AND ANY AMENDMENTS THERETO THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay is authorized to enter into a financial assistance agreement with the State of California and the State Water Resources Control Board for Phase I construction of a Low Impact Development boat repair yard; and WHEREAS, the City of Morro Bay authorizes the Harbor Director, or designee, to sign the financial assistance agreement, and any amendments thereto; and ® WHEREAS, the City of Morro Bay agrees and further does authorize the aforementioned representative or his designee to certify that the City of Morro Bay has and will comply with all applicable federal and state statutory and regulatory requirements related to any financial assistance funds received. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, hereby adopts Resolution No. 43-09 on July 13, 2009. PASSED AND ADOPTED b� the City Council of the City of Morro Bay at a regular meeting thereof held on the 13 day of July 2009 on the following vote: AYES: Borchard, Grantham, Smukler, Winholtz, Peters NOES: None ABSENT: None 11 ® CERTIFICATION: I hereby certify that the foregoing Resolution No. 43-09 was duly and regularly adopted by the City Council of the City of Morro Bay at the meeting thereof held on the 13th day of July 2009, motion by Councilmember Winholtz and seconded by Councilmember Grantham. AYES: Borchard, Grantham, Smukler, Winholtz, Peters NOES: None ABSTAIN: None ABSENT: None ATTEST: �)jotijt BUDGET BAUER, City Clerk n ® RESOLUTION NO.42-09 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA ESTABLISHING THE ANNUAL PROPOSITION 4 APPROPRIATIONS LIMIT FOR THE FISCAL YEAR 2009/10 THE CITY COUNCIL City of Morro Bay, California WHEREAS, Article }UM of the California Constitution restricts the appropriation of tax proceeds that the City receives in any given fiscal year; and WHEREAS, the City has calculated the 2009/10 appropriations limit in accordance with the provisions of Article )= of the California Constitution; and WHEREAS, Proposition 111 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 2009/10 Appropriations Limit at $19,955,375. PASSED AND ADOPTED, by the City Council of the City of Morro Bay, at a regular meeting thereof held on the 13's day of July 2009, by the following vote: AYES: Borchard, Grantham, Smukler, Peters NOES: Winholtz ABSENT: None BRIDGETT BAUER, City Clerk _ c a . .... ... ...$. F6 N . .... ... ...R. R . R F F r RN S E . .... ... ...$ 3 og� ® . .... ... . 3 u o_ 8 8 8 x �e . ... ... ..... $ . g B tl. ➢ �� L�4 H� q $ S 8 ¢ ATTACHMENT A 0, 11 11 CITY OF MORRO BAY APPROPRIATION LIMIT DOCUMI FISCAL YEAR 2008/09 PROCEEDS OF TAXES CALCULATION [1] PROCEEDS TOTAL PROCEEDS OTHER THAN ESTIMATED OF TAXES TAXES REVENUES PROPERTY TAXES $ 3,541,072 $ OTHER TAXES 4,225,000 PERMITS REVENUE FROM AGENCIES STATE 825,457 STATE/COUNTY GRANTS FEDERAL GRANTS USE OF MONEY @ PROPERTY INTEREST 32,177 RENT FINES 8. FORFIETURES CHARGES FOR SERVICES OTHER REVENUES 3,541,072 682,400 4,907,400 321,280 321,280 825,457 279,D00 279,000 185,472 185,472 57,623 89,800 200,D00 200,000 77,000 77,000 12,832, 536 12,832,536 808,506 808,5D6 $ 8,623,706 $ 15,443,817 $ 24,067,523 APPROPRIATION LIMIT CALCULATION (21 [31 CALIFORNIA POPULATION YEAR PCPI CHANGE CHANGE LIMIT 1978-79 BASE YEAR $ 3,D46,393 1979-80 10.17% 1.38% 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 2.30% 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% 2.06% 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 2008-09 4.29% 1.12% 19,634,110 2009-10 0.62% 1.01% 19,955,375 PROCEEDS OF TAXES 8,623,706 PROCEEDS OF TAXES UNDER APPROPRIATION LIMIT $ 11,331,669 (1) Per City of Morro Bay 2009/10 Adopted Annual Budget (2] Per State Department of Finance (per capita personal income). (3] Per State Departnent of Finance (population growth of City or County, whichever is greater). ATTACHMENT B Fiscal Year 2009-2010 2 Enclosure II Annual Percent Change in Population Minus Exclusions January 1, 2008 to January 1, 2009 and Total Population, January 1, 2009 Total County Percent Chance — Population Minus clusions — Population City 2008-2009 1-1-08 1-1-09 1-1-2009 San Luis Obispo Anoyo Grande 0.66 16,968 17,080 17,080 Atascadero 0.76 27,166 27,373 28.438 El Paso De Robles 0.85 29,697 29,949 29,949 Grover Beach 0.72 13,159 13,254 13,254 Marro Bay 0.47 10,506 10.555 10,555 Pismo Beach 1.07 8,568 8.660 8,660 San Luis Obispo 0.51 44,521 44,750 44,750 Unincorporated 1.44 109,713 111,298 117.743 County Total 1.01 260.298 262,919 270,429 (-) Exciusiore inckide residents on federal military installatbm and group Quarters residents in state mental inU turns, state and federal connectional instrtutons and veteran hones. Page 1 ATTACHMENT C Fiscal Year 2009-2010 9 2 El May 2009 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 2009-2010 appropriation limit is: Per Capita Personal Income Fiscal Year Percentage change (FY) over prior year 2009-2010 0.62 B. Following is an example using sample population change and the change in California per capita personal income as growth factors in computing a 2009-2010 appropriation limit. 2009-2010: Per Capita Cost of Living Change = 0.62 percent Population Change = 1.11 percent Per Capita Cost of Living converted to a ratio: Population converted to a ratio: Calculation of factor for FY 2009-2010: 0.62 + 100 = 1.0062 100 1.11 + 100 = 1.0111 100 1.0062 x 1.0111 = 1.0174 ATTACHMENT D RESOLUTION NO.41-09 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA APPROVING THE CITY TO ENTER INTO THE CALIFORNIA ENERGY COMMISSION'S ENERGY PARTNERSHIP PROGRAM THE CITY COUNCIL City of Morro Bay, California WHEREAS, the California Energy Commission's Energy Partnership Program provides technical assistance in identifying energy efficiency improvements; and WHEREAS, the City Council of the City of Morro Bay, California authorizes the City of Morro Bay to apply for technical assistance from the California Energy Commission; and WHEREAS, the City Council of the City of Morro Bay recognizes that the California Energy Commission has limited funds for technical assistance and that primary consideration will be given to those that are committed to implementing the recommended projects identified through the Energy Partnership Program; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, that the City of Morro Bay may seek funding, if necessary, to implement the recommended energy efficiency projects identified through the Energy Partnership Program; BE IT FURTHER RESOLVED, that the City Manager of the City of Morro Bay, California is hereby authorized and empowered to execute in the name of the City of Morro Bay all necessary documents to implement and carry out the purposes of this resolution. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 13th day of July 2009 on the following vote: AYES: NOES: ABSENT: Borchard, Grantham, Smukler, Winholtz, Peters None None _,• _ft &XA-� 'D BAUER, City Clerk ® RESOLUTION NO.40-09 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA AUTHORIZING THE ISSUANCE OF CREDIT CARDS THROUGH RABOBANK THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City Council of the City of Morro Bay adopted Resolution 21-94 authorizing the City Treasurer to enter into a Master Charge Card Agreement with the City's primary banking institution, Mid -State Bank; and WHEREAS, Mid -State Bank transferred its credit card services to MBNA America who transferred them to FIA Card Services, and since that transfer, the City has experienced a spike in fraudulent charges on its credit cards; and WHEREAS, Mid -State Bank was purchased by Rabobank in November 2007; and WHEREAS, the City has maintained its primary banking relationship with Rabobank; and WHEREAS, Rabobank offers credit card services with a corporate account that collects the points from its purchase rewards program, Points 2 You, for use in offsetting travel costs. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, that the City Treasurer is authorized to enter into a credit card services agreement with Rabobank. PASSED AND ADOPTED, by the City Council of the City of Morro Bay, at a regular meeting thereof held on the 13`s day of July 2009, by the following vote: AYES: Borchard, Grantham, Smukler, Winholtz, Peters NOES: None ABSENT: None BRIDGETt BAUER, City Clerk 11 RESOLUTION NO.39-09 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA CONSENTING TO THE CHAPTER 11 BANKRUPTCY RESTRUCTURING OF CHARTER COMMUNICATIONS THE CITY COUNCIL City of Morro Bay, California WHEREAS, Charter Communications Properties L.L.C., an indirect, wholly -owned subsidiary of Charter Communications, Inc. (Charter) is a franchisee of a Cable System Franchise Agreement in the City of Morro Bay (Franchise Authority); and WHEREAS, on March 27, 2009, Charter and certain of its subsidiaries filed voluntary petitions in the United States Bankruptcy Court for the Southern District of New York (Bankruptcy Court) seeking relief under the provisions of Chapter 1 I of Title 11 of the United States Code in order to effectuate a financial restructuring (Case No. 09-11435); and WHEREAS, pursuant to the terms of agreement entered into between Charter and its key bondholders, Charter's current Class A Common Stock and Class B Common Stock will be cancelled and replaced with new voting stock owned by Paul G. Allen and such bondholders, as described in filings with the Bankruptcy Court (Reorganization), copies of which have been provided to the Franchise Authority; and WHEREAS, the Franchise Authority has concluded that its approval meets the requirements of the Cable System Franchise Agreement, is necessary for the above described Reorganization, and has submitted an FCC Form 394 and related information for such Reorganization; and WHEREAS, the Franchise Authority has considered and approves of the Reorganization described above. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California: 1. The foregoing recitals are approved and incorporated herein by reference. 2. The Franchise Authority consents to the Reorganization described herein. 3. This Resolution shall be deemed effective upon adoption. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 13th day of July 2009 on the following vote: AYES: Borchard, NOES: None ABSENT: None Grantham, Smukler, Winholtz. Peters ATTEST: ® BRIDGET AUER, City RESOLUTION NO.38-09 ® A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA WITHDRAWING RESOLUTION NO. 78-08 WHICH AMENDED THE SALARIES AND BENEFITS OF THE MANAGEMENT EMPLOYEES THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City Council of the City of Morro Bay has been presented with a balanced budget for the fiscal year 2009/10 that includes a $388,000 loan from the Water Fund; and WHEREAS, the City Council finds and determines that the loan is not a satisfactory method for balancing a budget; and WHEREAS, the City Council wishes to defer salary increases that were granted to the Management employees under Resolution No. 78-08; and WHEREAS, the Executives, by virtue of their contract language, receive any salary and/or benefit increases that are granted to the Management employees; and ® WHEREAS, by withdrawing Resolution No. 78-08, salary and benefit increases will be withdrawn from the Management and Executive employees, and deferred for a period of one year when Council will revisit this decision. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, that Resolution No 78-08 is withdrawn, and the salary and benefit increases to the Management employees and, by virtue of their contracts, Executive employees are deferred for a period of one year when Council will revisit this decision. PASSED AND ADOPTED, by the City Council of the City of Morro Bay, at a regular meeting thereof held on the 29'" day of June 2009, by the following vote: AYES: NOES: ABSENT: Borchard, Smukler, W' Grantham Peters None i► i BRIDGqT BAUER, City Clerk ® RESOLUTION NO.37-09 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA ADOPTING 2009/10 FISCAL YEAR OPERATING BUDGET 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, 2009; 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: 1. The Fiscal Year 2009/10 Operating Budget is adopted, as presented in the Preliminary Budget and in the subsequent Amendments A, 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; 5. The City Council authorizes and directs the carry -forward of balances for capital projects approved in prior fiscal years, but not completed by June 30, 2009, to the Capital Improvement Project Fund(s) for the 2009/10 ® fiscal year; ® Resolution No. 37-09 Page Two 6. The City Council directs that the hiring freeze be extended for all positions in the City workforce with the exception of Police, Fire and Dispatch; further, the City Council reserves the right to review any vacancies on a case -by -case basis as to its official policy; and 7. The City Council will take action to improve the City's financial outlook for the future by restructuring the City's business model, locating and securing new revenue sources and reviewing services for possible reductions. PASSED AND ADOPTED, by the City Council of the City of Morro Bay, at a special meeting thereof held on the 29's day of June 2009, by the following vote: AYES: Borchard, Grantham, Smukler, Winholtz, Peters NOES: None ABSENT: None J E PETERSA4ayor BRIDGET BAUER, City Clerk u E E u City of Morro Bay 2009/10 Amendments to Preliminary Budget Category Original Preliminary Budget As Amended Savings(Cost) Impact General Fund: Decrease City Council contingency $5,000 $0 $5,000 Decrease City Council personnel costs $85,565 $73,686 $11,879 Increased transfer out to Transit $19,414 $24,874 $5,460) Decrease capital project - ADA facilities $45,586 $0 $45,586 Decrease transfer in - Enterprise, Loan $388,000 $0 ($388,000 Decrease contributions to Risk Management $326,258 $216,258 $110,000 Increase transfers in - Enterprise, CAP $776,680 $934,680 $158,000 Reduce salariesibenefits - no COLA for Management and Executive employees $60,000 $0 $59,200 Decrease departmentaltravel/trainin budgets $112,302 $97,088 $15,214 District Transaction Tax (Measure ): Fire $0 359,121 ($359,121 Streets $0 275,000 ($275,000) Storm Drains $0 150,000 ($150,000 Police $0 64,700 $64,700 Public Safety $0 43,250 $43,250 Community Development Grants: Decrease revenue - CDBG $500,000 $140,475 ($359,525 Decrease revenue - HOME $500,000 $123,150 (5376,850) Decrease revenue -Ca1HOME $500,000 $120,000 ($380,000 Decrease revenue - FESG $100,000 524,000 ($76,000 Parkin In -Lieu: Increase revenue for fees $0 513,447 $13,447 Increase revenue for interest income $0 54,200 $4,200 Decrease transfer out to Transit $41,523 $24,345 $17,178 Transit: Increase DAR farebox $50,668 $53,418 $2,750 Increase Trolley farebox $8,500 $15,500 $7,000 Increase transfer in from G/F $19,414 $24,874 $5,460 Decrease transfer in from SRF $41,523 $24,345 $17,178) Increase DAR expenses $321,411 5326,411256 $5,000 Increase RTA assistance $68,046 $71, $3,210) u Category Original Prretuirmnary Budget As Amended Savings(Cost) Impact Transit continued): Decrease Trolley expenses $62,284 $55,885 $6,399 Water Revenue: Decrease transfer out to General Fund - loan $388,000 $0 $388,000 Increase transfer out to General Fund - CAP $277,064 $329,731 ($52,667) Decrease transfer in from Accumulation Fund $633,915 $244,063 ($389,852) Sewer Revenue: Increase transfer out to General Fund - CAP $176,857 $229,524 552,667) Increase transfer in from Accumulation Fund $0 $549,792 $549,792 Decrease transfer out to Accumulation Fund $558,000 $0 $558,000 Harbor Operating: Increase transfer in from Accumulation Fund $0 $51,671 $51,671 Decrease transfer out to Accumulation Fund $75,000 $65,000 $10,000 Increase transfer out to General Fund - CAP $250,016 $302,682 ($52,667) Risk Management: Decrease contributions for insurancepremiums' $915,026 $806,026 ($110,000) Water Accumulation: Increase outlay for capital improvements $0 $100,000 ($100,000) Decrease transfer out to Enterprise Fund $633,915 $244,063 $389,852 Sewer Accumulation: Increase outlay for capital improvements $0 $400,000 ($400,000 Decrease transfer in from Enterprise Fund 5588,000 $0 ($588,000 Increase transfer out to Enterprise Fund $0 $549,792 ($549,792) Harbor Accumulation: Increase transfer out to enterprise $0 $51,671 ($51,671) Decrease outlay for capital improvements $75,000 565,000 $10,000 Schedule of Capital Projects: Decrease ADA facilities $45,586 $0 545,586 Increase Nutmeg Tank $0 $100,000 ($100,000) Increase Lift Station #3 $0 $200,000 ($200,000 Increase Lift Station #2 $0 5200,000 (5200,000) Decrease self -pay parking kiosks $25,000 $15,000 $10,000 Amendment A ® RESOLUTION NO.36-09 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA AUTHORIZING THE CITY ATTORNEY TO COOPERATE WITH THE LEAGUE OF CALIFORNIA CITIES, OTHER CITIES AND COUNTIES IN LITIGATION CHALLENGING THE CONSTITUTIONALITY OF ANY SEIZURE BY STATE GOVERNMENT OF THE CITY'S STREET MAINTENANCE FUNDS THE CITY COUNCIL City of Morro Bay, California WHEREAS, the current economic crisis has placed cities under incredible financial pressure and caused them to make painful budget cuts, including layoffs and furloughs of city workers, decreasing maintenance and operations of public facilities, and reductions in direct services to keep spending in line with declining revenues; and WHEREAS, since the early 1990s the state government of California has seized over $10 billion of city property tax revenues statewide, now amounting to over $900 million each year, to fund the state budget even after deducting public safety program payments to cities by the state; and ® WHEREAS, in his proposed FY 2009-10 budget the Governor has proposed transferring $1 billion of local gas taxes and weight fees to the state general fund to balance the state budget, and over $700 million in local gas taxes permanently in future years, immediately jeopardizing the ability of the City to maintain the City's streets, bridges, traffic signals, streetlights, sidewalks and related traffic safety facilities for the use of the motoring public; and WHEREAS, the loss of almost all of the City's gas tax funds will seriously compromise the City's ability to perform critical traffic safety related street maintenance, including, but not limited to, drastically curtailing patching, resurfacing, street lighting/traffic signal maintenance, payment of electricity costs for street lights and signals, bridge maintenance and repair, sidewalk and curb ramp maintenance and repair, and more; and WHEREAS, some cities report to the League of California Cities that they will be forced to eliminate part or all of their street maintenance operations while others will be forced to cut back in other areas (including public safety staffing levels) to use city general funds for basic street repair and maintenance. Furthermore, cities expect that liability damage awards will mount as basic maintenance is ignored and traffic accidents, injuries and deaths increase; and n LJ ® Resolution No. 36-09 Page Two WHEREAS, in both Proposition 5 in 1974 and Proposition 2 in 1998 the voters of our state overwhelmingly imposed restriction on the state's ability to do what the Governor has proposed, and any effort to permanently divert the local share of the gas tax would violate the state constitution and the will of the voters; and WHEREAS, cities and counties maintain 8 1 % of the state road network while the state directly maintains just 8%; and WHEREAS, ongoing street maintenance is a significant public safety concern. A city's failure to maintain its street pavement (potholes filling, sealing, overlays, etc.), traffic signals, signs, and street lights has a direct correlation to traffic accidents, injuries and deaths; and WHEREAS, according to a recent statewide needs assessment' on a scale of zero (failed) to 100 (excellent), the statewide average pavement condition index (PCI) is 68, or "at risk." Local streets and roads will fall to "poor" condition (Score of 48) by 2033 based on existing funding levels available to cities and counties. NOW, THEREFORE, BE IT RESOLVED THAT THE CM COUNCIL OF ® THE CITY OF MORRO BAY hereby directs the City Attorney to take all necessary steps to cooperate with the League of California Cities, other cities and counties in supporting litigation against the state of California if the legislature enacts and the governor signs into law legislation that unconstitutionally diverts the City's share of funding from the Highway Users Tax Account (HUTA), also known as the "gas tax," to fund the state general fund; and RESOLVED FURTHER, that the City Manager or Clerk shall send this resolution with an accompanying letter from the Mayor to the Governor and each legislator, informing them in the clearest of terms of the City's adamant resolve to oppose any effort to frustrate the will of the electorate as expressed in Proposition 5 (1974) and Proposition 8 (1998) concerning the proper use and allocation of the gas tax; and RESOLVED FURTHER, that a copy of this Resolution shall be sent by the city manager or clerk to the League of California Cities, the local chamber of commerce, and other community groups whose members are affected by this proposal to create unsafe conditions on the streets of our City for pedestrians, bicyclists and motorists. �J EI U Resolution No. 36-09 Page Three PASSED AND ADOPTED by the City Council of the City of Morro Bay at regular meeting thereof held on the 22°d day of June 2009 on the following vote: AYES: Borchard, Grantham, Smukler, Winholtz, Peters NOES: None ABSENT: None ATTEST: BWDGET BAUER, City Clerk t California Statewide Local Streets and Roads Needs Assessment, Nichols Consulting Engineers, Chtd. (2008). sponsored by the League of California Cities, California State Association of Counties and County Engineers Association of California. ® RESOLUTION NO.35-09 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA SUPPORTING THE "SAVE CALIFORNIA'S STATE PARKS" CAMPAIGN THE CITY COUNCIL City of Morro Bay, California WHEREAS, the California state park system is home to 279 state parks, beaches, historic parks, recreation areas, and other park units; WHEREAS, California's economy is dependent on $9.6 billion annually in travel and tourism revenues, a large portion of which are derived from visitation to the state's unmatched state park system; WHEREAS, in our area Morro Bay State Park, Montana de Oro State Park, Los Osos State Nature Reserve, Hearst San Simeon State Park, Estero Bluffs State Park, Morro Strand State Beach, Pismo State Beach, and W.R. Hearst Memorial State Beach (including the Morro Bay Museum of Natural History, and Pismo Nature Center and Monarch Butterfly Grove) are significant draws for tourism and economic activity attributed to State Park visitation; ® WHEREAS, State Parks are an important economic engine to the local communities in which they are located and studies have shown that every $1 invested in the state park system returns $2.35 to the state's General Fund, largely in the form of economic activity in local economies; WHEREAS, the Governor's May Revise proposes to eliminate state funding for the state park system, resulting in the closing of 220 state parks; WHEREAS, such a proposal creates considerable harm for local governments that rely on state parks for their community's livelihood and community identity; WHEREAS, closing state parks will forgo millions of dollars of fee revenue, park - generated concessions and revenues, volunteer hours, and private support intended to enhance the system and help shore up park needs; WHEREAS, the closure of Morro Bay State Park; Montana de Oro State Park, Los Osos State Nature Reserve, Hearst San Simeon State Park, Estero Bluffs State Park, Morro Strand State Beach, Pismo State Beach, and W.R. Hearst Memorial State Beach (including the Morro Bay Museum of Natural History, and Pismo Nature Center and Monarch Butterfly Grove) will cause the loss of over $104 million dollars to the local economy per year and $9.6 billion to the State of California's economy, the loss of jobs, loss of protection of endangered species, ® loss of scientific research and will also cause increased crime and fire danger. ® Resolution No. 35-09 Page Two WHEREAS, the need for available, affordable vacation destinations and travel spots is on the increase in California, given that camping reservations for 2009 have logged 25,000 reserved nights, compared to slightly over 20,000 nights in 2008 and over 19,000 in 2007; WHEREAS, this proposal will severely impact Californians, particularly in these tough, economic times; WHEREAS, California's state parks were set aside precisely to safeguard resources and opportunities that would not otherwise be available without the strong support of the public sector; WHEREAS, it is recognized that the administration of State Parks by local counties and municipalities is more expensive than most of these organizations can realistically absorb including infrastructures of water, sewer and road systems as well as services and enforcement provided by State Park personnel. It is recognized that the Department of California State Parks is the best -qualified entity to administer State Parks. THEREFORE BE IT RESOLVED, that the Central Coast Natural History Association and citizens of the California's Central Coast hereby urges the Legislature to reject the proposal ® to eliminate General Fund funding for the state park system and close 220 state parks, to recognize the immense and disastrous economic domino effect that would result in the closure of the state parks, uphold the public's trust in protecting and preserving public access to the treasures in the state park system, and to identify funding to enable all state parks to remain open for the public's access and enjoyment; AND BE IT FURTHER RESOLVED, that the City of Morro Bay supports the California State Park Access Pass as a funding mechanism to keep the state park system open and available to Californians. IN WITNESS WHEREOF, the City of Morro Bay does hereby adopt this resolution this, the 22°d day of June 2009. Copies of this resolution will be transmitted to our local elected officials and the Governor. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 22°d June 2009 by the following vote: AYES: Borchard, Grantham, Smukler, Winholtz NOES: Peters ABSENT: None BETTY VIJOLTZ, Vice -May ATTEST: BRIDGEIQf BAUER, City Clerk E 1 11 RESOLUTION NO.34-09 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, ADOPTING REVISIONS TO THE MASTER FEE SCHEDULE THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City Council finds that fees and charges for City services are annually in need of review for possible updating to reflect changes in the cost of providing those services; and WHEREAS, the California Constitution, in Article 13B Government Spending Limitation Section 8(c), states that proceeds in excess of user charges and user fees that exceed the costs reasonably bome by the City in providing the regulation, product or service are considered proceeds from taxes that are subject to the annual appropriation limit; and WHEREAS, the City has reviewed these fees and finds that they do not exceed the actual costs of providing related services; and WHEREAS, the City's Municipal Code Section 3.34.020 provides for the annual review of the Master Fee Schedule and revision; and WHEREAS, on August 11, 2008, the City Council adopted Resolution No. 49-08; which stated that "the Master Fee Schedule will be brought back in its entirety for review annually." NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, that the Master Fee Schedule be revised and published as amended. 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 June 2009, by the following vote: AYES: Borchard, Grantham, Smukli NOES: None ABSENT None BRIDGE AUER, City Clerk ® RESOLUTION NO. 33-09 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA AUTHORIZING THE SAN LUIS OBISPO COUNTY ASSESSOR TO ASSESS AMOUNTS DUE ON DELINQUENT SOLID WASTE COLLECTION AND DISPOSAL ACCOUNTS AS TAX LIENS AGAINST THE PROPERTIES THE CITY COUNCIL City of Morro Bay, California WHEREAS, Sections 8.16.170 and 8.16.375 of the Morro Bay Municipal Code establish that all places and premises in the City in or on which solid waste is created, accumulated or produced must use the solid waste collection and disposal service provided by the City's franchisee and that the franchisee is responsible for collecting fees for the service; and WHEREAS, Section 8.16.170 of the Municipal Code also states that for the purposes of establishing responsibility for the payment of fees and charges, the person who has applied for water service to each place or premises within the City is responsible for paying for the service, and that the owner of the property which is furnished service, and the customer who applies for service, if different from the property owner, shall jointly be responsible for the payment of all rates, charges and fees including penalties and that unpaid obligations shall run with the land and ® shall lead to delinquency for the property involved; and C WHEREAS, Section 8.16.385 of the Municipal Code further provides a method by which the franchisee may take actions to collect fees from the owners of properties involved in delinquent solid waste collection and disposal accounts which includes requesting the City to file a tax lien; and WHEREAS, the franchisee, Morro Bay Garbage Service, has taken the actions required within the Municipal Code to collect fees from delinquent accounts as certified by franchisee and incorporated herein, and has provided the required list of debtors whose account is still delinquent. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that the San Luis Obispo County Assessor is hereby authorized to assess the amounts due on delinquent accounts as established and certified by the franchisee Morro Bay Garbage Service as liens against the properties listed below: Property owners Parcel Numoer Amount Bell, Maridee 066-163-022 $ 226.79 Bennett Lois P Heirs of 066-204-021 $ 636.62 Curaza, Dolly 068-291-009 $ 212.18 Curtis, Chandelle 068-218-009 $ 74.42 Eisenzimmer, Dave 065-092-075 $ 201.55 Gaoiran, Juana 068-156-016 $ 901.50 Howell, Nicholas J 068-231-020 $ 425.92 Hughes, Roger 066-091-012 $ 124.34 Margon, Carolyn 068-156-024 $ 389.52 C E C Property Owners Parcel Number Amount Osborn, Lillia 068-340-014 $ 167.96 Portillo, Gilbert & Enedina 066-164-025 $ 81.60 Rankin, John R 068-249-025 $ 89-52 Rheimnschild, Gary 066-391-030 $ 164-26 Rojo, Debi 066-023-012 $ 398.37 Rybnikar, Billie 066-092-009 $ 271.14 Segovia, German & Natalie 066-082-030 $ 367.36 Tartaglia 1991 Trust 066-265-014 $ 330.54 Thompson, James C & Aurora 068-263-015 $ 189.27 Viana Development LLC 068-251-040 $ 87.68 Victor Graziano Trust 066-066-005 $ 473.58 Walls, Emerson B. 068-256-034 $ 199.70 Williams, Cathy 068-249-007 $ 153.47 PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 22th day of June 2009 by the following vote: AYES: Borchard, Grantham, Smukler, Winholtz, Peters NOES: None ABSENT: None ATTEST: RESOLUTION NO. 32-09 ® 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 11, 2009 the City Council did adopt Resolution No. 22-09 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 22, 2009 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 ofthe ® annual assessment for the North Point Landscaping and Lighting Maintenance Assessment District on June 23, 2008 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 2009-10 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 2009-10 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 22 a day of June 2009 by the following roll call vote: AYES: NOES: ABSENT: Borchard, Grantham, Smukler, Winholtz, Peters None None ® ATTTEST(:: 1`� I ��� YJo BREDGET17 BAUER, CITY CLERK RESOLUTION NO. 31-09 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 11, 2009 the City Council did adopt Resolution No. 21-09 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 22, 2009 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 ofthe annual assessment for the Cloisters Landscaping and Lighting Maintenance Assessment District on June 22, 2009 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 2009-10 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 2009-10 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 22 a day of June 2009 by the following roll call vote: AYES: NOES: ABSENT: Borchard, Grantham, Smukler, Winholtz, Peters None None BRIDGEqBAUEI� is RESOLUTION NO.30-09 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA CONTINUING THE 2008/09 BUDGET THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City Council has duly passed the 2008/09 budget; and WHEREAS, the City Council has delayed passage of the 2009/10 operations budget pending further information and/or amendments; and WHEREAS, the 2008/09 budget ends on June 30, 2009; and WHEREAS, the City Council deems it appropriate to continue the operation of City services until the passage of the 2009/10 budget; and WHEREAS, Government Code Section 29088(b) allows entities to pass a Resolution, continuing the prior year's operating budget for up to 60 days. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, that the 2008/09 operating budget is continued for 60 days (August 30, 2009) or until the 2009/10 operating budget is adopted, whichever occurs first. 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 June 2009, on the following vote: AYES: Borchard, Grantham, Smukler, Winholtz NOES: Peters ABSENT: None BR1DGE13 BAUER, City Clerk 11 RESOLUTION NO. 29-09 ® RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, OPPOSING THE PASSAGE OF ASSEMBLY BILL 761 WHICH WOULD ESTABLISH STATEWIDE VACANCY DECONTROL FOR ALL MOBILEHOME RENT CONTROL THE CITY COUNCIL City of Morro Bay, California WHEREAS, Assembly Bill 761 has been introduced into the California State Assembly by Assembly Member Charles Calderon; and WHEREAS, as currently written, Assembly Bill 761 would establish statewide mobilehome vacancy decontrol in all mobilehome parks that have local mobilehome rent control; and WHEREAS, existing law permits rent control in mobile home parks and exempts certain rental agreements relating to mobilehomes from any local measure establishing the maximum amount that a landlord may charge a tenant for rent; and WHEREAS, AB 761 would override the voters' rejection of Proposition 98, which voters throughout California defeated by a wide margin, by establishing statewide mobilehome vacancy decontrol; and WHEREAS, AB 761 is an attempt to permit mobilehome park owners to increase the rent on mobilehomes, with no limits, when owners decide to sell their homes; and ® WHEREAS, AB 761 would increase rents and reduce the affordability of this kind ofhousing, thus reducing the pool of affordable housing in the community; and WHEREAS, such unfair rent increases would significantly reduce the value of the homes and could eliminate reasonable possibility of sale; and WHEREAS, the City of Morro Bay has consistently fought to protect rent stabilization restrictions in mobilehome parks; and WHEREAS, it is critical that these efforts be sustained, especial ly during the current economic times. NOW, THEREFORE, BE IT RESOLVED that the City of Morro Bay City Council hereby opposes the passage of Assembly Bill 761. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 8'" day of June 2009 by the following vote: AYES: Borchard, Grantham, Smukler, Winhol NOES: None ABSENT: None ® ATTEST: BRIDGETT UER_ City Clerk ® RESOLUTION NO. 28-09 A RESOLUTION APPROVING A 2009/2010 APPLICATION FOR FUNDING AND THE EXECUTION OF A GRANT AGREEMENT AND ANY AMENDMENTS THERETO FROM THE GENERAL/COLONIA ALLOCATION OF THE STATE CDBG PROGRAM BE IT RESOLVED by the City Council of the City of Morro Bay, County of San Luis Obispo as follows: SECTION 1: The City Council has reviewed and hereby approves an application for up to $709,500 for the following activities: General Program Administration $ 49,500 Public Improvements — Sewer Repairs $400,000 Public Improvements - Public Access Improvements $200,000 Set -Aside — Energy Efficiency Audit Program $ 60,000 SECTION 2: The City has determined that federal Citizen Participation requirements were met during the development of this application. ® SECTION 3: The City hereby approves the use of Local Leverage Funding Sources (listed below) in the amount of $66,500 to be used as the City's leverage for this application. Sewer Fund — Public Improvements — Sewer Line Repairs In -kind Staffing $31, 000 Measure Q Fund — Public Improvements — Public Access Improvements Direct Funding Contribution $25,500 CDBG Un-programmed Funds — Energy Efficiency Audit Program In -Kind Staffing $10,000 SECTION 4: The Public Services Director, Bruce Ambo, is hereby authorized and directed to sign this application and act on the City's behalf in all matters pertaining to this application. Resolution No. 28-09 Page Two SECTION 6: If the application is approved, the Public Services Director, Bruce Ambo is authorized to enter into and sign the grant agreement and any subsequent amendments with the State of California for the purposes of this grant. SECTION 7: If the application is approved, the Public Services Director, Bruce Ambo is authorized to sign Funds Requests and other required reporting forms. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Morro Bay held on June 8, 2009 by the following vote: AYES: NOES: ABSENT: ABSTAIN Borchard, Grantham, Smukler, Winholtz, Peters None None None STATE OF CALIFORNIA City of Morro Bay I, Bridgett Bauer , City Clerk of the City of Morro Bay, State of California, hereby certify the above and foregoing to be a full, true and correct copy of a resolution adopted by said City Council on this 8th day of June, 2009. Bridgett Bauer, City Clerk of the City of Morro Bay County of San Luis Obispo, State of California yo� By: I �1 jzd- Bridgett Ba er, City Clerk 11 0 RESOLUTION NO. 27-09 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA ADOPTING THE IDENTIFY THEFT PREVENTION PROGRAM THE CITY COUNCIL City of Morro Bay, California WHEREAS, Federal Trade Commission (FTC) has adopted regulations that require creditors, holding consumer or other covered accounts which are defined to mean any account where customer payment information is collected in order to bill for services rendered, to develop and implement by August 1, 2009, an Identity Theft Prevention Program that complies with those regulations; and WHEREAS, because the City of Morro Bay provides utility services to its customers, it is considered a creditor under the applicable FTC regulations, and must, therefore, comply with those regulations by adopting and implementing an Identity Theft Prevention Program; and WHEREAS, the City Council desires to take action in order to comply with the applicable FTC regulations. ® NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, that the attached Identity Theft Prevention Program is adopted. 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 June 2009, on the following vote: AYES: Borchard, Grantham, Smukler, Winholtz, Peters NOES: None ABSENT: None "vft�,,,,/ BRIDGETI BAUER, City Clerk E RESOLUTION NO. 26-09 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA AUTHORIZATION OF A SIX-MONTH LICENSE AGREEMENT FOR USE OF CITY FACILITIES WITH BIG ROCK CHARTERS/CHABLIS THE CITY COUNCIL City of Morro Bay, California WHEREAS, Zoe Anders and Annie Clapp, owners of Big Rock Charters have been operating a charter boat operation in Morro Bay with the vessel Chablis since 2007; and, WHEREAS, Big Rock Charters has requested permission to temporarily operate their charter business from City facilities to provide them time to find a permanent berthing location in Morro Bay; and, WHEREAS, Big Rock Charters provides the benefit of local jobs and adds to the activities visitors and residents can enjoy in Morro Bay; and WHEREAS, the current Harbor Department Rules and Regulations, prohibits the operation any sport fishing, tour boat, charter boat or rental business operation from any City facility or beach except as specifically allowed under a lease or license agreement: ® and, WHEREAS, the Morro Bay Municipal Code 15.12.020 and 15.16.050 allows the council to permit special events or uses at City piers and harbor facilities by resolution.. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, that the attached six-month license agreement between the City of Morro Bay and Big Rock Charters is hereby approved, and that the Mayor is hereby authorized to execute said license agreement. PASSED AND ADOPTED b� the City Council of the City of Morro Bay at a regular meeting thereof held on the 26 day of May 2009 on the following vote: AYES: Borchard, Grantham, Smukler, Winholtz, Peters NOES: None ABSENT: None J CE PETER , Mayor ATTEST: a{ 0 BRIDGET AUER, City Clerk ® RESOLUTION NO.24-09 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY ANNOUNCING FINDINGS AND APPROVAL OF THE GREEN BUILDING INCENTIVE PROGRAM THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bays (City) General Plan and Local Coastal Plan set forth goals for preserving and improving the natural and built environment of the City, protecting the health of its residents and visitors, and fostering its economy; and WHEREAS, the General Plan and Local Coastal Plan directs the City to enforce and implement the goals and policies of the General Plan; and WHEREAS, green building is a whole systems approach to the design, construction and operation of buildings that employs materials and methods that promote natural resource conservation, energy efficiency and good indoor air quality; and WHEREAS, conventional design and construction methods can produce buildings that ® negatively impact the environment; these buildings can be unnecessarily expensive to operate and contribute to excessive resource consumption, waste generation, and pollution due to unnecessary landfilling of wasted materials, and inefficient use of energy and water; and WHEREAS, emissions from conventional construction materials, including paints, carpets, and particleboard can lead to a host of health problems associated with poor indoor air quality; these health impacts can be exacerbated by conventional ventilation technology and can result in lost productivity and increased costs for maintenance, waste disposal and health care; and WHEREAS, green building design, construction, and operation can minimize or avoid these adverse impacts in a variety of ways, including by incorporating energy and water efficient technologies and landscaping, using recycled content materials, reducing construction and demolition waste, improving indoor air quality and promoting long-term economic efficiency; and WHEREAS, in recent years, green building design, construction, and operational techniques have become increasingly widespread; many homeowners, businesses, and building professionals have voluntarily sought to incorporate green building techniques into their projects and a number of local and national systems have developed to serve as guides to green building practices; and E Resolution No. 24-09 Page Two WHEREAS, the benefits of green building design, construction, and operation should be enjoyed by the residents, workers, and visitors of the City; NOW THEREFORE, BE IT RESOLVED, that the City hereby finds that green building design, construction and operation furthers the goals set forth in the City's General Plan, including the Land Use Element, Conservation Element, Open Space Element, and Housing Element, and the Local Coastal Plan; NOW THEREFORE, BE IT FURTHER RESOLVED, that private residential and commercial developers should be encouraged to use green building design, construction and operation whenever feasible; and NOW THEREFORE, BE IT FURTHER RESOLVED, by the City Council of the City of Morro Bay that: In accordance with the requirements identified in the "Green Building Incentive Program Guidelines" ("Guidelines"), attached and incorporated by reference herein, ® Upon submittal and approval of LEED or GreenPoint Rated certification documented by the appropriate third -party organization; or Inclusion of components identified as eligible "Optional Sustainability Incentives", verified by the Building Official; Applicants will be eligible for a building and plan check fee rebate(s) as identified in Sections V and VI of the Guidelines. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 26's day of May 2009 by the following vote: AYES: Borchard, Grantham, Smukler, NOES: None ABSENT: None ATTEST: BRIDG T BAUER, CITY CLERK l ® RESOLUTION NO. 23-09 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA FINDING A SEVERE FISCAL HARDSHIP WILL EXIST IF ADDITIONAL CITY PROPERTY TAX FUNDS ARE SEIZED AND ADDITIONAL UNFUNDED MANDATES ARE ADOPTED BY THE STATE OF CALIFORNIA THE CITY COUNCIL City of Morro Bay, California WHEREAS, the current economic crisis has placed cities under incredible financial pressure and caused city officials to reopen already adopted budgets to make painful cuts, including layoffs and furloughs of city workers, decreasing maintenance and operations of public facilities, and reductions in direct services to keep spending in line with declining revenues; and WHEREAS, since the early 1990s the state government of California has seized over $8.6 billion of city property tax revenues statewide to fund the state budget even after deducting public safety program payments to cities by the state; and WHEREAS, in FY 2007-08 alone the state seized $895 million in city property is taxes statewide to fund the state budget after deducting public safety program payments and an additional $350 million in local redevelopment funds were seized in FY 2008-09; and WHEREAS, the most significant impact of taking local property taxes has been to reduce the quality of public safety services cities can provide since public safety comprises the largest part of any city's general fund budget; and WHEREAS, in 2004 the voters by an 84% vote margin adopted substantial constitutional protections for local revenues, but the legislature can still "borrow" local property taxes to fund the state budget; and WHEREAS, on May 5 the Department of Finance announced it had proposed to the Governor that the state "borrow" over $2 billion in local property taxes from cities, counties and special districts to balance the state budget, causing deeper cuts in local public safety and other vital services; and WHEREAS, in the past the Governor has called such "borrowing" proposals fiscally irresponsible because the state will find it virtually impossible to repay and it would only deepen the state's structural deficit, preventing the state from balancing its budget; and ® Resolution No. 23-09 Page Two WHEREAS, the Legislature is currentlyconsidering hundreds of bills, many of which would impose new costs on local governments that can neither be afforded nor sustained in this economic climate; and WHEREAS, state agencies are imposing, or considering, many regulations imposing unfunded mandates on local governments without regard to how local agencies will be able comply with these mandates while meeting their other responsibilities; and WHEREAS, the combined effects of the seizure of the City's property taxes, increasing unfunded state mandates, and the revenue losses due to the economic downturn have placed the city's budget under serious fiscal pressure; and WHEREAS, our city simply can not sustain the loss of any more property tax funds or to be saddled with any more state mandates as they will only deepen the financial challenge facing our city; and WHEREAS, a number of the City's financial commitments arise from contracts, including long term capital leases and debt obligations which support securities in the public capital markets, that the City must honor in full unless modified by mutual agreement of the parties. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Morro Bay has determined. that the City will experience a severe fiscal hardship if the recommendation of the Department of Finance to "borrow" $2 billion of local property taxes is supported by the Governor and the Legislature; and BE IT FURTHER RESOLVED, that the City Council strongly and unconditionally opposes the May 5 proposal of the Department of Finance and any other state government proposals to borrow or seize any additional local funds, including the property tax, redevelopment tax increment, and the city's share of the Prop. 42 transportation sales tax; and BE IT FURTHER RESOLVED, that the City Council strongly urges the state legislature and Governor to suspend the enactment of any new mandates on local governments until such time as the economy has recovered and urges the state to provide complete funding for all existing and any new mandates. BE IT FURTHER RESOLVED, that the City Clerk shall send copies of this resolution to the Governor, our State Senator(s), our State Assembly Member(s) and the League of California Cities. LI ® Resolution No. 23-09 Page Three PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the I Ith day of May 2009 on the following vote: AYES: Borchard, Grantham Smukler, Winholtz, Peters NOES: None ABSENT: None ATTEST: BRIDGETT AVER, City Clerk 11 ® RESOLUTION NO.22-09 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 11, 2009, 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 22, 2009 at 6:00 p.m. in the Veteran's Memorial Building, 209 Surf Street, Morro Bay, CA. BE IT FURTHER RESOLVED by the City Council the improvements to be maintained at the North Point Natural Area are specified in the Engineer's Report dated May 11, 2009 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 2009-2010. 11 RESOLUTION 22-09 PAGE 2 ® PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held this I Ph of May 2009 by the following roll call vote: AYES: Borchard, Grantham, Smukler, Winholtz, Peters NOES: None ABSENT: None (' ;me' JA/NICE PETERS; MAYOR ATTEST: BRIDGETV BAUER, CITY CLERK E 11 RESOLUTION NO.21-09 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 11, 2009, 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 toassure 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 XHL 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 22, 2009 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 11, 2009, 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 2009-2010. RESOLUTION 21-09 PAGE 2 PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held this I lb day of May 2009 by the following roll call vote: AYES: Borchard, Grantham, Smukler, Winholtz, Peters NOES: None ABSENT: None ATTEST: BRIDGEVT BAUER, CITY CLERK rj ® RESOLUTION NO.20-09 RESOLUTION ADOPTING THE BYLAWS FOR THE MORRO BAY TOURISM BUSINESS IMPROVEMENT DISTRICT (MBTBID) ADVISORY BOARD THECITYCOUNCIL City of Morro Bay, California WHEREAS, the California Streets and Highways Code Section 36500 et seq. authorizes cities to establish parking and business improvement areas for the purpose of promoting tourism within business districts in order to create jobs, attract new business, and enhance the business district; and WHEREAS, tourism is an important contributor to the economy of the City and the promotion of the City's tourist lodging establishments will serve an important public purpose; and WHEREAS, the owners of the tourist lodging establishments have requested that the City Council consider establishing such an improvement area; and WHEREAS, the California Streets and Highways Code Section 36530 requires the City Council to appoint an advisory board for such an improvement area, which shall ® make recommendations to the City Council on the expenditure of revenues derived from the levy of assessments and on the method and basis of levying the assessments. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, as follows: Section 1. The recitals set forth herein are true and correct. Section 2. The City Council, at the request of owners of tourist lodging establishments within the City, and pursuant to Section 36530 of the California Streets and Highways Code, does hereby establish the "Morro Bay Tourism Business Improvement District Advisory Board" (the `Board"). Section 3. The purpose of the Board shall be to consult with and advise the City Council on those matters dealing with the method and basis of levying assessments within the proposed Morro Bay Tourism Business Improvement District; expenditures of revenues derived from such assessments; and programs, services, improvements, and activities intended to promote tourism and local tourist lodging establishments within the District. Section 4. The City Council hereby adopts Bylaws for the Board, attached as Exhibit A, and incorporated herein. ® Section 5. This Resolution is effective upon its adoption. ® PASSED AND ADOPTED bZ the City Council of the City of Morro Bay at a regular meeting thereof held on the 27 day of April 2009 on the following vote: AYES: Borchard, Grantham, Smukler, Winholtz, Peters NOES: None ABSENT: None ATTEST: '1:1,41kolIj 40 j ® CITY OF MORRO BAY TOURISM BUSINESS IMPROVEMENT DISTRICT ADVISORY BOARD BYLAWS PURPOSE AND AUTHORITY The Morro Bay Tourism Business Improvement District (MBTBID) Advisory Board (`Board") advises the City Council on the administration and use of the MBTBID assessment funds. The Board recommends projects to the City of Morro Bay to promote tourism to directly benefit the City's lodging industry. APPOINTMENT The MBTBID Board shall be comprised of seven (7) voting members. Appointments and the filling of vacancies shall be made by the City Council. Committee members shall serve at the pleasure of the City Council. Because of the diversity among assessment district members represented by the Board including local, regional and national lodging industry interests, it is neither practical nor advisable to limit Board membership to City residents. Accordingly, membership on the MBTBID Board shall be exempt from residency requirements otherwise ® applicable to City Advisory bodies. In addition, a member of the City's Promotions Committee shall not be precluded from serving on the MBTBID. TERM OF OFFICE Members of the MBTBID Board shall serve, without compensation, for a period of four (4) years. Appointments shall be made in such a manner such that no more than three members' terms expire concurrently. Unanticipated vacancies shall be filled for the duration of the unexpired term only. If a vacancy is within the last 6 months of a term, it will be held over to the normal interview process. QUALIFICATIONS The MBTBID Board shall consist of four (4) members from the Morro Bay lodging industry, one (1) member representing the Morro Bay Chamber of Commerce and two (2) members from the community at large. The four members from the lodging industry shall consist of one member representing lodging rooms of less than 22 rooms, two members representing 50 or less rooms, and one member representing hotels with 51 or more rooms. The Chamber of Commerce representative shall be the Executive Director of the Morro Bay ® Chamber of Commerce or a member of the Executive Board. ® The "at large' members shall be residents and registered voters of the City during the term of appointment. Each member must be at least 18 years of age at the time of appointment and may not be an Elected Official, Officer, or Employee of the City of Morro Bay. (Council Policies and Procedures, Section 6.6.1) FUNCTIONS AND DUTIES The functions and duties of the MBTBID Board shall include, but not be limited to, the following: 1., Plan a comprehensive program to promote tourism to the City of Morro Bay and prepare an annual marketing program consistent with industry goals and objectives. 2. Develop advertising and promotional programs and projects to benefit the lodging industry in Morro Bay. 3. Present an annual assessment report to the City Council regarding the _ implemented promotional programs and projects. 4. Perform any other lawful tasks as directed by the Council. ABSENCE FROM MEETINGS ® Absence of a Board Member from three (3) consecutive meetings without formal consent of the Board as noted in its official minutes will constitute the voluntary resignation of the absent member effective the date of the third meeting. Upon a member being absent for 4 or more meetings in one calendar year, excused or unexcused, the Council shall, at a public meeting, review the appointment and consider appointing a replacement. ORGANIZATION At the first regular meeting in each year wherein newly appointed Members are seated, the Members shall elect a Chairperson and Vice -Chairperson who shall hold office for a period of one year. The Chairperson shall preside over meetings, appoint appropriate sub -committees, and direct the affairs of the Committee. In the absence of the Chairperson, the Vice -Chairperson shall perform duties of the office. If both the Chair and Vice -Chair are absent the remaining quorum shall appoint one member to preside at that meeting. The City of Morro Bay staff will maintain accurate minutes of the official activities of the Committee. PROCEDURE Regular meetings shall be held monthly on a regular schedule. The meetings shall be open to the public. The date, time, and location, along with the meeting agenda, shall be noticed in accordance with Government Code Sections 54970-54975. The Chair may close meetings to ® public comment provided that the action is consistent with the Brown Act. Agendas, reports, ® meetings, and any and all actions shall be governed by the requirements of the Brown Act, as amended. All advisory board meetings will be conducted in strict compliance with the City Council Policies and Procedures Manual. In all matters and things not otherwise provided for in the Bylaws or the Policies and Procedures of the City Council, proceedings shall be governed by "Robert's Rules of Order," revised edition. However, no ordinance, resolution, proceeding, or other action of the City Council pertaining to the Committee shall be invalidated or the legality thereof otherwise affected by the failure or omission to observe or follow "Robert's Rules of Order." Communication among the Advisory Board, its members, and the Council shall be in accordance with the City Council Policies and Procedures as currently adopted. QUORUM A majority of voting members shall constitute a quorum. CITY STAFF The City Manager or the designee of the City Manager shall be responsible for preparing agendas, reports, and minutes pertaining to Committee business and shall attend the Committee ® meetings. BYLAW AMENDMENTS All amendments to the Bylaws shall be approved by the City Council. El ® RESOLUTION NO.19-09 RESOLUTION TO AUTHORIZE GRANT APPLICATION (PRINCIPLE FORGIVENESS LOAN) TO THE STATE WATER RESOURCES QUALITY CONTROL BOARD CLEAN WATER STATE REVOLVING FUND FOR PHASE I CONSTRUCTION OF A LOW IMPACT DEVELOPMENT BOAT REPAIR YARD RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA THE CITY COUNCIL City of Morro Bay, California WHEREAS, in 2008 the City conceptually approved a plan for the north Embarcadero based on the new configuration of Embarcadero/Coleman Drive and the Harbor Walk project that included the boat repair facility; and WHEREAS, the City allocated some funding to start the planning and engineering process for a Low Impact Development Boat Repair Yard; however, sufficient funding for construction is not available in the City Harbor Fund budget; and ® NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, that the Harbor Director is authorized to apply for a grant (principle forgiveness loan) from the State Water Resources Quality Control Board Clean Water State Revolving Fund for Phase I Construction of a Low Impact Development Boat Repair Yard. Said Harbor Director of the City of Morro Bay is hereby authorized and directed to sign and file such application with said State Water Quality Control Board. PASSED AND ADOPTED bZ the City Council of the City of Morro Bay at a regular meeting thereof held on the 27 day of April 2009 on the following vote: AYES: NOES: ABSENT: ATTEST: Borchard, Grantham, Smukler, Winholtz, Peters None None ® BRIDGEIT BAUER, City Clerk RESOLUTION NO. 18-09 ® RESOLUTION FOR PAYING AND REPORTING THE VALUE OF EMPLOYER PAID MEMBER CONTRIBUTIONS FOR THE MORRO BAY FIREFIGHTERS THE CITY COUNCIL CITY OF MORRO BAY, CALIFORNIA WHEREAS, the City Council has the authority to implement Government Code Section 20636(c) (4) pursuant to Section 20691; and WHEREAS, the City of Morro Bay has a written labor policy or agreement which specifically provides for the normal member contributions to be paid by the employer, and reported as additional compensation; and WHEREAS, one of the steps in the procedures to implement Section 20691 is the adoption by the City Morro Bay of a Resolution to commence paying and reporting the value of said Employer Paid Member Contributions (EPMC); and WHEREAS, the City Council has identified the following conditions for the purpose of its election to pay EPMC; ® • This benefit shall apply to all employees of the Morro Bay Firefighters Association ■ This benefit shall consist of paying the normal contributions as EPMC and reporting the same percent of compensation earnable as additional compensation. • The effective date of the Resolution shall be July 1, 2009. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Morro Bay elects to pay and report the value of EPMC, as set forth above. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 27's of April, 2009. AYES: Borchard, Grantham, Smukler, Winholtz, Peters NOES: None ABSENT: None ATTEST: BRIDGETIJ BAUER, RESOLUTION NO. 17-09 RESOLUTION FOR PAYING AND REPORTING THE VALUE OF EMPLOYER PAID MEMBER CONTRIBUTIONS FOR SEIU MISCELLANEOUS EMPLOYEES THE CITY COUNCIL CITY OF MORRO BAY, CALIFORNIA WHEREAS, the City Council has the authority to implement Government Code Section 20636(c) (4) pursuant to Section 20691; and WHEREAS, the City of Morro Bay has a written labor policy or agreement which specifically provides for the normal member contributions to be paid by the employer, and reported as additional compensation; and WHEREAS, one of the steps in the procedures to implement Section 20691 is the adoption by the City of Morro Bay of a Resolution to commence paying and reporting the value of said Employer Paid Member Contributions (EPMC); and WHEREAS, the City Council has identified the following conditions for the purpose of its election to pay EPMC; ■ This benefit shall apply to all employees of the Service Employees' International Union Local 620 (SEIIJ) ■ This benefit shall consist of paying the normal contributions as EPMC and reporting the same percent of compensation eamable as additional compensation. ■ The effective date of the Resolution shall be July 1, 2009. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Morro Bay elects to pay and report the value of EPMC, as set forth above. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the .27's of April 2009. AYES: Borchard, Grantham, Smukler, Winholtz, Peters NOES: None ABSENT: None ATTEST: ® BRIDGET AUER, CITY CLERK ® RESOLUTION NO.16-09 RESOLUTION OF THE CTTYCOUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA 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 a property Landscaping and Lighting Maintenance Assessment District encompassing and coterminous with the proposed subdivision to provide for the maintenance of a natural area, parking lot, landscaping, decomposed granite and asphalt walkways, and coastal access stairway and other common area improvements to be held by or dedicated to the City of Morro Bay as required by the Morro Bay Municipal Code 16.16.030; and WHEREAS, these conditions are more specifically identified in the Precise Plan (condition F1-F7); and WHEREAS, the Owners of the real property within the proposed district consented to the formation of the district pursuant to the Landscaping and Lighting Act of 1972 (Streets and highways Code Section 22608.2 et seq.), and are the only owners of property to be subject to assessments within the district; and WHEREAS, the Owners of real property within the proposed district offered in fee and in perpetuity, Lot 11 of Tract 2110, and the City has agreed to said Offer of Dedication, provided that the cost of maintenance of thereof is 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 XIH, C & D). NOW THEREFORE, BE IT RESOLVED by the City Council of the City ofMorro Bay, California, that 1. 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 ALandscaping and Lighting Act of 1972". (Streets and Highways Code Sections 22500 et seq.) El ® Resolution No. 16-09 Page 2 2. The improvements to be subject to assessment for maintenance by such District shall include those enumerated in the conditions of project approval and in Streets and High ways Code Section 22525 which are installed by the developer as a condition of approval of Tract 2110 or which are hereafter installed by developer; pursuant to the Final Improvement Plans for the North Point Project as approved by the City. 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 11, 2009 City Council meeting. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 130' day of April 2009 by the following vote: AYES: Borchard, Grantham, Smukler, Winholtz, Peters NOES: None ® ABSENT: None J CE PETERSA4ayor ATTEST: 1 �. _ �— ' 1.1 1D �; EXHIBIT 'A' CITY Of MORRO BAY NORTH POINT ,NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT ASSESSMENT DIAGRAM NORTH POINT NATURAL LEGEND ii. '- 2O -_ - i. = LOT NUM= -SR 1.10 AC_ Yam= � Qc 00 = COUNTY ASSESSORS FARCHL NUMU F. T =_ 082 YJ 22 4 No ARIA -lb 0 El 1 o. c Q L 7.1 6. ---TRACT 2110 15 1 •. g s 21 AC= s 0 RESOLUTION NO. 15-09 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA 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 ofthe 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 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 XIII C & D); and that NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay a. The City Council of the City of Morro Bay hereby declares its intent to initiate the proceedings to levy and collect assessments pursuant to the "Landscaping and Lighting Act of 1972". (Streets and Highways Code Sections 22500 et seq.) Resolution No. 15-09 Page 2 b. 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. c. 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. d. An Engineer's Report will be prepared for consideration at the May 11, 2009 City Council meeting. e. 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 on the 13'h day of April 2009 by the following vote: AYES: Borchard, Grantham, Smukler, Winholtz, Peters NOES: None ABSENT: None ATTEST: `_ I.- BRiDGET1�BAUE11, City Clerk 11 TPOB PA?CEL 1 Vost northerly corner o; Lot 122 o Tract 1996 6W464h, 1J . �V Q 0 o c .. fV L' = 400, A ® RESOLUTION NO.14-09 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA Approval of Assignment of Lease Agreement for Lease Site 122-123/122W- 123W and Extension 122W-123W from Harbor Hut Inc., George Leage to THMT Inc., Heather and Troy Leage and Conditional Approval of Amendment #1 to the Lease Agreement for Lease Site 122-123/122W-123W (Harbor Hut, 1205 Embarcadero) THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City is the lessor of certain property on the Morro Bay waterfront described as Lease Site 122-123/122W-123W and Extension 122W-123W, located at 1205 Embarcadero; and, WHEREAS, George Leage, dba Harbor Hut Inc., is the lessee of said property; and WHEREAS, Mr. Leage, Harbor Hut Inc. has requested the City approval assignment of the lease agreement for said property to THMT Inc. Heather and Troy Leage. The lease agreement requires City Council approval of any assignment of the ® lease agreement and also states that the City "shall not unreasonably nor arbitrarily withhold its approval to the assignment or transfer of this lease"; and, WHEREAS, the lessor has completed the Lease Assignment Application form and has paid the associated fee and the proposed lessors have provided a credit report indicating a satisfactory level of fmancial capability for operating the site and have placed the rent for the remainder of this fiscal year into the assignment of lease escrow account; and, WHEREAS, the City and the proposed tenant, THMT, Inc. have agreed to an amendment to the lease agreement to add'five years on the existing lease agreement so that the new termination date shall be June 30, 2023 and requires that no later than December 31, 2009 Tenant shall complete refurbishment, remodeling and repairs on the buildings on the premises valued at a minimum of $60,000. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, that assignment of the lease agreement for Lease Site 122- 123/122W-123W from Harbor Hut Inc., George Leage to THMT Inc., Heather and Troy Leage and Amendment #1 to the lease agreement for Lease Site 122-123/122W-123W and Extension 122W-123W is hereby approved and that the Mayor is hereby authorized to execute the Assignment and Assumption document and Amendment #1. E ® BE IT FURTHER RESOLVED, approval of both the Assignment of the lease agreement and Amendment 91 to the lease agreement for Lease Site 122-123/122W- 123W and Extension 122W-123W is conditional upon the City receiving final executed Assignment and Assumption Documents approved by the City Attorney and all rental money owed on the Lease Site no later than July 11, 2009. Failure to provide an acceptable and fully executed Assignment and Assumption document and payment of all rent owed for Lease Site 122-123/122W-123W and Extension 122W-123W by July 11, 2009 shall nullify this Resolution and the approval of said assignment and amendment to said lease agreement. PASSED AND ADOPTED b� the City Council of the City of Morro Bay at a regular meeting thereof held on the 13 day of April 2009 on the following vote: AYES: Borchard, Grantham, Smukler, Winholtz, Peters NOES: None ABSENT: None J CE PETS , Mayor ATTEST: ® AMENDMENT #1 TO THE LEASE AGREEMENT FOR LEASE SITE 122-123/122W-123W AND EXTENSION 122W-123W This amendment is made and entered into as of this _ day of , 2009 by and between the City of Morro Bay, a municipal corporation of the State of California, (hereinafter "City") and Troy and Heather Leage, THMT Inc., a California Corporation (hereinafter "Tenant") to amend that certain ground lease agreement for Lease Sites 122-123/122W-123W and extension of 122W-123W between City and Tenant dated April 27, 1998 Whereas, City and George Leage entered into a twenty-year lease agreement on April 27 1998 for Lease Sites 122-123/122W-123W and extension of 122W-123W; and, Whereas, George Leage has requested assignment of the lease agreement to Troy and Heather Leage, currently sublessees on the site; and, Whereas, the City has conditionally approved said assignment and should conditions of said assignment be met, desires to extend the term of the existing lease in consideration of funds expended on improvements/repairs to the existing floating docks and refurbishment /repairs to the building on the site that will be completed no later than December 31, 2009. Now therefore, City and Tenant hereby mutually agree to amend said lease agreement as follows: ® Section 1.01 TERM: Section 1.10 Term, shall be amended to add five years on the existing lease so that the new termination date shall be June 30, 2023 and the following sentence shall be added: No later than December 31, 2009 Tenant shall complete refurbishment, remodeling and repairs on the buildings on the premises valued at a minimum of $60,000 and Tenant shall submit copies of invoices paid by Tenant to verify said expenses, or this lease agreement shall be in default and City shall have all remedies including lease termination allowed under Section 11 of the lease agreement. All other terms and conditions of the lease shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto hereby execute this Amendment. CITY OF MORRO BAY TENANT - TROY AND HEA 0 Heather Leage, Secreta E APPROVED AS TO FORM: -- Rob Schultz, City Att rney ATTEST: El LJ I & City Clerk ® RESOLUTION NO.13-09 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA Approval of Amendment #1 to the Lease Agreement for Lease Site 129W- 131W (Morro Bay Fish Company Inc., 1231 Embarcadero) THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City is the lessor of certain property on the Morro Bay waterfront described as Lease Site 129W-131 W, located at 1231 Embarcadero; and, WHEREAS, Morro Bay Fish Company is the lessee of said property; and WHEREAS, Morro Bay Fish Company has recently reorganized to become a California Corporation, Brett Cunningham President. WHEREAS, the City and Morro Bay Fish Company have agreed to modify the existing lease agreement to extend the term of the lease for 2 years to make it possible for the tenant to obtain a loan from the California Fisheries Fund to purchase equipment for the business, to allow for the installation of said equipment, and to streamline operational ® and reporting requirement of the lease agreement NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, that Amendment #1 to the Lease Agreement for Lease Site 129W-131 W is hereby approved and that the Mayor is hereby authorized to execute said amendment. PASSED AND ADOPTED b� the City Council of the City of Morro Bay at a regular meeting thereof held on the 13 day of April, 2009 on the following vote: AYES: Borchard, Grantham, Smukler, Winholtz, Peters NOES: None ABSENT: None J CE PETERS, k4ayor ATTEST: t BRIDGEMBAUER, ® AMENDMENT #1 TO THE LEASE AGREEMENT FOR LEASE SITE 129W-131 W This lease amendment is made and entered into as of this _ day of April, 2009 by and between the City of Morro Bay, a Municipal Corporation of the State of California (hereinafter "City") and Morro Bay Fish Company, Inc., a California Corporation, Brett Cunningham, President, (hereinafter "Tenant") to amend that certain lease for Lease Site 129W-131 W dated September 22, 2008 (hereinafter "Lease"). Whereas, Tenant desires to obtain a 5 year loan from the California Fisheries Fund (hereinafter "CFF") to install a new freezer facility and hoist on the premises which will become a part of the real property leased to Tenant during this lease, and to purchase an additional company truck; and, Whereas CFF requires that Tenant obtain a lease for Lease Sites 129W-131 W for at least 5 years; and, Whereas City and Tenant desire to clarify the operations and maintenance responsibilities of the ice making machine on the premises; and. Now, therefore, City and Tenant hereby agree to amend the Lease as follows: Section 3. OPERATION OF ICE MAKING MACHINE ON LEASE SITE 129W, is deleted in its entirety and replaced as follows:. ® Section 3. OPERATION OF ICE MAKING MACHINE ON LEASE SITE 129W Tenant shall operate and maintain the ice machine for the City including blow ice to customers, collect fees, pay all utilities related to the machine and pay for all routine maintenance or repairs. Tenant may set reasonable limits on the amount of ice that may be purchased but may not discriminate against any party in providing ice services except for commercially reasonable reasons. Tenant agrees that it shall establish an ice machine maintenance account to hold revenues from ice sales in excess of expenses from maintenance and operation of the ice machine to provide for future major maintenance requirements on the machine. Tenant shall not charge more than 10% over the coast wide average cost of ice sales to the commercial fishing industry. Section 4. TERM, shall be amended so that a new termination date of the lease is set at September 30, 2014. Section 10. ADDITIONAL ALTERATIONS AND REPAIRS The following language shall be added to Section 10: Tenant agrees and City approves, subject to any and all other permits and approvals that may be required including building permits, that Tenant shall install a new freezer facility to replace the existing refrigerated container listed in Exhibit B and a second hoist on the site no later than January 1, 2010. Said freezer facility and hoist installations shall be considered improvements to the real property on the site and subject to Section 11 hereof. City hereby turns over to Tenant's control and ownership the 40-foot refrigerated container listed on Exhibit B and Tenant ® shall lawfully remove and re -use or demolish said container. . All other terms and conditions of the Lease shall remain in full force and effect. 0 E E IN WITNESS WHEREOF, the parties hereto hereby execute this Amendment. CITY OF MORRO BAY V APPROVED AS TO FORM: 44sg? Rob Schultz, City tt rney ATTEST: TENANT - MORRO BAY FISH COMPANY INC. Brett Cunningham, President Sate of California Secretary of State I, DEBRA BOWEN, Secretary of State of the State of California, hereby certify: ® That the attached transcript of page(s) has been compared with the record on file in this office, of which it purports to be a copy, and that it is full, true and correct. IN WITNESS WHEREOF, I execute this certificate and affix the Great Seal of the State of California this day of FED-- g / (n s.- DEBRA BOWEN Secretary of State SedState Farm CE-107 (REV 112007) OSPM 99734 ENDQRSEL, _ FILED I" the ofrIce of ;ire Se_retary of State ARTICLES OF INCORPORATION of the State et Cairomia OF FEB 0 4 ?ppg Morro Bay Fish Company Inc. Article I The name of this corporation is Morro Bay Fish Company Inc. Article I1 The purpose of the corporation is to engage in any lawful act or activity for which a corporation may be organized under the General Corporation Law of California other than the banking business, the trust company business or the practice of a profession permitted to be incorporated by the California Corporations Code. Article III The name and address of this corporation's initial agent for service of process in the State of California is: Brett Cunningham 1231 Embarcadero Morro Bay, CA 93442 ® Article IV The corporation is authorized to issue only one class of shares of stock; and the total number of shares of stock which this corporation is authorized to issue is 10,000. Article V The liability of the directors of the Corporation for monetary damages shall be eliminated to the fullest extent permissible under California law. The Corporation is authorized to indemnify the "Agents" (as defined in Section 317 of the California Corporations Code) of the Corporation to the fullest extent permissible under California law. Any repeal or amendment of this Article shall not adversely affect any right of or protection afforded any agent of the Corporation in effect at the time of the repeal or amendment. MyCorporation Business Services; Inc. Los An.geles County LDA N LDA-281 ex.,02 b/2010 Morro Bay Fish Company Inc. Notice of Annual Meeting of Shareholders to be Held on MAY 1,. 20 09 To the Shareholders of Morro Bay Fish Company Inc.: Notice is hereby given that the Annual Meeting of Shareholders of Morro Bay Fish Company Inc., a California Corporation, will be held on MAY 1, 2009— at 9:00 a.m, at the following address: 1231 Embarcadero Morro Bay, CA 93442 The Board of Directors fixed the close of business on APRIL 1, 20 2_, as the record date for the determination of shareholders entitled to vote at the Annual Meeting and at any adjournment thereof. By Order of the Board of Directors Torfmlyn Cunningham, Secretary Morro Bay, CA ® KA C ,%- 1 20 G a Incorporator's Certificate of ® Morro Bay Fish Company Inc. I, Meghan Record, the sole Incorporator of Morro Bay Fish Company Inc., a(n) California corporation formed in accordance with the Taws of that state, sign this statement to set forth action taken as follows: FIRST: I state that the Certificate of Incorporation of Morro Bay Fish Company Inc., a true copy of which is annexed to this statement, was filed with the Department of State of California on 02/04/2009. SECOND: The by-laws annexed to this statement have been adopted by me as the bylaws of Morro Bay Fish Company Inc. THIRD: The following persons have been nominated and elected by me as directors of Morro Bay Fish Company Inc. to hold office until the first annual meeting of shareholders and until their successors are elected and qualify: Brett Cunningham Tomilyn Cunningham FOURTH: I hereby assign all my rights, responsibilities, and duties as incorporator of Morro Bay Fish Company Inc. to the above -named Directors. After execution of this Certificate, the Incorporator named herein shall have no rights, responsibilities, or duties in regards to this corporation. The foregoing is established by my signature on this instrument at 21215 Burbank Blvd Ste. 400, Woodland Hills, CA 91367, on 02/04/2009. Is 14V6 Meghan Record, orporator 0 0 C Morro Bay Fish Company Inc. Minutes of the First Meeting of The Board of Directors The First Meeting of the Board of Directors of Morro Bay Fish Company Inc. was held on ,20 at the principal office of Morro Bay Fish Company Inc.. Upon motion duly made and seconded, Brett Cunningham, was chosen as Chairman of the meeting and Tomilyn Cunningham as Secretary of the meeting. The Secretary called the roll and the following Directors were present: Brett Cunningham Tomilyn Cunningham being all of the Directors of the Corporation. The Secretary then presented an original Waiver of Notice of the time and place of the meeting signed by each of the Directors. Upon motion duly made and seconded, it was unanimously: RESOLVED, that these waivers be entered in the Minute Book immediately preceding the minutes of this meeting. The Secretary then presented a copy of the Articles of Incorporation, the original of which was filed with the Secretary of State on 2/4/2009. After consideration, and upon motion duly made and seconded, it was unanimously: RESOLVED, that the Directors of Morro Bay Fish Company Inc. ratify and approve the Articles of Incorporation and its filing with the Secretary of State. The Secretary then presented the Incorporator's Certificate and Bylaws adopted by the Incorporator (Meghan Record) on 02/04/2009. After consideration, and upon motion duly made and seconded, it was unanimously: RESOLVED, that the Incorporator's Certificate adopted and executed by the Incorporator on 2/4/2009 and all action shown to have been taken or authorized by him/her are approved and ratified in all respects; and it is further RESOLVED, that the Bylaws of this Corporation presented to the meeting be and they are hereby adopted as the Bylaws of the Corporation and that a copy thereof shall be permanently inserted in the Minute Book of the Corporation. The Chairman stated that the next order of business was the election of the officers as specified in the Bylaws. Nominations having been made, the following persons were duly elected to the offices set beside their respective names, to serve until the next Annual Meeting of the Board of Directors of the Corporation, and until their respective successors shall be duly elected and shall qualify in their stead: Brett Cunningham Brett Cunningham Tomilyn Cunningham Tomilyn Cunningham Tomilyn Cunningham Chairman of the Board President Vice President Secretary Treasurer Form 2553 (Rev. DerrrDc 2007) Election by a Small Business Corporation (Under section 1362 of the Internal Revenue Code) *See Parts II and III on page 3 and the separate instructions. The corporation can tax this forth to the IRS (see separate instructions). OMB No. 1545-0146 'Vote. This election to be an S corporation can be accepted only if all the tests are met under Who May Elect on page 1 of the instructions; all shareholders have signed the consent statement an officer has signed below, and the exact name and address of the corporation and other reauired form information are provided. Name (see instructions) A Employer identification number Morro Bay Fish Company Inc 26-4328860 Type Number, street, and room or suite no. (If a P.O. box, see instructions.) B Date rtxorporated or Print 1231 Embarcadero 02/04/2009 City or town, state, and ZIP code C State of incorporation Morro Bay. Ca 93442 Ca D Check the applicable box(es) if the corporation, after applying for the EIN shown in A above, changed its 11 name or address E Election is to be effective for tax year beginning (month, day, year) (see instructions) ...... ...... ► 0 3 / 01 / 2 00 9 Caution. A corporation (entity) making the election for its first tax year in existence will usually enter the beginning date of a short tax year that begins on a date other than January 1. F Selected tax year. (1)® (2) ❑ (3)U (4)❑ Calendar year Fiscal year ending (month and day) Is, 52-53-week year ending with reference to the month of December 52-53-week year ending with reference to the month of ► If box (2) or (4) is checked, complete Part II G If more than 100 shareholders are fisted for item J (see page 2). check this box if treating members of a family as one shareholder results in no more than 100 shareholders (see test 2 under Who May Elect in the instructions) ► El Name and title of officer or legal representative who the IRS may call for more information I Telephone number of office or legal representative nett Cunningham 1 (805) 469-6211 If this S corporation election is being filed with Form 1120S, I declare that I had reasonable cause for not filing Form 2553 ' timely, and if this election is made by an entity eligible to elect to be treated as a corporation, I declare that I also had reasonable cause for not filing an entity classification election timely. See below for my explanation of the reasons the election or elections were not made on time (see instructions). Sign Here Under penalties of perjury. I declare that I have esanwwd this election, bx*jc mg amorr panybV stlredales and statements. and to the best of my knowledge and beb it is true, correct. and complete. of officer n President Tithe Date For Paperwork Reduction Act Notice, see separate instructions. Form 2553 (Rev. 12-2007) DXA Corporalion: Morro Bay Fish Company Inc x 2553 (Rev. 12-2007) M- M Election Information /continued) to numtler. 26-4328860 K sharetnitlers' consent statement. L Under penalties of perozy. we declare that we consent stock wined or to the election a the above�named lion to be an S corporation under section 1362(a and that we percentage of ownership M N address of each shareholder have examined this consent statement, urkdirg (see insbuctias) Social seamty Shareholders .V4knd or former shareholder mqu'ved to bes 7r knowledge ledge an and statements, and b , a knowledge and belie( it's true. correct. a number or employer tax year ends consent b the election. (See the complete. We understand our consent is bbr and corn Number a identification number (month and mseuCli for cokmn q not b as may not be withdrawn the has made shares a Date(s) (see ustnxJions) day) dafterdate below.) rafid election. (Sion and date below.) percentage acquired of ownership Sfgnabae Date :ett Cunningham 100% 03/01/09 556-49-9324 12/31 1015 Old Morro Road :ascadero, Ca 93422 >milyn Cunningham 569-81-0866 12/31 )015 Old Morro Road :ascadero, Ca 93422 i Form 2553 (Rev. 12-2007) 11 ® RESOLUTION NO. 12-09 RESOLUTION AUTHORIZING THE FEDERAL FUNDING UNDER FTA SECTION 5311 (49 U.S.C. SECTION 5311) WITH CALIFORNIA DEPARTMENT OF TRANSPORTATION TO PURCHASE ONE (1) WHEELCHAIR ACCESSIBLE DIAL -A -RIDE VEHICLE AND ONE (1) WHEELCHAIR ACCESSIBLE TROLLEY THE CITY COUNCIL City of Morro Bay, California WHEREAS, the U. S. Department of Transportation is authorized to make grants to states through the Federal Transit Administration to support capital and operating assistance projects for non -urbanized public transportation systems under Section 5311 of the Federal Transit Act; and WHEREAS, the California Department of Transportation (Department) has been designated by the Governor of the State of California to administer Section 5311 grants for public transportation projects; and WHEREAS, the City of Morro Bay desires to apply for said financial assistance to permit the purchase of capital vehicles and equipment for the rural transit service in the City of Morro Bay; and WHEREAS, the City of Morro Bay has, to the maximum extent feasible, coordinated with other transportation providers and users in the region (including social ® service agencies). NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, that the City does hereby authorize the Public Services Director to file and execute applications on behalf of the City with the Department to aid in the financing of capital assistance projects pursuant to Section 5311 of the Federal Transit Act of 1964, as amended. BE IT FURTHER RESOLVED that the Public Services Director is authorized to do the following:- execute and file all assurances or any other document required by the Department; provide additional information as the Department may require in connection with the application for the Section 5311 projects; and to submit and approve request for reimbursement of funds from the Department for the Section 5311 project. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 13th day of April, 2009 on the following vote: AYES: Borchard, Grantham, NOES: None ABSENT: None BRIDGEA BAUEF, City Clerk Smukler, Winholtz, Peters RESOLUTION NO. 11-09 �A RESOLUTION OF THE CITY COUNCIL OF MORRO BAY SUPPORTING THE EFFORTS OF MORRO BAY BEAUTIFUL ADOPT -A -TREE PROGRAM THE CITY COUNCIL City of Morro Bay, California 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. WHEREAS, Morro Bay Beautiful is a community volunteer organization that is willing and able to spearhead and organize the efforts of the community to help maintain the City's Urban ® Forest. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, that the City hereby supports the efforts of Morro Bay Beautiful's Adopt -a -Tree program. PASSED AND ADOPTED by the City Council of the City of Morro Bay, California, at a regular meeting held on the 9`s day of March 2009, by the following vote: AYES: Borchard, Grantham, Smukler, Winholtz, Peters NOES: None ABSENT: None ABSTAIN: None ATTEST: Y ejj4r &4-� 40 BRIDGE BAUER, City Clerk 11 / r / / a e H 7< \ 1♦ W \ . � .fLi n.14➢L(gv a / w �h t f32 o tl `�� CO IZ e / I 1 ti,f96l�..WJLIXW y I x- x Ni ffis e§ a od 88 lif ✓ 1VsvN/N 1 F — ® �-- --- /- -- -- -----7 ,' 6 XJ079 /' � e aq � e g�z J 1 I rz 1 y N 0 RESOLUTION NO. 09-09 AUTHORIZATION FOR THE CITY OF MORRO BAY TO ENTER INTO A DERELICT VESSEL ABATEMENT GRANT WITH THE MORRO BAY NATIONAL ESTUARY PROGRAM THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay (City) applied for a grant from the Morro Bay National Estuary Program (MBNEP) under their Implementation Grant program; and, WHEREAS, MBMEP awarded a grant of $75,000 under the MBNEP Implementation Grant program to the City for abatement and or removal of large derelict/abandoned vessels; and, 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 MBNEP Grant Contract #35-09 for the abatement and or removal of large derelict/abandoned vessels in the amount of $75,000. BE IT FURTHER RESOLVED, that the Harbor Director is hereby authorized 40 to execute and administer the grant contract. PASSED AND ADOPTED bj the City Council of the City of Morro Bay at a regular meeting held thereof on the 9 day of March 2009, by the following vote: AYES: Borchard, Grantham, Smukler, Winholtz, Peters NOES: None ABSENT: None WN/BAIJElt, City Clerk 11 ® RESOLUTION NO.08-09 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA DECLARING ITS INTENTION TO ESTABLISH THE MORRO BAY TOURISM BUSINESS IMPROVEMENT DISTRICT (MBTBID), DECLARING ITS INTENTION TO LEVY AN ASSESSMENT ON LODGING BUSINESSES WITHIN 'SUCH DISTRICT, AND FIXING THE TIME AND PLACE OF A PUBLIC MEETING AND A PUBLIC HEARING THEREON AND GIVING NOTICE THEREOF THECITYCOUNCIL City of Morro Bay, California WHEREAS, the California Streets and Highways Code Section 36500 et seq. authorizes cities to establish parking and business improvement areas for the purpose of promoting tourism within business districts in order to create.jobs, attract new business, and enhance the business district; and WHEREAS, tourism is an important contributor to the economy of the City and the promotion of the City's tourist lodging establishments will serve an important public purpose; and WHEREAS, the owners of the tourist lodging establishments have requested that the City Council consider establishing such an improvement area; and ® WHEREAS, the California Streets and Highways Code Section 36530 requires the City Council to appoint an advisory board for such an improvement area which shall make a recommendation to the City Council on the expenditure of revenues derived from the levy of assessments and on the method and basis of levying the assessments. NOW, THEREFORE, the City Council of the City of Morro Bay does hereby resolve, determine and find as follows: Section 1. The recitals set forth herein are true and correct. Section 2. The City Council declares its intention to establish the Morro Bay Tourism Business Improvement District ("MBTBID") and to levy and collect annual assessments against lodging businesses within the MBTBID boundaries pursuant to the Parking and Business Improvement Area Law of 1989, Streets and Highways Code Section 36500 et seq. (the "Law"), commencing on June 1, 2009. Section 3. The boundaries of the MBTBID shall be the boundaries of the City of Morro Bay. Section 4. The name of the business improvement area shall be the "Morro Bay Tourism Business Improvement District." r] ® Section 5. The City Council hereby declares that the types of improvements and activities to be funded by the annual assessments on lodging businesses within the MBTBID are tourism promotions and marketing programs to promote Morro Bay as a tourism destination, and projects, programs, and activities that benefit lodging businesses located and operating within the boundaries of the district. The proposed improvements and activities shall be targeted at increasing transient stays. Section 6. The City Council intends to levy an annual assessment on all lodging businesses to pay for the improvements and activities within the MBTBID commencing June 1, 2009. Assessments will be collected in monthly installments or such other installments as determined by the City Council. Commencing June 1, 2009, the proposed assessment is to be levied on all lodging businesses, which include hotels, motels, and bed and breakfasts, within the MBTBID boundaries based upon 3% of the rent charged by the operator per occupied room per night for all transient occupancies. Commencing on June 1, 2010, and from year to year thereafter, the proposed assessment is to be levied on all lodging businesses, which include hotels, motels, and bed and breakfasts, within the MBTBID boundaries based upon 2% of the rent charged by the operator per occupied room per night for all transient occupancies. Vacation rentals and RV Parks shall be exempt from the levy of assessment. Federal government employees on government business will be exempt from the levy of assessment. Extended stays, defined as more than 30 consecutive calendar days, shall be exempt from the levy of assessment. New lodging businesses within the boundaries of the MBTBID shall not be exempt from the levy of assessment. Assessments levied pursuant to the MBTBID shall not be included in gross room rental revenue for the purpose of determining the amount of the transient occupancy tax. ® Section 7. The City Council hereby sets March 23, 2009 as the date for a public meeting to allow for public testimony on the establishment of the MBTBID and the levy of assessments and April 13, 2009 as the date for a public hearing on the establishment of the MBTBID and the levy of assessments pursuant to Government Code Section 54954.6. Both the public meeting and the public hearing will be held at 6:00 p.m., or as soon thereafter as practicable, in the City of Morro Bay City Council Chambers, 209 Surf Street, Morro Bay, California. Section 8. At the public meeting and public hearing, the testimony of all interested persons for or against the establishment of the MBTBID, the extent of the MBTBID, or the furnishing of specified types of improvements or activities will be heard. A protest may be made orally or in writing by any interested person. Any protest pertaining to the regularity or sufficiency of the proceedings shall be in writing and clearly state the irregularity or defect to which objection is made. To count in the determination of a majority protest against the MBTBID, a protest must be in writing. Written protests must be received by the City Clerk, City of Morro Bay before the close of the public hearing scheduled herein and may be delivered or mailed to the City Clerk, City of Morro Bay, 595 Harbor Street, Morro Bay, California. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. .® Each written protest shall contain a written description of the business in which the person signing the protest is interested sufficient to identify the business. If the person signing the protest is not shown on the official records of the City of Morro Bay as the owner of the business, then the protest shall contain or be accompanied by written evidence that the person is the owner of the business. A written protest which does not comply with this section shall not be counted in determining a majority protest. Section 9. If, at the conclusion of the public hearing_ , written protests are received from the owners of businesses in the proposed MBTBID which will pay fifty percent (50%) or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protest to less than that 50 percent (i.e., there is a majority protest), no further proceedings to create the MBTBID, as contained in this resolution of intention, shall be taken for a period of one year from the date of the finding of a majority protest by the City Council. If the majority protest is against only the furnishing of a specified type or types of improvement or activity within the MBTBID, those types of improvements or activities shall be eliminated. Section 10. Further information regarding the proposed MBTBID may be obtained from the City Clerk, City of Morro Bay, 595 Harbor Street, Morro Bay, California. Section 11. The City Clerk is instructed to provide notice to the public hearing as required by Government Code by publishing joint notice of both the public meeting and the 40 public hearing, as set forth in Section 7, beginning at least 45 days prior to the public hearing, by placing a display advertisement of this Resolution of at least one -eighth page in a newspaper of general circulation for three weeks pursuant to Government Code section 6063 and by mailing of a complete copy of the Resolution of Intention by first-class mail to each business owner in the area within seven days after the City Council's adoption of the Resolution of Intention. Section 12. This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify to the vote adopting this resolution. PASSED AND ADOPTED by the City Council of the City of Morro Bay, State of California, held on this 23rd day of February 2009 by the following vote: AYES: Borchard, Smukler, Peters NOES: Grantham, Winholtz ABSENT: None ABSTAIN: None ATTEST: Bridgett Bbier, City Clerk RESOLUTION NO. 07-09 ® 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 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 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, 2008 through June 30, 2011 as attached and made a part of this resolution. BE IT FURTHER RESOLVED that the 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 9 s day of February 2009 by the following vote: AYES: Borchard, Grantham, Smukler, Winholtz, Peters NOES: None ABSENT: None t ATTEST: BRIDGE11 BAUER, City Clerk RESOLUTION NO. 06-09 RESOLUTION OF THE CITY COUNCIL ® OF THE CITY OF MORRO BAY, CALIFORNIA ENDORSING THE GUIDING PRINCIPLES OF THE SAN LUIS OBISPO COUNTYWIDE 10-YEAR PLAN TO END HOMELESSNESS THE CITY COUNCIL City of Morro Bay, California WHEREAS, in January 2008, cities, agencies and groups throughout San Luis Obispo began a journey aimed at improving the county's approach to end homelessness, and WHEREAS, in San Luis Obispo County there is an emphasis to shift from "managing" homelessness to working to "end" it with a broad -based planning group coming together to reevaluate current efforts within the County, consider best practices and lessons teamed around the nations and develop a Plan for a new and more effective response aimed at ending homelessness in ten years; and WHEREAS, the Plan entitled "A Path to a Home" was presented to the Morro Bay City Council which contained the Guiding Principles; and WHEREAS, the following Guiding Principles are endorsed by the Morro Bay City Council: (1) Community Partners Working Together, (2) Sharing Responsibility through Education and Outreach to All, (3) Continuous Community Building, (4) Fostering of Innovation ® and Excellence, (5) Flexible and Individualized Attention, (6) Focus on Housing, (7) Comprehensive Solutions with a Systemwide Perspective and (8) Strategic Thinking and Efficiently Targeted Interventions. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that the above Guiding Principles of the 10-Year Action Plan to End Homelessness are endorsed and the Plan will be used to guide future decisions. BE IT FURTHER RESOLVED that Councilmember Rick Grantham has been appointed to the Governing Body of the San Luis Obispo Countywide 10-Year Plan to End Homelessness. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 9's day of February 2009 by the following vote: AYES: NOES: ABSENT ATTEST: Borchard, Grantham, Smukler, Winholtz, Peters None None RESOLUTION NO.05-09 ® RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA REAFFIRMING INVESTMENT OF MONIES IN THE LOCAL AGENCY INVESTMENT FUND (LAIN) AND DESIGNATING TRANSACTION OFFICERS THE CITY COUNCIL City of Morro Bay, California WHEREAS, Resolution No. 36-06 dated July 10, 2006, authorized the City of Morro Bay to continue investing funds with the State of California's Local Agency Investment Fund (L.AIF); and WHEREAS, the officers, then authorized to order deposit and withdrawal of monies and effect changes to the account, have changed. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, that the City will continue investing with LAIF and designates the following officers to deposit and withdraw funds and effect changes to the account: Janice Peters ® Andrea Lueker Susan Slayton Joyce Bunting Laurie Goforth Cris Brazzi Mayor City Manager Administrative Services Director/Treasurer Accountant Lead Account Tech Account Clerk III PASSED AND ADOPTED by the Cityh Council of the City of Morro Bay at a regular meeting thereof held on the 9 day of February 2009, on the following vote: AYES: Borchard, Grantham, Smukler, Winholtz, Peters NOES: None ABSENT: None ATTEST: �awt�l/ BRIDGEBRIDGEU BAUER, City Clerk RESOLUTION NO. 04-09 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, AUTHORIZING THE MID -YEAR 2008/09 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 May 27, 2008 by Resolution No. 25-08; 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, that the operating budgets of the City of Morro Bay are amended by additional revenues and appropriations as show on the ® attached schedule. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 90' day of February 2009, by the following vote: AYES: Borchard, Grantham, Smukler, Winholtz, Peters NOES: None ABSENT: None ATTEST: RESOLUTION NO. 03-09 ® RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA RESCINDING RESOLUTION NO. 58-06 THAT CONDITIONALLY GRANTED CONSENT TO THE COUNTY OF SAN LUIS OBISPO TO FORM THE SAN LUIS OBISPO COUNTY TOURISM BUSINESS IMPROVEMENT DISTRICT (SLOCTBW) THE CITY COUNCIL City of Morro Bay, California WHEREAS, the County of San Luis Obispo is beginning the process to establish a San Luis Obispo County Tourism Business Improvement District (SLOCTBID) pursuant to the Parking and Business Improvement Area Law of 1989, Streets and Highways Code Section 36500 et seq., to promote tourism and the lodging businesses in San Luis Obispo County; and WHEREAS, the San Luis Obispo County Board of Supervisors has requested consent of the cities of Arroyo Grande, Atascadero, Grover Beach, Morro Bay, Paso Robles, Pismo Beach, and San Luis Obispo to form the SLOCTBID within the limits of each City; and ® WHEREAS, the parameters of the San Luis Obispo County Tourism Business Improvement District has changed since it was originally presented to the City of Morro Bay; and WHEREAS, the City of Morro Bay is considering a local business improvement district to promote tourism and lodging businesses in Morro Bay. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that Resolution No. 58-06 that conditionally granted consent to the County of San Luis Obispo to form the San Luis Obispo County Tourism Business Improvement District is rescinded. PASSED AND ADOPTED by the City Council of the City of Morro Bay. at a special meeting thereof held on the 28th day of January 2009 on the following vote: AYES: Borchard, Grantham, Peters NOES: Smukler, Winholtz ABSENT: None ATTEST: 40 BRIDGET AVER, City Clerk Ll 0 11 RESOLUTION NO. 02-09 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA DESIGNATING AND AUTHORIZING TRANSACTION OFFICERS TO INVEST PUBLIC FUNDS THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay has cash in its possession that exceeds the amount needed for day-to-day transactions; and WHEREAS, the City of Morro Bay has an obligation to its citizens to effectively and safely manage that money while optimizing its earning potential; and WHEREAS, it is necessary to designate, via Resolution, the transaction officers who have the authority to invest the City's funds. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, that the City staff members listed below are designated as transaction officers who are authorized to open and close investment accounts within the scope of the City's Investment Policy: Janice Peters Mayor Andrea Lueker City Manager Susan Slayton Administrative Services Director Joyce Bunting Accountant Laurie Goforth Lead Account Technician Cris Brazzi Account Clerk III Confidential PASSED AND ADOPTED, by the City Council of the City of Morro Bay, at a regular meeting thereof held on the 12's day of January 2009, on the following vote: AYES: Borchard, Grantham, Smuklei NOES: None ABSENT: None ATTEST: BRrDGETXPAUER, City Clerk RESOLUTION NO. 01-09 ® RESOLUTION OF THE CITY COUNCIL w OF THE CITY OF MORRO BAY, CALIFORNIA 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; and WHEREAS, per California Government Code Section 53607, the legislative body may delegate investment authority and responsibility to the Treasurer, and/or designated staff member, for a period of one year, subject to annual review and monthly review of transactions initiated by the designee. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that the Investment Policy, attached hereto, is adopted, and that the City Treasurer, and/or designated staff member, is hereby authorized to carry out this policy on behalf of the City Council. PASSED AND ADOPTED bX the City Council of the City of Morro Bay, at a regular meeting thereof held on the 12 day of January 2009, on the following vote: AYES: NOES: ABSENT Borchard, Grantham, Smukler, Winholtz, Peters None None ATTEST: BRIDGEBRIDGET.1 BAUER, City Clerk