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HomeMy WebLinkAboutResolution 01-13 to 61-13® RESOLUTIONS 2013 NO. TITLE ADOPTED 55-13 ADOPTING THE iNIEDIORANDUM OF UNDERSTANDING WITH THE MORRO BAY FIRE FIGHTERS ASSOCIATION AND RELATED COMPENSATION 11-12-13 56-13 ADOPTING THE AGREEMENT WITH THE MORRO BAY CONFIDENTIAL EMPLOYEES AND RELATED COMPENSATION 11-12-13 57-13 CONFIRiMING THE EXPIRATION DATE OF TENTATIVE TRACT MAP 2859 AND AVAILABILITY OF WATER AND SEWER (RELATING TO 2783 CORAL AVENUE IN MORRO BAY, CALIFORNIA) 11-12-13 58-13 APPROVING THE APPLICATION FOR GRANT FUNDS FOR THE CALIFORNIA COASTAL COMMISSION LCP PLANNING GRANT APPLICATION 12-10-13 59-13 ESTABLISHING THE CITY'S INTENT TO COMPLY WITH THE AFFORDABLE CARE ACT EMPLOYER SHARED RESPONSIBILITY (ACA) 12-10-13 60-13 APPROVING CHANGES TO THE HARBOR DEPARTMENT RULES AND REGULATIONS TO ALLOW COMMERCIAL FISHERMEN OWNING TWO QUALIFIED COMMERCIAL FISHING VESSELS TO KEEP EITHER VESSEL IN THEIR ASSIGNED SLIP 12-10-13 61-13 AMENDING THE CITY OF MORRO BAY ADVISORY BOARDS HANDBOOK AND BY-LAWS TO ALLOW HARBOR ADVISORY BOARD -DESIGNATED MORRO BAY COMMERCIAL FISHERMAN'S ORGANIZATION SEAT TO HAVE PRIMARY AND ALTERNATE MEMBERS 12-10-13 1 �J ® RESOLUTIONS 2013 NO. TITLE ADOPTED 47-13 CONFIRMING CITY OF MORRO BAY'S PARTICIPATION IN A COMMUNITY CHOICE AGGREGATION (CCA) FEASIBILITY STUDY 09-10-13 48-13 DESIGNATING S399,000 IN PARKING IN -LIEU FUNDS FOR REVISIONS TO THE PARKING IN -LIEU MAP AND IMPROVEMENTS TO THE CITY -OWNED FRONT STREET AND TRIANGLE PARKING LOT ADJACENT TO THE EMBARCADERO 10-08-13 49-13 APPROVING A FORTY-NINE YEAR LEASE AGREEMENT FOR LEASE SITE 82-85/82W-85W BETWEEN THE CITY OF MORRO BAY AND 725 EMBARCADERO LLC, LOCATED AT 725 EMBARCADERO 10-08-13 50-13 DETERMINING THAT ISSUANCE OF AN ABC PERiMIT FOR AN OFF -SALE BEER AND WINE CONVENIENCE STORE LOCATED AT 845 EMBARCADERO, SUITE D WOULD SERVE AS A PUBLIC CONVENIENCE OR NECESSITY 10-22-13 51-13 RELATING TO THE CLASSIFICATION, COMPENSATION AND TERMS OF EMPLOYMENT OF MISCELLANEOUS AND SAFETY EMPLOYEES REPRESENTED BY THE SERVICE EMPLOYEES INTERNATIONAL UNION, LOCAL 620 (SEIU) 10-22-13 52-13 APPROVING THE REAL ESTATE AGREEMENT FOR THE SALE OF CITY -OWNED VACANT LOT PROPERTY ON THE CORNER OF CORAL AVENUE AND SAN JACINTO STREET WITH A STREET ADDRESS OF 2783 CORAL AVENUE IN MORRO BAY, CALIFORNIA 10-22-13 53-13 AMENDING SECTION 2.2 OF THE CITY COUNCIL POLICIES AND PROCEDURES MANUAL REGARDING RETIREMENT, MEDICAL, DENTAL, VISION, AND LIFE INSURANCE UNSPENT DOLLARS 11-12-13 54-13 APPROVING ADJUSTMENTS TO LEASE SITE MAPS, 0 LEASE SITES 93W-95W and 96W 11-12-13 ® RESOLUTIONS 2013 TITLE AD 37-13 ADOPTING THE 2013/14 FISCAL YEAR OPERATING BUDGETS 06-25-13 38-13 APPROVAL OF A NINETEEN YEAR LEASE AGREEMENT FOR MOORING AREA AI-3 BETWEEN THE CITY OF MORRO BAY AND THE MORRO BAY YACHT CLUB 07-09-13 39-13 APPROVING THE APPLICATION FOR GRANT FUNDS FOR THE LOCAL COASTAL PROGRAM SEA LEVEL RISE ADAPTATION GRANT FOR UPDATES TO THE GENERAL PLAN AND LOCAL COASTAL PLAN UNDER THE AUTHORITY OF THE OCEAN PROTECTION ACT 07-09-13 40-13 ESTABLISHING THE ANNUAL PROPOSITION 4 APPROPRIATIONS LIMIT FOR THE FISCAL YEAR 2013/14 07-09-13 ® 41-13 . ADOPTING 2013/14 MASTER FEE SCHEDULE 07-09-13 42-13 APPROVING ADJUSTNIENTS TO LEASE SITE MAPS, LEASE SITES 93-95 and 9311'-95W 07-09-13 43-13 SUPPORTING THE CALIFORNIA COASTAL COMMISSION STAFF RECOMMENDATION OF APPROVAL WITH CONDITIONS FOR THE MORRO STRAND STATE PARK CAMPGROUND PROJECT 08-13-13 44-13 APPROVING THE AGREEMENT REGARDING DEED OF TRUST, GROUND LESSOR'S ACKNOWLEDGEMENT AND CONSENT FOR THE LEASE AGREEMENT LEASE SITE 65-66/65W66W WITH ABBA INLANI (571 EMBARCADERO) 08-13-13 45-13 APPROVING AN APPLICATION TO THE STATE OF CALIFORNIA'S COASTAL CONSERVANCY FOR GRANT FUNDS THROUGH ITS CLIMATE READY PROGRAM 08-27-13 46-13 APPROVAL OF AMENDMENT #2 TO THE LEASE AGREEMENT FOR LEASE SITE 65-66/65W-66W ® BETWEEN THE CITY OF MORRO BAY AND ABBA IMANI AT 571 EMBARCADERO 08-27-13 ® RESOLUTIONS 2013 NO. TITLE ADOPTED 28-13 CONTINUING THE PROGRAM AND LEVYING THE ASSESSMENTS FOR THE 2013/14 FISCAL YEAR FOR THE MORRO BAY TOURISM BUSINESS IMPROVEMENT DISTRICT (MBTBID) 05-14-13 29-13 AUTHORIZING EXECUTION OF THE PROGRAM SUPPLEMENT AGREEMENT FOR FEDERAL AID PROJECT NO. 05-5391R MORRO CREEK MULTI -USE TRAIL AND BRIDGE PROJECT 05-14-13 30-13 SUPPORTING INCREASED FUNDING TO THE CALIFORNIA COASTAL COMMISSION (CCC) TO SUPPORT ENHANCED LOCAL COASTAL PLAN PLANNING AND UDPATES 05-28-13 31-13 SUPPORTING THE EFFORTS IN CELEBRATING THE CITY OF MORRO BAY'S 50TH ANNIVERSARY OF ® INCORPORATION 05-28-13 32-13 APPROVING THE TRACT MAP FOR AN A 15-LOT RESIDENTIAL SUBDIVISION KNOWN AS TRACT 3031 AND ACCEPTING THE ASSOCIATED PUBLIC UTILITY EASEMENT DEDICATION 05-28-13 33-13 DIRECTING THE LEVY OF THE ANNUAL ASSESSDIENT FOR THE NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT 06-25-13 34-13 DIRECTING THE LEVY OF THE ANNUAL ASSESSMENT FOR THE CLOISTERS LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT 06-25-13 35-13 AMENDING RESOLUTION 43-10 FOR A CALIFORNIA DEPARTMENT OF PUBLIC HEALTH GRANT FOR MODIFICATIONS TO THE DESALINATION PLANT 06-11-13 36-13 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 06-25-13 ® RESOLUTIONS 2013 NO. TITLE ADOPTED 21-13 APPROVING THE AGREEMENT REGARDING DEED OF TRUST, GROUND LESSOR'S ACKNOWLEDGEMENT AND CONSENT FOR THE LEASE AGREEMENT LEASE SITE 78-81/78W-81W WITH VAN BEURDEN INVESTMENTS (701 & 715 EMBARCADERO) 04-09-13 22-13 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.) 04-09-13 23-13 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.) 04-09-13 24-13 DECLARING THE INTENTION TO CONTINUE THE PROGRAM AND ASSESSMENTS FOR THE 2013/14 FISCAL YEAR FOR THE MORRO BAY TOURISM BUSINESS IMPROVEMENT DISTRICT (MBTBID) 04-23-14 25-13 ADOPTING FINDINGS TO UPHOLD THE APPEAL AND OVERTURN THE PLANNING COMMISSION'S APPROVAL OF COASTAL DEVELOPMENT PERMIT #CPO-390 MORRO STRAND CAMPGROUND IMPROVEMENTS PROJECT 04-23-13 26-13 DECLARING THE CITY'S INTENTION TO LEVY THE ANNUAL ASSESSMENT FOR THE MAINTENANCE OF THE NORTH POINT NATURAL AREA 05-14-13 27-13 DECLARING THE CITY'S INTENTION TO LEVY THE ANNUAL ASSESSMENT FOR THE MAINTENANCE OF THE CLOISTERS PARK AND OPEN SPACE 05-14-13 n U ® RESOLUTIONS 2013 NO. TITLE ADOPTED 12-13 APPROVING THE 2012 ANNUAL WATER PROGRESS REPORT AND ADOPTING A WATER ALLOCATION PROGRAM FOR 2013 02-13-13 13-13 AMENDING THE CITY OF MORRO BAY ADVISORY BOARDS HANDBOOK AND BY-LAWS 02-13-13 14-13 RESCINDING RESOLUTION 52-12 AND RESTORING RESIDENTIAL IMPACT FEES TO THEIR PRE OCTOBER 23, 2012 LEVEL 02-13-13 15-13 AUTHORIZING THE 2012/13 MID -YEAR AMENDMENTS TO THE CITY'S OPERATING AND CAPITAL IMPROVEMENT BUDGETS 03-12-13 16-13 RESCINDING RESOLUTION 45-11 AND RESTORING ® COMMERCIAL IMPACT FEES TO THEIR PRE JULY 1, 2011 LEVEL 02-26-13 17-13 APPROVAL OF A FORTY SEVEN YEAR LEASE AGREEMENT FOR LEASE SITE 93-95/93W-95W BETWEEN THE CITY OF MORRO BAY AND THE HELD FAMILY TRUST AND THE SMITH W AND HANNAH W HELD FAMILY TRUST, LOCATED AT 901-915 EMBARCADERO 03-12-13 18-13 ADOPTING A RESOLUTION OF INTENTION TO ABANDON A PORTION OF TORO LANE E00-103 (Frye) 03-12-13 19-13 AMENDING COUNCIL POLICIES AND PROCEDURES MANUAL REGARDING MEETING GUIDELINTS & PROCEDURES 03-12-13 20-13 SUPPORTING THE DEVELOPMENT OF A PUBLIC BIKE PARK WITHIN THE CITY LIMITS 03-12-13 r1 RESOLUTIONS 2013 NO. TITLE ADOPTED 01-13 ADOPTING THE CITY OF iNIORRO BAY INVESTMENT POLICY AND DELEGATING AUTHORITY TO THE CITY TREASURER TO INVEST IDLE FUNDS 01-8-13 02-13 AUTHORIZING THE EXAMINATION OF SALES OR TRANSACTIONS AND USE TAX RECORDS 01-8-13 03-13 ADOPTING THE VANTAGECARE RHS EMPLOYER INVESTMENT PROGRAM (EIP) FOR PRE -FUNDING OTHER POSTEMPLOYMENT BENEFITS (OPEB) 01-8-13 04-13 AUTHORIZING A CONTRACT AMENDMENT WITH ICMA-RC TO ALLOW EMPLOYEE LOANS ON 457 DEFERRED COMPENSATION ACCOUNTS 01-8-13 05-13 APPROVAL OF ANIENDiIENT #3 TO THE LEASE AGREEMENT FOR LEASE SITE 50-51/50W-51W, ®LOCATED AT 451 EMBARCADERO 01-8-13 s 06-13 APPROVING THE AMENDED JOINT POWERS AGREEMENT BETWEEN THE COUNTY AND THE INCORPORATED CITIES WITHIN THE COUNTY FOR \ THE SAN LUIS OBISPO REGIONAL TRANSIT AUTHORITY 01-8-13 07-13 SUPPORTING CALIFORNIA COASTAL COMMISSION STAFF RECOMMENDATION FOR DENIAL OF APPLICATION NUMBER A-3-MRB-11-001 01-10-13 08-13 VOID 09-13 AUTHORIZING SUBMISSION OF APPLICATION TO THE RURAL TRANSIT FUND GRANT PROGRAM 01-22-13 10-13 DIRECTING A TIMELINE FOR COMPLETION OF CAPITAL PROJECTS APPROVED BY THE CITY COUNCIL AND RESCINDING RESOLUTION NO. 45-12 01-22-13 11-13 ACCEPTING S100,000 GRANT FROM THE STATE OF CALIFORNIA CITIZENS OPTION FOR PUBLIC SAFETY (COPS) PROGRAM 2-13/13 RESOLUTION NO. 61-13 ® RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA AMENDING THE CITY OF MORRO BAY ADVISORY BOARDS HANDBOOK AND BY-LAWS TO ALLOW HARBOR ADVISORY BOARD -DESIGNATED MORRO BAY COMMERCIAL FISHERMAN'S ORGANIZATION SEAT TO HAVE PRIMARY AND ALTERNATE MEMBERS THE CITY COUNCIL CITY OF MORRO BAY, CAILFORNIA WHEREAS, the Advisory Boards Handbook and By -Laws for the City of Morro Bay is a composite of the City Council actions; policies. references. and information regarding the City Advisory Boards: and WHEREAS, the current By -Laws for the Harbor Advisory Board has one seat designated to be filled by a representative of the Morro Bay Commercial Fisherman's Organization: and WHEREAS, the Morro Bay Commercial Fisherman's Organization participation in and input to the Harbor Advisory Board is considered vital; and ® WHEREAS, due to the nature of their business, commercial fisherman have historically had difficulty in meeting theattendance requirements of the City's Advisory Board policy; and WHEREAS, the City Council desires to amend the Advisory Boards Handbook and Bv- Laws for the City of Morro Bay Harbor Advisory Board as set forth in Exhibit A. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Morro Bay does hereby amend the By -Laws of the Harbor Advisory Board to reflect those that are set forth in Exhibit A and dated December 10. 2013 Advisory Boards Handbook. PASSED AND ADOPTED by the City Council. City of Morro Bay at a regular meeting thereof held on the 10th day of December. 2013 by the following vote: AYES: Irons. C. Johnson. N. Johnson, Irons. Smukler NOES: None ABSENT: None ABSTAIN: None J e L. Irons_. k la_vor ATTEST: U Jar6e/Boucher, City Clerk EXHIBIT A CITY OF MORRO BAY ADVISORY BOARDS HANDBOOK BY-LAWS Date: , December 10, 201' Approved by Resolution-1461-13 CITY OF MORRO BAY HARBOR ADVISORY BOARD BY-LAWS PURPOSE AND AUTHORITY The Harbor Advisory Board is established to review, advise and recommend to the City Council on items pertaining to the City Harbor. These include, but are not limited to: A. Use, control; promotion and operation of vessels and watercraft within the harbor; docks, piers; slips; utilities and publicly -owned facilities as a part of the City's Harbor, and water commerce, navigation; or fishery in the Harbor. B. Review and recommend rules and regulations pertaining to any of the matters listed in subsection A of this section. C. Review and recommend rates, tolls. fees. rents; charges or other payments to be ® made for use or operation of the Harbor. E D. The Board shall make reports and recommendations to the various city boards, commissions or the City Council on matters relating to activities within the harbor. When requested to do so, will review items referred by other city boards; commissions or the City Council. Resulting reports and recommendations will be included in presentations before the City Council. APPOINTMENT The Harbor Advisory Board shall be comprised of seven (7) voting members. four of which must be qualified electors of the City of Morro Bay. Appointments and the filling of vacancies shall be made by the City Council. Committee members shall serve at the pleasure of the City Council. The City Council will attempt to select members from the following categories: Morro Bay Commercial Fishermen's Association Waterfront Leaseholders Marine Oriented Business Recreational Boating Representative of South Bay/Los Osos Two Members at Large I RE675ED: °F'.r�.c-�r-r:'"`" �DFCFAB6R 10 2013 PAGE E However. the City Council and Harbor Advisory Board recognize the importance of the Morro Bay Commercial Fisherman's Organization (MBCFO) seat. and acknowledge that it is often difficult for commercial fishermen serving on the HAB to meet the attendance requirements due to the nature of their business. As such. up to two (2) Alternate MBCFO members to the Primary member may be appointed by the City Council in the same manner and fashion as regular appointments in order to stand-in for the Primary member in the event of the Primary members absence. TERMS OF OFFICE Members shall serve; without compensation, for a period of four (4) years commencing February I". in the year specified when members are appointed. Appointments shall be made in such a manner so as no more than three members' terms expire concurrently. Unanticipated vacancies shall be filled for the duration of the unexpired term only. QUALIFICATIONS Four of the seven members must be a resident and registered voter of the City during the term of ® appointment, unless excepted by State Law or Council approved special requirements; 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) ABSENCE FROM MEETINGS Absence of a Board Member from three (3) consecutive meetings or four (4) meetings in any consecutive 12-month period will constitute the voluntary resignation of the absent member and the position will be declared vacant. 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, duties of the office shall be performed by the Vice -Chairperson. 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. I RED7sEU: F"r�oq.!. DECENRFR l0 2013 PAGF3 C 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 comments; 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. Where used in the City Council Policies and Procedure Manual, the term "City Council' shall mean the `Board" or "Commission". the term "Mayor` shall mean "Chairperson and the term "Councilmember" shall mean `Board" or "Commission. In all matters and things not otherwise provided for in the by-laws 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 between the Advisory Group, its members and the Council shall be in accordance with the City Council Policies and Procedures as currently adopted. C� 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. BY -LACY AMENDMENTS All amendments to the By -Laws shall be approved by the City Council. Rmsv). FfBRHR DECEVB£fR 10 2013 PAGE 4 RESOLUTION NO. 60-13 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA APPROVING CHANGES TO THE HARBOR DEPARTMENT RULES AND REGULATIONS TO ALLOW COMMERCIAL FISHERMEN OWNING TWO QUALIFIED COMMERCIAL FISHING VESSELS TO KEEP EITHER VESSEL IN THEIR ASSIGNED SLIP THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay supports commercial fishing and fishermen. and commercial fishine activities and facilities: and WHEREAS. in recent years some commercial fishermen have come to own and operate two commercial fishing vessels in order to remain viably involved in the fisheries: and WHEREAS. current Harbor Department Rules and Regulations make no allowance for commercial fishermen ownine two commercial fishing vessels to keep is commercial of their two vessels in their assigned slip at their option and at the regular commercial fishing slip ratess.- and WHEREAS. the Morro Bav Harbor Advisory Board by unanimous vote at their February 7. 2013 meeting and again at their October 3. 2013 meeting recommended approval of commercial fishermen owning two qualified commercial fishing vessels to be able to use their assigned slip for either vessel. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay_ California, that the following be added to the Harbor Department Rules and Regulations Section 2 regarding use of City slips by commercial fishermen owning two commercial fishing vessels: A commercial fisherman with a qualified commercial fishing vessel, as defined. occupying a City slip may. - at the fisherman's discretion. occupy said slip with a second qualified commercial fishing vessel owned by the fisherman in place of the first vessel provided that said second vessel is of an appropriate sire for said slip, and that both vessels remain qualified commercial fishing vessels as defined. This allowance will in no way be used by said fisherman for the purposes of transfer of the slip to a second owner or owners of either vessel in order to bypass the commercial slip waiting list by the second owner or owners. J ® PASSED AND ADOPTED by the Citv Council of the City of Morro Bay at a regular meeting thereof held on the 10th day of December, 2013 on the following vote: AYES: Irons. C. Johnson_. N. Johnson. Leage_. Smukler NOES: None ABSENT: None J& L. Irons. Mavo ATTEST: JarMe Boucher, City Clerk l ® RESOLUTION NO. 59 -13 RESOLUTION OF THE COUNCIL OF THE CITY OF MORRO BAY ESTABLISHINNG THE CITY'S INTENT TO COMPLY WITH THE AFFORDABLE CARE ACT EMPLOYER SHARED RESPONSIBILITY (ACA) WHEREAS, the Affordable Care Act (ACA) became law in March 2010. and implementation is phased in over eight years with significant changes; which include the Employer Shared Responsibility provisions (Pay or Play)_ becoming effective January 1. 2015: and WHEREAS, the City of Morro Bay wishes to establish policy guidelines for a fiscally responsible method of compliance under the ACA. on the basis of minimizing the City's exposure to the ACA tar penalties: and WHEREAS, the City of Morro Bay is committed to offer health insurance that provides Minimum Essential Coverage. Minimum Value and meets the ACA definition of Affordable Coverage. NOW, THEREFORE, BE IT RESOLVED. that the City Council of the City of Morro Bay hereby approves and adopts policy guidelines in compliance with the ACA as follows: ® Section 1. Measurement Period. For determining eligibility for health care coverage. the City adopts the Measurement Period (Look -Back) of twelve (12) month. Section 2. Administrative Period. For enrolling eligible employees in the City's health care plan. the City hereby adopts the Administrative Period of sixty (60) days. Section 3. Stability Period. For all employees who are determined to be eligible for health care coverage per the Measurement Period. the City hereby adopts the Stability Period of twelve (12) months. Section d. Safe Harbor Provision. Temporary employees of the City; who qualify as full- time equivalents under the definition of the ACA, shall be offered health insurance that is affordable. as defined by the ACA; therefore. the City hereby adopts the "Rate of Pay_ Safe Harbor' as the method to ensure that health coverage is Affordable. Section 5. New Employees. For new employees, the beginning month of the Measurement Period will be the I" day of the month following employment, and extend for 12 months. The Administrative Period will follow for 60 days. and then the Stability_ Period will follow for the next 12 months. Section 6. Compliance. The City will comply with all benefit administration, record keeping and reporting requirements of the ACA. The beginning dates of the Measure. Administrative and Stability periods will be based the start of the requirement for large isemployers. ® Section 7. The Administrative Services Director, or designee. is hereby directed to calculate the amount of any appropriations necessary to finance the costs associated with the requirements of maintaining compliance with the ACA and shall include such appropriations in future budgets. beginning with the 2014/1 5 Fiscal Year. PASSED AND ADOPTED. by the City Council of the City of Morro Bay, at a regular meeting thereof held on the 10"' day of December 2013. by the following vote: AYES: Irons, C. Johnson, N. Johnson, Leage. Smukler NOES: None ABSENT: None jowu '� 440W'--'� J�IE L. IRONS, Mayor ATTEST: (/ J fIE BOUCHER. City Clerk url RESOLUTION NO: 58-13 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NIORRO BAY, CALIFORN A APPROVING THE APPLICATION FOR GRANT FUNDS FOR THE CALIFORNIA COASTAL CONIMISSION LCP PLANNING GRANT APPLICATION THE CITY COUNCIL City of Morro Bay, California WHEREAS, the Budget Act of 20L3 provides an appropriation of S1 million for Coastal Commission grants in FY 0-14 to local governments to support Local Coastal Program (LCP) planning; and WHEREAS, the California Coastal Commission. under the authority of the California Coastal Act, may provide financial assistance to support coastal planning and has approved a competitive grant program to provide such financial assistance for LCP planning: and WHEREAS. the goal of the grant program is to develop new or updated LCPs in conformance with the California Coastal Act and to reflect current circumstances and new scientific information_. including new understandings and concern for the effects. of climate change_: and y ® WHEREAS, grant proposals submitted under this grant program must complete land use plan and/or zoning work to either achieve submittal for certification of a Local Coastal Program (LCP) or an Area of Deferred Certification (ADC) or of an LCP Amendment to significantly update a certified LCP or LCP segments, including with special emphasis on effects of climate change and sea -level rise; and WHEREAS. the City of Morro Bay. has an effectively certified LCP: and WHEREAS. the City of Morro Bay, desires to pursue a project that would result in the completion and submittal for certification by the California Coastal Commission of an Amendment to update the LCP in whole: and WHEREAS. the City of Morro Bay commits to and agrees to fully support a planning effort intended to update a certified LCP pursuant to the provisions of the California Coastal Act.' with full public participation and coordination with the Coastal Commission staff. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Morro Bay, hereby: 1. Directs Citv of Morro Bav staff to submit the grant application package attached hereto as Attachment 1 to the California Coastal Commission to provide financial and planning ® assistance. under authority of the California Coastal Act, in the amount of 5230,408 to fund the project more particularly described in the grant application package. 2. Authorizes the City Manager of the City of Morro Bay or their designee, to execute, in ® the name of the Citv of Morro Bay. all necessary applications. contracts and agreements and amendments thereto to implement and carry out the grant application package attached hereto and any project approved through approval of the grant application. PASSED AND ADOPTED by the ivlorro Bay City Council at a regular meeting thereof held on this 10th day of December. 2013 on the following vote: AYES: Irons. C. Johnson_. N. Johnson_. Leage_. Smukler NOES: None ABSENT: None ABSTAIN: None ATTEST: JAMIE BOUCHER. City Clerk CJ J YIIE L. IRONS. Mayor RESOLUTION NO. 57-13 RESOLUTION OF THE CITY COUNCIL ® OF THE CITY OF MORRO BAY, CALIFORNIA CONFIRMING THE EXPIRATION DATE OF TENTATIVE TRACT MAP 2859 AND AVAILABILITY OF WATER AND SEWER (RELATING TO 2783 CORAL AVENUE IN MORRO BAY, CALIFORNIA) THE CITY COUNCIL City of Morro Bay, California WHEREAS. the City obtained ownership of the vacant lot real property located at South East Corner (SEC) Coral/San Jacinto Street, Lot 124, Tract 1996 with a street address of 2783 Coral Avenue. Morro Bay, California in September 1996 (the "property,"); and WHEREAS. said property was dedicated to the City as a possible site for a fire substation. Subsequently, the City has determined that the property, at SEC Coral Avenue and San Jacinto Street. Lot 124, Tract 1996 is not suited for a fire substation and better locations exist for a fire substation; and WHEREAS. the City designated the real properties at the SEC CoraUSan Jacinto Street. Lot 124. Tract 1996 with a street address of 2783 Coral Avenue, Morro Bay, California for sale at the Open Session Council Meeting on July 11, 2005 and held a public hearing on July 25, 2005, and after receiving no protests passed and adopted Resolution 30-05 by a unanimous vote; and ® WHEREAS, pursuant to Government Code section 37421. and Resolution No. 30-05. the City notified its citizens of its intention to sell City -owned properties located at the SEC Coral/San Jacinto Street, Lot 124, Tract 1996 with a street address of 2783 Coral Avenue, Morro Bay. California; and WHEREAS. by Resolution 52-13 in Open Session Council Meeting on October 22. 2013, City approved a Real Estate Agreement with Broc Assets, Inc.. a California Corporation (Buyer') for purchase of the property by Buyer for S935,000.00 (the Purchase Agreement'). and WHEREAS, paragraph 8(e) of the purchase agreement, as a condition precedent to the Buyer's obligation to close, requires the City to confirm in an Open Session Meeting prior to the close of escrow that Tract Map 2859 has been extended until November 13. 2016, and that potable water and sewer services for each of the six lots are and shall be available during the life of the tract map. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Morro Bay does hereby confirm that Tentative Tract Map 2859 for the property was approved by the City Council on November 13, 2007, and was originally set to expire November 1.3, 2009. SB 1185 (Government Code Section 66432.21(a)) extended the Tract ivlap until November 1'), 2010. AB 33 (Government Code Section 66452.22 extended the Tract Map until November 13, 2012, AB 208 (Government Code Section 66452.23) extended the Tract Map until November 13. 2014, Is 2016. AB 116 (Government Code Section 66452.24 extended the Tract Map until November 13. 2016. Barring an act of god, catastrophe, or severe water shortage, potable water and services for each of the six lots of the property are available during the life of the Tract Map. III PASSED AND ADOPTED by the City Council. City of Morro Bay at a regular meeting thereof held on the 12th day of November 201.). by the following vote: AYES: Irons. C. Johnson_. N. Johnson, Leage, Smukler NOES: None ABSENT: None J L. IRONS_. Via_ or ATTEST: JA,VIIE BOUCHER. City Clerk RESOLUTION NO. 56-13 ® RESOLUTION OF THE CITY OF MORRO BAY ADOPTING THE AGREEMENT WITH THE MORRO BAY CONFIDENTIAL EMPLOYEES AND RELATED COMPENSATION THE CITY COUNCIL Cite of Morro Bay, California WHEREAS, representatives of the City of Morro Bay (CITY) and representatives of the Confidential Group met and discussed the terms and conditions of employment. through the Meet and Confer process; and WHEREAS. the meetings between the Confidential Group and the CITY have resulted in a mutual agreement and understanding: and WHEREAS. the employees represented by the Confidential Group accept all of the terms and conditions as set forth in the Agreement attached and made a part of this Resolution herewith; and WHEREAS, the CITY now desires to provide said salaries. benefits and conditions to said Confidential Group of the CITY. NOW, THEREFORE, BE IT RESOLVED that the Citv Council of the City of Morro Bay does hereby adopt this Resolution adopting an Agreement on the compensation and working ® conditions for the Confidential Group for the period July 1. 2013 through June 30, 2014, and authorizes the City Manager to execute all necessary documents to implement said changes. PASSED AND ADOPTED by the Citv Council of the Citv of Morro Bav at a meeting thereof held this 12`" day of November. 2013 by the following vote: AYES: Irons. C. Johnson, N. Johnson. Lease. Smukler NOES: None ABSENT: None JA IE L. IRONS. Mav ATTEST: qoot6 JAMW BOUCHER. City Clerk AGREEMENT BETWEEN THE CONFIDENTIAL EMPLOYEES F.1011 THE CITY OF MORRO BAY JULY 19 20123 - JUNE 309 20134 AGREEMENT BETWEEN THE CONFIDENTIAL EMPLOYEES AND THE CITY OF MORRO BAY July 1, 201,13 — June 30, 20134 ARTICLEI- PURPOSE 1.1 WHEREAS, the City of Morro Bay is a municipal corporation existing under the laws of the State of California as a general law city; and 1.2 WHEREAS, the City of Morro Bay is limited insofar as funds are concerned because of a fixed tax rate; and in structure because it is a public entity rather than a profit making business; and 1.3 WHEREAS, Confidential Group and the City of Morro Bay recognize that the mission and the purpose of the City is to provide for high -quality and economical municipal services and facilities to the residents of the City of Morro Bay. 1.4 THEREFORE, this AGREEMENT (hereinafter referred to as "AGREEMENT') is entered into as of July 1, 201.21 between the City of Morro Bay, (hereinafter referred to as "CITY.") and the Confidential Group. 1.5 It is the intent and purpose of this AGREEMENT to assure sound and mutually beneficial working and economic relations and conditions between the parties hereto; to provide for an orderly and peaceable method and manner of resolving any differences which may arise and to negotiate any misunderstanding which could arise and to set forth herein the basic and full agreement between the parties concerning the pay, wages, hours of employment, and other terns and conditions of employment. ARTICLE 2 - MANAGEMENT 2.1 In order to ensure that the CITY shall continue to carry out its municipal functions, programs, and responsibilities to the public imposed by law, and to maintain efficient public service for the citizens of Morro Bay, the CITY continues to reserve and retain solely and exclusively all management rights, regardless of the frequency of use, including those rights and responsibilities set forth by law and those CITY rights set forth in the CITY's Personnel Rules and Regulations and including but not limited to the following: 2.1.1 To manage the CITY and determine policies and procedures and the right to manage the affairs of all Departments. 2.1.2 To determine the existence or nonexistence of facts which are the basis of the management decision in compliance with State law. 2.1.3 To determine the necessity, organization, implementation, and termination of any service or activity conducted by the CITY or other government jurisdiction and to 11 • 11 n U expand or diminish services. 2.1.4 To direct, supervise, recruit, select, hire, evaluate, promote, transfer, discipline, discharge, terminate, demote, reduce, suspend, reprimand, withhold salary increases and benefits for disciplinary reasons, or otherwise discipline employees in accordance with Department or CITY rules, regulations, or ordinances. 2.1.5 To determine the nature, manner, means, extent, type, time, quantity, quality, technology, standard, and level of services to be provided to the public. 2.1.6 To require performance of other public services not specifically stated herein in the event of emergency or disaster, as deemed necessary by the CITY. 2.13 To lay off employees because of lack of work or funds or under conditions where continued work would be inefficient or nonproductive or not cost effective, as determined by the CITY. 2.1.8 To determine and/or change facilities, methods, technology, equipment, operations to be performed organization structure, and allocate or assign work by which the CITY operations and services are to be conducted. 2.1.9 To determine method of financing. • 2.1.10 To plan, determine, and manage Departments' budget which includes, but is not limited to, changes in the number of locations and types of operations, processes and materials to be used in carrying out all functions and the right to contract or subcontract any work or operations. 2.1.11 To determine the size and composition of the work force, assign work to employees of the CITY in accordance with requirements determined by the CITY and to establish and require compliance to work hours and changes to work hours, work schedules, including call back, standby, and overtime, and other work assignments, except as otherwise limited by this AGREEMENTor_subsequent_ _ - Formatted: wi �Ps agreements. 2.1.12 To establish and modify goals and objectives related to productivity and performance programs and standards, including, but not limited to, quality and quantity, and required compliance therewith. 2.1.13 To determine qualifications, skills, abilities, knowledge, selection procedures and standards, job classification, job specifications, and to reallocate and reclassify employees in accordance with division and/or CITY Rules and Regulations. 2.1.14 To determine the issues of public policy and the overall goals and objectives of the CITY and to take necessary action to achieve the goals and objectives of the CITY. 2.1.15 To hire, transfer intra- or inter -Department, promote, reduce in rank, demote, reallocate, terminate and take other personnel action for non -disciplinary reasons in accordance with Department and/or CITY Rules, Regulations and Ordinances. 2.1.16 To determine policies, procedures and standards for recruiting, selecting, training and promoting employees. 2.1.17 To establish, implement, and/or modify rules and regulations, policies, and procedures related to productivity, performance, efficiency, personal appearance standards, code of ethics and conduct, safety, health, and order, and to require compliance therewith. 2.1.18 _To maintain order and efficiency in facilities and operation. 2.1. l9 Jo restrict the activity of an employee organization on CITY facilities except as set forth in this agreement. 2.1.20 To take any and all necessary steps and actions to carry out the service requirements and mission of the CITY in emergencies or any other time deemed necessary by the CITY and not specified above. 2.2 Nothing herein is meant to diminish CITY rights provided by the Government Code. 2.3 AUTHORITY OF THIRD PARTY NEUTRAL - MANAGEMENT RIGHTS All management rights, powers, authority and functions, whether heretofore or hereinafter exercised, shall remain vested exclusively with the CITY. No third party neutral shall have the authority to diminish any of the management rights which are included in this agreement. 2.4 Nothing herein is meant to diminish employee rights provided by the Government Code. ARTICLE 3-RECOGNITION 3.1 The Confidential Group is comprised of the following classifications: Executive Secretary/City Clerk Senior Accounting Technician Human Resources Analyst Support Services Coordinator Legal Assistant/Deputy City Clerk Personnel Technician Accounting Technician Account Clerk III - Confidential The term "employee" or "employces" as used herein shall refer only to the foregoing classifications. n L_J r -I L 3.2 Employees .working on a regular basis in a classified position, but less than full-time, shall receive vacation and sick leave accruals on a pro -rated basis commensurate With hours Worked. All benefits for new hires. including insurance benefits, will he allocated on a pro -rated basis commensurate with hours worked. 3.3 ELECTRONIC DEPOSIT All employees shall receive their pay by electronic methods. New hires must present account information for a checking or a savings account with an ACH member financial institution. ARTICLE 4 - TERM Except as otherwise specifically provided herein, the term of this AGREEMENT commences on July I. 20131 and expires and is otherwise fully terminated at midnight on June 30, 20134. ARTICLE 5 - ANTI -DISCRIMINATION The CITY and Confidential Group mutually agree they will not discriminate against employees for the exercise of their rights under the State of California Go%emment Code Section 3502. ARTICLE 6 - N ORK SCHEDULE • 1-his article is intended to define the normal hours of work and shall not be construed as a guarantee of work per day or per week. or of days of work per week. 6.1 WORKDAY: The normal Workday shall he eight (8) hours of work in a twenty-four (24) consecutive hour period, except in cases of emergencies. Alternative work schedules can be implemented upon approval of the City Manager- and providing they are not in violation of FLSA regulations. 6.2 WORKSHIFT: Employees shall he scheduled to work on regular workshifts having regular starting and quitting times. Except for emergencies, employees' workshifis shall not be changed without 24 hour prior notice to the employee. Call -out or overtime does not constitute as change in workshift. 6.3 WORKWEEK: The normal workweek shall be five (5) Workdays and two (2) consecutive days of rest in a seven (7) day period beginning Saturday, 12:00 a.m. and ending seven days later on Friday night at 11:59 p.m., except in cases of emergencies, or at the specific request of an employee and approval of department head. Nothing herein shall he construed to eliminate currently established irregular work schedules. 6.4 OVERTIME COMPENSATION 6.4.1 All work required by the CITY and actualh performed beyond forty (40) hours worked in a workweek is defined as Fair Labor Standards Act (FLSA) overtime. FLSA overtime shall be compensated at one and one-half (1.5) times the 0 employee's regular rate of pay, as defined by FLSA. 6.4.2 Designated CITY holidays shall be considered as time worked for purposes of computing overtime for personnel working a Monday through Friday, 8 hours a day, schedule with Saturday and Sunday as regular days off. Employees working other schedules will accrue 8 hours holiday time and, if working on the CITY designated holiday, be paid at the rate of one and one-half (1.5) time the employee's regular rate of pay, as defined by FLSA. 6.5 COMPENSATORY TIME OFF (CTO) 6.5.1 At the employee's option, Compensatory Time Off may be taken in lieu of payment for overtime. 6.5.2 CTO may be accrued. An employee's CTO balance shall indicate the amount of CTO available for employee's use. For example, if an employee works two (2) hours of FLSA overtime and elects to accrue CTO, the employee's CTO balance shall indicate three (3) hours. 6.5.3 An employee's CTO balance shall not exceed a maximum of forty (40) hours. If overtime is earned which would exceed this limit, the excess shall be paid in cash. 6.5.4 FLSA overtime shall be accrued and taken at one and one-half (1.5) times the amount of overtime actually worked. For example, if an employee works two (2) hours FLSA overtime in a workweek, the employee shall be entitled to either two (2) hours pay at one and one-half (1.5) times the employee's regular rate of pay, or three (3) hours of CTO. 6.5.5 All CTO requested by an employee shall be approved in advance by the employee's Department Head. Approval or denial of CTO shall be at the discretion of the Department Head. 6.6 EMERGENCIES: 6.6.1 Nothing herein shall be construed to limit or restrict the authority of management to make temporary assignments to different or additional locations, shifts, or duties for the purpose of meeting an emergency. Such emergency assignments shall not extend beyond the period of said emergency. 6.6.2 Short staffing caused solely by absences due to employees taking approved paid leave shall not he considered an emergency. ARTICLE 7- VACATION LEAVE NOTE: ALL LEAVE TIME (VACATION, SICK LEAVE, HOLIDAY, ETC.), WILL BE TAKEN OFF ON AN HOUR FOR HOUR BASIS EQUALING EMPLOYEE ACTUAL TIME OFF, REGARDLESS OF ACCUMULATION RATES. 11 C I • 0 7.1 During the term of this agreement, paid vacation leave shall be earned at the following rate: ERVICE YEARS ENT11 LENIENT 1 thru 2 10 3 thru4 II 5 thru 6 12 7 thm 8 13 9 thru 10 14 11 thm 12 15 13 thru 14 16 15 thru 16 17 17 thru 18 18 19 thru 20 19 21 or more 20 7.2 The standard for vacation time is eight (8) hours equals one (1) day. 7.3 MAXIMUM ACCUMULATION it is recognized that long-standing accumulations of vacation time exist for some employees. In order to compensate employees for this unused vacation time and reduce this liability for the I Y. CITY and Confidential Group agree on the following policy: 7.3.1 Unused vacation leave may be carried over into the following year to a maximum of foui-tu hundred twenrc (4O 20) hours. Employees exceeding the 40220 hour maximum as of the pay period containing November I of each year will hepaid have the following options related to the excess hours: a. Cash out: b. Concert hours to sick lease on an hour -for -hour basis: and'or c. Paid to deferred compensation. The CITY shall taakrLakS_said pav-memaction.W with the pay period containing December I of each )ear. Payment shall be computed based upon the employee's base hourly rate of pay as of June 30 of the same calendar year. Aternplavee"s 7.3.2 Employees separating from the CITY are entitled to pay for accumulated vacation prior to separation. 7.4 A member of the Confidential Group may exercise an option to convert into cash a maximum of for) (40) hours of accrued vacation leave each fiscal year. Such conversion shall be computed at the employee's current base hourly rate on an hour per hour basis. Formatted: Dere,u, Lek Indent: Left: 1% 5,=e Afte, 0 M lire sp3o g: maple, N,rnbered + IeM: 1 s Ntm6e" style: a, b, c, , start M: 1 ♦ AAWn rent Left . Aligned at: 1.25 + Indent at 1.5' ARTICLE 8 -HOLIDAYS 8.1 For the purpose of this agreement, the following days are the holidays for the employees in the Confidential Group: Independence Day ........................... July 4 Labor Day ....................................... 1" Monday in September Veteran's Day ................................. November I 1 Thanksgiving Day ............................. 4'" Thursday in November Day after Thanksgiving Day ............... 4'" Friday in November Christmas Day ................................. December 25 New Year's Day ............................... January 1 Martin Luther King, Jr., Day ................ P Monday in January Lincoln's Birthday ............................. February 12 President's Day ............................... 3`" Monday in February Memorial Day ...................... I........... Last Monday in May Floating Holiday ............................... Varies Floating Holiday ............................... Varies 8.2 Holidays falling on Saturday shall be observed on the preceding Friday, and holidays falling on Sunday shall be observed on the following Monday; and, shall be considered designated holidays for purposes of overtime. 8.3 One holiday equals eight hours. For those employees working the 9/80 alternative work schedule, one holiday may equal up to 9 hours. Accrued holiday time may be taken in less than eight hour increments. 8.4 It is agreed that when a holiday is proclaimed by the Mayor of the CITY, then each employee shall be granted time -off in the same number of equivalent work hours. Such time -off shall be selected by the Department Head. 8.5 Employees may accumulate up to a maximum of forty-eight (48) hours holiday time. Hours of holiday time accumulated over 48 hours will be paid off. When an employee terminates employment with the CITY, he/she shall receive pay for his/her current holiday balance up to a maximum of 48 hours at his/her current base hourly rate. 8.6 CITY's denial of requested holiday time off shall be neither arbitrary nor capricious. ARTICLE 9 - ADMINISTRATIVE LEAVE 9.1 Each member of the Confidential Group is eligible to cam thiAy-si*f -five (4641) hours of administrative leave per fiscal year. The time during the fiscal year, at which an employee may take administrative leave, shall be determined by th&hj.Vher department head with regard for the wishes of the employee and particular regard for the needs of the services. r� U 0 0 9.2 Up to twenty-four (24) hours of administrative leave may be rolled over into the following fiscal year. Upon termination. employee will be paid the pro -rated amount commensurate with that portion of the fiscal year worked. ARTICLE 10-SICK LEAVE 10.1 During the term of this agreement, sick leave shall he earned at the rate of one (1) eight - hour workday for each calendar month of service. Sick leave used shall be actual employee time off. For example, if an employee works four (4) ten (10) hour days per week and is off sick for one of the ten (10) hour days, ten (10) hours shall be deducted from employee's sick leave balance. There shall be no maximum to the amount of sick leave that an employee may accumulate. 10.2 Based on individual milization of paid sick leave in the preceding fiscal year, employees may convert unused accumulated sick leave into paid vacation leave once during the following fiscal year. pursuant to the formula below: Maximum Com ersion Sick Lease Utilization Sick Leave To Vacation Leave 0 hours % hours 48 hours .25 to 8 hours 72 hours 36 hours 8.25 to 16 hours 48 hours 24 hours 16.25 to 25 hours 24 hours 12 hours • Over 25 hours 0 hours 0 hours At least one hundred sixty (160) hours shall remain in I(l.C_employee's sick leave bank after any conversion is authorized. 10.3 Upon the service retirement of an employee, who has more than ten (10) years of service with the CITY, said employee shall be entitled to receive payment for up to the first ninety (90) days Of hisfher accrued sick leave at twenh-five percent (25%) of the employee's rate of pay as of the date of sen ice retirement. Sen-ice retirement is defined as service retirement from both the CITY and the respective retirement system thereof. NOTE: Sick leave converted to service credit for C91PERS purposes cannot be compensated 1comerted to dollars). ARTICLE I - RETIREMENT BENEFITS 11.1 All members of the Confidential Group pay 1000: of the employee contribution to CaIPERS. 11.2 Confidential Group understands and agrees that employees bear the risk of payment of any increases in the employee contribution above the current percentage made by action 9 0 n u of the Ca1PERS or the state legislature. 11.3 Parties agree that CITY payment of CaIPERS contributions are made based upon tax treatment currently permitted by the State Franchise Tax Board and the IRS. 11.4 Should current tax treatment change, the Confidential Group shall hold harmless the CITY, its officers and agents from any and all claims or costs of any type including, but not limited to, liability for back taxes, arising out of this agreement to pay part of the employee's CaIPERS; contribution. 11.5 Should current tax treatment change, the Confidential Group shall have the opportunity to meet and confer regarding any such changes. 11.6 For employees hired prior to December 10, 2011, the CITY agrees to continue to provide CaIPERS Miscellaneous Employees with the following Ca1PERS optional benefits: 2.7%at 55 plan (Section 21354) Sick Leave Credit Option (Section 20%5) One -Year Final Compensation (20042) Military Service Credit (21024) 1959 Survivor Benefit, Level 4" (21574) 11.7 For employees hired on or after December 10, 2011, but before January 1. 2013. the • CITY will provide a retirement benefit program through CaIPERS with the following Ca1PERS optional benefits: 2%@ 60 plan (21353) Sick Leave Option (Section 20965) Final Compensation Average 36 consecutive highest months (20037) Military Service Credit (21024) 1959 Survivor Benefit 0 Level (21574) - - FarmatteA: Intent Left: 0','" lire: 0' 11.8 For emploNces hired on or after January 1. 2013, the CITY will provide a retirement- - ro.maetee: Inemr. tert: o-, naTngirg: os benefit program through Ca1PERS with the following Ca1PERS optional benefits: 2% net. 62 plan Sick Leave Ontion (Section 20965) Final Compensation Average 36 consecutive hiehest months (20037 Military Service Credit (21024) 1959 Survivor Benefit 40 Level (21574) ARTICLE 12 - HEALTH BENEFITSIDEFERRED COMPENSATION PROGRAM 12.1 HEALTH INSURANCE 12.1.1 Employees of the Confidential Group shall participate in the CalPERS medical insurance plans on a cafeteria -style basis, with the CITY contributing the 10 0 CalPERS minimum (currently $1121/monthI to the active employee's medical insurance and 51.00/month or the amount required by CaIPERS to retiree medical insurance. Amcosts in excess of these contribution rates shall be paid by the employee and retiree. 12.1.2 The Confidential Group receives a cafeteria plan contribution (including the amount required by CalPERS in 12.1.1 above) as follows: Employee only - up to $715/month or cost of insurance, whichever is less Employee + I — up to S9467/month or cost of insurance, whichever is less Employee+ family -up to SI.G-Wmonth or cost of insurance, whichever is less 12.1.3 Effeeik e janu_ 1. _ _ Deeernber 1. 2012), 12.2 DENTAL AND VISION INSURANCE: • 12.2.1 During the term of this Agreement, the CITY shall offer dental/life and vision insurance and each employee shall be required to carry both dental/life and vision insurance for self Life Insurance is provided at 5230.000 per employee (630.000 1.2013The following rates are effective January 1, 20123. Vision Dental Life Total Bank EE Pays Emrlo%ce onh S 7.64 $ 42.87 S S70 S 56_21 S 49.48 S 6.73 Employee +l 14.32 119.56 5.70 139.58 120.97 18.61 Emrlo_ Ncc +2-cc +• 19.52 119.56 170 144 78 125.54 19.24 11 0 CITY will pay the remaining premium for dental/life and vision. Any increases to vision, dental and/or life will be borne by the employee. 12.3 Arry coverage made available to future retirees beyond COBRA time requirements shall be paid for by the retiree. 12.4 The provisions of this section shall be binding on the parties through the remainder of this agreement and for the term of the agreement that will be effective July 1, 201-23. The parties agree herewith that no further collective bargaining will occur with respect to this section for the term of the agreement ending June 30, 20144. 12.5 CONTRIBUTION TO OTHER PROGRAMS CITY will contribute up to $1,000 per calendar year to employee's deferred compensation, or approved retiree medical savings plan, on a 2:1 basis (i.e., employee contributes $2, CITY contributes $1). ARTICLE 13- EDUCATION INCENTIVES 13.1 CITY agrees to reimburse the costs for job -related and job -required certifications, correspondence courses, and licenses (except Class III drivers license) upon successful completion of the examination or course by the employee having written authorization in advance from their department head. This shall include application fees, examination fees, and certificate fees. Renewal fees may be paid in advance by the CITY. CITY agrees to provide a City vehicle, when available, during normal working hours for required transportation and will permit paid time for employee to take examinations scheduled during normal working hours. No mileage payments are authorized for personal transportation, and time spent outside normal working hours shall not be compensated. 13.2 COLLEGE DEGREES 13.2.1 CITY agrees to pay the following education incentives on base salary to regular employees hired prior to January 1, 1998 who hold degrees above the minimum required in their respective classification. Associate of Arts Degree - $600 annually Bachelors Degree - $1,200 annually 13.2.2 If an employee's job description requires an AA degree and the employee has a Bachelor's Degree, the employee will receive only the difference between an AA and a BA degree, or SW annually. 13.2.3 If an employee's job description requires a degree or if an employee is promoted 12 r� U • 11 n LJ to a classification that requires a degree, the employee shall not receive education incentive pay for the required degree. The parties agree that this section shall not be interpreted to reduce the amount of education incentive pay that any employee hired prior to January 1, 1998 receives, notwithstanding the fact that the employee is promoted to a higher position requiring a particular degree, or the fact that the job description for the employee's existing position has been revised to require a particular degree. In the event an employee hired prior to January 1, 1998 promotes to a position requiring a degree not required by the lower position, or if the job description for an employee hired prior to January 1, 1998 is revised to require a degree not previously required for the position, the employee shall continue to receive the amount of the education incentive pay received in the lower position or previous job description. 13.2.4 Based on the new job descriptions for all classifications which were adopted in May 1995, as well as salary survey implementation over the last three years, employees currently in positions now required to hold an AA or BA degree according to the job description for the classification they hold, will continue to receive an educational incentive for said degree. Any employees hired on or after January 1, 1998 or current employees promoted on or after January 1, 1998 to positions requiring degrees will be subject to section 13.2.3 above. is13.2.5 Employees hired on or after January 1, 1998 shall not be eligible for this incentive. ARTICLE 14 - SALARIES 14.1 Salaries shall remain --uneha:gedb increased by 2% f-.F - a fe. F1 Of tthis Agrieffective with the pay period containing January 1, 2014. 14.2 All salary adjustments, including, but not limited to, merit increases, educational incentives, and any other pay adjustments will take effect at the beginning of the next payroll period after the scheduled effective date of the increase. 14.3 Any and all special pay incentives will be calculated on base salary. ARTICLE 15 - SPECIAL PAY PRACTICES Members of the Confidential Group who are required by their supervisor to attend meetings outside of the normal work schedule for the purpose of taking minutes of said meetings shall be paid a minimum of four hours at time and one-half without regard to hours actually worked during the work week Minutes taken at meetings during regular work hours shall be included in employees' regular rate of pay and not compensated beyond that. ARTICLE 16—PROBATION 13 0 The probationary period for newly hired employees shall be twelve (12) months. The probationary period for employees promoted to a higher classification shall be six (6) months in the new classification. The CITY shall have the option of granting a newly hired employee regular status at any time after nine (9) months of service. ARTICLE 17 - NO STRIKE, NO LOCK -OUT 17.1 During the tens of this Agreement, the CITY will not lockout any employees nor will the Confidential Group members cause, authorize, advise or encourage any interruption of work or any other concerted action. The term "interruption of work" shall mean any work stoppage or strike (including economic and unfair labor practice strikes) or any intentional slowdown of work. The term "other concerted action" includes picketing or boycott activities by the Confidential Group. 17.2 There shall be no refusal to work on, handle or produce any materials or equipment because of a labor dispute. 17.3 Any employee engaging in any action prohibited by this Article shall be subject to immediate discharge or such other discipline as the CITY may assess. Such discharge or discipline shall not be reviewable through the Grievance Procedure. ARTICLE 18- FULL UNDERSTANDING, MODIFICATION, WAIVER 18.1 This AGREEMENT sets forth the full and entire understanding of the parties regarding - rarmattta:Nl"Ps the matters set forth herein, and any other prior or existing understanding or agreements by the parties, whether formal or informal, regarding any such matters are hereby superseded or terminated in their entirety. 18.2 It is agreed and understood that each parry hereto voluntarily and unqualifiedly waives its right to negotiate, and agrees that the other party shall not be required to negotiate, with respect to any matter covered herein. 18.3 No agreement, alteration, understanding, variation, waiver, or modification of any of the terms or provisions contained herein shall in any manner be binding upon the parties hereto unless made and executed in writing by all parties hereto, and if required, approved by the CITY and ratified by the membership of the Confidential Group. 18.4 The waiver of any breach of any term, or condition of thisAGREEMENT by either party . - rarmattee: M reps shall not constitute a precedent in the future enforcement of all its terms and provisions. 18.5 If the Cily agrees to an economic package fqr rgyr;Kn(ed and/or unrepresented employee rrormatted: roar. (orrauit) Times New Roman organizations substantively different from the Confidential Unit'g settlement for the period of rormattea: 1-t(Eult) Times New Roman July 1. 2013 through June 30. 2014. the City will consider modifying the Resolution to provide rormattea: root (Default)Times New Roman an equivalent increase. ARTICLE 19 - SEVERABILITV 14 11 n U If an) provision(s) are held to be contran to law by a coun of competent jurisdiction. such pro.ision(s) mill not be deemed valid and subsisting except to the extent permitted by law, but all other provisions will continue in full force and effect. FUM CONFIDENTIAL EMPLOYEES GROUP Laurie Goforth, Human Resources Analyst Jamie Boucher, City Clerk LJ Cris Brain, Senior Accounting Technician 40 15 Date: CITY OF MORRO BAY Andrea K Lueker, City Manager Susan Slayton, Admin. Services Dir. RESOLUTION NO. 55-13 • RESOLUTION OF THE CITY OF MORRO BAY ADOPTING THE MEMORANDUM OF UNDERSTANDING WITH THE MORRO BAY FIRE FIGHTERS ASSOCIATION AND RELATED COMPENSATION 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 by the City Council of the City of Morro Bay, • that it hereby approves and adopts, in full, the Memorandum of Understanding for the period July 1, 2013 through June 30, 2014, as attached and made a part of this Resolution. BE IT FURTHER RESOLVED by the City Council of the City of Morro Bay that the City Manager is hereby authorized to execute the Memorandum of Understanding on behalf of the City. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a meeting thereof held this 12a' day of November, 2013 by the following vote: AYES: Irons, C. Johnson, N. Johnson, Leage, Smukler NOES: None ATTEST: kjm�� JAMIE OUCHER. City Clerk 0 , -C-4, Fv` ' Wr Table of currwte ARTICLE1 PURPOSE.. ................ ......................................... .......... . . . . ................ . ......... I ARTICLE2 MANAGEMENT........................................................... .......... .......... ........... ........................ I ARTICLE 3 MBFF RECOGNITION........................................................... _............... _........................... 4 ARTICLE4 MBFF BUSINESS ................. _................ _............................. _............................................ 5 ARTICLE AUTHORIZED AGENTS ................................ ........ _............................................................. 5 ARTICLE 6 WITHHOLDING OF MBFF DUES AND INSURANCE. ............................................ . ........... 6 ARTICLE TERM - ............. ............... ...._................................................................. .........6 ARTICLE 8 RENEGOTIATIONS ........................................... ..... __................ .................................. _...--6 ARTICLE 9 ANTI -DISCRIMINATION ...... _..... ................... ....................._------------..--.-...........................--7 ARTICLE 10 WORK SCHEDULE... .......................................................... _ ...... .. .................................... 7 ARTICLE 11 VACATIONS AND HOLIDAYS ............................................... _._........................................ a ARTICLE12 SICK LEAVE ................................ _..... ....... ...................... ..... _................. _....................... 10 ARTICLE 13 RETIREMENT BENEFITS .......... ................... .................._..........__......_.......................... 11 ARTICLE 14 HEALTH BENEFITS ............................ _................................ _................................... janu ARTICLE 15 EDUCATIONAL INCENTIVES......_................................................................................... 13 ARTICLE 16 UNIFORM ALLOWANCE........................................................... ....... ............................... _14 • ARTICLE 17 ARTICLE 18 SALARIES............... ............................................. _......... SPECIAL PAY PRACTICES ...... ....... _..................................._..-----.................................. 14 15 ARTICLE 19 HEALTH AND SAFETY ARTICLE ........................................... _........................................ . 16 ARTICLE 20 MINIMUM STAFFING .. ................................................. ............................................. JZ4746 ARTICLE 21 PERSONNEL RULES................................................................................................ 1L3$L7 ARTICLE22 LAYOFFS...................................................................................................._.........- 1.$1$l7 ARTICLE 23 PROCESSING OF FORMAL GRIEVANCES ........................................... ......... _........ _..... 18 ARTICLE 24 ELIMINATION OF FIRE SERVICE._....__ ...................._.... .--.___.......... ..... ....................... 19 ARTICLE 25 NO STRIKE. NO LOCK -OUT ............ _..................................... _...................... .......... ...... .19 ARTICLE 26 FULL UNDERSTANDING, MODIFICATION, WAIVER ..................... _....................... j%jQ19 ARTICLE27 SEVERABILITY......................._......._...._........._..................._.............................._.......20 Mono Bay FnerVhtB UM 2gi2 0;`1}2gtd-Z 1�4 MOU Page i MEMORANDUM OF UNDERSTANDING BETWEEN THE MORRO BAY FIRE FIGHTERS AND THE CITY OF MORRO BAY 241-22013 20432014 ARTICLE 1 PURPOSE WHEREAS, the City of Morro Bay is a municipal corporation existing under the laws of the State of California as a general law city; and WHEREAS, the City of Morro Bay is limited, insofar as funds are concerned, because of a fixed tax rate, and in structure because it is a public entity rather than a profit -making business; and WHEREAS, the Morro Bay Fire Fighters and the City of Morro Bay recognize that the mission and the purpose of the City is to provide high -quality and economical municipal services and facilities to the residents of the City of Morro Bay: THEREFORE, this Memorandum of Understanding is entered into as of, November 12 Sepleeibec-2r}-24122013, between the City of Morro Bay, referred to as CITY, and the Morro Bay Fire Fighters, referred to as MBFF. It is the intent and purpose of this memorandum to assure sound and mutually beneficial working and economic relations and conditions between the parties hereto; to provide for an orderly and peaceable method and manner of resolving any differences which may arise and to negotiate any misunderstanding which could arise and to set forth herein the basic and full agreement between the parties concerning the pay, wages, hours of employment, and other terms and conditions of employment. ARTICLE 2 MANAGEMENT 2.1 In order to ensure that the City shall continue to carry out its public safety functions, programs, and responsibilities to the public imposed by law, and to maintain efficient public safety service for the citizens of Morro Bay, the City continues to reserve and retain solely and exclusively all management rights, regardless of the frequency of use, including those rights and responsibilities set forth by law and those City rights set forth in the City's Personnel Rules and Regulations and including but not limited to the following: 2.1.1 To manage the Fire Department and determine policies and procedures and the right to manage the affairs of the Department. 2.1.2 To determine the existence or nonexistence of facts which are the basis of the management decision in compliance with State law. Morro Bay Firefighters Unit 2942ZQ]$-2 ZQaMOU Page t C� J 0 2.1.3 To determine the necessity, organization, implementation, and termination of any service or activity conducted by the City or other government jurisdiction and to expand or diminish fire services. 2.1.4 To direct, supervise, recruit, select, hire, evaluate, promote, transfer, discipline, discharge, terminate, demote. reduce. suspend, reprimand, withhold salary increases and benefits for disciplinary reasons, or otherwise discipline employees in accordance with Department or City rules, regulations, or ordinances. 2.1.5 To determine the nature, manner, means, extent, type, time, quantity, quality, technology, standard. and level of fire services to be provided to the public. 2.1.6 To require performance of other public safety services not specifically stated herein in the event of emergency or disaster, as deemed necessary by the City 2.13 To lay off employees of the Fire Department because of lack of work or funds or under conditions where continued work would be inefficient or nonproductive or not cost effective. as determined by the City. 2.1.8 To determine and/or change the fire facilities, methods, technology, • equipment, operations to be performed, organization structure, and allocate or assign work by which the City fire operations and services are to be conducted. 2.1.9 To determine method of financing. 2.1.10 To plan, determine. and manage Department's budget which includes. but is not limited to. changes in the number of locations and types of operations, processes and materials to be used in carrying out all Fire Department functions and the right to contract or subcontract any work or operations of the Fire Department. 2.1.11 To determine the size and composition of the Fire Department work force, assign work to employees of the Fire Department in accordance with requirements determined by the Fire Department and to establish and require compliance to work hours and changes to work hours, work schedules. including call back, standby. and overtime. and other work assignments, except as otherwise limited by this agreement. or subsequent agreements 2.1.12 To establish and modify goals and objectives related to productivity and performance programs and standards, including but not limited to quality and quantity, and required compliance therewith. Mp Bey F,Ootem Umt 211i22212-2B43291 a MO Page 2 0 2.1.13 To determine qualifications, skills, abilities, knowledge, selection procedures and standards, job classification, job specifications, and to reallocate and reclassify employees in accordance with division and/or City Rules and Regulations. 2.1.14 To determine the issues of public policy and the overall goals and objectives of the Fire Department and to take necessary action to achieve the goals and objectives of the Fire Department. 2.1.15 To hire, transfer intra or inter Department, promote, reduce in rank, demote, reallocate, terminate and take other personnel action for non - disciplinary reasons in accordance with Department and/or City Rules, Regulations and Ordinances. 2.1.16 To determine policies, procedures and standards for recruiting, selecting, training and promoting employees. 2.1.17 To establish, implement, and/or modify rules and regulations, policies, and procedures related to productivity, performance, efficiency, personal appearance standards, code of ethics and conduct, safety, health, and order, and to require compliance therewith. 2.1.18 To maintain order and efficiency in fire facilities and operation. 2.1.19 To restrict the activity of an employee organization on City facilities except as set forth in this agreement. 2.1.20 To take any and all necessary steps and actions to carry out the service requirements and mission of the City in emergencies or any other time deemed necessary by the City and not specified above. 2.2 Nothing herein is meant to diminish City rights provided by the Government Code. 2.3 Nothing herein is meant to diminish employee rights as provided by the Government Code including the right to meet and confer on changes in standards for promotion. Morro Say Fimfightera Unit 20QZQ I-297&gf2(9-MOU Page 3 • ARTICLE 3 MBFF RECOGNITION 3.1 Pursuant to Resolution No. 74-69, the Employer -Employee Relations Resolution of the City of Morro Bay and applicable state law, the Mono Bay Fire Fighters, was designated by the City of Morro Bay as the representative of City fire fighting employees. The term `employee' or `employees' as used herein is comprised of the following classifications: Captain/Paramedic Captain Engineer/Paramedic Engineer Firefighter/Paramedic Firefighter 3.2 Employees working on a regular basis in a classified position, but less than full- time, shall receive vacation and sick leave accruals on a pro -rated basis commensurate with hours worked. All benefits for new hires, including insurance benefits, will be allocated on a pro -rated basis commensurate with hours worked. 33 FIRE ENGINEER RATING • 3.3.1 It is recognized, in principle, as long as the full-time MBFF personnel complement of the Mono Bay Fire Department remains at ten (10) or less. that efficient operation of the Department requires an increase in the authorized number of Fire Engineers. Accordingly, CITY agrees to promote to Fire Engineer all personnel classified as Fire Fighter hired after the effective date of this agreement provided that they have served for eighteen (18) months with the CITY in the Fire Fighter classification, that at the completion of eighteen months of employment, they have been recommended by the Fire Chief for promotion and have demonstrated, through successful completion of written and practical examinations that they have successfully completed six semester units of Fire Science courses at an institution approved by the Fire Chief. The City shall make every effort to schedule the examination to be completed prior to the expiration of eighteen months. The content and passing grade of the written and practical examinations will be determined by the Fire Chief subject to the approval of the City Manager. 3.32 An individual recommended for promotion, and failing to attain a passing grade in either the written or practical examination, shall not be eligible for reexamination until six (6) months after the date of failure. Aland Bey FneRgMers Unit 2B322Qt}293a20to MOU Page 0 ARTICLE 4 MBFF BUSINESS 4.1 Employee representatives designated by the MBFF shall be granted time oft, without loss of pay, to attend "meet and confer" sessions with the Municipal Employee Relations Officer and/or his designee on subjects within the scope of representation when such meetings are scheduled during regular working hours. Should such meeting extend beyond an employee representative's regular working hours, the employee representative shall be paid for only the regular working hours. 4.2 It is understood that this time -off provision shall only apply to a maximum of two employees attending any one meeting between CITY and MBFF where exceptional circumstances warrant, the City Manager may approve the attendance at such meetings of additional employee representatives. The MBFF shall, whenever practicable, submit the names of all employee representatives to the Municipal Employee Relations Officer at least two working days in advance of such meetings. Provided further (1) that no employee representative shall leave his or her duty or work station or assignment without specific approval of the department head or other authorized City management official; and (2) that any such meeting is subject to scheduling by City management in a manner consistent with operation needs and work schedules. 4.3 Off -duty employees will not be paid for attending meet and confer sessions, nor will over -time be paid for same. The parties agree to consider the shift schedules of team members in scheduling meetings. 4.4 MBFF may hold unit meetings at the Fire Station, 715 Harbor Street, after 1700 hours with two days' prior notice to Fire Chief. The Fire Chief has the authority to deny and/or cancel said meeting if it conflicts with official City activities for MBFF duties. ARTICLE 5 AUTHORIZED AGENTS For the express purpose of administering the terms and provisions of this agreement: 5.1 Management's principal authorized agent shall be the City Manager or his/her duly authorized representative (address: 595 Harbor Street, Morro Bay, CA 93442; telephone (805) 772-6200) except where a particular management representative is specifically designated in the agreement. 5.2 The Morro Bay Fire Fighters principal authorized representative shall be the shop steward of the Unit, or his/her duly authorized representative (address 715 Harbor St., Morro Bay, CA 93442). Mono Bay Firefighters Unif 2B}22013-20432014 MOU Page 5 0 ARTICLE 6 WITHHOLDING OF MBFF DUES AND INSURANCE 6.1 It is agreed that CITY will withhold MBFF dues and MBFF group insurance premiums from the monthly pay of each regular City employee who is a member of the MBFF. MBFF agrees to provide CITY with individual MBFF member authorizations signed by the individual MBFF member authorizing CITY to make agreed deductions, specifying the amount of each deduction, and authorizing CITY to issue a check, payable to MBFF, for the collective amount of the individual deductions. CITY does not accept responsibility for computing the amounts of deductions or for meeting payment dates which may not coincide with established pay periods. CITY will issue a single check to the MBFF for the total amount of deductions withheld from the individual employeespay- The MBFF will be responsible for the accounting and disbursing of all such funds received from CITY. MBFF will be responsible for properly notifying CITY of any changes in deductions and will be the sole agent through which CITY will act in explaining, initiating, executing, or terminating the provisions of this Article. Such notification must be received by the CITY at least two weeks prior to the effective date of the change. Also. such change notice must include a copy of the notice sent to the employees officially telling them of the change. 6.2 MBFF shall indemnify and hold harmless the City of Morro Bay, its officers, agents, and employees from any and all claims. demands. damages, costs, • expenses, or liability arising out of this Article. 6.3 It is agreed that CITY will deposit payroll deductions made payable to a City approved Credit Union providing the MBFF makes arrangements for such services that are acceptable to both members and CITY. ARTICLE 7 TERM Except as otherwise specifically provided herein, the term of this Memorandum of Understanding commences on JUIv 1. S^^'er; �^f'.�,,'^"2013, and expires and is otherwise fully terminated June 30, 20432014. ARTICLE B RENEGOTIATIONS 8.1 In the event either party wants to renegotiate a successor Agreement, such party shall serve upon the other during the period of Februatygeeernbe- 15, 2042-2014 to JMarch anuaryl5, 24432014, its written request to begin negotiations as well as it's full and entire written proposals amending this agreement 8.2 The parties agree that, except by mutual agreement, no new subjects may be introduced into the process after the third (3rd) negotiations meeting. 8.3 Should the parties be unable to reach agreement on a new contract before the current contract expires, all applicable provisions of this Agreement shall remain Moro Bay Firefighters Unit N1*20}2644 2214 MOU Page 6 in full force and effect until such time as a new Agreement is reached, or September 30, 20132014, whichever first occurs. ARTICLE 9 ANTI -DISCRIMINATION The CITY and MBFF mutually agree they will not discriminate against employees for the exercise of their rights under the State of California Government Code Section 3502. ARTICLE 10 WORK SCHEDULE This article is intended to define the normal hours of work and shall not be construed as a guarantee of work per day or work per week or of days of work per week. 10.1 WORKDAY The normal workday shall be a twenty-four (24) consecutive hour period, except in cases of emergency or for reasons of attendance at extended training opportunities, or temporary duty assignments while on light duty when other shifts may be assigned by the Chief provided there is mutual agreement between the parties. 10.2 WORKSHIFT Employees shall be scheduled to work on regular work shifts having regular starting and quitting time. Except for emergencies, employees' work shifts shall not be changed without four days (96 hours) prior written notice to the employee. Call out or overtime does not constitute a change in work shift. 10.3 WORKWEEK The normal workweek shall average fifty-six (56) hours of work in a seven (7) consecutive day period, except in cases of emergency. 10.4 OVERTIME 10.4.1 Overtime is defined as all hours worked in excess of 106 hours worked in a 14 day work period. For those assigned to an 8-hour day, overtime shall be defined as all hours worked in excess of forty -hours per week. Vacation time and compensatory time off shall be treated as hours worked. 10.4.2 All overtime as defined above shall be paid at one and one-half (1.5) times the employee's regular rate of pay. Compensatory time off earned pursuant to 10.4.4 below will accrue at one and one-half (1.5) times hours worked. 10.4.3 Employees required to return to work on a scheduled vacation day, shall be paid at the rate of 1.5 times their regular rate of pay for the hours actually worked. Morro Baynmrightera Unit 2042jQ3-2942-2Q MOU Pape) • 0 rIL 10.4.4 Employees may elect compensatory time off (CTO) in lieu of paid overtime subject to the following provisions. 10.4.4.1 CTO may be elected for overtime incurred due to training time only. 10.4.4.2 Maximum CTO accrual will be 140 hours. All overtime earned after CTO is accrued to the 140 hour maximum will be paid in cash. 10.4.4.3 Accrued CTO may be cashed out upon the request of the employee and the approval of the department. CTO accrued at time of separation will be paid off. 10.4.4.4 CTO may b e taken off upon employee request and department approval. CTO will not be approved if it will require overtime. 10.4.4.5 Other overtime provisions notwithstanding. employees forced to hold over for 12 hours or more will receive time and one half compensation for the hours worked on that day • 10.5 EMERGENCIES 10.5.1 Nothing herein shall be construed to limit or restrict the authority of management to make temporary assignments to different or additional locations. shifts, or duties for the purpose of meeting an emergency. 10.5.2 Such emergency assignments shall not extend beyond the period of said emergency. 10.5.3 Short staffing caused solely by absences due to employees taking approved paid leave shall not be considered an emergency. ARTICLE 11 VACATIONS AND HOLIDAYS 11.1 CITY and MBFF agree that difficulties exist in equating the work schedules of fire fighters to the work schedule of non -shift personnel, i.e.. shift periods compared to hours and days worked by other City employees. Therefore, a formula is agreed to for computing the vacations and holiday periods for fire fighters. Such formula is agreed to be a ratio as follows: Fire fighter's total available shifts per year is to the general employees' total available work days per year (260) as X is to the number of authorized vacation and holidays days of the general employees. when X equals the amount of shifts off for fire fighters comparing fire fighters to employees of equal tenure. I Moro Bay flrerightem Una 20; 2073-23:32_MOU Page 8 0 11.2 Pursuant to Section 11.1, the following lists the vacation and holiday annual accrual schedule for members of the MBFF assigned to shift work: SERVICE VACATION HOLIDAY TOTALANNUAL SHIFTS/ YEARS ACCRUAL ACCRUAL ENTITLEMENT YEAR 0 thru 2 112.0 hrs. 146.96 hrs. 258.96 hrs. 10.792 3 thru 4 123.2 hrs. 146.96 hrs. 270.16 hrs. 11.257 5 thru 6 134.4 hrs. 146.96 hrs. 281.36 hrs. 11.723 7 thru 8 145.6 hrs. 146.96 hrs. 292.52 hrs. 12.19 9 thru 10 156.8 hrs. 146.96 hrs. 303.76 hrs. 12.657 11 thru 12 168.0 hrs. 146.96 hrs. 314.96 hrs. 13.123 13 thru 14 179.2 hrs. 146.96 hrs. 326.16 hrs. 13.59 15 thru 16 190.4 hrs. 146.96 hrs. 337.36 hrs. 14.057 17 thru 18 201.6 hrs. 146.96 hrs. 348.56 hrs. 14.523 19 thru 20 212.8 hrs. 146.96 hrs. 359.76 hrs. 14.99 21 + 224.0 hrs. 146.96 hrs. 370.96 hrs. 15.547 11.3 MAXIMUM ACCUMULATION It is recognized long-standing accumulations of vacation/holiday time exist for some employees. In order to compensate employees for this unused time, CITY and MBFF agree on the following policy: 11.3.1 Unused vacation/holiday leave may be carried over into the following year to a maximum of two times an employee's annual accumulation of vacation time plus one year of holiday time. Employees exceeding the maximum as of the pay period containing November 1 of each year will be paid off for time exceeding the maximum. The City shall make said payment with the pay period containing December 1 of each year. Payment shall be computed based upon the employee's base hourly rate of pay as of June 30 of the same calendar year. 11.3.2 Employees separating from the City are entitled to pay for the accumulated vacation based upon employee's base hourly rate of pay as of June 30 prior to separation. 11.4 The following holidays are used in Section 11.2 above to determine total annual entitlement. Employees may be scheduled to work on holidays. All employees except those assigned to 8-hour shifts shall be compensated for holidays as provided in 11.2 above. Independence Day Labor Day Veteran's Day Thanksgiving Day I Marro Bay Firefighters Unit July 4 1st Monday in September November 11 4th Thursday in November 20 222Q-204&2914 MOU Page 9 n LJ u 11 Day after Thanksgiving Christmas Day New Years Day Martin Luther King Birthday Lincoln's Birthday Washington's Birthday Memorial Day Floating Holiday Floating Holiday Friday after Thanksgiving December 25 January 1 3rd Monday in January February 12 3rd Monday in February Last Monday in May Varies Varies 11.5 For any additional holiday proclaimed by the Mayor, shift employees shall be paid for 11.2 hours of work and employees assigned to eight hour duty shall receive the holiday off. Employees may be scheduled to work on such holidays. ARTICLE 12 SICK LEAVE 12.1 It is agreed that the firefighters will earn sick leave per month at the same ratio that their assigned shift schedule compares to other full-time employees (1.4.1) for 24-hour shift workers or (1.0:1) for eight -hour shift employees. There shall be no maximum number of sick leave hours that a member of MBFF may accrue. 12.2 All use of sick leave shall be charged on an hour -for -hour basis. • 12.3 At termination, accumulated in the Sick Leave Accrual is not compensable, however, upon retirement, may be converted to additional time as provided by the PERS sick leave option. 12.4 Any use of sick leave covering a period beyond seven calendar days may require approval by a qualified medical authority for release to resume regular duties. 12.5 Recognizing Section 12.1 above requires a transition from the method of accruing and charging sick leave contained in earlier Memoranda of Understanding, the following conversion of previously accrued sick leave shall be made. 12.5.1 For shift workers, all Sick Leave hours accrued but unused as of December 31, 2002, shall be multiplied by a factor of three (3) and shall become the employee's Sick Leave Accrual account until utilized on an hour for hour basis. 12.5 2 Credits added to the Sick Leave Accrual account for full-time employees after the date above shall be 11.2 hours per month or 0.046154 hours for each regular hours worked for part-time employees on shift work or eight (8) hours per month for employees assigned to an eight -hour day. Marc say F,MFghMrs Unit C1 J Page 10 ARTICLE 13 RETIREMENT BENEFITS 13.1 The CITY agrees to continue to provide PERS Safety employees in this unit hired prior to March 19, 2011 with a retirement benefit program through the Public Employees Retirement System (PERS) as follows: (Section References are to the California Government Code) 13.1.1 Highest Single Year Compensation (Section 20042) 13.1.2 Sick Leave Credit (Section 20965) 12.1 4-2 13.1.35 0 Level of 1959 Survivor Benefits (Section 21574) 13.1.46 3% @ 50 Retirement Formula (Section 21362.2) 13.2 All employees hired on or after March 19, 2011 but before January 1. 2013 in the regular full time classifications listed in Article 3.1 of this MOU between the City of Morro Bay and the Morro Bay Firefighters shall be provided with a retirement benefit program through the Public Employees Retirement System (PERS) as follows: 13.2.1 36 consecutive months final compensation 13.2.2 Sick Leave Credit (Section 20965) 13.2.36 0 Level of 1959 Survivor Benefits (Section 21574) 13.2.46 3% @ 55 Retirement Formula 13.3 Pursuant to the California Public Employees' Pension Reform Act of2013 (PEPRA). rate of fifty (50) percent of the expected normal cost rate with plan options as follows: FatEtl: Fait 12 pt 13.3.1 Sick Leave Ootion (Section 20965) ForwYlbtl: Font 12 pt 13.3.2 1959 Survivor Benefit 4th Level (21574) Formatted: Fart: 12 pt FormeeN: ❑IdMt: rim Ilse: D", Right 13.3 City and MBFF to jointly explore the establishment of an employee funded-0.07•, Line spa&g: single, Hyphenate, Tab Retirement Health Savings Account. saws: Hot at -'° 13.4 Employees are responsible for paying the entire employee retirement contribution. This contribution will be made on a tax deferred basis pursuant to IRS Code Section 414 (h)(2). Mono Bay Firefighters Unit 2942ZU-12B 214MOU Page 11 • 0 11 ARTICLE 14 HEALTH BENEFITS 14.1 City shall pay to each active employee by each pay period the monthly sum of the health plan selected by the employee, and dentalAife and vision plans. CITY and MBFF agree that City payment of this lump sum is to be used to provide medical care coverage for the employee and/or employees dependents. and that the employees hold harmless the City. its officers and agents, including but not limited to liability arising out of this agreement. Employees will be supplied with the current division of payment for medical. dentalAife, and vision insurance between City and each employee in MBFF as changes occur during this Agreement. 14.2 HEALTH INSURANCE 14.2.1 Employees of this UNIT shall participate in the PERS medical insurance plans on a cafeteria style basis, with the CITY contributing the PERS minimum (currently $44-2115/month) to the active employee's medical insurance and $1.00/month or the amount required by PERS to retiree medical insurance. Any costs in excess of these contribution rates shall be paid by the employee and retiree. 4 4.2.3 lZifective january 1, 2013 (beginning n...-.,. beF 4 ontm. UNIT employees shall receive a cafeteria plan contribution (including the amount required by PERS in 14.2.1 above) as follows Employee only - up to $715/month or cost of insurance, whichever is less Employee + 1 — up to $967/month or cost of insurance, whichever is less Employee + family - up to $1080/month or cost of insurance, whichever is less 14.3 DENTAULIFE AND VISION INSURANCE ife Insurance is provided at $2030.000 per employee ($30,000 beginning January 1, 2013). The following rates were effective January 1. 29122013. Vision I Dent I Life I Totals I QL2ays I EE a s F Mono Bay Frrefigbfens Unit MOU Page 12 Forsalted: Inds : Ha.WV: O.S, Tab Pops: 1', Left a 1.5, left . Y, Left . 2.5, left 4 Y left4 3.5', IeR 4 4', Left + 4.5'. Left 4 S, left . 55, Left . 6, Left + 6.5', left Formatted: Fp 12 pt Fonnaftd Table m 1 ee onl 7.64 2.87 1 .4 .73 m to ee + 1 14.32 119.56 5.70 1 1132.58 1 11ZO.97 18.61 Em to ee + 2+ 19.52 1 1119.56 1 5.70 1. 144.78 1.125.54 19.24 CITY will pay the remaining premium for dental/life and vision. ARTICLE 15 EDUCATIONAL INCENTIVES 15.1 COLLEGE DEGREES 15.1.1 CITY agrees to pay the following education incentives on base salary to regular employees hired prior to January 1, 1998 who hold degrees above the minimum required in their respective classification. Achievement in Fire Science $ 300 annually Associates Degree $ 600 annually Bachelor's Degree $1200 annually 15.1.2 If an employee's job description requires an Associate's degree and the employee has a Bachelor's Degree, the employee will receive only the difference between an Associate's and a Bachelor's degree, or $600 annually. 15.1.3 If an employee's job description requires a degree or if an employee is promoted to a classification that requires a degree, the employee shall not receive education incentive pay for the required degree. This section shall not be interpreted to reduce the amount of education incentive pay that any employee hired prior to January 1, 1998 receives, notwithstanding the fact that the employee is promoted to a higher position requiring a particular degree, or the fact that the job description for the employee's existing position has been revised to require a particular Morro Say Firefighters Unit 20422QL= 24 -2QJ4 MOU Page 13 FanrolteA: Font: 12 pt FomutEeE: Font 12 pt ForngeMtl: Pon[ 12 pt • 0 degree. In the event an employee hired prior to January 1, 1998 promotes to a position requiring a degree not required by the lower position, or if the job description for an employee hired prior to January 1, 1998 is revised to require a degree not previously required for the position, the employee shall, for the term of this MOU, continue to receive the amount of education incentive pay received in the lower position or previous job description 15.1 4 Based on the new job descriptions for all classifications which were adopted in May 1995, as well as salary survey implementation over the last three years, employees currently in positions now required to hold an AA or BA degree according to the job description for the classification they hold, will continue to receive an educational incentive for said degree. Any employees hired on or after January 1, 1998 or current employees promoted on or after January 1, 1998 to positions requiring degrees will be subject to section 15.1.3 above. 15 1.5 Employees hired on or after January 1, 1998 shall not be eligible for this incentive. Additionally, employees in this unit hired prior to January 1, 1998 and in the process of obtaining their AA or BA degree have until December 31, 2000 to obtain said degree and be eligible for the incentive. After December 31, 2000. this incentive shall expire except as otherwise • set forth in this section. ARTICLE 16 UNIFORM ALLOWANCE The uniform for the Fire Department is a two-piece work uniform, and two T-shirts, of a style, material and manufacture determined by the Fire Chief. Two (2) complete uniforms will be provided upon initial employment with the Fire Department and replacements provided are on an "as needed basis" as determined by the Fire Chief. The CITY will provide safety footgear of a type, style and manufacture as recommended by the Fire Chief _ CITY is responsible for normal upkeep, i.e., heels and soles, with replacement as determined by the Fire Chief. ARTICLE 17 SALARIES 17.1 c^ ^F^ be Ghanged fee the le•'^ ^r th 6 a ^•.Effective the pay period including January 1 2014 salaries shall be increased by two (2%) percent . Attached Exhibit B reflects salaries for members of this unit for the duration of this Agreement. 17.2 All salary adjustments. including but not limited to merit increases, educational incentives, and any other pay adjustments will take effect at the beginning of the next payroll period after the scheduled effective date of the increase. Mwro Bay F,rcbghters Unit r =CY _MOU Page 14 C� J 17.3 Any and all education/special pay incentives will be added to base salary. 17.4 Electronic Deposit. All employees hired after January 1, 2003 shall receive their pay by electronic methods. New hires must present account information for a checking or a savings account with an ACH member financial institution. 17.5 The following agencies shall be utilized for compensation comparison purposes: Arroyo Grande, Atascadero, CDF, Cambria, Paso Robles, and San Luis Obispo. 17.6 MBFF to conduct a comparable cities compensation survey prior to the commencement of negotiations for the period beginning July 1, 2013. ARTICLE 18 SPECIAL PAY PRACTICES 18.1 MEDIC DIFFERENTIAL 18.1.1 An employee certified as an EMT-P (Paramedic) shall receive a monthly differential as follows: $ 450/month 18.1.2 The City may require any employee to attend EMT-P training. 18.2 CALL -OUT PAY 18.2.1 It is agreed that the CITY will guarantee a minimum of two hours pay, computed at straight hourly rates, for any MBFF member called back to duty from an off -duty status. 18.2.2 If an employee is railed to return to duty, such call -out shall not be canceled until the employee reports to the fire station.. To be eligible to receive the minimum, the employee must report to the fire station. 18.2.3If an employee is on -duty and held beyond the end of the work period, time worked will be paid as actual hours worked under Section 10.4 of this agreement. Such holdover shall not qualify for Call -out Pay. 18.3 WORKING OUT -OF -CLASS Employees may be worked on an out -of -class assignment only as provided in the Personnel Rules and Regulations of the City of Morro Bay, except as provided herein below: 18.3.1 Employees shall receive an additional 5% compensation for out -of -class assignments that last 24 consecutive hours. Such additional 5% pay shall start on the 25th hour retroactive to the first hour of the out -of -class Mono Bay Firefighters Unit 20122013-20t32014 MOU Page 15 E • • C J 0 assignment. Such additional compensation shall be paid during the first six (6) months of the out-of-dass assignment. 18.3.2 If the assignment is extended by 6 months, then starting on the first day of the extension: 18.3.2.1 the employee shall continue to receive the 5% compensation if the out -of -class assignment is required to fill an absence due to an employee who is out on 4850 leave. 18.3 2.2 the employee shall receive an additional 5% for a total of 10% additional compensation if the out -of -class assignment is required to fill a vacant position. 18.3.3 An employee placed in an out -of -class assignment will not be taken off that assignment for the sole purpose of avoiding the payment provided above. 18.3.4 Whenever possible, City intends to fill vacancies with qualified employees. 18.4 STANDBY PAY Compensation for standby duty for acting Fire Chief position shall be paid two (2) hours of overtime pay Per full 24 hour shift. ARTICLE 19 HEALTH AND SAFETY ARTICLE 19.1 Management shall provide and maintain safe and healthy work facilities and equipment. 19.2 Safety and health conditions in employment in the City of Morro Bay are subject to the provisions of State and Federal legislation which regulates the health environment and safety conditions of the work place. 19.3 A Citywide Safety/Loss Control Committee shall be established and shall review accidents. review alleged safety deficiencies, and recommend safety training and safety equipment. The MBFF may appoint one unit representative to serve on the committee. If the committee meets during the designated employee's normal working hours. the employee shall receive paid release time to attend the meeting 19.4 If an employee becomes alerted to an unsafe condition or health hazard, he/she shall report such condition to his/her immediate supervisor. If such conditions cannot be satisfactorily remedied by the immediate supervisor, an employee has the right to submit the matter either personally or through the steward to higher Department Head or designated safety representative. On any matter of safety MOM Bay F,®hghte Unit risk: G':eTs24'=MOV Page 16 ranrMeC: rare: (D~) M rawrNbO: rare: (MaR) Mal not resolved, after proceeding through the above process, consultation will take place between management and the MBFF if requested. 19.5 A first aid kit shall be furnished and maintained at work facilities readily and conveniently accessible to MBFF employees. 19.6 Management agrees to provide to employees who are exposed to potentially toxic agents or toxic materials the appropriate medical services at no cost to the employee. 19.7 Any safety equipment required by the CITY shall be furnished by the CITY. ARTICLE 20 MINIMUM STAFFING 20.1 CITY agrees to provide minimum staffing of three full-time personnel except in cases of emergency as determined by the Fire Chief. a. Exception: For brief transitional periods lasting 10 hours or less, minimum staffing may be allowed to drop to a minimum of two with the Chiefs approval. 20.2 The 2004 Morro Bay Fire Department 5-Year Strategic Plan recommended that the City of Morro Bay provide 4-person daily staffing in the Fire Department. a. The City and MBFFA agree that 4-person full-time minimum staffing will be provided in the MOU when a second fire station or second company is staffed and operational. The 4-person minimum refers to the total on -duty staffing of full-time firefighters in the City of Morro Bay. b. The City currently staffs a single, two-piece suppression company consisting of an engine and a rescue. This response configuration is not affected by item a. above. 20.3 The City agrees to cap the total number of part-time, unrepresented firefighters to one per scheduled 24 hour shift. a. Exception: In an emergency and for mutual aid response coverage, the City may have more than one reserve firefighter working 24-hour shifts provided the City is meeting its minimum staffing requirements. 203 1 For as there are seven filled Firefighter/Engineer positions within the Department, the least senior qualified person will be assigned to vacation relief. In the event of retirement, resignation or termination, vacation relief individual will have the first right of refusal to that open position. If the seventh Firefighter/Engineer position is eliminated, there will be no vacation relief position. i Morro Bay Firefighters Unit 204220140431074 MOU Page 1 0 0 • 0 20.3.2 The City will post a work schedule every 30 days for the vacation relief position and provide 96 hours notice prior to making schedule changes. There will be no more than two schedule changes within each 30 day schedule. 20 4 jf the City agrees to an economic package substantively different from the Fire Fighter%settlement for the period of July 1. 2013 through June 30. 2014, it will reopen negotiations with the Fire Fighters. ARTICLE 21 PERSONNEL RULES Parties recognize the applicability and agreement with the Personnel Rules utilized by the City for all employees. From time to time, the Personnel Rules may be amended and the City will offer the opportunity to meet and confer on those items within the scope of bargaining. Nothing in this article shall make the City s Personnel Rules subject to the Grievance Procedure. ARTICLE 22 LAYOFFS The parties agree to use the layoff procedure as set forth in 2.32.120 of the City of Morro Bay Municipal Code. For purposes of workforce reductions as outlined by the City's personnel rules and regulations, shifts worked by part-time unrepresented employees will be eliminated prior to a reduction in full-time MOU represented personnel. ARTICLE 23 PROCESSING OF FORMAL GRIEVANCES 23.1 The MBFF agrees that whenever investigation or processing of a grievance is to be transacted during working hours, only the amount of time necessary to bring about a prompt disposition of the matter will be utilized. It is further agreed that the time spent on an investigation and processing of grievances will not interfere with the normal operation of the department CITY agrees to provide a reasonable amount of time for the investigation and the processing of a grievance, but by so agreeing does not imply that the processing or investigation of a grievance shall take priority over normal functions of the department. 23.2 CITY further agrees that any payment of overtime arising because of MBFF personnel's involvement in grievance investigation or processing shall not be authorized. Time spent on the investigation and processing of grievances will be recorded on a form provided by CITY. Stewards will be permitted reasonable time -off with pay for the investigation and processing of grievances provided, however, stewards shall first obtain permission from the department head and/or his/her designee and inform him/her of the nature of his/her business. CITY shall grant such permission promptly unless such absence would cause an undue interruption of work or would require the CITY to pay overtime in order to maintain the normal operation of the department. Mono Bay F,Mfghtem Und =- MOU Page Is iarmalfeA: IMm.Len 0" FonnalEeG: Fart. 12 M farnrteed: FqK: 12 Pt 23.3 Upon entering the work location, the steward shall inform the department head and supervisor of the nature of hisfher business. Permission to leave a job will be granted to the employee involved unless such absence would cause an interruption of work. If the employee cannot be made available, the steward will seek an alternate time for employee availability with the department head or supervisor. 23.4 It is agreed that in some instances the investigation and processing of a grievance may be accomplished on the employee's time. This agreement is in recognition of the mutual sharing of costs involved in the handling of employee - initiated actions. 23.5 Procedures shall be in accordance with Resolution No. 46-74 and any amendments thereto. ARTICLE 24 ELIMINATION OF FIRE SERVICE If the fire service function of the City of Morro Bay is merged into another agency, or if another agency assumes said function, then prior to such action, the City shall meet and confer with MBFF concerning the effects of such action. ARTICLE 25 NO STRIKE, NO LOCK -OUT 25.1 During the life of this agreement, the City will not lock out any employees nor will the MBFF cause, authorize, advise or encourage any interruption of work or any other concerted refusal to render services or to work, including overtime or any other curtailment or restriction of work at any time during the term of this Agreement. The term "interruption of work" shall mean any work stoppage or strike (including economic and unfair labor practice strikes) or any intentional slow down of work. 25.2 There shall be no refusal to work on, handle or produce any materials or equipment because of a labor dispute. 25.3 Any employee engaging in any action prohibited by this Article shall be subject to immediate discharge or such other discipline as the CITY may assess. Such discharge or discipline shall not be reviewable through the Grievance Procedure. ARTICLE 26 FULL UNDERSTANDING. MODIFICATION. WAIVER 26.1 This Agreement sets forth the full and entire understanding of the parties regarding the matters set forth herein, and any other prior or existing understanding or agreements by the parties, whether formal or informal, regarding any such matters are hereby superseded or terminated in their entirety. Morro Bay Firefighters Unif v,&QZQLJ4&*32QJAMOU Page 19 E • 0 26.2 It is agreed and understood that each party hereto voluntarily and unqualifiedly waives its right to negotiate, and agrees that the other party shall not be required to negotiate, with respect to any matter covered herein. 26.3 No agreement, alteration, understanding, variation, waiver. or modification of any of the terms or provisions contained herein shall in any manner be binding upon the parties hereto unless made and executed in writing by all parties hereto, and I required, approved by the CITY and ratified by the membership of the MBFF. 26.4 The waiver of any breach of any term, or condition of this Agreement by either party shall not constitute a precedent in the future enforcement of all its terms and provisions. ARTICLE 27 SEVERABILITY If any provision(s) are held to be contrary to law by a court of competent jurisdiction.. such provisions will not be deemed valid and subsisting except to the extent permitted by law, but all other provisions will continue in full force and effect. Date. • MORRO BAY FIRE FIGHTERS George Rees jedd-Galley Jeff SimpsenMichael Talmadge Date CITY OF MORRO BAY William Avery. Chief Negotiator Andrea Lueker. City Manager Susan Slayton. Admin. Svcs. Director Marc Bay Filel$ghtM UM 20 22Q JQQ�2_Q1< MOU 0 Page 20 RESOLUTION NO.54-13 RESOLUTION OF THE CITY COUNCIL ® OF THE CITY OF MORRO BAY, CALIFORNIA APPROVING ADJUSTMENTS TO LEASE SITE MAPS, LEASE SITES 93W-95W and 96W THE CITY COUNCIL City of Morro Bay, California WHEREAS. on December 9. 1974_ the City Council approved the "Lease Site Maps` dated November 1974: and WHEREAS; the "Lease Site Maps' have been revised at various times by the Citv Council of Morro Bay to reflect new lease sites and adjustments in lease site boundaries: and WHEREAS. the Boundary Adjustments to which the State Lands Commission or a local agencv holding a trust --rant of tide and submerged lands is a party is exempt from the "Subdivision Map Act' requirements under California Government Code Section 66412(e); and NVHEREAS. City desires to adjust the boundaries to accommodate uses authorized by the modification to UPO-342 on November 12, 2013 for existing and future leases_: and ' ® WHEREAS, the said map, labeled as Exhibit A. clearly_ identifies each lease site and its boundaries for easy reference and access: and WHEREAS. an area of 640 square feet, more or less, is removed from Lease Site 96W and added to the area of Lease Sites 93W-95W. along with an additional 1.764 square feet, more or less, of new lease area as shown on attached "Exhibit A". NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California does hereby adjust the boundaries of lease sites: 93W-95W and 96W, and herby designates the attached "Exhibit A -Revision to Lease Site Maps' as the official reference document for said lease sites. PASSED AND ADOPTED by the Citv Council of the Citv of Morro Bav at a regular meeting thereof held on the 12a' day of November, 201 3 by the following vote: AYES: Irons. C. Johnson, N. Johnson_. Smukler NOES: None ABSENT: Lease ® J ie L. Irons. Mayo ATTEST: JaiVie Boucher. City Clerk EXHIBIT "A" p�ER0 pQOP`D OZ°W g3`5 N w J nn O J w- 0 II �r o ao ff rM II I r�c z � \f r)'� W �?a II J ��li ��� W : w 1 3 , �I II m LAND LEASE I m MORROUSLY ADJUSTED PERCITI I I CIL SITE 96 I RESOLUTION #42-13 I I I II �)�6 I LAND LEASE II r( " I � SITES 93, 94 & 95 I m I I I I/ II I SHORE CONTROL LINE w I WATER I� LEASE I N II I SITE 96W o w N I N o O' 1 0 10 20 40 60 I I N N14'14'41"W I I 40.00' N I I I YDRME�RI `r I GRAPHIC SCALE IN FEET I I N I P7N. -0o N z I — — FORMER WATER LEASE LINE — I ------f — - —--------- b I N13'30'46' W 93.79'M w I n z J FORMER LEASE LINE I w a PREVIOUSLY ADJUSTED PER 1 MORRO BAY CITY COUNCIL 3 RESOLUTION #42-13 ' N Z I WATER LEASE I j SITES 1 93W, 94W & 95W I �I I --------------1-----L N13'30'46"W 135.07' ��MICHAEL B. STANTON, PLS 5702 EXHIBIT 'A' 3s63 SUELDO ST. UNIT 0 REVISION TO LEASE SITE MAP SAN L.UIS OBISPO, CA 93401 LEASE SITES 93W-95W AND • 805-594-1960 Q 9VW JOB NO. 11 N RESOLUTION NO. 53-13 ® A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA AMENDING SECTION 2.2 OF THE CITY COUNCIL POLICIES AND PROCEDURES MANUAL REGARDING RETIREMENT, MEDICAL, DENTAL, VISION, AND LIFE INSURANCE UNSPENT DOLLARS THE CITY COUNCIL City of Morro Bay, California WHEREAS, the Council Policies and Procedures Manual for the City of Morro Bay is a combination of City Council actions, policies, references, and information regarding the Citv_ Council; and WHEREAS, to ensure that all Councilmembers are familiar with and understand the City_ of Morro Bays philosophies and policies regarding serving on the City Council, the City of Morro Bay adopted Resolution 46-02 and its Council Policies and Procedures Manual on August 12. 2002; and WHEREAS, the Citv desires to amend certain Sections the Council Policies and Procedures Manual related to Retirement. Medical. Dental. Vision and Life Insurance, as follows: 2.2 RETIREMENT, MEDICAL, DENTAL, VISION, AND LIFE INSURANCE The Mayor and Council Members are required to participate in P.A.R.S. retirement. The City ® shall pay a contribution to P.A.R.S. equal to 1% of salary. The City shall pay. in full. the cost of the Mayor's and Council Members' participation in lowest cost HMO or PPO medical plan (self -only), dental, vision, and life insurance. . NOW, THEREFORE, be it resolved that the Citv Council of the Citv of Morro Bav does hereby amend certain Sections of the Council Policies and Procedures Manual to reflect the above amendments to be effective January 1. 2014. PASSED AND ADOPTED by the Citv Council. Citv of Morro Bay at a regular meeting thereof held on the 12th day of November, 2013 by the following vote: AYES: Irons. C. Johnson_. N. Johnson, Lease, Smukler NOES: None ABSENT: None ABSTAIN: None JrHE L. IRONS, Mayor ATTEST: J , IIE BOUCHER, City Clerk RESOLUTION NO. 50-13 ® RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA DETERMINING THAT ISSUANCE OF AN ABC PEWMIT FOR AN OFF -SALE BEER AND WINB CONVENIENCE STORE LOCATED AT 845 EMBARCADERO, SUITE D WOULD SERVE AS A PUBLIC CONVENIENCE OR NECESSITY THE CITY COUNCIL CITY OF MORRO BAY, CALIFORNIA WHEREAS. Thomas Wayne Pauley and Joli Christine Truelson applied for a Department of Alcoholic Beverage Control Permit for an Off -Sale Beer and Wine Convenience Store located at 845 Embarcadero Suite D: and. WHEREAS, the permit is automatically denied by the Department of Alcoholic Beverage Control due to an `'undue concentration of alcohol licenses' in this census tract: and. WHEREAS. in order for the Department of Alcoholic Beverage Control to issue the license, the local governing body must determine that the public convenience or necessity would be served by issuance of the license and pass a resolution stating such: and. WHEREAS. after review by the Police Department there are no significant concerns in regard ®" to the opening of an Off -Sale Beer and Wine Convenience Store at this location. NOW, THEREFORE, BE IT RESOLVED by the City Council of the Citv of Morro Bay. California, that the public convenience or necessity will be served by issuance of a license from the Department of Alcoholic Beverage Control for an Off -Sale Beer and Wine Convenience Store at 845 Embarcadero Suite D. BE IT FURTHER RESOLVED by the City Council of the Citv of Morro Bay. California, that this action supports new business in Morro Bay and is in conformance with the goals set by the Morro Bay City Council to "develop ways to be attractive to new businesses'. PASSED AND ADOPTED by the Citv Council of the Citv of Morro Ba_v at a regular meeting thereof held on the 22nd day of October. 2013 on the following vote: AYES: IRONS. C. JOHNSON. S\,FUKLER NOES: N. JOHNSON ABSENT: ABSTAfN: LEAGE _ %t J IE L. IRONS. , favor ATTEST:. - .. JAMIE MUCHER. City Clerk RESOLUTION NO. 51-13 ® RESOLUTION OF THE CITY OF MORRO BAY RELATING TO THE CLASSIFICATION, CODIPENSATION AND TERAIS OF EMPLOYMENT OF MISCELLANEOUS AND SAFETY EMPLOYEES REPRESENTED BY THE SERVICE EMPLOYEES INTERNATIONAL UNION, LOCAL 620 (SEIU) THE CITY COUNCIL Cite 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 SEIU, Local 620, representing the Miscellaneous and Safety employees; and WHEREAS. the meetings between the SEIU. Local 620. and the City have resulted in a 11 mutual agreement and understanding to recommend that the employees represented by SEIU, Local 620, accept all of the terms and conditions, as set forth in a Memorandum of understanding_ an agreement attached and made a part of this Resolution herewith; and WHEREAS. the City now desires to provide said salaries. benefits and conditions to said Miscellaneous and Safety employees of the City of Morro Bay. ®NOW, THEREFORE, BE IT RESOLVED by the Citv Council of the City of Morro Bar, that it hereby approves and adopts, in full. the Memorandum of Understanding for the period July 1, 2013 through June 30, 2014, as attached and made a part of this Resolution. BE IT FURTHER RESOLVED by the City Council of the City of Morro Bay that the City Manager is hereby authorized to execute the Memorandum of Understanding on behalf of the City. PASSED AND ADOPTED by the Citv Council of the Citv of Morro Bav at a meeting thereof held this 22°d day of October. 2013 by the following vote: AYES: Irons. C. Johnson. N. Johnson. Lease. Smukler NOES: None ABSENT: None J HE L. IRONS. Mayor ATTEST: ® jANLt BOUCHER. City Clerk ® RESOLUTION NO. 52-13 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NIORRO BAY, CALIFORNIA APPROVING THE REAL ESTATE AGREEMENT FOR THE SALE OF CITY -OWNED VACANT LOT PROPERTY ON THE CORNER OF CORAL AVENUE AND SAN JACINTO STREET WITH A STREET ADDRESS OF 2783 CORAL AVENUE IN MORRO BAY, CALIFORNIA THE CITY COUNCIL City of Morro Bay, California WTIEREAS, the Citv obtained ownership of the vacant lot real property located at the South East Comer (SEC) Coral/San Jacinto Street. Lot 124. Tract 1996 with a street address of 2783 Coral Avenue, Morro Bay, California in September 1996; and WHEREAS; said property was dedicated to the City as a possible site for a fire substation. Subsequently, the City has determined that the property at the SEC Coral Avenue and San Jacinto Street. Lot 124. Tract 1996 is not suited for a fire substation and better locations exist for a fire substation: and R'HEREAS, pursuant to Government Code section 37350. the City wishes to sell City - owned real property located at the SEC Coral/San Jacinto Street. Lot 124. Tract 1996 with a ® street address of 2783 Coral Avenue. Morro Bay. California for the common benefit of its citizens: and WHEREAS, pursuant to Government Code section 37421, and Resolution No. 30-05. the City notified its citizens of its intention to sell City -owned properties located at the SEC Coral/San Jacinto Street, Lot 124, Tract 1996 with a street address of 2783 Coral Avenue, Morro Bay, California: and WHEREAS, the City designated the real properties at the SEC Coral/San Jacinto Street. Lot 124. Tract 1996 with a street address of 2783 Coral Avenue. Morro Bay. California for sale at the Open Session Council Meeting on July 11, 2005 and held a public hearing on July 25, 2005. and after receiving no protests passed and adopted Resolution 30-05 by a unanimous vote; and WHEREAS. the City has negotiated the attached Real Estate Agreement with the Buver of the propem- for S935,000.00. 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 SEC Coral Ave. and San Jacinto Street, Lot 124. Tract 1996 with a street address of 2783 Coral Avenue. Morro Bay. California and authorizes the City Manager to execute any documents necessary to consummate the sale of the property. E E PASSED AND ADOPTED by the City Council. City of Morro Bay at a regular meeting thereof held on the 22nd day of October 2013: by the following vote: AYES: IRONS, C. JOHNSON, LEAGE, SMUKLER NOES: N. JOHNSON ABSENT: J IE L. IRONS_. Mav r ATTEST: c J.A E BOUCHER: City Clerk DocuSign Envelope ID: F08D726C-E418A6F0-A_ ,-DB33DFF6AC7A CAL I F O R N I A DISCLOSURE REGARDING ®�. kv ASSOCIATION REAL ESTATE AGENCY RELATIONSHIP .® (Listing Firm to Seller) ©® OF R E A L T O R S t (As required by the Civil Code) (CA.R. Form AD, Revised 11/12) ❑ (If ;necked) This forth is being provided in connection with a transaction for a leaseholder interest in a dwelling exceeding one year as per Civil Code section 2079.13@ and M. When you enter into a discussion with a real estate agent regarding a real estate transaction, you should from the outset understand what type of agency relationship or representation you wish to have with the agent in the transaction. SELLER'S AGENT A Sellers agent under a listing agreement with the Seller acts as the agent for the Seller only. A Sellers agent or a subagent of that agent has the following affirmative obligations: To the Seiler. A Fiduciary duty of utmost rare, integrity, honesty and loyalty in dealings with the Seller. To the Buyer and the Seller. (a) Diligent exercise of reasonable skill and rare in performance of the agent's duties. (b) A duty of honest and air dealing and good faith. (c) A duty to disclose all farts known to the agent materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the parties. An agent is not c6ligated to reveal to either party any confidential information obtained from the other oany that does not involve the affinnative duties set forth above. BUYER'S AGENT A selling agent an, with a Buyers consent, agree to act as agent for the Buyer only. In these situations, the agent is not the Sellers agent, even 8 by agreement the agent, may receive compensation for services rendered, either in full or in part from the Seller. An agent acting only for a Buyer has the following affirmative obligations: To the Buyer. A fiauciary duty of utmost are, integrity, honesty and loyally in dealings win the Buyer. To the Buyer and the Seller (a) Diligent exercise of reasonable skill and are in performance of the agent's duties. (b) A duty of honest and fair dealing and good faith. (c) A duty to disdose all acts knowntothe agent materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the parties. " An agent is not obligated to reveal to either party any confidential imor tauon obtained from the other party that does not involve the affirmative duties set forth above. _ AGENT REPRESENTING BOTH SELLER ANDBUYER - - - A real estate agent, either acting directly or through one or more associate fidensees, an legally be,the agent ofboth the 'Seiler and the Buyer in a transaction, but only with the knowledoe and cinsent of both the Seiler and the Bwer. - - - - "- In a dual agency situation, the agent has the following affirmative obligations to both the Seller and the Buyer. (a) A fiduciary duty of utmost are, integrity, honesty and loyally th the dealings with either the Seller or the Buyer. (b) Other duties to the Seiler and the Buyer as stated above in their respective sections. In representing both Seller and Buyer, the agent may not, without the express permission of the resoective party, disclose to the other parry that the Seller will ac:ept a once less than the fisting once or that the Buyer will Day a once greater than the once offered. The above awes of the agent in a real estate transaction de not relieve a Seiler or Buyer from the responsibility to protect his or her own interests. You should carefully read all agreements to assure that they adeauatey, express your understanding of the transaction. A real estate agent is a person qualified to advise aoout real estate. If legal or tax advice is desired, consult a competent pmfessional. Throughout your real progeny transaction you may receive more than one disclosure form, depending uoon the number of agents assisting in the trznsacuon. The law requires each agent with whom you have more than a casual relationship to present you with this disclosure form. You should read its contents each time it is presented to you, considering the relationship between you and the real estate agent in your soecific transaction. This disclosure form includes the provisions of Sections 2079.13 to 2079.24, inclusive, of the Civil Code set forth on page 2. Read it carefully. IAVE ACKNOWLEDGE RECEIPT OF A COPY OF THIS DISCLOSURE AND THE PORTIONS OF THE CIVIL CODE PRINTED ON THE BACK (OR A SEPARATE PAGE. l) J L / 1'- �/l/ - 4 �,7 ❑ Buyer ® Seller [Ier Landlord ❑Tenant 3 t Date Cd cy c_ Horrc Bay / ❑ Buyer El Seiler ❑Landlord ❑Tenant Date Agent 14 DREUc#Ot4t93a9 By �ome�mnr Real Estate Broker (Firm) �*� m•...o ORE Lic. # 0:412309 Date 5/28/2013 t fSalesoerson or Broker -Associate) Frank w- C_anc Agency Disclosure Comofiance (Civil Code §2079.14): • When the lisung brokerage company also represents Buyer/Tenam The Listing Agent shall have one AD form signed by SegerlLandlord and a ei ferem AD to= signed by Buyerlrenam. • Men Seiler/Landlord and BuyedTenam are represented by different brokerage companies: O the Listing Agent shall have one AD arm signed by Sener/landlord and a the BuyersiTenant's Agent shall have one AD form signed by BwerfTenant and either that same or a different AD form oresented to Sellen'Landlord for signature onor to oresenauon of me offer. If the same form is used, Seller may sign here: (SELLERILANDLORD: 00 NOT SIGN HERE) (SELLERA..ANDLORD: DO NOT SIGN HERE) Sellerrtandktm Date Seller/Landlom Dare The colayngm laws of the United Sates (Title 17 U.S. Code) fomid the unauthorized momducuon of mis forth, or any Dortion thereof, gy DhC',O=Dy machine or any other means, including facsimile or amoumnzed formats. Copyngnt 0 1991-2010, CALIFORNIA ASSOCIATION OF REALTORSO, INC. ALL RIGHTS RESERVED. ® Reviewed by _ Date AD REVISED 11/72 (PAGE 1 OF 2) DISCLOSURE REGARDING.REAL ESTATE AGENCY RELATIONSHIP (AD PAGE 1 OF 2) Agent: Frank Cfano - Phone: (805)771-9779 Fax: (805)771-9889 Prepared using zipForrrtO software 8rgker. Ciano Real Estate 360 Morro Bay Boulevard Morro Bay, CA 93442 DocuSign Envelope ID: F060726C-E418-46F0-A__, DB33DFF6AC7A CIVIL CODE SECTIONS 2079.0 (2079.16 APPEARS ON THE FRONT) 2079.13 As used in Sections 2079.14 to 2079.24, inclusive, the following terms have the following meanings: (a) "Agent" means a person acting under provisions of title 9 (commencing with Section 2295) in a real property transaction, and includes a person who is licensed as a real estate broker under Chapter 3 (commencing with Section 10130) of Part 1 of Division 4 of the Business and Professions Code, and under whose license a listing is executed or an offer to purchase is obtained. (b) "Associate licensee" means a person who is licensed as a real estate broker or salesperson under Chapter 3 (commencing with Section 10130) of Part 1 of Division 4,of the Business and Professions Code and who is either licensed under a broker or has entered into a written contract with a broker to act as the broker's agent in connection with acts requiring a real estate license and to function under the brokers supervision in the capacity of an associate licensee. The agent in the real property transaction bears responsibility for his or her associate licensees who perform as agents of the agent. Men an associate licensee owes a duty to any principal, or to any buyer or seller who is not a principal, in a real property transaction, that duty is equivalent to the duty owed to that party by the broker for whom the associate licensee functions. (c) 'Buyer' means a transferee in a real property transaction, and includes a person who executes an offer to purchase real property from a seller through an agent, or who seeks the services of an agent in more than a casual, transitory, or preliminary manner, with the object of entering into a real property transaction. "Buyer' includes vendee or lessee. (d) "Dual agent" means an agent acting, either directly or through an associate licensee, as agent for both the seller and the buyer in a real property transaction. (e) "Listing agreement" means a contract between an owner of real property and an agent, by which the agent has been authorized to sell the real property or to find or obtain a buyer. (1) "Listing agent" means a person who has obtained a listing of real property to act as an agent for compensation. (g) "Listing price" is the amount expressed in dollars specified in the listing for which the seller is willing to sell the real property through the listing agent. (h) 'Offering price" is the amount expressed in dollars specified in an offer to purchase for which the buyer is willing to buy the real property. (i) "Offer to purchase' means a written contract executed by a buyer acting through a selling agent which becomes the contract for the sale of the real property upon acceptance by the seller. 6) "Real property" means any estate specified by subdivision (1) or (2) of Section 761 in property which constitutes or is improved with one to four dwelling units, any leasehold in this type of property exceeding one years duration, and mobile homes, when offered for sale or sold through an agent pursuant to the authority contained in Section 10131.E of the Business and Professions Code. (it) "Real property transaction" means a transaction for the sale of real property in which an agent is employed by one or more of the principals to act in that transaction, and includes a listing or an offer to purchase. (1) "Sell," "sale," or "sold" refers to a transaction for the transfer of real property from the seller to the buyer, and includes exchanges of real property between the seller and buyer, transactions for the creation of a real property sales contract within the meaning of Section 2985, and transactions for the creation of a leasehold exceeding one years duration. (m) "Seller' means the transferor in a real property transaction, and includes an owner who lists real property with an agent, whether or not a transfer results, or who receives an offer to purchase real property of which he or she is the owner from an agent on behalf of another. "Seller' includes both a vendor and a lessor. (n) "Selling agent" means a listing agent who acts alone, or an agent who acts in cooperation with a listing agent, and who sells or finds and obtains a buyer for the real property, or an agent who locates property for a buyer or who finds a buyer for a property for which no listing exists and presents an offer to purchase to the seller. (o) 'Subagent" means a person to whom an agent delegates agency powers as provided in Article 5 (commencing with Section 2349) of Chapter 1 of Title 9. However, "subagent" does not include an associate licensee who is acting under the supervision of an agent in a real property transaction. 2079.14 Listing agents and selling agents shall provide the seller and buyer in a real property transaction with a copy of the disclosure form specified in Section 2079.16, and, except as provided in subdivision (c), shall obtain a signed acknowledgement of receipt from that seller or buyer, except as provided in this section or Section 2079.15, as follows: (a) The listing agent, if any, shall provide the disclosure form to the seller prior to entering into the listing agreement. (b) The selling agent shall provide the disclosure form to the seller as soon as practicable prior to presenting the seller with an offer to purchase, deal on a face-to-face basis with the seller, the disclosure form prepared byithe-selling agent may=be burnished tome seller (and acknowledgement of receipt obtained for the selling agent from the seller) by theaislin9 agent, or -the selling agent may deliver the disclosure form by. certified mail addressed to the seller at his or her last known address, in -which case no signed.acknowledgement,of,receipt,is.required. (d).The selling,agent shall provide the disclosure form to the buyer as soon as practicable pdor'to execution of the'buye's offer to purchase," except that if the offer to purchase is not prepared by the selling agent, the selling agent shall present the disclosure farm to the buyer not later than the next business day after the selling agent receives the offer to purchase from the buyer. - 2079.15 In any circumstance in which the seller or buyer refuses to sign an acknowledgement of receipt pursuant to Section 2079.14, the agent, or an associate licensee acting for an agent, shall set forth, sign, and date a written declaration of the facts of the refusal. 2079.16 Reproduced on Page 1 of this AD form. 2079.17 (a) As soon as practicable, the selling agent shall disclose to the buyer and seller whether the selling agent is acting in the real property transaction exclusively as the buyers agent, exclusively as the sellers agent, or as a dual agent representing both the buyer and the seller. This relationship shall be confirmed in the contract to purchase and sell real property or in a separate writing executed or acknowledged by the seller, the buyer, and the selling agent poor to or coincident with execution of that contract by the buyer and the seller, respectively. (b) As soon as practicable, the listing agent shall disclose to the seller whether the listing agent is acting in the real property transaction exclusively as the sellers agent, or as a dual agent representing both the buyer and seller. This relationship shall be confirmed in the contract to purchase and sell real property or in a separate writing executed or acknowledged by the seller and the listing agent prior to or coincident with the execution of that contract by the seller. (c) The confirmation required by subdivisions (a) and (b) shall be in the following form. (DO NOT COMPLETE, SAMPLE ONLY) is the agent of (check one): ❑ the seller exclusively; or ❑ both the buyer and seller (Name of Listing Agent) - (DO NOT COMPLETE, SAMPLE ONLY) is the agent of (check one): ❑ the buyer exclusively; or ❑ the seller exclusively, or (Name of Selling Agent if not the same as the Listing Agent) ❑ both the buyer and seller. (d) The disclosures and confirmation required by this section shall be in addition to the disclosure required by Section 2079.14. 2079.18 No selling agent in a real property transaction may act as an agent for the buyer only, when the selling agent is also acting as the listing agent in the transaction. 2079.19 The payment of compensation or the obligation to pay compensation to an agent by the seller or buyer is not necessarily determinative of a particular agency relationship between an agent and the seller or buyer. A listing agent and a selling agent may agree to share any compensation or commission paid, or any right to any compensation or commission for which an obligation arises as the result of a real estate transaction, and the terms of any such agreement shall not necessarily be determinative of a particular relationship. 2079.20 Nothing in this article prevents an agent from selecting, as a condition of the agent's employment, a specific form of agency relationship not specifically prohibited by this article if the requirements of Section 2079.14 and Section 2079.17 are complied with. 2079.21 A dual agent shall not disclose to the buyer that the seller is willing to sell the property at a price less than the listing price, without the express written consent of the seller. A dual agent shall not disdose to the seller that the buyer is willing to pay a price greater than the offering price, without the express written consent of the buyer. This section does not alter in any way the duty or responsibility of a dual agent to any principal with respect to confidential information other than price. 2079.22 Nothing in this article precludes a listing agent from also being a selling agent, and the combination of these functions in one agent does not, of itself, make that agent a dual agent. 2079.23 A contract between the principal and agent may be modified or altered to change the agency relationship at any time before the performance of the act which is the object of the agency with the written consent of the parties to the agency relationship. 2079.24 Nothing in this article shall be construed to either diminish the duty of disclosure owed buyers and sellers by agents and their associate licensees, subagents, and employees or to relieve agents and their associate licensees, subagents, and employees from liability for their conduct in connection with acts governed by this article or for any breach of a fiduciary duty or a duty of disclosure. Buyers Initials ( ) ( ) Sellers Initials ( ) ( ) Published and BUSINESS S - 16f7L REAL ESTATEEhe CALIFORNIASERVICES, INC. a subsidiary o/the CAFOASSOCIATION OF REAL70RS& 525 South Vogt Avenue, Los Angeles, California 90020 AD REVISED 11112 PAGE 2 OF 2 - Reviewed by _ Date 'r^u"temsK DISCLOSURE REGARDING REAL ESTATE AGENCY RELATIONSHIP (AD PAGE.2 OF 2) City of Morro DocuSign Envelope ID: F08D726C-E418-46F0A--.,-DB33DFF6AC7A ®, C A L I F O R N I A VACANT LAND LISTING AGREEMENT w ASS0C IAT I0N �0® OF R E A L T O R S S (C.A.R. Form VLL, 4113) 1. EXCLUSIVE AUTHORIZATION: City of Morro Bay ("Owner") hereby employs and grants Ciano Real Estate C'Broker') beginning (date) June 1, 2023 and ending at 11:59 P.M. on (date) June 1, 2014 ("Listing Period") the exclusive ano irrevocable right to: 0 SELL, ❑ LEASE, ❑ EACHANGE, ❑ OPTION, or n OTHER the real property in the City of Morro Bay , County of San Luis Obispo , California, Assessor's Parcel No.: 065-386-015 , described as: 2783 Coral Ave. ("Property"). 2. ITEMS EXCLUDED ANDINCLUDED: Unless otherwise specified In an agreement between Owner and transferee, all fixtures and fittings that are attached to the Property are included, and personal property items are excluded from the price. ADDITIONAL ITEMS EXCLUDED: ADDITIONAL ITEMS INCLUDED: Owner intends that the above items be excluded or included in listing the Property, but understands that: (i) the Agreement between owner and transferee supersedes any intention expressed above and will ultimately determine which items are excluded and included in the transaction; and (i) Broker is not responsible for and does not guarantee that the above exclusions and/or inclusions will be in the Agreement between Owner and transferee. 3. LISTING PRICE AND TERMS: A. The listing price shall be One Million, One Hun -red Forty -Nine Thousand Dollars (5 1 , 149, 000. 00 ). B. Additional Terms: 4. COMPENSATION TO BROKER: Notice: The amount or rate of real estate commissions is not fixed by law. They are set by each Broker individually and may be negotiable between Owner and Broker (real estate commissions include all compensationand fees -to Broker). A. Owner agrees to pay to Broker as compensation for services irrespective. of agency relationshio(s): ® 3.500 percent of the listing price (or if an agreement is entered into, of the contract price), ❑ S - - - - - , OR Lj in accordance with Broker's attached schedule of compensation; as follows: ® (1) If during the Listing Period, or any extension, Broker, cooperating broker, Seller or any other person procures a ready, willing, and able buyer(s) whose offer to purchase the Property on any price and terms is accepted by Seller, provided the Buyer completes the transaction or is prevented from doing so by Seller. (Broker is entitled to compensation whether any escrow resulting from such offer closes during or after the expiration of the Listing Period, or any extension.) (2) If within 60 calendar days after the end of the Listing Period or any extension, Owner enters into a contract to sell, lease, exchange, option, convey or otherwise transfer the Property to anyone ("Prospective Transferee) or that person's related entity: (i) who physically entered and was shown the Property during the Listing Period, or any extension by Broker or a cooperating broker, or (ii) for whom Broker or any cooperating broker submitted to Owner a sinned, written offer to acquire, lease, exchange or obtain an option on the Property. Owner, however, shall have no obligation to Broker under this paragraph 4A(2) unless, not later than 3 calendar days after the end of the Listing Period or any extension thereof, Broker has given Owner a written notice of the names of such Prospective Transferees. (3) If, without Brokers prior written consent, the Property is withdrawn from sale, lease, exchange, option or other, as specified in paragraph 1, or is sold, conveyed, leased, rented, exchanged, optioned or otherwise transferred, or made unmarketable by a voluntary act of Owner during the Listing Period, or any extension thereof. B. If completion of the transaction is prevented by a party to the transaction other than Owner, then compensation due under paragraph 4A shall be payable only if and when Owner collects damages by suit, arbitration, settlement, or otherwise, and then in an amount equal to the lesser of one-half of the damages recovered or the above compensation, after first deducting title and escrow expenses and the expenses of collection, if any- C. In addition, Owner agrees to pay Broker. D. (1) Broker is authorized to cooperate and compensate brokers participating through the multiple listing service(s) ('MLS'): (i) by offering MLS brokers either: 0 1. 750 percent of the purchase price, or ❑ $ ; OR (ii) (f checked) ❑ as per Brokers policy. (2) Broker is authorized to cooperate and compensate brokers operating outside the MLS as per Brokers policy. E. Owner hereby irrevocably assigns to Broker the above compensation from Owners funds and proceeds in escrow. Broker may submit this Listing Agreement, as instructions to compensate Broker pursuant to paragraph 4A, to any escrow regarding the Property involving Owner and a buyer, transferee or Prospective Transferee. F. (1) Owner represents that Owner has not previously entered into a listing agreement with another broker regarding the Property, unless specified as follows: (2) Owner warrants that Owner has no obligation to pay compensation to any other broker regarding the Property unless the Property is transferred to any of the following Prospective Transferees: (3) If the Property is transferred to anyone listed above during the time Owner is obligated to compensate another broker. (i) Broker is not entitled to compensation under this Listing Agreement; and (ii) Broker is not obligated to represent Owner in such transaction. Owner acknowledge/ps� r�eael�pt of a copy of this page. 0 2013, CaBtomia Assodakion of REALTORSA, Inc. Ovmers Initials ( r 7 ) ( ) Reviewed oy _ Date VLL 4113 (PAGE 1 OF 4) eaukime VACANT LAND LISTING AGREEMENT (VLL PAGE 1 OF 4) aMRTWlr Agent: - Frank Ciano Phone: (805)771-9779 Fax: (805)771-9889 Prepared using zipFopn®software Broker: Ciano Real Estate 360 Morro Bay Boulevard Morro Bay, CA 93442 - DocuSign Envelope ID: F08D726C-E418-46F0-A_-..-DB33DFF6AC7A 2783 Coral Ave. Property Address: Morro Bay, Date: June 1, 2013 5. OWNERSHIP, TITLE AND AUTHORITY: Owner warrants that: (i) Owner is the owner of the Property; (ii) no other persons or entities have title to the Property, and (iii) Owner has the authority to both execute this Listing Agreement and transfer the Property. Exceptions to ownership, title and authority are as follows: 6. MULTIPLE LISTING SERVICE: All terms of the transaction, including financing, if applicable, will be provided to the selected MLS for publication, dissemination and use by persons and entities on terms approved by the MLS. Seller acknowledges that Broker is required to comply with all applicable MLS rules as a condition of entry of the listing into the MLS and Seller. authorizes Broker to comply with all applicable MLS rules. MLS rules require,that the listing sales price be reported to the MLS. MLS rules allow MLS data to be made available by the MLS to additional Intemet sites unless Broker gives the MLS instructions to the contrary. MLS rules - generally provide that residential real property and vacant lot listings be submitted to the MLS within 48 hours or some other period of time after all necessary signatures have been obtained on the listing agreement. However, Broker will not have to submit this listing to the MLS if, within that time, Broker submits to the MLS a form signed by Seller (C.A.R. Form SEL or the locally required form). Information that can be excluded: A. Internet Display: (1) Seller can instruct Broker to have the MLS not display the Property on the Internet. Seller understands that this would mean consumers searching for listings on the Intemet may not see information about the Property in response to their search; (2) Seller can instruct Broker to have the MLS not display the Property address on the Intemet. Seller understands that this would mean consumers searching for listings on the Intemet may not see the Property's address in response to their search. B. Features on MLS Participant and Subscriber Websites; (1) Seller can instruct Broker to advise the MLS that Seller does not want visitors to MLS Participant or Subscriber Websites that display the Property listing to have (i) the ability to write comments or reviews about the Property on those sites; or (it) the ability to hyperlink to another site containing such comments or reviews if the hypedink is in immediate conjunction with the Property. Seller understands (i) that this apt -out applies only to Websites of MLS Participants and Subscribers who are real estate broker and agent members of the MLS; (ii) that other Internet sites may or may not have the features set forth herein; and (iii) that neither Broker nor the MLS may have the ability to control or block such features on other Internet sites. (2) Seller can instruct Broker to advise the MLS that Seller does not. want. MLS Participantor Subscriber Websites that display the Property listing to operate (i) an:automated estimate of the market valrie :of the Property; or (ii)`havejthe ability to hypedink to another site containing such automated estimate of value if the,hypedink`is inn -immediate conjunction,with the Property. Seller understands (i) that this opt -out applies only to Websites of MLS Participants and Subscribers who are real estate brokers and agent members of the MLS; (ii) that other Internet sites may or may not have the features set forth herein; and (iii) that neither Broker nor the MLS may have the ability to control or block such features on other Internet sites. Seller acknowledges that for any of the above opt -out instructions to be effective, Seller must make them on a separate instruction to Broker signed by Seller (C.A.R. Form SEL or the locally required form). Information about this listing will be provided to the MLS of Broker's selection unless a form instructing Broker to withhold the listing from the MLS is attached to this listing Agreement. 7. OWNER REPRESENTATIONS: Owner represents that, unless otherwise specified in writing, Owner is unaware of: (i) any Notice of Default recorded against the Property; (ii) any delinquent amounts due under any loan secured by, or other obligation affecting, the Property; (iii) any bankruptcy, insolvency or similar proceeding affecting the Property; (iv) any litigation, arbitration, administrative action, government investigation, or other pending or threatened action that affects or may affect the Property or Owner's ability to transfer it; and (v). any current, pending or proposed special assessments affecting the Property. Owner shall promptly notify Broker in writing if Owner becomes aware of any of these items during the Listing Period or any extension thereof. 8. BROKER'S AND OWNER'S DUTIES: Broker agrees to exercise reasonable effort and due diligence to achieve the purposes of this Listing Agreement. Unless Owner gives Broker written instructions to the contrary, Broker is authorized to order reports and disclosures as appropriate or necessary, and advertise and market the Property in any method and medium, including the Internet, " selected by Broker, and, to the extent permitted by these media, inducing MILS, control the dissemination of the information submitted to any medium. Owner agrees to consider offers presented by Broker, and to act in good faith toward accomplishing the transfer of the Property by, among other things, making the Property available for showing at reasonable times and referring to Broker all inquiries of any party interested in the Property. Owner agrees to provide Broker and transferee(s) all written disclosures, as required by law. Owner further agrees to immediately disclose in writing any condition known to Owner that affects the Property, including, but not limited to, any past or current generation, storage, release, threatened release, disposal, and presence and location of asbestos, PCB transformers, petroleum products, flammable explosives, underground storage tanks and other hazardous, toxic or contaminated substances or conditions in, on, or about the Property. Owner shall maintain public liability and property damage insurance on the Property during the Listing Period or any extension. Owner waives all subrogation rights under any insurance against Broker, cooperating brokers or employees. Owner is responsible for determining at what price to list and transfer the Property. Owner further agrees to indemnify, defend and hold Broker harmless from all claims, disputes, litigation, judgments and attorney's fees arising from any incorrect information supplied by Owner, or from any material facts that Owner knows but fails to disclose. ❑ (If checked) The attached property disclosure is part of this Listing Agreement and may be provided to Prospective Transferees. 9. DEPOSIT: Broker is authorized to accept and hold on Owners behalf any deposits to be applied toward the contract price. 10. AGENCY RELATIONSHIPS: A. Disclosure: If the Property includes residential property with one to four dwelling units and this Listing Agreement is used to list the Property for sale, exchange or lease for a period of greater than one year, a "Disclosure Regarding Agency Relationships" (C.A.R. Form AD) is required to be provided to Owner prior to entering into this Listing Agreement. - Owner acknowledgesn receipt of a copy of this page. Owner's Initials ( () ( ) VLL 4/13 (PAGE 2 OF 4) Reviewed by _ Date PUALHOUSI. VACANT LAND LISTING AGREEMENT (VLL PAGE 2 OF 4) Ciry of Morro DocuSign Envelope ID: F08D726C-E418-06F0-A_ . ,-DB33DFF6AC7.A 27E3 Coral Ave. ® Property Address: Norio Bay, Date: June 1. 2013 B. Owner Representation: Broker shall represent Owner in any resulting transaction, except as specified in paragraph 4F. C. Possible Dual Agency With Buyer: Depending upon the circumstances, it may be necessary or appropriate for Broker to act as an agent for both Owner and buyer, exchange party, or one or more additional parties ('Buyer). Broker shall, as soon as practicable, disclose to Owner any election to act as a dual agent representing both Owner and Buyer: If a Buyer is procured directly by Broker or an associate licensee in Brokers firm, Owner hereby consents to Broker acting as a dual agent for Owner and such Buyer. In the event of an exchange, Owner hereby consents to Broker collecting compensation from additional parties for services rendered, provided there is disclosure to all parties of such agency and compensation. Owner understands and agrees that: (i) Broker, without the prior written consent of Owner, will not disclose to Buyer that Owner is willing to transfer the Property at a price less than the listing price; (if) Broker, without the prior written consent of Buyer, will not disclose to Owner that Buyer is willing to pay a price greater than the offered price; and (iii) except for (i) and (ii) above, a dual agent is obligated to disclose known facts materially affecting the value or desirability of the Property to both parties. D. Other Owners: Owner understands that Broker may have or obtain listings on other properties, and that potential buyers may consider, make offers on, or acquire through Broker, property the same as or similar to Owner's Property. Owner consents to Brokers reofesentation of owners and buyers of other properties before, during, and after the end of this Listing Agreement. E. Confirmation: If the Property induces residential property with one to four dwelling units, Broker shall confirm the agency relationship described above, or as modified, in writing, prior to or concurrent with Owners execution of an agreement to sell. 11. SECURITY AND INSURANCE: Broker is not responsible for loss of or damage to personal or real property or person, whether attributable to use of a keysafeAockbox, a showing of the Property, or otherwise. Third parties, including but not limited to, appraisers, inspectors, brokers and prospective buyers, may have access to, and take videos and photographs of the Property. Owner agrees: (i) to take reasonable precautions to safeguard and protect valuables that might be accessible during showings of the Property; and (ii) to obtain insurance to protect against these risks. Broker does not maintain insurance to protect Owner. 12. KEYSAFEA_OCKBOX: A keysafeAockbox is designed to hold a key to the Property to permit access to the Property by Broker, cooperating brokers,_ MLS participants, their authorized licensees and representatives, authorized inspectors and accompanying prospective buyers. Broker, cooperating brokers, MLS and Associations/Boards of REALTORSO are not insurers against injury, theft, loss, vandalism, or damage attributed to the use of a keysafeAockbox. Owner does (or if checked ❑ does not) authorize Broker to install a keysafeAockbox. If Owner'does not occupy the Property, Owner shall be responsible for obtaining occupant(s)' written permission for use of a keysafe/lockbozi- 13. SIGN: Owner authorizes Broker to install.a FOR.SALE/SOLDA.EASE. sign on the:Property unless otherwise indicated in writing. 14. EQUAL HOUSING OPPORTUNITY: The Property is offered in compliance with federal, state and local anti:discrimination laws. _ 15. ATTORNEY'S FEES: In any action, proceeding, or arbitration between Owner and Broker regarding the obligation to pay compensation under this Listing Agreement, the prevailing Owner or Broker shall be entitled to reasonable attomey's fees and costs, except as provided in paragraph 19A. 16. ADDITIONAL TERMS: ❑REOL ❑SSIA �efu,e ><ra� 9!±:Xe✓yJe,15�4 r�o(W/FrL03 IS. EA CL.rdecy' 17. MANAGEMENT APPROVAL: If an associate -licensee in Brokers office (salesperson or broker -associate) enters into this Listing Agreement on Brokers behalf, and Broker or Manager does not approve of its terms, Broker or Manager has the right to cancel this Listino Agreement, in writing, within 5 days after its execution. 18. SUCCESSORS AND ASSIGNS: This Listing Agreement shall be binding upon Owner and Owners successors and assigns 19. DISPUTE RESOLUTION: A. MEDIATION: Owner and Broker agree to mediate any dispute or claim arising between them regarding the obligation to pay compensation under this Agreement, before resorting to arbitration or court action. Mediation fees, -d any, shall be divided equally among the parties involved. If, for any dispute or claim to which this paragraph applies, any party O commences an action without first attempting to resolve the matter through mediation, or (ii) before commencement of an action, refuses to mediate after a request has been made, then that party shall not be entitled to recover attorney fees, even if they would otherwise be available to that parry in any such action. THIS MEDIATION PROVISION APPLIES WHETHER OR NOT THE ARBITRATION PROVISION IS INITIALED. Exclusions from this mediation agreement are specified in paragraph 19C. - B. ARBITRATION OF DISPUTES: Owner and Broker agree that any dispute or.claim in Law or equity arising between them out of this Agreement or any resulting transaction, which is not settled through mediation, shall be decided by neutral, binding arbitration. The arbitrator shall be a retired judge or justice, or an attorney with at least 5 years of residential real estate Law experience, unless the parties mutually agree to a different arbitrator. The parties shall have the right to discovery in accordance with Code of. Civil Procedure §1263.05. In all other respects, the arbitration shall be conducted in accordance with Title 9 of Part 3 of the Code of Civil Procedure. Judgmentuponthe award of the arbitrator(s) may be entered into any court having jurisdiction. Enforcement of this agreement to arbitrate shall be governed by the Federal Arbitration Act. Exclusions from this arbitration agreement are specified in paragraph 19C. Owner acknowledges_ receipt of a copy of this page. ® Owners Initials ( bA ) ( ) n VLL 4/13 (PAGE 3 OF 4) Reviewed by _ Date LpiN11TT VACANT LAND LISTING AGREEMENT (VLL PAGE 3 OF 4) City of Morro DocuSign Envelope ID: F08D726C-E418A6F0-A_ DB33DFF6AC7A 2783 Coral Ave. Property Address: Morro Bay, Date: June 1, 2013 "NOTICE: BY INITIALING IN THE SPACE BELOW YOU ARE AGREEING TO HAVE ANY DISPUTE ARISING OUT OF THE MATTERS INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION DECIDED BY NEUTRAL ARBITRATION AS PROVIDED BY CALIFORNIA LAW AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN A COURT OR JURY TRIAL. BY INITIALING IN THE SPACE BELOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL, UNLESS THOSE RIGHTS ARE SPECIFICALLY INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION. IF YOU REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVISION, YOU MAY BE COMPELLED TO ARBITRATE UNDER THE AUTHORITY OF THE CALIFORNIA CODE OF CIVIL PROCEDURE: YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY." "WE HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TOSUBMITDISPUTES ARISING OUT OF THE MATTERS INCLUDED IN THE 'ARBITRATION OF DISPUTE=rSION TO NEUTRAL ARBITRATION." .ra 1, Owner's Initials I Brokers Initials( ' I ' C. ADDITIONAL MEDIATION AND ARBITRATION TERMS: The following matters shall be excluded from mediation and arbitration: (i) a judicial or non -judicial foreclosure or other action or proceeding to enforce a deed of trust, mortgage or installment land sale contract as defined in Civil Code §2985; (ii) an unlawful detainer action; (iii) the filing or enforcement of a mechanic's lien; and (iv) any matter that is within the jurisdiction of a probate, small claims or bankruptcy court. The filing of a court action to enable the recording of a notice of pending action, for order of attachment, receivership, injunction, or other provisional remedies, shall not constitute a waiver or violation of the mediation and arbitration provisions. 20. ENTIRE CONTRACT: All prior discussions, negotiations, and agreements between the parties concerning the subject matter of this Listing Agreement are superseded by this Listing Agreement, which constitutes the entire contract and a complete and exclusive expression of their agreement, and may not be contradicted by evidence of any prior agreement or contemporaneousoral agreement. If any provision of this Agreement is held'to beineffective orinvalid, the.remaining provisions will neverthelessbe given full force and effect. This Listing Agreement and any supplement, addendum, or modification, " including:: any -photocopy or facsimile, may be executed in counterparts.�- By signing below, Owner acknowledges that Owner has read, understands, received a copy of and agrees to the terms of this Listing Agreement and any attached schedule of compensation. G ls/(3 Date at )Z40rke 'BR- 1 Owner By City Address _ Telephone Date Owner Fax at By Title Address City Telephone Fax Email State Zip State Zip Date at Owner By Title Address City State _ Zip Telephone Fax Email Real Estat rclWIF761 ' Ciano Real Estate DRE Lic. # 01412309 By (Agent) -�«.k 7n. ...e Frank M. Ciano DRE Lic. # 01412308 Date 05/2812013 Address 3 4.nxaosFda Blvd. City Morro Bay State CA Zip 93442 Telephone (905)771-9779 Fax (805)771-9889 Email frankie@cianorealestate. corn O 2013, California Association of REALTORS®, Inc. United Slates copyright law (Tile 17 U.S. Code) forbids the unauthorized distri tmoo display and reproduction of this form, or any portion thereof, by photocopy machine or any other means, including facsimile or computerized formats. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORSS (C.A.R.). NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. This form is made available to real estate professionals through an agreement with or purchase from the California Association of REALTORS& It is not intended to identify the user as a REALTORS, REALTORS is a registered collective membership mark which may be used only by members of the NATIONAL ASSOCIATION OF REALTORS& who subscnbe to its Code of Ethics. Published and Distibuted by „ REAL ESTATE BUSINESS SERVICES, INC. asubsidiaryTEB Califomia AseACESno/REAL70R5® ` . 525 South Mryi Avenue, Las Argeles, Califomia 90020 VLL 4/13 (PAGE 4 OF 4) Reviewed by _ Data evvo`Ary ?v VACANT LAND LISTING AGREEMENT (VLL PAGE 4 OF 4) City of Marro Ell ® RESOLUTION NO.49-13 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA APPROVING A FORTY-NINE YEAR LEASE AGREEMENT FOR LEASE SITE 82-85/82W-85W BETWEEN THE CITY OF MORRO BAY AND 725 EMBARCADERO LLC, LOCATED AT 725 EMBARCADERO THE CITY COUNCIL City of Morro Bay, California WHEREAS. the Citv of Morro Bav is the lessor of certain properties on the Morro Bay Waterfront described as City Tidelands leases and properties; and WHEREAS. 725 Embarcadero LLC, Doug Redican. has been the lessee of Lease Site 82-85/82W-85WW since 2002 and is a tenant in good standing: and WHEREAS, Mr. Redican is proposing redevelopment of said property consisting of the addition of vessel slips and associated facilities; and WHEREAS. in accordance with the Citv's Master Lease Policy, the City and lessee have agreed to a new forty-nine year lease agreement for Lease Site 82-85/82W- ® 85W. located at 725 Embarcadero. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay. California. that the attached new Lease Agreement for Lease Site 82- 85/82W-85W is hereby approved. BE IT FURTHER RESOLVED, that the Mayor is hereby authorized to execute said Lease Agreement. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 8th day of October. 2013 on the following vote: AYES: Irons, C. Johnson. N. Johnson. Smukler NOES: None ABSTAIN: Leage ABSENT: None J e L. Irons, Mayor ATTEST: vjbw_� ® JarMe Boucher. City Clerk LJ LEASE by and between the CITY OF MORRO BAY ("CITY") .n ("TENIANT") S/RWS/Cmbm.Harbor.01101 I agr.MazterLcane TABLE OF CONTENTS , is Article1 FIXED TERM.............................................................................................................2 Section1.01 Term..............................................................................................2 Section 1.02 No Extensions...............................................................................2 Section1.03 Hold Over......................................................................................2 Section 1.04 Replacement..................................................................................3 Article2 RENT..........................................................................................................................3 Section 2.01 Annual Minimum Rent.................................................................3 Section 2.02 CPI Adjustment to Annual Minimum Rent..................................3 Section 2.03 Calculation of New Minimum Rent..............................................4 Section 2.04 Percentage Rent . ................................... .......................................... 5 Section 2.05 Reimbursements............................................................................8 Section 2.06 Penalty and Interest., ...................................................................... 8 Article 3 USE OF PREMISES ...................................................................................................8 Section 3.01 Permitted Uses..............................................................................8 Section 3.02 Unauthorized Use..........................................................................8 Section 3.03 Operation of Business - Hours of Operation.................................8 Section3.04 Competition............................................................... .................... 9 Section 3.05 Hazardous Materials.....................................................................9 Section 3.06 Tidelands Trust............................................................. .............. I I Section 3.07 Compliance with Law . .................................. .............................. I I Section 3.08 Waste or Nuisance . ..................................................................... I I Section 3.09 Use by CITY................................................................................ I I Article 4 CONSTRUCTION; ALTERATION AND REPAIRS.............................................12 Section 4.01 Construction Approval................................................................12 Section 4.02 Construction Bond......................................................................12 S/RWS/Cmbmy.Harbor.01101 Lag.MmterLea a -1- Section 4.01 Mechanics' Liens.........................................................................13 Section 4.04 Ownership of Improvements.......................................................13 Article > LEASEHOLD MORTGAGES.................................................................................14 Article 6 REPAIRS, MAINTENANCE AND RESTORATION............................................14 Section 6.01 Maintenance by TENANT..........................................................14 Section 6.02 Seawalls and Revetment.............................................................14 Section_6.03 Legal Requirements....................................................................14 Section 6.04 Failure to Repair . .................................... :................................... 1 5 Section 6.05 Inspection by CITY.....................................................................15 Section 6.06 TENANT'S Duty to Restore Premises........................................1 5 Section 6.07 Termination of Lease for Destruction.........................................16 Section 6.08 Destruction Due to Risk Not Covered by Insurance...................17 Article 7 INDEMNITY AND LNSURANCE..........................................................................17 Section 7.01 Indemnity° Aereement.................................................................17 Section 7.02 Liability Insurance......................................................................18 Section 7.01 Worker's Compensation..............................................................19 Section 7.04 Property Insurance...... ............................................ E ................... 19 Section 7.05 Additional Coveraee...................................................................19 Section 7.06 General Requirements.................................................................20 Section 7.07 No Subroeation...........................................................................21 Section 7.08 TEN?ANT'S Waiver.....................................................................21 Section 7.09 Insurance Not a Limit.................................................................21 Article8 TAXES AND FEES..................................................................................................ZZ Section 8.01 TENANT to Pay Taxes...............................................................22 Section 8.02 TENANT to Pay License and Permit Fees.................................22 ® Section 8.03 Utilities........................................................................................22 S/RWS/Cmbcry.Harbor.01101 Lagr.MatterLeae -n- Article 9 CONDEMNATION.................................................... !............................................. 22 Section 9.01 Total Condemnation ................................ :................................... 22 Section 9.02 Condemnation Award.................................................................22 Section 9.03 Termination for Partial Taking...................................................23 Section 9.04 Rent Abatement for Partial Taking.............................................24 Section 9.05 Conveyance in Lieu of Eminent Domain....................................24 Section 9.06 Temporary Taking......................................................................25 Article 10 ASSIGNMENT AND SUBLEASING.....................................................................25 Section 10:01 No Assignment Without CITY'S Consent..................................25 Section 10.02 Change of OAmership as Assignment.........................................25 Section 10.03 Application for Assignment........................................................26 i Section 10.04 Probate Transfer of Assignment.................................................26 Section 10.05 No Sublease Without CITY'S Consent.......................................27 Section 10.06 Subtenant Subject to Lease Terms..............................................27 Section 10.07 Consent Form Agreement...........................................................27 Section 10.08 TENANT and Guarantor Remain Liable....................................28 Section 10.09 Nondisturbance...........................................................................28 Article 11 DEFAULT AND TERMINATION..........................................................................28 Section 11.01 Abandonment by TENANT........................................................28 Section 11.02 Termination for Breach by TENANT.........................................28 Section 11.03 Termination for Failure to Pay Rent...........................................29 . Section 11.04 Lender May Cure Default...........................................................29 Section 11.05 Attorneys' Fees............................................................................29 Section 11.06 Damages for Breach....................................................................29 Section 11.07 Cumulative Remedies.................................................................30 Section 11.08 Waiver of Breach........................................................................30 Section 11.09 Surrender of Premises.................................................................30 S/RWS/CmbcN.Hnbor.01101 Lagr.Ma terLease -iil- ® Article 12 MISCELLANEOUS .................................................................................................31 Section 12.01 Attorneys' Fees............................................................................11 Section 12.02 Notices............................................................................... :........ 31 Section 12.03 Governine Law and Jurisdiction.................................................31 Section 12.04 Binding on Successors................................................................32 Section 12.05 Partial Invalidin..........................................................................32 Section 12.06 Sole and Only Agreement...........................................................32 Section 12.07 Modification................................................................................32 Section 12.08 Time of Essence..........................................................................33 Section 12.09 Memorandum of Lease for Recording........................................33 .Article 13 SPECIAL PROVISIONS PECULLAR TO THIS LEASE SITE.................................33 Section 13.01 Public Restrooms........................................................................33 Section 13.02 Construction of Waterside Improvements..................................33 S1RWS/Cmbcty.Harbor.01101 Lag.ManerLc a -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 725 Embarcadero LLC, a Limited Liability company, currently doing business as Rose's Landing (Doug Redican), herein called TENANT. 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 VdIIEREAS, 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, 1969, 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, 9K417, 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; C S/RWS/Cmbcty.Harbor.01101 Lagr.Ma terLeue ® NOW, THEREFORE, in consideration of the covenants to be performed and the rental to be paid by TENANT to CITY, CITY leases to TENANT; and TENANT leases from CITY; all of the following premises (herein collectively referred to as the 'Premises") in the CITY of Morro Bay, County of San Luis Obispo, State of California, described as follows: Lease Site 82-85/82W-85W 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 Country, 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 49 years; commencing January 1, 2014 (the "Commencement Date"). The term of this Lease shall terminate without notice on December 31. 2062, unless sooner terminated as herein provided. Section 1.02 No Extensions. 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. Master Leas- l lrol -2- Section 1.04 Replacement. As of the Commencement Date of this Lease, this Lease shall extinguish and replace every prior lease between CITY and TENANT respecting the Premises, if any. Any right or interest held by the TENANT,pursuant to any existing lease with respect to the Premises which is not granted pursuant to this Lease shall be extinguished as of the Commencement Date of this Lease. Article 2 RENT Section 2.01 Annual Minimum Rent. TENANT agrees to pay to CITY a minimum guaranteed annual rental for the use and occupancy of the Premises, in an initial amount of $58,587.00 per year (the "Minimum Rent"), payable in advance in equal semiannual in on January 1 and July 1 each year during the term of the Lease. If the Commencement Date is other than January I 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 Adjustment to Annual Minimum Rent. (1) The parties agree that as of every July 1 following the Commencement Date (each, a "CPI Adjustment Date"), except as outlined in section 2.03 hereof, the annual Minimum Rent shall be adjusted in direct proportion to any upward or downward movement in the Consumer Price Index for January 1, 2013 which is hereby agreed to be 238.02 (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") Master Lease I1/01 -3- ® (2) The Annual Minimum Rent shall be adjusted as of each CPI Adjustment Date; and will remain in effect as adjusted until the next CPI Adjustment Date. As an illustration only; if the Base Index (Jan. 1, 1999 CPI) is 166.1 and the monthly average CPI for 2000 is 171.E then the percentage increase is equal to 3.31%. Therefore, the Minimum Rent would be increased bv_ 3.31 % as of July 1. 2001. and would continue at that rate through June 30, 2002. (3) If the united States Department of Labor. Bureau of Labor Statistics; shall cease to compile and make public the Index as now constituted and issued, but shall substitute another index in its place; then said substituted index shall be used for the purpose of adjusting the Minimum Rent for the Premises. If the Index is changed so that the base year differs from that in effect'on the Lease Commencement Date. the Index shall be converted in accordance with the conversion factor published by the united States Department of Labor. Bureau of Labor Statistics. Section 2.03 Calculation of New Minimum Rent. At the end of the initial five (5) years and of each five-year period thereafter; a new Minimum Rent shall be calculated for the following five (3) year period (each; a "Subsequent Rental Period") as follows: A. The Minimum Rent shall be subject to adjustment by appraisal as of the fifth anniversary of the Commencement Date and every five years thereafter (each, an "Appraisal :Adjustment Date"). CITY; at its own cost and expense; shall retain an independent qualified appraiser for determination of the fair market value of said premises. Not more than nine (9) months prior to each Appraisal Adjustment Date; CITY shall provide written notice to TENANT of the pending appraisal and the appraiser selected by the CITY to determine the fair market value of the Premises, excluding fixtures and improvements unless such are expressly included in the description of the leasehold hereinabove. If TENANT does not reject CITY's appraiser in writing and within thirty (30) days of CITY's notice of its determination; then the Minimum Rent for the Subsequent Rental Period shall be in the amount determined by CITY as outlined in this Section 2.03. If TEN?ANT rejects CITY's appraiser within thirty (30) days following CITY's notice to TENANT. then within fifteen (15) days after such 30-day period, each part),, at its own cost; shall select an independent professionally designated appraiser who is a member of the American Institute of Real Estate Appraisers, or the Society of Real Estate Appraisers with a designation of MAJ (_Member of American Institute), SRPA (Senior Real Estate .Analysis); to appraise the fair market value of the Premises. CITY may rely on its original appraisal, or select a new appraiser, at its cost. If a parry does not appoint an appraiser within fifteen (15) days after the other party has given notice of the name of its appraiser, the single appraiser appointed shall Master Lewe 11/01 . -4- be the sole appraiser. Each appraiser shall conduct an independent appraisal within thirty (30) days after appointment. If the parties are unable to agree on the Minimum Rent for the Subsequent Rental Period within thirty (30) days after receiving the appraisal(s), then each party shall select one member of a three -member committee. The two so selected members shall select the third member, and this committee shall by majority vote select one or the other of the appraisals. The Minimum Rent determined on the basis of the selected appraisal shall be final and binding and all costs associated with the three -member committee shall be paid equally by CITY and TENANT. B. In. the event that the appraisal process is not concluded on or before the Appraisal Adjustment Date, the Minimum Rent shall be adjusted retroactively to such Appraisal Adjustment Date as set out hereinbelow when said appraisal process is completed. C. The total Rent payable, including both the Minimum Rent and the Percentage Rent for each year within the applicable previous five-year period, shall be averaged to produce the average annual total Rent payable for such previous period. D. The new Minimum Rent for the five-year period commencing on each Appraisal Adjustment Date shall be the greater amount of seventy-five percent (75%) of the average of the total yearly Rent payable during the previous five-year period (as set out in paragraph C. above) or eight percent (8%) of the fair market value of the Premises (as established in paragraph A. above.) . The new Minimum Rent shall be divided by two to determine the semiannual payments and shall be paid by TENANT to CITY on the first of each January and July thereafter. This new Minimum Rent shall be adjusted each following year in proportion to any increase in the Consumer Price Index as set out in Section 2.02 of this Lease. The base index shall be adjusted. upon each Calculation of new Minimum Rent as set out in this section so that the Base index for CPI adjustment shall be the Consumer Price Index for January 1 of the year of the calculation of new Minimum Rent. Section 2.04 Percentage Rent. A. In addition to the Minimum Rent, TENANT agrees to pay to CITY at the time and in the manner hereinafter specified, as additional Rent for the use and occupancy of the Premises, a sum equal to five percent (5%) of all TENANT'S Gross Sales, hereinafter defined, except those attributable to the second floor table service restaurant (both food and beverage) which shall be three percent (3%), and vessel slip and tie-up fees which shall be ten percent (10%), 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 Master Lease 11/01 -5- ® Premises by TENANT; its sublessees; licensees, or concessionaires; both for cash and on credit including; but not limited to, rentals of dockage space; leasing and servicing operations and ticket sales; and if on credit whether or not payment be actually made therefore, all charges for services, alterations or repairs made in or upon the Premises; the gross amount received by TENANT for merchandise sold pursuant to orders received in the Premises. though filled elsewhere; and the gross amount received by TENANT from any and all other sources of income derived from the business conducted upon the Premises. C. Notwithstanding the other provisions of Section 2.04, the term "Gross Sales" shall not include the following items. and such items may be deducted from Gross Sales to the extent they have been -included therein or have been included in a prior computation of Gross Sales or for which a Percentage Rent has been paid under this Lease to CITY: (1) Credits and refunds made to customers for merchandise returned or exchanged; (2) Any sales or excise taxes otherwise includable in Gross Sales as defined in this Section because such taxes are part of the total selling price of merchandise or services rendered in, from, or on the Premises, where TENANT must account for and remit the taxes to the government entity or entities by which they are imposed; and (3) R%ith respect to credit card sales; fees retained or withheld by the issuer and/or ® merchant bank pursuant to TENANT'S credit card acceptance agreement, and (4) Rental payments .to TENANT from sublessees whose total gross sales are included in gross sales computations. D. TENANT shall keep or cause to be kept full; complete, and accurate records, and books of account in 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 Master Lc- e 1 trot -6- 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, sublessee, licensee and concession operating in, on or from the Premises for the previous twelve (12) calendar months, ending June 30, just concluded, and the authorized deductions; if any, therefrom: and with it TENANT shall pay to CITY the amount of the Percentage Rent which is due to CITY as shown thereby. If TENANT shall at any time cause an audit of sales of TENANT'S business to be made by a public accountant, TENANT shall furnish CITY with a copy of said audit without cost or expense to CITY. CITY may, once in any twehre-month period, cause an audit of the business of TENANT to be made by a public accountant of CITY'S own selection. TENANT shall, upon receiving written notice of CITY'S desire for such an audit deliver and make available all such books; records and cash register tapes to the public or certified public accountant selected by CITY. Furthermore, TENANT shall promptly on demand reimburse CITY for the full cost and expense of said audit, should the audit disclose that the questioned statement or statements understated Gross Sales by five percent (5%) or more but less than ten percent (10%). In the event that an audit performed at CITY'S request discloses that TENANT understated Gross Sales by less than 5%, the cost of such audit shall be paid by CITY. In the event that any audit or other review of records discloses that the amounts reported as Gross Sales was understated by TENANT by ten percent (10%) or more, CITY shall not only be entitled to recover from TENANT all costs of audit and review but shall also be entitled to recover from TENANT a penalty equal to two times the Percentage Rent due pursuant to this Lease on such unreported amounts. Whenever any audit discloses that Gross Sales were understated by any amount, TENANT shall immediately pay the additional Percentage Rent therein shown to be payable by TENANT to CITY, together with interest of 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 authorized deductions therefrom as shown by any such statements and shall upon request make the same available to CITY for examination. Master Lease II/01 -7- ® Section 2.05 Reimbursements. If TENANT fails to perform any term or covenant of this Lease. CITY may, but is not obligated to, perform such term or covenant; and TENANT shall reimburse CITY therefore as additional Rent hereunder.' As an illustration and not as a limitation, if TEIr? A.NIT fails to procure the insurance required by this Lease; CITY may, but is not obligated to, obtain such insurance, with the cost of the premiums being due to CITY upon demand as additional Rent. Section 2.06 Penalty and Interest. (1) If any Rent is not received within ten (10) days following the date on which the Rent first became due; TEN'ANTT shall pay a- late penalty of ten percent (10%) of the amount of the Rent in addition to the Rent. (2) In addition to the penalty; TENANT shall pay interest at the rate of one percent (1%) per month or fraction thereof or the maximum amount pemritted by law as of the date this Lease is signed, whichever is greater (the "Default Rate"), on the amount of the Rent, exclusive of the penalty, from the date on which Rent first became delinquent until paid. The term 'Rent" includes any sums.advanced by the CITY and any unpaid amounts due from TENANT to the ® CITY. Article 3 USE OF PREMISES Section 3.01 Permitted Uses. The Premises shall, during the term of this -Lease, be used for the purpose of operating and conducting thereon and therein the uses permitted by, and in compliance with, Conditional Use Permit Number 72-00, as it may be amended from time to time, and for no other purpose. At the commencement date of the lease, such uses include mixed use retail, bar and restaurant, and vessel slips/tie-up. Section 3.02 Unauthorized Use. TENANT agrees to allow only those uses authorized in Section 3.01 hereinabove and that anv 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. Maher Lease uioi -8- 1(1) TENANT shall during the term of this Lease conduct business of the nature specified in Section 3.01 of this Lease on the Premises in an efficient and diligent manner and keep the Premises open for the conduct of business continuously and without interruption for at least six hours each day of the year except one day each week and legal holidays. This provision shall not apply if the Premises shall be closed and the business of TENANT is temporarily shut down for a period not to exceed fourteen (14) calendar days in any calendar year to make necessary repairs, maintenance or other construction deemed necessary by TENANT. This provision shall not apply if the Premises shall be closed and the business of TENANT is temporarily shut down as authorized or required by the CITY Manager or on account of strikes, walkouts, or causes beyond the control of TENANT or for not more than three (3) days out of respect to the memory of an officer, employee, or close relative of any officer or employee of TENANT. (2) TENANT shall operate TENANT'S business on the Premises with due diligence and efficiency and in like manner as comparable businesses operated.in the CITY or the coastal area of San Luis Obispo County, so as to produce the maximum amount of Gross Sales and gross receipts from services which may be produced from TENANT'S business; and TENANT at all times shall carry on Premises, a stock or merchandise of such size, character, and quality as is reasonable, designed to produce the maximum return to TENANT, when the sale of merchandise is a permitted use under this Lease. Section 3.04 Competition. During the term of this Lease, TENANT shall not directly nor indirectly acquire or establish any similar or competing business within a radius of five (5) miles from the location of the Premises, provided, however, that TENANT may, with prior written approval from CITY, own or operate more than one business, whether or not competing and similar along the Embarcadero upon CITY lease sites.. The purpose of this section is to prevent and prohibit TENANT from reducing revenue to CITY by diverting business from the operation at the Premises to another similar business owned by TENANT within the CITY but not upon a CITY lease site from which CITY is paid rent based on Gross Sales. Section 3.05 Hazardous Materials. (1) TENANT shall not transport, use, store, maintain, generate, dispose, release, treat or discharge any "Hazardous Material" (as defined below) upon or about the Premises (such activities being hereafter referred to as "Hazardous Materials Activities"), nor permit TENANT'S employees, agents, or contractors to engage in Hazardous Materials Activities upon or about the Premises, except as allowed by applicable law. The term "Hazardous Material" for purposes Master L. a 11/01 -9- 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, bode 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 TENIANT'S liability insurer. (2) TEI\ANT 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 TENANTT 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 TEN.42,,TT or its employees, agents or, contractors, on or about the Premises in violation of the foregoing provisions, TENANT shall immediately notify CITY. CITY may elect either to take such remedial action as CITY deems appropriate, in which event TENANT shall reimburse CITY for all costs thereof within ten (10) days after demand, or direct TENANT to perform such remediation. If CITY directs TENANT to perform the remediation. TENANT shall immediately take such remedial action, as CITY shall direct. TENANT shall, properly and in compliance with applicable laws clean up and remove the Hazardous Material from the Premises and any other affected propem, at TENANTS 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). Maher Lets- 11/01 -10- Section 3.06 Tidelands Trust. TENANT shall use and occupy the Premises in strict compliance Adth the Tidelands Trust purposes under which the Premises or any portion thereof are held by CITY pursuant to the grants from the State of California as set forth in this Lease. Section 3.07 Compliance with Law. TENANT shall, at no cost to CITY, comply with all of the requirements of all local, municipal, county, state and federal authorities now in force, or which may hereafter be in force, pertaining to the Premises, and shall faithfully observe in the use of the Premises all local, municipal and county ordinances and state and federal statutes, rules, regulations and orders now in force or which may hereafter be in force (collectively, "Legal Requirements") provided that TENANT shall not be required to comply Aith 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 parry 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. is Section 3.08 Waste or Nuisance. TENANT shall not commit or permit the commission by others of any waste on the Premises; TENANT shall not maintain, comrnit, or permit the maintenance or commission of any nuisance as defined by law on the Premises; and TENANT shall not use or permit the use of the Premises for any unlawful purpose. Section 3.09 Use by CITY. (1) Subject to TENANT's rights hereunder to possession of the Premises, CITY may grant licenses to, or otherwise authorize, other persons and entities permitting uses of the Morro Bay Harbor. (2) CITY also retains and reserves for itself, its successors and assigns, all oil, gas, petroleum and other mineral or hydrocarbon substances in and under the lands leased hereby together with right to prospect and extract all such substances. El Master Lease 11/01 -1 1- 0 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 (510,000), 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, or the City's designee, for CITY. If the Harbor Director or any future successor to the duties of the City's Harbor Director, or the City's designee, 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 (5100,000), TENANT shall file with the Morro Bay CITY Clerk a final detailed Civil Engineer's, Registered Architect's or Licensed and Bonded General Contractor's estimate of the cost of construction and installation of improvements on the Premises. Said estimate must be submitted to the CITY Engineer for approval. TENANT shall file with the Morro Bay CITY Clerk a faithful performance bond, in a form and issued by a corporate surety company satisfactory to CITY, in an amount satisfactory to CITY but not in excess of one hundred percent (100%) of the final detailed cost estimate. securing the faithful performance of TENANT or its contractor in the completion of said construction. (2) TENANTT 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. Man« tsm: 11/01 -12- (3) In lieu of the above referenced bonds, TENANT may post cash deposits or may make is 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 attomeys' 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 leery, 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 ack6owledged by TENANT as principal and by a company or corporation, licensed by the Insurance Commissioner of the State of California to transact the business of a fidelity and surety insurance company as surety. The beneficiary of any security instrument which instrument is on record with CITY, shall have the right to file such a bond on behalf of TENANT. CITY shall have right to post and keep posted on the Premises notices of non -responsibility and any other notices that may be provided by law or which CITY may deem proper for the protection of CITY and Premises from such liens. TENANT shall give CITY notice at least twenty (20) days prior to commencement of any work on the Premises to afford CITY the opportunity to post such notices. Section 4.04 Ownership of Improvements. The parties agree that CITY has the option and right to require TENANT to remove all buildings, structures, installations, improvements of any kind or other. property belonging to or placed upon the Premises by TENANT at the termination of this Lease, however occurring, providing CITY gives notice, in writing, no later than thirty, (30) days prior to the termination of the Lease, of its decision to require that such improvements be removed. The parties agree that if the CITY exercises its option, then, at the termination of this Lease, however occurring, TENANT shall have sixty (60) days thereafter to remove all buildings, structures, facilities, installations, improvements and other property belonging to TENANT from the Premises. If CITY exercises such option and TENANT fails to remove all such improvements and other Master Lease 11/01 -13- ® 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 TENANTT. 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 TENANTT'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 TEN'ANT'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. 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, TENANIT shall at TENANTT'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 3.01 above) now or hereafter made or issued; Master Lzmc itrot -14- (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 an), repair or maintenance activity; and (4) Indemnify and hold. CITY and the property of CITY. including the Premises, free and harmless from any and all liability, loss, damages, fines, penalties, claims and actions resulting from TENANT'S failure to comply with and perform the requirements of this section. Section 6.04 Failure to Repair. In the event failure to repair results in a hazardous or unsafe condition, CITY shall have the right and option but not the obligation to close and prohibit access to the unsafe portion of the Premises until such repairs are completed and accomplished and the Premises rendered safe for public use. In addition, if TENANT fails to repair any hazardous or unsafe condition within ten (10) days of written notice thereof from CITY, CITY shall have the right, but not the obligation, to perform such repair at TENANT'S expense. TENANT shall reimburse CITY for any such repair undertaken by CITY, promptly upon CITY'S demand, as additional Rent. Failure'by CITY to enforce any of the provisions of this Article shall not constitute a waiver of these provisions and CITY may at any time enforce all of the provisions of this Article, requiring all necessary repairs, rebuilding or replacement. Section 6.05 Inspection by CITY. CITY or CITY'S agents, representatives, or employees may enter the Premises at all reasonable times for the purpose of inspecting the Premises to determine whether TENANT is complying with the terms of this Lease and for the purpose of doing other lawful acts.that may be necessary to protect CITY'S interest in the Premises under this Lease or to perform CITY'S duties under this Lease. Section 6.06 TENANT'S Duty to Restore Premises. (1) Except as provided in Section 6.07 below, if at any time during this Lease, any improvements now or hereafter on the Premises are destroyed in whole or in part by the elements, or any other cause not the fault of TENANT or CITY, this Lease shall continue in full force and effect and TENANT, at TENANT'S own cost and expense, shall repair and restore the damaged or destroyed improvement(s) according to the original plan thereof or according to such modified plans therefore as shall be approved in writing by CITY. The work of pemutting, repair and restoration shall be commenced by TENANT within one hundred eighty (180) days Master Lease 11/01 -15- ® 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 patties 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 (1 5) 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 thim-five percent (35%) of the cost of replacing all improvements if they had been totally destroyed at the time of such damage; or (b) During the last ten (10) years of the term of this Lease, any improvements now or hereafter on the Premises are so damaged or destroyed by the elements or any cause not the fault of TENANT or CITY, that they cannot be repaired and restored as required by Section 6.06 of this Lease at a cost not exceeding fifteen percent (1 5%) 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 TENIANT provides its notice. ® -- Mager Lease 11/01 -16- (1) 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, includins 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: (a) first, to the demolition of the improvements and removal of all demolition debris; then then (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. 40 Section 6.08 Destruction Due to Risk Not Covered by Insurance. Notwithstanding anything to the contrary in Section 6.06 of this Lease, TENANT shall have the right to terminate this Lease at any time if the improvements on the Premises are damaged or destroyed by a casualty for which TENANT is not required under this Lease to carry insurance and the cost to repair or restore such improvements exceeds fifty percent (50%) of the fair market value of all the improvements on the Premises immediately prior to the damage or destruction. Article 7 INDEMNITY AND INSURANCE Section 7.01 Indemnity Agreement. (1) TENANT shall indemnify and hold CITY, and the property of CITY (including the Premises and any improvements now or hereafter on the Premises), and the CITY'S officers, officials,, employees and volunteers harmless from any and all liability, claims, loss, damages, and expenses, including attorney fees and litigation expenses, resulting from TENANT'S occupation and use of the Premises or any negligent act or omission of the TENANT or any of Muter Leme 11/01 -17- ® 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 TEN?ANTT or any person who is an employee or agent of TENANT. or by reason of the damage to or destruction of any propem; including property owned by TEN:ANTT 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 TE\ANT. 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 TENANTT: ® (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. (2) TENANTT'S obligations pursuant to this Section to indemnify and hold harmless do not extend to any liability; claim; loss; damage or expense arising from CITY'S active negligence or willful misconduct. Section 7.02 Liability Insurance. During the term of this Lease. TENANT shall maintain at its cost Commercial General Liability insurance with coverages at least as broad as ISO Forms labeled "City of Morro Bay Insurance requirements for Lessees`; Certificate of Insurance — City of Morro Bay". and "Additional Insureds — Managers or Lessors of Premises" attached hereto as Exhibit B and made a pan 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 (SL000,000) per occurrence for bodily injury, personal injury and property Master Lease 11/01 -1 g- 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 coverages for subtenants shall comply with all requirements of this Article Seven. Section 7.03 Worker's Compensation. TENANT shall maintain at TENANT'S own expense and keep in full force and effect during the term of this Lease, Worker's Compensation Insurance as provided by law. Said insurance shall contain a waiver of subrogation rights against CITY. TENANT shall also maintain employer's liability insurance with minimum coverage of $1,000,000 per accident for bodily injury or disease. Section 7.04 Property Insurance. TENANT shall, at its cost, at all times during the 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 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 Master Lease 11/01 -19-. ® replacement value of such personal property. CITY shall have no interest in the proceeds of such insurance. (3) TENANT shall; at TEN?ANT's own expense; obtain and maintain any additional insurance coverages that CITY may reasonably require. As illustration only and not as a limitation; in appropriate circumstances such additional insurance may include increased general liability limits, business interruption coverage, business automobile liability; boiler and machinery insurance and/or builder's risk insurance. However, TENANT shall not be required to maintain additional coverages that are in excess of those typically maintained by similarly situated tenants in the Morro Bay area. Section 7.06 General Requirements. Except as specifically provided to the contrary, all the insurance required pursuant to this Article Seven shall be subject to the requirements of this Section 7.06. (1) Maintenance of proper insurance coverage is a material element of this Lease and failure to maintain or renew coverage or to provide evidence of coverage and/or renewal may be treated by the CITY as a material breach of contract. TENANT shall forward the CITY ® specifications and forms to TENANT'S insurance agent for compliance. (2) CITY may at any time require TEN.ANrf to increase the minimum coverage limits for insurance required by this Lease, but every such increase shall be reasonable .under the circumstances. (3) All policies shall be issued by insurance companies authorized to issue such insurance in California, with an A.M. Best's rating of no less than ANII. (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 ihirty (30) days' prior written notice by certified . mail, retum 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 Master L. a I1/01 -20- 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. TENTANT hereby grants to the CITY, on behalf of any insurer providing insurance to either TENANT or CITY with respect to TENANT'S occupancy of the Premises, a waiver of any rights to subrogation which any such insurer of said TENANT may acquire against the CITY by virtue of the payment of any loss under such insurance. Each insurance policy required under this Lease including those insuring TENANT against claims, expense, or liability for injury to persons or property shall provide that the insurer shall not acquire by subrogation any right to recovery which TENANT has expressly waived in writing prior to the occurrence of the loss. Section 7.08 TENANT'S Waiver. TENANT hereby waives any right of recovery against CITY for each claim, expense, liability, or business interruption, or other loss, except where caused by CITY'S active negligence or willful misconduct. TENANT agrees that to the extent that TEN?ANT 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. E" Master Lease 11/01 -21- ® Article 8 TAXES AND FEES Section 8.01 TENANT to Pav Taxes. TENANrf shall pay, before delinquency, all taxes and assessments levied upon or assessed to TENtANT 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 TENkNT upon or in connection with the Premises. TENANT shall pay all possessory interest taxes applicable to the Premises. Section 8.02 TENANT to Pay License and Permit Fees. TENANT shall pay any fees imposed by law for licenses or permits for any business or activities including construction by TENAINIT upon the Premises. Section 8.03 Utilities. TENANT shall pay, or cause to be paid; and hold CITY and the property of CITY; including the Premises; free and harmless from all charges for the furnishing of gas, water; electricity, telephone service; and for other public utilities to the Premises during the term of this ® Lease and for the removal of garbage and rubbish from the Premises during the term of this Lease. Article 9 CONDEMNATION Section 9.01 Total Condemnation. If title and possession to all of the Premises is permanently taken for any public or quasi - public use under any statute, or by the right of eminent domain, then this Lease shall terminate on the date that possession of the Premises is taken, and both CITY and TEN1.AN'T 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 Mazer Dave I1/01 -22- clear of any claim of TENANT or any person claiming rights to the Premises through or under TENANT. (2) All compensation or damages awarded or payable which is specifically attributed by the taking party to the "good 'ill" 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 is of the improvements that equals the percentage of the full term of this Lease that has, at the time of the taking; not expired shall belong to and be the sole property of TENANT. , (b) That percentage of the compensation or damages 'awarded or payable because of the improvements that equals the percentage of the full term of this Lease that has, at the time of the taking, expired shall belong to and be the sole property of CITY. (c) The term "time of.taking" as used in this Section shall mean 12:01 a.m. of the date that the agency or entity exercising the eminent domain power, takes, title, or the date that it takes physical possession of the portion of the Premises, whichever shall first occur. (5) Any severance damages awarded or payable because only a portion of the Premises is taken by eminent domain shall be the sole and separate property of CITY. Section 9.03 Termination for Partial Taking. Should, during the term of this Lease, title and possession of only a portion of the Premises be taken for any public or quasi -public use under any statute, or by right of eminent domain, TENANT may, at TENANT'S option, terminate this Lease by serving written notice of termination on CITY within ninety (90) days after TENANT has been deprived of actual Master Lease 11/01-23- ® 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 TEN?ACTT 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 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. Master Lease 11101 -24- 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 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 TENANTT'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: E Master Lease 11/01 -25- ® (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 TENANIT is a closely held corporation (i.e., one whose stock is not publicly held and not traded through an exchange or over the counter): (a) The sale or other transfer; within a twelve-month (12-month) period; of more than an aggregate of twenty-five percent (25%) of the voting shares of TENANT (other than to immediate family members by reason of gift or death): or (b) The dissolution. merger; consolidation, or other reorganization of TENANT. Section 10.03 Application for Assignment. A condition of an assignment shall be that TENANT shall file with the CITY an application to assign the leasehold prepared by the prospective assignee. Concurrently with filing the application; TENANT shall pay a reasonable fee associated with the cost pf processing said application, in cash or certified or cashier's check to enable CITY adequately to investigate the proposed assignee's qualifications as a permitted assignee. CITY shall not be required to account for the use of the sum paid. If the proposed assignee's net worth on the date of assignment is not sufficient to reasonably guarantee successful operation of the Premises in compliance with all applicable CITY; County; State and federal requirements; CITY may withhold approval of the assignment or condition it upon TENANT'S guarantee of such assignee's obligations hereunder for such period as CITY deems advisable. Net worth shall mean the amount by which the total of all assets shall exceed the total of all liabilities as determined in accordance with general accepted accounting principles as approved by CITY'S auditor; or other authorized representative or agent. Section 10.04 Probate Transfer of Assignment. If TENANT is an individual, nothing herein contained will prevent the transfer of this Lease by will; or by operation of law under the intestacy provisions of the California Probate Code as it may be amended from time to time. Probate sale of the leasehold interest will not be ® permitted without the.consent of the CITY, evidenced by resolution; first had and obtained. Mm-r haze 1 troi -26- 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 Subiect 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 an), 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 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 parry 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 C Master Lease 11/01 - -27- ® TENANT. TENANT shall apply any and all monies received from any subtenant first to the payment of obligations of the subtenant to CITY. Section 10.08 TENANT and Guarantor Remain Liable. Prior to approval by CITY to any sublease hereof. TENANT shall agree to be primarily and jointly and severally liable to CITY for all obligations due CITY by any subtenant, including the payment of rents, and TENTANT shall agree that CITY may proceed directly against TENANT for anv 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 vNill 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 attorn to Landlord and full performance of all obligations under the sublease in question ("Non -Disturbance Agreement"). CITY agrees to execute a Non -Disturbance Agreement in connection with a particular sublease provided that Tenant provides CITY with a copy of the sublease; and the Non -Disturbance Agreement is customary in form and substance and otherwise reasonably acceptable to CITY. Article 11 DEFAULT AND TERMINATION Section 11.01 Abandonment by TENANT. Should TENANT breach this Lease and abandon all or any pan 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 Master Lease l l/01 -28- 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. Section 11.05 Attorneys' 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 servedon TENANT shall give rise to an independent legal action by CITY to collect same. If CITY is successful in such legal action, CITY shall also be entitled to attorney fees and costs for the collection action. To the extent that CITY is represented by the City Attorney, a reasonable sum for such attorneys' services will be included as attorneys' fees. Section 11.06 Damages for Breach. Should TENANT default in the performance of any covenant, condition or agreement contained in this Lease and the default be incurable or not be cured within the time period set forth hereinabove, then CITY may terminate this Lease and: (1) Bring an action to recover from TENANT: 40 Master Lease I1/01 -29- ® (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 TENANTT 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) Brine an action; in addition to or in lieu of the action described in subparagraph (1) of this Section; to re-enter and regain possession of the Premises in the manner provided by the laws of unlawful detainer of the State of California then in effect. Section 11.07 Cumulative Remedies. ® The remedies available to CIIT in this Article shall not be exclusive but shall be cumulative v«th and in addition to all remedies now or hereafter allowed by law or elsewhere El provided in this Lease. Section 11.08 Waiver of Breach. The waiver by CITY of any breach by TENANrf 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. Mager Lease l lrol -30- Article 12 MISCELLANEOUS 9 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 attomeys' 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: with a copy to: Harbor Director 1275 Embarcadero Morro Bay, California 93442 City Manager of the City of Morro Bay City Hall 595 Harbor Street Morro Bay, CA 93442 Any notice or demand to TENANT may be given at: Doug Redican 725 Embarcadero LLC - 1427 Doral Ct. San Luis Obispo, CA 93401 Such addresses may be changed by written notice by either party to the other parry. Section 12.03 Governing Law and Jurisdiction. This Lease, and all matters relating to this Lease, shall be governed by the laws of the State of California in force at the time any need for interpretation of this Lease or any decision Master Lease 11/01 -31- ® conceming this Lease arises. CITY and TENANIT 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 Invalidity. Should any provision of this Lease be held by a court of competent jurisdiction to be either invalid; void, or unenforceable, the remaining provisions of this Lease shall remain in full force and effect unimpaired by the holding. ® Section 12.06 Sole and Only Agreement. This Lease; including all exhibits incorporated by reference; constitutes the sole and only agreement between CITY and TENANT'respecting the Premises and the leasing of the Premises to TEMANT. 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. TEiy? ANT 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 Master Lease 11/01 -1 - 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. Article 13 'SPECIAL PROVISIONS PECULIAR TO THIS LEASE SITE The following provisions apply to tbis Lease site only: Section 13.01 Public Restrooms Restrooms completed per CUP 9UPO-342 shall be made available to the public during business hours and TENANT shall maintain signage in prominent locations, which clearly identifies that the restrooms are available to the general public. In the case of a dispute over location and design of signage, the Harbor Director may designate two location for "public restroom" signs of a type and design to be determined by the CITY. Furthermore, said restrooms shall be made available after business hours to slipholders on TENANT'S Lease Site. Section 13.02 Construction of Waterside Improvements CITY and TENANT agree that TENANT will construct water improvements to the Premises as outlined in CUP UPO-359 consisting of addition of up to seven (7) new vessel slips, with one reserved for public use, and associated access and gangway improvements, and valued at a minimum of $250,000. Failure to complete said improvements and to comply withi all conditions of said CUP as evidenced by a final building permit inspection as required by the City of Morro Bay, in addition to providing proof of expenses as evidenced by copies of invoices by. the proscribed timeline shall be a material default of the Lease Agreement and subject to any remedies outlined in Article 11 herein, including termination of the Lease. Master Lease 11/01 1 -33- ® TENANT acknowledges that construction of TENANIT'S proposed improvements of the premises as outlined in said CUP requires; but may not be limited to; obtaining a permit from the California Coastal Commission. a City Precise Plan, and a City Building Permit. It is the TENANT'S obligation to fully investigate the issues and costs in obtaining these permits. Failure to obtain any and all required permits and approvals for said improvement construction shall not be a reason for failure to comply with this section. TENIANT further acknowledges that said CUP and construction of TENANIT'S improvements may require repair or replacement of all of portions of the docks. existing buildings; revetments; access ways; sidewalks. drainage systems and other current improvements on the Premises to the standards of the City Engineer and TENANT agrees to meet these standards through review and revision of the final Building Plans prior to issuance of a Building Permit for the construction of improvements on the Premises. TENANT further agrees to: A. Obtain Precise Plan approval of CUP U-PO-359 no later than July 1, 2015. B. Commence construction of proposed slips no later than September 30, 2015. ® C. Completion of all construction of proposed improvements no later than March 31. 2016. During construction of improvements TENANT shall take all measures to: A. Avoid any pollution of the atmosphere or littering of land or water by or originating in or about the Premises or caused by TENANT'S construction activities. B. Keep the noise level on the Premises to a minimum so that persons in the neighborhood will be able to comfortably enjoy business and facilities in the area. C. Prevent any pollutants, including but not limited to petroleum products; from entering Morro Bay waters. D. Avoid negative impacts on surrounding businesses. E. Prohibit storage of materials or equipment on public property, and avoid parking or traffic delays or impairment without prior consent of CITY. ® F. Keep the construction site in a slightly; orderly; and safe manner at all times. 34- Master Lase 11101 _ - EXTCUTED on 0G70�X' 20 13 , at 4('--r7j �j✓� CirU� Lo-s (fir �zr County, California. i CITY OF MORRO BAY 725 Embarcadero LLC a Limited Liability Company Doug) edican, Manager By: ATTEST: Jarr'ie Boucher; CITY CLERK 7 11 Master Lease 11/01 - -15- ® EXEMIT A C COPY OF PARCEL MAP SEWS/Cmbcry.Harbor.0 11011.a—.MnterLene A-1 :e IFS : 'ao © z« iqu,xr © i3Tais \ Po 1 l9 = B o U z a m w 3 a N c a m o i � u 11 I a, E�H+i31T A CITY OF MORRO BAY 595 Harbor St. Morro Bay. CA 93442 (805) 772-6200 FAX (805) 772-7329 INSURANCE REQUIREMENTS FOR LESSEES (NO AUTO RISKS) Lessee shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages io property which may arise from or in connection with the Lessee's operation and use of the leased premises. The cost of such insurance shall be borne by the Lessee. Minimum Scope of Insurance Coverage shall be at least as broad as: ® 1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001). 2. Workers' Compensation insurance as required by the State of California and Employers Liability Insurance (for lessees with employees). 3. Property insurance against all risks of loss to any tenant improvements or betterments. E Minimum Limits of Insurance Lessee shall maintain limits no less than: I General Liability: S1,000,000 per occurrence for bodily injury, personal injury.and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used; either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 2.. Employer's Liability: S1,000,000 per accident for bodily injury or disease. 3. Property Insurance: Full replacement cost with no coinsurance penalty provision. S/R W S/Cmbm.Hm-bor.011011.aa.MnterL_-ne City of Morro Bay Insurance Requirements for Lessees Deductibles and Self-Insured,Retentions Any deductibles or self -insured retentions must be declared to and approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self -insured retentions as respects the City, its officers, officials, employees and volunteers; or the Lessee shall provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration and defense expenses. Other Insurance Provisions The general liability policy is to contain, or be endorsed to contain, the following provisions: i. The City, its officers, officials, employees, and volunteers are to be covered as insureds with respect to liability arising out of ownership, maintenance or use of that part of the premises leased to the Lessee. 2. The Lessee's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Lessee's insurance and shall not contribute with it. 3. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled, except after thirty (10) days' prior written notice by certified mail, return receipt requested, has been given to the City. Acceptability of Insurers Insurance is to be placed with insurers with a current A.M. Best's rating of no less than AN11. Verification of Coverage Lessee shall furnish the City with original certificates and amendatory endorsements effecting coverage required by this clause. The endorsements should be on forms provided by the City or on other than the City's forms, provided those endorsements or policies conform to the requirements. All certificates and endorsements are to be received and approved by the City before use of City premises. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications at any time. 11 Spec C City of Morro Bay Insurance Requirements for Lessees Sub -lessee Lessee shall include all sub -lessees as insureds under its policies or shall furnish separate certificates and endorsements for each sub -lessee. All coverages for sub -lessees shall be subject to all of the requirements stated herein. Rev. 8101 11 City of Morro Bay Insurance Requirements for Lessees Reproduction of Insurance Services Office, Inc. Form INSURER: ISO Form CG 20 11 11 85 (Modified) POLICY NUMBER: Commercial General Liability ENDORSEMENT NUMBER: THIS ENDORSEMENT CILANGES THE POLICY, PLEASE READ IT CAREFULLY. ADDITIONAL INSURED -- MANAGERS OR LESSORS OF PREMISES This endorsement modifies insurance provided under the following: COMNIERCLAL GENERAL LIABILITY COVERAGE PART. SCHEDULE 1. Designation of Premises (Part Leased to You): 2. Name of Person or Organization (Additional Insured): City of Morro Bay 3. Additional Premium: (If no entry appears above, the information required to complete this endorsement will be shown in the Declarations as applicable to this endorsement.) WHO IS AN INSURED (Section II) is amended to include as an insured the person or organization shown in the Schedule, but only with respect to liability arising out of the ownership, maintenance or use of that part of the premises leased to you and shown in the Schedule and subject to the following additional exclusions: This insurance does not apply to: 1. Any "occurrence" which takes place after you cease to be a tenant in that premises. 2. Structural alterations, new construction or demolition operations performed by or on behalf of the person or organization shown in the schedule. Modifications to ISO form CG 20 11 11 85: 1. The Insured scheduled above includes the Insured's elected or appointed officers, officials, employees and volunteers. 2. This insurance shall be primary as respects the Insured shown in the schedule above, or if excess, shall stand in an unbroken chain of coverage excess of the Named Insured's scheduled underlying primary coverage. In either event, any other insurance maintained by the Insured scheduled above shall be in excess of this insurance and shall not be called upon to contribute with it. 3. The insurance afforded by this policy shall not be canceled except after thirty days prior written notice by certified mail return receipt requested has been ziven to the Citv. Signature -Authorized Representative Address CG 20 11 1 185 Insurance Services Office, Inc. Form (Modified) Insurance\Formk3 Rev. 8/01 Spec C RESOLUTION NO. 48-13 ® RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA DESIGNATING S399,000 IN PARKING IN -LIEU FUNDS FOR REVISIONS TO THE PARKING IN -LIEU MAP AND IMPROVEMENTS TO THE CITY -OWNED FRONT STREET AND TRIANGLE PARKING LOT ADJACENT TO THE EMBARCADERO THE CITY COUNCIL City of i\Iorro Bay, California WHEREAS. In -Lieu Parking Fees were established. codified as Morro Bav Municipal Code Section 17.44.020 AT as a means through which public parking can be provided where it is unfeasible to provide such parking as part of on -site development projects: and WHEREAS, Morro Bav Municipal Code Section 17.44.020A.7.b states that monies accumulated in the Parking In -Lieu Fund shall be used for planning, design, acquisition or lease of land and development/redevelopment of public parking facilities: and WHEREAS, on December 5. 2012, as part of the Amendments to the November 15, 2004 Agreement to Lease and Agreement Regarding Power Plant Modernization. Dynegy Morro Bav LLC agreed to dedicate to the Citv the triangle -shaped property adjacent to the Embarcadero: and ® WHEREAS, on August 13. 2013. Citv Council directed staff to proceed with an interim use permit, revisions to the parking in lieu map, and minor temporary improvements to the triangle parking lot adjacent to the Embarcadero: and WHEREAS, monies accumulated in said Parking In -Lieu Fund are to be used for designated public parking tasks. and revisions to the Parking In -Lieu map and improvements to the City -owned triangle parking lot adjacent to the Embarcadero is a good and valuable use of Parking In -Lieu Funds. NOW, THEREFORE, BE IT RESOLVED, by the Citv Council. City of Morro Bay. California that improvements to the Citv-owned triangle parking lot adjacent to the Embarcadero are herebv designated as a Parking In -Lieu Fund project in the amount of S399.000. PASSED AND ADOPTED by the Citv_ Council of the City of Morro Bav at a regular meeting thereof held on the 8th day of October. 2013 by the following vote: AYES: Irons. C. Johnson_. N. Johnson_. Smukler NOES: None ABSTAIN: Lease ATTEST: J fIE L. IRONS_. iV YOR ® • ,�,�, n — LVIOI/1 JABOUCHER. CITY CLERK ® RESOLUTION NO.47-13 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA CONFIRMING CITY OF MORRO BAY'S PARTICIPATION IN A COMMUNITY CHOICE AGGREGATION (CCA) FEASIBILITY STUDY THE CITY COUNCIL City of Morro Bay, California WHEREAS, the Morro Bay City Council has demonstrated_ its commitment to increasing energv efficiency, and to supporting more broad availability and use of local renewable power sources within the City; and WHEREAS. Community Choice Aggregation (CCA) is a mechanism through which an authority, represented by participating local governments within its jurisdiction; procures electrical power on behalf of its residential and commercial customers; and WHEREAS, Pacific Gas & Electric Company (PG&E) remains an important partner. responsible for reliable delivery of power and enhancement and maintenance of grid infrastructure: and ® WHEREAS. the Morro Bay City Council has identified CCA as a potential strategy that could be very effective in helping the City meet its AB32 greenhouse gas reduction targets; and . WHEREAS, Community Choice Aggregation, if determined to be technically and financially feasible. could provide substantial environmental and economic benefits to all residents and businesses in the City of Morro Bay: and. WHEREAS. Communitv Choice Aggregation provides the opportunity to fund and implement a wide variety of energy related programs of interest to the community; and WHEREAS. in addition to technical and financial feasibility, it is important to determine whether there is adequate public support for Community Choice Aggregation; and WHEREAS, it is intended for the CCA Exploration Advisory Committee (CEAC) to be an advisory group comprised of local agency staff. local elected officials or their designees. and members of the public with expertise in energv, financial and/or organizational mechanisms; with the charge to develop CCA feasibility_ information and to advise the Morro Bay City Council and participating local agencies; and WHEREAS. determining technical and financial feasibility requires obtaining and analyzing energy load data from PG&E, and conducting public education and outreach. 2 ® NOW, THEREFORE, BE IT RESOLVED by the Morro Bay City Council that: 1. The Citv of Morro Bay agrees to participate in an inter -jurisdictional effort to investigate the feasibility of Community Choice Aggregation (CCA), including support for efforts by a CCA Exploration Advisory Committee (CEAC) to guide preparation of a feasibility study, without obligation of the expenditure of any City Funds unless separately authorized in a future action by the Morro Bay City Council. 2. The Morro Bav Citv Council authorizes an individual (City staff or City Council member) to participate as a member of the CEAC. 3. The City Manager is authorized to execute the appropriate documentation to allow the CEAC and its technical consultants to request energy usage load data from PG&E so it may be analyzed as part of the feasibility study 4. Adoption of this Resolution in no way binds or otherwise obligates the City of Morro Bay to participate in a Communitv Choice Aggregation program. PASSED AND ADOPTED by the Citv Council of the Citv of Morro Ba_v at a regular meeting thereof held on the 10 h day of September. 2013, by the following vote. - AYES: Irons, C. Johnson, Ni. Johnson, Leage. Smukler, ® NOES: None ` ABSENT: None t JA E L. IIZONS, May r ATTEST: JAIME BOUCHER, City Clerk ® RESOLUTION NO.46-13 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA APPROVAL OF AMENDMENT #2 TO THE LEASE AGREEMENT FOR LEASE SITE 65-66/65W-66W BETWEEN THE CITY OF MORRO BAY AND ABBA IMANI AT 571 EMBARCADERO THE CITY COUNCIL City of Morro Bay, California WHEREAS; the City of Morro Bay is the lessor of certain waters and properties on the Morro Bay Waterfront described as City Tidelands leases and properties; and WHEREAS. Abba Imani is the lessee of Lease Site 65-66/65W-66W located at 571 Embarcadero: and WHEREAS. Abba Imani has certain lease improvement deadlines in his Lease Agreement that have since passed; and WHEREAS. in order for the Mayor to execute the Deed of Trust for the Lease Agreement on Lease Site 65-66/65W-66W as approved by Resolution 44-13 at the ® August 13. 2011 City Council meeting, certain other conditions regarding lease compliance are required to be corrected by Abba Imani. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay. California. that the attached Amendment T2 to the Lease agreement is hereby approved. BE IT FURTHER RESOLVED, that the Mayor is hereby authorized to execute said Amendment. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 27th day of August, 2013 on the following vote: AYES: Irons. C. Johnson, N. Johnson, Lease, Smukler NOES: None ABSENT: None htie L. Irons, Mavor ATTEST: ® JanAfe Boucher. City Clerk AMENDMENT #2 TO THE LEASE AGREEMENT FOR LEASE SITE 65-66/65W-66W, LOCATED AT 571 EMBARCADERO This Amendment #2 ("Amendment") is made and entered into as of this 27'' day of August, 2013, to the Lease Agreement for Lease Site 65-66/65W-66W dated October 12, 2010 by and between the City of Morro_ Bay, a municipal corporation of the State of California, hereinafter called "City" and Abba Imani ("Tenant") per Resolution No. 48-10 on October 11, 2010. WHEREAS, Section 1.01, the term of this lease is 25 years and commenced January 1, 2011, however the expiration date was incorrectly documented in the Lease Agreement as December 31, 2026; and; WHEREAS, in October 2010, the City entered into the Lease Agreement whereby Tenant was given a 25 year term based on investment in improvements, building permit obtained by July 1, 2011 and construction completed with evidence of an issuance of a Certificate of Occupancy for the premise by July 1, 2013; and, WHEREAS, Tenant has had a combination of delays and issues, some of which were outside of Tenant's control, to meet the deadlines established in the Lease Agreement; and, WHEREAS. Tenant has a non -conforming Real Estate business as an upstairs subtenant previously allowed under City Council Resolution No. 47-09, but Resolution 47-09's provisions expired in Fiscal Year 09-10; WHEREAS, Tenant in the past has failed to make restrooms available to the general public during business hours, maintain restroom signage in prominent locations, abide by all City sign ordinances, isand keep the premises fully occupied and open for the conduct of business as is required in the Lease Agreement; NOW THEREFORE, Tenant and City shall provide for the amendment of Master Lease as follows 1. SECTION 1.01 Term: The Termination date shall be amended to correctly read "December 31, 2035." 2. SECTION 3.01 Permitted Uses: The following paragraph shall be added to Section 3.01: "No later than February 28, 2014, non -conforming upstairs office use will be discontinued." 3. SECTION 3.03 Operation of Business — Hours of Operation: Tenant is required per Section 3.01 of this lease to operate the premises in an efficient and diligent manner and to keep the premises occupied and 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. Evidence of this shall be constituted by continued percentage -of -gross sales payments commensurate with past history of this lease site and percent -of -gross sales trends of similar lease sites along the waterfront. 4. SECTION 3.07 Compliance with Law: Section 3.07 of the lease requires compliance with all local, municipal, county, state, and federal laws. As such, the following paragraph regarding signage shall be added to Section 3.07 of the lease: r "Tenant shall ensure that no later than October 31, 2013 all exterior signs and advertising of any sort on ®premises shall comply with the City of Morro Bay's sign ordinance, Section 17.68 of the Municipal Code, including compliance with lighting and glare limits, as evidenced by a valid permit or permits from the City for all signs and lighting that has been installed. Said permit(s) shall be maintained for the duration of the lease." 5. SECTION 13.01 Construction of Improvements: Final date by which Tenant shall obtain a Building Permit shall be changed to "December 1, 2013," and final date by which Tenant shall obtain Certificate of Occupancy shall be changed to "February 28, 2014." 6. SECTION 13.02 Public Restrooms: Section 13.02 shall be changed in its entirety to read: "The downstairs unisex restroom on the premises shall remain unlocked and open for general public use during normal business hours, and no later than September 30, 2013 Tenant shall have two international restroom symbol. signs installed on premises; one clearly visible from the adjacent street/sidewalk area, and one clearly visible on or adjacent to the downstairs restroom door. In the case of a dispute over the location and design of the restroom signage, the Harbor Director shall be the sole determinate of the signs' size, type, and location." All other provisions of the lease shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date written ® above. CITY OF MORRO BAY Ja i Irons, Mayor' APPROVED AS TO FORM: Robert Schultz, City Att. r(eY ATTEST: 7S Jame Boucher, City Clerk El TENANT — Abba Imani ® RESOLUTION NO.43-13 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA SUPPORTING THE CALIFORNIA COASTAL COMMISSION STAFF RECOMMENDATION OF APPROVAL WITH CONDITIONS FOR THE MORRO STRAND STATE PARK CAMPGROUND PROJECT A-3-SLO-13-0203 THE CITY COUNCIL City of Morro Bay, California WHEREAS. the Planning Commission of the City of Morro Bay held a public hearing in the Veterans Memorial Building located at 209 Surf Street. Morro Bay. California, on March 6. 2013, and granted a Coastal Development Permit (CDP) -CPO-390 for the upgrade of 25 existing campsites plus the two camp host sites at Morro Strand State Park Campground to include recreational vehicle utility hook-ups in order to modernize services as well as increase visitation and revenue: and WHEREAS, following the approval of the upgrade project at Morro Strand State Park Campground, the project was subsequently appealed to the City of Morro Bay City Council; and ® WHEREAS; the Morro Bay Citv Council held a public hearing in the Veteran's Memorial Building located at 209 Surf Street, Morro Bay. California. on April 9. 2013 for the purpose of considering the appeals of Coastal Development Permit 4CPO-390-, and WHEREAS, at the Morro Bay City Council public hearing. the City Council denied one appeal, but moved to uphold the second appeal, denied the project without prejudice and requested the applicant work with the City- to develop a phased proposal with performance standards: and WHEREAS, the City Council also discussed the State Parks ability to forgo returning to the Morro Bay City Council and appeal the City's decision to the California Coastal Commission for a substantial issue determination/de novo hearing: and WHEREAS, during the time period between the April 9, 2013 City Council hearing and the California Coastal Commission hearing scheduled for August 15, 2013. State Parks has worked with the City of Morro Bay, local appellants and neighbors to address concerns; and WHEREAS, since the City's denial and in response to the substantial issues identified. State Parks has proposed several changes to their original project which include: 1. Adding 6 new overflow camping vehicle parking spaces 2. Reducing the maximum RV height limit restriction to 1226". 3. Limiting the length of RVs to 30'. ® 4. Phasing the landscaping and view shed enhancement work. 5.. Repairing and/or replacing the existing access staircase from Beachcomber Drive (at Orcas Street) and the underpass trail from Orcas Street, to the campground. 6. Creating a campfire etiquette and outreach program. 7. Reorienting existing bathroom lighting downward and away_ from the residents located to the east. 8. Continuing a policy of free day -use parking. WHEREAS, there were also additional issues raised by the appellants and neighbors that are not addressed in the Coastal Commission's Conditions of Approval for the project, but that the Citv of Morro Bay believes are important and requests the following should be added to the Conditions of Approval for Morro Strand State Park Campground project A-3-SLO-13-0203: 1. Removal of the fire rings at the converted RV sites. 2. Reduction of the number of converted RV spots from the proposed 27 to 20.- 3. Enhanced public access from Beachcomber Street and provide designated corridors through the park. 4. Expanded day use parking beyond the proposal. 5. Require a timeline for improvement of the restroom and showers and include interior landscape screening. 6. Preservation and designation of non -RV sites. 7. Preparation of a coastal bluff erosion plan. 8. Ensuring a view shed protection plan. NOW, THEREFORE, BE IT RESOLVED by the City Council of the Citv of Morro Bay that, with the above amendments to the Morro Strand State Park Campground project, the ® City Council is supportive of the project and urges the California Coastal Commission to approve the Coastal Development Permit No. A-3-SLO-13-0203. PASSED AND ADOPTED by the Citv Council of the Citv of Morro Bav at a regular meeting thereof held on the 13h day of August. 2013 on the following vote: AYES: Irons, N. Johnson, Leage, Smukler NOES: None ABSENT: C. Johnson (Abstain) JA7 L. IRONS. May r ATTEST: _�� & &.ts - DANA SWANSON. Deputy City Clerk ® RESOLUTION NO: 45-13 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA APPROVING AN APPLICATION TO THE STATE OF CALIFORNIA'S COASTAL CONSERVANCY FOR GRANT FUNDS THROUGH ITS CLIMATE READY PROGRAM THE CITY COUNCIL City of Morro Bay, California WHEREAS, the State of California's Coastal Conservancy approved a competitive grant program to provide financial assistance to local governments and nongovernmental organizations to act now to prepare for a changing climate; and WHEREAS, the goal of the grant program is to advance planning and implementation of on -the -ground actions that reduce greenhouse gas emissions and lessen the impacts of climate change on California's coastal communities and natural resources; and WHEREAS, the grant will support a wide range of activities including vulnerability is planning, development and implementation of adaptation strategies, science -based scenario planning, and demonstration projects that help inform others about successful and cost-effective adaptation strategies; and WHEREAS, the City of Morro Bay has an effectively certified LCP; and WHEREAS, the City of Morro Bay, recognizing the problems and issues associated with climate change identified in the grant application package desires to pursue a project that would result in the completion and submittal for certification by the California Coastal Commission of an LCP Amendment that would address such impacts; and WHEREAS, the City of Morro Bay will coordinate with the staffs of the State Coastal Conservancy, the California Coastal Commission and the Ocean Protection Council in undertaking the project, if approved. NOW, THEREFORE, BE IT RESOLVED that the City of Morro Bay City Council hereby: I. Directs the City of Morro Bay staff to submit a grant application package to the Coastal Conservancy to provide financial and planning assistance, in the amount of $200,000 to fund the project as more particularly described in the grant application package. 11 ® 2. Authorizes the Public Services Director of the City of Morro Bay to execute, in the name of the City of Morro Bay, all necessary applications, contracts and agreements and amendments thereto to implement and carry out the grant application package attached hereto and any project approved through approval of the grant application. PASSED AND ADOPTED by the Morro Bay City Council at a regular meeting thereof held on the 27 s day of August, 2013 on the following vote: AYES: Irons, C. Johnson, N. Johnson, Leage, Smukler NOES: None ABSENT: None ATTEST JAOtE BOUCHER, City Clerk r — &*t-f J-41�9� rL. IRONS, N4ayor r-1 u n LJ El RESOLUTION NO. 44-13 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA APPROVING THE AGREEMENT REGARDING DEED OF TRUST, GROUND LESSOR'S ACIKNOWLEDGEMENT AND CONSENT FOR THE LEASE AGREEMENT LEASE SITE 65-66/65W-66W WITH ABBA IMANI (571 EMBARCADERO) THE CITY COUNCIL City of Morro Bay, California WHEREAS. the Citv is the Lessor of property known as Lease Site 65-66/65 W- 66W located at 571 Embarcadero: and WHEREAS. Abba Imani. is the tenant on the lease: and WHEREAS. Abba Imani is refinancing said property to generate capital for improvements and repairs; and WHEREAS. Abba Imani's lenders are requesting approval of an agreement to provide them certain rights under the lease agreement to secure the loan: and WHEREAS. the Citv Attorney has reviewed and approved the attached agreement. NOW, THEREFORE, BE IT RESOLVED by the Citv Council of the Citv of Morro Bay. California. that the Agreement Regarding Deed of Trust. Lessor's Acknowledgement and Consent for Lease Site 65-66/65W-66W is hereby approved and that the Mavor is hereby authorized to execute said agreement. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the Lath day of August. 2013 on the following vote: AYES: C. Johnson, N NOES: None .ABSENT: Lease ATTEST: Johnson, Irons. Smukler DANNA SWANSON, Deputy City Clerk J IE L. IRONS. Mayor r RECORDING REQUESTED BY: WHEN RECORDED MAIL TO: Mid Coast Capital, Inc. P.O. Box 12360 San Luis Obispo, CA 93406 AGREEMENT REGARDING DEED OF TRUST GROUND LESSOR'S ACKNOWLEDGEMENT CONSENT, AND AGREEMENT THIS AGREEMENT is entered into this 13' day of, kaa5— , 2013, by and between the City of Morro Bay, a municipal corporation of the State of California, ("Ground Lessor'), Abba Imam (`Borrower"), and Exhibit A Lenders ("Lenders"). ® RECITALS A Ground Lessor and Borrower entered into a lease executed on October 12, 2010 ("Ground Lease"), for at least a term of twenty five (25) years commencing on Januaryl, 2011 and terminating on January 1, 2036. The Ground Lease is for Borrower's leasehold interest in the real property, in City of Morro Bay, San Luis Obispo County, California, commonly known as Lease Site 65-66/65W-66W. B. Under the provisions of Article 5 of the Ground Lease, Borrower has the right to encumber the Leased Property by deed of trust or mortgage, and Borrower intends to encumber the Leased Property under deed of trust, as a first lien, in favor of Lender, a true and correct copy of which is attached hereto as Exhibit "1" and by this reference is hereby incorporated (the "Deed of Trust"). The term Deed of Trust shall include all extensions, renewals, modifications, additions, and consolidations thereof. C. Lender is willing to loan ("Loan') funds to Borrower, and secure same by the Deed of Trust, subject to the existing terms of the Ground Lease, and under the additional terms and conditions herein set forth, provided Ground Lessor consents to the assignment of Borrower's rights under the Ground Lease and the lien of the Deed of Trust in a first lien priority, and agrees to the terms and conditions of this Agreement. Ground Lessor is willing to agree to the terms and conditions of this Agreement as set forth more fully below. u THEREFORE. THE PARTIES AiND EACH OF THEM. AGREE AS FOLLOWS: 1. No Encumbering of the Fee: Lender agrees and acknowledges that the Deed of Trust in favor of Lender as executed by Borrower, shall encumber only the Leased Property, and shall not be deemed an encumbrance on the City's fee interest in the Leased Property. Ground Lessor hereby consents to the first lien of the Deed of Trust upon the Leased Property. Ground Lessor agrees not to encumber Ground Lessor's fee interest in the Leased Property in any manner which would constitute a priority interest over the Deed of Trust. 2. Notice to Lender: For purposes of notice to the Lender under paragraph 4 of this agreement and Article 5 of the Ground Lease, the notice shall specify Loan number if provided to Ground Lessor by Lender and shall be sent to Lender's address as set forth by its signature below. Lender may, from time to time, change the foregoing address for receiving notice under this agreement, by delivering written notice of such change of address to the Ground Lessor as provided in Paragraph 16 below. 3. Request for Notice: Immediately after the recording of the Deed of Trust pursuant to this agreement, containing a power of sale as defined by California law, Borrower shall, at Borrower's own cost and expense, record, in the official records of the office of the County Recorder of San Luis Obispo, California; a written request, executed and acknowledged by Ground Lessor, for a copy of any ® notice of default and a copy.of any notice of sale under the Deed of Trust to be mailed to Ground Lessor at the address specified in paragraph 16 below, or as said address may hereafter be changed by Ground Lessor in accordance with said paragraph 16. 4. Notice Requirements: Ground Lessor shall simultaneously with notice to Borrower, also mad to Lender, a duplicate copy of any and all notices which Ground Lessor may, from time to time, give to or serve on Borrower pursuant to or relating to the Ground Lease and Ground Lessor shall undertake other actions required hereunder by Lender in regard to Borrower, the Leased Property, or the Ground Lease. Borrower shall at all times keep Ground Lessor informed in writing of the mailing address of Lender and any changes in Lender's mailing address which become known to Borrower. Any notices or other communications permitted or required by this agreement, or the Ground Lease, or by law, shall be served pursuant to paragraph 16 below. 5. No Modification of Ground Lease: Notwithstanding anvthing to the contrary in this agreement. Borrower and Ground Lessor hereby expressly stipulate and agree that they will not hereafter modify the Ground Lease in any way nor cancel the Ground Lease by mutual agreement nor transfer the Leased Property without first obtaining the written consent of Lender during the term and existence of the Deed of Trust. The parties recognize and agree that Ground Lessor's execution of this agreement shall be based upon the prior approval of the City Council for the City of Morro Bay, and that to the extent that this agreement is deemed a modification of the Ground Lease, that the execution of this agreement by the Ground Lessor shall be deemed to be in complete compliance with Section 12.07 of the Ground Lease. 6. ., Lender's Authoritv to Perform: Lender shall have the right to, but not the obligation, at any time during the tern of the Ground Lease and the term and existence of the Deed of Trust: ® (a) Do any act or thing required of Borrower under the Ground Lease, and any such act or thing ® done and performed by Lender shall be as effective to prevent a forfeiture of Borrowers rights under this Ground Lease as if done by Borrower itself; (b) Enforce its remedies under the Deed of Trust (`Enforcement Action "), including without limitation. realizing on the security afforded by the leasehold estate by exercising foreclosure proceedings or power of sale or other remedy afforded in law or in equity or by the Deed of Trust, and to: i) Transfer, convey or assign the title of Borrower to the leasehold estate created by the Ground Lease to any purchaser at any foreclosure sale, whether the foreclosure sale be conducted pursuant to court order or pursuant to a power of sale contained in the Deed of Trust or to anv transferee of Borrower's leasehold estate resulting from any Enforcement Action : or ii) Acquire and succeed to the interest of Borrower under the Ground Lease by virtue of any foreclosure sale; whether the foreclosure sale be conducted pursuant to a court order or pursuant to a power of sale contained in the Deed of Trust or resulting from any Enforcement Action; or iii) Acquire and succeed to the interest of Borrower under the Ground Lease by wme of a deed in lieu of foreclosure acceptable to Lender. Ground Lessor agrees that any Enforcement Action shall not constitute an event of default under the Ground Lease, nor shall Ground Lessor terminate the Ground Lease or disturb any such purchaser or transferee in obtaining the right and continuing as. ground lessee (as successor in interest to the Borrower) under the Ground Lease. This nondisturbance applies to any option to extend or renew the ® Ground Lease which may later be agreed upon by Ground Lessor and Borrower with the consent of Lender. This nondisturbance shall be effective and self -operative without the execution of any further instruments upon any purchaser or transferee succeeding to the interest of the Borrower's rights under the Ground Lease. Ground Lessor will recognize any successor to Borrower's interest in the Ground Lease, as the around lessee under the terms of the Ground Lease for all purposes thereunder and for the remaining term thereof. To the extent Lender or its affiliates is the purchaser or transferee, Lender or its affiliates shall be liable to perform the obligations herein imposed on the around lessee only for and during the period it is in possession or ownership of the Leased Property. In no event shall any purchaser or transferee be (a) liable for any prior act or omission of ground lessee unless and to the extent such act or omission is continuing following the completion of the Enforcement Action and notice of default was provided to Lender pursuant to paragraph 4 hereof. or (b) subject to any offsets or defenses that Ground Lessor may have against Borrower or (c) bound by any modification or amendment to the Ground Lease unless approved in writina by Lender. i. Termination by Ground Lessor: During the term and existence of the Deed of Trust, before Ground Lessor may terminate the Lease because of any default under or breach of the Ground Lease by Borrower, Ground Lessor must give written notice of the default or breach to Lender, in accordance with the provisions of paragraph 4 of this agreement and afford Lender the opportunity after service of the notice to: (a) Cure the breach or default within thirty (30) days where the default can be cured by the payment of money to Ground Lessor or some other person; (b) Subject to subsection (c) below; cure the breach or default within sixty (60) days where the breach or default must be cured by something other than the payment of money and can ® be cured within that time; or 3 ® (c) Cure the breach or default in such reasonable time as may be required where something other than money is required to cure the breach or default and cannot be performed within sixty (60) days provided that acts to cure the breach or default. including at Lender's option; commencement of an action as necessary to appoint a receiver, are commenced within sixty (60) days after service of notice of default on Lender by Ground Lessor and are thereafter diligently continued by Lender. Nothing in this agreement shall be construed as an obligation or requirement by Lender to cure any default of Borrower. S. Foreclosure to Forestall Termination: Notwithstanding any other provisions of the Ground Lease, Lender may forestall termination of the Ground Lease by Ground Lessor for a default under or breach of the Ground Lease as provided in Paragraph 7 above or by commencing proceedings to foreclose its Deed of Trust on the leasehold estate created by the Ground Lease. The proceedings so commenced may be for foreclosure of the encumbrance by order of court or for foreclosure of the encumbrance under the power of sale contained in the Deed of Trust or deed in lieu (the "foreclosure proceedings"). The foreclosure proceedings shall not, however, forestall termination of the Ground Lease by Ground Lessor for the default or breach unless: (a) The foreclosure proceedings, including filing of a notice of default, are commenced within ninety (90) days after service on Lender of the notice described in paragraph 7 hereof; and, (b) The foreclosure proceedings, after having been commenced, diligently pursued in the manner required by law to completion; and, (c) Lender subject to the cure periods provided in Paragraph 7 above keeps and performs all of 'the terms, covenants, and conditions of the Ground Lease requiring the payment or expenditure of money by Borrower, including but not limited to the obligation of Borrower to pay rent, until the foreclosure proceedings are complete or are discharged by redemption, satisfaction, payment, or conveyance of the leasehold estate to Lender. 9. Transfer of Lease Upon Foreclosure. Provided that Lender gives written notice of transfer to Ground Lessor setting forth the name and address of the transferee as well as the effective date of the transfer. the written consent of Ground Lessor shall not be required for transfer of Borrower's interest under the Ground Lease to: (a) A purchaser, including Lender or any of its affiliates, of the leasehold at a foreclosure sale of the encumbrance whether the foreclosure sale be conducted pursuant to court order or pursuant to a power of sale in the Deed of Trust; or, (b) An assignee the leasehold estate pursuant to an assignment in lieu of foreclosure, provided to the Lender under the Deed of Trust. 10. No Automatic Termination: Notwithstanding any other provision of the Ground Lease, should the Ground Lease terminate, as a matter of law, or otherwise because of the insolvencv or bankruptcy of Borrower or because of any non -curable default under, or breach of, the Ground Lease by Borrower, subject to paragraphs 7 and 8 above, at Lender's option, Ground Lessor will execute a new lease for said Leased Propem, to the Lender, its affiliates or transferee as a new ground lessee, provided: (a) A written request for the new lease is served on Ground Lessor by Lender within one hundred twenty (120) days after service on Lender of the notice describing the non -curable ® default in accordance with paragraph 2 hereof; ® (b) The new lease is for a term ending on the same date the term of the Ground Lease would have ended had not the Ground Lease been otherwise subject to termination, provides for the payment of rent at the same rate that would have been payable under the Ground Lease had the Ground Lease not been otherwise subject to termination, and contains the same terms, covenants, conditions, and provisions as are contained in the Ground Lease; (c) Lender, its affiliates or transferee, on execution of the new lease by Ground Lessor, shall pay any and all sums that would; at the time of the execution of the new lease, be due under the Ground Lease but for its termination and shall otherwise fully remedy, or agree in writing to remedy, anv other defaults under or breaches of the Ground Lease committed by Borrower prior to the termination that can be remedied; provided Ground Lessor delivered written notice of anv such defaults to Lender in accordance with paragraph 4 above; (d) Lender, its affiliates or transferee, on execution of the new lease, shall pay all reasonable costs and expenses, not to exceed a total of S1500.00, including reasonable attorneys fees and courts costs, incurred by Ground Lessor in terminating the Ground Lease, recovering possession of the Leased Property and preparing the new lease; provided Ground Lessor provides a detailed breakdown and invoices supporting such expenses in a form acceptable to Lender. 11. No Merger. Following the recording of the Deed of Trust, and until it is reconvened by Lender, there shall thereafter, during the existence of that encumbrance, be no merger, without the prior written consent of Lender, of the leasehold estate created by the Ground Lease and the fee estate in ® the Leased Property merely because both estates have been acquired or become vested in the same person or entity. 12. Limitations on Lender's Liabilinr Lender shall not be liable to Ground Lessor as an assignee of the Ground Lease unless and until such time as Lender acquires all rights of Borrower under the Ground Lease through foreclosure or other proceedings in the nature of foreclosure or as a result of some other action or remedy provided by law, this agreement or the Deed of Trust. Should Lender become the owner of the leasehold through foreclosure. an assignment or transfer in lieu of foreclosure, or under the provisions of paragraph 10, following Lender's assignment by Lender to, and the assumption by, a new third party ground lessee of this Ground Lease, or of the new lease under paragraph 10, ("Lender's Lease Assignment"), then Lender shall be relieved of any further liability under this Ground Lease, or any new lease under paragraph 10. arising from and after the date of such Assignment Any Lender's Lease Assignment shall subject to the prior consent of Ground Lessor, such consent to be based solely upon whether the assignee has the financial ability to pay and perform Borrowers' obligations under the Ground Lease, which consent shall not be unreasonably withheld or delayed. Ground Lessor shall not unreasonably withhold or delay its consent to a Lender's Lease Assignment provided, however, that the provisions of such assignment must be consistent with the terms and conditions contained herein. A request by Lender for approval by Ground Lessor of Lender's Lease Assignment shall be submitted to Ground Lessor in writing along with a fully executed copy of the proposed assignment In the event Ground Lessor's approval or disapproval of any Lender's Lease Assignment is not given within forty-five (45) days of submission of a proposed assignment to Ground Lessor, such assignment shall be deemed approved by Ground Lessor as required ® under Section 10.01 of the Ground Lease. 5 13. Lender: The term "Lender" as used in this Agreement shall mean not onlv the entitv that loaned money to Borrower as named as beneficiary, mortgagee; secured party, or security holder in the Deed of Trust, but shall also all subsequent assignees and holders of the security interest created by such instrument. 14. Disputes Between Ground Lessor and Lender: The parties agree that this agreement shall govem the rights and obligations of the parties, in addition to the terms; conditions; and obligations under the Ground Lease, during the term and existence of the Deed of Trust. To the extent that any conflict or ambiguity exists between this agreement and the Ground Lease; as between the rights of Lender and Ground Lessor, then the terms of this agreement shall be deemed controlling. 15. Attomev's Fees: If either Borrower. Ground Lessor. or Lender shall bring suit against the other for the enforcement of anv provision in this agreement or for declaratory relief in connection with this agreement or the Ground Lease, the prevailing parrin any such suit shall be awarded a reasonable attorney's fee and court costs which shall be taxed by the court as a part of the cost of such action. 16. Notices. All notices given under this agreement shall be in writing and be given by personal delivery, overnight courier (such as UPS, or Federal Express) or by registered or certified United States mail; postage prepaid, sent to the party, at its address appearing below its signature. Notices shall be effective upon the first to occur of receipt, when proper delivery is refused, or the expiration of fdrty-eight (48) hours after deposit in registered or certified United States mail as described above. Addresses for notice may be changed by any party by written notice to any other party in accordance with this Section. Ground Lessor agrees that this agreement, notwithstanding the ® requirements of Article 5, shall satisfy the notice requirement of Article 5 of the Ground Lease for purposes of Ground Lessor notifying Lender of any event of default of Borrower and no registration with Ground Lessor is required. 17. Ground Lessor's Estoppel Certificate. To induce Lender to make the Loan to Borrower, Ground Lessor agrees and represents and warrants to Lender as follows: (a) True and Complete Ground Lease. The Ground Lease which has been duly executed and accepted by Ground Lessor and Borrower and delivered to Lender constitutes the entire agreement between Ground Lessor and Borrower as it pertains to the lease of the Leased Property and has not been modified either in writing or omllv. (b) No Default. As of the date of this agreement, (i) all conditions and obligations to be performed by either Ground Lessor or Borrower under the Ground Lease have been satisfied; (ii) there exists no breach; default or event or condition which currently; or which with notice or lapse of time, would constitute such a breach or default under the Ground Lease; (iii) there are no existing claims, defenses or offsets against obligations of either Ground Lessor or Borrower under the Ground Lease, including any against rents due or to become due under the terms of the Ground Lease. (c) No Other Leases. There are no leases, options or other agreements regarding transfer of any interest in, or otherwise materially affecting the Leased Property other than the Ground Lease. (d) No Advance Payments. No rent or other sums payable or deposits under the Ground Lease have been paid in advance. E 4 (e) No Prior Assignments. Ground Lessor has not received notice of any prior assigmnent, hypothecation or pledge of Borrower's interests in the Ground Lease. (tf) No Pending Litigation/Violations. Ground Lessor has not received notice of any litigation pending; proposed, or threatened against or in connection with its fee interest in the Leased Property, or the Ground Lease or the Leased Propem,. Ground Lessor has not sent or received anv written notice that the Leased Property, or any pan thereof, is in violation of any laws, ordinances or regulations. Ground Lessor agrees for the benefit of Lender or any purchaser, from time to lime. on not less than 30 days prior notice from Lender, to deliver a certificate to Lender or purchaser, as the case may be, that confirms all of the above in this paragraph. 18. Authority. Each party represents to the other that the execution, delivery and performance by such parry under this Agreement is within such partys powers and authority and has been duly authorized; this agreement constitutes a legal, valid and binding agreement of each such part, enforceable against such parry in accordance with its terms, and any instrument or agreement required thereunder, when executed by the individuals duly authorized to sign on behalf of such part, will be similarly legal. valid; binding and enforceable; and if any of the foregoing is inaccurate or incorrect, in any way, such party will indemnify, defend and hold the other party, as appropriate, harmless from anv and all claims. losses or damages the other partmay experience or incur as a result such party's breach of this representation. GROLND LESSOR: City of Morro Bay By: Name: Jamie L. Irons Title: Mayor By: Name: Title: LENDERS: See Exhibit A Lenders Address for notices to Ground Lessor: City of Morro Bay 595 Harbor Street Morro Bay, CA 93442 Attention: City Attorneys Office Address for notices to Lenders: Mid Coast Capital, Inc. P.O. Box 12360 San Luis Obispo, CA 93406 Attention: Vincent Crooks 7 CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT < State of California ;> ss. Count-v of San Luis Obispo > S On F, s— 2S, 2 -13 before me, Dana Swanson. Notary Public > personally appeared J arht c Lce- l ro�S who proved to me on the basis of satisfactory evidence to be the persons) whose name(s> is >< ,> subscribed to the within instrument and acknowledged to me that he/sh&thev executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument < the person(*), or the entity upon behalf of which the person(s) acted, executed the instrument. `> I certify under PENALTY OF PERJURY under the laws of the State of California that the `< < foregoing paragraph is true and correct. < WTTNESS my hand and official seal. O DANA SWAWSON It COMM.81919584 mM i w s NMUY PW AaC�MmJa ` SAN WtS OSISPO=*M ' < `. ��G r✓ d^-S c-kJ My Catm 6 DEC. 31.2A14 (Signature of Notary Public) My commission expires on 12/31/14. This area for offtcial notarial seal c OPTIONAL ' Though the information below is not required by law, it mm-prove valuable to persons relying on the > < document and could prevent fraudulenr removal and reattachment ofthis form to another document. <` Description of Attached Document < > <, Title of Type of Document: �< Document Date: Number of pages ' Simer(s) Other Than Named Above: > Capacity(ies) Claimed by Signer ' Signers Name: > �� - ❑ Individual Top of Numb here < ' <, L II Comorate.Officer —Title(s): `< � Partner: ❑Limited El General < <> I I Attorney_ -in-Fact <, Trustee `< LJ Guardian or Conservator v< L7 Other: SiEmer Is RODresentm2: > < < [rl EXHIBIT A LENDERS Dale E. & June K. Oesterling, Trustees of the Oesterling Family Trust dated 6-19-1992 E. Oesterling K. Paul C. Bunker and Diana G. Bunker, Husband and Wife as Joint Tenants . i Paul C. Diana G. Bunker Date Date 7 l5 Date A. Connors and Sharon D. Connors, he Connors $evocable Trust dated December 17, 1997 A Connors Sharon D. Connors Howard Mark 7116 Date Becker Date n BORROWER: Address for notices to Borrower: Abba BY'� Title: c - 0 u Attention: ® RESOLUTION NO.42-13 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA APPROVING ADJUSTMENTS TO LEASE SITE MAPS, LEASE SITES 93-95 and 93W-95W THE CITY COUNCIL Cite of Morro Bay, California WHEREAS, on December 9. 1974, the City Council approved the "Lease Site Maps' dated November 1974: and WHEREAS. the "Lease Site daps' have been revised at various times by the Citv Council of Morro Bay to reflect new lease sites and adjustments in lease site boundaries: and WHEREAS. City desires to adjust the boundaries to accommodate uses authorized by UPO-342 and City_ Council Resolution 17-13 for existing and future leases_: and WHEREAS, the said map clearly identifies each lease site and its boundaries for ®, easy reference and access. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Morro Bay, California does hereby adjust the boundaries of lease sites: 93-95 and 93W- 95W. and herby designates the attached "Exhibit A -Revision to Lease Site Maps' as the official reference document for said lease sites. 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 July, 2013 by the following vote: AYES: Irons, C. Johnson_. N NOES: None ABSENT: None ATTEST: J e ouches City Clerk Johnson, Lease. Smukler i � - Z, 4,o6� J ie L. Irons. Mayo EXHIBIT "A" R� AlD g31S �� ® �® N28�9 p2 W z 3 O � d o in n o N r � N L W N W 2 N w J N G CJ O c z w o Za� za W c W n 0 W I - J s I w z J LAND LEASE SITES 93, 94 & 95 J c 6,307 S.F. C O SHORE CONTROL LINE 0 10 20 40 60 GRAPHIC SCALE IN FEET FORMER WATER LASE LINE _---------------- �-----' N13*30'46'W 93.79'M WATER LEASE SITES 93W, 94W & 95W 5,698 S.F. * UC. NO. 5702 o �� m 9TF �OF N1330"46'W 95.OT MICHAEL B. STANTON, PLS 5702 EXHIBIT wAm 3563 SUELDO ST. UNIT 0 REVISION TO LEASE SITES MAP SAN LUIS OBISPO, CA. 93401 LEASE SITES 93-95 AND ZAMMZZZNMROS-594-1960 93W-95W J09 NC. ', RESOLUTION NO.41-13 ® RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, ADOPTING 2013/14 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 liB Government Spending Limitation Section 8(c), states that proceeds in excess of user charges and user fees that exceed the costs reasonably home 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 I I, 2008. the City Council adopted Resolution No. 49- 08. which stated that "the Master Fee Schedule will be brought back in its entiretv for review annually." y NOW, THEREFORE, BE IT RESOLVED by the Citv Council of the Citv 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 9" day of July 2011 by the following vote: AYES: Irons. C. Johnson. N. Johnson. Lease. Smukler NOES: None ABSENT: None IIE L. TRONS, Vla or ATTEST: ® JAMIE BOUCHER. City Clerk Adopted ® Master Fee Schedule 11 l For the 2013/ 14 Fiscal Year Table of Contents Preface i All City Departments & Offices 1 Elections 2 Finance Department 3 Public Services Department: Building 4 Business License 8 Engineering 12 Planning 14 Water 18 Sewer 19 Police Department 20 Fire Department 25 Harbor Department 30 Recreation and Parks Department 33 Transit 37 2013/14 Resolution of Adoption 40 City of Morro Bay Master Fee Schedule For the 2013/ 14 Fiscal Year Preface Businss.Licene,ar`e'subjoeAlfees, except for those, related to,'" .sby eith&the April ` Consumer Price Index.(CPI); forLos Angeles -Riverside -Orange. County, or the'Engineering News :Record (ENR), unless prevented by law.. Business License adjusts based.on the Mar6.CPI, per.'. Municipal:.Code'Section 5.04.050. :'ENRfor April 2013 = 2.273% CPI'for April 2013 :':0.9%' " CPI for March 2013 = 1.3% The Master Fee Schedule -is updated' annually in June/July; therefore, any fees"adopted: after. itspublication, and prior to the next annual update, may not:be included. C City of Morro Bay Master Fee Schedule ® For the 2013/ 14 Fiscal Year All Departments & Offices First mailed: First 0.75 Appeal fee: Non-refundable appeal fee for non -land use administrative decisions $ 250.00 ® Notes: Unless specifically identified elsewhere (e.g., Public Safety), all departments and offices shall use these rates. City of Morro Bay Master Fee Schedule For the 2013/ 14 Fiscal Year Elections Filing fee:', Notice of intention to circulate petition - this amount is refundable under Elections Code Section 9202(b), with conditions $ 200.00 n LJ r City of Morro Bay Master Fee Schedule ® For the 2013/14 Fiscal Year Finance Department Copies: Budget document, per copy $ 25.00 Basic Financial Statements (City Audit),_per copy $ 25.00 Master Fee Schedule First time Utilitv Billin of shut-off notice at customer location Reconnection (MC 13.04.310) $ 46.00 A deposit is required from all residential tenants who sign up for utility service. Existing ' residential tenants, whose service is terminated due to delinquent non-payment, will be required to pay a deposit, in addition to the service reconnection fee, in order to restore service ONLY IF THE DEPOSIT HAS NOT PREVIOUSLY BEEN COLLECTED. If the residential tenant moves within the City limits, the deposit will transfer with the residential tenant to his/her new address. The deposit is applied to the closing bill when the residential tenant moves out; any remaining credit balance is refunded. If the tenant's status changes to an owner, the deposit is refunded. n U City of Morro Bay Master Fee Schedule For the 2013/14 Fiscal Year Public Services Department Building Building Constriction Permits: Valuation of from 0 - $3,000 (including electrical service less than 600 amp, and minor plumbing alternatives) $ 83.00 $3,001 and up.025 x total: valuation'as determined: by the Biailding,Official;(50% upon submittal/500/ at issuance); Demo w/o Asbestos Demo w/ Asbestos In -lieu Housino Fee (if unit not affordable housino) - Der T SMIP Category I (Residential) - .0001 x valuation SMIP Category Ih(Commercial).-'.00021 x valuation: , Unsafe Building repair, demolition or moving structure - charged at cost ;Special Inspection:and Plan Review Fees: Inspection Fees - outside of normal work hours - per hour, 2 hour minimum Re -Inspection Fees per hour...,: Property condition report for Condominium Conversions $ 18.00 Inspection for, which no fee is otherwise indicated - per hour, 1/2 hour minimum :. $.�: 76.00 Additional Plan Review required by changes, additions, revisions to the approved plans - per hour, 1/2 hour minimum $ 76.00 Use of outside consultants for special plan checking:.a4inspection charged at :actual. cost; - Penalty for commencing construction without permit(s). This is in addition to the standard building permit fees. $ 105.00 ` + 2,tiines permit fee + $52.00 per day after notice Retrofit upon transfer of sale . $ 34:00> General Plan Maintenance surcharge includes 1% for Geographic Information System (GIS) Maintenance e III City of Morro Bay ® Master Fee Schedule For the 2013/14 Fiscal Year Building Development Impact Fees3 Building fees, per square foot 4: Residential: UJ Multi -Family 5 $ 6.21 Commercials $ 3.90 Industrial s $ 1.44 Sinqle Family $ 1.20 fee: 1-1/2" meter 15,495.00 R 2" meter $ 17,783.00 3 Adjust annually based on change in Engineering News Record (ENR). a Fees are per square foot including garages (enclosed spaces). Single-family residential additions of 500 square feet or less are exempt (this'is for a ® cumulative five (5) year period). s Plus water and wastewater fees, which are based on meter size City of Morro Bay Master Fee Schedule For the 2013/14 Fiscal Year Building Development Impact Fees Public Facilities. Fees (pe'r square foot) Residential: Single;Family General Government $ 1.15 Police- $:::0.39 Parks $ 1.20 Fire"<.,_' . $<ai .0.42 Storm Drain $ 0.05 Traffic $ ' .. 1.86. . Water $ 0.64 WasEewater6 $ 1.79:, Multi -Family Residential: C;Pneral GnvernmPnf. �. 1.91 " Parks', $ 2.00: Fire $ 0.70 Storm`Drain' $ 0,06 Traffic $ 2.90 Water=6 0.97 Wastewater $ 2.66 6 Water and Wastewater actual fees are based on the meter size. Amount shown is estimated based on the fees divided by the estimated building square feet. LIM City of Morro Bay Master Fee Schedule ® For the 2013/ 14 Fiscal Year I] Building Development Impact Fees Public Facilities Fees,_per square foot (continued): Non-residential: Commercial: General Government $ 0.23 Parks Storm Drain $ 0.03 Water 6 $ 2.41 Fire $ 0. Traffic $ 2.01 Wastewater 6 $ 4.45 Parks $ 0.01 Storm Drain $ 0.03 Water 6 $ 2.41 6 Water and Wastewater actual fees are based on the meter size. Amount shown is estimated based on the fees divided by the estimated building square feet. City'of Morro Bay Master Fee Schedule For the 2013/14 Fiscal Year Public Services Department Business License? (Business License Business License fee - varies by type of license requested See Subsequent Pages Business License,listing,-per list Business License, transfer (MC 5.04.220) $ 2.00 Business''License, duplicate (MC 5.04.230) $' 2.00 Home Occupation Permit Processing Fee (one time fee) $ 65.00 Home Occupation Basic (annual) $ 135 00 Home Occupation Exception (annual) $ 57.00 LA With the adoption of the 2013/14 Master Fee Schedule, a $3 software maintenance fee was added to Business License fees. City of Morro Bay Master Fee Schedule ® For the 2013/14 Fiscal Year Public Services Department Business License? Exhibit A 113usiness License (MC'5:08): Ambulances License .. Annum $ 109.00 Apartments, Motel, Hotel, Multiple Dwellings, Rest Homes, Rooming Houses, Hospitals & Sanitariums Annum $ 135.00 Plus: Each Unit/Person cared for. Over 4 $ : 5.00 Art Hobby or Handicraft Show & Exhibitions Gross Receipts Minimum -Per Salesperson Annum $ 3.00. Auctioneers No Fixed. Place of Business Day $. .135.00- Fixed Place of Business Annum $ 135.00 Plus: Each Emolovee Annum $- 32.00 Bingo $ 66.00 Carnivals and Circuses Day $ 534.00 3-more sale Annum $ 135.00 Coin -Operated Vending;,Machine, Gross Receipts 0'.01 Contractors General Annum $ 266.00 One Job Only Job $ 135.00 Specialty• Annum $ 135.00 One Job Only Job $ 35.00 Delivery By Vehicle For One or More Vehicles Annum $ 135.00 Exhibiting Animals or Trick Riding, Wire Dancing or other Exhibitions (Exception No Fee or Admission) Day $ 56.00 Fire Wreck or Bankrupt5ale, Each Sale $ 189.00 ® Plus: In Excess of 3 Days Day $ 109.00 With the adoption of the 2013/14 Master Fee Schedule, a $3 software maintenance fee was added to Business License fees. City of Morro Bay Master Fee Schedule For the 2013/14 Fiscal Year Public Services Department Business License? Exhibit A (page 2) Flea Markets Daily Gross. Minimum per Salesperson Day $ 10.00 Garage.Sales No Fee ERR ;Merry-Go-Round;.^Revolving Wh eFChute, Toboggan, Slide, Mechanical Riding Contrivance or Pony Ride Day $ 56:00 Money Lenders & Pawnshops $ 537.00 "Non -Profit Organizetion's;' Ezempt. Peddlers, Solicitors, or Itinerant Merchants Peddlers i ' r Day 4, - $ 1.,56.00: Solicitors Day $ 109.00 Rlus: Each Employee, ',53 00 Itinerant Merchants Day $ 56.00 17 Week $ 109.00'.; Month $ 162.00 Quarter _$ 26.00 . 180 days $ 266.00 Public Utilities Annum `; ..$ 135:00 Plus: Each Employee Annum $ 32.00 Private Patrol Annum $ 67.00 Real Estate Calif. LicensedrBroker C ';Annum,, $ 1,35:0.0 `,'• Each Salesman or Agent Annum $ 32.00 Each Emolovee, 'Annum!*- $ ; 23.00 With the adoption of the 2013/14 Master Fee Schedule, a $3 software maintenance fee was added to Business License fees. LI r City of Morro Bay Master Fee Schedule ® For the 2013/14 Fiscal Year V I El Public Services Department Business License? Exhibit A (page 3) Secondhand Store or Junkdealer Annum $ . 135.00 Plus: Each Employee Annum $ 32.00 Skating Rink.', Annum $ 135.00. Plus: Employee Annum $ 32.00 Taxicabs License Per Cab Annum $ 73.00 Driver Annum $ 10.00 Tent Show or Itinerant Show (Exception No Fee or Admission) Day $ 135.00 Trailer House, RV or Mobile Home Park Rental Spaces 1-4 Annum $ 135.00 Plus: Additional Space Annum $ 5.00 Undesignated Professionals Annum $ 135.00 Plus: Each Employee Annum $ 32.00 Wrestling or Boxing Show Day $ 56.00 ' With the adoption of the 2013/14 Master Fee Schedule, a $3 software maintenance fee was added to Business License fees. City of Morro Bay Master Fee Schedule For the 2013/ 14 Fiscal Year Public Services Department Engineering Engineering ; . ` . k Subdivisions, commercial or multifamily are typically more complex, and require more review. flood Haiard�bevelopment.Permit (MC 14 72.040)s Permit, minimum fee 8 8'9 $ 190.00 Flood Plain -Letter . - $ 95 00' Subdivisions: . Final Map -.Tract, minimum fee (MC 16.24:040J) 8 & 9 :" $ 1,222 00.. ' Final Parcel Maps with Improvements, minimum fee 8 89 $ 314.00 C: 'Final Maps Amendment Review, minimum fee 8 & 9 $ 263.00' Inspections/Plan Review Inspeetlon5' Cost of service.: ' Public/Subdivision Improvement Plan Check, minimum fee8&9 $ 450.00 Abandonment. Process Street/R-O-W Abandonment Process9 $ 898.00 EncroachmentPermitO (MC 13.16.140) Regular $ 129.00 Special . "Engineefed'Structures, mihirnum fee 8. $ 282.00 Non -Engineered Structures, minimum fee 8 $ 129.00 Annual Utility Encroachment Permit Wide Load Permit with Traffic Control Plans - Per Year $ 90.00 Wide Load'•Permit with T,raffic.Control.Plans - One Time $ 16 00 Street & Sidewalks: Exceptlori Applicafion , . s 160.00; .. s Time and materials costs may be added to minimum, when actual cost exceeds the minimum fee. 9 With the exception of Wide Load Permits, Encroachment Permits fees adjust annually based on the April Engineering News Record (ENR-CCR) . City of Morro Bay Master Fee Schedule ® For the 2013/14 Fiscal Year Public Services Department Engineering Stormwater fees: Single family: Planning review of preliminary stormwater. plan $ . 142.00 Building permit review of stormwater plan $ 186.00 Inspection of stormwater facility/erosion control $ 99.00 Other (oer 6,000 so ft lot area, or fraction thereof): Building permit review of stormwater Trees: Removal Permit to trim, brace or remove, MC n LJ 1 256. City of Morro Bay Master Fee Schedule For the 2013/14 Fiscal Year Public Services Department Planning =Affordable Housing In -Lieu Funding'Assistanse"fee Applicants requesting assistance for affordable housing projects or programs with affordable housing in -lieu fees shall pay a base deposit fee of $500 to conduct the necessary financial analysis to determine the justification of the fee assistance. All expenses associated with further financial analyses (real estate financial pro forma) shall be paid by the applicant and deposited into this fund to cover all City expenses. These fees will either be reimbursed to the applicant or credited toward other project fees, if the City Council determines that financial assistance from the housing in -lieu fee fund is justified. ,'Coastal' Permits: Coastal Permit in combination with Conditional Use Permit No Fee 'Coastall' Permit -.(Administrative) $; 704.00 Single Family Dwelling, Multiple Dwelling, Office, Commercial, Convention, Industrial & Institutional $ 3,044.00 Additions greater than 10% to Single Family Dwelling in Coastal Appeals area (Planning Commission) Emergency Permit (excluding required regular CDP) $ 634.00 ' >-"•Other Administrative ` Tree Removal,. private $.. 242.00 Environmental '. "' Categorical Exemption $ 86.00 , I ' , Negative Declaration t 1:047.00 Environmental Impact Report - contract amount plus 25% attorney fees on all discretionary projects - cost $ 4,556.00 Department of'Fish &Game CEQA document fee_(pass`through see'. :,www. dfg. ca. gov.:for<fee) 10 Ll City of Morro Bay Master Fee Schedule ® For the 2013/14 Fiscal Year Public Services Department Planning - Letter regarding land use confirmation or other research per hour $ 86:00 Development Agreement $ 4,556.00 Street Name/Rename Processing $ 403.00 Fine, in addition to permit - $100.00,plus two times permit fee; plus $50 per day after notice. Deposit required. Request for Averaging Front Yard Setbacks (sq ft) $ 110.00 Appeals of City decisions excluding Coastal Permits in Coastal Appeal Jurisdiction - refundable if applicant prevails $ 250.00 .. Copy of Planning Commission DVD $ 12.00 Notification fees: Planning Commission hearings $ 138.00 Administrative hearings $ 87.00 Special Event based on actual personnel cost Piannea veveiopmentizone:•. Projects with planned development overlay (for construction of SFR in PD overlay zone) see CUP fees; for all other projects, if within waterfront master plan area, charge time -and materials plus a deposit that is to; be tiered based on size of the project (Council action 8/23/10). City of Morro Bay Master Fee Schedule For the 2013/ 14 Fiscal Year Public Services Department Planning Sign'. Permits. Sign permit $ 86.00 Sign Exception (CUP) $ 714.00 Pole Sign (CUP) $ 714.00 Fines:. T.. Temporary, beyond time allowed by Ordinance -,per day after notice $ 10.00 Permanently attach' d' &signs w/onpermit ;per day.after notice Subdivisions: Note • [1,!subdivisions maybe billed at di -ect cost Tentative Parcel Map Application $ 3,245.00 Tentative Tract Map Application up.to 10; lots/plus $TOO ;OOper lot over 10 $ . 4,327.OQ Amendments to Existing Tract or Parcel Maps $ 2,323.00 Conine Adjustment $ 762:60 Certificate of Compliance (legal determination) - fee plus a . deposit for extensive research as needed $ 525.00 Lot Mergers Text Amendments: 7nne Champ- - dennsit nliis roSft 4:556 Off W Annexations - deposit plus cost $ 4,931.00 Time Extensions:: Time Extensions for CUP, regular Coastal Permits and Variance (Planning Commission) $ 525.00 - Time.Extensions for Tract.Maps and Parcel; Maps Time Extensions - Administrative $ 44.00 C City of Morro Bay Master Fee Schedule ® For the 2013/14 Fiscal Year Public Services Department Planning A El Note: A# Use Permits may be billed at direct cost at the discretion of the Public services Director - scheduled fee would then be deemed as a deposit Note: All refund requests must be submitted in writing to the City and must include the permit number. Conditional Use Permit $ 3,917.00 One SFR in a Planned Developed Zone or Bluff Area $ 594:00 Occu�ancy changes Commercial/Industrial (no construction $ 505.00 MUUll VI IY V'l IVll-CVI' I I VI'11III 1y-UDC]-�U'Ul1U1 CJj IIVI-ODUII'ly-U11 LY13I-1'ICW uses $ 505.00 Minor Use Permit $ 541.00 Temoorary Use Permit - lonaer than 10 days_ It 541 on Outdoor Display and Sales and Outdoor Dining $ 863.00 Administrative Temporary Use Permit 7 consecutive or 10 non- consecutive days per calendar year $ 44.00 Amendments to Existino Permits (Plannino Commission) 5 1.942.00 Minor Amendments to Existing Permits (Administrative) $ 184.00 Variance $ 2,413.00 Variances processed with other permits - $ 725.00 Minor Variance $ 399.00 City of Morro Bay Master Fee Schedule For the 2013/ 14 Fiscal Year Public Services Department Water Water service. . A'pplication (MC 13.04 07) $ 25.00 Connection Within' Citywill~be chargecJ:atcost (MC;13.04.100)Li Connection - Outside City will be charged at 2 x cost (MC 13.04.100) Connection Subdivisions will be charged at owner expense (MC 13.04 100) Main Extension ADDroval will be charoed at cost (MC 13.04.120) 3/4 inch to 5/8 incl 'meter (water fee,plus `wastewater fee) $ 1,35o,66 1 inch to 1-1/2 inch meter $ 1,811.00 2 inch meter and above $ 'Cost of service : < Meter Box Installation $ 218.00 Temporary Water'Meter Rental $ y 87 00 Water Meter Re -Read $ 26.00 `Reconnection (MC:1304.310)-- $. .46:00 After - Hours Water Meter Turn Off/On $ 117.00 Trop:in"'meter fee; up to 2'inches $ 75 x regular meter. fee Relocation of water meter for customer convenience $ 1.5 x regular meter fee : Water meter lock -;cost of replacin damaged dock $ Lock + $46 Circuses, Carnivals & Traveling Shows —Fire Hydrant (MC 13.04) Fire Hydrants - Contractor. U'se (MCb13.04.360) Meter Installation and Removal - per Council Resolution; will be charged at cost Meter Use. per day" , $ t 4.00: ,, Water Cross Connection (MC 13.08.07OB): Certificate of Compliance Water Usage (MC 13.04.220, sewer rates not included): Per Council Resolution _ Water Deposit: Refundable deoosiL—residential tenants -only - 100.00` <. City of Morro Bay Master Fee Schedule For the 2013/14 Fiscal Year Public Services Department Sewer Sewer: Connection Permit - fee.plus staff time for inspection (MC 13.12.010) $ 76.00 Extension _ pro rated -to be -charged at cost (MC,13.12.050) Use of Existinq Sewer Permit - per Council Resolution (MC 13.12.090) Discharge Fee - Recreational Vehicles and Campers (MC 13.12.250A, no charge) Discharge Fee - Tank Trucks and Commercial per truck, for each, 1,000 gallon capacity_(MC 13.12.250B);, $ 7.00 Private Facility (MC 13.12.280, no cha Raisinq Manhole to Grade - cost of providing service Spill in Right -of -Way Cleanup - cost of providing service C City of Morro Bay Master Fee Schedule For the 2013/14 Fiscal Year Police Department (See Notes) Permits & Licenses:i Sex/Narcotic Registrant Fee $ 0.00 Tow/Taxi.Service Provider Application Fee $ 59&00 Taxi Operator Permit Application Fee $ 381.00 Taxi Operator Permit Application Renewal. Fee,' $ 64A0 Second Hand Dealer Permit - City Application Fee (does not include Department of Justice fee) $ 318.00 Second Hand Dealer Permit renewal`- City Application Fee (does' not include,DepartmentofJusticefe°$ 158.00 I* Massage Therapist/Parlor Permit Application Fee Police Copies W ....: $ 132.00 Report/Document Copies - per page Support Services Manager.Activityr Digital Photo Reproduction to CD - per hour, 1 hour minimum $ 53.00 Audi o/Video-TapeReReprocluction =.•per Hour; •l,hour._minimum. ;.$ 53:00, Record Searches/Reviews/Clearance/Responses - per hour, 1 hour minimum $ 53.00 OWcer Actiwty: Equipment Citation Sign Off $ 15.00 .Vehicle Impound Fee Administrative Costs (CVD 22850:5) ` •, 5_' $..' 7. 158 00.: Abandoned Vehicle Removal (junk vehicles/parts) $ 318.00 ItjVenile In).Custndv Service . oeir hour ,: - ' .; Fig (l City of Morro Bay Master Fee Schedule For the 2013/14 Fiscal Year Police Department (See Notes) Firearms - Concealed Weapons Permit (does not include DO] or other fees) $ 106.00 Renewal of Concealed.Weapons Permit (does not include.cost of ID card) $ 26.00 Subpoena Duces Tecum (does not include costs of report, etc.) $ 15.00 Delinquent Parking Citation Copy: Repossessed Vehicle $ 15.00 Booking Fees (current cost- -cost is dependent on charges by County) $ 115:00 Live scan Finoerorint Fees (PC 13300(e)) $ DO] + Cost Recovery DUI Emergency Response Actual Cost False Alarm Response (after 3rd false alarm in a year) $ 212.00 License $ 0.00 City of Morro Bay Master Fee Schedule For the 2013/14 Fiscal Year Police Department (See Notes)' Packing Fines MBMC Vehicle_Code. Parking within a Parkway 10.40.020 $ 53.00 No Parking Areas _ 10:40,030 $ 53.00 ' Posted Restricted Parking 10.40.040 $ 53.00 72-Hour Parking 10.40iO60 Vehicle Repair on Public Street 10.40.080 $ 53.00 Parking on.Grade without Turning Wheels - ' 10:40.Og0 $ 53.00 . . Parking within Space Marking 10 40.1 $ 53 00 Curb Markihs. red: ellow etc 10.40:k2O 53.06 Parking in Passenger Loading Zone 10.40.150 $ 53.00 _ `. ° Parking in Alley 10:40;160 $. 53.00 •, Limited Time Parking 10.40.170 $ 53.00 Violating Diagonal' Parking 10:40:190 $ . 53.00. `- No Stopping in Designated Area 10.40.200 $ 53.00 Failure to Pay Established,Fee 10.44t070 r: .$ ,.:. 53.00. :, Failure to Display Receipt 10.44.070 $ 53.00 Overnight Camping. 08.24:010 Expired registration 4000(a) $ 53.00 P.arking_ih Fire Lane. 22500:1: Blocking Driveway 22500e $ 53.00 Blocking Wheelchair Access 22500L. < $' .- 109.00 Parking within 15' of Fire Hydrant 22514 $ 117.00 Blocking'Sidewalk. 22500f Blocking a Bus Stop 22500i $ 90.00 Blocking' Interse"ctioh Gridlock 22526 $. 186.00 Curb Parking 18" or Wrong Way 22502A $ 53.00 -: Parking in Bik6:Lane 2.1211b;- '$, .53.00.,'. Vehicle Abandonment on Street 22523 $ 328.00 Hanrliran 7?Sn7-RA`'_ .t .'fin City of Morro Bay Master Fee Schedule For the 2013/ 14 Fiscal Year Police Department Notes Permits& Licenses: - . Tow/Taxi Service Provider application fee is the fee for application by a tow service provider or taxi service applying to do business in the City (does not include a business license fee). The application includes review by police staff, processing of application, inspection of tow/taxi vehicle(s) and in case of two service provider, inspection of impound yard. Massage Therapist/Parlor permit application fee is an application fee to operate a new• massage business (does not include City business license fee or DOJ fee). Includes police staff time to receive. and review application, conduct background checks as required, and business inspection. Police Co ® Support Services Manager Activity: All record searches, reviews, clearance letters, responses, copies of photos, audio Officer Activity: Abandoned Vehicle Removal— this is a charge levied against the registered cr legal owner of a vehicle whoabandons the vehicle or vehicle.parts on a public street or place open to the public Juvenile in Custody - this hourly fee may be charged to parents when a juvenile has been taken into custody, and the officer or employee must "baby-sit" the juvenile until the parent arrives. This hourly fee begins after the juvenile is processed, and the parents, or responsible adult, are called to respond. This fee is intended for parents or responsible adults that have extended response times, which requires an officer or employee to monitor the juvenile. City of Morro Bay Master Fee Schedule For the 2013/14 Fiscal Year Police Department Notes dOther PWici7Servicesc Firearms seizure, storage and release administrative fees -.PC 1202.3 (now PC 33880) was enacted in 2005 and requires any person, who claimed title to any firearm that is in police custody and who wishes to have a firearm returned to him/her, must make application for a determination by D03 (Department of Justice) as to whether he/she is eligible to possess a firearm. PC Section 12021.30)(1) allows the City to charge for administrative costs relating to the seizure; impound, storage or release of firearms. State Mandated'Costs: Concealed Weapons Permit - PC Section 12054(a) Subpoena;Duces Tecurn EC 1563(b)(1) Delinquent Parking Citation Copy VC Section 40206.5 -kepossessed.Vehicle>-"GC Sec6,6nr41612.. Booking Fees - set by County GC 53150 & 29550.1 Livescan.Fingerpriht Fees - PC 13300(e) Criminal History Review - PC 13322 Cost Recoverv: DUI Emergency Response - MBMC 3.40.030 False Alarms Response- `MBMC 9.22.026, Services: Acceptance of Civil=Subpoena/SDT;fees are set by statute or'other authofity -.'Code . #1563(b).(1)EC Safekeeping Property Storage beyond 30 day written notice does not include outside storage fees U r City of Morro Bay Master Fee Schedule For the 2013/ 14 Fiscal Year Fire Department (See Notes) Permits:' Permit Inspection Fees: Any single permit identified in Title 24 CFC and not specifically addressed in the Master. Fee Schedule S .64 00 Any combination of permits shall not exceed $ 191.00 Special Occurrence or Use Permit (equipment& personnel charges additional) $ 64.00 I Permits: Aircraft Landing Permit, per occurrence (required Fire standby equipment & personnel charges additional) $ 64.00 Knox Box installation/inspection, first box $ 42.00 More than one Knox Box Engine or Truck: per hour, per vehicle (personnel charges additional) $. 122.00 Squad/Rescue: per hour, per vehicle (personnel charges additional) $ 90.00 Utility/Command Vehicle: per hour, per vehicle (personnel charges additional) $ 42.00 Personnel charges: per hour -,.per person- 2 hour minimum, unless otherwise specified, at -current productive hourly rate Plan Review Fees: Fire Plan.Concept Review - person neL cha rges as.specified in Equipment and Personnel.Charges Plan Review - A charge of 0.3% of total valuation plus use of outside consultant for Plan Review & Inspection is based on .actual cost plus fee $ 64.00 Additional Plan Review required by.changes, additions or revisions to approved plans, - personnel charges as specified in Equipment & Personnel Charges ona,hourly basis plus -actual cost of. outside consultant for Plan Review City of Morro Bay Master Fee Schedule For the 2013/14 Fiscal Year Fire Department (See Notes) F. ire,Protection e . wr System & Equipment Fees: Fire Sprinkler System-Installationjhspectiorr . (abo5e'gLagoi ) Residential - fee plus $0.55 per head Commercial - fee plus $0.55 -per, head. Commercial projects or tenant improvements under 1,000 sq ft - fee plus $.055 per head "Underground'.water line inspection Fire Alarm System Installation Inspection 0 _ 15•devices ' 16 - 50 devices 51 - 100 devices ^; 101 - 500 devices 501 and.up;.fee plus;$130 for,each.additional 100.devices. Specialized Fire Protection System Inspection, e.g., Halon, Dry Chemical Commercial Kitchen Hood System Flammable or. Combustible TankLLlnstallation Inspection $_ 64.00 318.00, 103.00 ra nn : 64.00 106.00 201.00 291.00 64.00 On -site Hydrant System Installation Inspection $ 64.00 <;Use of Outside Consultants for Plan, Review & and/or.Inspection fee i'plus'actual cost .: . 64.00;'': Request for Building Fire Flow Calculations Request for. Hydrant'Flow Information Request for Hydrant Flow Test - fee plus personnel & equipment as specified in Personnel and Equipment Charges, 1 hr min. .. Enaine comoanv business.insoection. 1st and 2nd inspections 3rd and suhsenuent insnPrtinns $ 37.00 City of Morro Bay Master Fee Schedule ® For the 2013/14 Fiscal Year Fire Department (See Notes) New and annual 3rd and subsequent inspections $ 79.00 Administrative citation for failure to correct a.violation shall be charged per 1.03.050 of the Municipal Code $ 106.00 Administrative citiation for second violation of the same ordinance in the same year shall be charged per 1.03.050 of the Municipal Code $ 212.00 Administrative vitiation -.for third and each additional violation of the same ordinance in the same year shall. be charged per 1.03.050 of•the Municipal -Code $ 530.00 Annual weed and hazard abatement inspection fees: 1st inspection for compliance: no.charae 2nd and subsequent inspections $ 79.00 Administrative citation for failure to correct a violation'shall be charged .per 1.03.050 of the Municipal Code $ 106.00 Administrative vitiation for second violation of the same ordinance in the same year shall be charged per 1.03.050 of the Municipal Code $ 212.00 Administrative vitiation for third;and each additional violation of the same ordinance in the Isame year shall be charged per 1.03.050 of the Municipal Code $ 530.00 11 City of Morro Bay Master Fee Schedule For the 2013/14 Fiscal Year Fire Department (See Notes) Incident Response.Fees:. Hazardous Material/Chemical Incident: No charge first half hour(excludingnegligent/intentional•acts) Each additional hour, or fraction thereof, will be charged as specified in the Personnel and Equipment Charges plus the cost of any materials �,;. Negligent Incidents? • - ' Response due to negligent/malicious act (e.g., DUI traffic accident, climber on Morro Rock, incendiary fire, negligent hazardous material incident, negligent confined space incident, etc.) -Two hour minimum fo• be charged as,specified by, Personnel & Equipment Charges plus�any material costs and contract services used. Excessive or malicious false alarms: Emergency response due to "Failure to Notify" when working on or testing;fre/alarm system 0.5 hours minimum to be charged as specified by Personnel & Equipment Charges. Malicious False Alarms-:5"hour. minimum to be.cha'rged as specified 'by-- Personnel &Equipment Charges plus any material costs Alarm system malfunction resulting in 2 in 30 days or 3 in 12 months - charged as specified by Personnel & Equipment Charges plus any material costs. Other Fire Services Copy of response report, per report $ 27.00 _Additional copies; per page. r Cause & Origin investigation reports, per report $ 112.00 I ' Non -renewal of "reauired annual' Dermit - charae.double'oermit fee rate . Failure to obtain permit - charge double permit fee rate Missed site inspection appointment : $ 41.00' Failure to meet permit requirements/requiring re -inspection $ 41.00 r 211 City of Morro Bay Master Fee Schedule For the 2013/ 14 Fiscal Year Fire Department Notes Permits - Californ See operational and construction permits identified in the California Fire Code, Appendix Chapter 1, Section 105 Plan Review Fees Plan Review Fees are calculated based on total valuation to recover the cost of providing service. Use of outside consultant for Plan Review and/or Inspection to be $60 plus actual cost of consultant. All Plan Review Fees shown are minimum amounts, based on average . processing. Large or complex projects maybe subject to increased fees based upon time, costs, or equipment costs as shown per Equipment & Personnel Charges. E City of Morro Bay Master Fee Schedule For the 2013/14 Fiscal Year Harbor Departmentlo (See Notes) Vessel fees: Commercial fishing slips - monthly rate (per foot) $ 4.10 Commercial fishing -slip -waiting list deposit . $ Transient slips - monthly rate (per foot) $ 8.20 Transient slips daily,rate (per. foot) $ 1.10 Head Float Berth - monthly $ 182.10 Daily.T Pier rate/floating dock - fir4'consecutive 90 days.(per-foot). City moorings - monthly $ 200.00 City ",moorings priv80. ate -tackle :monthly' $ 00 . . ` A1-5 Anchorage Area - 1-5 days (per foot) $ 0.00 CAi-5 AnchorIage�Area after"5 days.. er foot) $ ` = 0.20` City -owned moorings - daily (per foot) $ 0.25 Monthly impound.rate (per:foot)_(non-impounded"vessels)'. - $ 7.00 {P -. Impound mooring rate - daily (per foot) (impounded vessels) $ 0.65 Temporary Moorage - large; vessels/equipment (per day).. $ 1"62:00 Dry storage daily_ $ 2.80 Mooring transfer fee (flat rate) $�1072.00 . Service fees: T,=Pier,eleetncal :daily 71 Electric cord replacement $ 155.00 T.hoist per use $ 11.00 ' T-Pier hoist -per day $ 21.00 Fishing unloading per hour" $ 72:00' Wharfage - per ton $ 0.85 10 Beginning with the 2013/14 Master Fee Schedule, the Harbor Department will use the Engineering News Record (ENR) factor for increasing fees. City of Morro Bay Master Fee Schedule ® For the 2013/14 Fiscal Year Harbor Departmentlo (See Notes) Liveaboard fees: Permit fee - biennial $ 55.00 service fee - moorings $ 15.50 Lease site adm in istation /services fees: Master Lease Approval $ 810.00 Reouirinq City Council approval 405.00 ® Vessel assistance: Each additional Officer - per hour $ 68.00 Launch Ramp parkirig fee: Per hour $ 1.00 Failure to pay established fee $ 54 Annual fee $ 100.00 ° Beginning with the 2013/14 Master Fee Schedule, the Harbor Department will use the Engineering News Record (ENR) factor for increasing fees. U City of Morro Bay Master Fee Schedule For the 2013/14 Fiscal Year 41 Harbor Department Notes Any account 'pasf.due over 10 days on a. monthly basis.will be charged.`a;10%.penalty.late fee assesse&on the, total balance, due .on the: account Vessels requiring non -emergency assistance more than once in any six-month period may be charged a minimum of 4.5 hours at the set rate. All -dockage is.based on'a 36' minimum vessel length_or':lehgth.of the. -slip, whichever is larger.: Temporary moorage related to marine construction equipment or vessels of unusual size requiring special accommodation - see fees for Temporary Moorage - Large Marine Equip. or Vessel/Equipment. A 10% discoont is'a`vailable 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 Direstor:may waive dockage,fees for Tall Shipsvisiting, 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. Annual permits may be prorated to the nearest month. Any, liveaboard application, submitted:.during the, periodiJanuary 1 through:June 30, is good'' only'for. that fscal year and the following fiscal year., but'will be prorated, byreducing the liveaboard,application•.fee, stated herein, by.25%. u `�] City of Morro Bay Master Fee Schedule For the 2013/14 Fiscal Year Recreation and Parks Department Facility Rentals Non -Profit and Non-resident For Profit Resident Groups Groups Groups COMMUNITY CENTER Auditorium $.48/hr $76/hr $111%hr Auditorium. one-half $31/hr 146/hr 567/hr VETERAN'S MEMORIAL BUILDING Assembly, w/o kitchen $25/hr $34/hr $44/hr Complete. w/o kitchen $28/hr t38/hr tSO/hr 21-30 Note: based on number of participants "Kitchen only rentals permitted Monday - Friday; weekend rentals must be combined with room rental Deposit: $150, no alcohol or live music Unscheduled. ove time: $44/hr based size: fee: $8.00, non-refundable 201 or more participants: $106 Cancellations: 20% charge of invoiced costs Building set-up/breakdown:. $23/hr Veteran's Memorial Building stage use, set-up and breakdown: $81 flat rate City of Morro Bay Master Fee Schedule For the 2013/14 Fiscal Year Recreation and Parks Department Public Area Use Permits Non -Profit and Non-resident For Profit Resident Groups Groups Groups [Del' eI Mar'P.ark{Hillside'oCMeadow $50/Permit $. 7/Permit' $217/Permit` Multi -Area, Entire Park, Multi Day Event $136/Day+Permit $136/Day+Permit $136/Day+Permit Del Mar. Basketbal6C6urts " : 50 Permit / $87/Permit . ; `$217/P4mit Multi -Area, Entire Park, Multi Day Event $136/Day+Permit $136/Day+Permit $136/Day+Permit Del Mar."koller Hockey: Rink is, _$50/P.ermit $87/Permit t $21-7/Permit Multi -Area, Entire Park, Multi Day Event $136/Day+Permit $136/Day+Permit $136/Day+Permit DeLMar,Tennis Coufts'13r $50/Permit $87/Permit $217/Permit Multi -Area, Entire Park, Multi Day Event $136/Day+Permit $136/Day+Permit $136/Day+Permit E . . .... ln- Lila, Keiser Park BBQ or Fields 1.. $50/Permit $87/Permit $2_17/Permit Multi -Area, Entire Park, Multi Day Event 12 $136/Day+Permit $136/Day+Permit $136/Day+Permit Monte'Young Tennis Courts 13: $50/Permit $. 7/Permit -i. $217/Permit Multi -Area, Entire Park, Multi Day Event $101/Day+Permit $101/Day+Permit $101/Day+Permit jTidelands Open Are $50/P.ermit $87/Permit. $217/Permit Multi -Area, Entire Park, Multi Day Event $101/Day+Permit $101/Day+Permit $101/Day+Permit Cloisters Open Area; ' _$50/P.ermit $87/Permit $217/Permit Multi -Area, Entire Park, Multi Day Event $101/Day+Permit $101/Day+Permit $101/Day+Permit 8ayshore Bluffs Open Area . $50/P.ermit.. .$87/Permit $,LO/Permit . Multi -Area, Entire Park, Multi Day Event $101/Day+Permit $101/Day+Permit $101/Day+Permit Morro i2ock'O'Pen Area ,. ' . :$50/Permit .,-$87/Permit $2_17/Permit Multi -Area, Entire Park, Multi Day Event $101/Day+Permit $101/Day+Permit $101/Day+Permit CityPark^Open Area . $50/Permit $87/Permit -;` $21.7%Permit Multi -Area, Entire Park, Multi Day Event $68/Day+Permit $68/Day+Permit $68/Day+Permit 11 E Entire Entire Entire City of Morro Bay Master Fee Schedule For the 2013/14 Fiscal Year Recreation and Parks Department Public Area Use Permits (page 2) Deposit - Public Area Use Permit - $150:00 Deposit - Organized Sports Facilities - $500.00 Non -Profit and Non-resident For Profit Resident Groups Groups Groups and Park Use Giant Chessboard use Wooden Pieces $25 $40 $107 112 Lila Keiser field preparation $23 $28 $31 113 Roller Hockey Rink, Basketball Court $4.00 $5 $6 & Tennis Court Hourly 11 City of Morro Bay Master Fee Schedule For the 2013/14 Fiscal Year Recreation and Parks Department Miscellaneous Property Use Non -Profit and Non-resident For Profit Resident Groups Groups Groups Recreation equipment rental;_per bag Includes one: Horseshoes, Badmitton, Volleyball, Bocce Ball Soccer goal;: hourly rate, 2 hr min.:14 y ._ $8 00 $" .' ,,$10 Skate park rental, 2 hr. min. $106 $106 $158 Photography/filming, per d'' * 15 $.M, outdoor N/A $220,.outdoor $148, indoor N/A $367, indoor 14 Equipment rental deposit:';.. 15 Photography/filming deposit: $1,000 Insurance cost is dependent on the size/type of event City of Morro Bay Master Fee Schedule For the 2013/14 Fiscal Year Transit (See Notes) Fixed Route: Regular fare, per ride Discount far _per ride Regular punch pass (11 rides for the price of 10) Discount punch pass (11 rides for the price of 10) Reqular day pass Call -A -Ride: 15.00 7.50 4.00 Call -A -Ride punch pass (11 rides for the price of 10) $ 25.00 Per ride. 5-12 vears old Advertisi Exterior Side of Trolley (approx. 36"x20") - MB Community Foundation suDDlied sion Exterior Rear of Trolley (approx. 24"x20") - MB Community Foundation suoolied Sion Interior (approx. 26"x12") - MB Community Foundation supplied sign lu 010111I11 City of Morro Bay Master Fee Schedule For the 2013/14 Fiscal Year Transit (See Notes) Trolley (continued):: r Rental rates: One day, with in"CityLimitsper Or (2 hour minimum): Transportation of passengers to and from one location to another $ 106.00 Shuttle trap§portation (continuous loop with multiple stops); hourly _plus cost of fuel• — `.—_ $ 106 00'. One day, outside City limits, per hour (3 hour minimum) Transportatiorrof passengers t6,,and'from one location'to another $ 106:00 Shuttle transportation (continuous loop with multiple stops); hourly plus cost of fuel $ 106.00 Auld le_days, 2;c6nsecutive days: Within City limits $ 1,719.00 -Outside City limits; rate plus, costbf fuel $_1,719.00 L City of Morro Bay Master Fee Schedule For the 2013/14 Fiscal Year Transit Notes Fixed Route: A child, under 5 years old, may ride free with a fare -paying adult (limit 2 per fare paying adult). Senior citizens (65 & over). and mobility-impaired/disabled. individuals, are eligible for the discount fare. Senior citizens maybe required•to provide proof of age._ Call -A -Ride: Call -A -Ride service is available to all members of the general public. ; Trollev The trolley is seasonal, and operates weekends only from Memorial Day weekend through the 1st weekend in October, and on Friday and Monday from Memorial Day throuoh Labor Day, The City has entered into a'revenue-sharing agreement with the Morro Bay Community Foundation (MB&). MBCF.will sell advertising, spaces onthe;trolleys, to include having signs made, and split the revenue, per the agreement. The agreement term is one year. Advertising rates in%this Discounts are available when purchasing more than one advertising space. Buy two exterior or interior signs an get a second sign @ 10% off; buy three exterior or interior signs and get the third sign @ 20% off; buy three exterior signs and get one interior sign @ 50% off. Cost -for space with MBCF, sign includes the -cost to have the -sign made. Rentals: Hourly rate includes driver, fuel, cleaning, standby mechanic. and administration, unless otherwise , noted' seats 30 The trolley is be returned to the City in the condition it was received by the renter. The renter shall be held responsible for any damages to the trolley resulting from the rental that is not due to the negligence of the City or its transit contractor. El RESOLUTION NO. 41-13 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, ADOPTING 2013/14 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 Govenunent Spending Limitation Section 8(c), states that proceeds in excess of user charges and user fees that exceed the costs reasonably borne 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 animal 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 91h day of July 2013, by the following vote: AYES: Irons, C. Johnson, N. Johnson, Leage, Smukler NOES: None ABSENT: None JAPE L. IRONS, ora ATTEST: JAME BOUCHER, City Clerk 40 ® RESOLUTION NO.40-13 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, ESTABLISHING THE ANNUAL PROPOSITION 4 APPROPRIATIONS LIMIT FOR THE FISCAL YEAR 2013/14 THE CITY COUNCIL Citv of Morro Bay, California WHEREAS, Article XIII13 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 2013/14 appropriations limit in accordance with the provisions of Article XIIIB of the California Constitution; and WHEREAS, Proposition I I I 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 Citv Council of the City of ® Morro Bav, California, to accept the calculation as prepared by the Finance Department, and establish the fiscal year 2013/14 appropriations limit at $22,395,914. PASSED AND ADOPTED, by the City Council of the City of Morro Bay, at a regular meeting thereof held on the 9 h day of July 2013. by the following vote: AYES: Irons, C. Johnson, N. Johnson, Leage. Smukler NOES: None ABSENT: None J L. IRONS. M vor ATTEST: GytiLG��N---- JA - BOUCHER, City Clerk RESOLUTION NO. 39-13 ® RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA APPROVING THE APPLICATION FOR GRANT FUNDS FOR THE LOCAL COASTAL PROGRAM SEA LEVEL RISE ADAPTATION GRANT FOR UPDATES TO THE GENERAL PLAN AND LOCAL COASTAL PLAN UNDER THE AUTHORITY OF THE OCEAN PROTECTION ACT THE CITY COUNCIL City of Morro Bay, California . WHEREAS, the California Ocean Protection Council. under the authority of the Ocean Protection Act, approved a competitive grant program to provide financial assistance for local and regional vulnerability assessments and updates to Local Coastal Programs (LCPs) and other Coastal Act authorized plans to address sea -level rise: coastal hazards and other climate change - related impacts; and WHEREAS; the goal of the grant program is to develop updates to LCPs or other Coastal Act authorized plans to address sea -level rise and other climate change impacts. and WHEREAS, grant proposals submitted under this grant program must address at least ® one certified LCP segment or other defined planning segment, such as a certified Port Master Plan or Universitv Long Range Development Plan, or, in jurisdictions without certified LCPs, proposals must demonstrate that the applicable jurisdiction has committed to the process to complete an LCP (or other Coastal Act authorized plan) or that such process is underway; and WHEREAS. the City of Morro Bay has an effectively certified LCP: and WHEREAS. the Citv of Morro Bav; recognizing the problems and issues associated with climate change identified in the grant application package attached hereto as Attachment 1 and made part of this Resolution as if fully set forth herein, desires to pursue a project that would result in the completion and submittal for certification by the California Coastal Commission of an LCP Amendment that would address such impacts; and WHEREAS. the City of Morro Bay will coordinate with the staffs of the California Coastal Commission. the State Coastal Conservancy and the Ocean Protection Council in undertaking the project; if approved. NOW, THEREFORE, BE IT RESOLVED that the Morro Bav Citv Council herebv: 1. Directs the City of Morro Bay staff to submit grant application package attached hereto as Attachment 1 to the Ocean Protection Council to provide financial and planning assistance, under authority of the Ocean Protection Act, in the amount of S250,000 to fund the project more particularly described in the grant application package. 11 2. Authorizes the Public Services Director of the City of Morro Bay to execute, in the name ® of the City of Morro Bay, all necessary applications, contracts and agreements and amendments thereto to implement and carry out the grant application package attached hereto and any project approved through approval of the grant application. PASSED AND ADOPTED by the Morro Bav City Council at a regular meeting thereof held on the 9t' day of July, 2013 on the following vote. - AYES: Irons. C. Johnson, N. Johnson, Leage. Smukler NOES: None ABSENT: None J fIE L. IRONS.'Mayor favor ATTEST: J W IE BOUCHER. City Clerk RESOLUTION NO.38-13 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NIORRO BAY, CALIFORNIA APPROVAL OF A NINETEEN YEAR LEASE AGREEMENT FOR MOORING AREA AI-3 BETWEEN THE CITY OF MORRO BAY AND THE MORRO BAY YACHT CLUB THE CITY COUNCIL City of Morro Bay, California WHEREAS. the City of Morro Bay is the lessor of certain waters and properties on the Morro Bav Waterfront described as City Tidelands leases and properties: and WHEREAS. the Morro Bav Yacht Club is the lessee of Mooring Area Al-3 located offshore of the Club at 541 Embarcadero and are tenants in good standing: and WHEREAS. the Morro Bav Yacht Club requires use of the Al-3 Mooring Area in order to provide accommodation for their members and for providing host services for visiting vachts as per their Master Lease Agreement for the Club lease site. and WHEREAS. in accordance with the Citv's Master Lease Policy, the Citv and lessee have agreed to a new nineteen vear lease agreement for Mooring Area Al-'). NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay. California. that the attached new Lease Agreement for Mooring Area Al-3 is hereby approved. BE IT FURTHER RESOLVED, that the Mavor is hereby authorized to execute said Mooring Agreement. PASSED AND ADOPTED by the Citv Council of the Citv of Morro Bav at a regular meeting thereof held on the 9th day of Julv. 2013 on the following vote: AYES: Irons. C. Johnson. N NOES: None ABSENT: None JamWBoucher. Ciry Clerk L] Johnson. Lease. Smukler re L. Irons, 'Mav r ® RESOLUTION NO.37-13 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NIORRO BAY, CALIFORNIA ADOPTING THE 2013/14 FISCAL YEAR OPERATING 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 the day-to-day business activities of the City; and WHEREAS. the Morro Bay City_ Council finds and determines that these appropriations are necessary for continued efficiency, economy and effectiveness of the City government operations; and WHEREAS. the City Council recognizes that Capital Improvement Projects authorized and approved in prior fiscal years may not be completed by June 30, 2013; 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; 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. NOW, THEREFORE, BE IT RESOLVED by the City Council of the Citv of Morro Bay, California. that: The Fiscal Year 2013/14 Operating Budgets are adopted, as presented herewith. including any amendments made at this meeting which will be attached to this Resolution: and 2. Staff is directed to prepare and publish a final budget document: and 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; and 4. City Council approval is required to transfer appropriations between funds, capital projects, or capital outlay items: and E i. City Council authorizes and directs the transfer of balances for capital projects approved in prior fiscal years. but not completed by June 30, 2013, to the Capital Improvement Project Fund(s) for the 2013/14 fiscal year; and 6. City Council directs that the hiring freeze for positions in the City workforce continue for those positions funded within the General Fund. with the exception of safety personnel, and the City Council reserves the right to review any vacancies on a case -by -case basis as to its official policy; and 7. City Council chooses to continue the 2009/10 deferral of the management and executive employe& 3% Cost -of -Living Adjustment (COLA): and 8. The City will address reducing the amount of General Fund support to the Morro Bav Tourism Bureau and other outside funding requests with its 2014/1 5 budget. PASSED AND ADOPTED. by the Citv Council of the Citv of Morro Bay, at a regular meeting thereof held on the 25'fi day of June 2013, by the following vote: AYES: Irons, C. Johnson, Leage, Smukler NOES: N. Johnson 10 ABSENT: ATTEST: -,qam�� JAM BOUCHER. City Clerk E 0 JA17 L. IRONS. Mayor ® RESOLUTION NO.36-13 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA AUTHORIZING THE SANS LUIS OBISPO COUNTY ASSESSOR TO ASSESS AbIOUNTS 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 paving 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 invoked: and 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 tar lien: and WHEREAS, the franchisee, Morro Bav 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: 2 i Parcel Number Total Amount 068-225-002 $294.20 065-044-024 $217.90 068-291-009 $2,528.68 066-164-002 $208.80 066-092-009 $208.80 065-037-001 $126.56 066-204-021 $504.40 PASSED AND ADOPTED by the City Council of the City of Morro Bav at a regular meeting thereof held on the 25th day of June 2013 by the following vote: AYES: Irons, C. Johnson, N. Johnson, Leage, Smukler NOES: None ABSENT: None ABSTAEN: None ATTEST: ® JAAW BOUCHER. City Clerk IM LE L. IRON favor ® RESOLUTION NO.35-13 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA AMENDING RESOLUTION 43-10 FOR A CALIFORNIA DEPARTMENT OF PUBLIC HEALTH GRANT FOR MODIFICATIONS TO THE DESALINATION PLANT THE CITY COUNCIL City of Morro Bay, California WHEREAS, on the 14'h day of December 2009 the City of Morro Bay made application to the State of California for $600,000.00; and WHEREAS, on the 51h day of August 2010 the State of California issued a Letter of Commitment to the City of Morro Bay committing grant funds under the Proposition 84 Program for the Desalination Facility Energy Recovery Project P84G-4010011-801subject to terms and conditions: and WHEREAS; the City Council adopted Resolution 43-10 authorizing the Utilities/Capital Project Manager to act on behalf of the City in the execution of various documents relating to the rant: and WHEREAS, subsequent to the passage of Resolution 43-10, the City Council reorganized ® the Public Services department and eliminated the position Utilities/Capital Project Manager and designated the Public Services Director to fill the role of overall utilities management. NOW, THEREFORE, BE IT RESOLVED AND ORDERED, that the Public Services Director, a Registered Engineer in the State of California, is hereby authorized to perform those duties that Resolution 43-10 direct the Utilities/Capitol Projects Manager to perform; and BE IT FURTHER RESOLVED AND ORDERED, that all other terms and conditions stipulated in Resolution 43-10 remain in effect per the requirements of the Proposition 84 Program for the Desalination Facility Energy Recovery Project, P84G-401001 1-801. 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 June. 2013 on the following vote: AYES: Irons, C. Johnson, N. Johnson, Leage, Smukler NOES: None ABSENT: None JAM1E L. IRON'S. Mayor ® ATTEST: JbMIE BOUCHER, City Clerk RESOLUTION NO. 34-13 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 i\Iorro Bay, California WHEREAS, on Mav 14, 2013 the Citv Council adopted Resolution No. 27-1.3 declaring the Council's intent to levy an assessment for the annual maintenance of the Cloisters Park and Open Space and approving the Engineers Report: and WHEREAS, a public hearing to hear all protests as to the levy of the annual assessment of said district was scheduled for June 25, 2013 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 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 patties as to the levy of the annual assessment for the Cloisters Landscaping and Lighting Maintenance Assessment District on is June 25. 2013 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 S 148,944 to be equally distributed per assessable parcel for the Fiscal Year 2013- 14 is herebv 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 2013-14 and the City Clerk shall file the diagram and assessment with the County of San Luis Obispo Auditor. PASSED AND ADOPTED by the Citv_ Council of the City of Morro Bay at a regular meeting thereof held this 25t° day of June. 2013 by the following roll call vote: AYES: Irons, C. Johnson, N. Johnson, Leage, Smukler NOES: None ABSENT: None JAt E L. IRONS, t YOR ATTEST: JAM OUCHER, CITY CLERK RESOLUTION NO. 33-13 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 14, 2013 the City Council adopted Resolution No. 26-13 declaring the Council's intent to levv an assessment for the annual maintenance of the North Point Natural Area and approving the Engineers Report: and WHEREAS, a public hearing to hear all protests as to the levy of the annual assessment of said district was scheduled for June 25, 2013 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 listing the date, time and location of the protest hearing, as well as being published in the local newspaper: and WHEREAS, the City Council did hear objections of all interested parties as to the levy of the annual assessment for the North Point Landscaping and Lighting Maintenance Assessment ® District on June 25. 2013 at the Veteran's Memorial Building. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bav 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 2013-14 is herebv 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 2013-14 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 26 s day of June. 2013 by the following roll call dote: AYES: Irons, C. Johnson, N. Johnson, Leage, Smukler NOES: None ABSENT: None au. J IE L. IRONS, V OR ATT T: JAi E BOUCHER, CITY CLERK RESOLUTION NO. 32-13 A RESOLUTION OF THE CITY COUNCIL OF MORRO BAY APPROVING THE TRACT MAP FOR AN A 15-LOT RESIDENTIAL. SUBDIVISION KNOWN AS TRACT 3031 AND ACCEPTING THE ASSOCIATED PUBLIC UTILITY EASEMENT DEDICATION THE CITY COUNCIL City of Morro Bay, California WHEREAS. on February 15. 2012 the Planning Commission did hold a public hearing. received public testimony, and after closing the public hearing fully considered the various issues surrounding the case: and WHEREAS, the Planning Commission did approve the Vesting Tentative Map for Tract 3031. and associated development applications, subject to certain Conditions of Approval: and WHEREAS. the Planning Commission has previously made findings required by the California Environmental Quality Act (CEQA) and the City of Morro Bay procedures for implementation of CEQA: and WHEREAS the applicant has since satisfied all Conditions of Approval and requests permission to record the Tract Map; and WHEREAS the applicant has installed per the approved Public Improvement Plans the associated minor frontage improvements and the City Engineer has accepted these improvements as complete: and WHEREAS the applicant has offered to dedicate a public utility easement for the City to accept on behalf of several public utilities: and WHEREAS, the recordation of the final map is a ministerial act pursuant to the City of Morro Bay Subdivision Ordinance and California Subdivision Map Act. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay. California. that the City hereby approves the final map for Tract 3031 and accepts the associated dedication of the public utility easement. PASSED AND ADOPTED by the City Council of the City of Morro Bay. California. at a regular meeting held on the 28 h day of May 2013, by the following vote: AYES: Irons, C. Johnson, N. Johnson, Leage, Smukler NOES: None ABSENT: None ABSTAIN: None ® ATTEST: 1A,MI OUCHER. City Clerk Q . �-�r. JAiNITE L IRONS, Mayor ® RESOLUTION NO.31-13 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, SUPPORTING THE EFFORTS IN CELEBRATING THE CITY OF MORRO BAY'S 501H ANNIVERSARY OF INCORPORATION THE CITY COUNCIL City of Morro Bay, California WHEREAS. the City of Morro Bay went from an unincorporated area to an incorporated municipality on July 17. 1964: and WHEREAS. the City of Morro Bav_ celebrated their 25'h Anniversary_ with several special events and activities; and WHEREAS, there is extensive community support for a larger celebration for the City's 50`h Anniversary in 2014; and WHEREAS; at the March 26, 2013 City Council meeting there was a presentation from a local citizen's group providing a concept plan for a potential of an 18 month -lone celebration; and is WHEREAS. the City Council discussed the concept that was presented and was supportive of partnering with this citizens group effort to provide events in celebration of the Anniversary to include incorporating a theme into the events; and WHEREAS. the Citv Council by consensus. designated Councilmembers Nancy Johnson and George Leage as the City's liaisons to the City of Morro Bav's 50'h Anniversary Celebration Committee: and WHEREAS. the City in support of these efforts. agrees to offer meeting space for the 50`h Committee in City facilities, and directs the 50`h Committee to work with the Recreation and Parks Department on securing this meeting space; and WHEREAS. the City Council will also be considering additional support to these efforts. including the potential of fee waivers. funding of events. and/or the use of other City resources to help the City's 50`h Anniversary Celebration Committee as it plans and schedules these Communitv Enhancement and Enrichment Programs and Events. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Morro Bay. California. strongly supports the 50`h Anniversary Celebration Committee's efforts and gladly provides meeting space for the committee as well as additional support as their planning efforts continue. El ® PASSED AND ADOPTED by the Citv Council of the City of Morro Bay at a regular meetine thereof held on the 28`" day of May_ 2013. by the following vote: AYES: Irons. C. Johnson. N. Johnson. Lease. Smukler NOES: None ABSENT: None JA E L. IRONS. Mayor ATTEST: C2%%z;C�ha'Gf� JA, BOUCHER. City Clerk ® RESOLUTION NO.30-13 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, SUPPORTING INCREASED FUNDING TO THE CALIFORNIA COASTAL COMMISSION (CCC) TO SUPPORT ENHANCED LOCAL COASTAL PLAN PLANNING AND UDPATES THE CITY COUNCIL City of Morro Bay, California WHEREAS. the City of Morro Bay as well as many other coastal cities have been challenged to update their General Plan/Local Coastal Plan (GPILCP) on a regular basis: and WHEREAS; the City of Morro Bay is currently using a Local Coastal Plan adopted in 1982 for its coastal planning guide: and WHEREAS, the City of Morro Bav is currently using a General Plan adopted in 1988 for its Community Development guide: and WHEREAS, State standards, legal requirements; and professional practices for preparing ® Local Coastal Plans and General Plans have evolved over the past decades and conditions have changed significantly. both locally and within the region: and WHEREAS, the City of Morro Bav recognizes that after over three decades of use. it is appropriate to re-evaluate the scope and content of the City's Local Coastal and General Plan to make certain that these important documents provide for the community values and vision for future development and to ensure consistence with the Coastal Act: and WHEREAS. the City Council of the City of Morro Bay approved updated GP/LCP's on February 23. 2004, and Julv 20, 2005 and submitted them to the California Coastal Commission (CCC) for certification: and WHEREAS, on February 28, 2011 the CCC submitted a letter to the City of Morro Bav informing the Citv that LCP amendment MRB-1-05 is deemed withdrawn for lack of activiry and because it did not meet the Coastal Act's minimum public participation requirement for LCP amendments (which provide that an LCP amendment must have been subject to local public hearings on the amendment within four years to allow the amendment to be filed for Commission review and action): and WHEREAS; the challenges of updating a General Plan and Local Coastal Plan have included time constraints. financial constraints and staffing constraints: and E ® WHEREAS, the CCC, at their December 12, 2012 workshop with local governments discussed the importance of working cooperatively with local governments in these update efforts: and WHEREAS; on April 25, 2012 the Senate Budget Subcommittee 92 voted to increase the CCC's budget to allocate S 4 million dollars/year, of which $1 million would be provided to local governments for Local Coastal Plan planning grants; and WHEREAS. the CCC is hopeful the Assembly Budget Subcommittee 43 will consider a similar action and this funding will become part of the final 2013/201=4 budget. NOW, THEREFORE, BE IT RESOLVED that the City of Morro Bay; California, is committed to updating their GP/LCP and, strongly supports additional funding for the Local Coastal Program (LCP) planning process established by the California Coastal Act. This funding should be used to support efforts to increase collaborative state -local planning and streamline the process for approving and amending or updating Local Coastal Programs. including providing additional planning staff for the CCC and funding for new State LCP planning grants for local governments. Additional funding should prioritize Commission staffing and resources to support early scoping. local coordination and communication on any proposed amendment, to help identify kev issues and address potential conflicts, as early as possible. Early coordination provides for more predictable and mutually agreeable processing timelines for each stage of the amendment process, and for mechanisms to provide maximum opportunity for the Commission ® and local governments to collaboratively address important and pressing coastal management issues, including responding to climate change. extreme events, and global sea level rise, and addressing the need for updated LCPs to support new economic development consistent with local needs and the California Coastal Act. Early coordination also provides for maximizing local participation and discussion of LCP issues. and enhancing efficiency and accountability in the local coastal planning process. PASSED AND ADOPTED by the Citv Council of the Ciry of Morro Bav at a regular meeting thereof held on the 28 ° day of May. 2013, by the following vote: AYES: Irons. C. Johnson. N. Johnson, Leage, Smukler NOES: None ABSENT: None J N. L. IRONS, Mayor ATTEST: JA BOUCHER, City Clerk ® RESOLUTION NO.29-13 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA AUTHORIZING EXECUTION OF THE PROGRAM SUPPLEMENT AGREEMENT FOR FEDERAL AID PROJECT NO. 05-5391R MORRO CREEK MULTI -USE TRAIL AND BRIDGE PROJECT THE CITY COUNCIL Cite of Morro Bay, California WHEREAS, the City Council adopted the Waterfront Master Plan in May of 1996 which included a project to link the two sections of the Embarcadero with a bridge; and WHEREAS, the City has successfully applied for and received a S220.000 Grant through the National Scenic Byways Program to fund the engineering and environmental studies necessary for this project; and WHEREAS. the City must provide a 20% match in funds and services as is required by the Grant; and WHEREAS; the City currently has adequate funds in the Local Transportation Fund Account for such purposes. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Morro Bay, California; authorizes the Public Services Director to execute the subject agreement and to use staff resources and Local Transportation Funds to meet the 20% match requirements of this Grant. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 14th day of May. 2013 on the following vote: AYES: Irons. C. Johnson, N. Johnson; Leage, Smukler NOES: None ABSENT: None 0 J IE L. RONS. Mayor ATTEST: ® J 4IE BOUCHER, City Clerk ® RESOLUTION NO.28-13 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, CONTINUING THE PROGRAM AND LEVYING THE ASSESSMENTS FOR THE 2013/14 FISCAL YEAR FOR THE MORRO BAY TOURISM BUSINESS IMPROVEMENT DISTRICT (MBTBID) THE CITY COUNCIL City of Morro Bay, California WHEREAS, the Parking and Business Improvement Area Law of 1989, Section 36500 et seq.. of the California Streets and Highway Code authorizes cities to establish and review business improvement areas of the purpose of promoting tourism; and WHEREAS, on April 13, 2009, the City Council held a public hearing and first reading of Ordinance 546 to establish the Morro Bay Tourism Business Improvement District (MBTBID), and approved Ordinance 546 at its April 27, 2009 meeting; and WHEREAS; the advisory board has requested the renewal of the TBID for the 2013/14 fiscal year to continue its activities: and ® WHEREAS, all other findings of Ordinance 546 to establish the TBID remain unchanged: and WHEREAS. on April 9 and 23, 2013, staff presented the annual report for the fiscal year 2011/12 (the third year of the TBID), the adopted budget for 2012/13. and the budget plan for 2013/14, all of which are attached to this Resolution as Exhibit A: and WHEREAS, the annual report and budget plan generally describe the activities to be marketine activities, which attract and extend ovemieht stays in Morro Bay hotels, support for the Visitors Center, whose outreach to potential visitors is key; and WHEREAS, it is the intention of the City Council to levy and collect 3% assessments from the hoteliers within the TBID for the 2013/14 fiscal year: and WHEREAS, the City Council conducted a public meeting on April 23, 2013), to affirm the annual report and budgets along with its intent to levy the 3% assessments. and set the public hearing date to confirm the program and levy the assessments as May 14, 2013. at 7:00 p.m. (or soon thereafter as possible), said hearing to be held in the Morro Bay Veterans Memorial Hall located at 209 Surf Street, Morro Bay. California. in accordance with the California Streets and Hia—hwav Code Sections 36524 and 36525: and ® WHEREAS. on May 14. 2013. the Citv Council conducted a public hearing regarding the renewal of the TBID for the 2013/14 fiscal vear. at which meeting affected businesses had the opportunity to protest the TBID renewal, with the following results: AGANST: None NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Morro Bav as follows: That the above recitations are true and correct, and incorporated herein by reference. 2. That the Citv Council. having affirmed the annual report and budgets on April 91h and 23`d; 2013 at regular meetings, declares the renewal of the Morro Bay Tourism Business Improvement District for the 2013/14 fiscal year. and instructs the hoteliers to levy and collect 3% assessments for overnight stays of 30 days or less. PASSED AND ADOPTED by the City Council of the City of Morro Bay, at a regular meetine thereof held on the 14 day of May, 2013, by the following vote: ® AYES: Irons. C. Johnson, N. Johnson, Leage. Smukler NOES: None ABSENT: None ATTEST: Lk BOUCHER., City Clerk 1 7"'-IRONS. N avor Fa • • `I ,I u • y i_. W � ti 7 Q� Lill �o L. O O o' �I Y 0 L 0 c ; % # 3 f ; \)�. \ �Ne � §\ §) — ■— � | � { 6 } " \ r 0 � ! � ) , � ' � ) ) ) ) ( }Q)/} [ 2 Lw ) } 2 / j 7 )$\11 \ 2 § v 5� o F ? u i O e 'c"5 E— i- n° 0 o. v E Y E � �9 •5 � c � Q � '_ E ��� n mpp � c � � � =° •$ $ o 'c Y '� 9 j v eYi o J C u n L .432 V �pu 8 o Q wE Iv. y c � n L0 �c 9v 0 3° ay n n B u d if d u n 7 ° m y cu m cn P, E' a C cue, •s S •5 $ V ?qq rr�� pg y fig? j�p �- o. '.eOF 8a •o.° .E.� y .� �' p �' c.o •o.o "-cam ��Fc�o .fitcC+ F u 5 C :, 5 o cC F U < I CL T 0 ou (]g cu �° �uEL n ♦q cu 04 W V ^ L .G � C ♦ t C F ` 5 OC a. o.•q.. 7 E j ., u ,� 'a o a n .o u Y a x S. a > c u � u a m •� F� c o. 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V 1 O D D rnW" O 1+ nR a03��c�'� 0 0 n^ o 0 cr CL V mm V mm 3 H Q c 6 cx 2 c6 N C W vZi ':, n 0 2 omrnic`ni� ; �,'0 b 0 0D 00 0o F p a D D ur urGG= Gn c a A a P P P UI U� O O O P P V1 N VI O O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o o o o o 0 0 0 0 0 0 0 000 0 0 0 0 0 0 0 0 0 0 0 tl1 N N 0 0 0 0 0 0 0 0 0 066 0 0 0 0 0 0 0 0 0 66 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 A A a a A P P P VI V1 O O 0 0 O P P A A N Vt N O O cn N O O O O O OO O O O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 M A A A W N ppODD W O �D w p pp W w p O� tVif V P b V N VI A A N O O IJ W N O O N O m w V b V O O O A P O P O O P P W u1 �O W O O O O yN N N N M P VAi A r N P W W V V VI �D r p S VA� 44 00 \I+ + + + + + + + o v o++ W+++++ + Vl o o + + m + + + + + + 0 0 0 0 0 0 0 0 0 A P O O O O O 0 0 0 0 0 0 0 ut O b N O lNlf O INJI O O O lNll O H ++ t + ++ e N 6 mmluul IN c c1' n � 0 V V sQ�a W m W O p O-1 a o y i o o.G ur S ODI W S O o I $ SSc S e N O It r O 0 0 0 0 0 0 0 0 0 0 O VI N NN GO 0 0 0 0 o S S S S o Vo pppp r a, w a b O V b V N r bo V1vvvOvOSv v] O++++++o+� N O r � 00 ONi N 01 W N 40 W 0 0 0 11 Y O O T VI VI N w O O V O V S S S S �ISIO li]IS {y O O O O goo �+ + + + + oo� +p� +++ + w VWI W 'IVnJ O n Ln N N N S N S a� O 7 �p � 2 + + PL 3 0 0 • n T C lV a rot 0 00 C n C =�3 K d N oon yam K xK !D 0 M 'i a� W C � m ~ W m C, J • Tourism Bureau Budget 2014 Revenue Assessment Funds General Funds - Total Revenue Regional Marketing Visitor Center Expense Visitor Center Wages Payroll Tax �J/ Benefits Workman's Comp Rent & Utilities Insurance Office Total Visitor Center Expense Tourism Bureau Wages Payroll Tax Benefits Workman's Comp Rent & Utilities Insurance Office Travel & Entertanment Total Tourism Bureau Expense Destination Marketing Advertising & Promotion Advertising & Promotion Planning, Artwork, Production Public Relations WebSite Billboard Collateral Total Advertising & Promotion Other Expense Trade Shows/Savor VCB Membership County Co -Op Marketing Fulfillment Jackrabbit CTTC F, E, P, E E. E 5 S 41 Fiscal 2014 Budge 550,000 116,850 100,000 766,850 68,000 6,000 6,600 6,500 15,000 2,000 10,500 114,600 90,000 8,000 6,600 8,900 3,000 1,800 5,200 6,000 129,500 187,500 14,000 4,000 24,000 2,000 12,000 243,500 38,000 39,000 30,000 6,000 14,400 300 1 Tourism Bureau Budget 2014 Fiscal 2014 Budget AGP 5,000 Contingency 29,700 Total Other Expense $ 162,400 Total Destination Marketing Expense $ 405,900 Regional Marketing Advertising & Promotion Advertising & Promotion $ 58,850 Planning, Artwork, Production 3,000 Public Relations 3,000 WebSite 3,000 Billboard 1,000 Collateral 2,000 Total Advertising & Promotion $ 70,850 Other Expense VCB 5,000 .� 1'' '� Sri Community Events d 340,000 AGP j ' 1� .. y 1,000 Total Other Expense $ 46,000 Total Regional Marketing Expense $ 116,850 Total Expense $ 766,850 Net Increase/(Decrease) in Cash $ • u K • RESOLUTION NO.19-13 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA AMENDING COUNCIL POLICIES AND PROCEDURES MANUAL REGARDING MEETING GUIDELINES & PROCEDURES THE CITY COUNCIL City of Morro Bay, California WHEREAS, the Council Policies and Procedures Manual for the City of Morro Bay is a combination of City Council actions, policies, references, and information regarding the City Council; and WHEREAS, to ensure that all Councilmembers are familiar with and understand the City of Morro Bay's philosophies and policies regarding serving on the City Council, the City of Morro Bay adopted Resolution 46-02 and its Council Policies and Procedures Manual on August 12, 2002; and WHEREAS, the City desires to amend certain Sections of the Council Policies and • Procedures Manual related to Meeting Guidelines & Procedures, as follows: 1.13 STUDY SESSIONS (Open to the public) 1.1.3.1 The purpose of these meetings shall be for informal discussions between staff, advisory bodies or consultants, the public, and the City Council regarding specific programs, projects or policies. Council may provide direction, but no formal action will be taken during a Study Session. Study Sessions may be conducted in a variety of formats, including Public Workshops. 1.1.3.2 Study Sessions will be held at a time and place within the City limits and convenient to Council and advantageous for public participation. 1.23 PLACING AN ITEM ON THE AGENDA (ADVISORY BODIES) Recommendations made by advisory bodies, as part of their normal scope of duties and responsibilities, shall be timely placed on the City Council agenda by staff. who shallcomply • with the City's approved Council Agenda Preparation Policy. In the event that an advisory body desires to bring a matter of special consideration to the City Council (new ideas or concerns, for • example). it maLrequest that an item be placed on a future agenda by submitting a written request to the Council approved by a majority of the advisory body members and signed by the Chair. During Genwnuniegfiem Declaration of Future Agenda Items,-4any Mmember of the Council may ask for consideration of the request ,,,._..um! to these preeedures set out in 1.2.2. and upon a majority of Council, a staff report will be prepared and approved by the City Manager or his/her designee. 1.2.6 RECONSIDERATION Reconsideration of issues oreviouslv acted union is discouraged. However. in extraordin situations, a request to reconsider an action taken by the City Council may be considered. The request must be presented by a Council Member who voted with the majority at the Council meeting at which the original vote was taken. The vote may be reconsidered during that meeting, but no later than the next Council meeting. Debate is limited to the question of whether or not there is a majority of the Council interested in reconsiderinp the matter. If a majority of the council votes to reconsider an action, the matter will be placed on the next or future agenda. guidelines De....l,min l e f :sues previously aewA upe., is diseeofagea but .equests ...:11 be 1.2.7 ORDER OF BUSINESS shall be as follows: • 1.2.7.1 1.2.7.2 Establish Quorum and Call to Order Moment of Silence 1.2.7.3 Pledge of Allegiance 1.2.7.4 Closed Session Report 1.2.7.5 Mayor and Council Members Reports, Announcements and Presentations Depew 1.2.7.5 1.2.7.6 Glesed Session Publent Public Presentations 1.2.7.7 Gensem Galead Public Comment 1.2.7.8 Consent Agenda 1.2.7.9 Public Hearings (shall start no sooner than 7:00 p.m.) 1.2.7.910 Unfinished Business 1.2.7.101 New Business 1.2.7.12 Council Declaration of Future Agenda Items (Reso. 76-08), (part) 1.3.3.2 Questions to Staff: A Council Member shall, after recognition by the Presiding Officer, address questions to the designated staff member. Council Members are encouraged to provide questions to staff prior to meetings. 0 • 1.3.3.5 Tabling Procedure: The pu1pose of the Motion to Lay on the Table also known as a Motion to Table is to enable the City Council, by maiority vote and without debate, to lay a pending question aside temporarily when something else of immediate urgency has arisen or when something else needs to be addressed before consideration of the pending question is resumed. The Motion shall not be used to cut off debate and shall only be used when it is necessary to suspend consideration of a main motion in order to deal with another matter that has come up unexpectedly and which must be dealt with before the pending motion can be properly addressed. 1.3.6.7 A It roll C-call vote may be taken at the discretion of the Ghak Mayor or Mayor Pro Tem. The City Clerk will call the roll for the roll call vote in the following manner: 1) Maker of the motion: 2) Member who has seconded the motion: 3) Additional council members in alphabetical order by last name: and. 4) Mayor last. The City Clerk shall state for the record the name of any Council member who is recused or has abstained. • 13.7 PUBLIC COMMENT Members of the public may address the City Council in a variety of ways. Written comments on agenda items are encouraged_ As a courtesy to the Council, citizens are encouraged to present written comments at least one week day prior to the meeting. This provides the Council with a ergr ater opportunity to review and consider issues and/or concerns expressed in written communications prior to a meeting. Written material distributed at the meeting will be made a part of the public record. If the material is too voluminous for Council to review during the meeting or is new material not previously considered, Council may at its discretion continue the item to a future meeting. The Mayor- ., n ieeffmentsnvite frem the ..ublie : suppen of ,._ in The following are guidelines for providing public comments: 1.3.7.1 During Public Comment period, at the beginning of every meeting. Members of the public may address the City Council on items that are of on the printed agenda. For Consent Items, Public Hearing Items. and Business Items. the Mayor will invite comments from the • public in support of, or in opposition to each specific Agenda Items following the staff report and any questions • from Council to Staff. At the dise_elien of the Mayer eMayer Pr-e Tem, speaker slips will be mquiFed. Speakefs' fied by the Mayer er- Mayer- Pfe Tem. The Publie 1.3.7.2 Individuals desiring to speak shall: 1.3.7.2.2 Limit comments to three (3) minutes or to the interval specified by the Mayor or Mayor Pro Tem. The Mayor or Mayor Pro Tem with the majority of Council Members, may reopen public comment after all have spoken, if necessary to qualify questions, comments or concerns. A speaker may not yield their time to another speaker. NOW, THEREFORE, be it resolved that the City Council of the City of Morro Bay does hereby amend certain Sections of the Council Policies and Procedures Manual to reflect the • above amendments. PASSED AND ADOPTED by the City Council, City of Morro Bay at a regular meeting thereof held on the 12th day of March, 2013 by the following vote: AYES: Irons, C. Johnson, N. Johnson, Leage, Smukler NOES: None ABSENT: None ABSTAIN: None ATTEST: JAM9 BOUCHER, City Clerk /J1461EML . IRONS, Mayor ® RESOLUTION NO. 27-13 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", datedMay8. 2013. prepared in accordance with Article 4 of the Act, commencing with Section 22565; and WHEREAS, pursuant to Section 22608.2 of the Act. the subdivider(s) were required by ® City Ordinance to install improvements for which an assessment district was required in order to assure continued and uninterrupted maintenance of the Cloisters Park and Open Space; and WHEREAS, pursuant to the intent of Article XIII, Section 4. of the California Constitution, the property owners have elected to form the Cloisters Landscaping and Lighting Maintenance Assessment District. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that it is the intent of the Council to order the annual levy and collection of assessments for the Cloisters Landscaping and Lighting Maintenance Assessment District generally located as shown in Exhibit "A" attached hereto at a public hearing to be held June 25, 2013 at 7:00 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 8. 2011 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 2013/14. RESOLUTION 27-13 PAGE loth PASSED AND ADOPTED by the Citv Council of the Citv of Morro Bav at a resular meeting thereof held this 14'h day of May. 2013 by the following roll call vote: AYES: Irons, C. Johnson, N. Johnson, Leage, Smukler NOES: None ABSENT: None ATTEST: �411-- JA--,vtYE BOUCHER, CITY CLERK 2 /1 � \ `\\� is 00 � \ � �y CO . . \ — / ZY » / { � ƒ ° . # � /J k 7! }y! ƒ] (� ® RESOLUTION NO.26-13 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 Bav 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 Citv 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 8. 2013, prepared in accordance with Article 4 of the Act. commencing with Section 22565: and NVHEREAS, pursuant to Section 22608.2 of the Act, the subdivider(s) were required by ARL 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 YIII. 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 Citv of Morro Bav that it is the intent of the Council to order the annual levy and collection of assessments for the North Point Natural, Area Landscaping and Lighting Maintenance Assessment District generally located as shown in Exhibit "A" attached hereto at a public hearing to be held June 25, 2013) at 6:00 p.m. in the Veterans 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 8, 2013 which is hereby approved. BE IT FINALLY RESOLVED by the City Council the assessment upon assessable lots within the district is proposed to total S5,645 or $564.50 per assessable parcel for fiscal year 2013/14. 2 RESOLUTION 26-13 PAGE PASSED AND ADOPTED by the Citv Council of the Citv of Iviorro, Bav at a re¢ular meeting thereof held this 1=4`s of May. ?013 by the following roll call vote: AYES:. Irons, C. Johnson, N. Johnson, Leage, Smulder NOES: None ABSENT: None ATTEST: JAN,W BOUCHER, CITY CLERK EXHIBIT 'A' ® CITY OF MORRO BAY NORTH'POINT NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT ASSESSMENT DIAGRAM = NORTH POINT NATURAL AREA LEGEND ^h 20 _ �• 1. = LOT NUMBER �ru°� y� 1.10 AC-E _ � # i0 = COUNTY ASSESSORS PARCEL NUMBER 082 9. cr 1 . 22 IN CEA NFN 6. TRACT 2110 5 s 21 A± v 3. -1cr) 72 ' q 71 01 i ® RESOLUTION NO.25-13 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA ADOPTING FINDINGS TO UPHOLD THE APPEAL AND OVERTURNTHE PLANNING COMMISSION'S APPROVAL OF COASTAL DEVELOPMENT PERVHT #CPO-390 MORRO STRAND CANIPGROUND IMPROVEMENTS PROJECT THE CITY COUNCIL City of Morro Bay, California WHEREAS. the Planning Commission of the City of Morro Bay held a public hearing in the Veterans Memorial Building located at 209 Surf Street, Morro Bay, California. on March 6. 2013 and did grant a Coastal Development Permit for the upgrade of 25 existing campsites plus the two camp host sites at Morro Strand State Park Campground to include recreational vehicle utility hook-ups in order to modernize services as well as increase visitation and revenue: and WHEREAS. the Morro Bay City Council held a public hearing in the Veterans Memorial Building located at 209 Surf Street. Morro Bay. California. on April 9, 2013 for the purpose of considering two appeals (Auerbach and Wiebenga) of Coastal Development Permit is TCPO-390: and WHEREAS, the applicant (State of California) was required to apply for a Coastal Development Permit because the project is located in the coastal zone, specifically within the Coastal Commission's appeals jurisdiction: and WHEREAS, the applicant is not required to apply for a building permit or a use permit because the State Parks project is under the jurisdiction of the State as a superior agency, and not within the City's jurisdiction: and WHEREAS. the Citv of Morro Bav's Local Coastal Plan and General 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 Local Coastal Plan and General Plan directs the City to enforce and implement the goals and policies of the Local Coastal Plan and General Plan: and WHEREAS, pursuant to the California Environmental Quality Act the project is categorically exempt pursuant to Section 15301. Class 1. Class 1 consists of the. operation, repair, maintenance, permitting. leasing, licensing or minor alter of existing public or private structures, facilities, mechanical equipment or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination. The project ® as described above involves minor alterations to the existing campground through the upgrade of 25 existing campsites plus the two camp host sites to include recreational vehicle hook-ups in order to modernize services as well as increase visitation and revenue. The upgrade of the campsites at this campground will not result in an intensification of use: and ® WHEREAS, notices of said public hearing were made at the time and in the manner required by law; and WHEREAS, on March 27, 2012 the City Council did adopt Resolution No. 15-12 to take immediate steps to keep Morro Strand State Beach campground open; and WHEREAS; Resolution No. 15-12 stated that permanent closure of Morro Strand State Beach Campground will create considerable harm for the City of Morro Bay that relies on tourism from state parks for their community's livelihood and community identity; and WHEREAS; Resolution No. 15-12 also stated that the continued operation of the Morro Strand State Beach Campground is in the public's interest, as it provides access to the ocean. and opportunities for interaction with nature; and NVIIEREAS. Resolution No. 15-12 further stated that during the Citv Council's Annual Goal Setting Workshop, the Council declared keeping the Morro Strand State Beach Campground open their number one goal; and WHEREAS. Resolution No. 15-12 resolved to direct the City Manager to take all necessary steps and legal means available to make absolutely certain that the Morro Strand State Beach Campground remains open, including, but not limited to, authorizing the City Manager to IS negotiate an Agreement with the State of California for operation of the Morro Strand State Beach Campground, and also authorizes the City Manager to execute any further documentation in order to cam out the intent of this Resolution. WHEREAS, at the Morro Bay City Council on April 9. 201 3 considered the appeals of Coastal Development Permit IMCPO-390, the Council determined that there were concerns and issues raised in regard to compliance with various Local Coastal Plan policies and requested the applicant to continue the matter to address their concerns; and WHEREAS. at the hearing on the appeals, the applicant declined to request a continuance and instead requested that the City of Morro Bay uphold the appeal and deny the project instead of continuing the appeal to a future date. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bav as follows: Section 1. Findings. Based upon all the evidence. the City Council makes the following findings of denial for Coastal Development Permit ',CPO-390: A. That the project is an allowable use in its zoning district. however it has been found to be not in compliance with the Local Coastal Plan in terms of view protection, public access, and parking (as it relates to access) based on the information contained within the appeals filed by Walter R. Auerbach on March 13, 2013. Specifically Section 30251 Scenic and 41 visual qualities, LCP Policy 12.01: 12.02; 12.03; Section 30212.5 Public facilities; distribution and Section 30211 Development not to interfere with access; LCP 1.01; ® B. The project is not in conformity with the public access and public recreation policies of Chapter 3 of the California Coastal Act and it was found that the campground has insufficient parking thereby impeding public access to the beach. Specifically Section J0212.5 Public facilities; distribution and Section 30211 Development not to interfere with access. LCP 1.01; LCP 1.05; LCP 1.07 C. The appeal filed by Harold Wiebenga on March 11. 2013 did not contain specific criteria consistent with the Local Coastal Plan to find reason for denial. Section 2. Council Decision. Based on the above findings, the Citv Council of Morro Bay does hereby uphold the appeal filed by Walter R. Auerbach on March li, 2013. deny the appeal filed by Harold Wiebenga on March I I, 201 3; and deny Coastal Development Permit 4CPO-390 without prejudice. The City Council in upholding the appeal requests the applicant to work with the City to develop a phased proposal with performance standards. PASSED AND ADOPTED by the City Council of the Citv of Morro Bav at a regular meeting thereof held on the 23rd day of April. 2013 on the following vote: AYES: Irons. N. Johnson, Leage NOES: Smukler ABSENT: C. Johnson (recused) El ATTEST: k411W*x4- JAVE BOUCHER. City Clerk E rIIE L. IRONS. Mayor ® RESOLUTION NO.24-13 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, DECLARING THE INTENTION TO CONTINUE THE PROGRAM AND ASSESSMENTS FOR THE 2013/14 FISCAL YEAR FOR THE MORRO BAY TOURISM BUSINESS IMPROVEMENT DISTRICT (MBTBID) THE CITY COUNCIL City of Morro Bay, California WHEREAS, the Parking and Business Improvement Area Law of 1989, Section 36500 et seq.. of the California Streets and Highway Code authorizes cities to establish and review business improvement areas of the purpose of promoting tourism; and WHEREAS. on April 13. 2009. the City Council held a public hearing and first reading of Ordinance 546 to establish the :Morro Bav Tourism Business Improvement District (ViBTBID), and approved Ordinance 546 at its April 27, 2009 meeting; and WHEREAS, the advisory board has requested the renewal of the TBID for the 2013/14 fiscal vear to continue its activities: and ® WHEREAS. all other findings of Ordinance 546 to establish the TBID remain unchanged: and WHEREAS, on April 9, 2013, staff presented the annual financial report for the fiscal year 2011/12 (the third year of the TBID), the adopted budget for 2012/13, all of which are attached to this Resolution as Exhibit A: and WHEREAS; the City Council was provided with the Annual Report of the Morro Bay Tourism Bureau FY 2013/14 budget, and has reviewed said report at this meeting; and WHEREAS, the annual report and budget generally describes the activities to be marketing activities. which attract and extend overnight stays in Morro Bay hotels, and operate the Visitors Center. whose outreach to potential visitors is key: and WHEREAS. it is the intention of the Citv Council to levv and collect 3% assessments from the hoteliers within the TBID for the 2013/14 fiscal year: and WHEREAS, the City Council conducted a public meeting on April 9, 2013. to affirm the annual financial reports, and set the public hearing date as April 23. 2013. at 6:00 p.m. (or soon thereafter as possible), said hearing to be held in the Morro Bay Veterans Memorial Hall located at 209 Surf -Street. Morro Bay. California_ in accordance with the California Streets and Highwav Code Sections 36524 and 36525: and U ArhWHEREAS; on April 23, 2013, the City Council conducted a public hearing 19 regarding the renewal of the TBID for the 20L3/l4 fiscal year, and set the date of May 14, 2013, as the public hearing for reaffirming the activities of the MBTBID and levying the assessments. NOW, THEREFORE BE IT RESOLVED by the City Council of the Citv of Morro Bay as follows: That the above recitations are true and correct, and incorporated herein by reference. 2. That the City Council. havino affirmed the annual report and budgets on April 23, 2013 at a regular meeting. declares its intention to renew the Morro Bay Tourism Business Improvement District for the 2013/14 fiscal year; and to levy_ and collect 3% assessments from hoteliers. 3. That the Citv Council sets the date of the public hearing to adopt a Resolution to reaffirm the MBTBID and levy and collect the 3% assessments from hoteliers as Mav 14, 201 .3. PASSED AND ADOPTED by the Citv Council of the Citv of Morro Bay, at a regular meeting thereof held on the 23`d day of April. 2013, by the following vote: 0 AYES: Irons, C. Johnson, N. Johnson, Leage. Smukler NOES: None ABSENT: None ATTEST: ta�r� JA,N E BOUCHER. City Clerk El Hi /MIE L. IRONS. Mayor ® RESOLUTION NO.23-13 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 of the district pursuant to the Landscaping and Lighting Act of 1972 (Streets and Highways Code Section 22500 et seq.), and are the, only owners of property to be subject to assessments within the district: and WHEREAS, the Owners of real property within the proposed district have offered to dedicate in fee and in perpetuity, Lot 121 (Parcel 1) and Lot 122 of Tract 1996, and the City has agreed to accept said Offer of Dedication; provided that the cost of maintenance of thereof shall be home by an assessment district as required by the Conditions of Approval of the project: and WHEREAS, one hundred percent (100%) of the property owners approved formation of the district to assure conformance with the "Right to Vote on Taxes Act' (Proposition 218. California Constitution Act XIII C & D). 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. 23-13 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 Engineers Report will be prepared for consideration at the May 14, 2013 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 Citv of Morro Bav at a regular meeting thereof held on the 9 h day of April. 2013 by the following vote: ® AYES: Irons, C. Johnson, N. Johnson, Leage, Smukler NOES: None ABSENT: None J ie L. Irons, Mayor ATTEST: Jamt Boucher, City Clerk ® RESOLUTION NO.22-13 RESOLUTION OF THE CITY COUNCIL 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 Cite has placed certain conditions on the development of Tract 2110'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 F 1-F7); and ® WHEREAS, the Owners of the real properry 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 home by an assessment district as required by the Conditions of Approval of the project; and WHEREAS, one hundred percent (100%) of the property owners approved formation of the District to assure conformance with the "Right to Vote on Taxes Act" (Proposition 218, California Constitution Act XIIL C & D). 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 declares its intent to initiate the proceedings to leery and collect assessments pursuant to the "Landscaping and Lighting Act of 1972". (Streets and Highways Code Sections 22500 et seq.) Resolution No. 22-13 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 Highways Code Section 22525 which are installed by the developer as a condition of approval of Tract 2110 or which are hereafter installed by developer: pursuant to the Final Improvement Plans for the North Point Project as approved by the City. 3.. The Assessment District is a District located in the City of Morro Bay; County of San Luis Obispo. A map showing the boundaries of the proposed District is attached as Exhibit A which is hereby incorporated herein. 4. An Engineer's Report will be prepared for consideration at the May 14, 2013 City Council meeting. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 9`h day of April 2013 by the following vote: AYES: Irons, C. Johnson, N NOES: None ABSENT: None 2 ATTEST: Jvo4e Boucher, City Clerk El. Johnson, Leage, Smukler ie L.Irons, M ® RESOLUTION NO.21-13 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA APPROVING THE AGREEMENT REAGARDIN'G DEED OF TRUST, GROUND LESSOR'S ACKNOWLEDGEMENT AND CONSENT FOR THE LEASE AGREEMENT LEASE SITE 78-81/78W-81W WITH VAN BEURDEN INVESTNIENTS (701 & 715 ENIBARCADERO) THE CITY COUNCIL City of Morro Bay, California WHEREAS. the City is the Lessor of property known as Lease Site 78-81/78W- 81 W located at 701 and 715 Embarcadero: and WHEREAS. Van Beurden Investments. a California general partnership, is the tenant on the lease: and WHEREAS. Van Beurden Investments is refinancing said property to generate capital for improvements and repairs: and WHEREAS. Van Beurden Investments lender. Rabobank N.A.. is requesting approval of an agreement to provide them certain rights under the lease agreement to ® secure the loan: and WHEREAS, the City Attorney has reviewed and approved the attached agreement. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay. California, that the Agreement Regarding Deed of Trust. Lessor's Acknowledgement and Consent for Lease Site 78-81/78W-81 W is hereby approved and that the Mayor is hereby authorized to execute said agreement. PASSED AND ADOPTED by the City Council of the Citv of Morro Ba_v at a regular meeting thereof held on the 9th day of April, 2013 on the following vote: AYES: Irons, C. Johnson, N. Johnson, Leage, Smukler NOES: None ABSENT: None J �IIE L. IRONS, Nlayor ATTEST: JAMIE BOUCHER. City Clerk RECORDING REQUESTED BY: WHEN RECORDED MAIL TO: Rabobank, N.A. Retail Credit Risk 2415 La Brucherie Rd. Imperial, CA 92251 AGREEMENT REGARDING DEED OF TRUST, GROUND LESSOR'S ACI(NOWLEDGEMENT CONSENT, AND AGREEMENT THIS AGREE vtENT is entered into this Pyy, 1 1114' day of, 2013, by and between the City of Morro Bay, a municipal corporation of the State or California, ("Ground Lessor"), Van Beurden Investments, a California general partnership ("Borrower'D, and Rabobank, N.A., a national banking association ("Lender"). RECITALS A. Ground Lessor and Borrower entered into a lease executed on November 24, 1992, ("Ground Lease"), for at least a term of forty (40) years commencing on January 1, 1993 and terminating on December 31, 2032. The Ground Lease is for Borrower's leasehold interest in the real property, in City of Morro Bay, San Luis Obispo County, California, commonly known as Tidelands Lease Sites 82 - 85/82W - 85W as further described in the last paragraph of the recitals of the Ground Lease recorded March 30, 1993 as Instrument No. 1993-016751 of the San Luis Obispo County Recorder, CA and further described in Exhibit A thereto ("Leased Property"). Borrower and Ground Lessor entered into an Amendment #I to Lease Agreement for Lease Site 78-81/78W-81 W which was approved and adopted by the City Council of Ground Lessor on January 28, 2008 and Amendment r2 to Lease Agreement for Lease Site 78-81/78W-81 W dated May 8, 2012, collectively referred tows `Amendments". For purposes of this Agreement the term "Ground Lease" as used herein shall also include the Amendments. B. Under the provisions of Article 5 of the Ground Lease, Borrower has the right to encumber the Leased Property by deed of trust or mortgage, and Borrower intends to encumber the Leased Property under deed of trust, as a first lien, in favor of Lender, a true and correct copy of which is attached hereto as Exhibit "I" and by this reference is hereby incorporated (the "Deed of Trust"). The term Deed of Trust shall include all extensions, renewals, modifications, additions, and consolidations thereof. C. Borrower assigned the Ground Lease to Flying Dutchman Enterprises, Inc. ("FDE") with the consent of Ground Lessor pursuant to an Assignment and Assumption of Lease dated March 26, 1993. FDE assigned the Ground Lease back to Borrower under the Assignment and Assumption of Lease dated March 14, 1994, with the consent of the Ground Lessor. FDE holds no interest in the Ground Lease and certain personal guarantees were reaffirmed by the individuals defined as guarantors as set forth in Paragraph 5 of each of the foregoing described assignments. D. Lender is willing to loan ("Loan") funds to Borrower, and secure same by the Deed of Trust, subject to the existing terms of the Ground Lease, and under the additional -terms and conditions herein set forth, provided Ground Lessor consents to the assignment of Borrower's rights under the E An Ground Lease and the lien of the Deed of Trust in a first lien priority, and agrees to the terms and conditions of this Agreement. Ground Lessor is willing to agree to the terms and conditions of this Agreement as set forth more fully below. THEREFORE, THE PARTIES AND EACH OFT HEIM, AGREE AS FOLLOWS: 1. No Encumbering of the Fee: Lender agrees and acknowledges that the Deed of Trust in favor of Lender as executed by Borrower, shall encumber only the Leased Property, and shall not be deemed an encumbrance on the City's fee interest in the Leased Property. Ground Lessor hereby consents to the first lien of the Deed of Trust upon the Leased Property. Ground Lessor agrees not to encumber Ground Lessor's fee interest in the Leased Property in any manner which would constitute a priority interest over the Deed of Trust. 2. Notice to Lender: For purposes of notice to the Lender under paragraph 4 of this agreement and Article 5 of the Ground Lease, the notice shall specify Loan number if provided to Ground Lessor by Lender and shall be sent to Lender's address as set forth by its signature below. Lender may, from time to time, change the foregoing address for receiving notice under this agreement, by delivering written notice of such change of address to the Ground Lessor as provided in Paragraph 16 below. 3. Request for Notice: Immediately after the recording of the Deed of Trust pursuant to this agreement, containing a power of sale as defined by California law, Borrower shall, at Borrower's own cost and expense, record, in the official records of the office of the County Recorder of San Luis Obispo, California, a written request, executed and acknowledged by Ground Lessor, for a copy of any ® notice of default and a copy of any notice of sale under the Deed of Trust to be mailed to Ground Lessor at the address specified in paragraph 16 below, or as said address may hereafter be changed by Ground Lessor in accordance with said paragraph 16. 4. Notice Requirements: Ground Lessor shall simultaneously with notice to Borrower, also mail to Lender, a duplicate copy of any and all notices which Ground Lessor may. from time to time, give to or serve on Borrower pursuant to or relating to the Ground Lease and Ground Lessor shall undertake other actions required hereunder by Lender in regard to Borrower, the Leased Property, or the Ground Lease. Borrower shall at all times keep Ground Lessor informed in writing of the mailing address of Lender and any changes in Lender's mailing address which become known to Borrower. Any notices or other communications permitted or required by this agreement, or the Ground Lease, or by law, shall be served pursuant to paragraph 16 below. 5. No Modification of Ground Lease: Notwithstanding anything to the contrary in this agreement, Borrower and Ground Lessor hereby expressly stipulate and agree that they will not hereafter modify the Ground Lease in any way nor cancel the Ground Lease by mutual agreement nor transfer the Leased Property without first obtaining the written consent of Lender during the term and existence of the Deed of Trust. The parties recognize and agree that Ground Lessor's execution of this agreement shall be based upon the prior approval of the City Council for the City of i�9orro Bay, and that to the extent that this agreement is deemed a modification of the Ground Lease, that the execution of this agreement by the Ground Lessor shall be deemed to be in complete compliance with Section 12.07 of the Ground Lease. 6. Lender's Authority to Perform: Lender shall have the right to, but not the obligation, at any time during the term of the Ground Lease and the term and existence of the Deed of Trust: (a) Do any act or thing required of Borrower under the Ground Lease, and any such act or thing 2 ® done and performed by Lender shall be as effective to prevent a forfeiture of Borrowers rights under this Ground Lease as if done by Borrower itself; (b) Enforce its remedies under the Deed of Trust ("Enforcement Action "), including without limitation, realizing on the security afforded by the leasehold estate by exercising foreclosure proceedings or power of sale or other remedy afforded in law or in equity or by the Deed of Trust, and to: i) Transfer, convey or assign the title of Borrower to the leasehold estate created by the Ground Lease to any purchaser at any foreclosure sale, whether the foreclosure sale be conducted pursuant to court order or pursuant to a power of sale contained in the Deed of Trust or to any transferee of Borrower's leasehold estate resulting from any Enforcement Action ; or ii) Acquire and succeed to the interest of Borrower under the Ground Lease by virtue of any foreclosure sale, whether the foreclosure sale be conducted pursuant to a court order or pursuant to a power of sale contained in the Deed of Trust or resulting from any Enforcement Action; or iii) Acquire and succeed to the interest of Borrower under the Ground Lease by virtue of a deed in lieu of foreclosure acceptable to Lender. Ground Lessor agrees that any Enforcement Action shall not constitute an event of default under the Ground Lease, nor shall Ground Lessor terminate the Ground Lease or disturb any such purchaser or transferee in obtaining the right and continuing as, ground lessee (as successor in interest to the ® Borrower) under the Ground Lease. This nondisturbance applies to any option to extend or renew the Ground Lease which may later be agreed upon by Ground Lessor and Borrower with the consent of Lender. This nondisturbance shall be effective and self -operative without the execution of any further instruments upon any purchaser or transferee succeeding to the interest of the Borrower's rights under the Ground Lease. Ground Lessor will recognize any successor to Borrower's interest in the Ground Lease, as the ground lessee under the terms of the Ground Lease for all purposes thereunder and for the remaining term thereof. To the extent Lender or its affiliates is the purchaser or transferee, Lender or its affiliates shall be liable to perform the obligations herein imposed on the ground lessee only for and during the period it is in possession or ownership of the Leased Property. In no event shall any purchaser or transferee be (a) liable for any prior act or omission of ground lessee unless and to the extent such act or omission is continuing following the completion of the Enforcement Action and notice of default was provided to Lender pursuant to paragraph 4 hereof, or (b) subject to any offsets or defenses that Ground Lessor may have against Borrower or (c) bound by any modification or amendment to the Ground Lease unless approved in writing by Lender. 7. Termination by Ground Lessor: During the term and existence of the Deed of Trust, before Ground Lessor may terminate the Lease because of any default under or breach of the Ground Lease by Borrower, Ground Lessor must give written notice of the default or breach to Lender, in accordance with the provisions of paragraph 4 of this agreement and afford Lender the opportunity after service of the notice to: (a) Cure the breach or default within thirty (30) days where the default can be cured by the payment of money to Ground Lessor or some other person; _ (b) Subject to subsection (c) below, cure the breach or default within sixty (60) days where the breach or default must be cured by something other than the payment of money and can ® be cured within that time; or ® (c) Cure the breach or default in such reasonable time as may be required where something other than money is required to cure the breach or default and cannot be performed within sixty (60) days provided that acts to cure.the breach or default, including at Lender's option, commencement of an action as necessary to appoint a receiver, are commenced within sixty (60) days after service of notice of default on Lender by Ground Lessor and are thereafter diligently continued by Lender. Nothing in this agreement shall be construed as an obligation or requirement by Lender to cure any default of Borrower. S. Foreclosure to Forestall Termination: Notwithstanding any other provisions of the Ground Lease. Lender may forestall termination of the Ground Lease by Ground Lessor for a default under or breach of the Ground Lease as provided in Paragraph 7 above or by commencing proceedings to foreclose its Deed of Trust on the leasehold estate created by the Ground Lease. The proceedings so commenced may be for foreclosure of the encumbrance by order of court or for foreclosure of the encumbrance under the power of sale contained in the Deed of Trust or deed in lieu (the "foreclosure proceedings"). The foreclosure proceedings shall not, however, forestall termination of the Ground Lease by Ground Lessor for the default or breach unless: (a) The foreclosure proceedings, including filing of a notice of default, are commenced within ninety (90) days after service on Lender of the notice described in paragraph 7 hereof; and. (b) The foreclosure proceedings, after having been commenced, diligently pursued in the manner required by law to completion; and, (c) Lender subject to the cure periods provided in Paragraph 7 above keeps and performs all of the terms, covenants, and conditions of the Ground Lease requiring the payment or expenditure of money by Borrower, including but not limited to the obligation of Borrower to pay rent, until the foreclosure proceedings are complete or are discharged by redemption, satisfaction, payment, or conveyance of the leasehold estate to Lender. 9. Transfer of Lease Upon Foreclosure. Provided that Lender gives written notice of transfer to Ground Lessor setting forth the name and address of the transferee as well as the effective date of the transfer, the written consent of Ground Lessor shall not be required for transfer of Borrower's interest under the Ground Lease to: (a) A purchaser, including Lender or any of its affiliates, of the leasehold at a foreclosure sale of the encumbrance whether the foreclosure sale be conducted pursuant to court order or pursuant to a power of sale in the Deed of Trust; or, (b) An assignee the leasehold estate pursuant to an assignment in lieu of foreclosure, provided to the Lender under the Deed of Trust. 10. No Automatic Termination: Notwithstanding any other provision of the Ground Lease, should the Ground Lease terminate, as a matter of law, or otherwise because of the insolvency or bankruptcy of Borrower or because of any non -curable default under, or breach of, the Ground Lease by Borrower, subject to paragraphs 7 and 3 above, at Lender's option. Ground Lessor will execute a new lease for said Leased Property to the Lender, its affiliates or transferee as a new ground lessee, provided: (a) A written request for the new lease is served on Ground Lessor by Lender within one. hundred twenty (120) days after service on Lender of the notice describing the non -curable ® default in accordance with paragraph 2 hereof; 4 (b) The new lease is for a term ending on the same date the term of the Ground Lease would have ended had not the Ground Lease been otherwise subject to termination, provides for the payment of rent at the same rate that would have been payable under the Ground Lease had the Ground Lease not been otherwise subject to termination, and contains the same terms, covenants, conditions, and provisions as are contained in the Ground Lease; (c) Lender, its affiliates or transferee, on execution of the new lease by Ground Lessor, shall pay any and all sums that would, at the time of the execution of the new lease, be due under the Ground Lease but for its termination and shall otherwise fully remedy, or agree in writing to remedy, any other defaults under or breaches of the Ground Lease committed by Borrower prior to the termination that can be remedied; provided Ground Lessor delivered written notice of any such defaults to Lender in accordance with paragraph 4 above: (d) Lender, its affiliates or transferee, on execution of the new lease, shall pay all reasonable costs and expenses, not to exceed a total of $1500.00, including reasonable attorneys fees and courts costs, incurred by Ground Lessor in terminating the Ground Lease, recovering possession of the Leased Property and preparing the new lease; provided Ground Lessor provides a detailed breakdown and invoices supporting such expenses in a form acceptable to Lender. 11. No Mercer. Following the recording of the Deed of Trust, and until it is reconveyed by Lender, there shall thereafter, during the existence of that encumbrance, be no merger, without the ® prior written consent of Lender, of the leasehold estate created by the Ground Lease and the fee estate in the Leased Property merely because both estates have been acquired or become vested in the same person or entity. 12. Limitations on Lender's Liabilirv: Lender shall not be liable to Ground Lessor as an assignee of the Ground Lease unless and until such time as Lender acquires all rights of Borrower under the Ground Lease through foreclosure or other proceedings in the nature of foreclosure or as a result.of some other action or remedy provided by law, this agreement or the Deed of Trust. Should Lender become the owner of the leasehold through foreclosure, an assignment or transfer in lieu of foreclosure, or under the provisions of paragraph 10, following Lender's assignment by Lender to, and the assumption by, a new third party ground lessee of this Ground Lease, or of the new lease under paragraph 10, ("Lender's Lease Assignment"), then Lender shall be relieved of any further liability under this Ground Lease, or any new lease under paragraph 10, arising from and after the date of such Assignment. Any Lender's Lease Assignment shall subject to the prior consent of Ground Lessor, such consent to be based solely upon whether the assignee has the financial ability.to pay and perform Borrowers' obligations under the Ground Lease, which consent shall not be unreasonably withheld or delayed. Ground Lessor shall not unreasonably withhold or delay its consent to a Lender's Lease Assignment provided, however, that the provisions of such assignment must be consistent with the terms and conditions contained herein. A request by Lender for approval by Ground Lessor of Lender's Lease Assignment shall be submitted to Ground Lessor in writing along with a fully executed copy of the proposed assignment. In the event Ground Lessor's approval or disapproval of any Lender's Lease Assignment is. not given within forty-five (45) days of submission of a proposed assignment to Ground Lessor, such assignment shall be deemed approved by Ground Lessor as required under Section 10.01 of the Ground Lease. 5 13. Lender: The term "Lender" as used in this Agreement shall mean not only the entity that loaned money to Borrower as named as beneficiary, mortgagee, secured party, or security holder in the Deed of Trust, but shall also all subsequent assignees and holders of the security interest created by such instrument. 14. Disputes Between Ground Lessor and Lender: The parties agree that this agreement shall govern the rights and obligations of the parties, in addition to the terms, conditions, and obligations under the Ground Lease, during the term and existence of the Deed of Trust. To the extent that any conflict or ambiguity exists between this agreement and the Ground Lease, as between the rights of Lender and Ground Lessor, then the terms of this agreement shall be deemed controlling. 15. Attorney's Fees: If either Borrower, Ground Lessor, or Lender shall bring suit against the other for the enforcement of any provision in this agreement or for declaratory relief in connection with this agreement or the Ground Lease, the prevailing party in any such suit shall be awarded a reasonable attorney's fee and court costs which shall be taxed by the court as a part of the cost of such action. 16. Notices. All notices given under this agreement shall be in writing and be given by personal delivery, overnight courier (such as UPS, or Federal Express) or by registered or certified United States mail, postage prepaid, sent to the party at its address appearing below its signature. Notices shall be effective upon the first to occur of receipt, when proper delivery is refused, or the expiration of forty-eight (48) hours after deposit in registered or certified United States mail as described above. Addresses for notice may be changed by any party by written notice to any other party in accordance with this Section. Ground Lessor agrees that this agreement, notwithstanding the requirements of Article 5, shall satisfy the notice requirement of Article 5 of the Ground Lease for purposes of Ground Lessor notifying Lender of any event of default of Borrower and no registration with Ground Lessor is required. 17. Ground Lessor's Estoppel Certificate. To induce Lender to make the Loan to Borrower, Ground Lessor agrees and represents and warrants to Lender as follows: (a) True and Complete Ground Lease. The Ground Lease which has been duly executed and accepted by Ground Lessor and Borrower and delivered to Lender constitutes the entire agreement between Ground Lessor and Borrower as it pertains to the lease of the Leased Property and has not been modified either in writing or orally. (b) No Default. As of the date of this agreement, (i) all conditions and obligations to be Performed by either Ground Lessor or Borrower under the Ground Lease have been satisfied; (ii) there exists no breach, default or event or condition which currently, or which with notice or lapse of time, would constitutesuch a breach or default under the Ground Lease; (iii) there are no existing claims, defenses or offsets against obligations of either Ground Lessor or Borrower under the Ground Lease, including any against rents due or to become due under the terms of the Ground Lease. (c) No Other Leases. There are no leases, options or other agreements regarding transfer of any interest in, or otherwise materially affecting the Leased Property other than the Ground Lease. (d) No Advance Payments. No rent or other sums payable or deposits under the Ground Lease have been paid in advance. ® 6 (e) No Prior Assignments. Ground Lessor has not received notice of any prior assignment, hypothecation or pledge of Borrower's interests in the Ground Lease. (I) No Pending Litigation/Violations. Ground Lessor has not received notice of any litigation pending, proposed, or threatened against or in connection with its fee interest in the Leased Property or the Ground Lease or the Leased Property. Ground Lessor has not sent or received any written notice that the Leased Property, or any part thereof, is in violation of any laws, ordinances or regulations. Ground Lessor agrees for the benefit of Lender or any purchaser, from time to time, on not less than 30 days prior notice from Lender, to deliver a certificate to Lender or purchaser, as the case may be, that confirms all of the above in this paragraph. 18. Authority. Each party represents to the other that the execution, delivery and performance by such party under this Agreement is within such party's powers and authority and has been duly authorized; this agreement constitutes a legal, valid and binding agreement of each such party, enforceable against such party in accordance with its terms, and any instrument or agreement required thereunder, when executed by the individuals duly authorized to sign on behalf of such party, will be similarly legal, valid, binding and enforceable; and if any of the foregoing is inaccurate or incorrect, in any way, such party will indemnify, defend and hold the other party, as appropriate, harmless from any and all claims, losses or damages the other party may experience or incur as a result such party's breach of this representation. GROUND LESSOR: Address for notices to Ground Lessor: City of Morro Bay By: yW Name: amie L. Irons Title: Pfayor By: Title: LENDER: RABOBANK. N.A. By: Rafael Bernal Title: Vice President L I Attention: Address for notices to Lender: Retail Credit Risk 2415 La Brucherie Rd. Imperial, CA 92251 Attention: Rafael Bernal (e) No Prior Assignments. Ground Lessor has not received notice of any prior assignment, hypothecation or pledge of Borrower's interests in the Ground Lease. (f) No Pending Litigation/Violations, Ground Lessor has not received notice of any litigation pending, proposed, or threatened against or in connection with its fee interest in the Leased Property or the Ground Lease or the Leased Property. Ground Lessor has not sent or received any written notice that the Leased Property, or any part thereof, is in violation of any laws, ordinances or regulations. Ground Lessor agrees for the benefit of Lender or any purchaser, from time to time, on not less than 30 days prior notice from Lender, to deliver a certificate to Lender or purchaser, as the case may be, that confirms all of the above in this paragraph. 18. Authority. Each party represents to the other that the execution, delivery and performance by such party under this Agreement is within such parry's powers and authority and has been duly authorized; this agreement constitutes a legal, valid and binding agreement of each such party, enforceable against such party in accordance with its terms, and any instrument or agreement required thereunder, when executed by the individuals duly authorized to sign on. behalf of such party, will be similarly legal, valid, binding and enforceable; and if any of the foregoing is inaccurate or incorrect, in any way, such party will indemnify, defend and hold the other party, as appropriate, harmless from any and all claims, losses or damages the other party may experience or incur as a result such parry's breach of this representation. GROUND LESSOR: Address for notices to Ground Lessor: City of IMorro Bay 595 Harbor Street I Name://Jamie L. Irons Title: V Mayor By: - LENDER: RAB BANK, N. . By: Rafael Bernal Title: Vice President F7� 7 Morro Bay, CA 93442 Attention Address for notices to Lender: Retail Credit Risk 2415 La Brucherie Rd. Imperial, CA 92251 Attention: Rafael Bernal BORROWER: Van Beurden Investments, a California general partnership Bv: 44 Title: Clemens Van Beurden. Partner y: Title: Leon Van Beurden. Partner By: Ti e: Paul Van Beurden, Partner By: ® Title: William Van Beurden, Partner Address for notices to Borrower: Attenti 0 BORROWER: Van Beurden Investments, a California general partnership By: Title: Clemens Van Beurden. Partner Title: Leon Van Beurden. Partner By: Tide: Paul Van Beurden, Partner By: /,f//Jz " wze�� Title: William Van Beurden, Partner 8 Address for notices to Borrower: 1330 Van Beurden Drive, 101 Los Osos, CA 93402 Attention: Leon Van Beurden 0 1*.4:i4:liil� File No.: 4005-4221958 (HH) Property: 701 & 715 Embarcadero, Morro Bay, CA 93442 PARCEL A: LEASE SITES 78, 79, 78W AND 79W, AS SHOWN ON THAT CERTAIN DOCUMENT ENTITLED "MINUTES ORDER - MORRO BAY CITY COUNCIL MEETING OF NOVEMBER 26, 1984, G-1 CONSIDERATION OF CITY LEASE REPLACING SUBLEASE UPON DIVISION OF LEASE SITE 78 THROUGH 81W", RECORDED JANUARY 31, 1985 IN BOOK 2674 AT PAGE 237 OF OFFICIAL RECORDS, AND BEING A PORTION OF PARCEL 18 OF PARCEL MAP MB- 68-30, IN THE CITY OF MORRO BAY, COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, ACCORDING TO MAP RECORDED OCTOBER 10, 1968 IN BOOK 3 AT PAGE 10 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPTING THEREFROM ALL DEPOSITS OF MINERALS INCLUDING OIL AND GAS IN SAID LAND AND TO THE STATE OF CALIFORNIA OR PERSONS AUTHORIZED BY THE STATE OF CALIFORNIA, THE RIGHT TO PROSPECT FOR, MINE AND REMOVE SUCH DEPOSITS FROM SAID LAND. PARCEL B: LEASE SITES 80, 81, BOW AND BIW, AS SHOWN ON THAT CERTAIN DOCUMENT ® ENTITLED "MINUTES ORDER - MORRO BAY CITY COUNCIL MEETING OF NOVEMBER 26, 1984, C-1 CONSIDERATION OF CITY LEASE REPLACING SUBLEASE UPON DIVISION OF LEASE SITES 78 THROUGH 81W", RECORDED JANUARY 31, 1985 IN BOOK 2674 AT PAGE 237 OF OFFICIAL RECORDS, AND BEING A PORTION OF PARCEL 18 OF PARCEL MAP MB-68-30, IN THE CITY OF MORRO BAY, COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA, ACCORDING TO MAP RECORDED OCTOBER 10, 1968 IN BOOK 3 AT PAGE 10 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPTING THEREFROM ALL DEPOSITS OF MINERALS INCLUDING OIL AND GAS IN SAID LAND AND TO THE STATE OF CALIFORNIA OR PERSONS AUTHORIZED BY THE STATE OF CALIFORNIA, THE RIGHT TO PROSPECT FOR, MINE AND REMOVE SUCH DEPOSITS FROM SAID LAND. A.P.N. 940-000-192 ® 4OD5-422.956 1Of El State of California County of S'�n �I' PlLi On 42rd �3. before me, c.? A A ZaK , Notary Public, personally appeared Cle' Van Beurden who proved to me on the basis of satisfactory evidence to be the persor$) whose name( is/are subscribed to the within instrument and acknowledged to me tha67eshe/they executed the same in its/her/their authorized capacity(), and that by is/her/their signatureX)) on the instrument the person), or the entity upon behalf of which the personX acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. GILA M. 2A9 Commission • 19MM ','e' NolL7 pu09p Ci91aMn 90 Luis Obispo Canty Comm. M hn 24. 2016 State of California County of .Son %i5 n%iSPO On }�o2-r 2D13 before me, Gr/q A4. Zw- Notary Public, personally appeared Leon Van Beurden , who proved to me on the basis of satisfactory evidence to be the person(A whose name(,ioare subscribed to the within instrument and acknowledged to me tha6lshe/they executed the same ir( s/her/their authorized capacity(ip4), and that by ii /her/their signature(} on the instrument the person(, or the entity upon behalf of which the person(K acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. LI m� r.2ac eoniolnson � loeso9s' tarry PoOk - Cnlwwa . so Lpb Obispo Canty Contm. WNm2s. 2016 Signature f Notary ublic CIJ ElI State of California County ofn L"., a,,, On / 2, 20/3 before me, 6 r/a Nl. ZM Notary Public, personally appeared Paul Van Beurden , who proved to me on the basis of satisfactory evidence to be the person(51 whose namej6 is/are subscribed to the within instrument and acknowledged to me thatLi-e7she/they executed the same in is/her/their authorized capacity(igK), and that by is/her/their signaturej4 on the instrument the person(,f, or the entity upon behalf of which the persono acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. eaA Y. UJ! CDOVmDsbe • 19a50DS aourr vmee . CDD1om10 Sin Fup OWDo Owvry Nr Comm. Fspins !In 21, 2016 Signatu a of Not Public State of California County of Fr( On April 1, 2013 before me, Sandra L. Rest , Notary Public, personally appeared William Van Beurden. who proved to me on the basis of satisfactory evidence to be the person(4 whose name(4 is/arm subscribed to the within instrument and acknowledged to me that he/stie/tljey executed the same in his/hef/theif authorized capacity(ies), and that by his/Fier/t#teirsignatureW on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal Signature of Notary Public SANDRA L. BEST Commissions 1860749 Notary Public •-Calffornia ja ..Fresno County Comm. . frea Up B. 201jj 0 State of California County of tit�l�e i7[i On —1(0 - 013 before me, Pn if 1R (`1Jf f)e z Notary Public, personally appeared Rafael Bernal who proved to me on the basis of satisfactory evidence to be the person(g) whose name($) is/a1`e subscribed to the within instrument and acknowledged to me that to/she/they executed the same in his/*/thy authorized capacity,(ies), and that by hisil-w it signature( -on the instrument the person(s5, or the entity upon behalf of which the person(sf acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. RADUEL GDDINEZ CootmiPsibaln O 1912525 Nmrysuic •California z Imperial County My Comm. Expires Nov 7, 2014 Signa u e yf Notary Public State of California County of On before me, Notary Public, 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 authorized capacity(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 certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature of Notary Public E. CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT State of California l J} County of San Luis Obispo ss. On t to, 2013 before me, (Date) personally appeared Dana Swanson. Notary Public L, ZroNS (Signer/s) who proved to me on the basis of satisfactory evidence to be the person(O whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same iii his/Ilerhh* authorized capacity(les), and that by his/hyxftherr signature(e on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certif}, under PENTALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. (Signature of Notary Public) My commission expires on 12/31/14. OPTIONAL DANA SWANSON comm. #1919584 yj Notary PuDWCAlibmia �+ MN W Sb L7dk V COUtM Catnrt DEC. J1, 2U14 This area for official notarial seal. Though the information below is not required by lmv, it may prove valuable to persons relying on the document and could prevent jraudtdent removal and reattachment of this form to another document. Description of Attached Document Title of Type of Document: Document Date: /J` ew,ri" �G �r-il orTntit-f-t Gra,,.� tCSe •r5 rgl[ho Jted¢,4�1 Number of pages Signers) Other Than Named Above: Capacity(ies) Claimed by Signer Signer's Name: -raM I ❑ Individual a Corporate Officer—Title(s): a or ❑ Partner: ❑ Limited ❑ Genera ❑ Attorney -in -Fact ❑ Trustee ❑ . Guardian or Conservator ❑ Other: Signer Is Representing: G Mor-,o Bo - Top of thumb here .* RESOLUTION NO. 20-13 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY SUPPORTING THE DEVELOPMENT OF A PUBLIC BIKE PARK WITHIN THE CITY LIMITS THE CITY COUNCIL City of Morro Bay, California WHEREAS, the Recreation and Parks Department operated a BMX bike track at 220 Atascadero Road from 2000 to 2005; and WHEREAS, the real property at 220 Atascadero Road was sold to a private party by voluntary sale on April 15, 2005: and WHEREAS, the bike track was subsequently removed by the new oxvner and replaced with an RV Park: and WHEREAS, the citizens of Morro Bay expressed interest during public comment at the February 26. 2013 City Council meeting to establish a bike park on public land within the city limits ® of Morro Bay; and WHEREAS, said interested citizens presented available resources to establish and operate a bike park within City limits. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay to support the establishment, development; and operation of bike park on City property for public use. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held this 12t' day of March. 2013 by the following roll call vote: AYES: Irons, C. Johnson, N NOES: None ABSENT: None Johnson, Leage, Smukler ,Z4M,� 42162� J IIE IRONS, t AYOR ATTEST: JANf BOUCHER, CITY CLERK CITY OF MORRO BAY ADVISORY BOARDS HANDBOOK :►1 BY-LAWS Date: February 1, 2013 Approved by Resolution 13-13 Mission Statement The Ctty of Morro Bay is dedicated to the preservation and enhancement of the quality• of life. The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. INTRODUCTION Welcome and thank you for your interest in serving on one of the City's Advisory Boards. By serving on one of Morro Bay's Advisory Boards, you can help plan and guide the City's future. It is important that members of the Advisory Boards understand the functions and responsibilities of a board member. We hope that you find serving on the City's advisory board personally satisfying, and in the process gain invaluable knowledge and experience. The City of Morro Bay Municipal Code empowers the City Council to form boards and commissions to assist the City Council in legislating and managing the affairs of the City. From time to time citizen advisory committees are appointed to meet a specific topic and need. Their varied roles provide significant opportunities for formulating City policy and for creating public forums for meaningful community participation. Consistent with the City's Mission Statement, advisory boards can help the City achieve its mission and purpose, which is to preserve and enhance the citizens of Morro Bay's quality of life. This Handbook shall serve as a guide to assist you in the sometimes -complex, but often rewarding, process of serving on one of the City's Advisory Boards. These advisory bodies assist the City Council in making better -informed decisions by formulating new ideas, information gathering, receiving public testimony and comments, analyzing complex issues, and making recommendations on specific projects and broad policy. Advisory Boards advise the City Council and the City Manager on matters within their area of responsibility and interest; help focus attention on specific issues and problems within their scope of responsibilities, and recommend action and alternatives for Council consideration; act as channels of communication among City government, the general public, and interest groups; and balance community wants with municipal responsibility and resources. At limes, your role may be challenging and complex. Public opinion can be sharply divided, questions may overlap, and sometimes the province of one body may also be the territory of another. Tberefore, we have created this handbook to assist you with some of the fundamental aspects of your new responsibility. 8,JMA Aeeuxslbr LaUlUaLL M PAiE2 11 F_ 11 L Much of the information in this handbook comes from City policy. such as the City's Municipal Code and the City Council Policies and Procedures Manual. In addition. State Law governs certain responsibilities of advisory body members. The material presented is intended to: (1) Give interested persons an understanding of why the City's adyison bodies have been established and how they function within the overall governmental framework and. (2) Summarize the roles. relationships and responsibilities of each advisorybody member. Each Advisory Board within the City has its own By -Laws. The By -Laws are included herein for your ease of reference. The sections of the Handbook are divided as follows: I. General Information on Advisory Boards 2. FAQs 3. Background Information of City Government 4. The Brown Act S. Political Reform Act of 1974 (Conflict of Interest) 6. Advisory Body Summary 7. Advisor) Board By -Laws We hope this handbook will answer man) of your questions. get you off to a good start. and contribute to %our satisfaction in serving the citizens of the City of Morro Bay. • I I isim.' �LLMLL ixr 1. ,W 0 Pea[ l l . General Information on Advisory Bodies Advisory bodies are authorized by both the Morro Bay Municipal Code and the City Council. Advisory boards provide an opportunity for interested residents to participate in the governing of their community under guidelines and procedures established by the Council. Advisory bodies can improve the quality of City government by providing the Council with resources to make better -informed decisions. Because of the nature of various advisory bodies, they can serve as the "eyes and ears" of the Council for issues and matters that otherwise might not receive attention. Other benefits of advisory boards include improvement in the lines of communication between the public and the Council, greater opportunities for discussion of public issues, and more citizen involvement in City government. There is considerable variety in the purpose or responsibility of these bodies. Advisory Boards have been created by the City Council to serve the City of Morro Bay's unique needs. The authority of an advisory body will depend upon its specific purpose. Each has a specific focus and will make recommendations to the Council on issues related to that specific field. Decisions made by an advisory body may be appealed to the Council. The Council may not always accept the recommendation of an advisory body because of additional information available or a need to balance the recommendation with policy or community priorities. Generally, advisory bodies are empowered only to make recommendations to the Council or to the City staff, unless specifically authorized by law or Council to do otherwise. There should be two-way communication so that commissions are aware of the long-term goals Council has adopted, and the advisory body is able to present new ideas to the Council. Advisory Board members are encouraged to attend and/or watch Council meetings. Members of the advisory boards are volunteers who are appointed by the City Council and serve at the pleasure of the City Council. There is no compensation or benefits for board members, except for Planning Commission, whose responsibilities are greater and meetings more frequent. All members are expected to attend scheduled advisory board meetings and all meetings shall be conducted in accordance with Robert's Rules of Order, City Council Policies and Procedures Manual and State law. Currently, the City of Morro Bay has seven Advisory Boards: • Harbor Advisory Board • Public Works Advisory Board • Recreation and Parks Commission • Planning Commission • Tourism Business Improvement District • Citizens Oversight Committee I xenon: Aeub' 16401 keML rl.lof3 PA,;k 4 u .I L 2. Frequently Asked Questions A. HOW ARE BOARD OR COMMISSION MEMBERS CHOSEN? APPLICATION AND SELECTION PROCESS • All recruitment for Board and Commission members is open and published in a local newspaper. The City accepts applications from interested persons throughout the year. • Applicants will be sought from all segments of the community, representing various interests and groups. • Appointment is made by the City Council. Each application is carefully reviewed by the City Council. • Members serve at the pleasure of the City Council. • Incumbents are considered for reappointment at the conclusion of their terms. • Terms are four years, commencing on February 1°, and the terms are • staggered. ♦ HOW DO 1 GET AN APPLICATION? Applications may be obtained from the City Clerk's office at City Hall. Information on vacancies and/or specific recruitment periods may be requested by phoning the City Clerk An official application form must be completed for each position. ARE THERE ANY TIPS TO IMPROVE MY CHANCES OF BEING APPOINTED? Fill out a separate form for each board or commission in which you are interested. It is to your advantage to tailor each application to the specific board or commission for which you are applying. Emphasize different aspects of your background to match those needed for a particular board or commission. Emphasize your talents. Clearly indicate how your particular talents, skills, trainin& or experience will benefit the board or commission for which you wish to be considered. Become familiar with the appropriate board or commission. Attend meetings, talk with board or commission members, or read documents they have developed to acquaint yourself with their work. Talk with the department head responsible for staffing the specific board or commission in which you are interested. I W[ m Abceasld:.'YH&Z ue L QU 0 Peas B. QUALIFICATIONS FOR SERVICE Board and Commission members may be required to wear "different hats" at different times. The ability to suitably perform the varied roles requires specialized skills and knowledge. Qualification for service can be divided into four general areas: LONG-RANGE INTEREST IN THE COMMUNITY The ability to conceive and be concerned with the impact of current decisions on future citizens is paramount. Board and commission members are required to analyze issues, to listen to public comment through formal hearings or informal discussion, to interpret and apply mandates of the General Plan, and to analyze all the pertinent data before arriving at objective decisions which will be in the best interest of the community as a whole. FAIRNESS, COMMON SENSE, HONESTY AND GOOD CHARACTER Keeping the public interest in mind, a board member will be called upon to use everyday good sense in balancing the need of public and private groups. Controversial issues do arise, and the ability to make decisions based on merit rather than personalities is a must. Other traits include imagination, Flexibility and the ability to act in a judicial vs. legislative capacity. KNOWLEDGE OF THE COMMUNITY MARKETPLACE, PROCESS, OBJECTIVES, AND LAWS A first-hand knowledge of economic systems, the general operation of government, and a basic understanding of the legal process is important. This knowledge will be of tremendous value when board members are required to conduct public hearings, analyze and receive testimony and make meaningful decisions. TIME TO SERVE IN APPOINTED CAPACITY The amount of time that a board or commission member devotes to his/her duties varies with each board or commission. Before making a personal commitment, a prospective applicant should honestly evaluate whether he/she has adequate free time to attend the meetings, to review and be familiar with meeting materials, and to communicate with the public as well as with department staff. W=D: AW4*# rJUALMLWU PACIF6 n U • 0 C. STATEMENTS OF ECONOMIC INTERESTS / CONFLICT OF INTEREST Members of any board or commission are required to file Statements of Economic Interest. Additionally. Board and Commission members are required to refrain from participation in matters where they have the potential for conflict of interest. (See Section 5 for the City's policy on Conflict of Interest) • I xsmn: d&Gt a* uFx.a� •,,y1. m13 0 VAG r 3. Background Information on City Government The City of Morro Bay is a general law city and became incorporated in 1964 and operates under the laws of the State of California. The City Council, City Manager, City Clerk and City Attorney are integral to the day-to- day operations of the City. As such, we have included a summary of the City government's main function for your information and reference. a. City Council: The City Council is elected by a majority vote by the citizens of Morro Bay. The City Council is the governing body of the City and is made up of the Mayor and four council members. The City Council is accountable to the citizens of Morro Bay. The decisions of the City Council are reached by a majority vote. The City Council formulates policy, approves programs, appropriates funds and establishes local taxes and assessments. The City Council enacts local laws (ordinances) and regulations for governing of the City. The local ordinances adopted by the City Council are compiled in the City's Municipal Code. b. City Manager: The City Manager is the administrative head of the government of the City. The City Manager is appointed by the City Council, and serves at its pleasure. The City Manager's duties include implementation of policies and procedures initialed by the City Council. The City Manager also is responsible for all City personnel, except as to the City Attorney, and serves as a liaison to each board, unless otherwise noted in the Board By-laws. c. City Clerk: The City Clerk's duties include, but are not limited to: recording, writing and maintaining Council proceedings, conducting municipal elections, publishing ordinances and resolutions and other official City documents, storing and indexing official documents and City records for retrieval, administering Conflict of Interest disclosures, and serving as the custodian of the seal of the City. I xei D. M�'rFxs/6-lBHklmf'u, 1. 2013 P"8 • d. Cite Attorney: The City Attorney is appointed by the City Council. The City Attorney advises the City Council and City Officers (in their official capacity) in legal matters, attends all Council meetings and some board meetings. represents the City in legal actions and proceedings, and retains. supervises and monitors outside legal counsel. The City Attorney also approves all bonds and contracts made by the City. prepares ordinances and resolutions as required by the Council and prosecutes violations of the City's Municipal Codes and Ordinances. I xn, M±Gtasl .;P; F 0 P.rr 9 4. The Brown Act This is a mere glimpse of the Brown Act. A more detailed Brown Act and Political Reform Act Booklet is available to the advisory board through the City Attorney's office. a. The Brown Ac[. The general purpose of the Brown Act is to aid in the conduct of the people's business. The people, in delegating authority, do not give their public servants the right to decide what is good for the people to know and what is not for the people to know. Therefore, it is the intent of this Act that the actions and deliberations of all local agencies be taken openly, including deliberations and collective discussion involving the examination, weighing and reflection on the reasons for or against a choice. It also includes the exchange of facts preliminary to the ultimate decision. Generally all meetings of City boards, commissions, committees and groups are to be open and public and all persons are to be permitted to attend any meeting. Under certain strict circumstances, closed session meetings are permitted. Brown Act Compliance is absolutely required. We encourage you to carefully review the Brown Act Booklet which is available through the City Attorney's Office which describes in detail the Brown Act. WMD'rtFF.lei/friBHIY Lf 11201 PAGE/0 n U • 0 5. Political Reform Act (Conflicts of Interest) The Political Reform Act (Government Code sections 81000. et seq.) was approved by the voters of the State of California and is intended to prevent conflicts of interest by requiring public officials to disclose certain personal financial interests which could foreseeably cause conflicts. In addition. a public official may be required to disqualify himself/herself from making. participating in, or attempting to influence any government decision which will affect any of his/her financial interests, not just those that are required to be disclosed. The City's Brown Act and Political Reform Act Booklet explains in more detail what a conflict of interest is, and when the law requires disqualification. In addition, the Fair Political Practices Commission is available for advice. Under the Political Reform Act, no public official may make, participate in making, or in anyway attempt to use his or her official position to influence a governmental decision if he or she knows or has reason to know that he or she has a financial interest. (Government Code Section 87100). A public official has a financial interest in a decision if it is reasonably foreseeable that the decision will have a material financial effect on one or more of his or her • economic interests. (Government Code Section 87103; 2 Cal. Code of Regs. Section 18700 (a)). The term "financial interest" denotes a conclusion that a public official has a financial interest in a decision if it is concluded that it is reasonably foreseeable that the decision will have a material financial effect on his or her economic stake greater than that of other citizens. The tern -economic interest" is a label applied to the particular types of stakes recognized by the Act as potential sources of a conflict of interest There are specific types of economic interest recognized by the Act, as such, we direct you to carefully review the Brown Act and Political Reform Act Booklet which is available from the City Attomey's Office and/or visit the Fair Political Practices Commission Web page for more detailed information. B. City Policy Reeardine Conflicts of Interests Because the City of Morro Bay is a small, closely knit community it is imperative that the citizens have trust and confidence in City government. Therefore, the City has adopted this public policy to prevent any possibility of conflict that may arise. Generally stated, any elected or appointed official has a conflict of interest if he or she has a financial interest in a project before the City and/or when compensation is received from anyone seeking approvals from the City. There are some exceptions but, generally, elected or appointed officials are prohibited from voting on projects where a conflict exists. A conflict of interest also occurs when officials live within a certain distance from a project (usually 500 feel). Even if a legal conflict does not exist, it may be inappropriate to participate in a decision for personal reasons to avoid even the appearance of a conflict of interest. As an example, there I anB. MtAAic Ni fmui%I. M13 L 11l Pace 11 could be a conflict if your good friend has a matter before your board, and you do not feel that it would be appropriate for you to voice an opinion in your "City" capacity. While the latter case is not defined by the Fair Political Practices Commission as a conflict, it could be perceived as a conflict, and then stepping down is appropriate. It is the policy of the City that, in addition to strictly adhering to the FPPC rules, all elected and appointed officials conduct themselves in a manner that does not raise a reasonable perception or belief that there is a conflict of interest or an abuse of your position. All board and commission members should avoid the appearance of conflict at all costs. If you step down from the dais and refrain from voting on an issue, you are not precluded from speaking as an individual. Your presentation, however, must be made from the floor, at the microphone with the rest of the public. You should state for the record that you are speaking as an individual. Many times in the past, Councilmembers and Board and Commissioners have stepped down from their official position at the dais when projects are presented in which there may be the potential for conflict of interest. This provides the opportunity to present your views as an individual on any matter before any City body. Li PAce/I 0 ADVISORY BOARD BY-LAWS The City Council has approved the rules and regulations (referred to herein as By -Laws) to set forth their purpose, procedures, and specific issues such as their functions, meeting dates. officers. vacancies and budgets. All advisory board meetings trill be conducted in strict compliance with Robert's Rules of Order. the City Council Policy and Procedures and State Law. For more detailed information. we suggest you review the City Council's Policies and Procedures Manual, Attached hereto are the applicable By -Laws for all of the City of Morro Bay's Advisory Boards. The Citizens Oversight Committee does not have by-laws, but is guided by Chapter 3.22 of the Morro Bay Municipal Code and we have attached that Chapter for your ease of reference. I .LIffD: Ab6tbH6-)YHF�LUI I MIJ P4GF 13 CITY OF MORRO BAY HARBOR ADVISORY BOARD BY-LAWS PURPOSE AND AUTHORITY The Harbor Advisory Board is established to review, advise and recommend to the City Council on items pertaining to the City Harbor. These include, but are not limited to: A. Use, control, promotion and operation of vessels and watercraft within the harbor, docks, piers, slips, utilities and publicly -owned facilities as a part of the City's Harbor, and water commerce, navigation, or fishery in the Harbor. B. Review and recommend rules and regulations pertaining to any of the matters listed in subsection A of this section. C. Review and recommend rates, tolls, fees, rents, charges or other payments to be made for use or operation of the Harbor. D. The Board shall make reports and recommendations to the various city boards, commissions or the City Council on matters relating to activities within the harbor. When requested to do so, will review items referred by other city boards, commissions or the City Council. Resulting reports and recommendations will be included in presentations before the City Council. APPOINTMENT The Harbor Advisory Board shall be comprised of seven (7) voting members, four of which must he qualified electors of the City of Morro Bay. Appointments and the filling of vacancies shall be made by the City Council. Committee members shall serve at the pleasure of the City Council. The City Council will attempt to select members from the following categories: Morro Bay Commercial Fishermen's Association Waterfront Leaseholders Marine Oriented Business Recreational Boating Representative of South Bay/Los Osos Two Members at Large n u i rI TERMS OF OFFICE Members shall serve. without compensation. for a period of four (4) years commencing February 1°. in the year specified when members are appointed. Appointments shall be made in such a manner so as no more than three members' terms expire concurrently. Unanticipated Vacancies shall be filled for the duration of the unexpired term only. QUALIFICATIONS Four of the seven members must he a resident and registered voter of the City during the term of appointment. unless excepted by State law or Council approved special requirements: 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) ABSENCE FROM MEETINGS Absence of a Board Member from three (3) consecutive meetings or tour (4) meetings in any • consecutive 12-month period will constitute the voluntary resignation of the absent member and the position will he declared vacant. ORGANIZATION At the first regular meeting in each year wherein ne%kl% 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. duties of the office shall be performed by the Vice -Chairperson. 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 comments. 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. r 1 u All advisory board meetings will be conducted in strict compliance with the City Council Policies and Procedures Manual. Where used in the City Council Policies and Procedure Manual, the term "City Council" shall mean the "Board" or "Commission", the term "Mayor" shall mean "Chairperson and the tern "Councilmember" shall mean "Board" or "Commission. In all matters and things not otherwise provided for in the by-laws 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 between the Advisory Group, 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. BY-LAW AMENDMENTS All amendments to the By -Laws shall be approved by the City Council. gEy . MfiNA-I6-.ip{/11MI 11. 201 PAGE/6 0 L • CITY OF MORRO BAY PUBLIC WORKS ADVISORY BOARD BY-LAWS PURPOSE AND AUTHORITY The Public Works Ad%ison Board is established to review, advise and recommend to the City Council on items pertaining to Water, Waste -water, Streets, Recycling, and Solid Waste. Cable Television, Telecommunications. Trees. Transportation and other issues related to Public Services Department responsibilities. The Board shall make reports and recommendations to the various city boards, commissions or the City Council on the above matters. When requested to do so, will review items referred by other city boards, commissions or the City Council. Resulting reports and recommendations will be included in presentations before the City Council. • APPOINTMENT The Public Works Advisory Board shall be comprised of Ewe sex -en (S7) voting members, all of which must be qualified electors of the City of Morro Bay. Appointments and the filling of vacancies shall be made by the City Council. Committee members shall serve at the pleasure of the City Council. TERMS OF OFFICE Members shall serve, without compensation, for a period of four (4) years commencing February 1'. in the year specified when members are appointed. Appointments shall be made in such a manner so as no more than three members' terms expire concunentl.. Unanticipated vacancies shall be filled for the duration of the unexpired term only. QUALIFICATIONS A member must be a resident and registered voter of the City during the term of appointment. unless excepted by State law or Council approved special requirements; 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) PeeF I- 11 CJ ABSENCE FROM MEETINGS Absence of a Board Member from two (2) consecutive meetings or three (3) meetings in any consecutive 12-month period will constitute the voluntary resignation of the absent member and the position will be declared vacant. 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, duties of the office shall be performed by the Vice -Chairperson. 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 every other month on even numbered months 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 comments, 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. Where used in the City Council Policies and Procedure Manual, the term "City Council" shall mean the "Board" or "Commission", the term "Mayor" shall mean "Chairperson and the term "Councilmember" shall mean `Board" or "Commission. In all matters and things not otherwise provided for in the by-laws or the Policies and Procedures of the City Council, proceedings shall be governed by "Roberts 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 between the Advisory Group, its members and the Council shall be in accordance with the City Council Policies and Procedures as currently adopted. I MMFD: ALIT 16-29}{Pl tANY 1201+ PAC'£ 18 11 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. BY-LAW AMENDMENTS All amendments to the By -Laws shall be approved by the City Council. • xfl Aer�FraiLW L 2U • PAG£ /V Ll C� CITY OF MORRO BAY RECREATION AND PARKS COMMISSION BY-LAWS PURPOSE AND AUTHORITY The Recreation and Parks Commission is established to provide the following: A. Act in an advisory capacity to the City Council in all matters pertaining to parks and public recreation and to cooperate with other governmental agencies and civic groups in the advancement of sound recreation and parks planning and programming. The Board shall make reports and recommendations to the various city boards, commissions or the City Council on the above matters. When requested to do so, will review items referred by other city boards, commissions or the City Council. Resulting reports and recommendations will be included in presentations before the City Council. • B. Formulate policies on recreation services, parks and open space for approval by • the City Council. C. Recommend to the City Council the development of recreational areas, parks, facilities, open spaces, programs, and improved recreation services. D. Recommend to the City Council the adoption of rules, regulations and standards concerning recreation and parks in respect to organization, personnel, areas and facilities, program and financial support. E. Advise the Recreation and Parks Director in the preparation of the annual parks maintenance, park improvement and recreation budgets and long-range recreation and parks facilities improvements. F. Hold public hearings and meetings to conduct investigations and surveys for the purpose of securing facts and data concerning parks and public recreation. APPOINTMENT The Recreation and Parks Commission shall be comprised of seven (7) voting members, five of which must be qualified electors of the City of Morro Bay. Appointments and the tilling of vacancies shall be made by the City Council. Committee members shall serve at the pleasure of the City Council. I aer : Aer,,xHe, ler{F Wr,� 2W PAG " TERMS OF OFFICE Members shall serve. without compensation. for a period of four (4) years commencing Februaq I`. in the year specified when members are appointed. Appointments shall be made in such a manner so as no more than three members' terms expire concurrent]}-. Unanticipated vacancies shall be filled for the duration of the unexpired term only. QUALIFICATIONS Five of the seven members must be a resident and registered voter of the City during the term of appointment. unless excepted by State Law or Council approved special requirements: 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) ABSENCE FROM MEETINGS • Absence of a Board Member from two (2) consecutive meetings or three (3) meetings in any- • consecutive 12-month period will constitute the voluntary resignation of the absent member and the position will he declared vacant. ORGANIZATION At the first regular meeting in each year wherein needy 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, duties of the office shall be performed by the Vice -Chairperson. 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 ill maintain accurate minutes of the official activities of the Committee. PROCEDURE Regular meetings shall be held every other month on odd numbered months on a regular schedule. The meetings shall he open to the public. The date, time and location along with the meeting agenda shall he noticed in accordance with Government Code Sections 54970-54975. The Chair may close meetings to public comments, provided that the action is consistem with the Brown Act. Agendas, reports, meetings and am and all actions shall be governed by the requirements of the Brown Act. as amended. Ixom' ,:..,.m-.r._.,, .oc aL mre 0 • All advisory board meetings will be conducted in strict compliance with the City Council Policies and Procedures Manual. Where used in the City Council Policies and Procedure Manual, the term "City Council" shall mean the "Board" or "Commission", the term "Mayor" shall mean "Chairperson and the term "Councilmember" shall mean "Board" or "Commission. In all matters and things not otherwise provided for in the by-laws 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 between the Advisory Group, 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. BY-LAW AMENDMENTS All amendments to the By -Laws shall be approved by the City Council. • PAO 77 r L RL11 AF FR F'-Wgp lr✓:. 1 1013 Pc 23 0 • .......�R�. ,.a Wim ' A Uq D: Mf rRq-*291 FfJ �j / 2011 ➢act N L • W=, AFSesNbiYFff UE OLL22U P u,, 25 CITY OF MORRO BAY TOURISM BUSINESS IMPROVEMENT DISTRICT ADVISORY BOARD BY-LAWS 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. The primary purpose of the MBTBID is to increase occupancy and room nights across all lodging types (motel, hotels, bed and breakfast) that pay the business improvement assessment (BID) along with transient occupancy tax (TOT) within the City while placing particular emphasis on marketing that positively impacts the lodging. 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 TBID may not sit on any other city advisory board or commission. TERMS 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 five (5) members from the Morro Bay lodging industry and two (2) members from the community at large. I a£s�. MriPFMt) r mr 3 PAG£I6 0 The five members from the lodging industry shall consist of one member representing lodging rooms of less than 22 rooms. one member representing 50 or less rooms (single hotel or cumulative representation). and three members representing hotels' -at large" (no specific number of rooms). The community "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) Yu.CalIW&VaV1t]11111Y1*i 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 (32) consecutive meetings or fearthree (43) meetings in any consecutive 12-month period will constitute the voluntary resignation of the absent member and the position will be declared vacant. 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. =fhe Chair and Vice -Chair of the Board as well as ans presidine officers shall be hoteliers. 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 ment*_gmArerly 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. Where used in the City Council Policies and Procedure Manual, the term "City Council" shall mean the "Board" or "Commission", the tern "Mayor" shall mean "Chairperson and the term "Councilmember" shall mean "Board" or "Commission. 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 "Rober'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 between the Advisory Group, 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. BY-LAW AMENDMENTS All amendments to the By -Laws shall be approved by the City Council. • • CITY OF MORRO BAY PLANNING COMMISSION BY-LAWS PURPOSE AND AUTHORITY The Planning Commission is established in accordance with the provisions of Government Code Section 65100. et sec. The functions of the Planning Commission shall be as follows: A. To develop and periodically review. a general plan and recommend its adoption or any revisions to by the city council; B. To maintain and implement the general plan after its adoption by the city council; C. To develop specific plans as may he necessary to implement the general plan; D_TO periodically review the capital improvement program of the city for its consistency with the eeneral plan, and forward recommendations to the city council; E. Consult and advise with public officials and agencies, public utility companies, civic, educational, professional, and other organizations, and citizens generally concerning implementation of the Peneral plan. 13F. Endeavor to promote public interest in. comment on, and understandingof f the general plan, and regulations relating to it: E-.G. To perform such other functions as the city council may direct. The Planning Commission shall: A. In addition to the duties and responsibilities set forth by state laws and local ordinances, the planning commission shall act in the public interest and sere in an advisory capacity to the city council on all matters pertaining to the planning function; B. Cooperate with other city boards and commissions, governmental agencies and civic groups in the advancement of sound planning, both within and without the city; C. Formulate policies on planning services for recommendation to the city council; D. Upon the request of the City Council. hold a joint meeting with the city council twice annually to discuss proposed policies, programs, goals and objectives, budgeting, future planning, or any other planning matter requiring joint deliberation. The city clerk shall in January of each year bring forth an agenda item to the tiny council to schedule the two joint meetings; E. Recommend to the city council the adoption of standards with respect to organization, personnel. facilities, programs and financial support of the planning commission; F. Disseminate to the public information concerning the policies and functions of the plarming commission. I rt . �&.... .i 2W PAX" 11 • APPOINTMENT The Planning Commission shall consist of five members and they shall be qualified electors and residents of the City. Appointments and the filling of vacancies shall be made by the City Council. Commissioners shall serve at the pleasure of the City Council. TERMS OF OFFICE Members of the Planning Commission shall be appointed by and serve at the pleasure of the City Council. Terms shall be for a period of four years; vacancies shall be filled for the unexpired term only. Two-year short terns may be established to stagger terms. Expiration dates of specific terms shall be established by resolution of the City Council. QUALIFICATIONS A member must be a resident and registered voter of the City during the term of appointment, unless excepted by State Law or Council approved special requirements; must be at least lg • years of age at the time of appointment; and, may not be an Elected Official, Officer, or Employee of the City of Moro Bay. (Council Policies and Procedures, Section 6.6.1) ABSENCE FROM MEETINGS Absence of a Board Member from three (3) consecutive meetings or four (4) meetings in any consecutive 12-month period will constitute the voluntary resignation of the absent member and the position will be declared vacant. 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, duties of the office shall be performed by the Vice -Chairperson. If both the Chair and Vice -Chair are absent, the remaining quorum shall appoint one member to preside at that meeting. The City of Moro Bay staff will maintain accurate minutes of the official activities of the Committee. PROCEDURE RSr ,ASSai/4iBHRAUML r. = PAGE" Regular meetings shall be held twiee-a 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 Am as amended. All advisory board meetings will be conducted in strict compliance with the City Council Policies and Procedures Manual. Where used in the City Council Policies and Procedure Manual, the tern "City Council" shall mean the "Board" or "Commission ", the term "Mayor" shall mean "Chairperson" and the term "Councilmember' shall mean "Board Member" or "Commissioner". 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 between the Advisory Group, its members, and the Council shall be in accordance with the City Council Policies and Procedures as currently adopted. 0 QUORUM • A majority of voting members shall constitute a quorum. BY-LAW AMENDMENTS All amendments to the By -Laws shall be approved by the City Council. I JRI aw.� 1s.. XP 1)• ff, min r� P...c Jl • CITY OF MORRO BAY CITIZENS OVERSIGHT COMMITTEE Morro Bay Municipal Code 3.22.120 3.22.120 Citizens Oversight Committee. A. Citizens Oversight Committee Established. There shall be a permanent citizens' advisory committee called the "Citizens Oversight Committee" (hereinafter "Committee"), which shall semi-annually review revenues and expenditures from the collection of the tax. B. Committee Membership. The Committee shall have 5 citizen -members appointed by the City Council for six year terms with initially 3 members serving 3 years, and 3 members serving 6 years. Appointees shall be residents of the City; however, no member of the Committee shall be an elected official. C. Committee Organization Procedures. The committee shall select one of its members as Chairperson. The Committee shall follow the rules of procedure of the City unless and until, • upon the report and recommendation from the Committee, the City Council adopts a specific set of procedural rules for the Committee. D. Regular Meeting; Provision of Support Services and Information. The Committee shall be subject to the provisions of the Brown Act (California Government Code sections 54950 et seq.) and shall meet at least once each calendar year. A regular meeting schedule shall be determined in accordance with the Brown Act and thereafter meetings shall be noticed by the City Clerk. The City Manager or his/her designee shall serve as executive staff' to the Committee. In addition to receiving materials directly related to the functioning of the Committee, the Committee members shall also receive all agenda material and other primary staff reports (other than those which are confidential) as are provided to the City Council. E. Citizens Oversight Committee Functions. The Committee shall have the following function: Semi- annual Report: The Committee shall review a semi-annual expense report of the City relative to activities funded with the additional general purpose local sales tax monies. Not later than the last day of the sixth month following the end of the each City fiscal year, the Committee will present its findings and conclusions to the City Council for its review. I "'MD.. Ai+:fasf6aYl ELMIARLL- /3 PAU32 ® RESOLUTION NO.17-13 RESOLUTION OF THE CITY COUNCIL OF. THE CITY OF MORRO BAY, CALIFORNIA APPROVAL OF A FORTY SEVEN YEAR LEASE AGREEMENT FOR LEASE SITE 93-95/93W-95W BETWEEN THE CITY OF MORRO BAY AND THE HELD FAMILY TRUST AND THE SMITH W AND HANNAH W HELD FAMILY TRUST, LOCATED AT 901-915 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 City Tidelands leases and properties; and WHEREAS. Smith R' Held and Hannah N\' Held have been the lessees of Lease Site 9J-95/93N4'-95W since 1998 and are tenants in good standing: and WHEREAS, the Helds are proposing redevelopment of said property: and WHEREAS. in accordance with the City's Master Lease Policy. the City and lessee have aereed to a new forty seven year lease agreement for Lease Site 9J-95/9JW- ® 95W, located at 901-915 Embarcadero. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California; that the attached new Lease Agreement for Lease Site 93- 95/93W-95W is hereby approved. BE IT FURTHER RESOLVED, that the Mayor is hereby authorized to execute said Lease Agreement. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 12th day of March; 2013 on the following vote: AYES: Irons. C. Johnson; N. Johnson, Leage; Smukler NOES: None ABSENT: None 0 Ja ie L. Irons, Mayor ATTEST: -WAi"0XA-- ® JanW Boucher; City Clerk LEASE by and between the CITY OF MORRO BAY ("CITY') we THE HELD FAMILY TRUST AND SMITH W & HANNAH W HELD FAMILY TRUST ('TENANT") TABLE OF CONTENTS Article1 FIXED TERM.............................................................................................................2 Section1.01 Term.................................................................................................2 Section 1.02 No Extensions..................................................................................2 Section1.03 Hold Over.........................................................................................2 Section1.04 Replacement.....................................................................................3 Article2 RENT..........................................................................................................................3 Section 2.01 Annual Minimum Rent....................................................................3 Section 2.02 CPI Adjustment to Annual Minimum Rent.....................................3 Section 2.03 Calculation of New Minimum Rent.................................................4 Section 2.04 Percentage Rent...............................................................................5 Section 2.05 Reimbursements...............................................................................8 Section 2.06 Penalty and Interest..........................................................................8 Article3 USE OF PREMISES....................................................................:..............................8 Section 3.01 Permitted Uses.................................................................................8 Section 3.02 Unauthorized Use..............................................................................8 Section 3.03 Operation of Business - Hours of Operation....................................9 Section3.04 Competition......................................................................................9 Section 3.05 Hazardous Materials......................................................................10 Section 3.06 Tidelands Trust . ............................................................................. I I Section 3.07 Compliance with Law.................................................................... I I Section 3.08 Waste or Nuisance......................................................................... I 1 Section3.09 Use by CITY..................................................................................12 Article 4 CONSTRUCTION, ALTERATION AND REPAIRS.............................................12 Section 4.01 Construction Approval...................................................................12 Section 4.02 Construction Bond.........................................................................12 C C -1- E E IE Section 4.03 Mechanics' Liens............................................................................I Section 4.04 Ownership of Improvements..........................................................14 Article 5 LEASEHOLD MORTGAGES ................................ ..............14 Article 6 REPAIRS. MAINTENANCE AN"D RESTORATION............................................14 Section 6.01 Maintenance by TENANT.............................................................14 Section 6.02 Seawalls and Revetment................................................................1 5 Section 6.03 Leeal Requirements.......................................................................1 5 Section 6.04 Failure to Repair............................................................................1 5 Section 6.05 Inspection by CITY........................................................................1 5 Section 6.06 TENANT'S Duty to Restore Premises...........................................16 Section 6.07 Termination of Lease for Destruction............................................16 Section 6.08 Destruction Due to Risk Not Covered by Insurance ......................17 Article 7 INDEMNITY AND INSURANCE .......................................................................... Is Section 7.01 Indemnity Agreement....................................................................18 Section 7.02 Liability Insurance.........................................................................19 Section 7.03 Worker's Compensation.................................................................19 Section 7.04 Property Insurance.........................................................................19 Section 7.05 Additional Coverage......................................................................20 Section 7.06 General Requirements....................................................................20 Section 7.07 No Subroeation..............................................................................21 Section 7.08 TENANNT'S Waiver........................................................................22 Section 7.09 Insurance Not a Limit....................................................................22 Article8 TAXES AND FEES..................................................................................................22 Section 8.01 TENANT to Pay Taxes ..................................................................22 Section 8.02 TENANT to Pay License and Permit Fees....................................22 Section 8.03 Utilities...........................................................................................22 o10 Article9 CONDEMNATION..................................................................................................23 Section 9.01 Total Condemnation.......................................................................23 Section 9.02 Condemnation Award....................................................................23 Section 9.03 Termination for Partial Taking......................................................24 Section 9.04 Rent Abatement for Partial Taking................................................24 Section 9.05 Conveyance in Lieu of Eminent Domain.......................................25 Section 9.06 Temporary Taking.........................................................................25 Article 10 ASSIGNMENT AND SUBLEASING.....................................................................25 Section 10.01 No Assignment Without CITY'S Consent...................................25 Section 10.02 Change of Ownership as Assignment..........................................26 Section 10.03 Application for Assignment.........................................................26 Section 10.04 Probate Transfer of Assignment . .............. :.................................. 27 Section 10.05 No Sublease Without CITY'S Consent........................................27 Section 10.06 Subtenant Subject to Lease Terms...............................................27 Section 10.07 Consent Form Agreement............................................................28 Section 10.08 TENANT and Guarantor Remain Liable.....................................28 Section 10.09 Nondisturbance............................................................................28 Article 1 I DEFAULT AND TERMINATION..........................................................................29 Section 11.01 Abandonment by TENANT.........................................................29 Section 11.02 Termination for Breach by TENANT..........................................29 Section 11.03 Termination for Failure to Pay Rent............................................29 Section 11.04 Lender May Cure Default............................................................29 Section 11.05 Attorneys' Fees.............................................................................30 Section 11.06 Damages for Breach.....................................................................30 Section 11.07 Cumulative Remedies..................................................................31 Section 11.08 Waiver of Breach.........................................................................31 Section 11.09 Surrender of Premises................................................................... I ® Article 12 MISCELLANEOUS.................................................................................................. I Section 12.01 Attomevs' Fees.............................................................................31 Section12.02 Notices......................................................................................... ) I Section 12.03 Governing Law and Jurisdiction..................................................32 Section 12.04 Binding on Successors.................................................................. Section 12.05 Partial Invaliditv...........................................................................32 Section 12.06 Sole and Only Agreement ................ :........................................... 33 Section 12.07 Modification.................................................................................33 Section 12.08 Time of Essence...........................................................................33 Section 12.09 Memorandum of Lease for Recording.........................................33 Article B SPECIAL PROVISIONS PECULIAR TO THIS LEASE SITE.................................34 Section 13.01 Recission of Old Lease................................................................34 Section 13.02 Construction of Landside and Waterside Improvements.............34 ® Section 13.03 Public Restrooms.......................................................................346 J 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 The Held Family Trust and Smith W & Hannah W Held Family Trust, California Trusts, herein called TENANT. 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; 11 mm 0 NOW; THEREFORE, in consideration of the covenants to be performed and the rental to be paid by TENANT to CITY, CITY leases to TEN.�NT, and TENANT leases from CITY. all of the following premises (herein collectively referred to as the 'Premises") in the CITY of Morro Bay, County of San Luis Obispo, State of California, described as follows: Lease Site 93- 95/93 W-95 W. located at 901-91 5 Embarcadero Road. 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 47 years, commencing Julv 1, 2013 (the "Commencement Date"). The term of this Lease shall terminate without notice on June 30, 2060. unless sooner terminated as herein provided. is Section 1.02 No Extensions. 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 aereement between CITY and TENAr\TT with respect thereto) shall be deemed to create a tenancv 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. Muter Leue 11/01 -1- Section 1.04 Replacement. As of the Commencement Date of this Lease, this Lease shall extinguish and replace every prior lease between CITY and TENANT respecting the Premises, if any. Any right or interest held by the TENANT pursuant to any existing lease with respect to the Premises which is not granted pursuant to this Lease shall be extinguished as of the Commencement Date of this Lease. Article.2 RENT Section 2.01 Annual Minimum Rent. TENANT agrees to pay to CITY a minimum guaranteed annual rental for the use and occupancy of the Premises, in an initial amount of $61,105.00 per year (the "Minimum Rent"), payable in advance in equal semiannual installments on January I 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 Adjustment to Annual Minimum Rent. (1) The parties •agree that as of every July 1 following the Commencement Date (each, a "CPI Adjustment Date"), except as outlined in section 2.03 hereof, the annual Minimum Rent shall be adjusted in direct proportion to any upward or downward movement in the Consumer Price Index for January 1, 2012 which is hereby agreed to be 233.44 (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 — Riverside — Orange County, California, compiled and published by the United States Department of Labor. Bureau of Labor Statistics, 1982-84 Base Year = 100 (the "Index") 0 L] NfEter Leue 11/01 -3- ® (2) The Annual Minimum Rent shall be adjusted as of each CPI Adjustment Date; and will remain in effect as adjusted until the next CPI Adjustment Date. As an illustration only, if the Base Index (Jan. 1, 1999 CPI) is 166.1 and the monthly average CPI for 2000 is 171.6. then the percentage increase is equal to 3.31%. Therefore; the Minimum Rent would be increased by 3.31% as of July 1, 2001, and would continue at that rate through June 30, 2002. (3) If the United States Department of Labor. Bureau of Labor Statistics. shall cease to compile and make public the Index as now constituted and issued; but shall substitute another index in its place, then said substituted index shall be used for the purpose of adjusting the Minimum Rent for the Premises. If the Index is changed so that the base year differs from that in effect on the Lease Commencement Date, the Index shall be converted in accordance with the conversion factor published by the United States Department of Labor; Bureau of Labor Statistics. Section 2.03 Calculation of New Minimum Rent. At the end of the initial five (5) years and of each five-year period thereafter; a new Minimum Rent shall be calculated for the following five (5) year period (each, a "Subsequent Rental Period") as follows: ® A. The Minimum Rent shall be subject to adjustment by appraisal as of the fifth anniversary of the Commencement Date and every five years thereafter (each, an "Appraisal Adjustment Date"). CITY; at its own cost and expense; shall retain an independent qualified appraiser for determination of the fair market value of said premises. Not more than nine (9) months prior to each Appraisal Adjustment Date; CITY shall provide written notice to TENANT of the pending appraisal and the appraiser selected by the CITY to determine the fair market value of the Premises; excluding fixtures and improvements unless such are expressly included in the description of the leasehold hereinabove. If TENANT does not reject CITY's appraiser in writing and within thirty (30) days of CITY's notice of its determination, then the Minimum Rent for the Subsequent Rental Period shall be in the amount determined by CITY as outlined in this Section 2.03. If TENANT rejects CITY's appraiser within thirty (30) days following CITY's notice to TENANT, then within fifteen (15) days after such 30-day period, each party, at its own cost, shall select an independent professionally designated appraiser who is a member of the American Institute of Real Estate Appraisers, or the Society of Real Estate Appraisers with a designation of ivLM (Member of American Institute), SRPA (Senior Real Estate Analysis); to appraise the fair market value of the Premises. CITY may rely on its original appraisal, or select a new appraiser, at its cost. If a party does not appoint an appraiser within fifteen (13) days after the other party has given notice of the name of its appraiser, the single appraiser appointed shall Master Lme 11101 -4- be the sole appraiser. Each appraiser shall conduct an independent appraisal within thirty (30) days after appointment. If the parties are unable to agree on the Minimum Rent for the Subsequent Rental Period within thirty (30) days after receiving the appraisal(s), then each party shall select one member of a three -member committee. The two so selected members shall select the third member, and this committee shall by majority vote select one or the other of the appraisals. The Minimum Rent determined on the basis of the selected appraisal shall be final and binding and all costs associated with the three -member committee shall be paid equally by CITY and TENANT. B. In the event that the appraisal process is not concluded on or before the Appraisal Adjustment Date, the Minimum Rent shall be adjusted retroactively to such Appraisal Adjustment Date as set out herein below when said appraisal process is completed. C. The total Rent payable, including both the Minimum Rent and the Percentage Rent for each year within the applicable previous five-year period, shall be averaged to produce the average annual total Rent payable for such previous period. , D. The new Minimum Rent for the five-year period commencing on each Appraisal Adjustment Date shall be the greater amount of seventy-five percent (75%) of the average of the total yearly Rent payable during the previous five-year period (as set out in paragraph C. above) or eight percent (8%) of the fair market value of the Premises (as established in paragraph A. above.) The new Minimum Rent shall be divided by two to determine the semiannual payments and shall be paid by TENANT to CITY on the first of each January and July thereafter. This new Minimum Rent shall be adjusted each following year in proportion to any increase in the Consumer Price Index as set out in Section 2.02 of this Lease. The base index shall be adjusted upon each Calculation of new Minimum Rent as set out in this section so that the Base index for CPI adjustment shall be the Consumer Price Index for January 1 of the year of the calculation of new Minimum Rent. Section 2.04 Percentage Rent. A. In addition to the Minimum Rent, TENANT agrees to pay to CITY at the time and in the manner hereinafter specified, as additional Rent for the use and occupancy of the Premises, a percentage of TENANT'S Gross Sales, hereinafter defined, as shown on Exhibit C, attached hereto and incorporated herein by reference, 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 sublessees, licensees, or concessionaires, both for cash and on credit Master Lease 11/01 -5- Aincluding. but not limited to; rentals of dockage space; leasing and servicing operations and ticket sales. and if on credit whether or not payment be actually made therefore, all charges for services, alterations or repairs made in or upon the Premises; the gross amount received by TENANT for merchandise sold pursuant to orders received in the Premises, though filled elsewhere; and the gross amount received by TENANT from any and all other sources of income derived from the business conducted upon the Premises. C. Notwithstanding the other provisions of Section 2.04, the term "Gross Sales" shall not include the following items; and such items may be deducted from Gross Sales to the extent they have been'included therein or have been included in a prior computation of Gross Sales or for which a Percentage Rent has been paid under this Lease to CITY: (1) Credits and refunds made to customers for merchandise returned or exchanged; (2) Any sales or excise tares otherwise includable in Gross Sales as defined in this Section because such tares are part of the total selling price of merchandise or services rendered in. from. or on the Premises, where TENANT must account for and remit the taxes to the government entity or entities by which they are imposed; and (3) With respect to credit card sales, fees retained or withheld by the issuer and/or merchant bank.pursuant to TENANT'S credit card acceptance agreement, and ® (4) Rental payments to TEMANIT from sublessees whose total gross sales are included in gross sales computations. D. TENANT shall keep or cause to be kept full. complete, and accurate records, and books of account in 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. Master Lease 11101 -6- E. By July 31 of each year, TENANT shall furnish CITY with a statement, to be certified by TENANT as current, true and accurate, which shall set forth the Gross Sales of each department, sublessee, licensee and concession operating in, on or from the Premises for the previous twelve (12) calendar months, ending June 30, just concluded, and the authorized deductions, if any, therefrom; and with it TENANT shall pay to CITY the amount of the Percentage Rent which is due to CITY as shown thereby. If TENANT shall at any time cause an audit of sales of TENANT'S business to be made by a public accountant, TENANT shall furnish CITY with a copy of said audit without cost or expense to CITY. CITY may, once in any twelve-month period, cause an audit of the business of TENANT to be made by a public accountant of CITY'S own selection. TENANT shall, upon receiving written notice of CITY'S desire for such an audit deliver and make available all such books, records and cash register tapes to the public or certified public accountant selected by CITY. Furthermore, TENANT shall promptly.on demand reimburse CITY for the full cost and expense of said audit, should the audit disclose that the questioned statement or statements understated Gross Sales by five percent (5%) or more but less than ten percent (10%). In the event that an audit performed at CITY'S request discloses that TENANT understated Gross Sales by less than 5%, the cost of such audit shall be paid by CITY. In the event that any audit or other review of records discloses that the amounts reported as Gross Sales was understated by TENANT by ten percent (10%) or more, CITY shall not only be entitled to recover from TENANT all costs of audit and review but shall also be entitled to recover from TENANT a penalty equal to two times the Percentage Rent due pursuant to this Lease on such unreported amounts. Whenever any audit discloses that Gross Sales were understated by any amount, TENANT shall immediately pay the additional Percentage Rent therein shown to be payable by TENANT to CITY, together .with interest at the Default Rate thereon, from the date the Percentage Rent was payable until the date paid. F. CITY shall be entitled at any time within five (5) years 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 TENAiNT'S Gross Sales and any authorized deductions therefrom as shown by any such statements and shall upon request make the same available to CITY for examination. Master Lease 11/01 -7- ® Section 2.05 Reimbursements. If TENANT fails to perform any term or covenant of this Lease; CITY may, but is not obligated to; perform such term or covenant. and TENANT T shall reimburse CITY therefore as additional Rent hereunder. As an illustration and not as a limitation. if TENANT fails to procure the insurance required by this Lease; CITY may, but is not obligated to, obtain such insurance; with the cost of the premiums being due to CITY upon demand as additional Rent. Section 2.06 Penalty and Interest. (1) If any Rent is not received within ten (10) days following the date on which the Rent first became due, TENANT shall pav a late penalty of ten percent (10%) of the amount of the Rent in addition to the Rent. (2) In addition to the penalty. TENANT shall pay interest at the rate of one percent (1%) per month or fraction thereof or the maximum amount permitted by law as of the date this Lease is signed; whichever is greater (the "Default Rate"), on the amount of the Rent, exclusive of the penalty, from the date on which Rent first became delinquent until paid. The term 'Rent" includes anv 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 uses permitted by; and in compliance with, Conditional Use Permit Number UPO-342, as it may be amended from time to time, and for no other purpose. At the commencement date of the lease; such uses include Restaurant/Dining Room. Snack Bar/Delicatessen, Fast Food/Convenience Food; Bar/Lounge. Beer and Wine Sales; Retail and Rental Sales and Service; Boat Slips/Side Ties, Passenger For Hire Operations. Public Rest Room Facilities. 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. M. er Leue I1/01 -8- 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 coastal18 area of San Luis Obispo County, so as to produce the maximum amount of Gross Sales and gross receipts from services which may be produced from TENANT'S business; and TENANT at all times shall carry on Premises, a stock or merchandise of such size, character, and quality as is reasonable, designed to produce the maximum return to TENANT, when the sale of merchandise is a permitted use under this Lease. Section 3.04 Competition. During the term of this Lease, TENANT shall not directly nor indirectly acquire or establish any similar or competing business within a radius of five (5) miles from the location of the Premises, provided, however, that TENANT may, with prior written approval from CITY, own or operate more than one business, whether or not competing and similar along the Embarcadero upon CITY lease sites. The purpose of this section is to prevent and prohibit TENANT from reducing revenue to CITY by diverting business from the operation at the Premises to another similar business owned by TENANT within the CITY but not upon a CITY lease site from which CITY is paid rent based on Gross Sales. El Master Lease 11/01 -9- ® Section 3.05 Hazardous Materials. (1) TENANT shall not transport, use, store, maintain, generate, dispose, release, treat or discharge any "Hazardous Material" (as defined below) upon or about the Premises (such activities being hereafter referred to as "Hazardous Materials Activities"), nor permit TENANT'S employees, agents, or contractors to engage in Hazardous Materials Activities upon or about the 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 TENIANT'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 is 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 TENA_\TT or its employees; agents or contractors, on or about the Premises in violation of the foregoing provisions. TENANT shall immediately notify CITY. CITY may elect either to take such remedial action as CITY deems appropriate, in which event TENANT shall reimburse CITY for all costs thereof within ten (10) days after demand, or direct TENANT to perform such remediation. If CITY directs TENANT to perform the remediation, TENANT shall immediately take such remedial action, as CITY shall direct. TENANT shall, properly and in compliance with applicable laws clean up and remove the Hazardous Material from the Premises and any V� other affected property at TENANT'S expense. If CITY directs TENANIT to perform btuter Leue 11/01 -to- 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 3.06 Tidelands Trust. TENANT shall use and occupy the Premises in strict compliance with the Tidelands Trust purposes under which the Premises or any portion thereof are held by CITY pursuant to the grants from the State of California as set forth in this Lease. Section 3.07 Compliance with Law. TENANT shall, at no cost to CITY, comply with all of the requirements of all local, municipal, county, state and federal authorities now in force, or which may hereafter be in force, pertaining to the Premises, and shall faithfully observe in the use of the Premises all local, municipal and county ordinances and state and federal statutes, rules, regulations and orders now in force or which may hereafter be in force (collectively; "Legal Requirements") provided that TENANT shall not be required to comply with any Legal Requirement imposed by the CITY that would substantially deprive TENANT of a material benefit under this lease unless such Legal Requirement has been imposed or required by a county, state or federal authority. The judgment of any court of competent jurisdiction, or the admission of TENANT in any action or proceeding against TENANT, whether CITY be a party thereto or not, that TENANT has violated any such Legal Requirement in the use of the Premises shall be conclusive of that fact as between CITY and TENANT. Section 3.08 Waste or Nuisance. TENANT shall not commit or pen -nit 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. E Master Lease 11/01 -11- 0 Section 3.09 Use by CITY. (1) Subject to TENANT's rights hereunder to possession of the Premises; CITY may -rant 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 (S I0,000). 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. or the City's designee, for CITY. If the Harbor Director or any future successor to the duties of the City's Harbor Director, or the City's designee, gives such consent to proceed; it is understood that such consent is Riven 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 agencv 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 En-ineer's, Registered Architect's or Licensed and Bonded General Contractor's estimate of the cost of construction and installation of improvements on the Premises. Said estimate must be submitted to the CITY Engineer for approval. TENANT shall ® file with the Morro Bay CITY Clerk a faithful performance bond; in a form and issued by a corporate surety company satisfactory to CITY; in an amount satisfactory to CITY but not in Master Lease 11/01 -12- excess of one hundred percent (100%) of the final detailed cost estimate, securing the faithful performance of TENANT or its contractor in the completion of said construction. (2) TENANT shall also file with the Morro Bay CITY Clerk a labor and materials bond, in a form and issued by a corporate surety company satisfactory to CITY, in an amount satisfactory to CITY but not in excess of one hundred percent (100%) of the final detailed cost estimate, securing the payment of all claims for the performance of labor or services on, or the furnishing of materials for, the performance of said construction. 0 . (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. Master Lease 11101 - -1 1 - Section 4.04 Ownership of Improvements. VI 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 0 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. Mmier Lease 11/01 -14- a 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 Master Lease 11101 -15- complying with the terms of this Lease and for the purpose of doing other lawful acts that may VI 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 anv cause not the fault of TENANT or CITY, that they cannot be repaired and restored as ® required by Section 6.06 of this Lease at a cost not exceeding thirty-five percent (35%) of the Muter Lease 11101 -16- 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 (1 5%) 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 Master Leaze 11/01 -17- ® 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 I 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 TENANIT 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. Mazter Lewe 11/01 -1 g' (2) TENANT'S obligations pursuant to this Section to indemnify and hold harmless do not extend to any liability, claim, loss, damage or expense arising from CITY'S active negligence or willful misconduct. Section 7.02 Liability Insurance. During the term of this Lease; TENANT shall maintain at its cost Commercial General Liability insurance with coverages at least as broad as ISO Forms labeled "City of Morro Bay Insurance requirements for Lessees", Certificate of Insurance — City of Morro Bay", and "Additional Insureds — Managers or Lessors of Premises" attached hereto as Exhibit B and made a part hereof as may be updated or changed from time to time at the sole discretion of the CITY, insuring against claims for bodily injury (including death), property damage, contractual liability, personal injury and advertising injury occurring on the Premises or from operations located in any part of the Premises. Such insurance shall afford protection in amounts no less than One Million Dollars ($1,000,000) per occurrence for bodily injury, personal injury and property damage, provided that if insurance with a general aggregate limit is used, either the general aggregate limit shall apply separately to the Premises or the general aggregate limit shall be twice the occurrence limit stated in this Section. All liability insurance carried by TENANT hereunder shall name CITY, its officers; officials, employees and volunteers as additional insureds, and shall be primary insurance with respect to such additional insureds. TENANT shall include all its subtenants as insureds under TENANT's liability policies or shall furnish separate certificates and endorsements for each subtenant. All coverages for subtenants shall comply with all requirements of this Article Seven. Section 7.03 Worker's Compensation. TENANT shall maintain at TENANT'S own expense and keep in full force and effect during the term of this Lease, Worker's Compensation Insurance as provided by law. Said insurance shall contain a waiver of subrogation rights against CITY. TENANT shall also maintain employer's liability insurance with minimum coverage of $1,000,000 per accident for bodily injury or disease. Section 7.04 Property Insurance. TENANT shall, at its cost, at all times during the 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 Master Leue 11/01 -19- ® 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 coverages that CITY may reasonably require. As illustration only and not as a limitation; in appropriate circumstances such additional insurance may include increased general liability limits, business interruption coverage, business automobile liability; boiler and machinery insurance and/or builder's risk insurance. However; TENANT shall not be required to maintain additional coverages that are in excess of those typically maintained by similarly situated tenants in the Morro Bay area. Section 7.06 General Requirements. Except as specifically provided to the contrary; all the insurance required pursuant to this Article Seven shall be subject to the requirements of this Section 7.06. (1) Maintenance of proper insurance coverage is a material element of this Lease and failure to maintain or renew coverage or to provide evidence of coverage and/or renewal may be treated by the CITY as a material breach of contract. TENANT shall forward the CITY specifications and forms to TENANT'S insurance agent for compliance. (2) CITY may at any time require TENANT to increase the minimum coverage limits for insurance required by this Lease. but every such increase shall be reasonable under the ® circumstances. Master Lease 11/01 -20- (3) All policies shall be issued by insurance companies authorized to issue such in 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. L 11 Master Lease II/01 -21- 0 Section 7.08 TENANT'S Waiver. TEN.�NT herebv waives anv 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 modifv, 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 Pay License and Permit Fees. TENANT shall pay any fees imposed by law for licenses or permits for any business or activities including construction by TENANT upon the Premises. Section 8.03 Utilities. TENANT shall pay; or cause to be paid, and hold CITY and the property of CITY; including the Premises; free and harmless from all charges for the furnishing of gas, water; electricity; telephone service; and for other public utilities to the Premises during the term of this Lease and for the removal of garbage and rubbish from the Premises during the term of this Lease. Ma er Lease 11/01 '?=- Article 9 CONDEMNATION Section 9.01 Total Condemnation. If title and possession to all of the Premises is permanently taken for any public or quasi - public use under any statute, or by the right of eminent domain, then this Lease shall terminate on the date that possession of the Premises is taken, and both CITY and TENANT shall thereafter be released from all obligations, including Rent, all of which shall be prorated to the date.of termination, except those specified in Section 9.02 of this Lease. Section 9.02 Condemnation Award. Any compensation or damages awarded or payable because of the permanent taking of all or any portion of the Premises by eminent domain shall be allocated between CITY and TENANT as follows: (1) All compensation or damages awarded or payable for the taking by eminent domain of any land that is part of the Premises shall be paid to and be the sole property of CITY free and clear of any claim of TENANT or any person claiming rights to the Premises through or. under TENANT. (2) All compensation or,damages awarded or payable which is specifically attributed by the taking parry 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. Master Lease 11/01 -23- (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 tetra 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 TE\i,NT 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 tern 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 doesnot 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 Master Lease I 1/01 -24- 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 Master Lease 11101 -25- ® 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 assimments 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 Master Lease 11101 - -26- 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 CITTS 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 Master Lease 11/01 -27- ® 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 TENANT. TENANT shall apply any and all monies received from any subtenant first to the payment of obligations of the subtenant to CITY. Section 10.08 TENANT and Guarantor Remain Liable. Prior to approval by CITY to any sublease hereof. TENANT shall agree to be primarily ® and jointly and severally liable to CITY for all obligations due CITY by any subtenant. including the payment of rents, and TENANT shall agree that CITY may proceed directly against 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. Master Leue 11/01 -28- Article l l DEFAULT AND TERMINATION 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 41 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. Master Lease 11/01 -29- ® Section 11.05 Attorneys' 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 (1) 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 attomev fees and costs for the collection action. To the extent that CITY" is represented by the City Attorney, a reasonable sum for such attorneys' services will be included as attorneys' fees. Section 11.06 Damages for Breach. Should TENANT default in the performance of any covenant. condition or agreement contained in this Lease and the default be incurable or not be cured within the time period set forth hereinabove. then CITY may terminate this Lease and: (1) Bring an action to recover from TENANT: ® (a) The worth at the time of award of the unpaid rent which had been earned at the time of termination of the Lease; (b) The worth at the time of award of the amount by which the unpaid rent which would have been earned after termination of the Lease until the time of award exceeds the amount of rental loss that TENANT proves could have been reasonably avoided; (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. Master Lease 11/01 -10- 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: rA Master Lease 11/01 -31- with a copy to: Harbor Director 1275 Embarcadero Morro Bay, California 93442 City Manager of the City_ of Morro Bay City Hall 595 Harbor Street Morro Bay, CA 93442 Any notice or demand to TENANT may be given at: Smith Held, Trustee Smith W and Hannah W Held Family Trust PO Box 225 Cayucos. CA 93430-0225 Such addresses may be changed by written notice by either party to the other party. Section 12.03 Governing Law and Jurisdiction. ® This Lease; and all matters relating to this Lease, shall be governed by the laws of the State of California in force at the time any need for interpretation of this Lease or any decision concerning this Lease arises. CITY and TENANT consent to exclusive personal and subject matter jurisdiction in the Superior Court of the State of California in and for the county where the Premises are located, and each party waives any claim that such court is not a convenient forum. Each party hereby specifically waives the provisions of California Code of Civil Procedure Section 394, and any successor statute thereto. Section 12.04 Binding on Successors. Subject to the provisions herein relating to assignment and subletting each and all of the terms. conditions, and agreements herein contained shall be binding upon and inure to the benefit of the successors and assigns of any and all of the parties hereto: and all of the parties hereto shall be jointly and severally liable hereunder. Section 12.05 Partial Invalidity. Should any provision of this Lease be held by a court of competent jurisdiction to be either invalid; void; or unenforceable. the remaining provisions of this Lease shall remain in full is force and effect unimpaired by the holding. Mazur Leaze 11/01 -�2- Section 12.06 Sole and Only Agreement. This Lease, including all exhibits incorporated by reference, constitutes the sole and only agreement between CITY and TENANT respecting the Premises and the leasing of the Premises to TENANT. Any other agreements or representations respecting the Premises and their leasing to TENANT by CITY, which are not expressly set forth in this Lease, are null and void. The lease terms herein specified correctly set forth the obligations of CITY and TENANT as of the date of this Lease. No modification, amendment, or alteration of this Lease shall be. valid unless it is in writing and signed by both parties. Section 12.07 Modification. This agreement shall not be modified except pursuant to a written agreement executed by the MAYOR and CITY CLERK pursuant to prior CITY Council approval. Notwithstanding CITY Council approval, no agreement shall become effective until such agreement is in fact executed by the MAYOR and CITY CLERK. TENANT understands that this agreement may not be modified by oral statements by any person representing the CITY including the MAYOR and CITY CLERK. TENANT specifically agrees not to rely on oral statements, purported oral waivers, or purported oral modifications and agrees not to rely upon purported written modifications unless they meet the requirements of this paragraph and are approved in writing pursuant to formal City Council action and a subsequent written modification signed by the MAYOR and CITY CLERK. If the title of any person authorized to act for CITY under this Lease shall be changed during the term of this Lease, then the person who succeeds to substantially the same responsibilities with respect to the CITY shall have the authority to act for CITY under this Lease. Section 12.08 Time of Essence. Time is expressly declared to be the essence of this Lease. Section 12.09 Memorandum of Lease for Recording. CITY and TENANT shall, at the request of either at any time during the term of th/ s 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. Master Lease 11/01 -333- ® Article 13 SPECIAL PROVISIONS PECULIAR TO THIS LEASE SITE The following provisions apply to this Lease site only: Section 13.01 Rescission of Old Lease. CITY and TENANT understand and agree that this lease rescinds and revokes the previous lease between CITY and TENANT more particularly described as that certain lease originally made to Mildred Graham Dennis and dated July 1, 1987 for said Premises, including all amendments made thereto. Section 13.02 Construction of Landside and Waterside Improvements. CITY and TENANT agree that TENANT will construct all land and water improvements to the premises as outlined in CUP `UPO-342 and valued at a minimum of $981,000. Failure to complete said improvements and to comply with all conditions of said CUP as evidenced by a final building permit inspection as required by the City of Morro Bay, in addition to providing proof of expenses as evidenced by copies of invoices by the proscribed timeline shall be a material default of the Lease Agreement and subject to any remedies outlined in Article 11 ® herein; including termination of the Lease. CITY and TENANT further agree that TENANT shall construct additional floating docks in the western extremity of Lease Site 96W. Upon TENANT obtaining City Council Concept approval to construct the additional docks. the CITY" shall adjust the Lease Site lines so that Lease Site 95 W incorporates the western extremity of Lease Site 96W'at a line beginning immediately westward of the current deck area in Lease Site 96W. Said floating docks will attach to and share the gangway access with the floating docks proposed in Lease Site 95 W, and valued at a minimum of S 100,000. Refer to Exhibit A; Copy of Parcel Map. If feasible, said floating docks will be incorporated into CUP rUPO-342; otherwise a new permit process may be pursued. Failure to complete said additional floating docks as evidenced by a final building permit inspection as required by the City of Morro Bay, in addition to providing proof of expenses as evidenced by copies of invoices by the proscribed timeline shall be a material default of the Lease Agreement and subject to any remedies outlined in Article 11 herein, including termination of the Lease. TENANT acknowledges that construction of TENANT'S proposed improvements of the Premises under said CUP requires; but may not be limited to, obtaining a permit from the ® California Coastal Commission. a City Precise Plan, and a City Building Permit. It is the Muter Lewe 11/01 -34- TENANT'S obligation to fully investigate the issues and costs in obtaining these permits. Failure to obtain any and all required permits and approvals for said construction shall not be a reason for failure to comply with this Section. TENANT further acknowledges. that said CUP and construction of TENANT'S improvements may require repair or replacement of all or portions of the docks, existing buildings, revetments, access ways, sidewalks, drainage'systems and other current improvements on the Premises to the standards of the City Engineer and TENANT agrees to meet these standards through review and revision of final Building Plans prior to issuance of a Building Permit for the construction of improvements on the Premises. TENANT further agrees to: A. Obtain Precise Plan approval of CUP ffUPO-342 no later than July 1, 2014; B. Commence construction of the sidewalk, light standard on Harbor Street, parking space re -striping, awning and two new posts as per UPO-342 no later than November 1, 2014; C. Commence construction of the new retail unit, Harbor Walk, view deck, restrooms and glass court area as per UPO-342 no later than November 1, 2015; D. Commence construction of the floating docks as per UPO-342 and additional floating docks to the westward of Lease Site 96W no later than November 1, 2016. E. Completion of all phases of construction shall be completed no later than May 31, 2017 as evidenced by Final Inspection/Occupancy approval by CITY. During construction of improvements, TENANT shall take all measures to: A. Avoid any pollution of the atmosphere or littering of land or water by or originating in or about the Premises or caused by TENANT'S construction activities; B. Keep the noise level on the Premises to a minimum so that persons in the neighborhood will be able to comfortably enjoy business and facilities in the area; C. Prevent any pollutants, including but not limited to petroleum products, from entering Morro Bay waters; D. Avoid negative impacts on surrounding businesses; E. Prohibit storage of materials or equipment on public property and avoid parking or traffic delays or impairment without prior consent of CITY. Master Lease 11101 -35- ® F. Keep the construction site in a slightly, orderly, and safe manner at all times. u Section 13.03 Public Restrooms. Restrooms to be completed in CUP YUPO-342 shall be made available to the public during business hours and TENANT shall maintain sipage in prominent locations; which clearly identifies that the restrooms are available to the general public. In the case of a dispute over location and design of signage, the Harbor Director may designate two locations for "public restroom" signs of a type and size to be determined by the CITY. Furthermore, said restrooms shall be made available after business hours to slipholders on TENANT'S Lease Site. EXECUTED on Apr, I I 2�,, 20 , at Ngcrro Lut c, Ngi 5 J o County. California CITY OF MORRO BAY TENANT Smith W Held and Hannah W Held doing business as The Held Familv Trust and Smith W Held and Hannah W Held Family Trust Jamie'L By: L. Irons, MAYOR Smith W Held BY: A,�k,,)4-ad APPROVED AS TO FORM: Robert Shultz. C TTORNEY ATTEST: &U�a- JamieLBoucher, CITY CLERK . < I TII•F1'1' MIMM40fl 36 Master Lease 11/01 - rCA q a2" rJ �H'N/NEL .L/NE EXHIBIT A n Nr n, n , n,, r .I . I 11 A Exhibit A ® EXHIBIT A 111 COPY OF PARCEL MAP A-1 EXHIBIT B CITY OF MORRO BAY 595 Harbor St. Morro Bay, CA 93442 (805)772-6200 FAX (805) 772-7329 INSURANCE REQUIREMENTS FOR LESSEES (NO AUTO RISKS) Lessee shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the Lessee's operation and use of the leased premises. The cost of such insurance shall be borne by the Lessee. Minimum Scope of Insurance Coverage shall be at least as broad as: 1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001). 2. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance (for lessees with employees). 3. Property insurance against all risks of loss to any tenant improvements or betterments. Minimum Limits of Insurance Lessee shall maintain limits no less than: General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. Employer's Liability: $1,000,000 per accident for bodily injury or disease. Property Insurance: Full replacement cost with no coinsurance penalty provision. B-1 E Deductibles and Self- Insured Retentions Any deductibles or self -insured retentions must be declared to and approved by the City. At the option of the City; either: the insurer shall reduce or eliminate such deductibles or self -insured retentions as respects the City; its officers, officials; employees and volunteers; or the Lessee shall provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations; claim administration and defense expenses.) Other Insurance Provisions The.general liability policy is to contain; or be endorsed to contain, the following provisions: 1. The City, its officers; officials, employees, and volunteers are to be covered as insureds with respect to liability arising out of ownership, maintenance or use of that part of the premises leased to the Lessee. 2. The Lessee's insurance coverage shall be primary insurance as respects the City, its officers, officials; employees. and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be ® excess of the Lessees insurance and shall not contribute with it. 3. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled, except after thirty (30) days' prior written notice by certified mail. return receipt requested, has been given to the City. Acceptability of Insurers Insurance is to be placed with insurers with a current A.M. Best's rating of no less than ANII. Verification of Coverage Lessee shall furnish the City with original certificates and amendatory endorsements effecting coverage required by this clause. The endorsements should be on forms provided by the City or on other than the City's forms, provided those endorsements or policies conform to the requirements. All certificates and endorsements are to be received and approved by the City before use of City premises. The City reserves the right to require complete, certified copies of all required insurance policies,, including endorsements effecting the coverage required by these specifications at any time. Sub -lessee Lessee shall include all sub -lessees as insureds under its policies or shall furnish separate certificates and endorsements for each sub -lessee. All coverages for sub -lessees shall be subject to all of the requirements stated herein. 0 B-2 Reproduction of insurance Services Office, Inc. Form is INSURER: ISO Form CG 20 11 11 85 (Modified) POLICY NUMBER: Commercial General Liability ENDORSEMENT NUMBER: THIS ENDORSEMENT CHANGES THE POLICY, PLEASE READ IT CAREFULLY. ADDITIONAL INSURED -- MANAGERS OR LESSORS OF PREMISES This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART. SCHEDULE 1. Designation of Premises (Part Leased to You): 2. Name of Person or Organization (Additional Insured): City of Morro Bay 3. Additional Premium: (If no entry appears above, the information required to complete this endorsement will be shown in the Declarations as applicable to this endorsement.) WHO IS AN INSURED (Section II) is amended to include as an insured the person or organization shown in the Schedule, but only with respect to liability arising out of the ownership, maintenance or use of that part of the premises leased to you and shown in the Schedule and subject to the following additional exclusions: This insurance does not apply to: 1. Any "occurrence" which takes place after you cease to be a tenant in that premises. 2. Structural alterations, new construction or demolition operations performed by or on behalf of the person or organization shown in the schedule. Modifications to ISO form CG 20 11 11 85: 1. The Insured scheduled above includes the Insured's elected or appointed officers, officials, employees and volunteers. 2. This insurance shall be primary as respects the Insured shown in the schedule above, or if excess, shall stand in an unbroken chain of coverage excess of the Named Insured's scheduled underlying primary coverage. In either event, any other insurance maintained by the Insured scheduled above shall be in excess of this insurance and shall not be called upon to contribute with it. 3. The insurance afforded by this policy shall not be canceled except after thirty days prior written notice by certified mail return receipt requested has been given to the City. Signature -Authorized Representative Address B-3 is �I EXHIBIT C PERCENTAGE RENTAL % GROSS SALES FOOD SERVICE: Restaurant; Dining Room 3 Snack Bar, Delicatessen Fast Food. Convenience Food 5 Bar/Lounee. Beer & Wine Sales 5 RETAIL & RENTAL SALES & SERVICE: 5 MOORINGS, TIES & SLIPS: Pier/Fixed Piles 10 Pier/Floatine 10 ALL OTHER USES: 5 NOTE 1 Percentage rental in all cateeories will be reduced by 2% durine Fiscal Years 2014/2015. 2015/2016. and 2016/2017. or until Final Inspection/Occupancv is attained for all three phases of construction under CUP 4UPO-342. whichever comes first. to account for negative impacts during construction. NOTE 2 Percentage rental for slips/docks to be 0% until July 1. 2021. at which time it will commence to the stated amount. C-1 RESOLUTION NO. 16-13 Is OF OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORiN�IA RESCINDING RESOLUTION 45-11 AND RESTORING COMMERCIAL IMPACT FEES TO THEIR PRE JULY 1, 2011 LEVEL THE CITY COUNCIL City of Morro Bay, California WHEREAS. the City Council adopted Resolution 47-07, setting impact fees for development based on a comprehensive development impact fee justification study; and WHEREAS. the City Council determined that impact fees, with the adoption of Resolution 47-07, shall be reduced by 50-percent to the greatest extent practical without affecting existing fees: and WHEREAS. on June 14. 2011 the City discussed and voted to place a moratorium on Commercial Impact Fees for three years: and WHEREAS, on June 28, 2011 the City Council adopted Resolution 45-11. establishing the three year moratorium on development impact fees on commercial projects and modified the Resolution to include "mixed use projects": and ® WHEREAS; on August 23, 2011, the City Council ratified Resolution 45-11. to clarify the inclusion of the "mixed use projects: and WHEREAS_, on January 22, 2013 the City Council discussed the issue of impact fees: and WHEREAS. on February 13, 2013 the City Council adopted Resolution 14-13 eliminating the reduction in Residential Impact Fees and also voted to eliminate the moratorium on commercial impact fees: and WHEREAS, on February 13. 2013 the City Council also determined that those projects that had relied on the Commercial Fee reduction shall not be subject to the reinstatement of commercial impact fees. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Morro Bay, California. does hereby rescind Resolution 45-11 restoring commercial impact fees to their pre July 1, 2011 level; and BE IT FURTHER RESOLVED that those projects that have "Technically Complete" Planning Applications after July 1, 2011. but before the date of this resolution shall only pay those impact fees as set by Resolution 45-11: and BE IT FURTHER RESOLVED that those projects that have complete Building ® Permit Applications after July 1 2011, but before the date of this resolution shall only pay those impact fees as set by Resolution 45-11. PASSED AND ADOPTED by the Citv Council of the City of Morro Bay at a regular meeting.thereof held on the 26th day of Februarv. 2013 on the following vote: AYES: Irons. C. Johnson. Smukler NOES: N. Johnson_. Leaee ABSENT: None ATTEST: JAW BOUCHER. City Clerk 11 J IE L. IRONS, Mayor ® RESOLUTION NO. 15-13 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, AUTHORIZING THE 2012/13 MID -YEAR AMENDMENTS TO THE CITY'S OPERATING AND CAPITAL IMPROVEMENT BUDGETS THE CITY COUNCIL Cihv of Morro Bay, California WHEREAS; the City of Morro Bay is required to appropriate and expend public funds to conduct its day-to-day business activities; and WHEREAS; the City Council adopted the original Operating and Capital Improvement Budgets on June 26, 2012 by Resolution No. 29-12 and on July 10, 2012 by Resolution 38-12; 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 the is additional revenues and expenditures as shown 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 12th day of March 2013, by the following vote: AYES: Irons. C. Johnson, N. Johnson, Leage, Smukler NOES: Alone ABSENT: None J IE L. 1 ONS. Matior ATTEST: lwu'v� JADE BOUCHER, City Clerk RESOLUTION NO. 14-13 RESOLUTION OF THE CITY COUNCIL is OF THE CITY OF MORRO BAY, CALIFORNIA RESCINDING RESOLUTION 52-12 AND RESTORING RESIDENTL-kL IMPACT FEES TO THEIR PRE OCTOBER 23, 2012 LEVEL THE CITY COUNCIL City of Morro Bay, California WHEREAS. the City Council adopted Resolution 47-07. setting impact fees for development based on comprehensive development impact fee justification study: and WHEREAS. the City Council determined that these fees shall be reduced by 50- percent to the greatest extent practical without affecting existing fees: and WHEREAS. the City Council discussed the issue of impact fees at their January 212011 meeting: and WHEREAS. the City Council determined that those projects that had relied on the Residential Fee reduction shall not be subject to the reinstatement of residential impact fees. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Morro Bay, California. does hereby rescind Resolution 52-12 restoring residential impact fees to their pre October 23, 2012 level: and BE IT FURTHER RESOLVED that those projects that have "Technically Complete" Planning Applications after October 23, 2012, but before the date of this resolution shall only pay those impact fees as set by Resolution 52-12; and BE IT FURTHER RESOLVED that those projects that have complete Building Permit Applications after October 23. 2012. but before the date of this resolution shall only pay those impact fees as set by Resolution 52-12. 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 February. 2013 on the following vote: AYES: Irons. C. Johnson. Smukler NOES: N. Johnson, Leage ABSENT: None J L. IRONS, N16yor ATTEST: JAMIE BOUCHER. City Clerk 0 RESOLUTION NO. 13-13 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA AMENDING THE CITY OF MORRO BAY ADVISORY BOARDS HANDBOOK AND BY-LAWS THE CITY COUNCIL CITY OF MORRO BAY, CAILFORNIA WHEREAS, to ensure that all Advisory Board Members are familiar with and understand the City of Morro Bay's philosophies and policies regarding serving on an Advisory Board; the Citv of Morro Bay_ adopted the Advisory Boards Handbook and By -Laws on August 12. 2002: and WHEREAS. the Advisory Boards Handbook and By -Laws for the City of Morro Bay is a composite of the City Council actions. policies, references. and information regarding the Citv Advisory Boards: WHEREAS, the current By -Laws for each Advisory Bodv need to be updated and By - Laws for the Community Promotions Committee eliminated, as this Committee no longer exists: ((� and `s WHEREAS, The City Council desires to amend the Advisory Boards Handbook and By - Laws for the City of Morro Bay as set forth in Exhibit A. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Morro Bav does herebv amend the By -Laws of all Advisory Bodies to reflect those that are set forth in Exhibit A and dated February 1, 2013 Advisory Boards Handbook. PASSED AND ADOPTED by the City Council. City of Morro Bay at a regular meeting thereof held on the I ith day of February 2013 by the following vote: AYES: Iroris. C. Johnson. Smukler NOES: N. Johnson, Leage ABSENT: None ABSTAIN: None ie L. Irons. Mayor ATTEST: Jami Boucher. City Clerk RESOLUTION NO. 12-13 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, APPROVING THE 2012 ANNUAL WATER PROGRESS REPORT AND ADOPTING A WATER ALLOCATION PROGRAM FOR 2013 THE CITY COUNCIL City of Morro Bay, California WHEREAS, Chapter 13.20 of the Morro Bay Municipal Code calls for the City Council of the City of Morro Bay to adopt a vearly Water Allocation Program based on a report by the Public Services Director after review by the City of Morro Bay Planning Commission and Public Works Advisory Board: and WHEREAS. the Local Coastal Program Land Use Plan and Ordinance Number 266 requires the City Council to set an annual limit on new residential units and to prescribe the mix of multi -family and single family residences allowed within that limit: and WHEREAS, on the l3`" day of February 2013, the City Council did hold a duly noticed ® Public Hearing on the 2012 Annual Water Progress Report and the proposed 2013 Water Allocation Program. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Morro Bay. California. as follows: A. The City Council of the City of Morro Bay hereby -receives and accepts the 2012 Annual Progress Water Report as submitted by Public Services Director, as incorporated herein as if attached hereto: and B. A Water Allocation Program for the year 2013 is hereby adopted by the City Council of the City of Morro Bay. containing the following elements: Allocate the mix of residential units to 60 percent single-family and 40 percent multi -family units; and authorize the corresponding water equivalency allocation for residential uses at 50 WEU's (water equivalency units. or WEU's, are currently used for tracking project water usage). 2. Process Residential Allocations limits on a first-come/first-serve basis, based on the priorities contained in the current General Plan and Local Coastal Plan policies. Unused mW ultiple family residential EU`s may be rolled over to single family dwellings after September 30, 2013; ® 3. Authorize allocation of 130% of the residential water equivalency units to commercial and industrial projects, within the priority categories consistent with the current Local Coastal Plan and General Plan policies: 2012 Annual Water Progress Report R Residential Allocation for 2013 Patze 2 The potential for rolling over unused water allocations to nest year is not precluded by this action. PASSED, APPROVED, AND ADOPTED, by the City of Morro Bay City Council, at a regular meeting held on this 13th day of February. 2013 by the following vote: AYES: Irons. C. Johnson. N. Johnson, Leage, Smukler NOES: None ABSENT: None J e L. Irons, Mayor ATTEST: ® Jam oucher, City Clerk ® RESOLUTION NO. 11-13 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA ACCEPTING S100,000 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 2012-2013 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 Citv Council of the Ciry of Morro Bay. California, at a regular meeting thereof held on the 13`s day of February. 2013, on the following vote: AYES: Irons. C. Johnson, N. Johnson, Leage, Smukler NOES: None ABSENT: None ATTEST: Ja6W Boucher, City Clerk E J ie L. Irons, Mayor LIJ RESOLUTION NO. 10-13 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, DIRECTING A TIMELINE FOR COMPLETION OF CAPITAL PROJECTS APPROVED BY THE CITY COUNCIL AND RESCINDING RESOLUTION NO. 45-12 THE CITY COUNCIL City of Morro Bay, California WHEREAS. the City Council on an annual basis funds a variety of large and small capital projects. Measure Q projects and large maintenance projects (in excess of 52D,000): and WHEREAS, the desire of the City Council and the citizens is to see City projects move forward in a timely manner: and WHEREAS. the community expects the City to move swiftly in implementing capital projects. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay. California that Resolution 45-12 is hereby rescinded and replaced by Resolution 10-13: and ® BE IT FURTHER RESOLVED that estimated completion dates for capital projects will be included on the Schedule for Capital Projects page, in the Schedule of Measure Q Budget Requests page(s) and/or the Schedule of Proposed Maintenance Projects in excess of S25,000 page in the Annual Budget document. indicating when the City will begin work on the capital. Measure Q and major maintenance project(s): and BE IT FURTHER RESOLVED that included in the staff report at the time the funding is approved for each capital, Measure Q or maintenance project in excess of 525.000. staff will include a timeline for project completion; and BE IT FURTHER RESOLVED that a Project Status Report will be generated by the City Manager's office each quarter and appear on the consent calendar of the City Council agenda at the first meeting of each quarter, and contain the following information: 1. Project name; 2. Brief description of the project (unless the name is self-explanatory); I Name of the department head responsible for the project: 4. Project Status: >. Brief explanation for the delay - if applicable: 6. Projected start date: 7. Revised start date: 8. Projected completion date. ® The Project Status Report will include projects from all funds, and the projects will remain on the Project Status Report until they are completed or cancelled. PASSED AND ADOPTED by the Citv Council of the Citv of Morro Bav at a reeular meetine thereof held on the 22nd of January 201 J. by the followine vote: AYES: Irons. C. Johnson, N. Johnson. Leaee. Smukler NOES: None ABSENT: None 0 VlI L. IROI S_. Mayor ATTEST: 2 JAMIE BOUCHER. Citv Clerk 11 ® RESOLUTION NO. 09-13 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA AUTHORIZING SUBMISSION OF APPLICATION TO THE RURAL TRANSIT FUND GRANT PROGRAM THE CITY COUNCIL City of Nlorro Bay, California WHEREAS. the San Luis Obispo Council of Governments (SLOCOG) annually adopts the Federal Transit Administration (FTA) Section 5311 formula funds Program of Projects (POP): and WHEREAS, SLOCOG began the Rural Transit Fund (RTF) program with Resolution 02- 16 on December 5, 2002 by programming FTA Section 5311 funds to the San Luis Obispo Regional Transit Authority (RTA): and WHEREAS, RTA has agreed to use these Federal funds for operating support and SLOCOG has agreed to exchange a similar amount of Transportation Development Act (TDA) funds for use in the RTF program: and WHEREAS, SLOCOG, RTA, and other rural transit operators worked together to develop a process to exchange FTA Section 5311 formula funds with TDA funds to create the RTF. including Policies and Procedures to govern the RTF program; and ® WHEREAS, the Policies and Procedures developed ensure that all funds will be used solely for rural transit projects consistent with the original intent of the FTA Section 5311 program: and R'HEREAS, there is S520.000 available for competitive distribution with project applications for the 2013/2014 RTF cycle due February 1, 2013. NOW, THEREFORE, BE IT RESOLVED by the Citv Council of the Citv of Morro Bay. California. that the Public Services Director. or his duly appointed representative. is authorized to submit an application to the Rural Transit Fund for the purchase of furniture for the Transit Office. PASSED AND ADOPTED by the Citv Council of the City of Morro Bay at a regular meeting thereof held on the 22"d day of January. 2013 on the following vote: AYES: Irons, C. Johnson. N \NOES: None ABSENT: None ABSTAIN,: None ATTEST: J e Boucher. City Clerk Johnson. Lease. Smukler ao J ie L Irons. Mayor ® RESOLUTION NO.07-13 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA SUPPORTING CALIFORNIA COASTAL COMMISSION STAFF RECOMMENDATION FOR DENIAL OF APPLICATION NUMBER A-3-MRB-11-001 THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Mono Bay owns and operates 60% of a Wastewater Treatment Plant (WWTP) originally constructed in 1954; and, WHEREAS, in 2003, the City of Morro Bay and Cayucos Sanitary District (MBCSD) began work efforts on upgrading the existing WWTP in order to phase out the need for the existing 301(h) modified discharge permit; and, WHEREAS, in 2009, a flood analysis of the existing WWTP site concluded that "the flood elevation on neighboring properties would increase if new facilities are built within the existing WWTP footprint'; and, ® WHEREAS, as a result of the flood analysis, the MBCSD designated the property to the south as the site for a new WWTP and changed the scope of the project from an on -site upgrade to demolition, relocation and construction of a new WWTP; and, WHEREAS, on December 20, 2010 the Mono Bay Planning Commission unanimously denied the Coastal Development Permit and certification of the Environmental Impact Report, finding that the proposed project was not an upgrade but a new project and therefore required a more thorough alternative site analysis; and, WHEREAS, on January 11, 2011 the Morro Bay City Council voted 4-1 to overturn the decision of the Planning Commission, approving the Coastal Development Permit and certifying the Environmental Impact Report; and, WHEREAS, the Coastal Development Permit was appealed by numerous parties, including Commissioners Shallenberger and Stone, The Morro Bay Farmers & Ranchers Ag Coalition, Sierra Club and Surfrider Foundation; and, WHEREAS, on March 11, 2011 the California Coastal Commission unanimously found Substantial Issue with the WWTP proposal and directed the applicant to conduct a thorough review of alternative WWTP site locations which may, among other benefits, provide greater protection from coastal hazards, have higher potential for beneficial reuse of the treated wastewater and allow for the restoration of the existing beachfront WWTP location for visitor serving purpose; and, 1 ® WHEREAS, the MBCSD conducted an alternative analysis and were presented the findings on November 10, 2011; and, WHEREAS, although viable alternative sites exist, the MBCSD concluded the proposed site remained the best site; and, WHEREAS, after the decision by the MBCSD on November 10, 2011 the MBCSD has held only four public meetings effectively limiting community dialogue on the proposed project; and, WHEREAS, a new Morro Bay City Council was installed on December 10, 2012 with members who support the consideration of viable alternative WWTP sites; and WHEREAS, the City Council requested a special MBCSD meeting for early January in order to review the relevant facts of the proposed WWTP project and provide direction to staff-, and, WHEREAS, the Cayucos Sanitary District was not able to attend said meeting, citing holiday conflicts; and, WHEREAS, the City of Morro Bay held the special meeting on January 3, 2013; and, WHEREAS, the de Novo hearing for the new WWTP is scheduled for January 10, 2013; and, ® WHEREAS, Coastal Commission Staff recommends denial of the new WWTP, listed as application number A-3-MRB-11-001; and, WHEREAS, in their report Coastal Commission staff states "the proposed project is inconsistent with the City's LCP, including policies related to allowable uses and land use priorities, hazard avoidance and response, sustainable public infrastructure, and public view -shed protection..."; and, WHEREAS, in their report Coastal Commission staff states "Fortunately, there appear to be feasible sites for WWTP development in.the area, including inland sites evaluated by the Applicant"; and, WHEREAS, in their report Coastal Commission staff concludes "a WWTP project is needed to address ongoing coastal resource impacts, but a project at the existing WWTP site cannot be found consistent with the LCP. In fact, an LCP amendment would first be necessary to make it an allowed use at the proposed location. Staff recommends that the Commission deny the CDP for the WWTP at the existing site, and further recommends that the Commission provide direction to the Applicant to pursue an alternative site that can meet LCP objectives and requirements. Staff believes that such a recommendation is good coastal planning and public policy, that it is required for LCP consistency, and that it will provide for a WWTP project that can appropriately address coastal resource problems in a manner that provides long-term sustainable public infrastructure."; and, ® WHEREAS, the Morro Bay. City Council concurs with these statements, and seeks additional time to develop the most appropriate project for the MBCSD. ® NOW, THEREFORE, BE IT RESOLVED, that the City Council of Morro Bay concurs with the Coastal Commission staff report on application number A-3-MRB-11-001 and formally supports Coastal Commission staff recommendation to deny the application. PASSED AND ADOPTED by the City Council of the City of Morro Bay, at a special meeting thereof held on the 3 d day of January 2013, by the following vote: AYES: Irons, C. Johnson, Smukler NOES: N. Johnson, Leage ABSENT: None -"- ASV_ DANA SWANSON, Deputy City Clerk l RESOLUTION NO. 06-13 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, APPROVING THE AVIENDED JOINT POWERS AGREEMENT BETWEEN THE COUNTY AND THE INCORPORATED CITIES WITHIN THE COUNTY FOR THE SAN LUIS OBISPO REGIONAL TRANSIT AUTHORITY THE CITY COUNCIL City of Morro Bay, California WHEREAS, Section 6500 et seq. of the California Government Code (Title 1. Div. 7. Chapter 5. Article 1) provides for agreements between two or more public agencies to jointly exercise any power common to the contracting parties, subject to certain mandatory provisions contained therein: and WHEREAS. the Cities and County have previously entered into a joint powers agreement for the formation of the San Luis Obispo Council of Governments for the purpose of providing. among other things. a regional transit joint powers agreemeht;_and WHEREAS, the Cities and the County have previously entered into a joint powers agreement to provide regional transportation services in 1990. and the Cities and the County amended said joint powers agreement in 1998; and WHEREAS, there is further need to amend the agreement to provide for alternate members, permit the organization to incur debt, and to make other minor modifications. NOW, THEREFORE, BE IT RESOLVED that the City Council of the Citv of Morro Bay, California, hereby approves the amended San Luis Obispo Regional Transit Authority Joint Powers Agreement. BE IT FURTHER RESOLVED that the Mayor is hereby authorized to sign the amended agreement on behalf of the City of Morro Bay. PASSED AND ADOPTED by the Citv Council of the Citv of Morro Bav at a regular meeting thereof held on the 8 s day of January; 201 J. by the following vote: AYES: Irons. C. Johnson, N. Johnson. Leage. Smukler NOES: None ABSENT: None J L. IRONS. Mayor f ATTEST: JANIWBOUCHER. City Clerk SAN LUIS OBISPO REGIONAL TRANSIT AUTHORITY 0 JOINT POWERS AGREEMENT WITNESSETH: This Agreement is made and entered into this 9th day of March, 1990, and amended on 2Id day of September, 1998, and further amended on 2012, by and among the incorporated cities of Arroyo Grande, Atascadero, EL Paso de Robles, Grover Beach, Morro Bay, Pismo Beach and San Luis Obispo, all being municipal corporations in the County of San Luis Obispo, California (hereinafter called "Cities") and the County of San Luis Obispo, a body politic and corporate, and a subdivision of the State of California, (hereinafter called "County"). WHEREAS, Section 6500 et seq. of the California Government Code (Title 1, Div. 7, Chapter 5, Article 1) provides for agreements between two or more public agencies to jointly exercise any power common to the contracting parties, subject to certain mandatory provisions contained therein; and WHEREAS, the Cities and County have previously entered into a joint powers agreement for the formation of the San Luis Obispo Council of Governments for the purpose of providing, among other things, for a regional transportation agency; and WHEREAS, the San Luis Obispo Council of Governments, at a regularly held meeting on May 10, 1989, voted to consolidate the administration of several transportation systems through a regional transit joint powers agreement. NOW THEREFORE, it is agreed as follows: ARTICLE I General Provisions Section 1. Purpose: The purpose of this Agreement is to exercise the common powers of the member agencies for the formation of a Joint Powers Agreement with full power and authority to own, operate and administer a county -wide public transportation system within the boundaries and over the territory over which the Joint Powers Agency has jurisdiction. Section 2. Name: The official name of the entity shall be San Luis Obispo Regional Transit Authority and hereafter referred to as RTA. ARTICLE II Organization Section 1. Board Members: The membership of the RTA Governing Board shall be the same as the membership of the San Luis Obispo Council of Governments (hereinafter referred to as SLOCOG). 1 ® Section 2. Board Meetings - Voting - Quorum: Regular meetings shall be generally held in the first week of July, September, November, January, March and May or as specified in a biannually adopted meeting calendar. Special meetings may be called by the President or upon written request of at least three (3) members of the RTA Board. Voting and quorum provisions shall be the same as those provided in the SLOCOG Joint Powers Agreement. Section 3. Officers: The officers of SLOCOG shall serve as officers of RTA. Section 4. Executive Director: The RTA Board shall designate an Executive Director to operate RTA. The Executive Director shall serve at the pleasure of the RTA Board, with delegated powers to certify documents of the RTA Board as required by the law and to assume such duties and responsibilities as the Board may direct. Section 5. Members: The County of San Luis Obispo and all cities incorporated in the County of San Luis Obispo presently or in the future, are declared eligible for membership. 2. Member city agencies may elect to have an alternate member(s) from their city council in addition to any official member, but said alternate(s) shall be able to vote only in the absence of the official representative. 3. Membership shall be contingent upon the execution of this Joint Powers Agreement. Section 6. Boundaries and Service Levels: The service area boundaries shall be all of the area within the boundaries of San Luis Obispo County as designated by the RTA Board. Any additional services beyond the level recommended by the Regional Transportation Plan or mandated in the Unmet Transit Needs Hearing (PUC Section 99401.5) may be instituted, but shall require unanimous approval of affected jurisdictions, with costs for the extra service to be distributed on the basis of formula developed by the RTA Board members representing the affected jurisdictions. Section 7. Committees: Committees and subcommittees may be established as RTA may deem appropriate. 2. Membership on "ad -Hoc" policy committees shall be at the discretion of the President. Nothing herein shall be construed to limit membership on these aforesaid committees to officials of the member agencies. The ® President may appoint any individual deemed qualified to serve on a committee. Standing committees shall include the: Regional Transit Advisory Committee (RTAC) serving as a Regional Transit Productivity Committee to advise the Board on the efficiency and effectiveness of the transit system. b. An Executive Committee comprised of the President, Vice President and the past President and at least one representatives from the county of San Luis Obispo (if none of the above) shall advise the Executive Director and RTA on: draft agendas, personnel issues, budget and Overall Work Program; controversial, sensitive and major policy issues; and shall facilitate the annual performance evaluation of the Executive Director. Items for review shall be selected by the Executive Director in consultation with the President: All Committee members may include agenda items as they desire. For purposes of conducting business, two members shall constitute a quorum. 4. No committee shall commit RTA on any matter or questions of policy. Such matters or questions can only be decided by RTA. 5. All committees shall receive clerical assistance from RTA staff and, by agreement, SLOCOG staff for the purpose of maintaining minutes of meetings and other such duties as the Executive Director may direct. The chair of each committee shall sign the original copy of the minutes indicating verification of contents upon committee adoption. Copies of minutes of all meetings shall be sent to members of RTA and the Executive Director. ARTICLE III Financial Provisions Section 1. Budget: The Executive Director shall prepare an annual budget for RTA adoption prior to commencement of each fiscal year. The approval of the Annual Budget shall be in accordance with those procedures prescribed by the Joint Powers Agreement of SLOCOG. Accounting practices to be applied will conform with those used by San Luis Obispo County, consistent with Transportation Development Act rules and regulations. A Consolidated Fund balance and cash balance will carry forward from one year 401 to the next. The budget may additionally carry funds for future fiscal years where necessary to develop a multi -year Capital Improvement Program and to reflect obligations under state or federal funding agreements, to the extent allowable by California law. No member Agency shall be required to expend any of its general fund monies to support the operations of RTA. The operation of the transit system shall be funded from revenues derived from operations, member Transportation Development Act fund contributions, grants, and any other appropriate revenue sources. Each member agency shall make an annual contribution to RTA in accordance with the adopted budget. Any formula may be amended upon approval of all jurisdictions affected by that formula and ratified by RTA. All population percentages utilized shall be those annually adopted by SLOCOG for allocating Transportation Development Act Funds based annually on estimates prepared by the State Department of Finance pursuant to Section 2227 of the Revenue and Taxation Code for cities and by the County Planning Department for unincorporated communities. Section 2. Expenditures: RTA may establish procedures and policies to. insure competitive prices for the purchases of goods and services. Formal bidding shall not be required unless directed specifically by RTA or unless required by state or federal law. Particularly in the purchase of equipment, including buses, RTA may consider the design, maintenance and operating costs, and other similar factors in determining the most suitable equipment and need not purchase equipment having the lowest initial cost. Section 3. Treasurer and Auditor: Pursuant to Government Code Section 6505.5, the Treasurer of the County of San Luis Obispo is hereby designated as Treasurer of RTA. The Treasurer shall have the powers and duties set forth in Government Code Section 6505.5. The Auditor/Controller of the County of San Luis Obispo is designated as the Auditor of RTA pursuant to Government Code Section 6505.5. Section 4. Annual Audit: RTA shall cause an annual audit to be prepared and filed in accordance with Government Code Section 6505 and Public Utilities Code Section 99245. Section 5. Annual Report: The Executive Director shall prepare and submit an annual report of the operations to the RTA Board, SLOCOG and State Controller within 90 days of the end of the fiscal year pursuant to Public Utilities Code, Section 99243. Section 6. Periodic Reporting: The RTA Board may require periodic reporting of ridership, finances, or other information. It shall be the responsibility of the Executive Director to provide such reports in a form acceptable to the RTA Board. 4 Anft ARTICLE IV or Authority Section 1. Powers: RTA shall have all Powers necessary to carry out the purpose of this Agreement, except the power to tax. Its power to expend funds shall be limited only by the availability of funds as set forth in ARTICLE III: Finances, Section 1. The Powers of RTA specifically include, but are not limited to, the following: To solicit bids and negotiate contracts from private enterprise for services and/or operation. 2. To sue or be sued. 3. To employ agents, employees and contract for professional services. 4. To make and enter contracts, including labor, purchase agreement and employment contracts. To acquire, convey, construct, manage, maintain and operate necessary equipment, building and improvements. 6. To acquire and convey real and personal property. 7. To incur debts, liabilities and obligations, as well as obligations of financial assistance from State and Federal agencies, and to obligate RTA to operate the improvements, equipment or transportation system in accordance with the terms and conditions of said financial assistance. Section 2. RTA is a Public Legal Entity: RTA is a public entity duly formed and existing under the laws of the State of California. It is a separate and distinct legal entity from its member agencies. The debts, duties and obligations created pursuant to this Agreement, shall be solely the obligations of RTA and not those of its officers, employees, members of the Board of Directors or the member agencies. ARTICLE V Miscellaneous Provisions Section 1. Withdrawal of Member: A withdrawing member's financial obligation under this Section is limited to the withdrawing member's pro-rata share of the currently adopted operating budget based upon ARTICLE III, Section 1 within the service area of the obligated commitments affecting the withdrawing member and any SLOCOG's finding as to unmet transit needs that are reasonable to meet pursuant to Public Utilities Code Section 99401.5. Section 2. Amendment of Agreement: No amendment to this Agreement shall be Ob made without the consent of all member agencies at the time of the amendment. 0 a Section 3. Ratification - Effective Date: This Agreement shall be deemed effective as to those parties executing this agreement upon their execution of the agreement. Section 4. Assignability: In the event it is deemed in the best public interest to have RTA operated by another individual or entity, whether public or private, and provided that the assignment complies with State and Federal laws, the agency on affirmative vote of the majority in accordance with Section 2 of ARTICLE II, may sell, lease or assign all of its real and personal property and cease operations upon such terms and conditions as RTA determines to be reasonable. Section 5. Termination: This Agreement shall continue in full force and effect until rescinded by a majority of the member agencies. Section 6. Notification to Secretary of State: Pursuant to Government Code Section 6503.5, RTA shall cause a notice of the execution of this Agreement to be prepared and filed with the Office of the Secretary of the State of California, within thirty (30) days after the effective date of any amendment to this Agreement. Until such filings are completed, RTA shall not incur indebtedness of any kind. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first hereinabove written. IN WITNESS THEREOF, the parties have executed this Agreement as of the day and year first hereinabove written. City of Arroyo Grande By. Date: Clerk City of Atascadero By: Clerk City of Grover Beach By: Clerk Resolution Resolution Date: Resolution No. M • r u ® City of Morro a By: iGici! Clerk (/ El E City of Paso Robles By: Clerk City of Pismo Beach By: Clerk City of San Luis Obispo By: Clerk County of San Luis Obispo. By: Approved as to form and legal effect: TIM MCNULTY County Counsel In Date: Deputy County Counsel 7 Date: January 8, 2013 Resolution No. 06-13 Date: Resolution Date: Resolution No Date: Resolution No. Date: Resolution No. City of Morro ay Clerk City of Paso Robles By: Clerk City of Pismo Beach By: Clerk City of San Luis Obispo ® By. Clerk County of San Luis Obispo By: Clerk Approved as to form and legal effect: TIM MCNULTY County Counsel By: Deputy County Counsel Date: E 7 Date: January 8, 2013 Resolution No. 05-13 Resolution No. Date: Resolution No. Date: Resolution Date: Resolution No. City of Marro Bay G� By: ((LZ� J/ ie Boucher Clerk City of Paso Robles By: Clerk City of Pismo Beach By: Clerk City of San Luis Obispo By: Clerk County of San Luis Obispo By: Clerk Approved as to form and legal effect: TIM MCNULTY County Counsel By: Deputy County Counsel Date: a Date: January 8, 2013 Resolution No. 06-13 Date: Resolution No. Resolution No. Date: Resolution No Date: Resolution RESOLUTION NO. 05-13 ® RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NIORRO BAY, CALIFORNIA APPROVAL OF ANIENDMENT #3 TO THE LEASE AGREEMENT FOR LEASE SITE 50-51/50W-51 W, LOCATED AT 451 EMBACADERO THE CITY COUNCIL City of Morro Bay, California WHEREAS. the City of iviorro Bay is the lessor of certain property on the Morro Bav waterfront described as Lease Site 50-5 1/50W-5 1 W:'and WHEREAS, Reg Whiblev is the lessee of said property; and WHEREAS. Mr. Whibley is proposing to add a fire suppression system to the buildings on the dock with electrical and other improvements; and WHEREAS. the City and Mr. �Nhibley have agreed to a lease amendment that will extend the term of the Master Lease Agreement from September 30. 2021 until June 30, 2025. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of is Morro Bay, California, that Amendment r3 to the Lease Agreement for Lease Site 50- 51/50W-51 W, located at 451 Embarcadero. between the Citv of Morro Bay and Reg Whiblev, is hereby approved and that the !✓favor is hereby authorized to execute said Amendment. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 8th day of January. 2013 on the following vote: AYES: Irons. C. Johnson_. N. Johnson, Lease_. Smukler NOES: None ABSENT: None ATTEST: AkkoI=- JANItVBOUCHER, City Clerk E JAi E L. IRONS. i1cfayor AMENDMENT #3 TO THE LEASE AGREEMENT FOR LEASE SITE 50-51/50W-51 W (jKhis Amendment #3 ("Amendment") is made and entered into as of this 8t' day of January, 2013, to the Lease greement for Lease Site 50-51/50W-51W dated September 30, 1987 by and between the City of Morro Bay, a municipal corporation of the State of California, hereinafter called "City" and Associated Pacific Constructors, Inc., subsequently assigned to Reg Whibley ("Tenant") per Resolution No. 38-04 on May 24, 2004. WHEREAS, in October 2011, the City entered into Amendment #2 whereby Tenant agreed to install an under - wharf fire sprinkler system by September 30, 2012 in exchange for adding 3 years and 9 months to the lease. The deadline for the improvements under Amendment #2 has passed thereby nullifying the lease term extension; and, WHEREAS, Tenant intends to install a fire sprinkler system not under the wharf, but in the buildings above, in addition to the electrical and other improvements to a similar monetary value as was proposed for Amendment #2 on Lease Site 50-51/50W-51W, estimated to cost $12,000; and, WHEREAS, it is mutually beneficial for City and Tenant to acknowledge the improvement to the Lease Site and benefit of coordinating the term of the lease agreements for Lease Site 50-51/50W-51W and the adjacent Lease Site 52/52W; now therefore; NOW THEREFORE, Tenant and City shall provide for the amendment of Master Lease as follows: 1. SECTION 1.01 TERM: The Termination Date shall be amended to read "June 30, 2025". 2. CONSTRUCTION OF IMPROVEMENTS sTenant agrees to obtain the required building permit and to complete construction/installation of the fire uppression system in the buildings located on the dock, in addition to the electrical and other improvements located on Lease Site 50-51/50W-51W by September 1, 2013. Failure to complete said construction by September 1, 2013 will void this Amendment. Tenant shall submit copies of invoices paid by Tenant to verify said estimated expenses of this agreement. All other provisions of the lease shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date written above. CITY OF MORRO BAY ;/fl2LIiA / • mil/ Jaarrriie L. Irons, Mayor r f0 PROVED AS TO FORM: rJ j Robert Schultz, City A�orney ®ATTEST: Jayfiie Boucher, City Clerk TENANT — Reg Whibley 0 RESOLUTION NO. 04-13 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORWNIA, AUTHORIZING A CONTRACT A_NIENDMENT WITH ICMA-RC TO ALLOW EMPLOYEE LOANS ON 457 DEFERRED COMPENSATION ACCOUNTS THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay (`Employer') allows its employees to participate in IRC Section 457 Deferred Compensation Plans on a pre-tax basis; and WHERAS, the Employer has a 457 plan for its employees with ICMA-RC; and WHEREAS. the Employer recognizes that employees may have the need to borrow against their 457 plans for emergencies. college, home purchase or other uses; and WHEREAS. ICMA-RC allows employees to enter into loans against their 457 accounts for any reason, but requires the Employer to enact a plan amendment. NOW, THEREFORE IT IS RESOLVED, that the Employer hereby amends the ICMA- RC 457 Deferred Compensation Plan 4301993 to allow for employee loans as follows: 1. Loans can be made for any purpose up to 50% of the participant's vested account balance. 2. Only one loan can be outstanding at a time. 3. General purpose loans are to be repaid in five years, mortgage loans 30 years. 4. Loans payments are to be made through bi-weekly payroll deduction only. 5. Loans proceeds are pre-tax dollars, but pavments are made with after-tax dollars, plus interest. 6. All loans are due and payable in full upon separation from service. PASSED AND ADOPTED by the City Council of the Citv of Morro Bay, at a regular meeting thereof held on the 8 ° day of January 2013, by the following vote: AYES: Irons, C. Johnson, N. Johnson, Leage, Smukler NOES: None ABSENT: None j . J IE L. IRONS. iv 'or ® HE BOUCHER, City Clerk is RESOLUTION NO. 03-13 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNZA, ADOPTING THE VANTAGECARE RHS ENIPOYER INVESTMENT PROGRAM (EIP) FOR PRE -FUNDING OTHER POSTEMPLOYMENT BENEFITS (OPEB) THE CITY COUNCIL City of Morro Bay, California WHEREAS, the Government Accounting Standards Board (GASB) issued Statement No. 45 Accounting and Financial Reporting by Employers for Postemployment Benefits Other than Pensions, which requires all government employers to measure, recognize, and display other postemployment benefits (OPEB) expenditures and related liabilities: and WHERAS, the City of Morro Bay (Employer'), due to its participation in the California Public Employee Retirement System's (CalPERS) health plans, is mandated by California Government Code 22892(b)(1) of the Public Employees' Medical and Hospital Care Act (PEMHCA) to contribute the established minimum health premium contribution for their participating active membership and annuitants at the current monthly rate per employee and retiree: and WHEREAS, the Employer has determined that pre -funding this liability and placing that money in an OPEB trust is in the best interests of the Employer: and WHEREAS, the Employer has determined that the establishment of the retiree health savings plan (Plan") serves the above objective. NOW, THEREFORE IT IS RESOLVED, that the Employer hereby adopts the Plan in the form of the ICNIA Retirement Corporation's VantageCare RHS Employer Investment Program. BE IT FURTHER RESOLVED that the assets of the Plan shall be held in trust, with the Administrative Services Director serving as trustee. PASSED AND ADOPTED by the City Council of the City of Morro Bay, at a regular meeting thereof held on the 8 h day of January 2013. by the following vote: AYES: Irons. C. Johnson, N. Johnson, Leage. Smukler NOES: None ABSENT: None L. IRONS, Mayor ® J V BOUCHER, City Clerk ® RESOLUTION NO.02-13 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, AUTHORIZING THE EXAMINATION OF SALES OR TRANSACTIONS AND USE TAX RECORDS THE CITY COUNCIL Cite of Morro Bay, California WHEREAS, pursuant to Ordinance No. 519, the City of Morro Bay entered into a contract with the State Board of Equalization to perform all functions incident to the administration and collection of local sales and use tares: and WHEREAS, pursuant to Resolution No. 41-02 the City of Morro Bay entered into a contract with the State Board of Equalization to perform all functions incident to the administration and collection of local transactions and use tares; and WHEREAS. the Citv Council of the Ciry of Morro Bav deems it necessary for authorized representatives of the City to examine confidential sales and transactions and use tax records of the Board pertaining to sales and transactions and use tares collected by the Board for the City; and ® WHEREAS, Section 7056 of the California Revenue and Taxation Code sets forth certain requirements and conditions for the disclosure of Board records and establishes criminal penalties for the unlawful disclosure of information contained in. or derived from sales or transactions and use tax records of the Board: and WHEREAS. Section 7056 of the California Revenue and Taxation Code requires that any person designated by the City shall have an existing contract to examine the City's sales and transactions and use tax records. NOW, THEREFORE IT IS RESOLVED AND ORDERED AS FOLLOWS: Section 1. That the City Manager. Administrative Services Director, .City Treasurer. Senior Accounting Technician, and Permit Technician, or other officer or employee of the City designated in writing by the Citv Manager or Administrative Services Director to the State Board of Equalization (hereafter referred to as Board); are hereby appointed to represent the City with authoritv to examine all of the sales or transactions and use tax records of the Board pertaining to sales or transactions and use taxes collected for the City by the Board of Equalization pursuant to the contract between the Citv and the Board under the Bradley -Burns Uniform Local Sales and Use Tax Law or the Transactions and Use Tax Law. The information obtained by examination of Board records shall be used only for purposes related to the collection of City sales or transactions and use taxes by the Board pursuant to the contract. El Section 2. That Hinderliter. de Llamas and Associates is hereby designated to examine the sales and transactions and use tax records of the Board pertaining to sales and transactions and use tares collected for the Ciry by the Board. The person or entity designated by this section meets all of the following conditions: a) has an existing contract with the City to examine sales and transactions and use tax records; b) is required by that contract to disclose information contained in, or derived from those sales and transactions and use tax records only to the officer or employee authorized under Section 1 (or Section 2) of this resolution to examine the information: c) is prohibited by that contract from performing consulting services for a retailer during the term of that contract: d) is prohibited by that contract from retaining the information contained in, or derived from those sales and transactions and use tar records after that contract has expired. The information obtained by examination of Board records shall be used only for purposes related to the collection of Citv's sales and transactions and use tares by the Board pursuant to the contracts between the City and the Board of Equalization. Section 3. That this Resolution supersedes all prior sales and transactions and use tax Resolutions is of the City of Morro Bay adopted pursuant to subdivision (b) of Revenue and Taxation Section 7056. 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 January 2013. by the following vote: AYES: Irons, C. Johnson, Smukler NOES: N. Johnson, Lease ABSENT: None JAM E BOUCHER, City Clerk 11 JA+VIIE L. IRONS, Mayor RESOLUTION NO.01-13 ® RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNLA, ADOPTING THE CITY OF MORRO BAY INVESTMENT POLICY AND DELEGATING AUTHORITY TO THE CITY TREASURER TO li" EST IDLE FUNDS THE CITY COUNCIL City of Morro Bay, California WHEREAS. the City Council of the Citv of Morro Bay desires to prudently invest the idle funds of the City to maximize the use of taxpayer funds; and WHEREAS. the California Government Code Section 536003 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 bodv of that local aeenc_v. 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. 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 Citv Council of the Citv of Morro Bay that the Statement Policy, attached hereto, is adopted. and that the City_ Treasurer is hereby authorized to carry out this policy on behalf of the City Council. PASSED AND ADOPTED by the City Council of the Citv of Morro Bay. on the 81h day of January. 2011 by the following vote: AYES: Irons, C. Johnson_. N. Johnson, Leage. Smukler NOES: None ABSENT: None 1IE L. IRONS. Ma, or ® 4JAINBOWUCHER. City Clerk CITY OF MORRO BAY INVESTMENT POLICY JANUARY 2013 PURPOSE This investment policy establishes the practices and procedures to be used in managing the City of Morro Bay's (City) portfolio in accordance with the requirements of the State of California Government Code and the guidelines provided by the California Debt and Investment Advisory Commission (CDIAC) and the Government Finance Officers Association (GFOA). SCOPE OF THE POLICY This policy governs the investment of money that is not required to meet the immediate needs of the City. • LEGAL AUTHORITY Government Code Sections: California Government Code Sections 53600 to 53609, 53635, and 16429.1 govern the investment of local agency funds. Legislative Changes: Any applicable legislative actions will be acted on as of their effective dates and will be incorporated into the policy annually, specifying the California Government Code sections that have been added, deleted or amended. OBJECTIVES The City Treasurer will consider the following factors in priority order when assessing investment opportunities: Safety: The primary objective is the preservation of principal. Capital losses will be avoided, whether from default or erosion of market value, meaning that the City will not sell or trade an investment because of market fluctuation. The two types of risk to be minimized are: 1. Credit risk — the risk that an issuer or other counterparty to an investment will not • fulfill its obligations; and 2. Interest rate or market risk — the risk that changes in interest rates will adversely affect the fair value of an investment. 1 Liquidity: The second objective is the liquidity of the portfolio. The portfolio should • remain sufficiently flexible to enable the City to meet the operating requirements that are reasonably anticipated. In order to ensure liquidity, the investment policy must recognize that calculating cash flows are the basis of any good investment strategy. Meeting the daily cash flow demand goes hand -in -hand with meeting the City's liquidity needs. Yield: The third objective, behind safety and liquidity, is attaining a market rate of return throughout the budgetary and economic cycles. While managing the portfolio, the Treasurer and designated staff will strive to maintain public trust by avoiding any transactions that might impair public confidence in the City. When selecting investment instruments, the Treasurer and designated staff will remain cognizant of any social and policy considerations that have been established and defined in this policy. GENERALSTRATEGY The Treasurer and designated staff may follow a passive or active investment strategy. Passive investment policies adhere to the investment goal of holding investments to maturity. Active investment strategy is the buying and selling of investments to achieve a certain benchmark objective. Great care, coupled with the advice of a fiscal agent, should be followed with an active investment policy. • The City, as stated above in the Objectives section under Safety, follows the passive investment strategy of holding investments to maturity. STANDARD OF CARE Prudent Investor Standard: The prudence standard for trust investing traces back to Harvard College v. Amory, 26 Mass. (9 Pick.) 446 (1830). Judge Samuel Putnam stated that trustees should "observe how men of prudence, discretion and intelligence manage their own affairs, not in regard to speculation, but in regard to the permanent disposition of their funds, considering the probable income, as well as the probable safety, of the capital to be invested." This standard will be followed by the Treasurer and designated staff. Ethics and Conflict of Interest: The Treasurer and designated staff shall refrain from personal business activities that could conflict with the proper execution of the investment program or which could impair their ability to make impartial decisions. • i7 Delegation of Authority: The following positions and corresponding City personnel are • delegated the power to invest the funds of the City: City Manager: Andrea Lueker Admin Services Dir/Treasurer: Susan Slayton Human Resources Analyst: Laurie Goforth Senior Accounting Technician: Cristie Brazzi These designations may change with the annual affirmation of this policy. Each delegate is required to adhere to the requirements set forth in the investment policy. SAFEKEEPING AND CUSTODY Third -party Safekeeping: Ownership of the City's investment securities will be protected through third -party custodial safekeeping. The custodian will provide the City with a safekeeping receipt or monthly, itemized statement. Exceptions to this requirement are made for certificates of deposit, money market funds and investment pools. Internal Controls: These are designed to ensure that the assets of the City are protected from theft, loss, or misuse. Such internal controls that are in place include: 1. Control of collusion; • 2. Separation of duties; 3. Safekeeping of securities; and 4. Written confirmation of telephone transactions and wire transfers • The City will separate the person who authorizes or performs the transaction from the person or people who ultimately record or otherwise account for the transaction to achieve separation of duties. Delivery vs. Payment: All investment transactions should be conducted using standard delivery vs. payment procedures. In delivery vs. payment, the purchaser pays for the securities when they are delivered either to the purchaser or his/her custodian, and ensures that securities are deposited in an eligible financial institution prior to the release of funds. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS The City will only conduct business with approved banks, savings and loans, credit unions, and securities brokers/dealers. A list of financial dealers and institutions is to be maintained. Broker/dealers and institutions must meet all requirements established by federal and state law. 3 SUITABLE AND AUTHORIZED INVESTMENTS Authorized Investment Types: The City, by virtue of California Government Code Sections • 53600 — 09, has the ability to invest in numerous types of instruments. The City has looked at its goals, objectives, and standards of care in establishing a list of authorized investment types that also meet statutory requirements. Those types of investment instruments that meet the criteria for the City are: 1. Securities of the U. S. Government, or its agencies; 2. California's Local Agency Investment Fund (LAIF) pool; 3. FDIC Insured Certificates of Deposit up to $250,000; 4. Bankers' Acceptances (not exceeding 40% of the City's portfolio/max maturity 180 days); 5. Money Market funds; 6. Collateralized deposits ; 7. Passbook savings accounts; and 8. Repurchase agreements and reverse repurchase agreements (no more than 25% of the City's portfolio). Prohibited Investment Types: In addition to a listing of authorized investments, California Government Code Section 53601.6 prohibits local agencies from investing in the following instruments: 1. Inverse floaters; • 2. Range notes or mortgage -derived, interest -only strips; 3. Any security that could result in zero interest accrual if held to maturity; 4. Stock; and 5. Futures or options. There may be additional investment instruments in which the City does not want the Treasurer to invest, and those will be defined in future investment policies. INVESTMENT PARAMETERS Diversification of Investments: The City may choose to impose more stringent restrictions or further restrictions on other investment instruments, depending on its investment goals and risk tolerances, than those proposed in the California Government Code Sections 53600 - 09. The City has indicated those authorized investments as follows: 1. Money market funds; 2. Collateralized deposits; 3. Securities of any one issuer, not to exceed 5% of the City's portfolio, except those obligations of the U.S. government, U.S. governmental agencies, and U.S. government -sponsored enterprises; • 4. Mutual funds; and E 5. FDIC insured certificates of deposits. • Maximum Maturity., California Government Code Section 53601 lists the maximum maturity for any instrument as five (5) years. The exception to this time frame is made for investments with LAIF or collateralized deposits. Minimum Credit Requirements., The City has chosen to follow the California Government Code Section 53601 that sets the minimum credit rating required for certain investment instruments as follows: 1. Short-term debt shall be rated at least "A-1" by Standard & Poor's Corporation, "P-1" by Moody's Investors Service, Inc., or "F-1" by Fitch Ratings. If the issuer of short-term debt has also issued long-term debt, this long-term debt rating shall be rated at least 'A" without regard to +/- or 1, 2, 3 modifiers, by Standard & Poor's Corporation, Moody's Investors Service, Inc., or Fitch Ratings. 2. Long-term debt shall be rated at least "A," without regard to +/- or 1, 2, 3 modifiers, by Standard & Poor's Corporation, Moody's Investors Service, Inc., or Fitch Ratings. Maximum Weighted Average Maturity of a Portfolio: As part of the monthly portfolio performance report that is provided to the City Council, a weighted average maturity (WAM) •of the portfolio is calculated. While there are no requirements under state law for a maximum WAM of a portfolio, CDIAC's Local Agency Investment Guidelines suggest that local agencies include and monitor WAM to arrive at an acceptable range for future implementation of a maximum benchmark. PORTFOLIO MANAGEMENT ACTIVITY Active or Passive Portfolio Management: In active portfolio management, treasurers buy and sell securities based on how to maximize portfolio values over a given timeframe. In passive portfolio management, the goal is to match a market rate of return (usually a benchmark). Weighing the pros and cons of each strategy in light of staff resources and investment, the City has chosen to follow a passive portfolio management strategy. Competitive Bidding: Investments are purchased in the most cost effective and efficient manner utilizing approved brokers/dealers on all investment transactions. Reviewing and Monitoring of the Portfolio. The portfolio is to be reviewed on a monthly basis to ensure that the investments are being properly tracked and reported. Portfolio Adjustments: If the portfolio demonstrates non-compliance with the investment policy, the Treasurer and designated staff may hold the affected securities to maturity to • avoid losses; however, the Treasurer may choose to rebalance the portfolio earlier to bring it back into compliance only if the portfolio will not suffer any losses for selling the investment prior to maturity. 5 Performance Standards: The objective of investing is to obtain a rate of return throughout • budgetary and economic cycles, commensurate with investment risk constraints and cash flow needs. REPORTING Reporting Methods: On a quarterly basis, the investment portfolio will be presented at a City Council meeting along with the quarterly financial reports, and will list the following components: 1. Types of investment; 2. Issuer names; 3. Dates of maturity; 4. Par amounts; 5. Dollar amounts; 6. Market values; 7. Descriptions of programs under the management of contracted parties; 8. A statement of compliance with the investment policy; and 9. A statement of the ability to meet cash flow needs for six months. Governmental Accountings Standards Board (GASB) Statement No. 31 - Marking to Market: The City's portfolio is to be marked -to -market for the monthly investment report provided to • the City Council and at minimum, annually for the financial statements. Market values are to be obtained from a reputable and independent source and disclosed to the City Council in the monthly written report. The independent source of pricing should not be one of the parties to the transaction being valued. Such an independent source could include a broker or other financial institution that was not counterparty to the transaction, the custodial bank if the bank was not a counterparty to the transaction, publicly available publications such as The Wall Street Journal, or other pricing services for which a separate fee would be paid. This is consistent with GASB Statement No. 31, which requires that governmental entities report investments at fair value, and with the California Governmental Code, which also requires market values of investments be reported. Calculation of Yield and Costs: All yield rates on investments will be presented at book value. Investment Policy Adoption, Review, and Amendment., The investment policy will be reviewed, amended, and presented to the City Council annually at the beginning of the calendar year. The review should ensure that the policy is consistent with the overall objectives of preservation of principal, liquidity, and return, and is in conformance with the law, financial and economic trends, and the cash flow needs of the local agency. Definitions or Glossary of Terms: This investment policy includes a definition section • (Appendix A) in order to establish a common vocabulary between the Treasurer and designated staff, the City Council, and the public. L" APPENDIX A — INVESTMENT POLICY TERMINOLOGY • The following are examples of terminology commonly found in California City investment policies. The inclusion of these sections provides clarity to investment policies and better enables readers to understand important concepts. Authorized Financial Dealers and Institutions: A list of financial institutions authorized to provide investment services. May also include a list of approved security broker/dealers with which the City can do business. These institutions and broker/dealers are usually selected by their ability to add value to the investment process. Some criteria to consider when choosing an approved broker/dealer include creditworthiness, expertise, and the products in which the financial dealer or institution is familiar. GFOA suggests that all entities qualifying for investment transactions provide audited financial statements; proof of industry group (National Association of Securities Dealers [NASD]) certification; proof of state registration; completed broker/dealer questionnaire; and certification of having read, understood, and agreeing to comply with the investment policy. Bankers' Acceptance: A draft, bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer. Certificate of Deposit: A time deposit with a specific maturity evidenced by a certificate. • Collateralization: Process by which a borrower pledges securities, property, or other deposits for the purpose of securing the repayment of a loan and/or security. California Government Code Section 53601 requires that all repurchase agreements be secured by eligible securities with a market value of 102 percent or greater of the funds borrowed. California Government Code requires public deposits to be collateralized at 110%. Delegation of Authority: The granting of authority to manage the investment program to designated officials. Such authority is usually derived from code sections, ordinance, charters, or statutes. Government Code Section 53607, for example, allows the City Council to delegate, for a one-year period, its authority to invest or reinvest funds or to sell or exchange securities held by the local government. Delivery vs. Payment: A type of securities transaction in which the purchaser pays for the securities when they are delivered either to the purchaser or his/her custodian. It ensures that securities are deposited in an eligible financial institution prior to the release of funds. A third -party custodian as evidenced by safekeeping receipts should hold securities. Diversification: A process of investing assets among a range of security types by sector, maturity, credit rating, and call type or structure. This reduces exposure to risk by combining a variety of investments, which are unlikely to all move in the same direction. GFOA suggests diversifying a city's investment portfolio by limiting investments to avoid exposure • to a specific sector, limiting investment in securities with higher credit risks, investing in instruments with varying maturities, and continuously investing a portion of the portfolio in readily available funds such as a local government investment pool, money market funds, or 7 overnight repurchase agreements to ensure that appropriate liquidity is maintained in order to meet ongoing obligations. • Ethics and Conflicts of Interest: The California Political Reform Act of 1974 requires certain designated public officials at all levels of government to publicly disclose their private economic interests and requires all public officials to disqualify themselves from participating in decisions in which they have a financial interest. As part of this requirement, local agencies are required to adopt and promulgate a Conflict of Interest Code, with certain required sections. To further promulgate this Code, investment policies sometimes include language requiring the ethical conduct of investment officers and statements regarding refraining from personal business activity that could conflict with the proper execution and management of the investment program or that could impair their ability to make impartial decisions. To avoid conflicts, GFOA recommends that investment officers disclose material interests in financial institutions with which they do business, disclose personal financial interests that could be related to the performance of the investment portfolio, and refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the local government. Exemption: Language that grandfathers prohibited investments into the investment policy because they may have been held in the portfolio prior to the prohibition. When these investments mature or are liquidated, the money should be reinvested as provided by the policy and the exemption language should be removed from the policy. FDIC: Federal Deposit Insurance Corporation is a federal agency that insures bank deposits up to $250,000 per deposit. General Objectives: The section of an investment policy that illustrates the three main objectives (safety, liquidity, and yield), in order of priority, of a good investment policy. In addition to these commonly included objectives, there are a myriad of other objectives for which an investment policy can strive. Safety is the preservation of principal. Liquidity is how easily an investment may be redeemed for cash. Yield is the current rate of return on a security generally expressed as a percentage of its current price. As per California Government Code Section 53600.5, safeguarding the principal of the funds under its control should be the primary objective of local agencies. Liquidity also should be a principal objective of a portfolio. The portfolio should maintain sufficient liquidity to meet operating requirements. To accomplish this, a local agency can structure a portfolio so that investments mature when cash is needed and also by investing in liquid securities with an active secondary market. Yield should be the last objective an investment portfolio should strive for, behind safety and liquidity. Since there are many different ways for yield to be calculated, the investment policy should specify how it is to be calculated. Internal Controls: The system used to ensure that the local government assets are protected from loss, theft, or misuse. Such a system should provide a reasonable assurance that such loss, theft, or misuse can be prevented. Examples include separation of duties, . delegation of authority, and documentation. GFOA suggests that an internal control system address the following points: control of collusion, separation of transaction authority from 9 accounting and recordkeeping, custodial safekeeping, avoidance of physical delivery of •securities, clear delegation of authority to subordinate staff, written confirmation of transactions for investments and wire transfers, and development of a wire transfer agreement with the lead bank and third -party custodian. Investment Parameters: Specified restrictions on investments to limit the amount of risk in a portfolio. These parameters may be specified in the California Government Code; however, the local agency may choose to further restrict investment options depending on its risk tolerance. Such parameters may include diversification of investments types, percentages, or dollar limits per issuer and setting maximum maturities. Investment Types: A recitation of the investment types the local agency has been given authority in which to invest. This may be a list of securities allowable under California Government Code Section 53601 et seq., and may be further restricted by the agency itself. For a description of the allowable California local agency investment instruments, please see CDIAC's latest version of its Local Agency Investment Guidelines, available on its website at www.treasurer.ca.gov/cdiac. GFOA recommends the investment in the following types of securities: U.S. government securities and agency obligations; highly -rated certificates of deposit, bankers' acceptances, commercial paper; investment -grade state and local government obligations; repurchase agreements securitized by the previously -mentioned securities; SEC -regulated, dollar -denominated money market mutual funds; and local government investment pools. LAIF: Local Agency Investment Fund, the State of California's investment pool in which cities, counties and special districts may participate. Liquidity: A liquid asset is one that can be quickly and easily converted into cash without loss in value. Market Value: The price at which a security is trading at a point in time. Selling an investment at market value can result in a gain ($500,000 investment sold for $515,000 = $15,000 gain) or loss ($500,000 investment sold for $498,000 = $2,000 loss). Gains and losses are dependent on changes in the current rate of interest as compared to the interest rate of the investment that is being considered for sale. Marking -to -Market: The act of recording the price or value of a security to reflect its current market value rather than its book value. Maximum Maturities: Maturity is the date on which the security or obligation is redeemed by the issuer in exchange for cash. California law states that local governments cannot invest in instruments with terms remaining to maturity in excess of five years unless they receive express authority from their legislative bodies to do so. Local governments should attempt to match investment maturities with anticipated cash flow requirements. There is no requirement under California law for local governments to have a weighted average maturity . (WAM) restriction for their portfolio, although CDIAC's Local Agency Investment Guidelines suggests that local agencies consider adopting a WAM restriction. E Performance Standards: The criteria by which a stated goal is measured. An investment • portfolio's performance and risk exposure should be evaluated against appropriate benchmarks on a regular basis. One standard that should be strived for should be a market rate of return in a given interest rate environment. Policy Considerations: The local ordinances or other requirements that place restrictions on the policy. Local governments should consider what should be exempted from the policy and also when, or under what circumstances, the policy should be amended. Pooling of Funds: A statement in the investment policy that except for certain restricted or special funds, cash balances should be consolidated from all funds to maximize investment earnings. Portfolio: The collection of investment instruments held. Prudent Investor Standard: Legal maxim that all investments should be made with care, skill, prudence and diligence under the circumstances then prevailing, which persons of prudence, discretion, and intelligence exercise in the professional management of their business affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived. Reporting: Presentation of evaluation data or other information to communicate processes, • roles, and results. Investment policies should include reporting requirements such as methods of reporting investments, the standards against which investments should be reported, and the requirement for calculating market value. Reporting Methods: Ways in which investment outcomes are reported including listing of instrument values, dollar value returns, percentage yields, etc. GFOA suggests that local governments prepare investment reports at least quarterly. In California, investment reports are no longer required to be submitted to legislative bodies. This requirement is now permissive. If a local government chooses to submit an investment report in accordance with California Government Code Section 53646 to their legislative bodies, they are still required to submit copies to CDIAC for the second and fourth quarter of every calendar year until January 1, 2007. GFOA goes on to list some suggested components of investment reports including listing of securities, gains and losses, average weighted yield to maturity as compared to benchmarks, listing of investment by maturity date, and percentage of the total portfolio which each type of investment represents. Repurchase Agreements: A repurchase agreement is a form of short-term borrowing for dealers in government securities, which are highly valued and thus considered a good source of collateral. The dealer sells the government securities to investors, usually on an overnight basis, and buys them back the following day. Investments in repurchase agreements may be made when the term of the agreement does not exceed one year. • 10 Risk: Two of the most common risks associated with local government portfolio investing IDare credit risk and interest rate risk. Credit risk is the risk to an investor that an issuer will default in the timely payment of interest and/or principal on a security. Interest rate risk is the risk that the market value of securities in the portfolio will fall due to changes in general interest rates. Limiting investment to the safest types of securities, pre -qualifying financial institutions, broker/dealers, and others with which the local agency will do business, and diversifying the number of issuers in an investment portfolio can minimize credit risk. Interest rate risk can be minimized by structuring the portfolio so that investments mature at the same time that cash is required or investing operating funds in highly liquid, shorter -term securities (e.g., U.S. Treasury bills or notes). n iu Safekeeping and Custody: Rules derived to ensure the safety of an investment and within whose control the investment resides. Some examples include third -party safekeeping, developing lists of authorized financial dealers and institutions, developing internal controls, and using a delivery vs. payment standard for transactions. Local agencies should consider requiring securities to be held by third -party custodians, evidenced by timely statements illustrating the balance held by these custodians. Scope: The types of funds that the policy covers (e.g., operating funds, bond proceeds, etc.). In general, investment policies cover short-term operating funds. Longer -term funds such as retirement funds are covered by other policies. The investment of bond funds usually is governed by the bond documents such as the trust indenture. Standards of Care: The degree of care that a reasonably prudent person would exercise in the investment of local agency funds. 11