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HomeMy WebLinkAboutResolution 01-14 to 44-14® RESOLUTION NO. 44-14 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA APPROVING THE COORDINATED GRANT APPLICATIONS FOR BOTH THE COASTAL COMMISSION LCP GRANT PROGRAM AND THE OCEAN PROTECTION COUNCIL LCP SEA LEVEL RISE GRANT PROGRAM THE CITY COUNCIL City of Morro Bay, California WHEREAS, the Budget Act of 20L3 provides an appropriation of SI million for Coastal Commission and S1.2 million for Ocean Protection Council grants in FY 14-15 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 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 LCPs and other Coastal Act authorized plans to address sea -level rise, coastal hazards and other climate change -related impacts; and WHEREAS, local governments responsible for developing and amending LCPs under the California Coastal Act are eligible to apply for both the Coastal Commission LCP Grant Program and the Ocean Protection Council LCP Sea Level Rise Grant Program; and WHEREAS, the goal of the grant programs are 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 sea level rise; and WHEREAS, grant proposals submitted under these grant programs must complete land use plans and/or zoning work to either achieve submittal for certification of a LCP 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 an Amendment to update the LCP in whole: and WHEREAS; the City of Morro Bay, recognizing the problems and issues associated with climate change identified in the application summary, 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 Council has reviewed a summary of the proposed projects for the Coastal Commission and Ocean Protection Council grant applications (Attached as Exhibit A); 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. the State Coastal Conservancy and the Ocean Protection Council in undertaking the project, if approved. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Morro Bav as follows: 1. Staff is directed to submit the grant application package to: a. the California Coastal Commission to provide financial and planning assistance, under authority of the California Coastal Act, in the amount of S147,000 to fund the project more particularly described in the grant application package; and b. the Ocean Protection Council to provide financial and planning assistance, under ® authority of the Ocean Protection Act, in the amount of $270.000 to fund the project more particularly described in the grant application package. 2. The Public Services Director is authorized to execute all necessary applications, contracts, agreements and amendments to implement and cam' out the grant application package and any project authorized by the grant application. PASSED AND ADOPTED by the Morro Bay City Council at a regular meeting held on this 24th day of June, 2014 by the following vote: AYES: Irons, C. Johnson, N. Johnson, Leage, Smukler NOES: None ABSENT: None ABSTAIN: None J IE L. IRONS. Ma <or ATTEST: ® JAMtVBOUCHER, City Clerk EXHIBIT `A' City of Morro Bay 2014 Local Coastal Program Planning Grant Application Summary For Fiscal Year 2013-2014, Governor Brown and the California Legislature approved an augmentation of S1 million to the California Coastal Commission's budget to support local governments responsible for planning under the California Coastal Act (Coastal Act) to develop or update Local Coastal Programs (LCPs). In September; 2013, the City submitted an application for the update of the Morro Bay Local Coastal Program that was not funded. On April 23, 2014 the California Coastal Commission and the Ocean Protection Council announced a second call for grant applications to support local governments in planning for sea - level rise and climate change and completing or updating Local Coastal Programs (LCPs) consistent with the California Coastal Act. Grants will be administered through the two coordinated grant programs as follows: • Coastal Commission LCP Planning Grant Program: $1 million available for updating and certifying LCPs, may include updates to address impacts of climate change and sea -level rise. • Ocean Protection Council LCP Sea -Level Rise Grant Program (in partnership with the Coastal Commission and State Coastal Conservancy): $1.2 million available for work that supports LCP updates, specifically to address sea -level rise, including sea -level rise modeling, vulnerability assessments, and adaptation planning and policy development. ®" This year, to simplify the process, the two programs are offering a joint application where the applicant may apply to one or both programs. Staff is preparing such an application for the 2014-2015 FY, requesting Coastal Commission to provide financial and planning assistance, under authority of the California Coastal Act; in the amount of 5147,000: and requesting the Ocean Protection Council to provide financial and planning assistance, under authority of the Ocean Protection Act, in the amount of $270,000. Background At the March 26, 2013, goal setting workshop, Morro Bay City Council adopted the update of the Local Coastal Program/General Plan for current and future land use needs as a major City goal. The impetus for the adoption of this major goal was derived from the decades -old age of the City's planning documents, feedback from the community. and City staffs efforts to protect and regulate natural resources with outdated technical studies, changing climate science, and potentially inconsistent land uses present on the City's land use map. The City committed to update its Local Coastal Program and General Plan within the next two to three years from the workshop. The grant application presents the City's request for financial assistance to support preparation of the City's Local Coastal Program (LCP). The goal is to merge the LCP into a new, unified ® single LCP/General Plan document that. provides the community's vision and accompanying policy and regulatory framework consistent with state regulations and guidelines. The LCP will include implementing standards that maintain coastal access, adapt to sea level rise, and protect and improve environmentally sensitive habitats and coastal resources, including the Morro Bay National Estuary. There are four key objectives to achieve the City's goal to have an updated LCP that presents current and future coastal land use needs and prepares the City's working waterfront and coastal - dependent industry to thrive in future climate, economic, natural, and social conditions. Key Objectives • Develop an accurate inventory of existing coastal land uses and environmentally sensitive resources. • Use the City's Sea -Level Rise Vulnerability Assessment project as a framework for completing a comprehensive climate change vulnerability assessment. • Engage the community in the planning process, and enhance working relationships with stakeholders to support adoption and certification of the LCP update. • Collaborate with the Coastal Commission as a partner in the LCP/General Plan process. The LCP update is part of a comprehensive LCP/General Plan update process, and complete technical analysis and policy development is in support of the LCP/General Plan update. The joint LCP Update and Sea -Level Rise Grant application includes tasks and deliverables per the draft budget below: Task Total Cost Allocation of total cost among all funding sources Match Funding t1I In -kind Funding tZI LCP Grant Funding SLR Grant Funding (3) Project Management and Grant Administration $ 19,000 $ $ 3,000 $ 8,000 $ 8,000 Intergovernmental Coordination $ 40,000 $ 6,000 $ 12,000 $ 11,000 $ 11,000 Outreach and Engagement $ 73,500 $ 7,500 $ 25,000 $ 25,000 $ 16,000 Opportunities and Constraints $ 196,000 $ 22,000 $ 4,000 $ 25,000 $ 145,000 Evaluation $ _ 88,000 $ $ 2,000 $ 11,000 $ 75,000 Land Use Planning Documents $ 25,500 $ $ 3,500 $ 22,000 Implementing Ordinances $ 32,000 1 $ 1 $ 3,0001 $ 29,000 Final Documents $ 31,000 $ 1 $ 9,0001 $ 16,000 $ 6,000 : _ $ 505,000 .$ 44,000,,.$":44000 $ ___14.7,000 $ 270,066 ® RESOLUTION NO.42-14 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA ADOPTING THE 2014/15 FISCAL YEAR OPERATING BUDGETS THE CITY COUNCIL City of Morro Bay, California NVHEREAS, 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.ftscal years may not be completed by June 30, 2014; 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 City of Morro Bay. California. that: 1. The Fiscal Year 2014/15 Operating Budgets are adopted, 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 3. The City Manager is authorized to transfer appropriations within the adopted budget, so long as the appropriations' changes do not have a significant policy impact, and total appropriations are not exceeded; and 4. City Council approval is required to transfer appropriations between funds, capital projects, or capital outlay items; and 5. City Council authorizes and directs the transfer of balances for capital projects approved in prior fiscal years, but not completed by June 30, 2014, to the Capital Improvement ® Project Fund(s) for the 2014/15 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 requests to fill vacancies on a case - by -case basis: and City Council chooses to continue to defer the remaining 2.5% of the 2009/10 deferral of the management and executive employees' 3% Cost -of -Living Adjustment (COLA); 8. Per Council minute order May 24, 2004, any expenditures, in excess of the assessments received for the Cloisters Assessment District, will be subsidized by the General Fund, without additional request made to City Council; and 9. The City will consider reducing the amount of General Fund support to the Morro Bay Tourism Bureau and other outside funding requests with its 2015/16 budget. PASSED AND ADOPTED, by the City Council of the City of Morro Bay, at a regular meeting thereof held on the 24 h day of June, 2014, by the following vote: AYES: Irons, C. Johnson, Leage. Smukler ® NOES: N. Johnson ABSENT: None ATTEST: JAB BOUCHER, City Clerk [I JA IE L. fRONS, Mavor RESOLUTION NO. 42-14 ® ATTACHMENT Amendments to the 2014/15 Budget Document Funding requests approved for: 1. Housing Trust Fund ($1,000); 2. Senior Nutrition ($5,000); 3. SCORE ($1,000); 4. Morro Bay Tourism Bureau, events (540,000); 5. Chamber of Commerce "Doing Business in Morro Bay" program (S 10,000); and 6. Visitors Center ($100,000) 2 1 RESOLUTION NO.41-14 ® RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA ADOPTING THE NEGATIVE DECLARATION AND APPROVING AN UPDATE TO THE HOUSING ELEMENT OF THE GENERAL PLAN FOR THE 2014-2019 PLANNING PERIOD (APPLICANT: CITY OF MORRO BAY; CASE NO. A00-021) WHEREAS, pursuant to the applicable provisions of the planning and land use law (California Government Code sections 65300 et. seg.), studies were commenced for the purpose of considering the City's need for amending the Housing Element of the General Plan; and WHEREAS. a draft Housing Element, attached as Exhibit 'A' and which has been incorporated by reference, has been prepared for the planning period 2014-2019 and submitted to the City Council for review and approval; and WHEREAS, the draft Housing Element consists of an extensive analysis with supporting appendix, and comprehensively addresses the statutory requirements of Government Code section 65583 relating to housing element requirements: and WHEREAS, City staff has been in consultation with the State of California Department of Housing and Community Development (HCD) regarding compliance with Government Code ® section 65583, including City consideration of HCD guidelines; and WHEREAS, the San Luis Obispo .Council of Governments (SLOCOG) adopted and released a Final Report on its Regional Housing Needs Assessment establishing regional fair share housing allocations for each City in San Luis Obispo County; and WHEREAS, the City submitted drafts of the City's proposed Housing Element to HCD for comment and revision; and WHEREAS. HCD suggested revisions to the draft Housing Element that have been incorporated into the draft Housing Element as submitted to the City Council: and WHEREAS. HCD has made findings pursuant to Government Code subsection 65585(b) stating the draft Housing Element as attached hereto is in substantial compliance with housing element statutory requirements: and WHEREAS, the draft Housing Element has been subject to environmental review under the California Environmental Quality Act (CEQA): and WHEREAS, the Planning Commission held a noticed public hearing at the Morro Bay Veteran's Hall on June 17, 2014, after which the Planning Commission recommended the City Council adopt the Negative Declaration and proposed Housing Element; and WHEREAS, the City Council has conducted a noticed public hearing on June 24, 2014 ® to receive comments and consider the proposed amendment to the Housing Element; Case No. A00-021 on file with the Planning Division of the City. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Morro Bay. California, as follows: SECTION 1. The City Council relied upon the evidence presented at the public hearing in making the determinations set forth in this Resolution and in reaching the conclusions set forth in Sections 2 and 3. SECTION 2. The City Council at the time of the public hearing on the above matter reviewed and considered the proposed Initial Study and Negative Declaration; relating to the Housing Element Amendment (SCH #2014051053) and based on that review finds and determines the following:. a) The public review period for the Negative Declaration began on May 14, 2014 and ended on June 13. 2014; and b) No comments were received from the State Clearinghouse on the proposed Negative Declaration; and c) There is no substantial evidence the proposed project (Housing ® Element Update) will have a significant effect on the environment; and d) Based upon its public review, the City Council has determined there is no substantial evidence the amendment will have a significant impact on the environment; and. e) Based on the foregoing, adopts the Negative Declaration. SECTION 3. The City Council does hereby find, determine and declare as follows: a) The City Council has conducted a noticed public hearing on the proposed amendment to the Housing Element, Case No. A00-021 on file with the Planning Division of the Public Services Department of the City, and an environmental analysis. as hereinabove described; and b) The proposed Housing Element Update is consistent with the goals; policies, and objectives of the City's General Plan/Local Coastal Program in that it encourages a balanced approach to achieving a range of housing opportunities and designates sites noted for residential purposes at densities consistent with the goals of providing housing to households within the full range of incomes. Further, the Housing Element Update is internally consistent with other land use ® goals and policies of the General Plan and Local Coastal Program; and c) The proposed amendment will not conflict with the.provision of the ® Citv's Local Coastal Program, Zoning Ordinance, subdivision regulations or anv applicable specific plan. The proposed Housing Element Update contains goals, policies, and implementation programs related to the development and rehabilitation of housing throughout the City and serves the goals and purposes of the Local Coastal Program, yZoning Ordinance, subdivision regulations and existing specific plans. The proposed Housing Element Update does not conflict with the City's Local Coastal Program, Zoning Ordinance or State Housing Law. El SECTION 4. Based on all the foregoing, the City Council hereby approves and adopts the Housing Element Update, Case No. A00-021. to delete the existing Housing Element and replace the same in its entirely with the attached Housing Element of the General Plan for the 2014-2019 Planning Period as amended by City Council on June 24, 2014 with minor non - substantive corrections by the State of Califomia Department' of Housing and Community Development. SECTION 5. Except as expressly amended herein including Exhibit A or as the context otherwise requires, all the terms and provisions of the existing General Plan/Local Coastal Program shall remain in full force and effect. SECTION 6. The City Clerk shall certify to the adoption of the Resolution and shall forward a copy hereof to the Secretary of the Planning Commission. The Planning Division shall file the Notice of Determination and the Fish and Game Paperwork with the San Luis Obispo County Clerk. PASSED, APPROVED AND ADOPTED by the City of Morro Bay City Council at a regular meeting held on this 24 s day of June, 2014 by the following vote: AYES: Irons, C. Johnson_. N NOES: None ABSENT: None ABSTAIN: None ATTEST: l� JAMI OUCHER, CITY CLERK Johnson, Leage, Smukler JA IE L. IRONS. MAY CITY OF MORRO BAY 2014-2019 HOUSING ELEMENT UPDATE ADOPTION DRAFT, JUNE 2014 �I 1 #A 4 �pfl PREPARED Bt: PMC- 860 WALNUT STREET, SUITE B SAN LUIS OBISPO, CA 93401 PHONE: (805) 250-7970 (866)828-6762 W W W.PMCWORLD.COM • HOUSING ELEMENT UPDATE TABLE OF CONTENTS 1. Introduction...........................................................................................................................1 Content of the Housing Element................................................................................................................I DataSources...................................................................................................................................................2 General Plan/Local Coastal Plan Consistency..........................................................................................3 PublicParticipation........................................................................................................................................3 CoastalZone Requirement.........................................................................................................................11 2. Housing Needs Assessment.........................................................................................................13 Population Characteristics..........................................................................................................................13 HouseholdCharacteristics..........................................................................................................................19 HousingStock Characteristics....................................................................................................................21 HouseholdIncome ................................................ .............................................................. ....................... 28 • Housing Costs and Affordability...............................................................................................................29 SpecialNeeds Groups.................................................................................................................................34 3. Adequate Sites Inventory .............................................................................................................43 Infrastructure................................................................................................................................................51 4. Constraints ........... ........................................................ ................................................................. 53 GovernmentalConstraints.........................................................................................................................53 Non -Governmental Constraints................................................................................................................74 5. Energy Conservation Opportunities........................................................................................... 77 6. Review of Previous Housing Element.......................................................................................83 7. Objectives, Policies, and Programs...........................................................................................115 QuantifiedObjectives Summary ................................................................................................_........... 134 • CITY OF MORRO BAY JUNE 2014 HOUSING ELEMENT UPDATE LIST OF TABLES Table 1: Coastal Zone Affordable Housing Documentation................................................................12 Table 2: San Luis Obispo County Population Change, 2000-2013.......................................................13 Table3: Population Growth..................................................................................................................14 Table 4: Age Characteristics, 2000-2010...............................................................................................15 Table 5: Age of Householder by Tenure..............................................................................................16 Table6: Employment by Industry Type, 2010......................................................................................17 Table 7: San Luis Obispo -Paso Robles Metropolitan Statistical Area Projections of Employment .... 18 Table8: Travel Time to Work...............................................................................................................19 Table 9: Households Trends, 2000-2010..............................................................................................19 Table 10: Tenure by Persons per Room, 2011...................................................................................... 20 Table 11: Tenure of Occupied Housing Units, 2010............................................................................ 20 • Table 12: Household Size by Tenure, 2011...........................................................................................21 Table 13: Increase in Housing Units, 2000 and 2013............................................................................21 Table 14: Housing Units by Occupancy Status, 2011.......................................................................... 22 Table 15: Occupied Housing Units by Type, 2013.............................................................................. 23 Table 16: Housing Units by Age, 2000-2008........................................................................................ 24 Table 17: Housing Condition Survey Criteria...................................................................................... 26 Table 18: Housing Conditions in Target Income Groups, Morro Bay, 2004...................................... 27 Table 19: Maximum Household Income Level by Household Size, 2014........................................... 28 Table 20: Household Income, 2012..................................................................................................... 29 Table 21: Annual Median Sales Price, 2012-2013................................................................................. 30 Table 22: Residential Rental Prices, Morro Bay, 2014......................................................................... 30 Table 23: Housing Affordability by Income Level.............................................................................. 32 JUNE 2014 CITY OF MORRO BAY • u • HOUSING ELEMENT UPDATE Table 24: Total Households Overpaying by Income, 2011........................................ ...„..................... 33 Table 25: Housing Problems for All Households, 2000.......................................... ........... _................ 34 Table 26: Persons with a Disabilitv by Disability Type, 2000.................... „............... .... .................... 35 Table 27: Persons with a Disability by Employment Status ..................................................... .......... 35 Table 28: Developmentally Disabled Residents by Age ............................................. ........... „............ 37 Table 29: Developmentally Disabled Residents by Residence Type ........................ ................ „........ 37 Table 30: Senior Residents, 2000-2010.......................................................................„........................38 Table 31: Senior -Headed Households by Tenure, 2011........................................... „... „..................... 38 Table 32: Female -Headed Households............................................................................................... 40 Table 33: Homelessness, San Luis Obispo County..._ .... .................. _................................................ 40 Table 34: Home City by Shelter Population, 2013... ...„....................................................................... 40 • Table 35: Inventory of Assisted Units.................................................................................................. 42 Table 36: Morro Bay Regional Housing Needs Allocation Progress..................................................43 Table 37: Comparison of Regional Growth Need and Residential Sites ............................................. 45 Table38: Land Inventory ..................................................................................................................... 46 Table 39: Zoning Districts That Allow Residential Uses.................................................................... 54 Table 40: Residential Zoning Criteria................................................................................................. 58 Table 41: Housing Types Permittcd by Zone...................................................................................... 65 Table 42: Typical Processing Procedures by Project Type................................................................. 70 Table 43: Proportion of Fee in Overall Development Cost for a Typical Residential Development.. 73 Table44: Interest Rates....................................................................................................................... 76 Table 45: Review of 2009 Housing Element........................................................................................ 83 Table 46: Quantified Objectives Summary (2009-2014).....................................................................134 • CITY OF MORRO BAY JUNE 2014 iii HOUSING ELEMENT UPDATE LIST OF FIGURES Figure 1: Survey Participant Prioritization of Housing Needs by Special Needs Group ...................... 9 Figure 2: Census Block Groups........................................................................................................... 25 Figure3: Land Inventory ..................................................................................................................... 49 Appendix A: Master Fee Schedule JUNE 2014 CITY OF MORRO BAY iv C� • • HOUSING ELEMENT UPDATE 0 1. INTRODUCTION The Housing Element is one of the seven State -mandated elements of the City's General Plan. The Housing Element is updated every five years to identify recent demographic and employment trends that may affect existing and future housing demand and supply. The Housing Element serves as a tool to identify and provide for the housing needs of the community. The Housing Element addresses the City's ability to meet the regional housing needs as determined by the State of California. The City has developed a set of objectives and specific policies and programs for the production of housing to meet the needs of all Morro Bay citizens. A Housing Element is required by California law to establish policies and programs that will support the provision of an adequate housing supply for citizens of all income levels. The intent of state law is to ensure that all jurisdictions in the state provide adequate housing to all members of the community. While the State reviews the Housing Element to ensure compliance with housing law, each jurisdiction must identify its particular issues to successfully address its housing needs. This document provides a detailed assessment of the existing housing stock in Morro Bay, including data on housing types, physical condition, cost, and availability. The report also examines special housing needs populations such as the elderly, persons with disabilities, farmworkers, and the homeless. It also identifies opportunities for energy conservation when housing is constructed or • remodeled. The report assesses the effectiveness of past housing programs. The availability and capactty of land and public services for housing development are examined along with factors that may constrain the production of affordable housing • An understanding of existing housing conditions in the city is necessary as a basis for new Housing Element policies to guide the use and development of housing that will be adequate and affordable. In addition to this focused information, throughout the document, comparisons to San Luis Obispo County demographics and statistics will be used to identify possible issues or pertinent relationships. This assessment is representative of the larger area and informative of the trends the entire county is experiencing, helping to gain a better understanding of the city in a regional context. State law is more specific about the content of the Housing Element than any other portion of the General Plan. That specificity is reflected in the detailed demographics and other data contained herein. The Housing Element is also the only part of the General Plan that is subject to mandatory deadlines for periodic updates. Except for the Local Coastal Plan, it is the only element that is subject to review and "certification" by the State. CONTENT OF THE HOUSING ELEMENT The Housing Element contains the following information as required by state law: • Analysis of population and employment trends and documentation of projections and a quantification of the locality's existing and projected housing needs for all income levels. CITY OF MORRO BAY JUNE 2014 HOUSING ELEMENT UPDATE • Analysis of any special housing needs populations, such as those with disabilities, the elderly, large families, farmworkers, homeless persons, and single -parent households. • Analysis and documentation of household characteristics including level of payment compared to ability to pay, and housing characteristics including the extent of overcrowding and an estimate of housing stock conditions. • Analysis of potential and actual governmental constraints on the maintenance, improvement, or development of housing for all income levels. These constraints include land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, and local processing and permit procedures. • Analysis of potential and actual non -governmental constraints on the maintenance, improvement, or development of housing for all income levels, including the availability of financing, the price of land, and the cost of construction. • Site -specific inventory of land suitable for residential development, including vacant and underutilized sites, and an analysis of the relationship of zoning, public facilities, and City services to these sites. Analysis of opportunities for energy conservation with respect to residential development. • • Analysis of the existing and projected needs including the locality's share of the regional housing need in accordance with Government Code Section 65584. The California Department of Housing and Community Development (HCD) developed a data packet for jurisdictions in San Luis Obispo County that contains much of the information required for the Housing Needs Assessment of this Housing Element and is the primary source of data for this document. Where additional information is required, the US Census, which is completed every 10 years, is the preferred data source, as it provides the most reliable and in-depth data for demographic characteristics of a locality. This report uses the 2010 US Census for current information and the 2000 US Census to assess changes since the year 2000. The California Department of Finance (DOF) is another source of data that is more current than the Census. However, the DOF does not provide the depth of information that can be found in the 2010 US Census. Whenever possible, the San Luis Obispo County data packet, DOF data, and other local sources were used in the Housing Needs Assessment in order to provide the most current profile of the community. The 2010 US Census did not collect information in several categories that are required for the Housing Needs Assessment. Where this is the case, historical DOF data is used. Where DOF data is not available, information from the 2000 US Census is retained. In cases where this is not feasible or C 1 JUNE 2014 CITY OF MORRO BAY HOUSING ELEMENT UPDATE useful, this assessment references US Census Bureau American Community Survey (ACS) data. The ACS provides estimates of numerous housing -related indictors based on samples averaged over a five-year period. Whereas the US Census provides complete counts of various demographic indicators, the ACS provides estimates based on statistically significant samples. Due to the small size of the sample taken in Morro Bay, the estimates reported by the ACS have large margins of error. Where ACS data is used, the numbers should not be interpreted as absolute fact, but rather as a tool to illustrate general proportion or scale. Information on available sites and services for housing comes from numerous public agencies. Information on constraints on housing production and past and current housing efforts in Morro Bay comes from City staff, other public agencies, and some private sources. The City's Land Use Element and Local Coastal Plan currently designate the sites noted in this Housing Element for residential purposes at densities consistent with the goals of providing housing to households within the full range of incomes. The policies in this Housing Element will guide that process, ensuring internal consistency among the elements. Due to the passage of Assembly Bill (AB) 162 relating to flood protection in 2007, the City may be required to amend the Safety and Conservation elements of the General Plan. If amendments are needed, the Housing Element will • be amended to be consistent with the Safety and Conservation elements. is State law requires that "the local government shall make a diligent effort to achieve public participation of all economic segments of the community in the development of the housing element ..." (Government Code Section 65583). In order to satisfy this requirement, the City conducted a series of community meetings and public hearings to receive community input concerning Morro Bay's housing goals, policies, and programs. (Descriptions of these meetings are listed below.) In addition, the Housing Element was posted on the City's website during the element's 60-day public review period to ensure it was available to all community members. The public workshop on March 12, 2014 was noticed in the newspaper as well as on the City's website. In an effort to reach all segments of the community, the City mailed public hearing notices and the Notice of Availability (NOA) to the agencies and groups fisted below. Additionally, all public meeting and hearing were broadcast on the City's governmental access channel. Recordings of meetings were broadcast at several times after the initial meeting for those who weren't available to watch live. • SLO Green Build • US Green Building Council — C4 Chapter CITY OF NtORRO BAY DUNE 2014 3 HOUSING ELEMENT UPDATE • Northern Chumash Tribal Council • San Luis Obispo Housing Trust Fund • Salinan Tribe of Monterey & San Luis Obispo Counties • SLO County Chumash Council • People's Self -Help Housing Corporation • Habitat for Humanity • City of Morro Bay Planning Commission and City Council Public Workshop, March 12, 2014 • The City held a public workshop with the Planning Commission to solicit input from city residents on March 12, 2014. The format for this meeting was a presentation with an overview of the 5' cycle Housing Element update process and solicited input from the Planning Commissioners and meeting attendees on housing needs in Mono Bay. The following is a listing of the comments received from public input: • • There are many older residents and they can be picky. This can make younger people and families feel unwelcome. • Let people know about housing opportunities in the city • More young people would contribute to the vitality of the city. • The rehabilitation program that the City used to administer didn't work for many households because they didn't have equity in their home and that was needed to qualify for the program. • Challenging for employers to recruit and retain the workforce they need. • Economic Vitality Corporation's Building and Designing Cluster put out countywide workforce housing survey. The purpose was to hear from employers and employees about housing needs and preferences. • 87 percent of employers say workforce housing is needed. • 88 percent of employees said it was very difficult to find housing. JUNE 2014 CITY OF MORRO BAY C� 4 • HOUSING ELEMENT UPDATE • City should define workforce housing. Suggest using the County's definition of 120 to 160 percent of area median income (AMI). • Infrastructure costs are a significant constraint to building housing affordable to the workforce categories. City could pursue options for infrastructure financing. The following is a list of the comments received from the Planning Commission: • Seems Morro Bay fell short on accommodating the units the City committed to in the previous Housing Element. It would be good to know what -the results were. • The city definitely needs housing. We have homeless and older folks that need additional care. • There would be of a demographic shift looking back 20 or more years as opposed to 2000 to 2010. • The indices on the percentages of people in the various age groups in the city didn't change in those 10 years, but the people involved and replacement populations have changed quite a bit. • As a demographically stable community, how do we find the resources to be able to push along • or get some of these programs to completion, especially with the state cutting back? is • Morro Bay's demographics are atypical. Any indication why that's the case and why that continues to be the case? If one of the main factors that keeps Morro Bay's population older is retirement, then housing needs are different than in other places. • The price of land here puts the city out of affordability range. • Do we get credit for granny or secondary, units? • There are many interesting issues that have led Morro Bay to where it is today; the fishing collapse and power plant changes removed middle -income family incomes. On the other hand, there is the significant group of retirees. • The amount of agriculture in the Mono Creek area is changing drastically. There is more land in irrigation. Are there migrant farmworker issues that we need to address? • It should also be noted that because of Morro Bay's hotels and tourist -serving amenities, our 10,000-person resident population is on a relatively small footprint. CITY OF MORRO BAY JUNE 2014 5 HOUSING ELEMENT UPDATE • It seems like one of the groups that we aren't reaching is the young families. Although numbers stayed constant from 2000 to 2010, we're not seeing kids up and down streets like they used to. How can the problem be addressed? Can telecommuting or other options be employed to make Morro Bay more attractive to that type of population? • Should consider what the community wants looking forward for, instead of just looking back. • Consider city broadband ordinance for telecommuting. Would that be a goal that could be in the Housing Element? • There is little opportunity for young families to purchase for -sale housing. • According to the 2009 Housing Element, 83 percent of housing stock is 25 years or older, and more of it is 50 years or older. How do we address that in the Housing Element? How do we allow for upgrades/remodeling? The City has had a rehabilitation program in the past; there have also been some countywide efforts. • • Can we start to look at where eiristing zoning precludes housing? One area only allows houses by themselves, other areas allow multi -family. It would be helpful to allow residential uses on upper floors in the Embarcadero area. It could make that area livelier at night and provide options for • renters. • The idea of transitional and emergency shelters is good. The City should support it. People who are in need don't necessarily have mobility. The City doesn't need a large facility, but it is a need in our community. We see homeless people on the street. Resources for people in crisis need to be in the community and not elsewhere. • All of these issues are related. How we look at zoning inhibits certain groups/snakes things economically viable. The city doesn't have many parcels. We have to be creative to make things work. To accommodate more housing and more types of housing, the City either needs to increase density or find other opportunities where residential uses aren't currently allowed. • The City should also look at the needs of recruited businesses. • Addressing workforce housing would address a lot of the topics that have been brought up. • Rehabilitation is a great idea. It fits well into the greenhouse gas reduction program that the City has talked about. On the other hand, older houses are often the most affordable. It is important not to reduce affordable housing stock due to rehabilitation efforts. 11 JUNE 2014 CITY OF MORRO BAY • HOUSING ELEMENT UPDATE Stakeholder Roundtable Discussion, March 18, 2014 The City held a roundtable discussion with stakeholders on March 18, 2014. Over 30 housing stakeholders were invited to attend via email. The format for this meeting was a small informal group discussion with a set of questions to elicit discussion. Five stakeholders, one City staff person and two members of the consultant team attended the meeting. The five attendees included real estate agents, a for -profit developer, a representative of People's Self -Help Housing (PSHH), a nonprofit affordable housing developer; and a Morro Bay resident. The following input was received from the stakeholders: • Most seniors live independently as long as they can. • Many of the remaining vacant residential lots have significant environmental constraints including slopes and being located in or partially in environmentally sensitive habitat (ESH) areas. • People's Self -Help Housing builds affordable sweat equity ownership affordable rental housing on the Central Coast. o They usually require a local funding match of approximately 20 percent. • o Many of their projects are funded through tax credit financing. • o Funds from a community's inclusionary housing in -lieu fee fund can be used towards the 20 percent match. o PSHH looks for opportunities to build on surplus land owned by local jurisdictions as the up front costs for the land can be much less under this scenario. o The recently passed Farm Bill did not alter Morro Bay's USDA status in terms of the opportunity to pursue USDA funding and Mono Bay remains in the rural category. • It is important to keep lenders informed of funding opporturaties. For example the County's fast -time homebuyer program. • Parking exceptions can be granted in Morro Bay. • Compact development and infill should be promoted in Morro Bay Online Survey The City prepared and hosted an online survey on its website. The survey was designed to be accessible to stakeholders and members of the general public and was available between March 18, CITY OF MORRO BAY JUNE 2014 7 HOUSING ELEMENT UPDATE 2014, and April 1, 2014. The survey was advertised to the general public via the City's website and distributed to key stakeholders via e-mail. Thirty one Morro Bay residents completed the survey, providing feedback on the availability of housing, factors that influence housing decisions, and the perceived level of importance of special needs groups in the City. Approximately 90 percent of survey participants own their own home (compared with the city's 53 percent homeownership rate, see Table 11), which suggests that responses may be skewed to reflect the views of homeowners. The survey results are presented here for informational purposes and provide the best available information about the respondents' housing related opinions. Over 60 percent of participants reported that renting and purchasing safe, decent, and affordable housing in Morro Bay is either somewhat difficult or very difficult for the average person or family. Nearly 75 percent of respondents identified land and construction costs as severe constraints to accessing quality housing. Other constraints include insufficient income, which was identified as a severe constraint by 67 percent of respondents, and development fees, which were identified as a severe constraint by 40 percent of respondents. L� As illustrated in Figure 1, respondents identified seniors and lower -income families as the highest priority special needs groups in the City. The City's current housing may become more accessible to these special needs groups through Housing Element policies such as Policy H-18 (Senior Housing), • Policy H-6.a (General Affordability), and Policy H-5 (Housing Costs). Respondents also identified single -parent households, the homeless, disabled persons, and persons with developmental disabilities as general priorities. 11 JUNE 2014 CITY OF MORRO BAY • • HOUSING ELEMENT UPDATE Youth Aging Out of Foster Care Single -Parent Households Seniors (65 and older) Lower Income (earning less than $60,300 annually for a household.. Large Families (5 or more persons) Homeless Persons with Developmental Disabilities Disabled Persons 0 5 10 15 20 25 30 0 Not a Housing Need ■ Low Priority ■ Medium Priority E. High Priority Public Hearing, April 15, 2014 The City presented the public renew draft Housing Element at the Planning Commission meeting on April 15, 2014. The Planning Commission recommended that the draft be amended to include seven additional programs and submitted to HCD for review. The additional programs are listed below. • Program H-1.4 call for the City to inventory vacant and underutilized lots in and adjacent to the downtown business district and identify areas to consider for rezoning to high density residential or mixed use and modify the City's zoning map as appropriate. • Program H-1.5 states that the City will consider establishing minimum densities in the R-3, R-4 and MCR zoning districts. • Program H-1.6 call for the City to explore the option of expanding the number of liveaboard slips in the City. • Program H-6.6 calls for the City to consider amending the Community Housing Ordinance to require that housing units developed under the ordinance be restricted for those with moderate or lower incomes. CITY OF MORRO BAY JUNE 2014 9 HOUSING ELEMENT UPDATE Program H-22.4 states that the City will consider adopting an ordinance requiring active or passive solar features or other renewable energy generating systems in all new residential construction. Program H-22.5 directs the City to consider establishing a rotating fund providing low - interest loans for energy upgrades. • Program H-22.6 call on the City to consider adopting an ordinance that requires as a condition of approval for a permit to expand or modify a residential dwelling, that the entire residence be brought into compliance with Title 24 of the California Code of Regulations. Everyone on the mailing list received notice of these meetings to encourage participation in the hearings and to provide input on the draft Housing Element. No members of the public provided comments. Public Hearing, xxxxxxx [to be completed after public outreach is complete] Other Input Received The City received a comment letter from the Homeless Services Oversight Council (HSOC) on March 11, 2014. The letter included information about the homeless needs in San Luis Obispo County and formal recommendations for the Morro Bay Housing Element update. The following needs and statistics were mentioned: San Luis Obispo County's has a severe need for extremely low, very low and low income rental housing. Overpayment is a serious issue for these income categories. • San Luis Obispo County has a higher rate of homelessness than San Francisco, New York City and Los Angeles County. • 90 percent of the homeless population in San Luis Obispo is unsheltered which is the fourth highest percentage of unsheltered homeless of the 415 areas surveyed. The following specific recommendations were provided: • Adjust development impact fees to be lower for smaller units and higher for larger units. • Allow and encourage SROs (studio apartments as small as 150 square feet), boarding houses and rooming houses and rooming houses in all areas that allow multi -family housing. • Allow and encourage manufactured homes and park models to be used as second units. JUNE 2014 CITY OF MORRO BAY • • • 10 • HOUSING ELEMENT UPDATE • Consider floor area ratios, rather than number of dwelling units, when setting density limits for affordable housing. • Allow more and larger group homes and residential care facilities to be built and operated in all zones where residential uses are allowed. • Encourage more apartments by allowing higher densities, removing barriers that limit achieving maximum densities and streamlining the approval process. A resident of North Morro Bay and realtor provided comments via phone. The resident stated that the vacant properties zoned R-4 should be used or encouraged to be used for affordable housing. They also referenced a City owned lot at the corner of San Jacinto and Coral. Communities located within coastal zones are required to review coastal zone affordable housing obligations including the preservation of existing occupied units affordable to low- or moderate - income households and where feasible include low- and moderate -income housing in new developments. • To assist a locality's determination of whether the affordable housing stock in the coastal zone is being protected and provided as required by Section 65590, the element must contain data on the new construction, demolition, conversion, and replacement of housing units for low- and moderate -income households within the coastal zone, including the following. 1. The number of new housing units approved for construction within the coastal zone (after January 1982). E 2. The number of housing units for persons and families of low and moderate income required to be provided in new housing developments either within or within 3 miles of the coastal zone. 3. The number of existing residential dwelling units occupied by low- and moderate -income households required either within or within 3 miles of the coastal zone that have been authorized to be demolished or converted. 4. The number of residential dwelling units for low- and moderate -income persons and families that have been required for replacement (of those units being demolished or converted) within or within 3 miles of the coastal zone, and designate the location of the replacement units in the housing element review for coastal zones. The entirety of the city's housing stock is located within three miles of its coastal zone and includes a total of 126 affordable housing units; all of these units were constructed after 1982. These units provide housing for low- and moderate -income households. No units have been demolished and CITY OF MORRO BAY JUNE 2014 11 HOUSING ELEMENT UPDATE therefore none have needed replacement. Table 1 presents coastal zone affordable housing documentation. New housing units approved for construction within the coastal zone since Approximately January 19821 2,000 Housing units for persons and families of low- or moderate -income required to be provided in new housing developments within the coastal zone, or 126 within 3 miles2 Existing residential dwelling units occupied by low- and moderate -income households required either within the coastal zone or within 3 miles of the 0 coastal zone that have been authorized to be demolished or converted since January 19823 Residential dwelling units for low- and moderate -income households that 0 have been required for replacement4 'Estimate based on 2000 Census and City building permits issued between 2009 and 2014. 2Total affordable housing units already built or approved based on affordable housing within 3 miles of the Morro Bay coastal zone. 3No required affordable housing has been demolished or converted. • 'Since 2009, no low- and/or moderate -income units in the coastal zone have been required for replacement. JUNE 2014 CITY OF MORRO BAY C1 RA 11 • HOUSING ELEMENT UPDATE 2. HOUSING NEEDS ASSESSMENT The Housing Needs :Assessment is the section of the Housing Element that presents the characteristics of the city's population and housing stock as a means of better understanding the nature and extent of unmet housing needs. POPULATION CHARACTERISTICS The type and amount of housing needed in a community is largely determined by population growth and demographic characteristics such as age, household size, occupation, and income. According to the DOF, the population of Morro Bay decreased slightly from 10,350 in 2000 to 10,234 in 2010 (Table 2). The DOF estimated the city's 2013 population to be 10,317 persons, which represents an annual growth rate of less than I percent since 2010. The city's growth rate is consistent with other coastal communities in the county; Grover Beach and Pismo Beach each had stagnant or declining populations from 2000 to 2013. Jurisdiction 000 2010 Percentage 2013 Percentage Population Population Change 2000-2010 Population Change 2010-2013 Morro Bay 10,350 10,234 -1% 10,317 1% Arroyo Grande 15,851 17,252 9% 17,395 1% Atascadem 26,411 28,310 7% 28,687 1% El Paso de Robles 24,297 29,793 23% 30,504 2% Grover Beach 13,067 13,156 1% 13,211 <1% Pismo Beach 8,551 7,655 -100/0 7,717 1% San Luis Obispo 44,179 45,119 2% 45,541 1% Unincorporated 103,975 118,118 14% 118,805 1% Source: DOF 2012: E-8 Historical Population and Housing Estimates for Cities, Counties, and the State, 2000-2010, DOF 2013 (San Luis Obispo County Housing Element Data Profiles 2013) CITY OF MORRO BAY JUNE 2014 13 HOUSING ELEMENT UPDATE The San Luis Obispo Council of Governments (SLOCOG) published a Long Range Sodo- Economic Projections Report in August 2011, updating the 2009 projections. Population, households, and jobs were projected through 2040 for low, mid, and high scenarios. Table 3 reports the "mid" growth scenario of a 13 percent increase in population from 10,073 residents in 2000 to 11,831 residents in 2040. 2010 Jurisdiction Morro Bay Unincorporated San Luis Obispo 10,073 104,324 2015 10,152 107,452 2020 10,244 113,789 2025 10,482 118,982 2630 10,778 125,467 2035 11,078 132,023 2040 11,381 138,644 Percentage Change 2010-2040 13% 33% Source: SLOCOGprojections, August 2011 Each age group has distinct lifestyles, family type and size, income levels, and housing preferences. As people move through each stage of life, housing needs and preferences also change. As a result, evaluating the age characteristics and trends of a community is important in determining existing and future housing needs. Table 4 provides the age characteristics of Morro Bay's residents according to the 2000 and 2010 US Census. There was little change between 2000 and 2010, with the exception of a small decrease in persons ages 25-44 and an increase in persons ages 45-64. Despite these changes, the population in Motto Bay remains older than in most cities; over 50 percent of residents are 45 years old or older. JUNE 2014 CITY OF MORRO BAY is • 14 • • • HOUSING ELEMENT UPDATE a Age Group Under 5 years 000 Number 378 Percentage 4% 2010 Number 447 Percentage 4% 17 years 1,188 12% 1,083 11% 18-24 years 873 8% 815 8% 5-44 2,627 25% 2,264 22% 5-64 2,778 27% 3,200 31% 5+ 2,506 24% 2,425 24% otal 10,350 1009% 10,234 1000/0 Source: US Census 2000, 2010 The age of householder is another way to measure age in the city. As shown in Table 5, owner - occupied households tend to have older householders, while renter -occupied households tend to have younger householders. CITY OF MORRO BAY JUNE 2014 IS HOUSING ELEMENT UPDATE Age of Householder Owner occupied Numbur 2,746 0 39 pereentage 55% 0% 1% Householder 15 to 24 years Householder 25 to 34 years Householder 35 to 44 years 214 4% Householder 45 to 54 years 477 100/6 Householder 55 to 59 years 401 8% Householder 60 to 64 years 384 8% Householder 65 to 74 years 656 13% Householder 75 to 84 years 413 8% Householder 85 years and over 162 3% Renter occupied 2,256 45% Householder 15 to 24 years 266 5% Householder 25 to 34 years 462 9% Householder 35 to 44 years 354 7% Householder 45 to 54 years 344 7% Householder 55 to 59 years 330 7% Householder 60 to 64 years 200 4% Householder 65 to 74 years 204 4% Householder 75 to 84 years 80 2% Householder 85 years and over 16 0% Total 5,002 100% Source: ACS 2007-2011 Estimates (HCD SLO County Housing Element Update Data Profile) Employment has an important impact on housing needs. Different jobs and associated income levels determine the type and size of housing a household can afford. Employment growth in the region typically increases housing demand. The California Employment Development Department (EDD) estimates that as of January 2014, 5,500 Morro Bay residents were in the labor force, with 4.9 percent unemployment, compared to a countywide unemployment rate of 6.2 percent. JUNE 2014 CITY OF MORRO BAY • • 16 • HOUSING ELEMENT UPDATE According to the ACS 2007-2011 Five Year Estimates, jobs held by Morro Bay residents were primarily concentrated in the education, health and social services sectors (21 percent). Table 6 identifies employment by industry type for Mono Bay and San Luis Obispo County. Occupation Number Agriculture, forestry, fishing and hunting, and mining 96 Bay Percentage 2% ObispoMorro San Luis Number 21848 Percentage 6% Construction 300 6% 4,369 9% Manufacturing 302 6% 3,118 6% Wholesale trade 43 1% 1,154 2% Retail trade 772 15% 5,477 11% Transportation and warehousing, and utilities 128 3% 2,194 4% Information 190 4% 744 1% Finance and insurance, and real estate and rental and leasing 300 6% 2,575 5% Professional, scientific, and management, and administrative and waste management services 376 8% 5,817 12% Educational services, and health care and social assistance 1,046 21% 10,835 22% Arts, entertainment, and recreation, and accommodation and food services 911 18% 5,499 11% Other services, except public administration 166 3% 2,721 6% Public administration 371 7% 1 2,501 5% Civilian employed population 16 years and over 5,001 100% 1 49,852 100% Source: ACS 2007-2011 Five -Year Estimates (HCD San Luis Obispo County Housing Element Update Profiles) The EDD produces an Occupational Employment and Wage Data spreadsheet by metropolitan statistical area (MSA) yearly. Table 7 shows employment projections from 2010 through 2020 as related to job growth for the San Luis Obispo -Paso Robles Metropolitan Statistical Area. During the next seven years, the San Luis Obispo -Paso Robles MSA expects new employment to be concentrated in a variety of occupations. When comparing these annual incomes to the median income in 2014 for a family of four ($77,000), only two occupational groups are above this median income (electrical power -line installers and repairers and software developers). CITY OF MORRO BAY JUNE 2014 17 HOUSING ELEMENT UPDATE Of these ten occupational groups, the highest annual salary falls under the electrical power -line installers and repairers occupation at $92,435. The lowest annual salary is within the nonfarm animal caretaker occupations at$21,683. Median Median Estimated Occupation Hourly Annual Employment Percentage Change Wage Salary 2010 2020 Electrical Power -Line Installers and Repairers $44.44 $92,435 190 300 58% Home Health Aides $10.49 $21,819 460 700 52% Cost Estimators $27.72 $57,657 180 270 50% Market Research Analysts and Marketing Specialists $26.44 $54,995 180 270 500/0 Veterinary Technologists and Technicians $14.63 $30,430 200 300 50% Nonfarm Animal Caretakers $10.43 $21,694 200 290 45% Operating Engineers and Other Construction Equipment Operators $33.80 $70,304 300 430 43% Software Developers, Systems Software $34.32 $71,385 120 170 420 Insurance Sales Agents $31.34 $65,187 170 240 41% Construction Laborers $23.90 1 $49,712 730 1,030 41% Source: EDD 2014 Note: Annual salary is calculated by multiplying hourly wages by 2,080. Commute distance is an important factor in housing availability and affordability and is also an indicator of jobs/housing balance. Communities with extended commute distances generally have a poor jobs/housing balance, while those with short average commutes tend to have a strong jobs/housing balance. The burden of the additional costs associated with extended commuting disproportionately affects lower -income households who must spend a larger portion of their overall income on fuel. This in turn affects a household's ability to occupy decent housing without being overburdened by cost. Table 8 indicates that the vast majority of Morro Bay residents travel less than 30 minutes from home to work. This figure indicates that many of the jobs are within 20 miles of the city and that there is a strong jobs/housing balance, meaning that the available jobs are within relatively dose distance to the employee's' places of residence. JUNE 2014 CITY OF MORRO BAY • .I L 11 1s • HOUSING ELEMENT UPDATE Less than 30 minutes 75 30 to 59 minutes 23% 60 or more minutes 2% Total 1000/0 Source: ACS 2008-2012 Five -Year Estimates Household Characteristics According to the Department of Finance and as shown in Table 9, there were 4,844 households in the City of Morro Bay in 2010. This represents a 3 percent decrease, or 142 households, from 4,986 households in 2000. -• - _ _ i, w rercentage Source: US Census 2010 (HCD SLO County Housing Element Data Pro)Ue) The US Census Bureau defines overcrowding as occurring when a housing unit is occupied by more than the equivalent of one person per room (not including kitchens and bathrooms). A typical home might have three bedrooms, a living room, and a dining room, for a total of five rooms. If more than five people were living in the home, it would be considered by the Census Bureau to be overcrowded- Because some households require less "space" per person, there is some question on whether units with slightly more than one person per room really have an overcrowding problem. In most cases, units with more than 1.01 persons per room are overcrowded. Units with more than 1.50 persons per room are considered highly overcrowded and should be recognized as a significant housing problem. Morro Bay has a low incidence of overcrowding. Less than 4 percent of all the occupied housing in the city contains more than one person per room. A total of 84 units are considered to be highly overcrowded, having more than 1.50 persons per room. Of these, 10 are owner -occupied units and 74 are renter -occupied units. Table 10 shows the persons per room for homeowners and renters in Mono Bay. CITY OF MORRO BAY JUNE 2014 19 HOUSING ELEMENT UPDATE HouseholdsPersons per Room Morro Bay Owner -Occupied Units 1.00 or less 2,736 99% 1.01 to 1.50 0 0% 1.51 or more 10 <1% Total 2,746 1001yo Renter -Occupied Units 1.00 or less 2,109 94% 1.01 to 1.50 73 3% 1.51 or more 74 3% Total 2,256 100% Source: ACS 2007-2011 Five -Year Estimates (HCD SLO County Housing Element Update Profiles) Tenure refers to whether a unit is owner -occupied or renter -occupied. Table 11 shows that just over half of the housing units in Morro Bay are owner -occupied. Source: US Census 2010 (HCD SLO County Housing Element Update Data Profile) Household size by tenure is shown in Table 12. In 2011, the majority of owner -occupied households were inhabited by two to four residents. Most renter -occupied households were also inhabited by two to four residents. JUNE 2014 CITY OF MORRO BAY • 20. r� F-IL • HOUSING ELEMENT UPDATE Owner Number 2,746 Percentage 55% Householder living alone 946 34% Households 2-4 persons 1,761 64% Large households 5+ persons 39 1% Rental 2,256 45% Householder living alone 882 39% Households 2-4 persons 1,300 58% Large households 5+ persons 74 3% Total 5,002 Total householders living alone 1,828 37% Households 2-4 persons 3,061 61% Large households 5+ persons 113 2% Source: 2007-2011 ACS Five -Year Averages (HCD SLO County Housing Element Update Data Profile) The existing housing stock in Morro Bay can be described by a number of characteristics, including the number of units, type (single-family, mobile home, apartment, etc.), their tenure (owner - occupied vs. rental), the number of people living in the unit (household size), and unit size. Later sections of this chapter discuss cost and the physical condition of homes in the city. The 2000 Census reported a total of 6,286 housing units in the City of Morro Bay, and the California Department of Finance reported a total of 6,356 housing units in 2013. Table 13 shows the percentage increase in the number of housing units in Morro Bay between 2000 and 2013. Source: US Census 2000, DOF 2013 (HCD SLO County Housing Element Update Data Profile) CITY OF MORRO BAY JUNE 2014 21 HOUSING ELEMENT UPDATE A vacancy rate measures the overall housing availability in a community and is often a good indicator of how efficiently for -sale and rental housing units are meeting the current demand for housing. A vacancy rate of 5 percent for rental housing and 2 percent for ownership housing is generally considered healthy and suggests that there is a balance between the demand and supply of housing. A lower vacancy rate may indicate that households are having difficulty in finding housing that is affordable, leading to overcrowding or households having to pay more than they can afford. According to the 2007-2011 ACS Five -Year Estimates, there were a total of 1,476 vacant units recorded in Morro Bay. The vacancy rate for the city was 20 percent in 2000 and slightly higher in 2011 at 23 percent. With the exception of Pismo Beach and Grover Beach, this rate is substantially higher than many other cities in the county, primarily because of the large number of vacation homes in Morro Bay. As noted in Table 14, there were a total of 1,476 vacant units recorded in Morro Bay in 2011. Of this total, 154 were for rent, 88 were for sale, and 1,125 were for seasonal, recreational, or occasional uses. Total housing units Number 6,320 Percentage 77% Occupied housing units 4,844 23% Vacant housing units 1,476 2% For rent 154 00/0 Rented, not occupied 12 1% For sale only 88 0% Sold, not occupied 6 18% For seasonal, recreational, or occasional use 1,125 1% All other vacant 91 0% Vacancy rate 23% Homeowner vacancy rate 3% Rental vacancy rate 6% Source: 2007-2011 ACS Five -Year Estimate (HCD SLO County Housing Element Update Data Profile) JUNE 2014 22 CITY OF MORRO BAY • • • 7 J \J • HOUSING ELEMENT UPDATE �I ram' Table 15 shows the different types of housing units in Morro Bay by the number of units in the structure. In Morro Bay, 72 percent of the housing units are single-family detached homes, while attached single-family homes provide another 6 percent of the housing stock. Multi -family units constitute 15 percent and mobile homes make up 8 percent of the housing stock in the city. Housing Unit Type Single -Family Detached Morro Bay Units 4,558 Percentage 72% Single -Family Attached 359 6% 2 to 4 Units 446 7% 5 or More Units 507 8% Mobile Homes 486 8% Total Housing Units 6,356 1000/0 Source: DOF 2013 An indication of the quality of the housing stock is its general age. Typically housing over 30 years old is likely to have rehabilitation needs that may include plumbing, roof repairs, foundation work, and other repairs. Table 16 displays the age of Morro Bay's housing stock as of 2008. Note that 2008 data is retained because only ACS data with large margins of error is currently available; since this data has not been vetted by HCD, the slightly dated but more accurate US Census and HCD numbers below are preferred. Among these units, approximately 18 percent of the housing units in Mono Bay have been built since 1990 and approximately 46 percent, almost one-half of the housing stock, is more than about 40 years old. CITY OF MORRO BAY JUNE 2014 23 HOUSING ELEMENT UPDATE • 2009 to 2014:. 2000 to 2008' 1990 to 2000 1980 to 1989 1970 to 1979 75 1% 350 5% 858 13% 882 13% 1,551 1,186 23% 18% 1960 to 1969 1950 to 1959 1,034 15% Prior to 1950 775 12% Total Units 6,711 1000/0 Source: US Census, 'Department of Finance numbers, 2000-2008; "City of Morro Bay, 2009-2014. As of May 2009, according to the City's building inspector, approximately 20 to 25 percent of the • housing stock was in need of rehabilitation. In 2004, City staff conducted a house -by -house survey (100 percent of housing units) in four identified Target Income Census Block Groups (11G) (see Figure 2). JUNE 2014 CITY OF MORRO BAY Is 24 • HOUSING ELEMENT UPDATE FIGURE 2. CENSUS BLOCK GROUPS • E Census Block Groups CITY OF MORRO BAY JUNE 2014 25 HOUSING ELEMENT UPDATE Using the survey and point rating system prescribed by HCD, each unit was catalogued by condition of the roof, siding, foundation, windows, and electrical components. The figures were tabulated to establish a total score and identify each structure as sound, needs minor repair, needs moderate repair, needs substantial repair, or is dilapidated. Table 17 outlines the criteria used to determine the condition of the homes. Table 18 shows the breakdown of homes in each TIG area surveyed. Of the 1,502 homes surveyed, 403 were deemed to be in sound condition, 25 were dilapidated, and 1,074 were in need of some degree of repair. The survey did not differentiate between owner - occupied and renter -occupied properties. Mobile homes were also evaluated by City staff in 2004. That survey found that a lesser percentage of these residences were categorized in the "Excellent" and "Sound 1" ratings, but that in general, approximately one -quarter of the mobile homes were in need of major rehabilitation or replacement. TABLE 17: HOUSING CONDITION SURVEY CRITERIA Rating Sound Criiczi�i Units that appear structurally sound and well maintained. Minor Repair Units that appear structurally sound but show signs of deferred maintenance or upkeep. The house may need a roof replacement or new windows and a paint job. Moderate Repair Involves repair or replacement of more than one rated system. This category varies widely and may include, for example, a unit that needs replacement of the roof, electrical system, windows and doors. Substantial Replacement of several major systems, including complete or major Repair foundation work, replacement or repair of exterior siding, reconstruction of the roof system and complete re -plumbing. Dilapidated All the rated systems need repair and making those repairs to bring the structure into compliance with the current Uniform Building Code would not be cost-effective. Source: City of Morro Bay Staf, 2004 JUNE 2014 CITY OF MORRO BAY is 11 EA 26 r1 L • • HOUSING ELEMENT UPDATE a TABLE IH: HOUSING CONDITIONS IN TARGET INCOME GROUPS, MORRO BAY, 2004 Census Block Group 105.2 Number of Units Sampled 605 Condition Sound of Housing 168 Units 28% Minor 292 48% Moderate 109 18% Substantial 30 5% Dilapidated 6 1% 301 Sound 66 22% Minor 117 39% Moderate 72 24% Substantial 27 9% Dilapidated 19 6% 10a.5 351 Sound 124 35% Minor 161 46% Moderate 64 18% Substantial 2 1 % Dilapidated 0 0% 106.5 245 Sound 45 18% Minor 135 55% Moderate 51 21% Substantial 14 6% Dilapidated 0 0% Source: City of Morro Bay Stag, 2004 CITY OF MORRO BAY JUNE 2014 27 HOUSING ELEMENT UPDATE For the purpose of evaluating housing affordability, housing need, and eligibility for housing assistance, income levels are defined by guidelines adopted each year by the California Department of Housing and Community Development. For San Luis Obispo County, the applicable median income for a family of four in 2014 is $77,000. HCD has defined the following income categories for San Luis Obispo County, based on the median income for a household of four persons: • Extremely low income: 30 percent and below ($0 to $22,600) • Very low income: 31 to 50 percent of median income ($22,601 to $37,700) • Low income: 51 to 80 percent of median income ($37,701 to $60,300) • Moderate income: 81 to 120 percent of median income (160,301 to $92,400) • Above moderate income: 120 percent or more of median income ($92,401 or more) • Table 19 shows the maximum annual income level for each income group adjusted for household • size for San Luis Obispo County. The maximum annual income data is then used to calculate the maximum affordable housing payments for different households (varying by income level) and their eligibility for federal housing assistance. Houschold Size 1-Person Nledian $53,900 Maximum Extremely Low $15,850 Income Level Very Low $26,400 Low $42,250 .. $64,700 2-Person $61,600 $18,100 $30,200 $48,250 $73,900 3-Person $69,300 $20,350 $33,950 $54,300 $83,150 4-Person $77,000 $22,600 $37,700 $60,300 $92,400 5-Person $83,150 $24,450 $40,750 $65,150 $99,800 6-Person $89,300 $26,250 $43,750 $69,950 $107,200 7-Person $95,500 $28,050 $46,750 $74,800 $114,600 8-Person $101,650 $29,850 $49,800 $79,600 $121,950 Source: HCD 2014 JUNE 2014 CITY OF MORRO BAY C� i75 11 • • HOUSING ELEMENT UPDATE Table 20 provides a summary of household income in Morro Bay according to the ACS 2008-2012 Five -Year Estimates. Table 20 also provides the HCD income category for households in 2012. However, HCD income categories and the Census Bureau's income categories do not correlate directly, and the comparison between HCD and Census categories is for informational purposes only. HCD Income Category Extremely Lo%c Household Income Less than $10,000 Number 144 322 555 Percentage 3% 6% 11% $10,000 to $14,999 $15,000 to $24,999 Very Low $25,000 to $34,999 525 11% Low $35,000 to $49,999 689 14% $50,000 to $74,999 937 19% Moderate $75,000 to $99,999 664 13% Above Moderate $100,000 to $149,999 654 13% $150,000 to $199,999 283 6% $200,000 or more 188 4% ToW 4,961 IOW/0 Source: ACS 2008-2012 Five -Year Estimates HOUSING COSTS AND AFFORDABILITY The cost of housing is directly related to the extent of housing problems faced by lower- and moderate -income households in a community. If housing costs are high relative to household income, correspondingly the incidence of housing cost burden and overcrowding will be high. This section summarizes the cost and affordability of housing to Morro Bay residents. According to DataQuick, the median home sale price in Morro Bay was $429,500 in 2013, an increase of approximately 14 percent from the 2012 median of $376,000. Median prices in Morro Bay tend to be in the middle to low range when compared to other San Luis Obispo communities, and are just above the county average. Table 21 shows median home sales prices in Morro Bay and nearby communities for 2012 and 2013. Assuming a 5.75 percent interest rate and 10 percent down payment, a family of four would need to make approximately f 115,000 to afford a $376,000 house. A median priced home in Morro Bay is only affordable to families with "above moderate" income levels. CITY OF MORRO BAY JUNE 2014 29 HOUSING ELEMENT UPDATE Community/City San Luis Obispo County 2013 Median Price $415,000 2012 Median Price $360,000 Percentage Increase 15% Cambria $500,000 $452,500 11% Cayucos $650,000 $575,000 13% Los Claris $371,500 $325,000 14% Morro Bay $429,500 $376,000 14% San Luis Obispo (City) $525,000 $485,000 8% Source: DataQuick 2014 (unvw.DQNews.com) • Examining the rental housing market is a direct means to identifying rental price information. Rents are ultimately determined by the interaction of supply and demand within the housing market. The two most significant factors contributing to rental prices are location and amenities. Morro Bay's close proximity to the ocean makes it a high -demand location in which to reside, causing rental costs to increase as the demand increases. Table 22 provides samples of "typical" rental housing in the • Morro Bay area as identified through a point -in -time survey conducted in March 2014. Source: Rental Survey, March 2014 Although the monthly cost of rental housing is important, most landlords require the first and last month rental payment plus a security deposit prior to moving in. Many landlords require a minimum monthly income of up to three times the monthly rent. There may also be requirements for deposits to connect to services such as water and electricity and possibly extra charges for additional people or pets. Due to these factors, often the actual cost of moving into a rental unit is a greater burden. JUNE 2014 CITY OF MORRO BAY rI iE HOUSING ELEMENT UPDATE According to the 2014 HCD income limits (Table 23), a very low-income household of four could afford up to $943 a month for rent. If this household lived in a three -bedroom unit in Morro Bay, according to the rental survey, this household would be paying between $1,900 and $2,150. A household earning 50 percent of the area median income would need to allocate nearly 60 percent of their gross income to be able to afford the rent for the least expensive three -bedroom unit in Morro Bay. This indicates a need for more affordable housing for households in the extremely low-, very low-, and low-income ranges in the city. Housing affordability can be inferred by comparing the cost of renting or owning a home with the maximum affordable housing cost to households at different income levels. The area median income provides a benchmark for estimating the affordability of housing and the ability of newcomers to move into the community. Taken together, this information can generally demonstrate who can afford what size and type of housing and indicate the type of households most likely to experience overcrowding or a burden on housing cost. In evaluating affordability, the maximum affordable price refers to the maximum amount that could be afforded by households in the upper range of their respective income category. Households in the lower end of each category can afford less in comparison. The maximum affordable home and • rental prices for residents of San Luis Obispo County are shown in Table 23. The affordability of the county's housing stock for each income group is discussed below. HCD has identified the 2014 county area median income to be $77,000 for a family of four. • Table 23 shows the maximum rents and sales prices, respectively, that are affordable to extremely low-, very low-, low-, moderate-, and above moderate -income households. Affordability is based on the following assumptions: a household spending 30 percent or less of their total household income for shelter, the maximum household income levels established by the US Department of Housing and Urban Development (HUD) and HCD; and maximum affordable sales prices based on 10 percent down with a 30-year fixed rate mortgage at a 5.75 percent annual interest rate. CITY OF MORRO BAY JUNE 2014 31 HOUSING ELEMENT UPDATE Household Size 1 1 1 2 1 3 1 4 5 6 .. Annual Income $15,850 $18,100 $20,350 $22,600 $24,450 $26,250 Maximum Monthly Gross Rent' $396 $453 $509 $565 $611 $656 Maximum Purchase Price2 $48,880 $59,141 $67,000 $74,460 $80,630 $86,460 Very Low Income (Households Annual Income $26,400 $30,200 $33,950 $37,700 $40,750 $43,750 Maximum Monthly Gross Rent' $660 $755 $849 $943 $1,019 $1,094 Maximum Purchase Price2 $86,400 $99,750 $111,230 $123,120 $133,340 $143,830 Low Income (Households at 800,1 of Median Income) Annual Income $42,250 $48,250 $54,300 $60,300 $65,150 $69,950 Maximum Monthly Gross Rent' $1,056 $1,206 $1,358 $1,508 $1,629 $1,749 Maximum PurchaseA-ice2 Moderate(Households $138,20 $157,930 $179,050 $198,390 $215,160 $230,960 Annual Income $64,700 $73,900 $83,150 $92,400 $99,800 $107,200 Maximum Monthly Gross Rent' $1,618 $1,848 $2,079 $2,310 $2,495 $2,680 Maximum Purchase Pr Ce2 $210,120 $242,620 $251,780 $274,000 $327,230 $345,900 Source: 2014 Income Limits: Department of Housing and Community Development. Monthly mortgage calculation: http://www.realtor.mWhomefinance/fnancial-calculators/home-aJfordability- calculator. aspx7source-web I Affordable housing cost for renter -occupied households assumes 30% of gross household income, not including utility cost. 2 Affordable housing sales prices are based on the foUowing assumed variables: approximately 10% down payment, 30-year fixed rate mortgage at S. 75% annual interest rate. JUNK 2014 CITY OF MORRO BAY is • 32 • C, J HOUSING ELEMENT UPDATE Overpayment compares the total shelter cost for a household to the ability of that household to pay. Specifically, overpayment is defined as monthly shelter costs in excess of 30 percent of a household's income. Shelter cost is defined as the monthly owner costs (mortgages, deed of trust, contracts to purchase or similar debts on the property and taxes, insurance on the property, and utilities) or the gross rent (contract rent plus the estimated average monthly cost of utilities). Table 24 shows to what extent occupied housing units (households) are overpaying for housing cost by their income category and whether or not they were overpaying. As of 2011, 43 percent of all households were overpaying based on their income categories. More than half of these overpaying households are in the low-, very low-, or extremely low-income category. Household Extremely Low Very Low Low Moderate Above Moderate Total Lower Income Ownership 42 307 456 390 1,359 2,954 1,105 Households Overpaying owner households 248 131 88 260 225 952 467 Percentage of overpaying owners 73% 43% 19% 67% 17% 33% 42% Reuter 556 381 553 332 276 2,098 1,490 Households Overpaying renter households 528 248 227 154 0 1,157 1,003 Percentage of overpaying renters 95% 65% 41% 46% 0% 55% 67% Total Households 897 689 1,009 722 1,635 4,952 2,595 Overpaying households 775 380 315 414 225 2,109 1,470 Percentage of overpaying households 86% 55% 31% 57% 14% 43% 57% Source: ACS 2007-2011 Five-year Estimates (HCD SLO County Housing Element Data Profile) The Comprehensive Housing Affordability Strategy (CHAS) was developed by HUD to assist jurisdictions in writing their consolidated plans. According to this data (Table 25), there were 395 owner households and 770 renter households eaming less than 50 percent of the median family income (hEFI) in the city in 2010. Approximately 76 percent of these lower -income renter -occupied households were identified as having at least one of four housing problems (which include incomplete kitchen facilities, incomplete plumbing facilities, more than one person per room, and a CITY OF MORRO BAY JUNE 2014 33 HOUSING ELEMENT UPDATE cost burden greater than 301/6). Conversely, approximately 55 percent of lower -income owner - occupied households experienced at least one of those four housing problems. It is important to note that, similar to ACS data, the CHAS dataset uses small samples and is subject to large margins of error and therefore may have totals and percentages that are slightly different than other data sources used in this document. Source: CHAS 2006-2010 SPECIAL NEEDS GROUPS • Certain groups have greater difficulty in finding acceptable, affordable housing due to special • circumstances relating to employment and income, household characteristics, and disabilities, among others. These "special needs" groups include seniors, persons with disabilities, large households, single -parent households (female -headed households with children, in particular), homeless persons, and agricultural workers. This section discusses the housing needs facing each group, as well as programs and services available to address the housing needs. Persons with Disabilities Table 26 shows the 2000 Census information regarding non -institutionalized people in Morro Bay who have disabilities that either prevent them from working or make self -care or mobility difficult. Generally, disabled persons constitute 10 percent of an ven population; in Morro Bay, the oercentaee is slightly hieher at 20 nercent (2.162 mrsons). JUNE 2014 CITY OF MORRO BAY • 34 • • HOUSING ELEMENT UPDATE TABLE 26: PERSONS WITH A DISABILITY BY DISABILITY TYPE, 2000 Total Disabilities Tallied Number 3,816 Percentage 100% Total Disabilities for Ages 5-64 2,268 59% Sensory disability 197 5% Physical disability 469 12% Mental disability 358 9% Self -care disability 135 4% Go -outside -home disability 302 8% Employment disability 807 21% Total Disabilities for Ages 65 and Over 1,548 41% Sensory disability 369 10% Physical disability 577 15% Mental disability 179 5% Self -care disability 105 3% Go -outside -home disability 318 8% Source: US Census 2000 (HCD SLO County Housing Element Update Data Profile) There are two major housing problems facing disabled persons: (1) the need for housing that meets particular physical needs (wheelchair accessible, etc) and (2) monetary needs. Because of limited job opportunities for the handicapped and disabled, their incomes are often below the median income. Table 27 identifies the employment status of disabled persons in the city. TABLE 27: PERSONS WITH A DISABILITY BY EMPLOYMENT STATUS Status Age 16--4, Employed Persons with a Disability NumberEmployment 164 16% Age 16-64, Not Employed Persons with a Disability 305 29% Persons Age 65 Plus with a Disability 577 55% Total Persons with a Disability 1,046 100% Source: US Census 2000 (HCD SLO County Housing Element Update Data Profile) The disabled or handicapped residents of Morro Bay have varying housing needs depending on the nature and severity of the disability. Physically disabled persons generally require modifications to their housing units such as wheelchair ramps, elevators or lifts, wide doorways, accessible cabinets, and modified fixtures and appliances. If the disability prevents the person from operating a vehicle, CITY OF MORRO BAY JUNE 2014 35 HOUSING ELEMENT UPDATE then proximity to services and access to public transportation are important. Severely physically disabled persons may also require nursing or care facilities. If the physical disability prevents the individual from working or limits income, the cost of housing and needed modification can be significant. Because physical handicaps vary, this group rarely congregates toward a single service organization and makes estimating the number of individuals and specific needs difficult. The physical modification of housing is not generally necessary to accommodate mentally disabled persons, but they will generally require special services and monetary support. Since jobs and incomes are often limited for such individuals, affordable housing is important. Many mentally disabled persons would prefer to live independently, but because of monetary circumstances they are forced to live with other family members or with roommates. This may cause additional stress and problems. In some instances, the need for a resident assistant to help deal with crisis or challenging situations may also create special housing demands. This would suggest that there is a need for some apartment or condominium complexes which are reserved exclusively for persons requiring extra assistance in dealing with their daily routines. Many mentally handicapped persons are unable to drive, so access to public transportation is also important. • Disabled elderly often fall into one or both of the above categories. Many elderly have some minor physical handicap. For instance, climbing stairs may be difficult, especially when carrying groceries • or other bulky items. Other elderly persons may have difficulty cooking, cleaning, performing daily chores, or remembering to take medication. Congregate care facilities and retirement homes help meet the needs of many of these individuals. Senate Bill (SB) 812 requires the City to include the needs of individuals with a developmental disability within the community in the special housing needs analysis. According to Section 4512 of the Welfare and Institutions Code, a "developmental disability" means a disability that originates before an individual attains age 18 years, continues, or can be expected to continue, indefinitely, and constitutes a substantial disability for that individual which includes mental retardation, cerebral palsy, epilepsy, and autism. Many developmentally disabled persons can live and work independently in a conventional housing environment. More severely disabled individuals require a group living environment where supervision is provided. The most severely affected individuals may require an institutional environment where medical attention and physical therapy are provided. Because developmental disabilities exist before adulthood, the first issue in supportive housing for the developmentally disabled is the transition from the person's living situation as a child to an appropriate level of independence as an adult. The California Department of Developmental Services (DDS) currently provides community -based services to approximately 243,000 persons with developmental disabilities and their families through a statewide system of 21 regional centers, four developmental centers, and two community -based JUNH 2O14 CITY OF MORRO BAY • FT! 9 • HOUSING ELEMENT UPDATE facilities. The Tri-Counties Regional Center is one of 21 regional centers in California that provides point of entry to services for people with developmental disabilities. The center is a private, nonprofit community agency that contracts with local businesses to offer a wide range of services to individuals with developmental disabilities and their families. Table 28 provides information about Mono Bay's population of developmentally disabled persons; Table 29 provides information about those persons' place of residence. Source: HCD SLO County Housing Element Updated Data Profde 2014 Source: HCD SLO County Housing Element Updated Data Profile 2014 A number of housing types are appropriate for people living with a development disability: rent - subsidized homes, licensed and unlicensed single-family homes, inclusionary housing, Section 8 vouchers, special programs for home purchase, HUD housing, and SB 962 homes. The design of housing -accessibility modifications, the proximity to services and transit, and the availability of group living opportunities represent some of the types of considerations that are important in serving this special needs group. Incorporating "barrier -free" design in all new multi -family housing (as required by California and federal fair housing laws) is especially important to provide the widest range of choices for disabled residents. Special consideration should also be given to the affordability of housing, as people with disabilities may be living on a fixed income. In order to assist in the housing needs for persons with developmental disabilities, the City will implement programs to coordinate housing activities and outreach with the Tri-Counties Regional Center and encourage housing providers to designate a portion of new affordable housing developments for persons with disabilities, especially persons with developmental disabilities, and pursue funding sources designated for persons with special needs and disabilities. Program H-19.1 is proposed to specifically address the needs of the developmentally disabled. CITY OF MORRO BAY JUNE 2014 37 HOUSING ELEMENT UPDATE Analysis of the housing needs of the elderly is important for three reasons: (1) many elderly have fixed, limited incomes, (2) many elderly persons are "over -housed" (living alone in a three- or four - bedroom house), and (3) because some elderly have mobility and health problems, these needs can create special housing requirements. Table 30 illustrates the population of residents aged 65 and older in Morro Bay in 2000 and 2010. Table 31 illustrates the tenure of senior households in the city. Approximately 80 percent of senior - headed households own the home they live in. The senior population numbers and the percentage they make up of the city's overall population changed very little between 2000 and 2010. Source. US Census 2000, 2010 (HCD SLO County Housing Element Update Data Profde) Age of Householder Owner -occupied senior household Number 1,231 Percentage 80% Householder 65 to 74 years 656 43% Householder 75 to 84 years 413 27% Householder 85 years and over 162 11% Renter -occupied senior household 300 20% Householder 65 to 74 years 204 13% Householder 75 to 84 years 80 50/0 Householder 85 years and over 16 1% Total 1,531 100% Source: ACS 2007-2011 Estimates (HCD SLO County Housing Element Update Data Profile) To address the needs of seniors in the community, the City will implement Program H48.1 to utilize CDBG and other state or federal monies to assist in the development of lower -income senior rentals. JUNE 2014 CITY OF MORRO BAY 0 9 • 38 . HOUSING ELEMENT UPDATE r The ACS 2007-2011 Five -Year Estimates identified 96 residents of Morro Bay employed in agriculture, forestry, fishing and hunting, or mining operations. Because of Morro Bay's role as a significant commercial fishing center, this information is not surprising. This number, however, probably underestimates migrant farmworkers who move with the seasons according to the availability of work. There are still several large tracts of productive agricultural land within and near the Morro Bay city limits that periodically employ such workers. It is not clear where migrant workers live while employed in the Morro Bay area. According to information provided by the Employment Development Department for the San Luis Obispo -Paso Robles Metropolitan Statistical Area, there were 3,600 people employed within the agriculture industry in January 2014, a decrease of 100 people since January 2013. Large families present special housing needs if they cannot find affordable and adequate housing units. The result may be overcrowding. As identified in Table 12 above, 113 households (approximately 2 percent of all households) in Morro Bay were occupied by five or more persons (considered a large household) of which 39 were owner -occupied households and 74 were renter - occupied households. This proportion is substantially lower than in the county as a whole and is • very low when compared to other cities and counties. Thus, housing for large families does not appear to be a significant need in Morro Bay. C J Female -headed single -parent households experience numerous housing problems, including affordability (the individuals are often on public assistance), overcrowding (the individuals often cannot afford units large enough to accommodate their families), insufficient housing choices, and discrimination. The City of Morro Bay recognizes these problems and has included policies and programs in this document to address affordability, overcrowding, and discrimination for all segments of the population. Table 32 illustrates the number of family households that are headed by a female with no husband present. Female -headed households with no husband present account for 14 percent of all households in the city. The table also reports the presence of children in female -headed households, as well as poverty indicators for female -headed households. Female -headed householders with their own children make up approximately five percent of all householders in the city (as shown in the table below) and 37 percent of the female -headed householders. CITY OF MORRO BAY JUNE 2014 39 HOUSING ELEMENT UPDATE Number Percentage of Householders Female -Headed Householders 398 14% Female Heads with Own Children 147 5% Female Heads without Children 251 9% Total Householders 2,746 100% Female -Headed Householders Under the Poverty Level 18 1% Total Families Under the Poverty Level 189 7% Source: ACS 20077-2011 Five -Year Estimates (HCD SLO County Housing Element Update Data Profile) • According to HUD's 2012 Continuum of Care Homeless Assistance Programs (as provided by the HCD SLO County Housing Element Update Data Profile), the County of San Luis Obispo has approximately 2,057 homeless persons (Table 33). Of these homeless persons, approximately 343 are in families with at least one child. The homeless population is mostly unsheltered, with only 8 . percent of the 2,057 identified as sheltered. The Community Action Partnership of San Luis Obispo County (CAPSLO) provided 2013 estimates of the Maxine Lewis Memorial Shelter and Prado Day center population by home community. At these two shelters, approximately 54 people call Morro Bay home. Source: HUD 2012 (HCD SLO County Housing Element Update Data Profile) Community Maxine Lewis Memorial Shelter Prado Day Center .:- . u Source: CAPSLO 2014 JUNE 2014 C➢] CITY OF MORRO BAY • • • HOUSING ELEMENT UPDATE Regional services for the homeless include Chorro Creek Ranch, which serves the South County area that includes Morro Bay and provides a range of services such as emergency shelter, counseling services, and rental assistance. The Estero Bay Alliance for Care is an all -volunteer network of organizations and individuals dedicated to enhancing the quality of life for local homeless and in - need citizens through outreach, education, and liaison with appropriate agencies and organizations. The CAPSLO emergency shelter and services center, located near the intersection of Broad Street and Orcutt Road in San Luis Obispo, provides emergency shelter, on -site information and referral services, and assistance in finding permanent housing. The People's Kitchen, the Salvation Army Homeless Outreach program, the Senior Nutrition program, which provides meals to seniors over the age of 60 up to five times a week, and other programs offered by local churches are also available. The City of San Luis Obispo is centrally located and it is appropriate that services for homeless individuals be located there. San Luis Obispo is the county seat; many governmental social services can be received there. Additional service providers include the El Camino Homeless Coalition in Atascadero, Loaves and Fishes in Paso Robles, the 5 Cities Coalition in Arroyo Grande, and Transitional Food and Shelter in the North County. To further assist with providing homelessness services, Mono Bay's City Council has approved a temporary fee waiver for a local group serving a free weekly meal at the city's Veterans Memorial Building. The decision covers an estimated $2,000 in city rental fees for the building through June 30, 2014. As shown in Table 35, Mono Bay contains four assisted housing developments owned by People's Self -Help Housing (PSHH) that provide 95 affordable housing units. The City has utilized various funding sources to provide affordable housing to residents, including Section 8, Section 202, Section 515, and tax credits. PSHH is currently in negotiations with the tax credit investors for both Oceanside Gardens and Sequoia Street Apartments to facilitate maintaining their role as general partner. PSHH is also currently applying to HUD for approving a plan to refinance Ocean View Manor using tax credit syndication and a renewed HUD contract, through which PSHH plans to rehabilitate and continue to operate the property as affordable. If these negotiations are successful the length of the deed restriction would be extended on this property. These three properties continue to operate as affordable, and PSHH communicated that they do not plan to experience any interruption in offering affordable rents to the tenants. The Housing Authority of San Luis Obispo (HASLO) reported that as of March 2014, the City of Mono Bay had 79 Section 8 vouchers being used in the city. HASLO also reported that due to too much interest, the waitlist for Section 8 vouchers has been closed since 2010. CITY OF MORRO BAY JUNE 2014 41 HOUSING ELEMENT UPDATE Totalrliest Units Type Source ,. ate of Conversion Ocean View Manor 40 39 Senior Section202 12/1/2030 View PacApartments Apartments 26 25 Family y Section 515 2 25 2041 / / Oceanside Garden Apartments 21 21 Senior Tax Credits 2/26/2049 Sequoia Str Apartmentseet 11 10 large Family Tax Credits 7/30/2054 Total 98 95 — — — Source: HCD SLO Housing Element Update Data Profile 2014; personal communication uuth People's Self - Help Housing 2014 • California housing element law requires all jurisdictions to include a study of all low-income housing units which may at some future time be lost to the affordable inventory by the expiration of some • type of affordability restrictions. The law requires that the analysis and study cover a 10-year period beginning at the start of the Housing Element planning period, so June 30, 2014 through June 30, 2024. At -risk units are subsidized low-income housing projects that may be convertible to market -rate units as they are nearing the end of their subsidized contract. Such units are deemed "at risk" of being lost as affordable housing. Currently there are not any subsidized housing units considered at risk of converting to market -rate units within 10 years of the beginning of this Housing Element planning period. However, Program H-15.1 states that the City will maintain a list of all dwellings within the city that are subsidized by government funding or low-income housing developed through local regulations or incentives and that the City will contact all property owners and ask them to provide at least two years' notice prior to the conversion of any units for lower -income households to market -rate units. JUNE 2014 42 CITY OF MORRO BAY • • HOUSING ELEMENT UPDATE The San Luis Obispo Council of Governments (SLOCOG) is responsible for developing the Regional Housing Needs Allocation (RHNA), which assigns a share of the region's future housing need to each jurisdiction in the region. State law requires jurisdictions to demonstrate that "adequate sites" will be made available over the planning period (2014-2019) to facilitate and encourage a sufficient level of new housing production. Jurisdictions must also demonstrate that appropriate zoning and development standards, as well as services and facilities, will be in place to facilitate and encourage housing. The Housing Element must inventory land suitable for residential development, including vacant and underutilized sites, and analyzes the relationship of zoning and public facilities and services to these sites. In complying with the adequate site requirement, jurisdictions can take credit for the number of new units built during the planning period of 2014-2019 toward the RHNA. This includes new housing units either built or issued a certificate of occupancy since January 1, 2014. Regional Housing Needs Allocation An impurtant component of the Housing Elcment is the identification of sites for future housing development and evaluation of the adequacy of these sites in fulfilling Morro Bays share of the Regional Housing Needs Allocation, as determined by SLOCOG. The intent of the RHNA is to • ensure that local jurisdictions address their fair share of the housing needs for the entire region. Additionally, a major goal of the RHNA is to ensure that every community provides an opportunity for a mix of affordable housing to all economic segments of its population. The RHNA jurisdictional allocations are made to ensure that adequate sites and zoning are provided to address existing and anticipated housing demands during the planning period and that market forces are not inhibited in addressing the housing needs for all facets of a particular community. Table 36 provides the RHNA target for the planning period 2014 to 2019. L Incu;nc Lcv RHSA Units Built Since January 2014 Remaining RENA •.Ewe -it® ®i •wurcY: � tvt,r Notes: 1. Single family buildingpermits 2. The total RHNA number of 154 in the SLOCOG Regional Housing Needs Plan is off by one unit due to a rounding error Per HCD direction, the numbers in the income categories were totaled and the total RHNA number used for analysis in the Housing Element update is 155. CITY OF MORRO BAY JUNE 2014 43 HOUSING ELEMENT UPDATE • Based on the above projections, the City of Morro Bay will need to allow for 63 housing units affordable to lower -income households to comply with the City's regional allocation targets for these income levels. In addition, the City will allow for 27 housing units available to moderate - income households. A total of 155 new housing units have been allocated by HCD for the City of Morro Bay from 2014 through 2019. As of March 2014, there have not been any housing units constructed, but six single-family units have been approved. As a result, the City will need an additional 149 housing units to meet Morro Bay's 2014-2019 RHNA. However, the City currently has the vacant land capacity to accommodate all of the RHNA need. See Table 38 for a complete list of available sites to meet the City's 2014- 2019 RHNA. Land Availability This section provides the inventory of vacant land that is available in Morro Bay for both multi- family and single-family residential development. Table 38 provides the number of acres, zoning, unit potential, and availability of infrastructure for all vacant acreage not earmarked for pending projects in Morro Bay. All sites listed in Table 38 have no known constraints related to infrastructure or environmental conditions. Realistic Capacity . The zoning districts and General Plan land use designations are shown for each site and are used to determine the realistic unit capacity of each site. Realistic capacity was detemvned by multiplying the number of acres by the maximum density for the site, and then 80 percent of that result was used as the final realistic unit number to account for site and regulatory constraints. The capacity for the 10 mixed -use sites included in the inventory was determined by taking 80 percent of the total site acreage, multiplying the acreage by the maximum density for the site, and then taking 80 percent of that number to determine the realistic unit number. Although these Mixed Commercial/Residential (MCR) zoned sites permit commercial development, based on current trends as well as approved projects, allowing for 100 percent residential would be appropriate. However, the City took a conservative approach and used only 80 percent of the total site acreage. Currently, Mono Bay has a high vacancy rate in commercial buildings; therefore, the City is allowing for solely residential development in the MCR district. In addition, the City approved an affordable project at Main at Bonita, which proposes 23 units to be developed on 1.14 acres in the Mixed Commercial/Residential (MCR)/Multi-family Residential -Hotel -Professional (R-4) district. This project was developed with 100 percent residential units at 20 units to the acre. Small Sites A majority of the vacant parcels that allow up to 27 units per acre are less than a half acre in size, and it can be difficult to build multi -family, lower -income housing on smaller sites. However, recent trends show that multi -family housing development is occurring on sites of less than one-half acre. JUNE 2014 M CITY OF MORRO BAY • • HOUSING ELEMENT UPDATE For the high -density sites listed in Table 38, each of the site groups 4-6, 21-22, 24-25, and 28-30, contiguous. Of the total units the City assumes can be developed on high -density land (260 units), 86 units or 33 percent or the units are being accommodated on sites that have potential for lot consolidation into larger sites more feasible for development of affordable housing. To help facilitate the development of affordable housing on smaller lots, the City has included Program H-L2 to assist in the consolidation of small lots. Table 37 compares the City of Morro Bay's RIINA to the site inventory capacity. Including the credit of six building permits and the site inventory capacity, the City has a surplus of 41 units available to extremely low-, very low-, and low-income households, 48 units available to moderate - income households, and 320 units available to above moderate -income households, a total surplus of 320 units. Table 38 provides the characteristics of the available sites for the development of single-family homes and multi -family units, and Figure 3, the Land Inventory Map, shows the location of each site. Source: SLOCOG 2013, City of Morro Bay 2014 Notes: l Sites allowing up to 27 dwellings per acre and those allounng up to 15 dwellings per acre have been combined to address lower- and mademte-income RHNA. 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Jw�9R O� o.�tiu FlIr" 7 Lontl by to y faM` CITY OF MORRO BAY {PRIL 201. 49 HOUSING ELEMENT UPDATE TWa page intmtionally left blank. • • APRIL 2014 CITY OF MORRO BAY SO • HOUSING ELEMENT UPDATE Water The City's Annual Water Report, dated 2013, reports that the City relies on three sources of water: groundwater pumped from the Chorro and Morro basins, the reverse osmosis/desalinization plant, and the primary source since 1997, the State Water Project, to meet its current and future needs. The historic statewide drought of 2014 has stressed these water sources. For example, on January 31, 2014, San Luis Obispo County staff informed the State Water Project subcontractors that the allocation for 2014 is at 0 percent, and only stored water is available to meet delivery requests. The City of Morro Bay has approximately 3,073 acre-feet of water stored in San Luis Reservoir. Prolonged severe drought conditions could constrain development, although the constraint would not be specific to Morro Bay. The water production trend has actually decreased as population increased over the past 20 years because of an aggressive water conservation program enacted by the City. In 1985, the City initiated a retrofit program that requires all new development to replace old water fixtures such as toilets and sinks with newer models that use less water. The program required that for every gallon of water needed by new development, two gallons must be saved through retrofitting. The City Council terminated the mandatory program in 2001 and replaced it with a voluntary rebate program that • promotes water conservation by reimbursing owners for purchasing water -saving fixtures. The retrofit program has resulted in a decrease in the average consumption to about 117 gallons per person per day. This use rate is quite low compared to San Luis Obispo County as a whole. The City of Morro Bay updated its Water Management Plan, which identifies resources and establishes priorities for long-term water supply, and obtained certification from the California Coastal Commission. In December 2008, the City Council reviewed the conditions of the community's long-term potable water supply and as a result approved the Water Management Plan Status Report. This report looked at "any changes in climatic, hydrological, technological, or political conditions that could affect the City's long-term water supply whether negatively or positively." It was determined that there is adequate water for the buildout of the city under the current General Plan. The City has sufficient water supply from a variety of sources to meet its buildout goals, including the State Water Project, local groundwater sources, and the City's desalinization plant. There are times, such as when State Water Project water delivery is restricted, that the City has operational difficulty meeting its short term water demands and requires water conservation and other means such as building limitations in order to bridge these temporary water shortages. From 2003 to 2013, water production has decreased from 1,421 acre-feet to 1, 271 acre-feet. The City is committed to providing affordable and sustainable water to Morro Bay, and the Water Management Plan outlined steps to be taken to ensure the acquisition of such resources. Of the 13 measures required by the plan, six represented specific projects to be completed (such as permit acquisition) and seven are ongoing tasks (such as implementation of conservation programs). Since the adoption of the plan, the six projects have been completed and the seven programs successfully implemented to fulfill the plan's goals. is CITY OF NIORRO BAY JUNE 2014 51 HOUSING ELEMENT UPDATE L To comply with Senate Bill 1087, the City will immediately forward its adopted Housing Element to its water and wastewater providers so they can grant priority for service allocations to proposed developments that include units affordable to lower -income households. Sewer The City of Mono Bay jointly owns and operates the wastewater treatment plant (WWTP) with the unincorporated community of Cayucos. According to the Wastewater Treatment Plant Master Plan (2007), the WTTP is rated for an average dry weather flow of 2.06 million gallons per day (mgd), a peak seasonal dry weather flow of 2.36 mgd, and a peak hour flow of 6.6 mgd. According to the annual daily flow average over five years, Morro Bay contributes to 75 percent of the flow, while Cayucos accounts for 25 percent. The plant has adequate capacity through the year 2021 based on population estimates outlined in the Facility Master Plan Report and therefore currently has capacity to meet the regional housing need. The plant currently treats approximately 1 million gallons per day. The City is currently proposing to relocate and upgrade its WWTP to a water reclamation facility. With this upgrade there is the potential to add additional water into the City's water supply portfolio, either in the form of offsetting use of potable water for irrigation with reclaimed water, ground water recharge or perhaps direct potable reuse of water once there has been a change in the regulatory environment and public perception. JUNE 2014 CITY OF MORRO BAY I • 52 HOUSING ELEMENT UPDATE 4. CONSTRAINTS Various interrelated factors can constrain the ability of the private and public sectors to provide adequate housing and meet the housing needs for all economic segments of the community. These factors can be divided into two categories: (1) governmental and (2) non -governmental constraints. Governmental constraints consist of land use controls, development standards, processing fees, development impact fees, code enforcement, site improvement costs, development permit and approval processing, and provision for a variety of housing. Non -governmental constraints consist of land availability, the environment, vacancy rates, land cost, construction costs, and availability of financing. GOVERNMENTAL CONSTRAINTS Governmental constraints include local land use controls, on- and off -site development standards, building and housing codes, permit processing times, permit processing fees, residential development fees, and delays in permit processing that can cause increases in financing cost. The city's location in the coastal zone has resulted in unique land and use regulations. The California • Coastal Act attempts to balance landowners' rights to develop against the public's right to enjoy the coastline. In some areas of Mono Bay, height restrictions have been enacted to protect public views and large setback requirements have been established to protect bluff areas near the beach. Generally the minimum parcel size, allowed density, setback requirements, and height limits for residential uses are not unusually strict and therefore are not considered a constraint to the development of affordable housing. General Plan Designations To provide for a wide range of existing land uses and to guide future development, the City has established a series of land use classifications or categories. These classifications describe the type and intensity of various land uses that make up the city's fabric and are the basis for the zoning districts established in the Municipal Code. The land use classifications represent the integration of the Land Use Element of the General Plan and the Local Coastal Program Land Use Plan. Residential Land Uses The City has five residential land use categories that provide for a wide range of densities. The purpose is to ensure that residential land is developed to a density suitable to its location and physical characteristics. • CITY OF MORRO BAY JUNE 2014 53 HOUSING ELEMENT UPDATE Density ranges are as follows: • Limited Density: up to 2 units per acre • Low Density: up to 4 units per acre • Low -Medium Density: 4 to 7 units per acre • Medium Density: 7 to 15 units per acre • High Density: 15 to 27 units per acte Zoning Ordinance The Zoning Ordinance provisions allow development on a wide variety of lot sizes in the city and do not constrain the development of affordable units. Table 39 describes the zoning districts that allow residential uses in the city. Description The purpose if this district is to provide for the continuation of agricultural uses in suitable areas and for supplemental commercial uses which may be necessary to support such AG Agricultural continued agricultural activities. It is the intent of the City that it will maintain the maximum amount of prime agricultural land in agricultural production to ensure the protection of the area's agricultural economy. This district allows one single- family house per parcel. The purpose of this district is to permit estate lot homes and Suburban small-scale agricultural uses; to provide an area for people to R-A Residential have parcels of land larger than more typical single-family residential lots, where livestock, poultry, and small animals may be raised in limited number for home use or for pleasure. This district is intended to be applied to existing single-family residential areas of the city to provide for housing which is R-1 Single -Family consistent and harmonious with existing development and to Residential underdeveloped areas of the city in which topography, access, services, utilities, and general conditions make the area suitable and desirable for single-family home development. This district is intended to be applied in areas of the city where R-2 Duplex moderate densities can be physically accommodated, where Residential consistent with the surrounding are of development, and where needed utilities and services can be provided. JUNE 2014 CITY OF MORRO BAY • 54 11 0 HOUSING ELEMENT UPDATE Description This district is intended to apply in the areas of the city where it is reasonable to permit varying intensities of residential Multiple -Family development. The purpose of the R-3 district is to provide a R-3 Residential wide range of housing types and to ensure that the R-3 district will be free of excessive traffic and other uses causing congestion, noise, confusion, and interference in the pattern of higher -density family living. This district is intended to apply in those areas of the city where it is reasonable to permit a mixture of hotels and motels along with apartments, condominiums, and other similar uses. Multifamily the purpose of the R-4 district is to allow higher -density R 4 Residential- apartment projects and, where appropriate, hotel, motel, Hotel- community housing developments, and professional offices, Professional ensuring that the R-4 district will be free of excessive traffic and other uses causing congestion, noise, confusion, and interference in the pattern of higher -density family living and visitor -serving uses. The purpose of this district is to provide for residential uses that are environmentally compatible with protection of coastal resources of local and statewide significance by limiting Coastal densities and intensity of residential development and CRR Resource restricting the range of ancillary uses. Large minimum lot sizes Residential are required in order to minimize overall levels of activity that could adversely impact sensitive coastal resources. Clustered development is encouraged where it will result in lesser levels of impact. The purpose of this district is to designate and promote the Central orderly development of the business district as a central retail C-1 Business shopping facility for the primary market area. Mixed District commercial/residential uses are encouraged in the central business district. The purpose of this district is to allow and regulate a mix of compatible commercial uses with residential uses in districts Mixed where a strip commercial area is in close proximity to a MCR Commercial/ residential neighborhood, to broaden the range of commercial Residential market opportunities, and to provide a review procedure to protect the residential neighborhood from unsafe or unhealthy conditions. The purpose of the this district is to accommodate public, general business, and professional offices and commercial uses G-O General Office which complement and support office development along with residential uses which are compatible with office and commercial uses. Source: Mono Bay Zoning Ordinance, Accessed March 2014 • CITY OF MORRO BAY JUNE 2014 53 HOUSING ELEMENT UPDATE Development standards within the city should not pose any constraints to the development of affordable housing. Minimum lot area required per unit decreases with the higher -density zoning districts and will provide opportunities for lower -income housing. Morro Bay has established special standards to accommodate for smaller lots formed before the city's incorporation. Morro Bay's Zoning Ordinance poses no extraordinary constraints on any form of residential development. The City can demonstrate that its development standards are not a constraint to the development of housing based on a few recent multi -family projects, in which four of the five projects have an affordable component to them: • A 21-unit rental senior affordable housing project at 555 Main Street was approved by the City Council in 2010 in the C-1 /R-4 (Mixed Use Commercial) district. The project will provide very low- and low-income units. The density will be 53 units per acre based on two different density bonuses granted. • A project at 600 Morro Bay Boulevard was developed on 0.39 acres and contained 16 units (13 residential and 3 commercial units). This project was developed in the Central Business (C-1) district, which allows mixed -use or solely development. Since there was an affordable component to this project, the City was flexible with development standards. This project was built at 41 units per acre. The project included one affordable (moderate) unit. • A project at Main at Bonita contains 23 units to be developed on 1.14 acres in the Mixed Commercial Residential (MCR)/Multi-family Residential -Hotel -Professional (R-4) district. This project also has an affordable component, showing that the developers are able to meet sufficient densities to develop affordable units. This project was developed with 100 percent residential units at 20 units to the acre. • A project at Main and South developed in the Duplex Residential (R-2) zone was developed on 3 acres and contained 30 units. The density was 10 units per acre. Three affordable units were provided offsite on Sunset. • A project built at 476 Rockview Street contained two units and was built on 0.11 acres in the Multi -Family Residential -Hotel -Professional (R-4) district, resulting in a density of 17.4 units per acre. In conclusion, after evaluating the projects that have been approved/proposed in Morro Bay, the City's development standards do not pose a constraint to development or affordable development. JUNE 2014 56 CITY OF MORRO BAY • L • HOUSING ELEMENT UPDATE The greatest constraint to development in Morro Bay is the cost of land, which is market driven. The City of Morro Bay has attempted to adopt development standards that provide modest control over development as well as providing opportunities for projects to reduce standards via planned developments, compact development, or variable density projects. By providing flexibility in the development standards, the City allows greater opportunities for projects to achieve maximum density yet still provides for development projects to meet the City's overall adopted goals. The City provides incentives for projects that meet maximum densities. The City's height limitation is primarily utilized to control the size and bulk of single-family units. As stated above, single-family units are the bulk of the residential units constructed. A trend developed in recent years where larger and taller single-family homes were proposed, which would have resulted in units that were not consistent with existing neighborhoods. To address this issue, the City adopted an emergency ordinance (Ordinance No. 543), requiring that any single-family unit proposed over 2,500 square feet in size would require a conditional use permit. However the City does not utilize the height limit in an attempt to restrict projects from achieving maximum density. Multi -family structures as well as mixed -use structures utilizing the City's planned development permitting process can request that the height standard be modified. This development standard is specifically identified in the Zoning Ordinance as being eligible to be waived. Although the City does not see the current development standards as a constraint to the • development of housing, to ensure that multi -family projects are able to meet maximum densities and generally to ensure that development standards do not constrain the development of multi- family housing, the City has included Program H-1.3 which states that the City will continue to allow flexibility in development standards such as height, parking, and setbacks for multi -family projects. Parking Standards The City requires off-street parking for all new housing projects. These parking regulations do not impact the ability to construct housing. In order to reduce development costs for low-income projects, reductions in parking standards are allowed. Parking reductions may include allowing tandem parking, paying an in -lieu fee, and shared parking between commercial and residential uses. Further standards reductions are permitted for senior housing and housing for the disabled to promote these types of housing. Therefore, parking standards tend to encourage the construction of low-income and elderly housing by reducing the development costs and land area necessary to construct off-street parking. • I CITY OF MORRO BAY JUNE 2014 57 wo a. • NI N o — O N N o o m I N ++ a O .��' p N _ X N v W S� V C N a� N w p O O O O il> Li0 LO o. o o O O O (s o O 00 u A n N o o F a O C p O In >� 1 O tE O 10 N 0. w o nI ° 1D q' N N l a z to y m 10 'd O o u? .y C4, O N N O o M 0 e N N OOi O O N N N OG 00 M n I, N w O1 I �,O 0� �,O 0'� u °1 >� '. � � N d M o ag VJ p p _ U yR .y a N O N O N O O O o N A in in In I o IN N N N N N N R N cca v Na 0.1 11 • • • HOUSING ELEMENT UPDATE Planned Development Overlay Zone The purpose of the Planned Development (PD) overlay zone is to provide detailed and substantial analysis of development on parcels which, because of location, size, or public ownership, warrant special review. This overlay zone is also intended to allow the modification of or exemption from the development standards of the primary zone that would otherwise apply if such action would result in better design or other public benefit. The requirements and procedures apply to all properties that have, in addition to a primary or base zone district, the Planned Development (PD) overlay zone, unless otherwise provided in the Zoning Ordinance. Below are the permitted uses subject to the granting of a conditional use permit for a conceptual and/or a precise plan of development: • Any principal or conditional use which is allowed by the primary zoning district is a permitted use. • Community housing projects as defined in Chapter 17.49 of the Zoning Ordinance may be permitted in PD overlay residential zones. The provisions of that chapter also apply to the • review of such PD overlay zone projects. The standards for development within a PD overlay zone are those of the base zoning district, provided, however, that standards may be modified by the Planning Commission or City Council as they relate to building heights, yard requirements, and minimum lot area for dwelling units in the density range prodded that any specific design criteria of the General Plan and coastal Land Use Plan, applicable to the property, is not exceeded. For those areas of the city that are covered by the Waterfront Master Plan, all new development projects requiring discretionary permits (conditional use permits, etc.) must be consistent with the design guidelines contained in Chapter 5 of the Waterfront Master Plan. Modifications of standards will only be approved upon a finding that greater than normal public benefits may be achieved by such deviations. Such benefits may include, but are not limited to, improved or innovative site and architectural design, greater public or private usable open space and provisions of housing for the elderly or low/moderate-income families, provision of extraordinary public access, and provision for protecting ESH areas, but in all cases these provisions must meet the coastal land use policies. New development and uses may be permitted only if found to be consistent with the applicable policies of the Morro Bay General Plan and Local Coastal Program. A concept plan must be submitted and approved pursuant to Chapter 17.40 of the Zoning Ordinance prior to submittal of any new development, new use or change in use, or subdivisions of a series of two or more commonly held contiguous parcels of land, on property within a PD overlay zone which is publicly owned, including tidelands, or in its gross or aggregate area exceeds I acre. • cITY OF MORRO BAY JUNE 2014 59 HOUSING ELEMENT UPDATE Contents of the Conceptual Plan. The concept plan is to be a general development plan and may not include construction plan drawings such as complete or tentative maps. The following information must be included in the concept plan: • Plot Plan. A proposed plot plan for the development, including project boundary designation, perimeter of the ownership, location and dimensions of any existing property lines and easements within the site, tentative location of buildings, roads, parking and open areas. • Streets. The width and location of surrounding and adjoining streets and proposed street alignments within the site, and connections to existing streets. • Adjoining Properties. The use of adjoining properties, any building within 15 feet of the property line must be precisely located. • Topography. The existing and proposed changes in topography of the site, including the degree of land disturbance, the location of drainage channels or watercourses, and the direction of drainage flow. • Utilities. The locations and capacities of existing utilities in the vicinity of the site and tentative extensions to the site. • Structures and Existing Trees. The location of any structures and existing trees in excess of 6 • inches in diameter on the site designated for retention or removal. • Phased Development. The approximate timetable and priorities of any phased development; • Architectural Concepts. Sketches showing architectural concepts of the proposed budding, including heights, design, exterior materials of proposed buildings, other structures, fencing, and signing. • Open Space Plan. Proposed open space plan including landscape concept and type of plant materials, recreation area, parking, service, and other public area used in common on the property; a description of intended improvements to the open area of the property. • Other Information. The Planning Commission and City Council may require such other information as deemed necessary, which may include but not be limited to, economic analysis, habitat analysis, archaeological analysis, visual quality analysis, public access analysis, thoroughfare plans, public services and facilities plans, utilities service plans, and conceptual method of land subdivision or ownership arrangement described by a preliminary parcel or tract map, pursuant to the provisions of Title 14 of the Zoning Ordinance. JUNE 2014 CITY OF MORRO BAY • 60 • HOUSING ELEMENT UPDATE Concept Plan Approval. In addition to the review provisions of Chapter 17.60 of the Zoning Ordinance describing the processing of conditional use permits, concept plans for PD overlay zone properties must receive final approval from the City Council at a duly noticed public hearing. The Planning Commission first reviews the concept plan by conducting a public hearing. If the commission consideration is to approve the plan, it reports such findings and recommendation to the City Council. If the commission determines to deny the plan, it need not be forwarded to the council, and the commission decision is final unless appealed. Precise Plans Required. Upon approval by the City Council of a concept plan, or where no conceptual approval is required, a precise plan of development must be submitted to the Planning Commission showing the details of property improvement and uses or activities to be conducted on the site and any subdivision proposals. Precise plans are processed in accordance with procedures for a conditional use permit as contained in Chapter 17.60 of the Zoning Ordinance. Precise Plan Content. Plans are to be prepared containing all the general information required of concept plans, which has been further developed to a precise level of detail. Any data or calculations necessary to evaluate the precise plan proposal must accompany such plans. A precise plan is required to contain the following minimum information: • Total Development Plan. The total development plan showing the precise dimensions and • locations of proposed structures, buildings, streets, parking, yards, pathways, open spaces, and other public or private facilities. • Architectural Elevations. Fully developed architectural elevations of all buildings, structures, signs, and fencing, showing colors and materials of construction. • Landscaping Plan. A landscaping plan showing plant materials, type and size of plants at the time of planting, and method of maintenance. • Engineering Plans. Engineering plans showing site grading and the amount of cut and fill, including finished grades and proposed drainage facilities. • Proposed Site Uses or Activities. Listing all of proposed site uses or activities to be conducted on the site, with related floor area depicted or calculations of site area to be devoted to such uses. • Miscellaneous Plans. Miscellaneous plans (as appropriate) showing any exterior lighting, roof plans, site cross sections, view sight lines, ESH mitigation plans, archaeological mitigation plans, visual quality plans, public access mitigation plans, or other features necessary to evaluate the specific proposal including the information required of community housing projects. • Tentative Tract or Parcel Map. Tentative tract or parcel map, where lands involved in the proposal are to be divided or joined together. • CITY OF SIORRO BAY JUNE 2014 61 HOUSING ELEMENT UPDATE Precise Plan Approval. The Planning Commission, in granting a conditional use permit for PD overlay zone precise plans, must make the findings required by Section 17.60.030 of the Zoning Ordinance and further find that precise plans are in substantial conformance with any conceptual plan approval granted by the City Council. In 1984, the City adopted a growth management ordinance (Ordinance No. 266) to allow fair distribution of scarce water resources and protect the city's small-town character and surrounding open space. Ordinance No. 266 mandates that building permits will be limited to a number permitting an annual increase in population that would achieve the 12,200-person goal by the year 2000. No further residential building will be permitted after a population of 12,200 has been reached unless an increase has been approved by a majority vote at a regular or special election. The City has not yet reached a population of 12,200. As noted in Section 2. Housing Needs Assessment, the City's population in 2013 was 10,317. Annually, the City Council allocates a number of `beater equivalency units" (WEUs), some for single-family and some for multifamily development. The annual number is the maximum number of pemlits (residential and commercial) that may be approved. The annual number has varied over time but has never been reached or exceeded during a single year, even during the years of greatest growth (2005-2007). The number of WEUs available per year is based on water availability. Partially in response to the current drought, the number of WEUs allocated for 2014 is 50, a relatively low number compared to overall trends since adoption of the ordinance. The City Council has the authority to roll over unused WEUs to the subsequent year. If the number of WEUs allocated annually from 2014 to 2019 is conservatively estimated as 50, which would allow the approval of a maximum of 250 residential units during the planning period, more than enough to accommodate the City s RHNA of 155 units. On March 11, 2014, the Morro Bay City Council adopted Ordinance No. 584, which amends the revoked Zoning Ordinance Chapter 17.50 (Affordable Housing, Density Bonuses and Incentives) and replaced it in its entirety with density bonus provisions that are consistent with current state law. Key provisions of the new density bonus regulations include: • New construction of five or more units may receive a density bonus provided they satisfy one or more of the following criteria: o At least 10 percent of the units are designated for low-income households. o At least 5 percent of the units are designated for very low-income households. o At least 10 percent of the units are designated for moderate -income households, provided that all units in the development are offered to the public for purchase. JUNE 2014 62 CITY OF MORRO BAY • • HOUSING ELEMENT UPDATE 100 percent of the units are designated for senior citizens as defined in Section 51.3 and 51.12 of the Civil Code or mobile home park that limits residency based on age requirements for housing for older persons pursuant to Government Code Section 798.76 or 799.5. Donation of land to the City consisting of at least I acre, or of sufficient developable acreage and zoning classification to permit construction of at least 40 units, and not less than 10 percent of the residential units in the proposed development, that are affordable to very low-income households • The density bonus will be calculated as follows: o A 20 percent density bonus, increasing by an additional 1.5 percent for each additional percent increase in low-income units above the initial 10 percent threshold- o A 20 percent density bonus, increasing by an additional 2.5 percent for each additional I percent increase in very low-income units above the initial 5 percent threshold. o A 20 percent density bonus for senior citizen housing developments. o A 5 percent density bonus, increasing by an additional 1 percent for each additional • percent increase in moderate -income units above the initial 10 percent threshold. o When an applicant proposes to construct a housing development that is eligible for a density bonus and includes a child-care facility that will be located on the premises of, or adjacent to, the housing development, the City will grant either an additional density bonus that is an amount of square feet of residential space that is equal to or greater than the square footage of the child-care facility or an additional concession or incentive that contributes significantly to the economic feasibility of the construction of the child-care facility. o The maximum density bonus is 35 percent when a project provides either 11 percent very low-income units, 20 percent low-income units, or 40 percent moderate -income units. All density bonus calculations resulting in fractional units are rounded up to the next whole number of housing units. Upon request of a developer eligible to receive a density bonus, the City will grant the following parking standards, inclusive of handicapped and guest parking, for the entire project: o Zero- to one -bedroom units — 1 on -site parking space per unit o Two -bedroom units or more — 2 on -site parking spaces per unit is I CITY OF MORRO BAY JUNE 2014 63 HOUSING ELEMENT UPDATE The City may also provide other incentives for the development of affordable housing including reduced site development standards, deferred or waived fees, direct financial aid, and other regulatory developer incentives. • Where affordable housing units have been provided per the requirements of Chapter 17.50, the developer must ensure both the continued availability of affordable units for a minimum of 30 years and project phasing, including timing of completion, and rental or sale of affordable housing units is required to occur concurrently with nonrestricted units. Provisions for a Variety of Housing Housing element law specifies that jurisdictions must identify adequate sites to be made available through appropriate zoning and development standards to encourage the development of various types of housing for all economic segments of the population. This includes single-family housing, multi -family housing, manufactured housing, mobile homes, emergency shelters, and transitional housing, among others. Table 41 summarizes those housing types. • JUNE 2014 CITY OF MORRO BAY is 64 HOUSING ELEMENT UPDATE Housing Types Permitted Single -Family Dwellings P P P Zone P P Districts P P MUP Duplexes P P P MUP Multi -Family Dwellings CUP P P MUP Second Units/Granny Flats P P P P P P Manufactured Homes P P P P MUP Elderly Housing Units Pt Community Housing Project CUP CUP CUP CUP Mobile Home Parks CUP CUP CUP Rooming and Boarding House CUP CUP Residential Care Facilities2 P P P P Employee Housing (6 or fewer) P P P P P Employee Housing (36 or fewer) P P Transitional and Supportive Housing P P P P P P P Emergency Shelters P Single -Room Occupancy Units P P Source: Morro Bay Zoning Ordinance, Accessed March 2014 P - Permitted by right CUP- Conditional use permit required MUP- Minor use permit required Notes: 1. Permitted only when affordable to lour and/or moderate -income families. 2. Residential care facilities serving 6 or fewer persons are permitted in all residential districts by right, larger group homes of more than 6 and up to 12 persons requires a minor use permit, and facilities serving more than 12 persons require a conditional use permit. The California Health and Safety Code (Section 50801) defines an emergency shelter as "housing with minimal supportive services for homeless persons that is limited to occupancy of six months or less by a homeless person. No individual or households may be denied emergency shelter because of an inability to pay." Legislation (Senate Bill 2 (Cedillo, 2007)) requires jurisdictions to allow emergency shelters and supportive and transitional housing without a conditional use permit. The City's Zoning Ordinance currently allows emergency shelters pursuant to a conditional use permit. The City must identify a • CITY OF MORRO BAY JUNE 2014 65 HOUSING ELEMENT UPDATE zone(s) where emergency shelters will be allowed as a permitted use without a conditional use permit or other discretionary permit. The zone or zones identified must have land available to accommodate an emergency shelter. On March 11, 2014, the Morro Bay City Council adopted Ordinance No. 584, which amends the Zoning Ordinance to allow emergency shelters by right in the Central Business (C-1) district. The C-1 district is close to services (shopping and public services) and transit stops. Within this zone, the City has identified 3 acres on two parcels of land located next to each other that will allow adequate capacity for the provision of an emergency shelter. Supportive housing is defined by Section 50675.14 of the Health and Safety Code as housing with linked on -site or off -site services with no limit on the length of stay and that is occupied by a target population as defined in Health and Safety Code Section 53260 (i.e., low-income person with mental disabilities, AIDS, substance abuse or chronic health conditions, or persons whose disabilities originated before the age of 18). Services linked to supportive housing usually focuses on retaining housing, living and working in the community, and/or health improvement. Transitional housing is defined in Health and Safety Code Section 50675.2 as rental housing for stays of at least six months but where the units are recirculated to another program recipient after a set period. It may be designated for a homeless individual or family transitioning to permanent housing. This housing can take many structural forms such as group housing and multi -family units and may include supportive services to allow individuals to gain necessary life skills in support of independent living. Pursuant to Senate Bill (SB) 2, transitional and supportive housing types are required to be treated as residential uses and subject only to those restrictions that apply to other residential uses of the same type in the same zone. On March 11, 2014, the Morro Bay City Council adopted Ordinance No. 584, which amends the Zoning Ordinance to add the current definition of transitional housing and supportive housing, as stated in this document, and lists these as permitted uses in all zoning districts allowing residential uses. Extremely low-income households typically comprise persons with special housing needs, including but not limited to persons experiencing homelessness or at risk of homelessness, persons with substance abuse problems, and farmworkers. Assembly Bill 2634 (Lieber, 2006) requires the quantification and analysis of existing and projected housing needs of extremely low-income households. Housing elements must also identify zoning to encourage and facilitate supportive housing and single -room occupancy units (SROs). On March 11, 2014, the Morro Bay City Council adopted Ordinance No. 584, which amends the Zoning Ordinance to explicitly define and allow single -room occupancy units in the Central JUNE 2014 66 CITY OF MORRO BAY • HOUSING ELEMENT UPDATE Business (C-1) and Mixed Commercial/Residential (MICR) districts. In addition, Program H-3.1 states that the City will continue to work with the private sector, nonprofit agencies, and to secure funds through state and federal programs for development of new lower -income housing and rehabilitation of existing lower -income households. As funding becomes available, the City will prioritize a portion of the funds to encourage the development of housing for extremely low-income households. On March 11, 2014, the Morro Bay City Council adopted Ordinance No. 584, which amends the Zoning Ordinance to remove constraints to housing for farmworkers. The Zoning Ordinance now defines "employee housing" as housing that includes but is not limited to farmworker housing. Employee housing for six or fewer workers will be deemed to be a single-family structure with a residential land use and will be treated the same as a single-family dwelling of the same type in the same zone. The permitted occupancy in employee housing in a zone allowing agricultural uses will include agricultural employees who do not work on the property where the employee housing is located, and may consist of no more than 36 beds in a group quarters or 12 units or spaces designed for use by a single family or household on land zoned for agricultural uses. Such employee housing is considered to be an activity that in no way differs from an agricultural use. Ordinance No. 584 also amended Chapter 17.24 of the Zoning Ordinance to allow employee housing with a maximum • of 36 beds in a group quarters or 12 units or spaces in the Agricultural (AG) and Suburban Residential (R-A) districts. • Housing for Persons with Disabilities Housing for Disabled Persons Housing element law requires localities to include the following in the preparation and adoption of the housing element: (1) an analysis of potential and actual constraints on housing for persons with disabilities; (2) demonstration of efforts to remove governmental constraints; and (3) inclusion of various programs or a means of reasonable accommodations for housing designed for persons with disabilities. As part of the Housing Element process, the City analyzed its Land Use and Zoning Ordinance, permitting process (conditional use permit process and variance), development standards, and building codes to identify potential constraints for the development of housing. %C''here impediments are found, the Objectives, Policies, and Programs section of the Housing Element proposes specific actions and implementation schedules to remove such impediments. The following section summarizes findings from the constraint analysis and proposed programs. Zoning and Land Use State and federal housing laws encourage an inclusive living environment, where persons of all walks of life have the opportunity to find housing suited to their needs. The Zoning Ordinance allows a range of housing types and prices for special needs groups, and allows foster homes and rest homes pursuant to a conditional use permit. The Zoning Ordinance does not have geographical CITY OF MORRO BAY JUNE 2014 67 OUSING ELEMENT UPDATE u spacing/siting requirements for nursing homes, shelters, or foster care homes. Although these classifications allow special needs housing, the City currently provides housing opportunity for disabled persons. The City complies with state laws under the Community Care Facilities Act. Residential care facilities serving 6 or fewer persons are permitted in all residential districts by right, larger group homes of more than 6 and up to 12 persons require a minor use permit, and facilities serving more than 12 persons require a conditional use permit. To further comply with SB 520, the City defines family as one or more persons occupying premises and living as a single housekeeping unit who not need be related by blood as distinguished from a group occupying a hotel, club, or fraternity or sorority house. The City enforces Title 24 of the California Code of Regulations, which are regulations on access and adaptability of buildings to accommodate persons with disabilities. The City inspects plans to ensure compliance with Americans with Disabilities Act (ADA) standards. The City's building code requires new residential construction to comply with the ADA, which requires design standards for "qualified" buildings consisting of three or more units. These requirements include the incorporation of (1) adaptive design features for the interior of the unite (2) accessible public use and common use portions; and (3) sufficiently wider doors to allow wheelchair access. Currently, Morro Bay uses the 2010 edition of the California Building Code (updated every three years). The City has not adopted unique restrictions for disabled housing, such as minimum distances between housing • for persons with disabilities, or other regulations that could constrain the development, maintenance, or alteration of housing for disabled persons. The City does not require new housing projects to incorporate universal design standards, which are beyond the standards required by state and federal law. In addition, the Zoning Ordinance does not have occupancy limitations, which are preempted by state law. The Zoning Ordinance also does not define a family in a way that would limit the number of persons per household or limit the relationship of the household members. The Zoning Ordinance does not specify the types of development standards for special needs housing or unique performance standards. However, convalescent homes and senior housing are allowed a reduced parking requirement of only one space for every three beds plus employee parking and half a space for seniors, respectively. Permitting Procedures To rehabilitate housing for disabled access, requests for modifications (e.g., ramps up to 30 inches in height) do not require a building permit and are processed over the counter. However, Section 17.48.120 of the Morro Bay Municipal Code states that open, uncovered, raised porches, landing places, or outside stairways may project not closer than 3 feet to any side or tear lot line, and not exceeding 5 feet into any required front or street yard. City staff and the City Council have administratively allowed ramps to allow persons with disabilities access to housing. The City accommodates such requests by expediting the processing time for issuing a permit so a private homeowner can build a ramp. Many requests are reasonable and can be handled administratively over the counter; the City may wish to modify this code to exempt housing for persons with disabilities. The City utilizes a standard conditional use permit process (approval by the Planning JUNE 2014 68 CITY OF MORRO BAY • • HOUSING ELEMENT UPDATE Commission) to ensure that facilities are sited and operated in a manner compatible with surrounding land uses. Building and Housing Codes The Morro Bay Building Code is based on the California Budding Code (CBC), which determines the minimum residential construction requirements for all of California. The CBC ensures safe housing and is not considered a significant constraint to housing production. Like most cities, Morro Bay responds to code enforcement problems largely on a complaint basis. The usual process is to conduct a field investigation after a complaint has been submitted. If the complaint is found to be valid, the seriousness of the problem is assessed. The more serious the violation, the more urgent the City's action. The City encourages voluntary compliance through letters and phone calls and/or site visits. If compliance cannot be attained in this manner, the City may take more aggressive action through the legal process. The City's philosophy has been to mitigate serious health or safety problems, but to allow the property owners reasonable time and flexibility to comply. The City seeks to balance the need to ensure safe housing against the potential loss of affordable housing that might result from overly strict enforcement. There is no indication that code enforcement actions have unnecessarily • restricted the use of older buildings or inhibited rehabilitation. • While permit processing times in Morro Bay do not appear excessive, this element does include a policy stating the City's intent to expedite the processing of all development proposals that include affordable housing. Program H-6.5 states that the City will continue to expedite the permit processing procedure as an additional incentive for the development of affordable housing. Assuming a full planning staff of two planners, coastal development permits and use permits would take between 2 to 3 months for both single- and multi -family projects, including notice periods for coastal development permits. One method to reduce this time significantly is to combine the 10-day notice of intent to issue a pemut with the 10-day appeal period. Environmental review or CEQA review can add months to the timeframe. This part of the process is out of the City's control. Also, because of the City's coastal location, there are many sites within proximity to environmentally sensitive habitat that will require CEQA review that can add additional time to the process outside of the City's control. 2014 processing times were not excessive and don't significantly impact the cost of construction or the ability to build. Table 42 provides a summary of typical processing times by household type. CITY OF MORRO BAY JUNE 2014 69 HOUSING ELEMENT UPDATE • Tentative and Parcel Coastal Development Coastal Development Map (division of a Permit Permit property into four or Typical Approval fewer parcels) Requirements Use Permit Tentative and Final Map (division of Building Permit Building Permit property into five or more parcels) Total Est. Time 2-3 months 4-5 months 8-18 months Source: City of Morro Bay, 2014 Development Review The following is a description of the development review process for single- and multi -family developments in Morro Bay. Because the entire city is within the coastal zone, no proposals for construction of a new single-family or multi -family unit can be ministerial. First it must be determined whether the project is within the City's or the Coastal Commission's • jurisdiction and whether it is within the California Coastal Commission appeal jurisdiction. New Residences East of Main Street Administrative coastal permits will be required for construction of all new single- or multi -family residences until the City obtains the approval of the Coastal Commission to exempt the area east of Main Street to the Local Coastal Program Urban/Rural Boundary except those areas within a Coastal Commission appeal jurisdiction, an ESH overlay zone, or on properties of 10 percent of greater slopes from the requirement of obtaining a coastal development pemtit for the purpose of construction of new, one-story single-family residences and two-story residences when the second floor is less than 40 percent of the lot area. The Public Services Director is authorized to take whatever steps are necessary to obtain Coastal Commission approval. West of Main Street • Outside appeal jurisdiction Administrative coastal permits are required for properties located west of Main Street and not within the appeal jurisdiction or ESH zone. • Within appeal jurisdiction JUNE 2014 CITY OF MORRO BAY 70 • HOUSING ELEMENT UPDATE Regular coastal permits are required for properties located west of Main Street and within the appeal jurisdiction or ESH zone. Administrative Coastal Development Permits Developments and/or uses requiring an administrative coastal development permit The Public Services Director may process as an administrative permit any coastal development permit application specifically for the following developments and/or uses and provided that the development and/or use is not located in the coastal development permit appeal area. • Improvements to any existing structure including minor additions to existing commercial, industrial, or multi -family structures that do not result in an intensification of use or require a conditional use permit, or add any additional units or create any environmental impacts and which do not require a subdivision map. • Any single-family dwelling. • Development of four dwelling units or less on a residential lot that is not located within the coastal appeal jurisdiction and/or ESH overlay zone and that does not require demolition of • more than two units or a conditional use perritit. Outside the Coastal Appeal -jurisdiction • A final decision on an application for a coastal development pernut for projects outside the coastal development permit appeal area becomes effective after the City's 10-day appeal period has expired unless an appeal of the Public Services Director and/or Planning Commission's decision is filed, or the notice of final action is inadequate as described under Section17.58.080.B of the Zoning Ordinance. Within The Coastal Appeal jurisdiction A final decision on an application for a coastal development permit for projects in the coastal development permit appeal area is effective after the appeal period of 10 working days to the Coastal Commission has expired unless either of the following occur. An appeal is filed; or • Notice of final City action does not meet the requirements set forth in Section 17.58.080.13 of the Zoning Ordinance. The effective date of the City's action may be suspended if either of the above circumstances occurs. CITY" OF MORRO BAY JUNE 2014 71 HOUSING ELEMENT UPDATE is The City will not issue a building permit where a coastal development permit from the Coastal Commission is required until: The applicant has provided the City with a copy of the approved coastal development pemtit and, if applicable, signed plans by the Coastal Commission; and • The applicant ensures the building plans that the City intends to approve are consistent with the plans signed off by the Coastal Commission staff or reflect any plan changes described in written form; or • The applicant provides the City with written verification from the Coastal Commission that a coastal development permit is not required. In addition to these requirements, a conditional use permit is required for any addition that adds more than 25 percent to an existing nonconforming single-family home, or where the site is located within a PD overlay area or where a property is subject to bluff development standards. The City collects various fees from applicants to cover the costs of processing permits, including • fees for planning approvals, subdivision map act approvals, environmental review, public works and plan check services, and building pemvts. In addition to these service fees associated with development processing, the City and the regional transportation agency charge several impact fees to offset the future impact of development on regional traffic and circulation, parks, and libraries. For a detailed list of all fees, see Appendix A. The City's Green Building Incentive Program provides eligible projects with building and plan check fee rebates (see the Energy Conservation Opportunities section of the Housing Element). As a means of assessing the cost that fees contribute to development in Morro Bay, the City has calculated the total fees associated with development of a single-family and multi -family development. As indicated in Table 43, development fees for a 1,500-square-foot residential project run approximately $25,000 per unit, and development fees for a multi -family project are approximately $29,000 per unit for the same unit square footage. The fees for a single-family unit make up about five percent of the total construction costs, and for a multifamily unit fees constitute eight percent of total construction costs. These fees are consistent with other cities in San Luis Obispo County and do not represent a significant financial constraint to new housing development. JUNE 2014 72 CITY OF MORRO BAY • P9 L • HOUSING ELEMENT UPDATE Source: City of Morro Bay 2014; City of Grover Beach Development Permit, 2013 Notes: I Cost is for a I,S00-square foot house unth a taro -car garage i Cost is for a 1, 500-square foot unit 3 Cost for vacant lot included m these numbers and assumed as $300,000 based on search of listings on Truha-com for Morro Bay on March 27, 2014. Site improvement costs include the cost of providing access to the site, clearing the site, and grading the pad area. In the case of a subdivision, such costs may also include major improvements such as building roads and installing sewer, water, and other utilities. As with land costs, several variables affect costs, including site topography and proximity to established roads, sewers, and water lines. Engineering and other technical assistance costs are usually included with site improvements, as these services are required to ensure that development is constructed according to established codes and standards. The City requires that curbs, gutters, and sidewalks be placed along the frontage of every multi- family lot (R-3 or above) on which new construction or significant alteration is done. These improvements may be required for single-family lots under specific circumstances. These and other site improvement costs are typical of all cities in California and do not impose a significant constraint on the development of housing in Morro Bay. The City does not impose any unusual requirements as conditions of approval for new development. City regulations are intended to generally encourage high -quality private development and new construction. Traffic fees are calculated by square footage: single-family (including garage square footage) is $1.86 per square foot and multi -family (does not include garage square footage) is $2.90 per square foot. CITY OF MORRO BAY JUNE 2014 73 HOUSING ELEMENT UPDATE r�L On March 11, 2014, the Mono Bay City Council adopted Ordinance No. 584, which revoked Chapter 17.50 (Affordable Housing, Density Bonuses and Incentives) of the Municipal Code and replaced it in its entirety with inclusionary housing provisions that are consistent with current state law. Provisions in the new section include: All new residential developments of five or more for -sale units must provide a minimum of one inclusionary unit or 10 percent of the total number of units, whichever is greater, to be affordable to families with incomes in the very low-, low-, or moderate -income ranges, depending on the needs of the City at the time of approval. The City requires the developer to provide affordable housing on -site where feasible. If the City determines that this is not feasible based on a detailed economic analysis prepared by a City - contracted consultant at the cost of the applicant, the City requires the developer to provide such housing at another location in Morro Bay. If the City determines that it is not feasible for the developer to provide such affordable housing off -site, the developer is required to pay a fee in lieu of providing such housing • Fees accepted for affordable housing are used by the City to construct or assist in the construction of housing for rent or sale to very low-, low-, and moderate -income families or to • purchase land for the purpose of affordable housing or to assist very low-, low-, and moderate - income families to afford adequate housing or for other measures to provide housing for low - and moderate -income families. NON -GOVERNMENTAL CONSTRAINTS Non -governmental constraints consist of land costs, the environment, vacancy rates, construction costs, and availability of financing. Land costs vary substantially based on a number of factors. The main determinants to land value are location and zoning, though the size of a parcel will also affect price. Land that is conveniently located in a desirable area zoned for residential uses will likely be more valuable and more expensive than a remote piece of land zoned for agricultural uses. Based on DataQuick, the median home sale price in Morro Bay was approximately $429,500 in 2013. Of this cost, more than half could be attributed to the land cost. Land costs present a significant constraint to the production of affordable housing in the city. JUNE 2014 74 CITY OF MORRO BAY • • HOUSING ELEMENT UPDATE The price of land in Morro Bay varies considerably depending on a number of factors, including location and availability of City services. The city's location adjacent to the ocean makes Morro Bay an extremely desirable place to live. This creates a large demand for land which, when coupled with voter -imposed growth controls, can significantly increase the cost of developable land. In 2014, according to a land cost survey done by PNIC, undeveloped residential lots ranged from $249,000 to $1,750,000. There were a total of 15 vacant lots for sale as of March 2014. Construction costs are those incurred in actually constructing a dwelling unit. As with other land development costs, construction costs vary. Important determinants of construction costs include the amenities built into the unit, materials used, the prevailing labor rate, and the difficulty of building on the site. In Morro Bay, expansive soils may necessitate more extensive footings for houses, which can increase construction costs. Multiple -family residences such as apartments can generally be constructed for slightly less than single-family residences. According to Building- cost.net, a housing construction cost resource that calculates the total estimated cost of building a new home (land costs not included), single-family home construction costs in 2014 were estimated at approximately $105 per square foot for average quality construction. • The estimated total construction cost of a 1,500-square-foot home with four walls, an attached garage, central heating and air, and average building materials was $169,695. • The only recent multi -family units constructed in the city have been high -end units and therefore may not reflect the true cost of developing units for lower -income residents. However, units were constructed in Grover Beach in 2013 that better reflect that cost. Although Grover Beach land costs may be different from those in Morro Bay, given the proximity of the cities, construction costs are comparable. The four -unit budding constructed in Grover Beach has a building value of $372,573, or $93,143 per unit. The cost of borrowing money to finance the construction of housing or to purchase a house affects the amount of affordably priced housing in Morro Bay. Fluctuating interest rates can eliminate many potential homebuyers from the housing market or render a housing project that could have been developed at lower interest rates infeasible. When interest rates decline, sales increase. The reverse has been true when interest rates increase. Over the past decade, there has been a dramatic growth in alternative mortgage products, including graduated mortgages and variable rate mortgages. These types of loans allow homeowners to take advantage of lower initial interest rates and to qualify for larger home loans. However, variable rate mortgages are not ideal for low- and moderate -income households that Eve on tight budgets. In addition, the availability of variable rate mortgages has declined in the last few years due to greater regulation of housing lending markets. Variable rate mortgages may allow lower -income households to enter into homeownership, but there is a definite risk of monthly housing costs rising above the financial means of that household. Therefore, the CITY OF NIORRO BAY JUNE 2014 75 HOUSING ELEMENT UPDATE fixed interest rate mortgage remains the preferred type of loan, especially during periods of low, stable interest rates. Table 44 illustrates interest rates as of March 2014. The table presents both the interest rate and the annual percentage rate (APR) for different types of home loans. The interest rate is the percentage of an amount of money which is paid for its use for a specified time, and the APR is the yearly percentage rate that expresses the total finance charge on a loan over its entire term. The APR includes the interest rate, fees, points, and mortgage insurance and is therefore a more complete measure of a loan's cost than the interest rate alone. However, the loan's interest rate, not its APR, is used to calculate the monthly principal and interest payment. Source: unow.wellsfargo.eom, March 2014 Notes: Conforming loan is for no more than $417, 000. A jumbo loan is greater than $417, 000. JUNE 2014 76 CITY OF MORRO BAY • • • • HOUSING ELEMENT UPDATE 5. ENERGY CONSERVATION OPPORTUNITIES This section describes opportunities for conserving energy in existing homes as well as in new residential construction. The factors affecting energy use, conservation programs currently available in Morro Bay, and examples of effective programs used by other jurisdictions are discussed. Factors Affecting Energy Use The factors that affect residential energy use must be understood in order to identify opportunities for conservation. One such factor is the size of the population. At any given time, the larger the population, the more electricity is consumed. But over time, new conservation mandates and technological advances decrease the per capita consumption of energy. This means that the total energy use increases at a slower rate than population. The price of energy also has a significant effect; the more expensive it becomes, the more incentive people have to conserve. The local climate has a large effect on residential energy use. In general, Morro Bay has a mild climate typical of many coastal communities. Summers are warm with early morning fog, and winters are only moderately cold. Prolonged periods of cold weather cause increased energy use for space and water heating. This situation is particularly true if homes are not well insulated. • The efficiency of household appliances also affects energy use. Older appliances may not operate as efficiently as when they were new, and many older appliances were built when energy conservation was not considered important. Significant energy -efficient design advances have been made in refrigerators, stoves, and furnaces. • The following energy conservation programs are implemented in Mono Bay: • The California State Building Standards Code (specifically Title 24) requires that all new residential development comply with several energy conservation standards. The standards require ceiling, wall, and concrete slab insulation, vapor barriers, weatherstripping on doors and windows, closeable doors on fireplaces, no continuous burning gas pilot fights, insulated heating and cooling ducts, water heater insulation blankets, swimming pool covers and timers, certified energy -efficient appliances, etc. All new construction in Morro Bay must comply with Title 24. • The California Energy Commission (CEC) has developed a set of energy efficiency guidelines for local planning agencies. As part of those guidelines, the CEC addresses building efficiency beyond the Title 24 standards. The City of Mono Bay may wish to include these guidelines in its building code. • The City "Green Building Incentive Program" provides incentives for green and energy - conserving projects. The City has a green building kiosk at the public services counter, maintained b} SLO Green Build, that provides educational materials relating to green building CITY OF NIORRO BAY JUNE 2014 77 HOUSING ELEMENT UPDATE • and energy conservation. The City encourages residents to participate in energy efficiency retrofit programs by providing information, maintained by San Luis Obispo County Energy Watch, containing rebates and incentives relating to energy efficiency retrofits, at the public services counter. On January 14, 2014, the Morro Bay City Council adopted the City's Climate Action Plan. The Climate Action Plan identifies strategies to reduce GHG emissions and focuses, in part, on reducing energy use from the built environment. The Climate Action Plan includes measures to encourage energy efficiency outreach and incentive programs, energy audit and retrofit programs, income -qualified energy efficient weatherization, incentives for exceeding Title 24 building energy efficiency standards, small scale on -site solar photovoltaic, and income -qualified solar photovoltaic. • Income -qualified Morro Bay homeowners are also eligible for no -cost solar installations through the nonprofit group Grid Alternatives. Examples of Programs from Other Jurisdictions Land use planning and zoning practices can conserve energy. For example, if the general plan and zoning ordinance encourage residential subdivision in a relatively isolated area, far from commercial facilities such as grocery stores, residents must travel longer distances to take care of their daily • shopping and service needs. Keeping housing and jobs in balance and near each other helps to reduce energy use for commuting. Longer trips usually necessitate using an automobile rather than walking or cycling. Changing the land use pattern can also change energy use patterns. The intent of land use planning measures is to reduce the distances of automobile travel, reduce the costs of construction, and increase the potential for residents to complete shopping and other chores without driving or by driving shorter distances. One example of a land use planning technique for energy conservation is to encourage infill (development on vacant or underused lots) and compact, contiguous development. Morro Bay has a few existing vacant lots for development. As property is annexed to the city to meet the demand for housing, the city boundaries should expand concentrically rather than allowing dispersed development in outlying areas. Mixed -use development should be allowed, particularly in the core areas and along collector roads. Compact development results in the secondary energy savings of embodied energy. Embodied energy is the term used for the energy spent producing the materials and finished products, such as sewer pipes, electrical lines, and paving materials. Minimizing the length of necessary water, sewer, and electricity lines consumes less of those products and decreases the total energy consumption. Compact development also means there can be more convenient and accessible public transit. Efficient intracity transit service requires a minimum of 12 housing units per acre (Calthorpe 1990). The Regional Transit Authority (RTA) provides daily fixed -route service from the Morro Bay area JUNE 2014 78 CITY OF MORRO BAY • • HOUSING ELEMENT UPDATE into Los Osos and San Luis Obispo, where transit riders can connect with other countywide transit sen-ices. The Citv also provides a dial -a -ride service within the city limits. Efficiency in Individual Homes A variety of public and quasi -public programs could be made available in Morro Bay to assist homeowners and renters in retrofitting to improve energy efficiency. The City currently provides the following programs: • Home Investment Partnership Program, which includes energy and water efficiency upgrades as eligible activities. • Toilet Retrofit Program Rebates • Water Efficient Washing Machine Rebate Program The City should encourage energy efficiency in residential construction by offering incentives and negotiating with developers to emphasize energy -efficient construction practices. Developers and consumers often discard long-term savings potential in favor of immediate cost savings. The City currently provides the following incentives: • • Green Budding Incentive Program, which provides eligible projects with building and plan check fee rebates for achieving third -party green budding certification, exceeding 20 percent of Title 24 requirements, renewable energy systems, and green roofs. Energy -efficient, new residential construction can cut energy consumption in the home by up to 50 percent. Energy -efficient home construction and retrofits should contain some or all of the following: • Double -pane windows (two panes of glass enclose a vacuum -tight space that does not allow heat and cold to transfer as quickly as it does in a window with a single pane of glass) • Attic insulation greater than R-19 (soft, fiberglass insulation is given an "R" rating based on its capacity to insulate an area; a higher R value indicates greater insulation capability) • Rigid attic insulation (generally a compressed Styrofoam insulation with an R-30 value) • Additional wall insulation (older homes may not have insulated walls) • Fluorescent indoor fighting (a standard, incandescent light bulb uses more energy) • Dimmer switches and task lighting (dimmer switches allow lower lighting levels and less electricity use, while task lighting directs fight to necessary areas without wastefully lighting a larger area) CITY OF MORRO BAY 79 JUNE 2014 HOUSING ELEMENT UPDATE • • Halogen outdoor lighting (halogen, like fluorescent, is more efficient than incandescent light) • Lighting motion detectors that turn on lights only when they detect a person in the room or area • Shade trees along southern and western exposures, and glazing to reduce the heat from windows on hot summer days • Solar screens that reduce the amount of heat from solar radiation coming through windows • Evaporative cooler, which uses less energy than air conditioner • Microwave oven, which uses less energy than an electric or gas oven • Gas (rather than electric or propane) water heater and range/oven • Weatherized windows and doors that do not have cracks to cause drafts • Pools and/or hot tubs with integrated cleaning and heating systems (including pool covers, active solar heating, and efficient filters, pumps, and motors) • Energy use automatic timers that provide energy use only when it is necessary • • Drip irrigation system that conserves water and reduces the energy needed for pumping water • Drought -tolerant landscaping • Active solar elements and passive solar design • Energy -efficient appliances (in new construction and replacing older appliances in existing homes) • Storm windows to cut back on heat loss through windows during the winter • Reflective film on south -facing windows to minimize heat gain during the summer • Individual meters for gas, electricity, and water (to encourage conservation) in multi -family units The City can also employ policies that encourage solar energy technology in both retrofits and new construction. There are two distinct approaches to solar heating. active and passive. Active systems use mechanical equipment to collect and transport heat —the relatively common roof plate collector system used in solar water and space heaters. Collectors can contain water or air that is pumped through conduits and heated, then piped to the spaces to be heated or to a water heater tank. JUNE 2014 80 CITY OF MORRO BAY • • • HOUSING ELEMENT UPDATE Conversely, passive solar systems collect and transport heat through non -mechanical means. Essentially, the structure itself becomes part of the collection and transmission system. Certain types of building materials absorb solar energy and can transmit that energy later. Passive systems often employ skylight windows to allow sunlight to enter the room and masonry walls or walls with water pipes inside to store the solar heat. This heat is then generated back into the room when the room cools in the evening. The best method to encourage use of active solar systems for heating and cooking is to not restrict their use in the zoning and building ordinances and to require subdivision layouts that facilitate solar use. Programs H-22.1 through H-22.6 are proposed to address energy conservation and efficiency in the City. CITY OF NIORRO BAY JUNE 2014 81 HOUSING ELEMENT UPDATE This page intentionally left blank. • • JUNE 2014 CITY OF MORRO BAY I • 82 u • f" u :J a u G V [ Q U U u O y y C T u u u b u o -'_' O d' o v R E u ° a'o o a u y C m a v o r o E �'� y U C u o> a U C OAF 0 0 0 0 o 0 U E m-� m ay C5 o'G0 o n u °' p• u o v.0 u po a Cd-0M m b a bvNN .q o GLo .�TL u EC C > > O uO Uo0a�vo°Fo C OuC Uo> U w v V ro y > O Qm '-U' C OU P. y y .O CL zoo, V % ° •o u > ca C O u A a� 00 v y O y m C y mum« cui 0' 3o w m v 3 m o vo .0 •�" O Z'O U y m V y U .0 u v 'm � A �. C m P �v�" �vrV0 C .� u u .0 q ov � [�' W co 7 q u 'A .0 b u O 0.m�.U.O °M °w 0 Ole p' o� q U 7 su. 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E Gb«UU13 b� U wo cc 'd •LV" a mu 00 .0 m H•� U u CM U .� ... ., Ap E v ' « «.� ¢ 01 UU= 1] o'u a s Cb p u E° a v u x r p U y a+ EO 0.0 ;;Uyy ..p� y .+ m y ca U CL 0.0 b aCi a,Q v a a u a '� o c 8 of u E .vc .� oo m 0 ao qm 0. 3 o a r m$o M '"o il m O " 0. v u 0 C •o .~ DUCd0to g U�QCV EvC o o 1 m 0 OG r orom `PUO On��C❑❑ m x0 p pE�'x'�UoAy� x«�«xm5 C x«E g S3 a TGm O�� m v C v a.u'v" uU od°7 0. aw d Ucv u a p v 7 .� m {i C U ."i u p o y .w- y Okv C m E g O u[ O•« esu r" q O .0 M .i O• V •^. O .0 0.F N C "0 0.4 O�� u .0 OGFG.. aFap0.UF 0.E- F.FW"C.�fYE- HOUSING ELEMENT UPDATE This page intentionally left blank. • U JUNE 2014 CITY OF MORRO BAY • 114 G l J HOUSING ELEMENT UPDATE State law requires that the Housing Element contain a "statement of the community's goals, quantified objectives and policies relative to the maintenance, improvement and development of housing." This chapter describes the proposed goals, objectives, policies, and implementation programs of the Housing Element for the City of Morro Bay. Dates shown in the "Time frame" indicate the scheduled implementation of the program, which will be in effect from that time through the duration of the planning period For the Housing Element, the term "second unit" is interchangeable with "granny unit" and "accessory unit." The term `lower -income groups" is interchangeable with the extremely low-, very low-, low-, and moderate - income categories. 1. Housing Supply Objective: Provide a continuing supply of affordable housing to meet the needs of existing and future Mono Bay residents in all income categories. Policy H--1 (Fair Share) Maintain land use policies that allow residential growth consistent with the availability of adequate infrastructure and public services. Program H-1.1 The City will give the highest priority for residential development to affordable housing projects. These projects will automatically be allowed first priority for the allocation of new residential growth in each year. The priority for affordable units will also include the allocation of water and other resources as consistent with the Local Coastal Plan. Responsible Agency/Department Time Frame: Funding: Program 11-1.2 Public Services Department Annually General Fund To ensure there is a sufficient supply of multi -family zoned land to meet the City's Regional Housing Needs Allocation (RHNA), the City will help facilitate lot consolidations to combine small residential lots into larger developable lots by annually meeting with local developers to discuss development opportunities and incentives for lot consolidation to accommodate affordable housing units. As developers/owners approach the City interested in lot consolidation for the development of affordable housing, the City will offer the following incentives on a project —by -project basis: CITY OF MORRO BAY 115 JUNE 2014 HOUSING ELEMENT UPDATE JUNE 2014 • Allow affordable projects to exceed the maximum height limits, • Decrease setbacks, and/or • Reduce parking requirements. The City will also consider offsetting fees (when financially feasible) and concurrent/fast tracking of project application reviews to developers who provide affordable housing. Responsible Agency/Department.Public Services Department Time Frame. Ongoing, as projects are processed through the Planning Division. Annually meet with local developers to discuss development opportunities and incentives for lot consolidation.. Funding. • Geneml Fund Program H-1.3 To ensure affordable multi -family projects meet maximum densities, the City will continue to implement procedures with objective standards to promote flexibility in development standards (height, parking, and setbacks) and promote the use of density bonuses to increase densities. The City will biannually review the multi -family development standards in the Zoning Ordinance and revise as necessary to ensure they don't act as a constraint to the development of affordable housing in the city. The City will give priority to projects that provide extremely low-, very low-, and low-income housing. Responsible Agency/Department- Time Frame. Funding: Program H-1.4 Public Services Department Work with developers on a case -by -case basis to provide flexibility in development standards and promote density bonuses to increase densities as projects are processed through the Planning Division and Bi-annually review the multifamily development standards in the Zoning Ordinance. General Fund In order to create a vibrant, pedestrian- and bicycle -friendly small urban atmosphere in the downtown area and ensure optimal access to services and public transportation, the City will encourage the development of new high -density housing in and adjacent to the downtown commercial district. To facilitate this goal, the City will inventory vacant and underutilized lots in and adjacent to the downtown 116 CITY OF MORRO BAY • f.� U • HOUSING ELEMENT UPDATE business district, identify sites or areas where re -zoning to high -density residential or mixed use categories might be desirable and modify the City's zoning map as appropriate. Responsible Agency/Depamnem City CoumA Public Services Department Time Frame. Conduct inventory by July Vl& If decision is made to revise Zoning Ordinance, revise by December 2018. Funding-. General Fund Program H-1.5 The City will consider establishing minimum residential density requirements for the R-3, R-4, and MCR zoning districts. Responsible Agency/Department. City Council, Public Services Department Time Frame. Prepare recommendation on whether to revise zoning by July 2018. ff decision is made to require minimum densities, revise Zoning Ordinance by December 2018. Fending: General Fund Program H-1.6 The City will explore the option of expanding the number of liveaboard slips to increase the variety of housing types offered in Morro Bay. Responsible Agency/Department Public Services Division, Harbor Department Time Frame. Investigate feasibility of expanding liveaboard by December 2015 Funding. General Fund Policy H-2 (Water Resources) Continue to pursue additional water resources identified in the Water Management Plan. Progxgm H-2.1 The City will, to the extent feasible, allocate water resources to allow maximum growth to hill buddout consistent with limitations contained in the certified Local Coastal Plan, General Plan, and Ordinance 266 as amended. At least annually, the Public Services Department will provide an update to the City Council on available water supplies, projected demand under the General Plan, and the status of projects to ensure adequate supply to meet the needs of the community in accordance with the Water Management Plan, the General Plan, and this element. CITY OF MORRO BAY 117 JUNE 2014 HOUSING ELEMENT UPDATE Responsible Agency/Depamnent• Pubfic Services Department Time Frame. Annually Funding. • Dater Fund Policy H-3 (Funding) To the extent feasible, solicit housing assistance funds from the state and federal governments in conjunction with nonprofit and for -profit developers to be used in the construction of new and rehabilitation of existing secondary units and very low- and low- income housing units. Program H-3.1 The City will continue to work with the private sector, nonprofit agencies and to secure funds and be supportive of others pursuing funds through state and federal programs for development of new lower -income housing and rehabilitation of existing lower -income households (including mobile homes). As funding becomes available, the City will prioritize a portion of the funds to encourage the development of housing for extremely low-income households. In addition, in light of budget constraints and reduced staffing levels, it is unlikely that the City will pursue grant funds for affordable housing acquisition or new construction projects. Housing grant funds will be pursued for energy efficiency audits and retrofits and infrastructure repairs. Pursuit of funds for rehabilitation will occur when it is determined there is a sufficient level of interest in this type of program. Responsible Agency/Depatunem: public Services Department Time Frame. Apply for funding annually Funding: CDBG, HOME, others Policy H-4 (Methods) Continue to explore alternative methods for increasing its affordable housing stock with the goal of providing adequate extremely low-, very low-, and low-income, senior, and ADA accessible housing. JUNE 2014 Program H-4.1 The City will contact HCD, housing advocates, affordable housing providers, and other appropriate information resources on an annual basis in order to stay current with the latest options for providing affordable housing. Responsible Agency/Department planning Division Time Frame. Annually Funding. General Fund 118 CITY OF MORRO BAY r� • • HOUSING ELEMENT UPDATE Program H-4.2 Most recent housing developments in Mono Bay have not been constructed to the maximum densities allowed by zoning. Market conditions, bank financing, and insurance requirements have favored the construction of single-family detached houses. To increase housing supply and obtain densities closer to those envisioned by zoning policies, the City will do the following: • Implement Section 17.21.70 of the City Zoning Code (Additional Incentives) that offers incentives for developing greater than the minimum densities in the multiple -family zones. The City is sensitive to the loss of multi -family - zoned land to less intensive uses, particularly given the limited number of vacant mull -family sites remaining in Morro Bay and their potential contribution toward meeting the City's housing needs. Responsible Agency/Departrneat.• City Council, Planning Division Time Frame: Ongoing Funding: General Fund Policy H-S (Housing Costs) • Ensure that the City's adopted policies, regulations, and procedures do not add unnecessarily to the cost of housing, while still attaining other important City objectives. • Program H-5.1 The City will review its user charges for public services and facilities to ensure the charges are consistent with the costs of improvements and maintenance. Responsible Agency/Deparaneat. Public Seivices Department, Finance Department Time Frame: Starring in 2015, then even' three [-ears Funding: General Fund Policy H-6.a (General Affordability) Continue to require a percentage of new housing units built in the city be affordable to very low-, loin-, and moderate -income households. Policy H-6.b (Variable Density) In order to encourage development of small units, development of a greater number of residential units than otherwise allowed under the existing land use and/or zoning designation may be permitted, provided that (1) at least 65 percent of the units are developed as studio or one -bedroom units; (2) the population density at full buildout of the project does not exceed the population density that corresponds with the existing land use designation and/or zoning or 1 person for every 500 square feet, whichever is less; and CITY OF MORRO BAY 119 JUNE 2014 HOUSING ELEMENT UPDATE (3) the proposed project complies with all applicable zoning regulations, except as modified by the decision -maker through discretionary review. JUNE 2014 Program H-6.1 The City will continue to implement the inclusionary requirements of Section 17.50 of the Municipal code which requires that all new residential development projects of 5 or more for -sale units provide a minimum of one unit or 10 percent of the total number of units, whichever is greater, to be affordable to families with incomes in the very low-, low- or moderate -income ranges, depending on the needs of the City at the time of approval. The lower -income units may be either for rent or for sale, but shall remain affordable for at least 30 years, or such other term approved by the City, consistent with state law. Responsible Agency/Departnenc City Council/Planning Division Time Frame. Ongoing, as projects are processed through the Planning Department Funding. General Fund Program H-6.2 As an alternative to building inclusionary units, the City will allow a development to pay an in -lieu fee. Currently, the fee amount is determined with the following method: (construction cost x percentage of fee based on project size, where construction costs include all expenses related to the development of housing units, including land, construction, on- and off -site infrastructure, and associated soft costs). The City will conduct an analysis on the current method to determine whether the current fees are appropriate. If they are found to not be appropriate, the City will conduct a nexus study. Once established, the in -lieu fees will be collected and held in an affordable housing trust fund. To ensure any modifications to the City's Inclusionary Program as a result of the nexus study do not adversely impact market -rate housing, the City will also evaluate whether the Inclusionary Program poses a constraint to the development of housing. If this is found to be the case, the City will revise the program to ensure it is not a constraint to development. Responsible Agency/Department- Public Services Department, Finance Department Time Frame. Determine whether fees are appropriate and identify constraints (if needed) by June 2016; make any recommended revisions to the fee cakuladons and Inclusionary Program by December 2016 Funding. General Fund 120 CITY OF MORRO BAY • • • • i LJ HOUSING ELEMENT UPDATE 1 i Z. ii _ 1. � E;11K The City will continue to require affordable housing developments to be designed consistent with the surrounding neighborhood in order to enhance the sense of belonging to the community. Forms, materials, and proportions should be utilized that are compatible with the character of the surroundings. Responsible Agency/Deparbnem, City Council, Pl"ning Division Time Frame.. - ongoing, as projects are processed through the Planning Division Funding: General Fund Program H-6.4 The City will codify neighborhood preservation guidelines for affordable units in Section 17.28.200 of the Morro Bay Municipal Code when the Zoning Ordinance is amended. Responsible AgencylDepartmenC City Council, Planning Division Time Frame: August2015 Fundingr General Fund Program H-6.5 The City may, on a case -by -case basis, allow for modifications/incentives to development standards, such as common access driveways, building height restrictions, parking, distance between buildings, setbacks, lot coverage, screening, varying lot sizes, open space requirements, fast -track permitting, density bonuses, variable densities on multi -family zones property, transfer of development credits, fee assistance, and any other modifications/incentives or combination of modifications/incentives, which are jointly agreed upon by the applicant and the decision -maker, as an incentive for constructing specific affordable housing projects. This is not intended to be an exhaustive list of modifications/incentives available to the applicant and/or decision -maker. The City will prepare public outreach materials, including adding information to the City's website to inform the public of a variety of types of modifications or incentives offered Responsibk Agency/Department Time Frame: Funding: CITY OF MORRO BAY 121 Public Services Department Ongoing, as projects are processed through the Planning Division General Fund JUNE 2014 HOUSING ELEMENT UPDATE Program H-6.6 The City will consider amending the Community Housing Ordinance to require that housing units developed under the terms of this code section be priced for sale or rental to persons of moderate or lower income. Responsible Agency/Depattment. City Council, Pub& Services Department Time Frame: Prepare recommendation on whether to adopt an ordinance by July 2018. Hdecision is made to adopt an ordinance, adopt by December 2018. Funding: General Fund Policy H--7 (Housing Trust Fund) Develop a Housing Trust Fund to be used for the development of affordable housing projects. Program H-7.1 This fund will be used to assist nonprofit and for -profit developers to construct lower -income housing, purchase land, write down land or financing costs, rehabilitate or preserve existing units, prepare other implementation measures consistent with this element, and/or monitor housing policies and programs on an ongoing basis. Assuming that the current market conditions will continue to exist during the 5-year Housing Element time frame, the City estimates that it will assist two to seven units. Responsible Agency/Department. Public Services Department, Finance Department Time Frame. Modify by2012 Funding: General Fund Policy H-8 (Mixed Housing Types) Encourage the mixing of affordable housing throughout the community rather than concentrating affordable units in a few locations. JUNE 2014 122 CITY OF MORRO BAY • HOUSING ELEMENT UPDATE Proaram H-8.1 The City will allow the conversion of older motels to residential use, subject to discretionary review, outside the Visitor -Serving Commercial (C-VS) and Waterfront (WF) zones. Criteria for approving residential uses will be stated in the Zoning Ordinance. These conversions will also receive a priority in the unit allocation fist. Responsible Agencv/Department: City Council, Planning Division Time Frame: Ongoing, codify criteria by August 2019 Funding General Fund Policy H-9 (Mixed Use) Continue to promote a policy of mixed uses by allowing housing in conjunction with compatible commercial uses in appropriate mined -use designations located throughout the city. The allowance of these mixed -use designations will require additional findings to ensure new projects do not change the character of the neighborhood. Proamm H-9.1 The City will develop criteria for determining the appropriate compatible mix of residential and commercial development to ensure neighborhood consistency. • Responsible Agency/Department.Public Sersrces Department Time Frame: Codify criteria b}'June 20M Funding: General Fund Policy H-10 (Secondary Units) Allow for the development of secondary housing units as an affordable housing option throughout the city. Proaram H-10.1 To comply with AB 1866, the City will continue to permit secondary dwelling units ministerially (by right) in all residential zones. An administrative coastal development permit, which does not require approval at a Planning Commission hearing but does require noticing, is required for new secondary• units in or outside the coastal appeals jurisdiction. ResponsibleAgenct/Department.• Planning Division Time Frame: Ongoing, as projects are processed through the Planning Division Funding. General Fund •1 CITY OF MORRO BAY JUNE 2014 123 HOUSING ELEMENT UPDATE • 2. Conservation and Rehabilitation Objective: Conserve and rehabilitate the city's current stock of affordable housing. Policy H-11 (Section 8 Subsidies) Continue to maintain Section 8 rent subsidies. Program H-11.1 The City will coordinate its efforts with the appropriate agencies to continue receiving Section 8 subsidy monies. Responsibk Agency/Department Public Services Department Time Frame. Ongoing, 2014-2019 Funding. • Cenral Plan Policy H-12 (Special Needs Groups) Provide financial assistance for rehabilitation of homes for elderly, disabled, and disadvantaged persons. Program H-12.1 • The City will encourage local private organizations to assist elderly, disabled, and disadvantaged persons in the repair and rehabilitation of their housing. Responsible Agency/Department: Public Services Department Time Frame. Meet with organizations annually Funding: CDBG, HOME, other funding sources to be determined Policy H-13 (Minimizing Impact) Ensure that public projects are planned to minimize their impact on the quality and stability of residential neighborhoods. Program H-13.1 The City is considering adopting neighborhood compatibility standards for new developments in existing neighborhoods. The City will consider developing a standard set of criteria to use in determining whether proposed projects are compatible with the existing neighborhoods in which they are proposed, the purpose of which is to give project proponents clear direction for project design and to provide staff and the Planning Commission with clear guidelines for decision - making. These criteria could include a pre -application process to provide dear direction for the project. JUNE 2014 CITY OF MORRO BAY 1 • 124 r 1 U • HOUSING ELEMENT UPDATE Responsible Agenc -IDepartment Public Services Department Time Frame: Consider developing standards and adopt standards if determined they are needed by June 2015 Funding: General Fund Policy H-14 (Mobile Home Park Upkeep) Maintain the city's mobile home park Program H-14.1 The City will promote the continued upkeep of existing economically viable mobile home parks by keeping park owners informed of opportunities through HCD to maintain mobile home parks through energy retrofits, housing rehabilitation, and weatherization programs. Responsible Agency/Department: Public Services Department Time Frame: Inform owners every two years beginning in 2015 Funding.- General Fund Program H-14.2 The City will when feasible apply for a grant to conduct a feasibility study to determine the possibility of a mobile home park conversion program. The study will include an inventory of the number of units that are RVs, trailers, or mobile homes on a chassis (not on permanent foundation), the condition of the units, and the identification of oppormnities to replace them with new permanent affordable housing units. Responsible Agency/Department Public Services Department Time Frame: As funding sources become available; consider applying for funds by October 2014 Funding: CDBG, HOME, other funding sources to be determined 3. Protect and conserve existing affordable housing stock in Morro Bay. Objective: Preserve all affordable housing units in the city. Policy H-15 (At -Risk Units) Cooperate with other governmental, for -profit, and nonprofit entities to ensure no lower - income residents are adversely impacted by the conversion of existing affordable housing projects to market -rate rents. CITY OF MORRO BAY 125 JUNE 2014 HOUSING ELEMENT UPDATE Program H-15.1 The City will maintain a fist of all dwellings in the city that are subsidized by government funding or low-income housing developed through local regulations or incentives. The list will include, at least, the number of units, the type of government program, and the date on which the units may convert to market -rate dwellings. No units have been identified as at -risk of converting to market rate within 10 years of the beginning of the 5" ryde Housing Element planning period. The City will require all property owners to provide at least 2 years' notice prior to the conversion of any units for lower -income households to market -rate units in any of the following circumstances: ■ The units were constructed with the aid of government funding. • The units were required by the City's Affordable Housing Program. ■ The project was granted a density bonus. ■ The project received other incentives. Such notice will be given at least to the following. ■ The City • HCD ■ Housing Authority of the City of San Luis Obispo ■ Residents of at -risk units • Any others deemed appropriate Responsible Agency/Department- Public Services Department Time Frame. Ongoing Funding. General Fund Policy H-16 (Conversion to Condominiums) Continue to protect existing lower -income apartment units from loss through conversion to condominiums. JUNE 2014 126 CITY OF MORRO BAY • L • HOUSING ELEMENT UPDATE Program H-16.1 The City will continue to comply with Government Code Section 65590 et seq. that sets forth the requirements for conversions, demolitions, and replacement housing in the coastal zone. Responsible Agency/Department: Public Services Department Time Frame: Ongoing, 2014-2019 Funding. Genera/Fund Policy H-17 (Demolished Units) Require the replacement of very low-, low-, and moderate -income housing that is demolished with similar affordable housing. Program H-17.1 The City will require the abatement of unsafe structures, while giving property owners ample time to correct deficiencies. Residents displaced by such abatement should be provided relocation assistance. Responsible Agency/Department. Public Services Department • Time Frame: Ongoing, 2014 2019 Funding. General Fund r � U 4. Special Needs Objective: Meet the housing needs of special groups of Morro Bay residents, including seniors, disabled persons, and single parents. Policy H-18 (Senior Housing) Provide more senior housing opportunities throughout the city. Program H-18.1 The City will utilize CDBG and other state or federal monies to assist in the development of lower -income senior rentals. Responsible Ageng/Deparunent. Public Services Department Time Frame: Apply for funding as Notices of Funding Availability (NOFA) are released Funding. CDWIfederal monies CITY OF MORRO BAY JUNE 2014 127 HOUSING ELEMENT UPDATE Policy H-19 (Special Housing Needs) Promote the development of special housing needs, such as transitional housing, housing for seniors, housing for persons with physical, developmental, or mental disabilities, farmworker housing, and housing for extremely low-income persons. Program H-19.1 (Developmental Disability Needsl The City will work with housing providers to ensure that special housing needs and the needs of lower -income households are addressed for seniors, large families, female -headed households with children, persons with disabilities and developmental disabilities, extremely low-income households, and homeless individuals and families. The City will seek to meet these special housing needs through a combination of regulatory incentives, zoning standards, new housing construction programs, and supportive services programs. The City will promote market -rate and affordable housing sites, housing programs, and financial assistance available from the City, county, state, and federal governments. In addition, as appropriate, the City will apply for or support others' applications for funding under state and federal programs designated specifically for special needs groups. Responsible Agenry/Deparunent Public Services Department, City Council Time Frame: Seek hording opportunities beginning in 2014-2015 and annually thereafter, all program components are ongoing Funding. Federal Housing Opportunities for Persons with AIDS, Cahforma Child Care Facility Financing Program, and other state and federal programs designated specifically for special needs groups Policy H-20 (Family Housing) Support family housing that addresses resident needs for child care, youth services, recreation opportunities, and access to transit. Program H-20.1 As part of the process of assessing a proposed residential development, the City will evaluate the potential to incorporate other uses within the project or in conjunction with the project, including, but not limited to, project -serving retail, job centers, or services such as child care. Responsible Agency/Department Time Frame: Funding.• JUNE 2014 128 Public Services Department As projects are processed through the Planning Division Affordable Housing Fund CITY OF MORRO BAY • • • 11 n U 5. ri HOUSING ELEMENT UPDATE The Homeless Objective: Reduce the incidence of homeless persons in the community, work with other cities, the County, and various nonprofits to continue to operate a convenient homeless shelter for the region. Policy H-21 (Regional Homeless Shelters) Participate in the operations and maintenance of the regional homeless shelter facility. The City will continue to provide information about housing opportunities and services for homeless persons through the Police Department as well as at City Hall. Program H-21.1 The City will cooperate with other cities, the County, and other agencies in the development of programs aimed at providing homeless shelters and related services, including medical service for walk-in cases. The City will continue to implement the regional plan to end homelessness entitled "Housing for All: A Plan to End Homelessness." Responsible Agency/Departrnent. Time Frame: Funding: Energy Conservation Public Services Department Ongoing, meet with homeless service prodders and other county' jurisdictions annuadv General Fund Objective: Increase the efficiency of energy use in new and existing homes, with a concurrent reduction in housing costs to Morro Bay residents. Policy H-22 (Energy Efficiency Requirements) Require all new dwelling units to meet current state requirements for energy efficiency. The retrofitting of existing units will be encouraged. Program H-22.1 The City will continue to implement Title 24 of the California Code of Regulations on all new development and will continue to ensure that local building codes are consistent with state mandated or recommended green building standards. The City will also continue to encourage the use of additional innovative energy conservation techniques such as active and passive solar systems, orientation, and project layout in an endeavor to further reduce dependence on outside energy sources. The City will make handouts and literature available to the public outlining measures that they can take to reduce energy use. CITY OF MORRO BAY JUNE 2014 129 HOUSING ELEMENT UPDATE JUNE 2014 Responsible Agency/Department- Time Frame. Funding. Program H-22.2 Building Division, Public Services Department Ongoing, ensure consistency with state green building standards triennially when the California Building Cadets adopted Plan check fees and General Fund The City will work with the Pacific Gas and Electric Company (PG&E) and the Southern California Gas Company to encourage existing residents to participate in energy efficiency retrofit programs. The City will consider sponsoring an energy awareness program in conjunction with PG&E and the Southern California Gas Company to educate residents about the benefits of various retrofit programs. Responsible Agency/Depattmens Public Services Department Time Frame. Ongoing, as projects are processed through the Planning Division Funding. • General Fund/PG&E Program H-22.3 To promote residential energy efficiency retrofits, the City will pursue membership in a property assessed clean energy (PACE) program. PACE programs allow property owners to install water and energy efficiency and renewable energy projects with low interest financing that rides with the property instead of the homeowner. The City will coordinate with the County or statewide PACE program providers to identify and enroll in an appropriate program. Responsible Agency/Department Time Frame. Funding,. Program H-22.4 Public Services Department EnroOin a PACE program by 2015 General Fund The City will consider adopting an ordinance to require all new residential construction to incorporate active or passive solar energy features or other renewable energy generating systems. Responsible Agency/Department City Council, Public Services Department Time Frame: Prepare recommendation on whether to adopt an ordinance by December 2916. If decision is made to adopt an ordinance, adopt by August M17. Funding: General Fund 130 CITY OF MORRO BAY u �J 11 • • LJ HOUSING ELEMENT UPDATE Program H-22.5 The City will consider establishing a rotating fund to provide low -interest loans to Morro Bay residents for the purpose of: • Installing solar or other renewable energy generating systems on existing residential structures, or • Retrofitting existing residential structures with insulation, double pane windows, passive solar features, or other features that will materially reduce energy consumption. Initial capitalization of the fund might be provided by a local tax on the sale of electricity, natural gas, propane, automotive fuels, or other traditional energy industries, or by an environmental mitigation fee charge levied on parcels occupied by facilities for electrical generation or transmission, natural gas extraction or transportation, or production or distribution of liquefied propane. Responsible Agenct/Deparmtenv Citv Council, Public Services Department, Finance Department Time Frame: Research program by December 2015 Funding. General Fund or County of San Luis Obispo funding sources Program H-22.6 The City will consider adopting an ordinance that would require, as a condition for approval of any permit for the expansion or modification of a residential dwelling within the City of Morro Bay, that the entire residence, including both the existing structure and the proposed addition or modification be brought into compliance with the currently -enacted requirements of Title 24 of the California Code of Regulations to the greatest degree feasible. In the event that full compliance with the requirements of Title 24 is asserted to be less than feasible by the applicant for such permit or by the Planning Department of the City of Mono Bay, approval of the requested permit should be granted only by action, in a duly -noticed public hearing, of the Planning Commission or City Council of the City of Morro Bay. Responsible Agency/Department: Time Frame: Funding: City Council, Public Services Department Prepare recommendation on whether to adopt an ordinance by December 2016. If decision is made to adopt an ordinance, adopt by August 2017. GenemlFund CITY OF MORRO BAY JUNE 2014 131 7 �7 HOUSING ELEMENT UPDATE Policy H-23 (Energy -Efficient Land Use) Encourage energy efficiency in new land use patterns, to the extent feasible. Program H-23.1 The City will continue to implement the subdivision ordinance which requires that new subdivisions incorporate design features reducing vehicle dependence and encouraging pedestrian and bicycle circulation through the development of transit stops and bicycle and pedestrian routes, where feasible and appropriate. Responsible Agency/Department: Public Services Department Time Frame: As projects are processed through the Planning Division Funding. General Fund Equal Opportunity Objective: Ensure equal access to sound, affordable housing for all persons regardless of race, creed, age, or sex. Policy H-24 (Fair Employment and Housing) Promote the enforcement of the policies of the California Department of Fair Employment and Housing. The City declares that all persons, regardless of race, creed, age, or sex, will have equal access to sound and affordable housing. Program H-24.1 The City will continue to provide information from the California Department of Fair Employment and Housing regarding housing and tenant rights at City Hall and other prominent locations in the city, including the Public Services Department. The City will refer persons experiencing discrimination in housing to California Rural Legal Assistance (CRLA). Responsible Agency/Department Time Frame: Funding.• Public Participation Planning Division and that receive complaints ongoing General Fund all City departments Objective: Ensure participation of all economic segments of the community in the development of housing policy for Morro Bay. JUNE 2014 132 CITY OF MORRO BAY r- IL 11 • F-I n LA HOUSING ELEMENT UPDATE Policy H-25 (Public Participation) Encourage the participation of all citizens of Morro Bay in the development of housing policies for the city. Program H-25.1 Prior to any public hearing where the City is considering amending or updating the housing element, the City will directly notify People's Self -Help Housing Corporation, the Housing Authority of the City of San Luis Obispo, California Rural Legal Assistance, the Chamber of Commerce and Business Bureau, and local churches, as well as post notices on the City's website and at significant public locations. Responsible Agrnry/Dep"nnenc Public Services Deparomeat Time Frame: Ongoing Funding. Genera/ Fund Program H-25.2 The City will advocate for affordable housing by educating the Planning Commission, the City Council, and the public on the benefits of affordable housing. Responsible Agency/Deparmienc Time Frame: Fuodnng CITY OF DIORRO BAY 133 Public Services Department, City Manager, Community Groups Ongoing CDBG/GenenJFund JUNE 2014 HOUSING ELEMENT UPDATE QUANTIFIED OBJECTIVES SUMMARY Based on the policies and actions outlined in Table 46, the following objectives represent a reasonable expectation of the maximum number of new housing units that will be developed, rehabilitated, or conserved and the number of households that will be assisted over the next five years. The City should be able to facilitate the development of 149 new units and assist with the rehabilitation of 35 units between 2014 and 2019. Income Level Extremely Low Very Low Low Moderate Above Moderate Total Fair Share Allocation 19 20 24 27 65 155 Residential Permits 0 0 0 0 6 6 Issued (1/14-3/14) New Construction 19 20 24 27 59 149 Objectives' Rehabilitation 2 8 15 10 0 35 Preservations 0 0 0 0 0 0 Total 21 28 39 37 65 190 Source: SLOCOG 2013, City of Morro Bay 2014 Notes: ' These numbers are based on the Regional Housing Needs Allocation. 7 There are no units currently at risk, but the City unil continue to monitor the existing affordable units (Program H-l5-1 ). JUNE 2014 134 CITY OF MORRO BAY • • APPEN DIX A - MASTER FEE SCHEDULE Adopted Master Fee Schedule For the 2013/ 14 Fiscal Year Table of Contents Preface 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 • Too City of Morro Bay • Master Fee Schedule For the 2013/14 Fiscal Year Preface All fees, except for those related to Business License, are subject to increase by either the April Consumer Price Index (CPI) for Los Angeles -Riverside -Orange County, or the Engineering News Record (ENR), unless prevented by law. Business License adjusts based on the March CPI, per Municipal Code Section 5.04.050. ENR for 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 its publication, and prior to the next annual update, may not be included. • • • City of Morro Bay Master Fee Schedule For the 2013/14 Fiscal Year All Departments & Offices Photocopies: First page 0 IS Each additional page S 0.25 Photocopies mailed: Cost of postage Actual First page $ 0.75 Each additional page $ 0.25 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. L� t 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 r-, u • 11 2 • • 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 0 Master Fee Schedule document, per copy $ 25.00 Returned check charge (CA Civil Code Section 1719): a First time $ 25.00 Each subsequent $ 35.01M Utility Billing: Water service application fee $ 25A. Physical posting of shut-off notice at customer location $ 54.00 Refundable Utility deposit - residential tenants only' $ 100.00i 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 tenants status changes to an owner, the deposit is refunded. 3 City of Morro Bay • Master Fee Schedule For the 2013/ 14 Fiscal Year Public Services Department Building Building & Construction 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 Building Official (50% upon submittal/50% at issuance) Construction Operation After Hours $ 31.00 Building Re -Address Processing $ 30.00 Demo w/o Asbestos $ 66.00 Demo w/ Asbestos $ 133.00 In -lieu Housing Fee (if unit not affordable housing) - per sq/ft $ 0.32 General Plan Maintenance - 6% Surcharge on all Building Permits Z SMIP Category I (Residential) - .0001 x valuation SMIP Category II (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 $ 151.00 Re -Inspection Fees - per hour $ 76.00 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, 112 hour minimum $ 76.00 Use of outside consultants for special plan checking and inspection - charged at actual cost Penalty for commencing construction without permit(s). This is in addition to the standard building permit fees. $ 105.00 + 2 times permit fee + $52.00 per day after notice Retrofit upon transfer of sale $ 34.00 • z General Plan Maintenance surcharge includes 1% for Geographic Information System (GIS) Maintenance 4 • City of Morro Bay Master Fee Schedule For the 2013/14 Fiscal Year Building Development Impact Fees Building fees, per square foot 4 Residential: Single Family s $ 3.89 4&g, Multi -Family 6.21 Non-residential: . Commercial `' 3.90 Office S $ Industrial $ 1.44 Park fees for residential in -fill lots, per square foot: Single Family 1.20 • Multi -Family $ 2.00 Water fee: 1" meter 3 2,422.00 u meter _ 4844.00 2" me meter s 3 meter 15 495.00 Wastewater fee: I" meter S 4,446.00 IM 1-1/2" meter $ 8,893.00 2" meter $ 17,783.00 3" meter $ 28,452.00 s Adjust annually based on change in Engineering News Record (ENR). 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). • 5 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 (per square foot): Residential: Single Family Residential: General Government $ 1.15 Police $ 0.39 Parks $ 1.20 Fire $ 0.42 Storm Drain $ 0.05 Traffic $ 1.86 Water $ 0.64 • Wastewater $ 1.79 Multi -Family Residential: General Government $ 1.91 Police $ 0.63 Parks $ 2.00 Fire $ 0.70 Storm Drain $ 0.06 Traffic $ 2.90 Water $ 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. • 6 • City of Morro Bay Master Fee Schedule For the 2013/14 Fiscal Year Building Development Impact Fees Public Facilities Fees, per square foot (continued): Non-residential: Commercial: General Government $ 0.23 Police $' Parks 0.01 Fire 5 0 Storm Drain 0.03 Traffic $ Water 6 $ 2.41 Wastewater $ 4.45 Office: • General Government $ 0.31 Police $ 0.08 Parks $ 0.01 Fire $ 0.30 Storm Drain $ 0.03 Traffic $ 2.01 Water $ 2.41 Wastewater 6 $ 4.45 Industrial: General Government $ 0.09 Police $ 0.03 Parks $ 0.01 Fire $ 0.08 Storm Drain $ 0.03 Traffic $ 1.16 Water 6 $ 2.41 Wastewater $ 4.45 • 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 Business License listing, per list Business License, transfer (MC 5.04.220) Business License, duplicate (MC 5.04.230) Home Occupation Permit Processing Fee (one time fee) Home Occupation Basic (annual) Home Occupation Exception (annual) See Subsequent Pages $ 15.00 `P 2.00 $ 2.00 $ 65.00 $ 135.00 $ 57.00 With the adoption of the 2013/14 Master Fee Schedule, a $3 software maintenance fee was added to Business License fees. r • • 8 City of Morro Bay Master Fee Schedule For the 2013/14 Fiscal Year Public Services Department Business License? Exhibit A Business 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 Employee Annum $ 32.00 Bingo 5 66.00 Camivals and Circuses Day $ 534.00 3-more sale Annum 5 135.00 Coin -Operated Vending Machine Gross Receipts 0.01 Contractors General Annum $ 266.00 One Job Only Job $ 135.00 Specialty Annum $ 135.60 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 Bankrupt Sale, Each Sale $ 189.00 • Plus: In Excess of 3 Days Day S 109.00 With the adoption of the 2013/14 Master Fee Schedule, a $3 software maintenance fee was added to Business License fees. 9 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 Wheel Chute, Tobaggan, Slide, Mechanical Riding Contrivance or Pony Ride Day $ 56.00 Money Lenders & Pawnshops $ 537.00 Non -Profit Organizations Exempt Peddlers, Solicitors, or Itinerant Merchants Peddlers Day $ 56.00 Solicitors Day $ 109.00 • Plus: Each Employee Day $ 53.00 Itinerant Merchants Day $ 56.00 Week $ 109.00 Month $ 162.00 Quarter $ 213.00 180 days $ 266.00 Public Utilities Annum $ 135.00 Plus: Each Employee Annum $ 32.00 Exception: When City Franchise Tax is greater than $80.00 Private Patrol Annum $ 67.00 Public Dance (Exception No Fee or Admission) Day $ 56.00 Real Estate Calif. Licensed Broker Annum $ 135.00 Each Salesman or Agent Annum $ 32.00 Each Employee Annum $ 23.00 • With the adoption of the 2013/14 Master Fee Schedule, a $3 software maintenance fee was added to Business License fees. 10 City of Morro Bay Master Fee Schedule For the 2013/14 Fiscal Year Public Services Department Business License? Exhibit A (page 3) Secondhand Store or 3unkdealer Annum $ 135.00 Plus: Each Employee Annum 5 32.00 Skating Rink Annum $ 135.00 Plus: Employee Annum S 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 House, RV or Mobile Home Park Rental Spaces 1-4 Annum $ 135.00 lus: 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. is 11 City of Morro Bay • Master Fee Schedule For the 2013/14 Fiscal Year Public Services Department Engineering Engineering: Subdivisions, commercial or multifamily are typically more complex, and require more review. Flood Hazard Development Permit (MC 14.72.040): Permit, minimum fee `' $ 190.00 Flood Plain Letter $ 95.00 Subdivisions: Final Map - Tract, minimum fee (MC 16.24.040J) s&9 $ 1,222.00 Final Parcel Maps with Improvements, minimum fee 8 $ 314.00 Final Maps Amendment Review, minimum fee 8&9 $ 263.00 • Inspections/Plan Review Inspections Cost of service Public/Subdivision Improvement Plan Check, minimum fee88,9 $ 450.00 Abandonment Process Street/R-O-W Abandonment Process9 $ 898.00 Encroachment Permits' (MC 13.16.140): Regular $ 129.00 Special - Engineered Structures, minimum fee 8 $ 282.00 Non -Engineered Structures, minimum fee 8 $ 129.00 Annual Utility Encroachment Permit $ 198.00 VJide Load Permit with Traffic Control Plans - Per Year $ 90.00 Wide Load Permit with Traffic Control Plans - One Time 8 $ 16.00 Street & Sidewalks: Exception Application $ 160.00 8 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) 12 • City of Morro Bay Master Fee Schedule For the 2013/14 Fiscal Year • 0 Public Services Department Engineering Stormwater fees: Single family: anning review of preliminary stormwater plan $ 142.00 Building permit review of stormwater plan S 186.00 Inspection of stormwater facility/erosion control $ 99.00 Other (per 6,000 sq ft lot area, or fraction thereof): Planning review of preliminary stormwater plan $ 142.00 Building permit review of stormwater plan $ 186.00 Inspection of stormwater facility/erosion control $ 99.00 Trees: Removal Permit (to trim, brace or remove, MC 12.08.110) $ 256.00 City of Morro Bay • Master Fee Schedule For the 2013/14 Fiscal Year Public Services Department Planning Affordable Housing In -Lieu Funding Assistance Fee $ 541.00 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 Coastal 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) $ 505.00 Emergency Permit (excluding required regular CDP) $ 634.00 Other Administrative: Tree Removal, private $ 242.00 Environmental: Categorical Exemption $ 86.00 Negative Declaration $ 1,047.00 Mitigated Negative Declaration $ 3,356.00 Filing Fee - for environmental document as per County $ 51.00 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 wvvw.dfg.ca.gov for fee) • • CJ City of Morro Bay Master Fee Schedule For the 2013/14 Fiscal Year Public services Department Planning Miscellaneous: Letter regarding land use confirmation or other research - per hour Development Agreement Applicant Requested Continuance :we S 4,555.00 $ 111.00 Street Name, Rename Processing 5 403.00 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) 5 110.00 Appeals of City decisions excluding Coastal Permits in Coastal Appeal Jurisdiction - refundable if applicant prevails 5 250.00 Copy of Planning Commission DVD = i2.0- Notification fees: Planning Commission hearings $ 138.00 Administrative hearings = S7.00 Special Event - based on actual personnel cost Planned Development Zone: 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: Temporary, beyond time allowed by Ordinance - per day after notice $ 10.00 Permanently attached signs w/o permit - per day after notice $ 21.00 Subdivisions: Note: all subdivisions may be billed at direct cost Tentative Parcel Map Application $ 3,245.00 • Tentative Tract Map Application up to 10 lots/plus $100.00 per lot over 10 $ 4,327.00 Amendments to Existing Tract or Parcel Maps $ 2,323.00 Lot Line Adjustment $ 762.00 Certificate of Compliance (legal determination) - fee plus a deposit for extensive research as needed $ 525.00 Lot Mergers $ 211.00 Text Amendments: Zone Changes - deposit plus cost $ 4,556.00 Specific Plan $ 4,683.00 General Plan/Local Coastal Plan Amendment deposit plus cost $ 4,683.00 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 $ 525.00 • Time Extensions - Administrative $ 44.00 16 City of Morro Bay Master Fee Schedule For the 2013/14 Fiscal Year Public Services Department Planning Use Permits Note: All 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 wnting 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�an,Y chances Commercial/Industrial (no construction $ 505.00 MUUI VIID V IIVII IIIVIIIu119 USG �U UUUI C-1, IIUI dUU111y WI1-b VI IICW uses $ 505.00 Minor Use Permit $ 541.00 Temporary Use Permit - longer than 10 days $ 541.00 Outdoor Display and Sales and Outdoor Dining 5 863.00 • Administrative Temporary Use Permit - 7 consecutive or 10 non- consecutive days per calendar year $ 44.00 Amendments to Existing Permits (Planning Commission) :,942.00 Major Modification While Processing $ 1,459.00 Minor Amendments to Existing Permts (Adrir'�t-at.e; :54.00 Variances: Variance S 2,-I:3.00 Variances processed with other permits $ 725.00 Minor Variance 399.00 Parking Exceptions $ 123.00 CA City of Morro Bay • Master Fee Schedule For the 2013/14 Fiscal Year Public Services Department Water Water Service: Application (MC 13.04.07) $ 25.00 Connection - Within City will be charged at cost (MC 13.04.100) 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 Approval will be charged at cost (MC 13.04.120) Temporary Service Application will be charged at cost (MC 13.04.150) Meter Installations/Connections: 3/4 inch to 5/8 inch meter (water fee plus wastewater fee) $ 1,350.00 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 $ 87.00 Water Meter Re -Read $ 26.00 Reconnection (MC 13.04.310) $ 46.00 After - Hours Water Meter Turn Off/On $ 117.00 "Drop 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 replacing damaged lock $ Lock + $46 Circuses, Carnivals & Traveling Shows - Fire Hydrant (MC 13.04) Fire Hydrants - Contractor Use (MC 13.04.360): Meter Installation and Removal - per Council Resolution; will be charged at cost Meter Use - per day $ 4.00 Water Cross Connection (MC 13.08.070B): Certificate of Compliance $ 23.00 Water Usage (MC 13.04.220, sewer rates not included): Per Council Resolution Water Deposit: • Refundable deposit - residential tenants only $ 100.00 18 • 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) S 76.00 Extension - pro rated - to be charged at cost (MC 13.12.050) Use of Existing Sewer Permit - per Council Resolution (MC 13.12.090) Use Charges - per Council Resolution (MC 13.12.210) 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 charge) • Minimum and Availability Charge - per Council Resolution (MC 13.12.090) Raising Manhole to Grade - cost of providing service Sewage Spill Cleanup - cost of providing service Spill in Right -of -Way Cleanup - cost of providing service City of Morro Bay Master Fee Schedule For the 2013/14 Fiscal Year Police Department (See Notes) Permits & Licenses: Sex/Narcotic Registrant Fee $ 0.00 Tow/Taxi Service Provider Application Fee $ 598.00 Taxi Operator Permit Application Fee $ 381.00 Taxi Operator Permit Application Renewal Fee $ 64.00 Second Hand Dealer Permit - City Application Fee (does not include Department of Justice fee) S 318.00 Second Hand Dealer Permit renewal - City Application Fee (does not include Department of Justice fee) $ 158.00 Massage Therapist/Parlor Permit Application Fee $ 132.00 Police Copies: Report/Document Copies - per page $ 1.00 Support Services Manager Activity: Digital Photo Reproduction to CD - per hour, 1 hour minimum $ 53.00 Audio/Video Tape Reproduction - per hour, 1 hour minimum $ 53.00 Record Searches/Reviews/Clearance/Responses - per hour, 1 hour minimum $ 53.00 Officer Activity: Equipment Citation Sign Off $ 15.00 Vehicle Impound Fee Administrative Costs (CVD 22850.5) $ 158.00 Abandoned Vehicle Removal (junk vehicles/parts) $ 318.00 Juvenile In Custody Service - per hour $ 69.00 • 0 City of Morro Bay Master Fee Schedule For the 2013/14 Fiscal Year Police Department (See Notes) Other Police Services: ifh Firearms - seizurelstorage (PC 12021.3 33880) $ 53.00 State Mandated Costs 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.) $ 15.30 ftcluent Parking Citation Copy $ 2.00 Repossessed Vehicle $ 15.00 • moo nfc�g Fees current cost - cost is dependent on charges by County) $ 115.00 Live scan Fingerprint Fees (PC 13300(e)) 5 DOJ + $20 Criminal History Review (PC 13322) $ 26.00 Cost Recovery DUI Emergency Response Actual Cost y� False Alarm Response (after 3rd false alarm in a year) $ 212.00 No Cost Services: Bicycle License $ 0.00 _ Voluntary Gun Registration $ 0.00 t� 21 City of Morro Bay • Master Fee Schedule For the 2013/14 Fiscal Year Police Department (See Notes) Parking 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 10.40.060 $ 64.00 Vehicle Repair on Public Street 10.40,080 $ 53.00 Parking on Grade without Turning Wheels 10.40.090 $ 53.00 Parking within Space Marking 10.40.110 $ 53.00 Curb Markings (red, yellow, etc.) 10.40.120 $ 53.00 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 10.44.070 $ 53.00 Failure to Display Receipt 10.44.070 $ 53.00 Overnight Camping 08.24.010 $ 112.00 Expired registration 4000(a) $ 53.00 Parking in Fire Lane 22500.1 $ 169.00 Blocking Driveway 22500e $ 53.00 Blocking Wheelchair Access 22500L $ 109.00 Parking within 15' of Fire Hydrant 22514 $ 117.00 Blocking Sidewalk 22500f $ 53.00 Blocking a Bus Stop 22500i $ 90.00 Blocking Intersection Gridlock 22526 $ 186.00 Curb Parking 18" or Wrong Way 22502A $ 53.00 Parking in Bike Lane 2121115 $ 53.00 Vehicle Abandonment on Street 22523 $ 328.00 • Handicap 22507.8A $ 301.00 • 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 Copies: All police copy costs are $1.00 per page (except citations). • Support Services Manager Activity: All record searches, reviews, clearance letters, responses, copies of photos, audio tapes and video tapes - 1 hour minimum charge Officer Activity: Abandoned Vehicle Removal - this is a charge levied against the registered or legal owner of a vehicle who abandons 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. • 13 City of Morro Bay Master Fee Schedule For the 2013/14 Fiscal Year Police Department Notes Other Police Services: 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 DOJ (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 Tecum - EC 1563 (b)(1) Delinquent Parking Citation Copy - VC Section 40206.5 Repossessed Vehicle - GC Section 41612 Booking Fees - set by County GC 53150 & 29550.1 Livescan Fingerprint Fees - PC 13300(e) Criminal History Review - PC 13322 Cost Recovery: DUI Emergency Response - MBMC 3.40.030 False Alarms Response - MBMC 9.22.020 Services: Acceptance of Civil Subpoena/SDT fees are set by statute or other authority - Code #1563(b)(1)EC Safekeeping Property Storage beyond 30 day written notice does not include outside storage fees is • 24 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 5 64.00 Any con-onation of permits shall not exceed 191.00 Special Occurrence or Use Permit (equipment & personnel charges additional) $ 64.00 Special Permits: Marine Welding Permit: Vessel, Pier, Wharf, Waterfront $ 42.00 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 per address, each additional box $ 10.00 Equipment & Personnel Charges 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 - personnel charges 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 5 64.00 Additional Plan Review required by changes, additions or • revisions to approved plans - personnel charges as specified in Equipment & Personnel Charges on a 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) Fire Protection: System & Equipment Fees: Fire Sprinkler System Installation Inspection - (above ground) Residential - fee plus $0.55 per head $ 64.00 Commercial - fee plus $0.55 per head $ 318.00 Commercial projects or tenant improvements under 1,000 sq ft - fee plus $.055 per head $ 103.00 Underground water line inspection $ 64.00 Fire Alarm System Installation Inspection 0 - 15 devices $ 64.00 16 - 50 devices 5 106.00 • 51 - 100 devices $ 201.00 101 - 500 devices 5 291.00 501 and up, fee plus $130 for each additional 100 devices $ 291.00 Specialized Fire Protection System Inspection, e.g., Halon, Dry Chemical Commercial Kitchen Hood System $ 64.00 Flammable or Combustible Tank Installation Inspection $ 64.00 On -site Hydrant System Installation Inspection $ 64.00 Use of Outside Consultants for Plan Review & and/or Inspection - fee plus actual cost $ 64.00 Request for Building Fire Flow Calculations $ 37.00 Request for Hydrant Flow Information $ 37.00 Request for Hydrant Flow Test - fee plus personnel & equipment as specified in Personnel and Equipment Charges, 1 hr min. $ 37.00 Engine company business inspection: 1st and 2nd inspections $ 0.00 3rd and subsequent inspections $ 79.00 • 26 • City of Morro Bay Master Fee Schedule For the 2013/14 Fiscal Year Fire Department (See Notes) Fire Prevention: New and annual business/facility inspection fees: 1st a426d Inspections: no charge $ 0.00 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 5 212.00 Administrative citiation 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 • Inspection Annual reed and hazard abatement fees: 1st inspection for compliance: no charge $ 0.00 2nd arc s.:bsequert irspectiors $ 79.00 Administrative citation for failure to correct a violation shall be charged per 1.03.050 of the Municipal Code $ 106.00 Administrative ciliation 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 citiation 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 • V 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 (excluding negligent/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 to 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 fire/alarm system 0.5 hours minimum to be charged as specified by Personnel & Equipment Charges. Malicious False Alarms - .5 hour minimum to be charged 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 $ 1.00 Cause & Origin investigation reports, per report $ 112.00 Non -renewal of required annual permit - charge double permit 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 5 41.00 • City of Morro Bay Master Fee Schedule For the 2013/14 Fiscal Year Fire Department Notes Permits - California Fire Code See operational and construction permits identified in the California Fire Code, Appendix Chapter 1, Section 105 Special Occurrence or Use Permit includes 1 inspection 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 560 plus actual cost of consultant. • All Plan Review Fees shown are minimum amounts, based on average processing. Large or complex projects may be subject to increased fees based upon time, costs, or equipment costs as shown per Equipment & Personnel Charges. L City of Morro Bay Master Fee Schedule For the 2013/14 Fiscal Year Harbor Departmentlo (See Notes) Vesselfees: Commercial fishing slips - monthly rate (per foot) $ 4.10 Commercial fishing slip waiting list deposit $ 433.00 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 - first consecutive 90 days (per foot) $ 0.25 City moorings - monthly $ 200.00 City moorings private tackle - monthly $ 80.00 A1-5 Anchorage Area - 1-5 days (per foot) $ 0.00 A1-5 Anchorage Area - after 5 days (per foot) $ 0.20 • City -owned moorings - daily (per foot) $ 0.25 Monthly impound rate (per foot) (non -impounded vessels) $ 7.00 Impound mooring rate - daily (per foot) (impounded vessels) $ 0.65 Temporary Moorage - large vessels/equipment (per day) $ 162.00 Dry storage - daily $ 2.80 Mooring transfer fee (flat rate) $ 1,072.00 Service fees: T-Pier electrical - daily $ 2.30 Electric cord replacement $ 155.00 T-Pier hoist - per use $ 11.00 T-Pier hoist - per day $ 21.00 Fishing unloading - per hour $ 72.00 Wharfage - per ton $ 0.85 0 Beginning with the 2013/14 Master Fee Schedule, the Harbor Department will use the Engineering Record factor for increasing fees. News I. (ENR) 30 City of Morro Bay Master Fee Schedule For the 2013/14 Fiscal Year Harbor Departmentlo (See Notes) Liveaboard fees: Pem-it fee - blennlal Inspection fee - biennial (if done by MB Harbor Patrol) $ 131.00 Monthly service fee - moorings = 13.50 Monthly service fee - slips $ 32.00 Lease site ad min istation/services fees: Master Lease Approval $ 810.00 Requiring City Council a rovapp I $ 405.00 _ Departmental approval $ 84.0 • Vessel assistance: One Patrol Officer, one boat - per hour $ 180.00 Each additional Officer - per hour $ 68.00 Launch Ramp parking fee: Per hour $ 1.00 Maximum per day $ 5.00 Failure to pay established fee = 54.20 Failure to display receipt $ 54.20 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. is 31 City of Morro Bay Master Fee Schedule For the 2013/14 Fiscal Year Harbor Department Notes Any account past due over 10 days on a monthly basis will be charged a 10% penalty.late fee assessed 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.S hours at the set rate. All dockage is based on a 36' minimum vessel length or length of the slip, whichever is larger. Temporary moorage related to marine construction equipment or vessels of unusual size requiring special accommodation - see fees for Temporary Moorage - Large Marine Equip. or Vessel/Equipment. A 10% discount is available for leased commercial slips and moorings when paid one year in advance. Account must be paid for entire year in advance. • Transient slip users shall be limited to 3 months in any slip as long as there are vessels appropriate to the slip size on the sublease waiting list. The Harbor Director may waive dockage fees for Tall Ships visiting Morro Bay Harbor for any period less than 30 days with written notice. Parking fee applies to the boat trailer spaces at the boat launch ramp, and Tidelands Park trailer and towing vehicle spaces. Annual permits may be prorated to the nearest month. Any liveaboard application, submitted during the period January 1 through June 30, is good only for that fiscal year and the following fiscal year, but will be prorated by reducing the liveaboard application fee, stated herein, by 25%. ;2 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 Auditorum, one-half $31/hr $46/hr $67/hr Multi -purpose room $26/hr $41/hr $62/hr Lounge $23/hr $34/hr $50/hr Studio $18/hr $26/hr $38/hr Kitchen * $12/hr $20/hr $25/hr Kitchen, 8 hours • $63 $100 $125 VETERAN'S MEMORIAL BUILDING Assembly, w/o kitchen $25/hr $34/hr $44/hr Complete, w/o kitchen $28/hr $38/hr $50/hr Meeting, w/o kitchen $21/hr $28/hr $37/hr Kitchen & barbeque-' $12/hr $20/hr $25/hr Kitchen & barbeque, 8 hours" $63 $100 $125 TEEN CENTER Up to 20 participants $303 $303 $303 21 - 30 participants $404 $404 $404 31 - 40 (maximum = 40) participants $454 $454 $454 Note: based on number of participants i1 Kitchen only rentals permitted Monday - Friday; weekend rentals must be combined with room rental ADDITIONAL FEES Deposit: $150, no alcohol or live music $500, alcohol and/or live music $50, Bounce House Janitorial, non-refundable, per event based on group size: 100 - 200 participants: $54 201 or more participants: $106 Unscheduled overtime: Facility attendant(s): Security guard(s): Permit processing fee: Insurance: Cancellations: Building set-up/breakdown: $23/hr Veteran's Memorial Building stage use, set-up and breakdown: $81 flat rate 11 $44/hr $10/hreach $26/hr each $8.00, non-refundable cost based on event size/type 20% charge of invoiced costs 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 Mar Park Hillside or Meadow $50/Permit $87/Permit $217/Permit Multi -Area, Entire Park, Multi Day Event $136/Day+Permit $136/Day+Permit 5136/Day+Permit Del Mar Basketball Courts 13 $50/Permit $87/Permit $217/Permit Multi -Area, Entire Park, Multi Day Event $136/Day+Permit $136/Day+Permit $136/Day+Permit Del Mar Roller Hockey Rink 13 $50/Permit $87/Permit $217/Permit Multi -Area, Entire Park, Multi Day Event $136/Day+Permit $136/Day+permit $136/Day+Permit Del Mar Tennis Courts 13 $50/Permit $87/Permit $217/Permit Multi -Area, Entire Park, Multi Day Event $136/Day+Permit $136/Day+Permit $136/Day+Permit Lila Keiser Park BBQ or Fields 12 $50/Permit $87/Permit $217/Permit Multi -Area, Entire Park, Multi Day Event 1z $136/Day+Permit $136/Day+Permit $136/Day+Permit Monte Young Tennis Courts 13 $50/Permit $87/Permit $217/Permit • Multi -Area, Entire Park, Multi Day Event $101/Day+Permit $101/Day+Pernit $101/Day+Permit Tidelands Open Area $50/Permit $87/Permit $217/Permit Multi -Area, Entire Park, Multi Day Event $101/Day+Permit $101/Day+Permit $101/Day+Permit Cloisters Open Area $50/Permit $87/Permit $217/Permit Multi -Area, Entire Park, Multi Day Event $101/Day+Permit $101/Day+Permit $101/Day+Permit Bayshore Bluffs Open Area $50/Permit $87/Permit $217/Permit Multi -Area, Entire Park, Multi Day Event $101/Day+Permit $101/Day+permit $101/Day+Permit Morro Rock Open Area $50/Permit $87/Permit $217/Permit Multi -Area, Entire Park, Multi Day Event $101/Day+Permit $101/Day+Permit $101/Day+Permit City Park Open Area $50/Permit $87/Permit $217/Permit Multi -Area, Entire Park, Multi Day Event $68/Day+Permit $68/Day+Permit 568/Day+Permit • 34 • City of Morro Bay Master Fee Schedule For the 2013/14 Fiscal Year Recreation and Parks Department Public Area Use Permits (page 2) City Park Basketball Courts 11 Multi -Area, Entire Park, Multi Day Event North Point Overlook Multi -Area, Entire Park, Multi Day Event Coleman Park Multi -Area, Entire Park, Multi Day Event Non -Profit and Non-resident For Profit Resident Groups Groups Groups $50/Permit $87/Permit $217/Permit $68/Day+Permit 568/Day+Permit S68/Day+Permit $50/Permit $87/Permit $217/Permit $68/Day+Permit $68/Day+Permit 568/Day+Permit $50/Permit $87/Permit $217/Permit $68/Day+Permit $68/Day+Permit 568/Day+Permit Coleman Basketball Courts v $50/Permit Multi -Area, Entire Park, Multi Day Event S68/Day+Permit Deposit - Public Area Use Permit - $150.00 Deposit - Organized Sports Facilities - s500.00 Hourly and Park Use Fees $87/Permit $217/Permit $68/Day+Permit S68/Day+Permit Giant Chessboard - use Wooden Pieces is $25 $40 $107 Giant Chessboard - use Plastic Pieces $9 $10 $11 (June, July, August) N/C N/C N/C z Lila Keiser hourly field rental $4 without lights $5 without lights $6 without lights $15 with lights $17 with lights $19 with lights 'z Lila Keiser field preparation $23 $28 $31 " Roller Hockey Rink, Basketball Court $4.00 SS S6 & Tennis Court Hourly 0 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 14 $9.00 $10 $11 Includes one: Horseshoes, Badmitton, Volleyball, Bocce Ball Soccer goal, hourly rate, 2 hr. min. 14 $8.00 $9 $10 Skate park rental, 2 hr. min. $106 $106 $158 Photography/filming, per day 15 $112, outdoor N/A $220, outdoor $148, indoor N/A $367, indoor 14 Equipment rental deposit: $50 15 Photography/filming deposit: $1,000 is Insurance cost is dependent on the size/type of event 36 • City of Morro Bay Master Fee Schedule For the 2013/14 Fiscal Year • • Transit (See Notes) Fixed Route: Regular fare, per ride Discount fare, per ride $ 0.75 Regular punch pass (11 rides for the price of 10) Discount punch pass (11 rides for the price of 10) s 7.50 Regular day pass T __ Discount day pass $ 2.00 Call -A -Ride: Fare, per ride $ 2.50 Call -A -Ride punch pass (11 rides for the price of 10) S 25.00 Trolley: Fares: Per ride $ 1.25 Per ride, 5-12 years old 5 0.50 All day pass $ 3.00 Advertising: Exterior Side of Trolley (approx. 36"x20") - with supplied sign $ 370.00 Exterior Side of Trolley (approx. 36"x20") - MB Community Foundation supplied sign 5 422.00 Exterior Rear of Trolley (approx. 24"x20") - with supplied sign $ 318.00 Exterior Rear of Trolley (approx. 24"x20") - MB Community Foundation supplied sign $ 370.00 Interior (approx. 26"x12") - with supplied sign $ 158.00 Interior (approx. 26"x12") - MB Community Foundation supplied sign $ 187.00 3- City of Morro Bay Master Fee Schedule For the 2013/14 Fiscal Year Transit (See Notes) Trolley (continued): Rental rates: One day, within City Limits, per hour (2 hour minimum): Transportation of passengers to and from one location to another $ 106.00 Shuttle transportation (continuous loop with multiple stops); hourly plus cost of fuel $ 106.00 One day, outside City limits, per hour (3 hour minimum) Transportation of passengers to and from one location to another $ 106.00 Shuttle transportation (continuous loop with multiple stops); hourly plus cost of fuel $ 106.00 Multiple days, 2 consecutive days: Within City limits $ 1,719.00 Outside City limits; rate plus cost of fuel $ 1,719.00 is • 38 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 may be required to provide proof of age. Call -A -Ride: Call -A -Ride service is available to all members of the general public. Trolley Rides: 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 through Labor Day. Children, under 5 years old, ride free (limit 2 per fare -paying adult). Advertising: • The City has entered into a revenue -sharing agreement with the Morro Bay Community Foundation (MBCF). MBCF will sell advertising spaces on the trolleys, to include having signs made, and split the revenue, per the agreement. The agreement term is one year. Advertising rates in this Schedule apply to the May 2012 through October 2012 trolley operating season. 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 sin @ 500/to off. Cost for space with MBCF sign includes the cost td ave the sign made. Rentals: Hourly rate includes driver, fuel, cleaning, standby mechanic and administration, unless otherwise noted. Trolley seats 30 passengers. The trolley is only to be operated on paved roads (no dirt or gravel roads). 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. • 39 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 WHET REAS, the California Constitution, in Article 13B Government Spending Limitation Section 8(c), states that proceeds in excess of user charges and user fees that exceed the costs reasonably 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 annual review of the Master Fee Schedule and revision; and WHEREAS, on August 11, 2008, the City Council adopted Resolution No. 49- • 08, which stated that "the Master Fee Schedule will be brought back in its entirety for review annually." NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, that the Master Fee Schedule be revised and published, as amended. PASSED AND ADOPTED, by the City Council of the City of Morro Bay, at a regular meeting thereof held on the 90` day of July 2013, by the following vote: AYES: Irons, C. Johnson, N. Johnson, Leage, Smukler NOES: None ABSENT: None L. IRONS, Ma or ATTEST: �i JAMIE BOUCHER, City Clerk • C[1] • ' ITY O Mo �RC)N BAY 2014-2019 HOUSING ELEMENT UPDATE CITY OF MORRO BAY HOUSING ELEMENT UPDATE INITIAL STUDY/NEGATIVE DECLARATION • Prepared for. - CITY OF MORRO BAY PUBLIC SERVICES DEPARTMENT 955 SHASTA AVE MORRO BAY, CA 93442 Prepared by: PMC' -1� 860 WALNUT STREET, SUITE B SAN LUIS OBISPO, CA 93401 • MAY 2014 CITY OF MORRO BAY HOUSING ELEMENT UPDATE INITIAL STUDY/NEGATIVE DECLARATION n U Prepared for: CITY OF MORRO BAY PUBLIC SERVICES DEPARTMENT 955 SHASTA AVE MORRO BAY, CA 93442 Prepared by: PMC 860 WALNUT STREET, SUITE B SAN LUIS OBISPO, CA 93401 MAY 2014 • • • • 2014-2019 HOUSING ELEMENT UPDATE TABLE OF CONTENTS Environmental Checklist Form ...................................................... Project Description......................................................................... Environmental Factors Potentially Affected ............................. Determination (to be completed by the lead agency)........ Evaluation of Environmental Impacts ........................................ I. Aesthetics........................................................................... II. Agriculture Resources...................................................... III Ai, n. "1;+,, IV. Biological Resources ............................................... V. Cultural Resources ................................................... Vl. Geology and Soils .................................................... .........................................5 ......................................... 6 ......................................... 7 9 ......................................... ................................... .......................................13 I ... I I .......................................15 .......................................18 VII. Greenhouse Gas Emissions..............................................................................................................22 Vill. Hazards and Hazardous Materials.................................................................................................25 IX. Hydrology and Water Quality.........................................................................................................27 X. Land Use and Planning....................................................................................................................30 XI. Mineral Resources..............................................................................................................................31 XII. Noise.....................................................................................................................................................32 XIII. Population and Housing .......................................... XIV. Public Services........................................................... XV. Recreation................................................................. XVI. Transportation/Traffic............................................... XVII. Utilities and Service Systems .................................... XVIII. Mandatory Findings of Significance ..................... References............................................................................... FIGURES Figure 1 Project Location city of Mmm Bay May 2014 35 37 9 2014-2019 Housing Element Update Initial Study and Negative Declaration C` J ENVIRONMENTAL CHECKLIST FORM 1. Project title: 2. Lead agency name and address: 3. Contact person and phone number: 4. Project location: S. Project sponsor's name and address: 6. General Plan designation: 7. Zoning: B. Description of project: 2014-2019 HOUSING ELEMENT UPDATE City of Mono Bay 2014-2019 Housing Element Update City of Mono Bay Public Services Department 955 Shasta Avenue Mono Bay, CA 93442 Cindy Jacinth, Associate Planner (805) 772-6577 The proposed Housing Element update would apply citywide in the City of Mono Bay, which is located north of the Mono Bay estuary on the Pacific Ocean in San Luis Obispo County (Figure 1). The city is bounded on the north by the unincorporated community of Cayucos, on the south by the unincorporated community of Los Osos, on the west by the Pacific Ocean, and on the east by unincorporated land within San Luis Obispo County. State Route (SR) 1 runs north to south through the city and intersects with SR 41, which runs east to west. City of Mono Bay Public Services Department 955 Shasta Avenue Mono Bay, CA 93442 All City of Mono Bay General Pion land use designations; project is citywide All City of Mono Bay zones; project is citywide The proposed project involves a City -initiated General Plan Amendment to update the City's Housing Element as required by state law. The Housing Element update identifies the potential for development of up to 149 new housing units and rehabilitation of up to 35 existing housing units at full buildout of the city's existing vacant lot inventory. The projected number of units considers development of all existing vacant lots under current land use designations and zoning. The proposed update would not designate any additional land in the city for housing and would not increase the allowable density of any land designated for housing. In addition, the proposed Housing Element does not include any site -specific designs or proposals and does not grant any entitlements for development. The Housing Element contains goals and policies designed to provide a range of housing types to meet the housing needs of all members of the city of Mono Bay May 2014 2014-2019 Housing Element Update Initial Study and Negative Declaration 2014-2019 HOUSING ELEMENT UPDATE community within the land currently designated for residential uses in the Land Use Element of the City's General Plan. 9. Surrounding land uses and setting: Briefly describe the project's surroundings: The proposed 2014-2019 Housing Element would be implemented citywide. The city has a total area of 10.2 square miles, of which 5.2 square miles is land and 5.0 square miles is water. The city is primarily characterized by residential and commercial land uses. The topography of the city is generally hilly to mountainous, with development and agriculture concentrated on the coastal plain and valleys (Morro Bay 2011 b). 10. Other public agencies whose approval is required (e.g., permits, financing approval, or participation agreement.) The proposed project would not require action by any other agencies. 2014-2019 Housing Element Update Initial Study and Negative Declaration City of Morro Bay May 2014 • L 2014-2019 HOUSING ELEMENT UPDATE yor.o e.r s i Ham` r, C `l Yvro i Yn B.ya 0 Legend 10.aa� a i Morro Bay City Limit ribas E9n Figure 1 Project Location u,E1 PMCT 2014-2019 Housing Element Update Initial Study and Negative Declaration 3 2014-2019 HOUSING ELEMENT UPDATE This page intentionally left blank 2014-2019 Housing Element Update Initial Study and Negative Declaration City of Morro Bay May 2014 • is • • • ir1 L 2014-2019 HOUSING ELEMENT UPDATE ENVIRONMENTAL FACTORS POTENTIALLY AFFECTED The environmental factors checked below would be potentially affected by this project, involving at least one impact that is a "Potentially Significant Impact" as indicated by the checklist on the following pages. ❑ Aesthetics ❑ Biological Resources ❑ Greenhouse Gas Emissions ❑ Land Use(Planning ❑ Population/Housing ❑ Transportation/Traffic City o/ Morro Bay May 2014 ❑ Agriculture Resources ❑ Cultural Resources El & Hazardous Materials Materials ❑ Mineral Resources ❑ Public Services ❑ Utilities15ervice Systems 3 ❑ Air Quality ❑ Geology/Soils ❑ Hydrology/WaterQuality ❑ Noise ❑ Recreation ❑ Mandatory Findings of Significance 2014-2019 Housing Element Update Initial Study and.Negatice Declaration 2014-2019 HOUSING ELEMENT UPDATE DETERMINATION (to be completed by the lead agency) On the basis of this initial evaluation: ® I find that the proposed project COULD NOT have a significant effect on the environment, and a NEGATIVE DECLARATION will be prepared. I find that although the proposed project could have a significant effect on the ❑ environment, there will not be a significant effect in this case because revisions in the project have been made by or agreed to by the project proponent. A MITIGATED NEGATIVE DECLARATION will be prepared. ❑ I find that the proposed project MAY have a significant effect on the environment, and an ENVIRONMENTAL IMPACT REPORT is required. I find that the proposed project MAY have a "potentially significant impact" or "potentially significant unless mitigated" impact on the environment, but at least one effect (1) has been adequately analyzed in an earlier document pursuant to ❑ applicable legal standards, and (2) has been addressed by mitigation measures based on the earlier analysis as described on attached sheets. An ENVIRONMENTAL IMPACT REPORT is required, but it must analyze only the effects that remain to be addressed. I find that although the proposed project could have a significant effect on the environment, because all potentially significant effects (a) have been analyzed ❑ adequately in an earlier EIR or NEGATIVE DECLARATION pursuant to applicable standards, and (b) have been avoided or mitigated pursuant to that earlier EIR or NEGATIVE DECLARATION, including revisions or mitigation measures that are imposed upon the proposed project, nothing further is required. Signature 0 Date Printed namil Title 2014-2019 Housing Element Update City of Morro gay Initial Study and Negative Declaration May 2014 2014-2019 HOUSING ELEMENT UPDATE • EVALUATION OF ENVIRONMENTAL IMPACTS 1) A brief explanation is required for all answers except "No Impact" answers that are adequately supported by the information sources a lead agency cites in the parentheses following each question. A "No Impact" answer is adequately supported if the referenced information sources show that the impact simply does not apply to projects like the one involved (e.g., the project falls outside a fault rupture zone). A "No Impact" answer should be explained where it is based on project -specific factors as well as general standards (e.g., the project will not expose sensitive receptors to pollutants, based on a project -specific screening analysis). 2) All answers must take account of the whole action involved, including off -site as well as on - site, cumulative as well as project -level, indirect as well as direct, and construction as well as operational impacts. 3) Once the lead agency has determined that a particular physical impact may occur, then the checklist answers must indicate whether the impact is potentially significant, less than significant with mitigation, or less than significant. "Potentially Significant Impact" is appropriate if there is substantial evidence that an effect may be significant. If there are one or more "Potentially Significant Impact" entries when the determination is made, an EIR is required. 4) "Negative Declaration: Less Than Significant With Mitigation Incorporated" applies where the incorporation of mitigation measures has reduced an effect from "Potentially Significant • Impact" to a "Less Than Significant Impact." The lead agency must describe the mitigation measures, and briefly explain how they reduce the effect to a less than significant level (mitigation measures "Earlier Analyses," as described in (5) below, may be cross-referenced). 11 5) Earlier analyses may be used where, pursuant to the tiering, program EIR, or other CEQA process, an effect has been adequately analyzed in an earlier EIR or negative declaration. Section 15063(c) (3) (D). In this case, a brief discussion should identify the following: a) Earlier Analysis Used. Identify and state where they are available for review. b) Impacts Adequately Addressed. Identify which effects from the above checklist were within the scope of and adequately analyzed in an earlier document pursuant to applicable legal standards, and state whether such effects were addressed by mitigation measures based on the earlier analysis. c) Mitigation Measures. For effects that are "Less Than Significant With Mitigation Measures Incorporated," describe the mitigation measures which were incorporated or refined from the earlier document and the extent to which they address site -specific conditions for the project. 6) Lead agencies are encouraged to incorporate into the checklist references to information sources for potential impacts (e.g., general plans, zoning ordinances). Reference to a previously prepared or outside document should, where appropriate, include a reference to the page or pages where the statement is substantiated. 7) Supporting Information Sources: A source list should be attached, and other sources used or individuals contacted should be cited in the discussion. City of Marro Bay May 2014 2014-2019 Housing Element Update Initial Study and Negative Declaration 2014-2019 HOUSING ELEMENT UPDATE 8) This is only a suggested form, and lead agencies are free to use different formats; however, lead agencies should normally address the questions from this checklist that are relevant to a project's environmental effects in whatever format is selected. 9) The explanation of each issue should identify: a) The significance criteria or threshold, if any, used to evaluate each question; and b) The mitigation measure identified, if any, to reduce the impact to less than significance. 2014-2019 Housing Element Update Initial Study and Negative Declaration City of Morro Bay May 2014 • L 11 E • • 2014-2019 HOUSING ELEMENT UPDATE Less Than Significant Potentially Impact With Less Than Significant Mitigation Significant Impact Incorporated Impact No Impact I. AESTHETICS. Would the project: a) Have a substantial adverse effect on a scenic ❑ ❑ Elvista? b) Substantially damage scenic resources, including, but not limited to, trees, rock outcroppings, and ❑ ❑ ❑ historic buildings within a state scenic highway? c) Substantially degrade the existing visual character ❑ ❑ ❑ or quality of the site and its surroundings? d) Create a new source of substantial light or glare that would adversely affect day or nighttime views ❑ ❑ ❑ in the area? SETTING Scenic vistas generally include areas of high scenic quality that are visible to a number of people, including recreational travelers. Scenic vistas within the city include views of the Santa Lucia foothills to the east and the Pacific Ocean to the west. Morro Bay is surrounded by hills and ridgelines. with more than half of the city's physical edge being coastline. The ocean and the hills are generally visible from area residences throughout the community. The city's edge at the urban/rurol boundary is also a defining characteristic. Other scenic resources in the area consist of: • The Pacific Ocean, the "working" harbor, and the great salt marsh at the southern end of the city, which dominate the landscape and provide sweeping vistas of ocean, beach, dune, bluff, and marsh, as well as the quaint harbor -side scenes for which Morro Bay is known. Morro Rock, which can be seen from almost any location in the city. • The sand pit that is visible from the Embarcadero, Coleman Drive, the State Park roads, and from bluff and hillside residential areas. • Mono Bay State Park, containing Black Hill, the golf course, and a campground, which comprises a large portion of the southern part of the city. In 1999, the portion of State Route (SR) 1 north of US Highway 101 in San Luis Obispo was declared an official scenic highway by the California Department of Transportation. Of the approximately 53-mile segment of SR 1 designated scenic that winds through San Luis Obispo County, approximately b miles are within Mono Bay. The existing visual character and quality of the city varies among its different portions, depending on land use and density. The majority of the city is built out. Major sources of light and glare include the stadium at Mono Bay High School, existing residential and commercial uses, and vehicles traveling on SR 1. Future development and rehabilitation of housing in the city would be regulated by the policies of the City's General Plan, the City's Municipal Code, and other relevant City regulations. The Visual Resources and Scenic Highway Element of the City's General Plan provides specific City of Morro Bay 2014-2019 Housing Element Update May 2014 Initial Study and Negative Declaration 2014-2019 HOUSING ELEMENT UPDATE objectives, policies, and programs for the protection of identified scenic vistas and resources in • Morro Bay. In addition, the City's Municipal Code prohibits the direction of light onto residential uses and public streets, requires the screening of light and glare from sensitive uses, and requires the control of glare from buildings and operations. The City's Street Tree Division maintains and enhances the city's streets, resulting in the overall beautification of Morro Bay. ANALYSIS AND CONCLUSIONS a-d) No Impact. In general, new development in the city could result in adverse effects on scenic vistas, scenic resources, and the visual character and quality of the city as well as the creation of new sources of light and glare. Such development would be subject to General Plan policy as well as the standards provided in Municipal Code Section 17.48.190, both of which are intended to identify and protect the city's visual resources. The Housing Element identifies the potential for development of up to 149 new housing units and rehabilitation of up to 35 existing housing units between 2014 and 2019. However, the proposed Housing Element is intended to identify sites that could accommodate these housing units and does not include any site -specific designs or proposals, nor does it grant any entitlements for development. Furthermore, no changes are proposed to land use designations or zoning districts that could result in new development or redevelopment. Therefore, the Housing Element would have no potential to result in adverse effects to the aesthetics of the city, and there would be no impact. • 2014-2019 Housing Element Update City of Morro Bay • Initial Study and Negative Declaration May 1014 10 0 E • 2014-2019 HOUSING ELEMENT UPDATE Less Than Significant Potentially Impact With Less Than Significant Mitigation Significant Impact Incorporated Impact No Impact II. AGRICULTURE RESOURCES. In determining whether impacts to agricultural resources are significant environmental effects, lead agencies may refer to the California Agricultural Land Evaluation and Site Assessment Model (1997) prepared by the California Department of Conservation as an optional model to use in assessing impacts on agriculture and farmland. In determining whether impacts to forest resources, including timberland, are significant environmental effects, lead agencies may refer to information compiled by the California Department of Forestry and Fire Protection regarding the state's inventory of forestland, including the Forest and Range Assessment Project and the Forest Legacy Assessment project; and forest carbon measurement methodology provided in Forest Protocols adopted by the California Air Resources Board. a) Convert Prime Farmland, Unique Farmland, or Farmland of Statewide Importance (Farmland), as shown on the maps prepared pursuant to the ❑ ❑ ❑ Farmland Mapping and Monitoring Program of the Califomia Resources Agency, to nonagricultural use? b) Conflict with existing zoning for agricultural ❑ ❑ ❑ use, or a Williamson Act contract? c) Conflict with existing zoning for, or cause rezoning of, forestland (as defined in Public Resources Code Section 12220(g)), timberland El ❑ ❑ (as defined by Public Resources Code Section 4526), or timberland zoned Timberland Production (as defined by Government Code Section 51104(y,))? d) Result in the loss of forestland or conversion of ❑ ❑ ❑ forestland to non -forest use? e) Involve other changes in the existing environment which, due to their location or ❑ El ❑ nature, could result in conversion of Farmland, to nonagricultural use or conversion of forestland to non -forest use? SETTING The city contains approximately 300 acres of agricultural land within the city limits. Additionally, the City has interest in resource protection and land use planning for agricultural areas outside of Morro Bay. These agricultural lands create a form of open space and define the edges of the community, maintain ripen areas that are critical to the function of groundwater recharge and percolation, and act as a productive use of the land for which the area was historically noted. There are no Williamson Act contracts within the city. Furthermore, no parcels in the city are zoned for timber production, and Morro Bay does not contain any significant forest resources that could be available for timber production. City of Morro Bay May 2014 11 2014-2019 Housing Element Updafe Initial Study and Negative Declaration 2014-2019 HOUSING ELEMENT UPDATE ANALYSIS AND CONCLUSIONS a-e) No Impact. As discussed previously, the proposed Housing Element is intended to identify sites that could accommodate development of housing to meet Morro Bay's future needs. The Housing Element does not include any site -specific designs or proposals, nor does it grant any entitlements for development. No changes are proposed to land use designations or zoning districts that could result in new development or redevelopment. Therefore, the Housing Element would not result in the conversion of any important farmland or foresfland to other uses, would not conflict with existing zoning for agriculture or timberland uses, would not conflict with a Williamson Act contract, and would have no impact on agricultural or forestry resources. 2014-2019 Housing Element Update Initial Study and Negative Declaration 12 City of Morro Bay May 2014 E E • • 2014-2019 HOUSING ELEMENT UPDATE Less Than Significant Potentially Impact With Less Than Significant Mitigation Significant Impact Incorporated Impact No Impact III. AIR QUALITY. Where available, the significance criteria established by the applicable air quality management or air pollution control district may be relied upon to make the following determinations. Would the project: a) Conflict with or obstruct implementation of the ❑ ❑ ❑ applicable air quality plan? b) Violate any air quality standard or contribute El ❑ Elsubstantially to an existing or projected air quality violation? c) Result in a cumulatively considerable net increase of any criteria pollutant for which the project region is in nonattainment under an ❑ ❑ ❑ applicable federal or state ambient air quality standard (including releasing emissions that exceed quantitative thresholds for ozone precursors)? d) Expose sensitive receptors to substantial ❑ ❑ ❑ pollutant concentrations? e) Create objectionable odors affecting a substantial ❑ ❑ ❑ 23 number of people? The city is located within the South Central Coast Air Basin and the boundaries of the San Luis Obispo County Air Pollution Control District (APCD). The APCD regulates air quality through its Clean Air Plan (CAP), Particulate Matter (PM) Report, and construction monitoring, among other measures. Throughout the county, ozone and PMio are the pollutants of primary concern, since exceedances of state health -based standards for those pollutants are experienced in the county during most years. Son Luis Obispo County is designated as a nonottainment area for the state PMio standards. Sources of PMio emissions include agricultural operations, construction activities, and vehicular emissions, of which vehicular emissions are the primary source of precursors to ozone. The major stationary source of air pollutant emissions affecting the city is Hanson Concrete. Other sources of air pollutant emissions are small- and large-scale businesses and facilities including dry cleaners, gas stations, the wastewater treatment plant, and harbor dredging operations. ANALYSIS AND CONCLUSIONS a—e) No Impact. As described previously, the Housing Element is a policy -level document intended to document existing conditions, project needs, and provide goals, policies, and programs that address the housing needs of the city for a five-year period. While the Housing Element identifies the potential for development of up to 149 new housing units, it does not include any site -specific designs or proposals, nor does it grant any entitlements for development. Furthermore, no changes are proposed to land use City of Aforro Bay May 2014 13 2014-2019 Housing Element Update Initial Study and Negatise Deduation 2014-2019 HOUSING ELEMENT UPDATE designations or zoning districts that could result in new development or redevelopment. Therefore, the Housing Element would have no potential to result in the emission of air pollutants or objectionable odors or otherwise affect air quality. There would be no impact. 2014-2019 Housing Element Update Initial Study and Negative Declaration 14 City of Morro Bay May 2014 • • 11 0 • 2014-2019 HOUSING ELEMENT UPDATE Less Than Significant Potentially Impact With Less Than Significant Mitigation Significant Impact Incorporated Impact No Impact IV. BIOLOGICAL RESOURCES. Would the project: a) Have a substantial adverse effect, either directly or through habitat modifications, on any species identified as a candidate, sensitive, or special - status species in local or regional plans, ❑ ❑ policies, or regulations, or by the California Department of Fish and Wildlife or US Fish and Wildlife Service? b) Have a substantial adverse effect on any riparian habitat or other sensitive natural community identified in local or regional plans, policies, or ❑ ❑ ❑ regulations, or by the California Department of Fish and Wildlife or US Fish and Wildlife Service? c) Have a substantial adverse effect on federally protected wetlands, as defined by Section 404 of the Clean Water Act (including, but not ❑ ❑ ❑ limited to, marsh, vernal pool, coastal wetlands, etc.), through direct removal, filling, hydrological interruption, or other means? d) Interfere substantially with the movement of any native resident or migratory fish or wildlife species or with established native resident or ❑ ❑ ❑ migratory wildlife corridors, or impede the use of native wildlife nursery sites? e) Conflict with any local policies or ordinances protecting biological resources, such as a tree ❑ ❑ ❑ preservation policy or ordinance? 0 Conflict with the provisions of an adopted habitat conservation plan, natural community El ❑ El plan, or other approved local, regional, or state habitat conservation plan? SETTING ►�I 0 I►-41 ►4 041 The City of Morro Bay has many sensitive habitat areas within and immediately adjacent to the community. These areas include critical habitat for several rare and endangered plant and animal species. Morro Bay and its estuary comprise a large wetland within the city, which is one of the most important wetlands on the central coast of California. Morro, Chorro, Toro, Alva Paul, and Los Osos creeks provide habitat for fish and other aquatic organisms, and food and shelter for migratory birds and other animals. Associated with these creeks are riparian scrub and riparian woodland communities. These communities are characterized by sparse to dense corridors of vegetation occurring adjacent to the streams. City of Morro Bay May2014 15 2014-2019 Housing Element Update Initial Study and .Negatis a Declaration 2014-2019 HOUSING ELEMENT UPDATE Sensitive habitats within the city include those described below. MORRO BAY ESTUARY The estuary supports one of the most important wetland systems on California's coast. Rich in natural diversity, Morro Bay sustains a wide variety of habitats as well as numerous sensitive and endangered species of plants and animals. Its rich resources support the state's largest waterfowl habitats. Morro Bay is a crucial stop on the Pacific Flyway, attracting vast numbers of migrating birds to the area. Morro Bay Estuary encompasses about 2,300 acres of mudflats, tidal wetlands, and open water habitat and supports a rich eelgrass resource. The Morro Bay watershed contains about 48,000 acres, including the estuary, and provides habitat for a number of endangered and/or threatened species, including but not limited to, steelhead trout, California red -legged frog, tidewater goby, Morro Bay kangaroo rat, southern sea otter, and western snowy plover. MORRO ROCK Morro Rock is located near the mouth of Morro Bay and is the northernmost visible igneous plug in a chain of peaks that extend from Islay Hill in San Luis Obispo to Morro Rock. The rock is connected to the mainland by a strand that comprises fill materials, much of it dredged from the bay during past operations. The ecological preserve located on Morro Rock serves as a nesting site for the federally endangered peregrine falcon (Falco peregrinus). It is a resting site for many other bird species. FAIRBANKS POINT Fairbanks Point is part of Morro Bay State Park and is located at the southern end of Morro Bay's city limits. The grove of eucalyptus trees located at the point serves as a major nesting site for herons, egrets, and cormorants. BLACK HILL NATURAL AREA This upland area of Morro Bay State Park is located southeast of the developed part of the city. The golf course is southwest of Black Hill. The dominant plant community in the Black Hill Natural Area is coastal sage scrub. Within the coastal sage scrub community are such species as California sagebrush, deerweed, and buckwheat. The community also contains species characteristic of chaparral and grasslands. As is typical of coastal foothill areas, the grasslands are characterized by pastureland and scattered grass openings in the chaparral. The rare (federal species of concern) Jones's layia (Layia jonesii) is located here. WESTERN SNOWY PLOVER CRITICAL HABITAT The western snowy plover (Charadrius alexandrinus nivosus) is a small shorebird, listed as federally threatened. This bird occurs on the Washington, Oregon, and California coasts including beaches within the City of Morro Bay. The US Fish and Wildlife Service has designated critical habitat areas for the threatened western snowy plover that include portions of Morro Strand State Beach and the Morro Bay Sand Spit. 2014-2019 Housing Element Update City of Morro gay Initial Sfudy and Negative Declaration May 2014 16 0 • r1 L J 11 • 2014-2019 HOUSING ELEMENT UPDATE BIRD SANCTUARY The City has designated itself as a "bird sanctuary." The bay and nearby areas ore home to hundreds of species, both as residents and migrants. Morro Bay is nationally known for the abundance of avian species and usually ranks near the top of the Audubon Society's annual count. Future residential development projects in the city would be required to comply with the City's policies related to biological resources, including General Plan Policies LU-50 through LU-62 and associated programs which require development to comply with the Coastal Act and encourage the preservation of open space and sensitive habitats. ANALYSIS AND CONCLUSIONS a-e) No Impact. In general, new development in the city could result in increased habitat loss and degradation of biological resources. However, as described previously, the proposed Housing Element is a policy -level document intended to identify sites that could accommodate development of housing to meet Morro Bay's future needs. While the Housing Element identifies the potential for development of up to 149 new housing units, it does not include any site -specific designs or proposals, nor does it grant any entitlements for development. Furthermore, no changes are proposed to land use designations or zoning districts that could result in new development or redevelopment. Therefore. the Housing Element would have no adverse effect on any special -status species, riparian habitat, wetlands, or other sensitive natural community. The Housing Element would not have the potential to interfere with the movement of any native resident or migratory species or conflict with any local regulations protecting biological resources. There would be no impact. No Impact. There are no adopted habitat conservation plans (HCP) or natural community conservation plans (NCCP) within the city. Therefore, the proposed Housing Element would not conflict with any such plans, and there would be no impact. City of Morro gay May 2014 17 2014-2019 Housing Element Update Initial Study and N'egarne Declaration 2014-2019 HOUSING ELEMENT UPDATE Potentially Significant Impact Less Than Significant Impact With Mitigation Incorporated Less Than Significant Impact No Impact V. CULTURAL RESOURCES. Would the project: a) Cause a substantial adverse change in the ❑ significance of a historical resource as defined in Section 15064.5i b) Cause a substantial adverse change in the ❑ El Elsignificance of an archaeological resource pursuant to Section 15064.5i c) Directly or indirectly destroy a unique ❑ El ❑ paleontological resource or site or unique geological feature? d) Disturb any human remains, including those ❑ ❑ ❑ interred outside of formal cemeteries? SETTING • The City of Mono Bay's archaeological resources include prehistoric and ethnohistoric Native American archaeological sites, historic archaeological sites, historic buildings, and elements or areas of the natural landscape that have traditional cultural significance. Mono Bay's proximity to the ocean and various streams and mild year-round climate made it an ideal location for • Indian settlement. Food was readily available and there were raw materials for the construction of shelters. For these reasons, Indian settlements were widespread in Mono Bay. Surveys have been required as part of several previous development projects in the city, which have indicated a significant Native American presence, including Chumash and Solinan, especially around the bay, near creeks, and near outcroppings suitable for grinding acorn mortars. The city may contain additional archaeological resources in areas where development has not yet occurred or in already developed areas of the city. Morro Rock is the city's only designated historical landmark. Future residential development projects in the city would be required to comply with all applicable California and City regulations related to the protection of historical and cultural resources. These regulations include General Plan Policy LU-82 and associated programs LU-82.1 through 82.7 and Municipal Code Section 17.48.310 (Protection of archaeological resources), which are intended to protect archaeological resources to the extent feasible. These programs require archaeological surveys prior to development, the halting of all construction activities if an archaeological resource is discovered, and the preparation of a mitigation plan to ensure the proper handling of any significant resources found. In addition, future projects would be required to follow the protocol established in California Health and Safety Code Section 7050.5(b) for the treatment of human remains discovered during ground disturbance. ANALYSIS AND CONCLUSIONS a-b, d) No Impact. In general, new development in the city could result in an adverse change in the significance of a historical or archaeological resource or human remains. However, as described previously, the Housing Element is a policy -level document intended to 2014-2019 Housing Element Update City of Morro Bay • Initial Study and Negative Declaration May 2014 18 2014-2019 HOUSING ELEMENT UPDATE • identify sites that could accommodate development of housing to meet the city's future needs. While the Housing Element identifies the potential for development of up to 149 new housing units, it does not include any site -specific designs or proposals, nor does it grant any entitlements for development. Furthermore, no changes are proposed to land use designations or zoning districts that could result in new development or redevelopment. Therefore, the Housing Element would have no impact on historic and archaeological resources or human remains. 0 cJ No Impact. In general, new development in the city could result in the destruction of unique paleontological resources or geologic features. However, as discussed previously, the proposed Housing Element is a policy -level document intended to identify sites that could accommodate development of housing to meet Morro Bay's future needs. While the Housing Element identifies the potential for development of up to 149 new housing units, it does not include any site -specific designs or proposals, nor does it grant any entitlements for development. Furthermore, no changes are proposed to land use designations or zoning districts that could result in new development or redevelopment. Therefore, the Housing Element would have no impact on paleontological resources and unique geologic features. City of Morro Bay May 2014 19 2014-2079 Housing Element tpdate Initial Study and Negative Declaration 2014-2019 HOUSING ELEMENT UPDATE Less Than Significant Potentially Impact With Less Than Significant Mitigalion Significant Impact Incorporated Impact No Impact VI. GEOLOGY AND SOILS. Would the project: a) Expose people or structures to potential substantial adverse effects, including the risk of loss, injury, or death, involving: i) Rupture of a known earthquake fault, as delineated on the most recent Alquist-Priolo Earthquake Fault Zoning Map issued by the State Geologist for the area or based on ❑ ❑ ❑ other substantial evidence of a known fault? Refer to Division of Mines and Geology Special Publication 42. ii) Strong seismic ground shaking? ❑ ❑ ❑ iii) Seismic -related ground failure, including ❑ El ❑ liquefaction? iv) Landslides? ❑ ❑ ❑ b) Result in substantial soil erosion or the loss of ❑ El Eltopsoil? c) Be located on a geologic unit or soil that is unstable, or that would become unstable as a result of the project, and potentially result in on- ❑ ❑ ❑ or off -site landslide, lateral spreading, subsidence, liquefaction, or collapse? d) Be located on expansive soil, as defined in Table 18-1-8 of the Uniform Building Code El El ❑ (1994), creating substantial risks to life or property? e) Have soils incapable of adequately supporting the use of septic tanks or alternative wastewater ❑ El ❑ disposal systems where sewers are not available for the disposal of wastewater? SETTING GEOLOGY AND SEISMIC HAZARDS The surface geology within the Coastal Franciscan domain consists of a northwest -trending sliver of largely Franciscan formation rocks, bounded by the Hosgri fault and West Huasno fault on the west and the Nacimiento fault and the Rinconada fault on the east. The Franciscan complex is a mixture of igneous, metamorphic, and sedimentary rocks. Cretaceous -age (65 to 140 million years old) and Tertiary -age (2 to 65 million years old) sedimentary rocks, including an unnamed Cretaceous sandstone and a relatively small amount of Lospe, Vaqueros, Rincon, Monterey, and Pismo formations, overlie the Franciscan Formation basement rocks in some parts of the region. The domain is characterized by moderate earthquake activity during the Quaternary 2014-2019 Housing Element Update initial Study and Negative Declaration 20 city of Morro Bay May 2014 • 0 E 2014-2019 HOUSING ELEMENT UPDATE • period and has numerous northwest -striking, mainly northeast -dipping faults, with uncertain potential to generate future earthquakes. The primary geologic hazards associated with this domain are ground shaking, liquefaction or seismic -related settlement of alluvium in the low-lying areas of the coastal portion of the domain, tsunami and coastal erosion in ocean -front areas, and severe landslide potential on moderate to steep hillsides. The Franciscan Formation and other Cretaceous -age rocks that are considered to be the formations most susceptible to landslides in the county underlie the slopes of the Santa Lucia Mountains. There are no mapped Earthquake Fault Zones within the city (DOC 2014). New development in the city would be subject to the requirements of the California Building Code, which provides specific requirements for seismic safety. SOILS The most fertile areas in the Mono Bay area can be found in the valleys where most of the agriculture occurs. Streams have eroded soils upstream and have transported and deposited them along the valleys. There are two types of alluviums in Morro Bay. The older alluvium, characterized by coarse -textured soils, is generally found in the Los Osos Creek Valley and coastal plain of Morro Bay. Consisting of old stabilized dunes, the soils are subject to excessive drainage, rapid permeability, and wind and water erosion. The soils are generally not fertile and are used mainly for urban uses and only marginal agriculture. The newer alluvium can be found in the Torro, Mono, and Chono Volleys. These cols are characterized by level, but poorly drained clays (Morro Bay, Urban Forest Management Plan). • ANALYSIS AND CONCLUSIONS a. c-e) No Impact. In general, new development in the city could result in the exposure of people and structures to potential substantial adverse effects associated with seismic hazards and unstable soils. However, as described previously, the Housing Element is a policy -level document intended to identify sites that could accommodate development of needed housing; it does not include any site -specific designs or proposals or grant any entitlements for development. Furthermore, no changes are proposed to land use designations or zoning districts that could result in new development or redevelopment. Therefore, the Housing Element would have no potential to result in the exposure of people or structures to risks associated with geologic hazards or soil stability. Therefore, there would be no impact. b) No Impact. In general, construction and operation of new development in the city could result in soil erosion and the loss of topsoil. However, as described previously, the proposed Housing Element is a policy -level document intended to identify sites that could accommodate development of needed housing; it does not include any site - specific designs or proposals or grant any entitlements for development. Nor would the proposed update change any land use designations or zoning districts that could result in new development or redevelopment. Therefore, the proposed Housing Element would have no potential to result in soil erosion, and there would be no impact. • City of Morro Bay 2014-2019 Housing Element Update May 2014 Initial Study and Negative Declaration 21 2014-2019 HOUSING ELEMENT UPDATE Less Than Significant Potentially Impact With Less Than Significant Mitigation Significant ,. Impact Incorporated Impact No Impact VII. GREENHOUSE GAS EMISSIONS. Would the project: a) Generate greenhouse gas emissions, either directly or indirectly, that may have a significant ❑ ❑ ❑ impact on the environment? b) Conflict with an applicable plan, policy, or regulation adopted for the purpose of reducing ❑ ❑ ❑ the emissions of greenhouse gases? SETTING Greenhouse gases (GHGs) generated by human activities can contribute to changes in the natural greenhouse effect, which could result in climate change. Greenhouse gases, which are transparent to solar radiation, are effective in absorbing infrared radiation. As a result, this radiation that otherwise would have escaped back into space is retained, resulting in a worming of the atmosphere. This phenomenon is known as the greenhouse effect. Among the prominent GHGs contributing to the greenhouse effect are carbon dioxide (CO2), methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride. Motor vehicles make up the bulk of GHG emissions produced on an operational basis for most nonindustrial projects. The primary GHGs emitted by motor vehicles include carbon dioxide, methane, nitrous oxide, and hydrofluorocarbons. A number of regulations have been developed to reduce GHG emissions, . as discussed below. Assembly Bill (AB) 1493 (Pavley) of 2002 (Health and Safety Code Sections 42823 and 43018.5) requires the California Air Resources Board (CARB) to develop and adopt the nation's first GHG emission standards for automobiles. These standards are also known as Pavley I. In 2004, the State of California submitted a request for a waiver from federal clean air regulations, as the State is authorized to do under the Clean Air Act, to allow the State to require reduced tailpipe emissions of CO2. In June 2009, the US Environmental Protection Agency (EPA) granted California's waiver request, enabling the State to enforce its GHG emissions standards for new motor vehicles beginning with the current model year. Also in 2009, a national policy aimed at both increasing fuel economy and reducing GHG pollution for all new cars and trucks sold in the United States was announced. The new standards cover model years 2012 to 2016 and raise passenger vehicle fuel economy to a fleet average of 35.5 miles per gallon by 2016. AB 32 (Health and Safety Code Sections 38500, 38501, 28510, 38530, 38550, 38560, 38561-38565, 38570, 38571, 38574, 38580, 38590, 38592-38599) requires that statewide GHG emissions be reduced to 1990 levels by the year 2020. The reduction to 1990 levels will be accomplished through an enforceable statewide cap on GHG emissions that will be phased in starting in 2012. To effectively implement the cap, AB 32 directs CARB to develop and implement regulations to reduce statewide greenhouse gas emissions from stationary sources. AB 32 specifies that regulations adopted in response to AB 1493 should be used to address GHG emissions from vehicles. However, AB 32 also includes language stating that if the AB 1493 regulations cannot be implemented, CARB should develop new regulations to control vehicle GHG emissions under the authorization of AB 32. 2014-2019 Housing Element Update City of Mono Bay • Initial Study and Negative Declaration May 2014 22 11 2014-2019 HOUSING ELEMENT UPDATE AB 32 requires that CARB adopt a quantified cap on GHG emissions representing 1990 emissions levels and disclose how it arrives at the cap, institute a schedule to meet the emissions cap, and develop tracking. reporting, and enforcement mechanisms to ensure that the state achieves reductions in GHG emissions necessary to meet the cap. CARB is implementing this program. The CARB Board adopted a draft resolution for formal cap-and-trode rulemaking on December 16, 2010, and is developing offset protocols and compliance requirements. AB 32 also includes guidance to institute emissions reductions in an economically efficient manner and conditions to ensure that businesses and consumers are not unfairly affected by the reductions. In October 2008, CARB published its Climate Change Proposed Scoping Plan, which is the State's plan to achieve GHG reductions in California required by AB 32. The Scoping Plan contains the main strategies California will implement to achieve reduction of 169 million metric tons (MMT) of CO2 equivalent (CO2e), or approximately 30 percent from the state's projected 2020 emissions level of 596 MMT of CO2e under a business -as -usual scenario (this is a reduction of 42 MMTCO2e, or almost 10 percent, from 2002-2004 average emissions). The Scoping Plan also includes CARB-recommended GHG reductions for each emissions sector of the state's GHG inventory. The largest proposed GHG reduction recommendations are from improving emissions standards for tight -duty vehicles (estimated reductions of 31.7 MMTCO2e), implementation of the Low Carbon Fuel Standard program (15.0 MMTCO2e), energy efficiency measures in buildings and appliances and the widespread development of combined heat and power systems (26.3 MMTCO2e), and a renewable portfolio standard for electricity production (21.3 MMTCO2e). In August 2012, CARB released revised estimates of the expected 2020 emissions reductions. The revised analysis relies on emissions projections updated in light of current economic forecasts, which account for the economic downturn since 2008 as well as reduction measures already • approved and put in place relating to future fuel and energy demand, as well as other factors. This reduced the projected 2020 emissions from 596 to 545 MMTCO2e. The reduction in projected 2020 emissions means that the revised business -as -usual reduction necessary to achieve AB 32's goal of reaching 1990 levels by 2020 is 21.7 percent. Energy conservation standards for new residential and commercial buildings were originally adopted by the California Energy Resources Conservation and Development Commission in June 1977 and most recently revised in 2008 and 2013 (Title 24, Part 6 of the California Code of Regulations [CCRj). The 2013 Standards go into effect on July 1, 2014. In general, Title 24 requires the design of building shells and building components to conserve energy. On July 17, 2008, the California Building Standards Commission adopted the nation's first green building standards. The California Green Building Standards Code (Part 11, Title 24) was adopted as part of the California Building Standards Code (Title 24. California Code of Regulations). Part 11 establishes voluntary standards on planning and design for sustainable site development, energy efficiency (in excess of the California Energy Code requirements), water conservation, material conservation, and internal air contaminants. Some of these standards have become mandatory in the 2010 edition of the Part 11 code. ANALYSIS AND CONCLUSIONS o-b) No Impact. In general, new development in the city could result in the emissions of greenhouse gases, thereby contributing to the global climate change. However, existing regulations that would apply to any future residential development, including the California Green Building Standards Code and California's Title 24 Building Energy Efficiency Standards, would substantially reduce GHG emissions associated with future projects. Furthermore, as discussed previously, the proposed Housing Element is a policy - level document intended to identify sites that could accommodate development of City of Morro Say 2014-2019 Housing Element Update May 2014 Initial Study and Negative Declaration 23 2014-2019 HOUSING ELEMENT UPDATE needed housing and does not include any site -specific designs or proposals or grant any • entitlements for development. Nor would it change any land use designations or zoning districts that could result in new development or redevelopment. Therefore, the Housing Element would have no potential to result in greenhouse gas emissions, and there would be no impact. 2014-2019 Housing Element Update Initial Study and Negative Declaration 24 City of Morro gay May 2014 • • • 2014-2019 HOUSING ELEMENT UPDATE Less Than Significant Potentially Impact Kith Less Than Significant Mitigation Significant Impact Incorporated Impact No Impact Vlll. HAZARDS AND HAZARDOUS MATERIALS. Would the project: a) Create a significant hazard to the public or the environment through the routine transport, use, ❑ ❑ ❑ or disposal of hazardous materials? b) Create a significant hazard to the public or the environment through reasonably foreseeable upset and accident conditions involving the ❑ ❑ ❑ release of hazardous materials into the environment? c) Emit hazardous emissions or handle hazardous or acutely hazardous materials, substances, or waste El ❑ ❑ within one -quarter mile of an existing or proposed school? d) Be located on a site which is included on a list of hazardous materials sites compiled pursuant to Government Code Section 65962.5 and, as a ❑ ❑ ❑ result, would it create a significant hazard to the public or the environment? e) For a project located within an airport land use plan area or, where such a plan has not been adopted, within 2 miles of a public airport or a ❑ ❑ ❑ public use airport, would the project result in a safety hazard for people residing or working in the project area? f) For a project within the vicinity of a private airstrip, would the project result in a safety ❑ El ❑ hazard for people residing or working in the project area? g) Impair implementation of, or physically interfere with, an adopted emergency response plan or ❑ ❑ ❑ emergency evacuation plan? h) Expose people or structures to a significant risk of loss, injury, or death involving wildland fires, including where wildlands are adjacent to ❑ ❑ ❑ urbanized areas or where residences are intermixed with wildlands? SETTING Due to the quantity and frequency with which hazardous materials are shipped through the region, transportation -related accidents pose a significant hazardous materials risk to the city. Major modes of hazardous material transportation include the use of State Routes 1 and 41 and numerous underground pipelines. In addition to the potential for transportation -related releases of hazardous materials, potential exposure of the public to hazardous materials can result from city of Mono Bay May 2014 25 2014-2019 Housing Element Update Initial Study and Negatisr Declaration 2014-2019 HOUSING ELEMENT UPDATE their use by industry, agriculture, commercial, and service establishments. Household use of hazardous materials also has the potential to result in their release into the environment. The Diablo Canyon Power Plant is the primary radiation hazard risk in the region. An uncontrolled release of radioactive material would have the potential to result in significant impacts. To prepare for potential emergency situations that might develop at the power plant, extensive warning, reporting, and response plans have been developed. Updated information regarding the Emergency Response Plan is distributed to the public each year. Additional potential radiation hazards include low-level radioactive waste from medical facilities and elsewhere. The hauling, handling, and disposal of these materials are governed by federal regulations. The Morro Bay Fire Department provides fire response and prevention services. The low -density urban development predominant in the city helps to minimize potential urban fire hazards. The California Department of Forestry and Fire Protection (Cal Fire) is responsible for preventing and controlling wildland fires. ANALYSIS AND CONCLUSIONS a-d) No Impact. In general, new development in the city could result in increased risks associated with the transport, use, and storage of hazardous materials or as a result of developing existing hazardous materials release sites. However, existing regulations at the federal, state, and local levels that would apply to any future residential development would substantially reduce risks associated with hazardous materials. Furthermore, as discussed previously, the proposed Housing Element is a policy -level document intended to identify sites that could accommodate development of needed housing. It does not include any site -specific designs or proposals or grant any entitlements for development, nor would it change any land use designations or zoning districts that could result in new development or redevelopment. Therefore, the proposed Housing Element would have no potential to exposure people or the environment to risks associated with hazardous materials. There would be no impact. e-f) No Impact. There are no airports in proximity to the city. Therefore, there would be no impact. g-h) No Impact. As discussed previously, the proposed Housing Element is a policy -level document intended to identify sites that could accommodate development of needed housing. It does not include any site -specific designs or proposals or grant any entitlements for development, nor would it change any land use designations or zoning districts that could result in new development or redevelopment. Therefore, the proposed Housing element would have no potential to interfere with emergency response or evacuation plans or expose people or structures to wildland hazards. There would be no impact. 2014-2019 Housing Element Update initial Study and Negative Declaration 26 City of Morro Say May 2014 • L n U • • • 2014-2019 HOUSING ELEMENT UPDATE Potentially Significant Impact Less Than Significant Impact With Mitigation Incorporated Less Than Significant Impact No Impact IX. HYDROLOGY AND WATER QUALITY. Would the project: a) Violate any water quality standards or waste El ❑ ❑ discharge requirements? b) Substantially deplete groundwater supplies or interfere substantially with groundwater recharge such that there would be a net deficit in aquifer volume or a lowering of the local groundwater table level (e.g., the production rate of pre- ❑ ❑ ❑ existing nearby wells would drop to a level which would not support existing land uses or planned uses for which permits have been granted)? c) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, in a manner ❑ ❑ ❑ which would result in substantial erosion or siltation on- or off -site? d) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, or substantially ❑ ❑ ❑ increase the rate or amount of surface runoff in a manner that would result in flooding on- or off - site? e) Create or contribute runoff water which would exceed the capacity of existing or planned ❑ El ❑ stormwater drainage systems or provide substantial additional sources of polluted runoff? f) Otherwise substantially degrade water quality? ❑ ❑ ❑ g) Place housing within a 100-year flood hazard area as mapped on a federal Flood Hazard El El ❑ Boundary or Flood Insurance Rate Map or other flood hazard delineation map? h) Place within a 100-year flood hazard area structures that would impede or redirect flood ❑ ❑ ❑ flows? i) Expose people or structures to a significant risk of loss, injury or death involving flooding, including ❑ ❑ ❑ flooding as a result of a failure of a levee or dam? j) Inundation by seiche, tsunami, or mudflow? ❑ ❑ ❑ IR City of Morro Bay May 2014 27 2014-2019 Housing Element Update Initial Study and Negative Declaration 2014-2019 HOUSING ELEMENT UPDATE 0 SETTING SURFACE HYDROLOGY AND FLOODING A watershed is the area of land that drains to a specific body of water. The city lies within several watersheds including Chorro Creek Basin watershed, Morro Creek Basin watershed, Toro Creek watershed, Alva Paul Creek watershed, Noname Creek drainage area, and small unnamed watersheds. The major watersheds within the city are the Mono and Chorro Basin watersheds. The Morro Basin watershed is approximately 15,400 acres, while the Chorro Basin watershed is approximately 27,670 acres including approximately 2,300 acres of mudflots, tidal wetlands, and open water habitat (Morro Bay 2011 a). According to flood insurance rate maps for the city prepared by the Federal Emergency Management Agency (FEMA), the northern and central portions of the city are located within the 1 percent Annual Chance Flood Hazard area (FEMA 2012). STORMWATER DRAINAGE Drainage within the city consists primarily of overland to surface drainage ways draining into the storm drain conveyance system and then draining to the bay or ocean. Some areas of the city drain directly to the bay or ocean (i.e., Embarcadero area) or to a creek that then drains to the bay or ocean (Morro Bay 2011 a). GROUNDWATER HYDROLOGY The city overlies two groundwater basins: the Morro and Chorro basins. These basins are shallow • alluvial aquifers located in the Morro and Chorro valleys. The basins behave similar to an underground stream. Rainfall in the watershed percolates into the ground and flows by gravity underground to the ocean. As a result, the basins have limited storage capacity (Morro Bay 2011 b, p.4-4). The City obtains a portion of its potable water supply from groundwater. In 1995, the State Water Resources Control Board (SWRCB) approved water right permits for up to 1.2 cubic feet per second (cfs) and 581 acre-feet per year (afy) from the Morro Creek subterranean stream underflow, and up to 3.171 cfs and 1,142.5 afy annually of Chorro Creek subterranean stream underflow. The Chorro Creek water right includes a condition that the City can only pump its wells when the Chorro Creek flow exceeds 1.4 cfs. This condition can limit the availability of the resource for use as a water supply (Morro Bay 2011 b, p. 4-5). The Morro Groundwater Basin was previously unavailable to the City as a water source due to nearby methyl tertiary butyl ether (MTBE) contamination in the groundwater basin. The City began treatment for MTBE in 2002 and continued this treatment until MTBE contamination levels fell below the Regional Water Quality Control Board's (RWQCB) monitoring threshold in 2008. Since then, the MTBE levels continue to remain below the RWQCB's monitoring threshold (Morro Bay 2011 b, p. 4-6). 2014-2019 Housing Element Update City of Morro Bay Initial Study and Negative Declaradon May 2014 28 • 2014-2019 HOUSING ELEMENT UPDATE • ANALYSIS AND CONCLUSIONS a-h) No Impact. In general, new development in the city could result in water quality degradation, groundwater depletion, increased stormwater runoff, and increased risk of flooding hazards. However, such development would be required to implement construction and post -construction best management practices in accordance with the City's Stormwater Management Plan. In addition, future development would be prohibited within 100-year flood hazard zones. As discussed previously, the proposed Housing Element identifies the potential for development of up to 149 new housing units and the rehabilitation of up to 35 existing housing units between 2014 and 2019. However, the proposed Housing Element is intended to identify sites that could accommodate these housing units. It does not include any site -specific designs or proposals, nor does it grant any entitlements for development. Furthermore, no changes are proposed to land use designations or zoning districts that could result in new development or redevelopment. Therefore, the proposed Housing Element would have no potential to impact water quality, groundwater supplies, drainage facilities, or flood hazard risk. There would be no impact. • • City of Morro Bay 2014-2019 Housing Element Update May 2014 Initial Study and Negative Declaration 29 2014-2019 HOUSING ELEMENT UPDATE Potentially Significant Impact Less Than Significant Impact With Mitigation Incorporated Less Than Significant Impact No Impact X. LAND USE AND PLANNING. Would the project: a) Physically divide an established community? ❑ ❑ ❑ IK b) Conflict with any applicable land use plan, policy, or regulation of an agency with jurisdiction over the project (including, but not limited to, the general plan, specific plan, local ❑ ❑ ❑ coastal program, or zoning ordinance) adopted for the purpose of avoiding or mitigating an environmental effect? c) Conflict with any applicable habitat conservation ❑ ❑ ❑ plan or natural community conservation plan? SETTING Morro Bay is divided into a series of residential and nonresidential land use designations. These different land use designations identify the locations In the city where specific types of land uses may occur. The land use designations used in the proposed Housing Element are derived from those used in the City's General Plan. ANALYSIS AND CONCLUSIONS a-b) No Impact. As discussed previously, the proposed Housing Element is policy -level document intended to identify sites that could accommodate needed housing. It does not include any site -specific designs or proposal or grant any entitlements for development. In addition, the proposed Housing Element update does not involve any changes to land use or zoning designations. Therefore, the proposed project would have no potential to divide the community or conflict with applicable land use plans, policies, or regulations. There would be no impact. c) No Impact. As discussed previously, there are no adopted habitat conservation plans (HCP) or natural community conservation plans (NCCP) within the city. Furthermore, the proposed Housing Element is policy -level document intended to identify sites that could accommodate needed housing. It does not include any site -specific designs or proposal or grant any entitlements for development. Therefore, the proposed project would not conflict with any HCP or NCCP, and there would be no impact. 2014-2019 Housing Element Update Initial Study and Negative Declaration 30 City of Morro Bay May 2014 • • • • 2014-2019 HOUSING ELEMENT UPDATE Less Than Significant Potentially Impact With Less Than Significant Mitigation Significant Impact Incorporated Impact No Impact XI. MINFRAI RFr(Ot1RC'F5. t,Vnsdd the nrniect a) Result in the loss of availability of a known El El ❑ mineral resource that would be of value to the region and the residents of the state? b) Result in the loss of availability of a locally important mineral resource recovery site ❑ ❑ ❑ delineated on a local general plan, specific plan or other land use plan? SETTINGS Since the US Army Corps of Engineers concluded its mining of Morro Rock, there are no known mineral resources extracted in Morro Bay. ANALYSIS AND CONCLUSIONS a-b) No Impact. As previously discussed, the proposed Housing Element is a policy -level document intended to identify sites that could accommodate needed housing. It does not include any site -specific designs or proposal or grant any entitlements for • development. Therefore, the proposed project would have no impact on mineral resources and mineral resource recovery sites. rI City of Morro Bay May 2014 31 2014-2019 Housing Element Update Initial Study and Negatise Declaration 2014-2019 HOUSING ELEMENT UPDATE Potentially Significant Impact Less Than Significant Impact With Mitigation Incorporated Less Than Significant Impact No Impact XII. NOISE. Would the project result in: a) Exposure of persons to or generation of noise levels in excess of standards established in the ❑ local general plan or noise ordinance or of applicable standards of other agencies? b) Exposure of persons to or generation of excessive groundborne vibration or ❑ ❑ ❑ IR groundborne noise levels? c) A substantial permanent increase in ambient noise levels in the project vicinity above levels ❑ ❑ ❑ existing without the project? d) A substantial temporary or periodic increase in ambient noise levels in the project vicinity ❑ ❑ ❑ above levels existing without the project? e) For a project located within an airport land use plan area or, where such a plan has not been adopted, within 2 miles of a public airport or a El ❑ ❑ public use airport, would the project expose people residing or working in the project area to excessive noise levels? 0 For a project within the vicinity of a private airstrip, would the project expose people El ❑ Elresiding or working in the project area to excessive noise levels? SETTING The most significant source of noise in Morro Bay is road traffic along State Route (SR) 1, Morro Bay Boulevard, Main Street, SR 41, and South Bay Boulevard. Additional sources of noise in the city include operational noise at businesses and residences and construction noise. ANALYSIS AND CONCLUSIONS a- d) No Impact. In general, new development in the city could result in the generation of noise and/or groundborne vibrations during both construction and operational phases. However, all such development would be subject to the noise standards contained in Chapter 17.52 of the City's Municipal Code. Section 17.52.030 prohibits noise in excess of the noise standards contained in the General Plan Noise Element, sets acceptable operational hours for uses generating excessive noise near residential uses, and requires the preparation of acoustical analyses as part of the development review process. In addition, Municipal Code Section 17.52.040 prohibits the generation of vibrations that would be noticeable at the property line where the vibration is generated. 2014-2019 Housing Element Update initial Study and Negative Declaration 32 City of Morro Bay May 2014 • • • • 2014-2019 HOUSING ELEMENT UPDATE As discussed previously, the proposed Housing Element identifies the potential for development of up to 149 new housing units and the rehabilitation of up to 35 existing housing units between 2014 and 2019. However, the proposed Housing Element is intended to identify sites that could accommodate these housing units. It does not include any site -specific designs or proposals, nor does it grant any entitlements for development. Furthermore, no changes are proposed to land use designations or zoning districts that could result in new development or redevelopment. Therefore, the proposed Housing Element would have no potential to expose people to excessive noise or groundborne vibration or exceed applicable noise standards either temporarily or permanently. There would be no impact. e-f) No Impact. There are no airports in the vicinity of the city. There would be no impact. City of Morro Bay May 2014 33 2014-2019 Housing Element Update Initial Study and .Negative Declaration 2014-2019 HOUSING ELEMENT UPDATE Potentially Significant Impact Less Than Significant Impact With Mitigation Incorporated Less Than Significant Impact No Impact XIII. POPULATION AND HOUSING. Would the project: a) Induce substantial population growth in an area, either directly (e.g., by proposing new homes and businesses) or indirectly (e.g., ❑ ❑ ❑ through extension of roads or other infrastructure)? b) Displace substantial numbers of existing housing, necessitating the construction of ❑ ❑ ❑ replacement housing elsewhere? c) Displace substantial numbers of people, necessitating the construction of replacement ❑ ❑ ❑ housing elsewhere? SETTING • In 1984, the citizens of Morro Bay enacted Measure F, a voter initiative that set the maximum population for the city at 12,200 and requires voter approval to increase the population above this limit. The city's growth rate was slowed by adoption of this measure, along with growth restrictions established by the Local Coastal Plan. According to the California Department of . Finance (2013), Morro Bay's population in 2013 was 10,317, a slight increase from the previous year's population estimate of 10,275 and a slight decrease from the city's 2000 population of 10,350. ANALYSIS AND CONCLUSIONS a) No Impact. In general, new development in the city could result in population growth. However, as described previously, the Housing Element is a policy -level document intended to identify sites that could accommodate development of needed housing, but it does not include any site -specific designs or proposals or grant any entitlements for development. Nor would it change any land use designations or zoning districts that could result in new development or redevelopment. Therefore, the proposed Housing Element would have no potential to induce substantial population growth in the city, and there would be no impact. b-c) No Impact. In general, new development and redevelopment in the city could result in the demolition of existing housing units, thereby displacing housing and people and requiring the construction of replacement housing elsewhere. However, as discussed previously, the proposed Housing Element is a policy -level document intended to identify sites that could accommodate development of needed housing. It does not include any site -specific designs or proposals, not does it grant any entitlements for development. The Housing Element would not change any land use designations or zoning districts that could result in new development or redevelopment. Therefore, the proposed Housing Element would have no potential to displace housing or people. There would be no impact. 2014-2019 Housing Element Update Gly of Morro Bay is Initial Study and Negative Declaration May 2014 34 2014-2019 HOUSING ELEMENT UPDATE Less Than Significant Potentially Impact With Significant Mitigation Impact Incorporated Less Than Significant No Impact Impact XIV. PUBLIC SERVICES. Would the project result in substantial adverse ph%,ical impacts associated with the provision of new or physically altered governmental facilities, need for new or physically altered governmental facilities, the construction of which could cause significant environmental impacts, in order to maintain acceptable service ratios, response times, or other performance objectives for any of the following public services: a) Fire protection? ❑ ❑ ❑ 23 b) Police protection? ❑ ❑ ❑ c) Schools? ❑ ❑ ❑ d) Parks? ❑ ❑ ❑ e) Other public facilities? ❑ ❑ ❑ SETTING FIRE PROTECTION The Morro Bay Fire Department provides fire response and prevention services. The department employs 10 career firefighters, 1 administrative technician, and up to 20 part-time reserve • firefighters. The firefighters are tasked with emergency planning, response, command, and mitigation of a wide variety of incidents, including paramedic services, fire suppression, rescue, and public education. Fire personnel operate from one fully staffed fire station located at 715 Harbor Street and one non -staffed station located at 460 Bonita Street. These facilities house a fleet of Pierce fire apparatus. The City operates two fire engines, one quint (75-foot ladder truck), one rescue vehicle, one command vehicle, two utility vehicles, a USAR trailer, and a mass casualty trailer. In addition to the City -owned fire engines. the Morro Bay Fire Department operates one engine provided by the California Office of Emergency Services (OES). OES provides this engine at no cost to the City. In exchange for use of the engine, the City agrees to staff and respond the engine to emergencies outside of the jurisdiction when requested. Out -of -county mutual aid requests for this engine occur approximately three to seven times per year. The department provides a wide array of fire prevention services focused on improving and maintaining fire and life safety within the community. Fire prevention activities ensure businesses, structures, open spaces, and construction projects are in compliance with adopted fire codes, standards, and ordinances. POLICE DEPARTMENT The Morro Bay Police Department (MBPD) provides law enforcement services to the city 24 hours a day, 7 days a week. The police station is located at 870 Mono Bay Boulevard. The MBPD currently consists of the following personnel: police chief, commander, support services manager, four sergeants, five corporals, and six officers. city of Mono Bay 2014-2019 Housing Element Update May 2014 Initial Study and Negative Declaration 35 2014-2019 HOUSING ELEMENT UPDATE SCHOOLS San Luis Coastal Unified School District (SLCUSD) operates on elementary school and a high school within the city: Del Mar Elementary located at 501 Sequoia and Morro Bay High School located at 235 Atoscadero Road. During the 2012/2013 school year, Del Mar Elementary had a total enrollment of 484 students, while Morro Bay High School had a total enrollment of 852 (EDP 2014). PARKS AND RECREATIONAL FACILITIES The Morro Bay Recreation and Parks Department manages numerous parks within the city including Del Mar Park, Anchor Street Park, Keiser Park, Morro Bay City Park, Centennial Park, Coleman Park, Boyshore Bluffs, Tidelands Park, Cloisters, Monte Young Park, Morro Bay High School, and Morro Rock Beach. In addition, San Luis Obispo County owns and operates a golf course in Morro Bay State Park. The state parks -Mono Bay State Park, Morro Strand State Park, and Montana de Oro State Park -offer camping facilities, passive recreational opportunities, and active recreational facilities. ANALYSIS AND CONCLUSIONS a-e) No Impact. In general, new development in the city could result in increased demand for public services that could trigger the need for new or expanded public facilities, the construction of which could result in impacts to the environment. However, as described previously, the proposed Housing Element is a policy -level document intended to identify sites that could accommodate development of needed housing but does not include any site -specific designs or proposals or grant any entitlements for development. Nor would it change any land use designations or zoning districts that could result in new development or redevelopment. Therefore, the proposed Housing Element would have no potential to result in increased demand for public services, and there would be no impact. 2014-2019 Housing Element Update initial Study and Negative Declaration 36 City of Morro Bay May 2014 • • 11 • • 2014-2019 HOUSING ELEMENT UPDATE Potentially Significant Impact Less Than Significant Impact With Mitigation Incorporated Less Than Significant Impact No Impact. XV. RECREATION. a) Would the project increase the use of existing neighborhood and regional parks or other recreational facilities such that substantial ❑ ❑ ❑ physical deterioration of the facility would occur or be accelerated? b) Does the project include recreational facilities, or require the construction or expansion of ❑ ❑ Elrecreational facilities, which might have an adverse physical effect on the environment? SETTING Morro Bay offers a wide variety of recreational opportunities such as hiking, nature walks, and sightseeing. Active recreation such as water sports, including surfing, fishing, diving, and recreational boating, are also prevalent along Morro Bay's shoreline areas. The city also has outdoor recreation facilities including sports fields, a roller hockey rink, a skate park, and basketball courts. The state parks (Mono Bay State Park, Morro Strand State Park, and Montana de Oro State Park) offer camping facilities, passive recreational opportunities, and active recreational facilities. In addition, San Luis Obispo County operates the Morro Bay Golf Course in Morro Bay State Park. The City manages Del Mar Park, Anchor Street Park, Keiser Park, Morro Bay City Park, Centennial Park, Coleman Park, Bayshore Bluffs, Tidelands Park, Cloisters, Monte Young Park, Morro Bay High School, and Morro Rock Beach. ANALYSIS AND CONCLUSIONS a—b) No Impact. In general, new development in the city could result in increased use of existing parks and recreational facilities and could include the development of new parks and recreational facilities. However, as described previously, the Housing Element is a policy -level document intended to identify sites that could accommodate development of needed housing. It does not include any site -specific designs or proposals or grant any entitlements for development, nor would it change any land use designations or zoning districts that could result in new development or redevelopment. Therefore, the proposed Housing Element would have no potential to result in an increased use of existing parks and recreational facilities or the development of new facilities. There would be no impact. City of Morro Bay May 2014 37 2014-2019 Housing Element Update Initial Study and Negative Declaration 2014-2019 HOUSING ELEMENT UPDATE Less Than Significant Potentially Impact With Less Than Significant Mitigation Significant Impact Incorporated Impact No Impact XVI. TRANSPORTATION/TRAFFIC. Would the project: a) Conflict with an applicable plan, ordinance, or policy establishing measures of effectiveness for the performance of the circulation system, taking into account all modes of transportation including mass transit and non -motorized travel ❑ ❑ ❑ and relevant components of the circulation system, including but not limited to intersections, streets, highways and freeways, pedestrian and bicycle paths, and mass transit? b) Conflict with an applicable congestion management program, including, but not limited to, level of service standards and travel demand measures, or other standards established by the county congestion management agency for designated roads or highways? c) Result in a change in air traffic patterns, including either an increase in traffic levels or a change in location that results in substantial safety risks? d) Substantially increase hazards due to a design feature (e.g., sharp curves or dangerous intersections) or incompatible uses (e.g., farm equipment)? e) Result in inadequate emergency access? f) Conflict with adopted policies, plans, or programs regarding public transit, bicycle, or pedestrian facilities, or otherwise decrease the performance or safety of such facilities? SETTINGS ROAD SYSTEM ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ Morro Bay is primarily a residential and commercial community that is traversed by a major regional roadway, State Route 1. SR 41 also terminates in Morro Bay, bringing travelers from the east. SR 1 and Main Street carry the highest levels of traffic in the community and are used for infra -community trips. Traffic flows well on these facilities during most periods. The bulk of the city's traffic is generated at the local residential road level and then flows to the arterials that connect to the adjacent highways. 2014-2019 Housing Efement Update city of Morro Bay Initial Study and Negative Declaration May 2014 38 C , J • is • • 2014-2019 HOUSING ELEMENT UPDATE PUBLIC TRANSIT Transit service within the city limits consists of dial -a -ride services (DAR). DAR is a door-to-door public transit system for all ages and is also accessible to disabled persons. AIRPORTS There are no airports in proximity to the city. ANALYSIS AND CONCLUSIONS a-bj No Impact. In general, new development in the city could result in increased vehicle traffic in Morro Bay, potentially degrading the performance of the roadway system. However, as described previously, the Housing Element is a policy -level document intended to identify sites that could accommodate development of needed housing. It does not include any site -specific designs or proposals or grant any entitlements for development, nor would it change any land use designations or zoning districts that could result in new development or redevelopment. Therefore, the proposed Housing Element would have no potential to result in increased vehicle traffic in the city, and there would be no impact. c) No Impact. Because there are no airports in proximity to the city, the proposed Housing Element would have no potential to affect air traffic patterns. There would be no impact. d-e) No Impact. In general, new development in the city could result in increased vehicle traffic as well as roadway improvements that could create traffic hazards or interfere with emergency access. However, all roadway improvements would be required to comply with City design and construction standards to ensure public safety. Furthermore, as described previously, the Housing Element is a policy -level document intended to identify sites that could accommodate development of needed housing. It does not include any site -specific designs or proposals or grant any entitlements for development, nor would it change any land use designations or zoning districts that could result in new development or redevelopment. Therefore, the proposed Housing Element would have no potential to result in traffic hazards or inadequate emergency access in the city. There would be no impact. No Impact. The Housing Element is a policy -level document intended to identify sites that could accommodate development of needed housing but does not include any site - specific designs or proposals or grant any entitlements for development. Nor would it change any land use designations or zoning districts that could result in new development or redevelopment. Therefore, the proposed Housing Element would have no potential to result in conflicts with public transit in the city, and there would be no impact. City of Mono Bay May 2014 39 2014-2019 Housing Element Update Initial Study and Negative Declaration 2014-2019 HOUSING ELEMENT UPDATE Potentially Significant Impact Less Than Significant Impact With Mitigation Incorporated Less Than Significant Impact No Impact XVII. UTILITIES AND SERVICE SYSTEMS. Would the proje(t: a) Exceed wastewater treatment requirements of the applicable Regional Water Quality Control ❑ ❑ ❑ Board? b) Require or result in the construction of new water or wastewater treatment facilities or expansion of El El El facilities, the construction of which could cause significant environmental effects? c) Require or result in the construction of new stormwater drainage facilities or expansion of El El Elexisting facilities, the construction of which could cause significant environmental effects? d) Have sufficient water supplies available to serve the project from existing entitlements and ❑ ❑ ❑ resources, or are new or expanded entitlements needed? e) Result in a determination by the wastewater treatment provider that serves or may serve the project that it has adequate capacity to serve the ❑ ❑ ❑ project's projected demand, in addition to the provider's existing commitments? f) Be served by a landfill with sufficient permitted capacity to accommodate the project's solid ❑ ❑ ❑ waste disposal needs? g) Comply with federal, state, and local statutes and ❑ ❑ Elregulations related to solid waste? SETTINGS WASTEWATER The City of Morro Bay and the unincorporated community of Cayucos share the existing Morro Bay-Cayucos Wastewater Treatment Plant at 65 and 35 percent, respectively, through a Joint Powers Agreement. Each community operates its own individual wastewater collection system. The Morro Bay-Cayucos Sanitary District (MBCSD) is jointly owned by the City of Morro Bay and the Cayucos Sanitary District and had on average daily flow of 1.089 million gallons per day in 2007. However, the City and the MBCSD are currently in the process of upgrading the treatment plant to full secondary treatment and to provide tertiary filtration capacity of 1.5 million gallons per day (Morro Bay 2014b). Currently, the plant operates under a modified discharge permit, National Pollutant Discharge Elimination System (NPDES) Permit NO. CA0047881, which waives full secondary treatment standards for suspended solids (SS) and Biochemical Oxygen Demand (BOD). For all other operations and constituents, full secondary treatment standards are maintained. The 2014-2019 Housing Element Update Initial Study and Negative Declaration 40 City of Morro gay May 2014 • 2014-2019 HOUSING ELEMENT UPDATE • wastewater treatment plant provides advanced primary treatment to effluent, which is discharged through a 5,000-foot ocean outfall. The plant discharges an average of 1.5 million gallons per day (mgd). WATER The City's water services are managed by the Public Services Department's Water Division and are guided by the City's water Management Plan (2008) and Urban Water Management Plan (2011). Like many coastal communities, the City of Morro Bay is dependent on state water for its primary water supply. Supplemental water supplies include a desalination plant and groundwater. Groundwater is extracted from the adjacent Chorro and Morro creek basins. The safe yield for these two basins was estimated in 1969 by the Department of Water Resources to be 1,700 acre-feet per year each. However, based on recent engineering studies, these figures proved to be too low. Currently, the City has eight wells in the Chono Basin and another eight in the Morro Basin. However, due to high nitrate content, operations of all of the wells but one has been impacted. Even with water quality impacts from nitrates in the local groundwater, the 2008 update of the Water Management Plan found that the City has sufficient water resources (Morro Bay 2008). DRAINAGE Morro Bay has generally hilly terrain with several major watercourses passing through the city that carries storm runoff from large areas outside of the city. With the exception of those water courses, the storm drainage patterns of the city are urban in nature, i.e., smaller localized • watersheds concentrate and convey runoff from urban -type development on the local street system and storm drainage facilities. As the city has grown, a system of storm drainage improvements has been constructed. Storm drainage within the city is managed by the Stormwater Management Division of the Public Services Department and is guided by the City's Stormwater Management Plan (2011). SOLID WASTE The City contracts with Mono Bay Garbage Service to provide residential and commercial garbage, recycling, and green waste collection services in Mono Bay. Solid waste is disposed of at the Cold Canyon Landfill located in San Luis Obispo, which, as of June 2010, had a remaining capacity of 1,830,000 cubic yards (ColRecycle 2014). ANALYSIS AND CONCLUSIONS c-g) No Impact. In general, new development in the city could result in increased demand for public utilities, including wastewater collection and treatment, water treatment and conveyance, stormwater drainage collection and conveyance, and solid waste collection and disposal. The provision of such services in the city is planned at a cumulative level to ensure adequate supply/capacity as the city is built out under the current General Plan. As discussed previously, the Housing Element is a policy -level document intended to identify sites that could accommodate development of housing. It does not include any site -specific designs or proposals or grant any entitlements for development, nor would it change any land use designations or zoning districts that could result in new development or redevelopment. Therefore, the proposed Housing Element would have no potential to result in increased demand for any public utilities requiring new or expanded public facilities. There would be no impact. • City of Mono Ray 2014-2019 Housing Element Update May 2014 Initial Study and Negative Declaration 41 2014-2019 HOUSING ELEMENT UPDATE Less Than Significant Potentially Impact With Less Than Significant Mitigation Significant Impact Incorporated Impact No Impact XVII I. MANDATORY FINDINGS OF SIGNIFICANCE a) Does the project have the potential to degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife population to drop below self-sustaining levels, threaten to ❑ El a plant or animal community, reduce the number or restrict the range of rare or endangered plants or animals, or eliminate important examples of the major periods of California history or prehistory? b) Does the project have impacts that are individually limited, but cumulatively considerable? "Cumulatively considerable" means that the incremental effects of a project are considerable when viewed in connection with the effects of past projects, the effects of other current projects, and the effects of probable future projects. c) Does the project have environmental effects that will cause substantial adverse effects on human beings, either directly or indirectly? ANALYSIS AND CONCLUSIONS ❑ ❑ ❑ ❑ a-c) No Impact. The proposed Housing Element is intended to accommodate forecast population growth under the existing land use designations and zoning districts. The proposed Housing Element policies and programs do not have environmental impacts that are cumulatively significant. The Housing Element includes methods of meeting State -mandated housing numbers, but it does not include or imply approval of any specific project. No changes are proposed to land use designations or zoning districts that could result in new development, population growth, major infrastructure upgrades, or other development or redevelopment that could have a significant impact on the environment. The proposed Housing Element update would be consistent with the Local Coastal Program (which includes the City's General Plan, Local Coastal Plan, and zoning regulations) and would not have the potential to substantially degrade the quality of the environment, as evidenced in the preceding discussions. 2014-2019 Housing Element Update Initial Study and Negative Declaration 42 City of Morro Bay May 2014 .1 L • 11 2014-2019 HOUSING ELEMENT UPDATE • REFERENCES California Department of Finance. 2013. E-1 Population Estimates for Cities, Counties, and the State with Annual Percent Change - January 1, 2012 and 2013. CalRecycle (California Department of Resources Recycling and Recovery). 2014. Facility/Site Summary Details: Cold Canyon Landfill Solid Waste DS (40-AA-0004). Accessed April 25. http://www.calrecycle.co-gov/SW Facilities/Directory/40-AA-0004/Detail/. DOC (California Department of Conservation). 2014. Regulatory Maps. Accessed April 23, 2014. http://www.quake.co.gov/gmops/WH/regulatorymaps.htm EDP (Education Data Partnership). 2014. Accessed April 24. http://www.ed- data.k I2.co.us/Pages/Home.aspx. FEMA (Federal Emergency Management Agency). 2012. Flood Insurance Rate Mop Panels 06079C0813G, 06079C1026G, and 06079C1027G, effective 11/16/2012. Morro Bay, City. 1982. City of Morro Bay Local Coastal Plan. 1988. City of Morro Bay General Plan. . n.d. Urban Forest Management Plan City of Morro Bay. . 2002. Morro Bay General Plan and Local Coastal Plan Update Initial Study. • —. 2008. City of Morro Bay Water Management Pion Status Report. —. 2009. Public Review Draft Initial Study/Negative Declaration for the City of Morro Bay 2009 Housing Element Update. . 2011a. City of Morro Boy Stormwater Management Plan February 2009-February 2014, Revised June 2011. 2011 b. 20I0 Urban Water Management Plan, City of Morro Bay. 2013. Wastewater Treatment Plant Project. Accessed April 25, 2014. http://ca- morrobay.civicplus.com/index.aspx?nid=352. . 2014a. City of Morro Bay 2014-2019 Housing Element Update Public Review Draft. . 20141p. City website. Accessed April 24. http://www.morro-boy.ca.us/. is City of Morro Bay 2014-2019 Housing Element Update May 2014 Initial Study and Negative Declaration 43 ® RESOLUTION NO.40-14 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ilIORRO BAY, CALIFORNIA DIRECTING THE LEVY OF THE ANNUAL ASSESSMENT FOR THE CLOISTERS LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT PURSUANT TO THE "LANDSCAPING AND LIGHTING ACT OF 1972" (STREETS AND HIGHWAYS SECTIONS 22500 ET.SEQ.) THE CITY COUNCIL City of D'lorro Bay, California NVHEREAS, on May 13, 2014: the Cit_v Council adopted Resolution No. 27-14 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 24, 2014 at 7:00 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 NVHEREAS, the City Council did hear objections of all interested parties as to the levy of the annual assessment for the Cloisters Landscaping and Lighting Maintenance Assessment District on June 24. 2014 at the Veteran's Memorial Building. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay: 1. 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 $14944 to be equally distributed per assessable parcel for the Fiscal Year 2014-1 5 is hereby confirmed. 2. Adoption of this Resolution shall constitute the levy of an assessment for the Fiscal Year 2014-15 and the Cit_v Clerk shall file the diagram and assessment with the County of San Luis Obispo Auditor. u RESOLUTION 40-14 PAGE PASSED AND ADOPTED by the Citv Council of the City of Morro Bay at a regular meeting thereof held this 24 b day of June. 2014 by the following roll call vote: AYES: Irons, C. Johnson, N. Johnson, Leage, Smukler NOES: None ABSENT: None ATTEST: J E BOUCHER, CITY CLERK 0 O J IIE L. IRONS, MAYOR Most n. oztberly corer Qt-122 cf TriaL IG08 0 m ® RESOLUTION NO.39-14 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA DIRECTING THE LEVY OF 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 SECTIONS 22500 ET. SEQ.) THE CITY COUNCIL City of Morro Bay, California WHEREAS, on May 13, 2014, the City Council adopted Resolution No. 28-14 declaring the Council's intent to levy an assessment for the annual maintenance of the North Point Natural Area and approving the Engineers Report; and WHEREAS, a public hearing to hear all protests as to the levy of the annual assessment ® of said district was scheduled for June 24, 2014 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 24, 2014 at the Veteran's Memorial Building. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro I� 1. 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 2014-1 5 is hereby confirmed. 2. Adoption of this Resolution shall constitute the levy of an assessment for the Fiscal Year 2014-15 and the City Clerk shall file the diagram and assessment with the County of San Luis Obispo Auditor. ® RESOLUTION 39-14 PAGE PASSED AND ADOPTED by the Cite Council of the City of Morro Bay at a regular meeting held this 24`h day of June, 2014 by the following roll call vote: AYES: Irons, C. Johnson, N. Johnson, Leage, Smul:ler NOES: None ABSENT: None J IE L. IRONS, MVVOR ATTEST: / F�il%/aA24,4� JAD14t BOUCHER, CITY CLERK n to EXHl:ilT 'A' cr MORRO HAY NORTH POINT NATURAL AREA I.A:NDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT D1STRIC'I' ASSESSMENT DIAGR,AIiA NORTH POINT NATURAL 1,REA LGEN D �') = CD11641' c•,'i'_�57P.� NLiI=cL Ftl li�[{d TACT 2110 KI ® RESOLUTION NO.38-14 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA APPROVING THE AGREEMENT REGARDING CONSENT TO ENCUMBRANCE FOR THE LEASE AGREEMENT FOR LEASE SITE 30W-33W LOCATED AT 201 MAIN STREET BETWEEN THE CITY OF MORRO BAY, BRUCE FOSTER & SUSAN FOSTER AND DEAN MARCHANT & CARLY MARCHANT THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City of Morro Bay is the lessor of property known as Lease Site 30W-33 W located at 201 Main Street: and WHEREAS, Bruce Foster "& Susan Foster and Dean Marchant & Carly Marchant are the current lessees of Lease Site 30W-33 W ; and WHEREAS. Bruce Foster & Susan Foster and Dean Marchant & Carly Marchant are currently the upland property owners of 201 Main Street adjacent to Lease Site 30W- ® 33 W; and WHEREAS. Bruce Foster & Susan Foster and Dean Marchant & Carly Marchant are refinancing their investment in said property to generate capital for improvements and repairs as required in their lease with the City; and NVHEREAS. Bruce Foster & Susan Foster and Dean Marchant & Carly Marchant's lender, Capital Bank, is requesting approval of a Consent to Encumbrance agreement to provide 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 attached agreement regarding Consent to Encumbrance for Lease Site 30W-33W is hereby approved and that the Mayor is hereby authorized to execute said agreement. 2 ® PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 24th day of June, 2014 on the following vote: AYES: Irons. C. Johnson_. N. Johnson, Leage, Smukler NOES: None ABSENT: None ..w Jardie L. Irons, Mayor ATTEST: v Jam Boucher. City Clerk DI El CONSENT TO ENCUMBRANCE THIS CONSENT TO ENCUMBRANCE ("Consent") is dated for reference purposes and effective as of June 24, 2014, by the ®City of Morro Bay, a municipal corporation ("Landlord"), for the benefit of Capital Bank, a Corporation ("Lender"), with reference to the following facts: ARTICLE I: RECITALS 1.1 Landlord and Bruce Foster & Susan Foster and Dean Marchant & Carly Marchant, (collectively, "Tenant'') have entered into that certain lease dated January 28, 2014 (the "Lease") covering certain premises located in San Luis Obispo County, California, commonly known as Lease Site 30W-33W, as 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 (the "Premises"). The Premises are further described in the Lease Sites map prepared by Garing, Taylor and Associates, which include detailed survey and dimensional data on said Premises. A copy of the official Lease Site map for Lease Site30W-33W adopted by City Council Resolution 77-74 is attached hereto as Exhibit A. 1.2 Lender has made 'or is about to make a loan to Tenant in the. amount of One Million Dollars and No Cents ($1,000,000) (the "Loan"). Repayment of the Loan will be secured_by a leasehold deed of trust ("Deed of Trust") encumbering Tenant's leasehold interest in the Premises created by the Lease (the "Leasehold"). 1.3 Landlord understands the accuracy in all respects of the information set forth herein by it may be and shall be relied upon by Lender. 1.4 NOW, THEREFORE, TO INDUCE LENDER TO MAKE THE LOAN TO TENANT, LANDLORD HEREBY DECLARES, UNDERSTANDS AND REPRESENTS TO LENDER THAT: ARTICLE H: CONSENT 2.1 Landlord's Consent. Landlord hereby consents to the encumbrance of the Leasehold, as evidenced by a Deed of Trust, approved by the City Attorney for Landlord, executed by Tenant in connection with the Loan; provided, that the proceeds from the Loan are used only (i) to finance acquisition of the Leasehold, (ii) to pay costs directly associated with capital improvements Tenant makes to the Premises or (iii) to refinance an existing debt secured by the Lease; provided, than ® any equity is used to pay for costs directly associated with capital improvements Tenant makes to the Premises. 2.2 Surrender or Premises: Amendment of Lease. Landlord agrees it shall not allow or agree to any cancellation, mutual termination, surrender, acceptance of surrender, modification, or amendment of the Lease without the prior written consent of Lender. IN WITNESS WHEREOF, this Consent is executed on behalf of the parties' duly authorized representatives on the date(s) indicated below and effective as of the date set forth above. DATE: _ltinc. 3Dt 2-o14 LANDLORD: Citv of Morro Bav: By: )4/4�fQ � Jamie. Irons, Mayor City Morro Bay prov edas to Form: se W. P one, Interim City Attorney i of Morro Bay El Error! Unknown document property name..Error! Unknown document property name. IX411�i- CIA a - - - - - - - - - - - I- ----------------- ro I „o ��� / gt �W r CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT State of California ss. County of San Luis Obispo On 3 o, -Z o t —) before me, Dana Swanson. Notary Public (Date) personally appeared �c.w e 1, r I rotes (Signeds) who proved to me on the basis of satisfactory evidence to be the person(s) whose nameO is/afe subscribed to the within instrument and acknowledged to me that he/s1Xe/they executed the same in hisAVr/their authorized capacity(i$), and that by his/het/tl-Air signature(g) on the instrument the person(o, 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. 2Lk'�__e' Lam• " C�s 0-- (Signature of Notary Public) My commission expires on 12/31/14. OPTIONAL DANA SWANSON COMM. #1919584 w AW cw-cao — ° Cotton. OEC. 31, 2Dt� r This area for official notarial seal. Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title of Type of Document: Ep cC , ,, k r-anC� Document Date: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer Signer's Name: ❑ Individual a Corporate Officer — Title(s): IV r ElPartner: ElLimited ElGearal ❑ Attomey-in-Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer Is Representing: (a h, b+ mo F3 ay Number of pages 1 Top of Numb here CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT State of California 1 )} County of San Luis Obispo ss. On Tvtc 2t3 2.01 t{ before me; Dana Swanson. Notary Public (Date) personally appeared (Signeds) who proved to me on the basis of satisfactory evidence to be the person( whose name( is/a/c subscribed to the within instrument and acknowledged to me that he/sl) they executed the same in his/bfthhev authorized capacity(iet4), and that by his/hgt/thgtr signature(sD on the instrument the person(, or the entity upon behalf of which the person(o 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. C"g N— (Signature of Notary Public) My commission expires on 12/31/14. OPTIONAL OANA StNANSON Comm. #1919584 sueoti `rives aef� CorrYrt • CEC. 31.2014 This area for official notarial seal. Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title of Type of Document: o ^S c + 4", P7., C. S rav w� Document Date: &I qo 1 Number of pages I (a Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer Signer's Name: ❑ Individual ❑ Corporate Officer —Title(s): ❑ Partner: ❑ Limited ❑ General ❑ Attorney -in -Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer Is Representing: Top of thumb here ® RECORDATION REQUESTED BY: CapitalBank 31351 Rancho Viejo Road Ste 101 San Juan Capistrano, CA. 92675 WHEN RECORDED MAIL TO: Capital Bank 31351 Rancho ViejoRoadSte 101 San Juan Capistrano, CA 92675 DEED OF TRUST FOR RECORDER'S USE ONLY THISI DEED OF TROST is elated June 10, 2014; among N. Bruce Foster & Susan Foster and Dean Marchant & Carly Marcharit:as tenants ("Trustor"I; Capital Bank, whose address is 31351. Rancho Viejo Road Ste 101, San Juan Capistrano, CA: •92675 (referred to below sometimes -as "Lender' and -sometimes -as "Beneficiary"); and Fidelity National Title Company, whose address .is 1212 Marsh Street, Suite 2,.San Luis Obispo, CA 93401 (referred*to below as:"Trustee".). CONVEYANCE AND GRANT. For valuable consideration. Trustor irrevocably grants, transfers and assigns io Trustee intrust; with power of sale, for the benefit of Lender as Beneficiary. all of Trustor's-right, title,,and interest in, to and'under the Lease descnbed below of the following described real property; together with all existing or subsequently erected or affixed buildings, improvements and fixtures; all easement§; rights of. way, -and; appurtenances: all water, Water rights and ditch riglits (including stock in utilities'with ditch or irrigation rights); and:all other rights roya ties,;an_d profits relating -to the feat property, including without limhadon any rielits Trustor later acquires in the fee simple title to the land, subject to ,the Lease, and all minerals, oil, gas, geothermal and similar marten, (the "Real Property"). located in San.Luis Obispo County, State of California: - Lease Site 30W-33W A copy of said Map is attached.hereto as Exhibit and made a part hereof by reference. The Real Property or its address is commonly known as: Morro Bay Lease Site 30W-33W, Morro Bay, CA 93442., Trustor presently assigns to- Lender (also 'known AsBeneficiaryin this Deed of Trust) all of Trustor s right; title, and interest in and to. all presentand future leases of :he -Property and all.Rents from the Property. This is an absolute -assignment of Rents made in connection withanobligation secured by real property pursuant to California Civil Code Section 2938. In addition, Trustor grants to Lender- a Uniform Commercial Code security interest in the.Personal Property and Rents. THIS DEED OF TRUST, INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST IN THE RENTS AND PERSONAL PROPERTY, IS GIVEN TO SECURE (A) PAYMENT OF THE INDEBTEDNESS AND (B) PERFORMANCE OF ANY AND ALL OBLIGATIONS UNDER THE NOTE, THE RELATED DOCUMENTS, AND THIS DEEDOFTRUST. THIS DEED OF TRUST IS GIVEN AND ACCEPTED ON THE. FOLLOWING TERMS: TRUSTOR'S REPRESENTATIONS AND WARRANTIES. Trustor warrants that: (a) this Deed & Trustisat Borrowers request and not at the request. of1ander; lb) Trustor has the full power, right, and authority to enter into this: Deed of Trust and to.hypothecate the Property; (c) the provisions of this Deed of Trust do not conflict with; or result in a default under any agreement or other instrument binding upon Truster and do not result in a violation of any law, regulation; court decfee or. order applicable to Trustor,: (d) Trustor. has established adequate means of obtaining' from Borrower'on a continuing' basis information about Borrower's financial conditien_; and (a) Lender has made no. representation' to Trustor-about Borrower Gncluding without Iimifationthe creditworthiness of Borrower). - TRUSTO_R'S WAIVERS. Except as prohibited by applicable law, Trustor waives any right to require Lender to (al make any presentment,. protest; demand, or notice of any kind, includingnoticeof change of any terms of repayment of the Indebtedness, default by -Borrower or any, other guarantor or surety, any action or nonacpon taken by Borrower, Lender, or any other guarantor or surety of Borrower, or the creation of new or additional Indebtedness; (b)-proceed against any person,'including Borrower,.before proceeding against Trustor; (c) proceed against any collateral for the Indebtedness, including Borrower's collateral, before proceeding against Trustor; (d) apply any payments: or proceeds received against the Indebtedness' in any order; (a) give. notice of the terms, time, and place of any sale of any collateral pursuant to the Uniform Commercial Code or any other law governing such sale; (f) disclose any information about the Indebtedness, Borrower; any collateral, or any.other guarantor or -surety; or about any action or nonaction of Lender; or (g) pursue any remedy or course of action in Lender's power whatsoever. Trustor also.waives any and all rights or defenses arising by reason of IN eny disability or other defense of Borrower, any other guarantor or surety or any other person; (p the cessation tram any cause whatsoever,other than payment in full, of. the Indebtedni-s s; U)'the application of proceeds:of the Indebtedness by Borrower for purposes other than the purposes understood andintended. by-Trustor and Lender; 1k) any act of omission:or commission by Lender which directly or indirectly results in or contributes to the'discharge "of Borrower ® or any other guarantor or surety, or the indebtedness, or the loss or operation of, of any collateral,by operatioof law or otherwise; (1) any statute of limitations in any action under this Deed of Trust or on. the Indebtedness; or Im) .any modification. or change interms of the Indebtedness, whatsoever, including without limitation, the renewal, extension, acceleration, or other change in the time payment of the DEED OF TRUST ® Loan No: 1850 (Continued) Page 2 Indebtedness is due and any change in, the interest rate. Trustor waives all rights anddefensesarising outof'an-election of remedies by Lender, even though that election of remedies, such as non+rydicial foreclosure witb -respect to security for a guaranteed obligation, has destroyed 'Trustw's rights of subrogation 'and _reimbursement against Borrower. by.the:operahbn of Section 1580d of the California Lode of Civil Procedure, or otherwise. Trustor waives "all rights and .defenses that Trustor may have because Borrower's obligation is -secured by realproperty. This means among other things: (1) Lender may collect.from Trustor ; without first foreclosing on any real or personal property collateral pledged by "Borrower: f2) If Lender forecloses on any real property collateral pledged by Borrower: lA) The amount of Borrower's obligation may" be reduced -only by the price for which the collateral.is sold at the:foreclosure sale, even it the collateral is worth more than the sale price. (B) Lendermaycollect from Trustor,even. if Lender, by foreclosing on the real pmperty collateral, has destroyed "any right Trustor may have:to collect from Borrower- This is an unconditional and irrevocable waiver of any rights and. defenses Trustor may have because Borrower's obligation is -secured by real property. These rights and defenses include, but are .not limited to, any rights and defenses based upon Section 580a, 580b, 580d, or 726 of the Code of Civil Procedure. Trustor understands and agrees that the foregoing waivers are. unconditional and irrevocable waiversof substantive rights -and defenses to which Trustor might otherwise be entitledunder state -and federal law.. The rights and defenses waived include, without limitation, those provided by Californfa laws, of suretyship and guaranty, anti -deficiency laws, and :fie Uniform Commercial Code. Trustor acknowledges - that Trustor has provided these waivers of rights and.defenses tvitFthe intention that they be fully relied upon by Lender. Trustdr further understands and. agrees that this Deed of Trust is a separate- and. independent contract,beiween Trustor and Lender, given for full and ampleconsideration, and is enforceable on own terms. Until all indebtedness is. pa id in.full, Trustor waives any right F to enforce any remedy Trustor may have against Borrower's or any other guarantor,. surety, or other person, and further, Trustor waives any right to participate in any collateraLfor the Indebtedness now or hereafter held by Lender. PAYMENT AND PERFORMANCE. Except as. otherwise provided 'in this Deed of. Trust, Borrower shall pay to Lender all Indebtedness -secured by this Deed of Trust as it becomes due, and -Borrower and Trustor shall perform- all their respective obligatiors.under the Note, this Deed of Trust. and.the Related Documents. POSSESSION AND -MAINTENANCE OF THE -PROPERTY. Borrower and Trustor agree that Borrower's and Trustor's possession and use of the Property shall be governed by the fallowing -provisions:: Possession and Use. Until the occurrence of. an Event of Default,. Trustor may (1) remain in possession and control of the Property; (2) use, operate pr manage the Property; and 13) collect the Ren's from the Property.. - Dury to -Maintain. Trustor shall maintain the "Property in tenantable condition and promptly perform all repairs,- replacements, and maintenance necessary to. preserve, its value: ' Compliance With Environmental Laws. Trustor represents and warrants to Lender that: n ) During the period ofTrustor's leasehold interest:in the Property, there has,been no use, generation,. -manufacture, storage, treatment, disposal, release'or threatened release of - any Hazardous Substance by any person on, under,"about orfrom Property; (2) Trustor has no knowledge_ of, or reason to to believe that there has been, except as previously disclosed inn acknovedged, by Lender in writing; (a) any breach or violation of any Environmental Laws, (b) any use, generation,"manufacture, storage., treatment, disposal,. release or threatened release of any Hazardous Substance on, under, about or from the Property by any prior owners or occupants of :e Property, or (c) .any actual or threatened litigation or claims of any kind by any person relating to such, matters; and .(3). Except as previously disclosed to and acknowledged by Lender In writing, (a) neither Tnistor nor any:teoent, contractor, agentor other authorized. user of the Property shalt use, generate, manufacture, store, treat; "dispose of or release any Hazardous Substance on, under, eoout or from the Property; and lb) any such acdvdty shall be conducted in compliance" with all ;applicable federal, state, and local laws, regulations and ordinances, including without limitation all Environmental Caws. 'Trustor authorizes Lender andits agens to enter upon the Property to make such hispeetions and teas, at Trustor's expense,. as Lender: may deem appropriate to determine compliance of the,Property with this section of the Deed of Trust. Any inspections or tests made by Lender shall be for lender's pumoses only and shall not be construed to: create any responsibility or liability on the part of Lender to Trustor 'or to any other person. The representations and warranties contained herein ere based on Trustor's due: diligence in investigating the Property for Hazardous Substances: Trustor hereby (1) releases and waives any future claims against Lender for indemnity of contribution in the event Trustor becomes liable for cleanup or other costs under any such laws; and (2) agrees to inderiuiity, defend; and hold harmless tender -against, arty and all claims, losses, liabilities; damages, penalties, •and expenses which Lender may directly or in sustain or suffer resulting from a breach of this section of. the Deed of Trust or as. a consequence of any use, -generation, manufacture, storage. disposal, release or threatened release" occurring prior to Trustor's,ownership or interest in the Property, whether or riot the same was or should have been "known to Trustor. The provisions of this -section of. the Deed of Trust, including. the obligation to indemnify and defend,, shall survive thepayment of the Indebtedness and the satisfaction and reconveyance of the lien of this Deed of Trust and shall not be effected by Lerder's acquisition of any interest in the Property, whether by foreclosure -or otherwise. Nuisance, "Waste. Trustor shall not. cause,conductor permit any nuisance nor commit, permit, or suffer any shipping of or: waste'on or to.the Property or any'portlon of :the Property. Without limiting the generality of the foregoing, Trustor willnotiemcve; or grant to any. other party the right to remove, any timber, minerals (including of and gas), coal, clay: -scoria_, soil, gravel or _rock `products without Lender's prior written consent. Removal of Improvements. Trustor shall not demolish or remove" any Improvements from the F.eeLProperty without Lender's prior written consent; As a condition: to the removal of any Improvements, Lender may require Trustor to make arrangements satisfactory to Lender to replace such Improvements with Improvements of at least equal value. Lender's Right to Enter. Lender and Lender's agents and representatives may enter upon the Real Property at all reasonable times to attend to Lenders interests and to inspect the Real Property for purposes of Trustor's compliance with the terms and conditions of this Deed of Trust ® .Compliance with Governmental Requirements Trustor shall promptly comply with a . If laws, ordinances; and regulations, now or hereafter in effect,"of all governmental authorities applicable to the. use or occupancy of the Property, including without limitation, the Americans With Disabilities Act. Trustor may contest in good faith my such law, "ordinance, or regulation and withhold complapce DEED OF .TRUST Loan No: 1850 (Continued) Page 3 ® during any proceeding, including appropriate appeals, so long as Tustor has notified Lender in writing prior to doingsoand so lone is, in Lender's sole opinion„ Lender's interests in the Property are not jeopardized. Lendermay require Truster to post adequate security or a surety bond, reasonabfysatistactory to Lender, to protect Lender's interest. Duty, to Protect. Truster agrees neither to abandon or leave unattended the Property. Trustor'shall :do all. other acts, in. addition to those aces set forth above in this',section, which from the character and use of the Property are reasonably necessary to :protect and. preserve the Property. " Compliance with Lease. Truster will.pay all rents and Will strictly observe and perform on a timely basis all other, terms, covenants; and conditions 'of the. Lease. Truster will indemnify,defend, and hold Lender harmless against all losses, liabilities,, actions, suits; proceedings,.cosis including attorneys' fees claims, demands, and damages whatsoever which maybe incurred.by reason of Trustor's failure to pay rents or strictly observe.or perform under the.Lease. - Other Agreements Relating "to the Lease. Truster further agrees (1) not to surrender, terminate, Pr cancel the Lease, and (2) net to modify, change, supplement alter, or amend the Lease, either orally or in writing, without. Lender's prior written consent. Any attempt by Truster to -do any of the foregoing without,Lender's prior written consent will be void and of no force and effect. At Lender's "option, Trustor will deposit with Lender as further security all original -documents relating to the Lease and the leasehold interest -in the Property. Unless Truster is -in breach or default of any of the terms contained in this Deed of Trust, Lender will have no right to cancel, modify; change," iupplement,.alter or amend the leasehold interest. No:estate in the. Propertyy wne@ier fee title to the leasehold premises, -the leasehold estate, or any-subazisehold estate, Will merge without Lender express written consent; rather these estates will remain separate and distinct, even if there is a union of these estates in the landlord, Trmtor, or a third party who purchases or otherwise acquiresthe:estates..Trustor further agrees that if Truster acquires all or a portion of the fee simple tide, or any other leasehold or subleasehold title to the Property, that tide will,. at Lender's. option, immediately become subject to the terms of. this Deed of Trust, and Truster will execute, deliver and record all documents necessary or appropriate to assure that such title is secured by this -Deed of Trust: - Notices Relating to theLeaset Truster will promptly notify Lender in writing:. N) if Truster is in default in the performance or observance of any of the terms, covenants, or condi;ions.which Truster is to perform or observe under the Lease;. (2) if any event occurs Which would constitute a default under the Lease; (3) if any notice of default is given to Trustor, by -the. landlord -under the Lease; f4) if, pursuant to the. Lease, any proceeds received for the Property are deposited- wiih someone ether than Lender, whether " received from any insurance on the Property or from the taking of any or all of the.Prope try by eminent domain; and. (5) if any arbitration or appraisal proceedings are requested or instituted -pursuant w the Lease: Truster agrees to provide Lender promptly with a copy of all written materials, relating to any of the above and to provide Lender with such other information as,Lender may reasonably request. Trusteragreesthat promptly after the execution and delivery of this Deed of Trust Truster win notifythe landlord under the Lease in writing of the execution and delivery of this Deed of Trust and of the name and address of. Lender and; will deliver a copy of this Deed of. Trust to the landlord. Option to Cure Lease Default. Upon Lender's receipt of any written notice of Trustor's :default under the Lease, Lender may, at Lender's"option, cure such default, even though Truster, or any eery on behalf of Truster, questions or denies the existence of svch default or. the nature of the default. Trustor expressly grants to Lender the absolute. and immediate right to enter upon uhe Property to such extent and as•.often as Lender in it sole discretion deems necessary or desirable in order to prevent or cure any such default by Trustor. DUE ON SALE - CONSENT BY LENDER. Lender may, at Lenders option, declare immediately due and payable all sums secured by this Deed of Trust upon the sale or transfer; without Lender's prior written consent, of all or, any pan of the Real Property; or any interest in the Real Property. A "sale or transfer' means the conveyance of Real Property or anyright; title oh interest in the Real Property; whether legal, beneficial or equitable; -whether voluntary or involuntary; whether by outright sale, deed, installment sale contract, land contract, contract for. deed, Iessehol_d idterest with a term greater than three. (3) years;. lease -option contract. or by sale, assignment, or transfer of any beneficial -interest in or to any land trust holding title to the Real Property, or by any other.method of conveyance of.an interest in the Real Property. However, this option shall -not be.exercised by Lender if such exercise is prohibited by applicable law. . TAXES AND LIENS. .The following provisions relating To the -taxes and liens on.the"Property are part:of this Deed of Trust: Payment.: Trustor shall pay When due (and in all events at least ten (10) days prior to delinquency) all taxes, specfal taxes, assessments, charges (including watera_nd sewer), fines and impositions. levied against or on account of the Property, and: shall pay when due all claims for work done on orfor services• rendered or material furnished to the Property. Trustor shag maintain. the Property free of all .liens having priority over or equal to the interest of Lender under this Deed of Trust except for the -lien of taxes and assessments not due and except asotherwise provided in this Deed of Trust. Right. to Contest: Trustor may Withhold payment of any tax,assessment; or claim In connection with a good faith dispute aver the .obligation to pay, so long as. Lender's interest in the Property is not jeopardized. If -.a lien arises or'is filed as a result of nonpayment, Trustor shall within fifteen (15) days after the lien arises or, if a lien is filed, within .fifteen (15) days after Trustor has notice of the "filing, secure the.discharge of the lien,or if requested by Lender, deposit with Lender cash or a sufficient coroonne surety bend or. other security satisfactory to Lender in an amount sufficient to discharge the lien plus;any costs and attorneys' fees,. orothercharges thaticould accrue as a result of"a' foreclosure "or sale under the lien. In any -contest, Trustor shall defend itself and. Lender and shall satisfy any adverse.judgment before enforcementagainst the Property. Trustor shall name Lender as an additional oblinee under any surety bond fumishedin the contest proceedings. 'Evidence of Payment_ Trustor shall upon demand furnish to Lender satisfactory evidence: of payment of the Taxes or assessments and shall-authorire the: apprppriate'governmimal official -to deliver to Lender at dme:a Written statement of -the taxes and assessments •against the Property. DEED OF TRUST Loan No: 1850 (Continued) Page 4 ® Notice of Construction. Truster shall notify Lender at least fifteen, (1.5) days before any -work is commenced, any services are furnished, or any materials are supplied to the Property, if any inechanids. lien, materielmen's lien; or other Mier could be asserted on account of the work; services, or materials. Truster will.upon request of Lender furnish to Lender advance assurances satisfactory to Lender that Trustor can and will pay the cost of such improvements. PROPERTY DAMAGE JNSURANCE. The following provisions relating to Insuring the. Property are a part of this Deed of Trust. Maintenance of Insurance. Truster shall procure and maintain policies of fire .insurance with standard extended coverage endorsements on a fair value basis for the, full insurable value covering all Improvements on the Real'Property in an amount. sufficient to avoid application. of any coinsurance clause and. with a standard mortgagee clause in favor of Lender. Truster shall also procure and maintain comprehensive general liability insurance in such coverage amounts as Lender may requestw uh.Trustee and Lender being named as additional insureds in such liability insurance .policies. Additionally, Truster shall maintain such other insurance, including but not limited to hazard, business interruption, and boiler insurance; as Lender may reasonably. require. - Notwithstanding the foregoing, in -no event shall Trustor be. required to provide hazard insurance in excess of the replacement value of .the improvements on the Real Property: Policies shall be written in forth, amounts, coverages and basisreasonablyacceptable to Lender and issued by a company or companies reasonably acceptable to Lender.--Trustori upon. requesfof Lender, will deliver to Lender from time to time the policies or certificates of insurance. in farm satisfactory to Lender; including stipulations that coverages will not be cancelled or diminished without at least: ten (10) days prior writtennoticeto tender. Each insurance policy also shall include an endorsement providing that,coverage,fn favor ofLenderwill notbe impaired in anyway by any act, -omission or defauk or Trustor or any other person. Should the Real Property be: located in an area. designated by the 'Administrator of the Federal Emergency Management Agency as a special flood hazard area, Trustor agrees to obtain and maintain Federal Flood Insurance, if available, f ii the full unpaid principal balance of the loan and any prior liens on the property securing the loan,.up to the maximum poricy.limits. set under_ the - National Flood Insurance Program; or as otherwiserequired by Lender, and to maintain such insurance for the term of the ban. Application of Proceeds. Trustor.shall promptly notify Lender of any loss or damage to the -Property. Lander.may make proof of lass if Trustor fals.to do so within fifteen (15) days of the.casualty. If in Lender's sole -judgment Lender's.securiy interest in the Property has been impaired, Lender may, at Lender's election,receive and retain the proceeds of any insurance.and apply the proceeds to the: reduction of the Indebtedness, payment of any lien affecting the.Propsrty, or the resiore5on and repair of the Property. It the proceeds are- to be applied to restoration and repair,. Trustor shal repair or replace the damaged or destroyed. Improvements in a' manner satisfactory to Lender. Lender shall, upon satisfactory proof of such expenditure, Day or reimburse Trustor from the proceeds for the reasonable cost of repair or restoration if Trustor is not in default under: tWDeed of Trust. Any proceed which have notbeen disbursed within 180 days after their receipt and which Lender has not -committed to'the,repair or restoration of. the Property shall be used first to pay any amount owing to Lender underthisDeed of Trust, then to pay accrued interest, and the remainder,if' any, shall be a reed to the principal balance of the Indebtedness: 1f.Lender holds =n _ _ r PP p P _ y. y proceeds: after payment in full of the IndebteHnesssuch. ® proceeds shall 6e nerd to TrusterasTrusfor's interests may :appear. Trustor's Report on Insurance. Upon request of Lender, however not more then oncea year; Trustor shall furnish to Lender a report on each existing policy of insurance showing: (1) the.name-of the insurer; (2) the risks insured; (3) the amount of the. policy; (4) the property insured, the then current replacement value of such propery and the manner of de a mining tits value; and (5) the expiration date of the policy. Trustor shall, upon request. of'Lender, have an codependent: appraiser satisfactory to Lender determine the cash value replacement cost of.the Property. LENDER'S EXPENDITURES. If any action, or proceeding is commenced that would materially .affect Lender's interest in the Property or if JiListar fails to compty withany provision of this Deed of Trust or any Related Documents, including but not limited to Trustor's.failure to discharge or pay when due any amounts Trustor_is required to discharge or pay under this. Deed of Trust or any Related Documents, Lender on Trustor's behalf may (but shall not be obligated :o) take any action that Lender deems appropriate, including but not limited to discharging or paying alrtaxes, liens,. securityinterests, encumbrances. and other claims; at any time levied or placed on the Property and paying all costs for insuring, maintaining and preserving the Property. All such expenditures incuffed or paid by Lender for such purposes will than bear interest at the -rate charged under the Note from the date -incurred orpsid-by Lender to the date of repayment by Trustor. All such expenses will become a part of the Indebtedness end; at.Lender's option, will (A) be payable on demand; (B) be added. to the. balance of the.Note and be appordoned among and.be payable _with any. installment payments to become due during. either (1} the term of any applicable insurance policy;. or (2) the remaining term of the Note; or (C) be treated as -a balloon payment which will be due and payable at the Note's maturity. The Deed of Trust also will secure payment of these amounts. Such right shall be in addition to all other rights and remedies to which tender maybe entitled upon Default. - WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership..of the, Proper' _are;a part of this Deed of Trust Title. Trustor warrants that: is) Trustor holds good and marketable title of retard to the- leasehold. interest in the Property pursuaotto the Lease, free and clear. of all liens and encumbrances other than those set forth in the Real Property description or in any tide - insurance policy, title report, or final title opinion issued in favor of, and accepted by; lender in connection with this Deed of Trust, and (b) Trusterhas the full.right,epower;, and authority to execute and- deliver this Deed otTrust to Lender. Defense. of Title: Subject to the exception in the paragraph above, Trustor warrants and will forever defend the title to the Property against the lawful claims of all persons. In the event any action or proceedingis commenced that questions Truster's title or the interest of Trustee or Lender under this Deed of Trust, Trustor shall defend the. action at Truster's expense. Trustor may be the nomfnai.party in such proceeding; but Lender shall be entitled to participate in the proceeding and toberepresented in the proceeding by counsel of Lender'sown choice, and Trustor will deliver, or causetobe delivered, to Lender such instruments as Lender may _ request ;rem time to time to permit such participation. Compfiance.With.Laws. Trustor warrants.that the Property .and Trustor's use of the Property complies with all existing applicable laws; ordinances, and regulations of governmental authorities. Survival of Representations and Warranties. All representations, warranties', and .agreements made by Truss. in this Deed of Trust shall survive. the execution -and delivery of this Deed of Trust, shall be continuing in nature, and..shall remain in full force and effect until such time.as Borrower's Indebtedness shall hie paid in full. DEED OF TRUST Loan No: 1850 (Continued) Page 5 -DIY, CONDEMNATION. The following provisions relating to eminent domain and inverse condemnation proceedings are a part of this Deed of Trust Proceedings. If.any. eminent domain or Inverse condemnation proceeding is commenced affecting the Property, Trustor shall promptly notify Lender in writing, and Truster shall pmmptiy.take.such steps as may be necessary to pursue ordefend the action and obtain the award. Trustor may be.the nominal party in any such proceeding, but Lender shall be entitled, at its election, to participate in the - proceedingand to be represented. in the proceeding by counsel of its own choice, and Truster will deliver or cause to be delivered to Lender such instruments and documentation as may be requested by Lender from time to time to pemit such participation. Application of Net Proceeds. If arty award Is made or settlement entered into in anycondemnationproceedings affectingall or any part of the Property or by any proceeding or purchase in lieu of condemnation, Lender may at its election, and to the extent permitted by law, require that all or any portion of the award or:settlement be applied to the. Indebtedness and to the repayment of all reasonable costs,`expenses;.and attomeys' fees incurred by Trustee•or Lender in connection with the condemnation proceedings. IMPOSITION OF TAXES, FEES. AND CHARGES BY GOVERNMENTAL AUTHORITIES. The. following provisions relating to governmental taxes, fees and charges are a' part:of this Deed of Trust Current Taxes. Fees and Charges. Upon request by Lender, Trustor shall execute such documentsinaddition to this Deed of Trust and take whatever other action isrequestedby Lender to perfect and continue Lender's lien on the Real Property. -Trustor shall reiriiburse' Lender for all taxes, as described below, together with all expenses incurred in recording, perfecting or continuing this Deed of Trust, including without:. limitation all taxes, fees, documentary stamps; and other charges for recording or registering this Deed of Trust. Taxes. The following shall constitute: taxes to which this section applies: III a specific tax.upon this type of Deed of Trust or upon all or any part of the Indebtedness secured by this Deed of Trust; (2) a specific tax on Borrower which Borrower is authorized or `required to deduct from psyments on the Indebtedness secured by type of Deed:of Trusti (3) a tax -on this type of Deed of Trust chargeable "against the Lender or the holder of the. Note; and (4) a specific tax..on all or" any portion of the. Indebtedness or on payments of principal and interest made.by Borrower. Subsequent Taxes. If any tax to which this section applies is enacted subsequent to the date of this Deed of Trust, this event shall have: the same effect as an Event of Default, and Lender may exercise any or all of its available remedies for. an Event of Default as providedbelow unless. Trustor either Ill pays the tax before ii becomes delinquent, or (2) contests the taxi asprovided above in the Taxes :and Liens�secdonand deposits with Lender cash or a sufficient corporate surety bond or other security satisfactory to Lender: SECURITY AGREEMENT; FINANCING STATEMENTS. The following provisions relating to this Deed of Trust as a security agreement are a part of this Deed of Trust: ® Security Agreement. This instrument shall constitute a Security Agreement to the extent any of the Property constitutes fixtures, and .Lender shall have all of the rights of a. securedparty under the Uniform Commercial Code as amended from time to time. Security -Interest. Upon request by Lender; Trustor shall take whatever action is requested by Lender to "perfect and continue -Lender's security interest in the Rents and Personal Property. Trustor shall reimburse Lender' for all expenses incurred- in perfecting or continuing this security interest. Upon default, Trustor shall not remove, sever or detach the. Personal Property from the Property. Upon default, Trustor shall assemble any .Personal Property not affixed to the Property in a manner and at a place reasonably convenient to Truster and. Lender and make-it.available to Lender within three (3) days after receipt of written demand from Lender to the extent permitted by applicable law. Addresses: 'The mailing "addresses of Trustor (debtor) and Lender (secured party) from which information concerning the security interest granted by this Deed of Trust may be obtained (each as required by the Uniform Commercial Code) are as statedon the first page of this Deed of Trust. FURTHER ASSURANCES; ATTORNEY -IN -FACT. The following provisions relating to further assurances and anomey-in-fact are a part of this Deed of Trust., .Further Assurances. At any time, and from time to time, upon request of Lender, Truster will make, execute and deliver, or will cause to 'be made, executed or delivered, to Lender or to Lender's designee, and when requested by Lender, cause to be nled, recorded, refiled,.-orrerecorded,, as the case may be, at such times and in such offices and.,ptaces. as Lender may deem appropriate, any and -all such mortgages, deeds of trust, security deeds, securfty agreements, financing statements, continuation statements, instruments of further assurance, certificates, and other documents as may, "in the .sole opinion of Lender, benecessaryor desirable in order to effectuate,.complete, perfect" continue, or preserve (1) Soffower's and Trustor's obligations underthe Note, this Deed:of Trust, -and the Related. Documents, and 12) . the liens and -security 1mrests created by this Deed of Trust as first and priorliens on the Property, whether now owned or hereafter. acquired by Trustor; Unless prohibited by law orLenderagrees to the contrary in writing, Trustor .shall reimburse Lender for all costs and expense.s incurred in connection with the matters referred to in this. paragraph.. Attorney -in -Fact. If' Truster to do any of the things referred to in the preceding paragraph; Lender may do so for and in the name o£T_rustor and at Tmstor's expense. For such "purposes, Trustor hereby irrevocably appoints Lender as Trustor's a$omey-in-fact for the purpose of matting, executing, delivering, sling, recording, and doing all other things as may 6e necessary or desirable; in Lender's sole opinion, to accomplish the matters referred. to in the.preceding paragraph. FULL PERFORMANCE: If Borrower and Trustor pay all the Indebtedness when -.due; and. Trustor otherwise .performs all the obligations imposed upon Trustor. under this Deed of Trust, Lender shall execute and defivervto Trustee request for full teconveyance°and,shall execute and deliver to Truster suitable statements of termination of any financing statement on foe evidencing Lender's security interest in. the Rents and the Personal Property. Lender may charge7rustof a.reasonable reconveyance feeat the time of teconveyance. EVENTSOF DEFAULT. Each of the following„ at Lender's option, shall constitute an Event of Default under this Deed of Trust: ® Payment Default. Borrower fails to make any payment when due under the Indebtedness. Other Defaults. Borrower or Trustor fails to comply with or to perform any other term, obligation, covenant or condition contained in DEED OF TRUST Is Loan No:, 1850 (Continued) Page 6 this -Deed of Trustor in any of the Related Documents "or -to comply with or to perform any term, obligation, covenantor condition contained in any other agreement between Lender and Borrower or Trustor. Compliance Default. Failure to comply with any other "term, obligation, covenant or condition contained in,this Deed of Trust, the Note or in any of the Related Documents. " Default on Other Payments. Failure of Trustor within the time required by this Deed of Trust to make any payment for :axes or insurance, or any other payment necessary to prevent filing of or to effectdischarge of any lien. Environmental Default. Failure of any party to comply with or perform when due anyterm, obligation, covenant or condition contained in any environmental agreement executed in connection with the Property. - Default in Favor of Third Parties. Should Borrower or any: Grantor default under any loan, extension of. credit, security agreement, purchase or sales agreement, or any other agreement in favor of any other creditor or person that may materially affect any of Borrower's or any Grartorls property or Borrower's ability to repay the Indebtedness or.Borrower's or Granmr's ability to -perform their respective obligations under.this Deed of Trust or any of the Related Documents, . False Statements. Any warranty: replesentation or statement Made or furnished to Lender by Borrower or Trustor or on Bortower s of Trustor s behalf under this Deed of Trust or the Related Documents,is:false or misleading in any niatedat respect, either now or at.the time made or furnished or becomes false or misleading at any time thereafter. Defective- Conateralization. This Deed of Trust or any of the Related Documents ceases to be in full force and effect (including -failure of any collateral document to createa valid and perfected -se unity interest or lien) at any time and for any reason. Death or. Insolvency. The death of Borrower or Trustor, the.insolvency of Berrdiwer of Trustor, the appointment of a receiver: for any part of Borrower's or Trustor's property; any assignment for the benefit of creditors, any type of creditor w_wkout, or the commencementdf,any proceeding underany bankruptcy b2 insolvency laws by or against Borrower or Trustoi; Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial procee inc,"self-help, repossession or any other method, by any creditor of Borrower or Trustor or by any governmental agency against any property securing__the Indebtedness. This Includes a garnishment of any.of Borrower's or trustor's accounts, including deposit accounts, with Lender. However, this Event of Defauh shall notapplyif.there is a"good faith dispute by Borrower Trustor as to the validity or reasonablenessofthe claim which is the basis w the creditor orforfeiture proceeding.and if Borrower or Trustor" gives Leader written ,notice of the, creditor or forfeiture proceeding -and deposits with Lender monies or a surety bond for the credhor or forfeiture proceeding, in an amount determined by Lender, in its -sole discretion, as.being an adequate reserve or bond for thedispute. Lease Default. Trustor defaults under the terms of the Lease, or any other event (whether or not Trustor's fault) results in the ® termination or cancellation of Trustor:s leasehold rights. Breach' of. Other Agreement_ Any breach by Borrower or: Trustor-under the terms of"any other agreement. between Borrower or Trustor :and Lender that fs not remedied within any grace" period provided %therem, including: without limitation any -agreement concerning any indebtedness or other obligation of Borrower or Trustor to Bender, whether existing now ar later. - Events Affecting Guarantor. Any.bf the preceding events occurs with respect.to any guarantor, endorser, surety, or accommodation party of any of the Indebtedness. or. any guarantor, endorser, surety, or accommodation party :des or becomes incompetent, or revokes or disputes the validity of, or liability under, any Guaranty. of -the Indebtedness. Adverse Change. A material adverse change occurs -in Borrower's or TrustprTs financial condition, or Lender believes the prospect of payment or performanceofthe Indebtedness is impaired. Insecurity. Lender tit good faith believes itselfinsecure. - Right to Cure. If any default; other than'a default in payment is curable and:ft Trustor has not been given a notice of a breach of the same provision of this Deed of Trust within -the preceding twelve 112) months, it may be cured if Trustor,.aftei Lender sends written notice to Borrower demanding cure of such default:" (1) cures'tha default within fifteen 115) days; or (2)' if the cure requires more rttediately than fifteen (15) days, irninitiates steps which Lender deems In Lender's sole discretion to be. sufficient to cure the default and thereafter continues and completes all reasonable _and necessary steps :sufficient to produce compliance as soon asreasonably .practical. RIGHTSANDREMEDIES_ ON DEFAULT. If an:Event ofDefault occurs under this :Deed of Trust, at any time thereafter, Trustee or Lender may exerciseany one or rnore of the following rights and remedies: Election of Remedies. Election bylender to pursue any remedy shall not exclude pursuf .of any other remedy, and ail election to make expenditures or to take action to perform an obligation of Trustor under this Deed of -Trust, after Trustor's failure,.to.perform, shall not. affect Lander's right to declare -a default and -exercise its remedies: ForeclosurebySale. Upon an Event of Default under. this Deed of Trust,. Beneficiary may declare. the entire Indebtedness secured by this Deed of Trust immediately due.and payable -by delivery, to Trustee of written declaration of default and demand for sale. and of written notice of default and of election to ,cause to be sold the Property, which notice Trustee.shall. cause to be filed .for record. - Beneficiary also shall deposit with Trustee this Deed ofYTrust, the. Note, other documents requested by Truster_, and all documents evidencing expendimres'secured hereby. After the lapse'of such 6me as may then be required by law following one:recordation of the notice of default and notice of sale having been given as then" required by law; Trustee, without demand oh Trustor, shall sell the Property at -the time and place fixed by it in the notice' of sale, either as a whole or in separate: parcels, and in such order as it may deten tiger at public auction to the highest bidder for cash in lawful money of the United States, payable at time of sale. Trustee may postpone. sale of all or any.por icn of the Property by public artrtouncement at.such time. and place of sale.. and from time to time thereafter -may postpone such sale by public announcement ".at the.time-fixed.by the preceding postponement in accordance with _ applicable: law. Trustee shall deliver to such purchaser its deed conveying the Property so sold, but. without any covenant or ® warranty, .express or implied. The recitals in such deed of any matters or facts shall be conclusive proof of the truthfulness thereof. Any person, including Trustor, Trustee or Beneficiary may purchase at -such sale. After deducting all costs, tees and expenses of DEED OF TRUST Loan No: 1850 (Continued) Page 7 Trustee .and of this Trust, including cost of evidence of title inconnectionwith sale, Trustee shall apply the proceeds of sale to payment of: all. sums:expended under the terms hereof, not then repaid, with accrued interest at the amount allowed by law in effect at the date hereof; all other sumsthen secured hereby; and the remainder, if any, to the person or persons legally entitled thereto. Judicial Foreclosure. With respect to all orany part of the Real Property; Lender shall have the right in lieu of foreclosure by power of sale to foreclose, by judicial foreclosure in accordance with and to the full extent provided by California law. UCC Remedies. With respect to all or any pa, "of the Personal Property, Lender shall. have .all the rights and remedies of a secured .parry under the, Uniform Commercial Code, including -without limitador. the right to recover any deficiency in the manner and to the hell extent provided by California law. Collect.Rems. Lender shall hm,the right, without: notice to Borrower or Truster to take possession of and manage the -Property and collect the .Rents, including amounts_ past due -and unpaid, and apply the net: proceeds, .over and above Lender's costs, against the Indebtedness;. in furtherance of this right, Lender may require any tenant or other user of the.Property to make payments of rent or use fees directly to Lender. If the Rents are collected by Lender, then Trustor irrevocably ,designates Lender as Trastbr's attorney-infact to endorse instruments received in:payment thereof in the name of Truster and to negotiate the sarne'and collect the proceeds. Payments by tenants or other users to Lender in response to Lender's demand shall satisfy the obligations for whichthe payments are made; whether or not any proper grounds for the demand existed. Lender may exercise its rights under this subparagraph either in person, by agent, -or. through a -receiver.. Appoint Receiver. Lender shall have the right to have a receiver appointed to take possession of:all or any part or the Property, with the•powar to protect and preserve the Property, to operate the -Property preceding foreclosure or sale, and to collect the Rents trorn ,he Property. andapply the.proceeds, over and above the cost of the receivership, against the Indebtedness. The,.receiver may serve without bond if permitted by law. Lender's right to the, appointment of "a receiver shall exist whether or not the apparent value.of the Property exceeds the. Indebtedness by a substantial amount. Employment by Lender shall not disqualify a person. from serving asa receiver. ' Tenancy at Sufferance. If Trustor remains in possession of the Property after the Property, is sold as provided above or Lender otherwise becomes emided to possession -of the Property upon default of Borrower or Trustor; Truster shall become a tenant at .sufferance of Lender or the purchaser of the Property and shall, at Lender's' option, either (1f pay a reasonable rental for the use of the'Propeny, or (2) vacate the Property immediately upon the demand of Lender. Other. Remedies. Trustee or Lender shall have any other right orremedy provided in this Deed of Trust orthe"Note orr available at law - or in equity. Notice of Safe. Lender shall give Trustor reasonable notice of the time and placecof any public sale cf the Personal Property or of the ® time after which any private saleor other intended disposition of the Personal. Property is"to be made Reasonable=notice shall mean notice givenat least ten (10) days before the time of the safe, or disposition. Any sale of the Personal -Property may be made in conjunction with any sale of the Real Property. Sale of the Property. To. theextentpermitted by applicable" law, Borrower and Trustor hereby waives any and all rights to: have the Property marshalled. In exercising its rights and remedies, theTrusteeor l-ender shall be free -to sell.all or any _part.of the Property together or "separately, in.one sale or by.separate sales. Lender shall.be entitled to bill at any public sale on all or any pertion.of the Property.' Attorneys' Fees; Expenses. B Lender institutes any suit or_action to enforce any of the terms of this Deed of Trust; Lender shall be entitled to recover such sum as the court may adjudge.reasonable as attorneys' fees at trial and upon any appeal. Whether or not any court action is involved, and to the extent not prohibited by law, all reasonable expenses Lender incurs that in Lender's opinion are - necessary at anytime for the protection of its interest or the enforcement -of its: rights shall become a pan of the Indebtedness payable on demand and shall.bear interest at the Ndtaiate from the data of the expenditure until repaid-: Expenses. covered by this paragraph include, without limitation, however subject to any limits under applicable law, Lenders attorneys' fees and Lender's�legaf -expenses, whether or not there Js a lawsuit, including attorneys' fees and expenses for bankruptcy proceedings fincluding.efforts to modify or vacate any automatic stay or injunction), appeals; and any anticipated post -judgment collection services, the cost. of searching records, obtaining tide reports (including foreclosure. reports), surveyors' reports, and appraisal fees, title insurance, and fees for the Trustee, to the extent permitted by applicable law. Trustor also will pay any courtcosts, in addition to all other sums provided by law. Rights of Trustee. Trustee shall have. all of the rights and duties of Lender as set forth in this. section. POWERS AND OBLIGATIONS OF TRUSTEE. The following provisions relating to the powers and obligations of Trustee are pan of this Deed of Trust: Powers of Trustee. 7n addition tq.ell powers of Trustee adsing as a matter of law, Trustee shall havethepower to sake the, following actions with respect to the.Property upon the written request of Lender and Trustor: la) join in preparing and (Bing a map or plat of the Real Proparty, including the'dedication of streets or other rights to the public; (b) join in growing any easement or creating any restriction on the*Real Property; and (c) join in any subordination or other agreement affecting this Deed of Trust or interest of Lender under this Deed of Trust." Obligations to Notify. Trustee shall not be obligated to notify -any other party of a. pending sale under any other trust deed or lien, of of any action or proceeding in which Trustor, Lender, or Trustee shall be a party, unless theaction or proceeding isbrought by "Trustee, Trustee. Trustee. shall meet all qualifications requiredforTrustee under applicable law. In addition to the rights and remedies set forth above; with respect to all or any part of the Property; -the Trustee shall have the right to foreclose by notice and.sale; and Lender' shall have the right'to fc=lose by judicial foreclosure, in either case in accordanc& with and to the full extent provided by applicable ® law. Successor Trustee. Lender, at Lender's option, may from time to time appoint a successor Trustee to any Trustee- appoints' under DEED OF TRUST Loan No: 1850 (Continued) page 8 this Deed of Trust by an instrument executed and. acknowledged by Lender and recorded in the. office of the recorder of San -Luis Obispo County,. State of California. The instrument shall contain, in -addition to:all other matters required bysiate law,the names of the -original Lender, Trustee;: and Trustor,.the book and page where this Deed of Trust is recorded, and the name and address of the successor trustee; and the instrument shall be executed and acknowledged by Lender or its successors in interest. The successor trustee; without conveyance of the Property, shall succeed to all the title; power, and dutiesconferred upon the Trustee in this Deed of Trust and by applicable- law. This procedure focsubstitution of Tnistee:shail govern to the exclusion of all other provisions for substitution. - Acceptance by Trustee. Trustee accepts this Trust when this .Deed of Trust, duly executed and ack:,uwledged,is made a public record -as provided by law. NOTICES. Any notice required to be given under this`Deed of Trust shall beSgivenin writing; and shall be effective when actually delivered, when actually received by telefacsimile (unless otherwise required by lave), when.deposited with a nationally recognized overnight courier, or, ifmailed;"when deposited in the United States mail, as;first class, certified or registered mail postage prepaid; diiectedto the addresses shown near the beginning of this Deed, of Trust. Trustor, requests that copies of any notices of default and sale be directed to Trustor's address shown near the begiming of this Deed of Tne L All copies of notices of foreclosure from the holder of any lien which has priority over this Deed.of Trust shall be sentto. Lender's address, as.shown-near-the beginning of this Deed of Trust. Any party may change is address for notices under this Deed of Trust by giving formal.written.notice to the -other parties, specifying thatthe purpose of the notice is to change the pary's address. For notice purposes, Trustor agreesto keep Lender informed at all times of Truster's current address. .Unless otherwise provided or required by law, if there.is more than.one Truster, any notice given by Lender to any Trustor is deemed to be .notice given to all Trusters. STATEMENT OF OBLIGATION FEE. Lender may collect a fee, not to exceed the maximum amount permitted by law, for furnishing the statement of obligation is providedby Section 2943_a' the Civil.Code of'Califomia. - MISCELLANEOUS PROVISIONS. The following misceflaneous.provisions are a -part of this Deed of Trust:. Amendments. This Deed of Trust,.tagether with any Related Documents, constitutes the ernim understanding and, agreement of the parties. as"to the matters set forth -in this.Dead of Trust. No alteration of or amendment to:this Deed a Tres' shall be effective unless given in'writing and sighed by the party or parties Sought to be chargedor bound by the alteration or amendment. Annual Reports. If. the Property is used for purposes other than Trustor's. residence, Trustor shall furnish to Lender, "upon request, a certified statement of net operating income received from the Property during Trusmr`s previous fiscal year in suchfonn.and detail as Lender shall require. 'Net operating income' shall mean.all cash receipts from the Property less all cash expenditures: made i_n connection with the operation of the Property.. , ® Caption Headings. Caption headings in this Deed of Trust are for convenience purposes only and are not to be used to interpretor definethe provisions of this. Deed of Trust. Merger. Thereshall be"na merger of.the-irftterestor'estate created by this Deed of Trust. with any ocher interest or estate,in the Property"st any time heldbyor for the benefit of Lender in any capacity, without the written consent of Lender. Governing Law. This Deed.of Trust willbe governed by federal law applicable to Lender and, to the,extent not preempted by federal law; the laws of the State. of California without regard to its conflicts of law. provisions. This Deed of Trust has been accepted by Lender in.the State of California. Choice of Venue. If there is a lawsuit,. Trustoragreesupon Lender's request to submit to the'jurisdiciion of the courts of Orange County, _State of California: Joint and Several Liability. All obligations of Borrower and Trustor under this Deed of Trust shall be joint aril -several, and all references to Trustor shall mean_ each and every Trustor; and all references to'Borrower.shall mean each and every Borrower. This means that each Trustor signing below is responsible for all obligations in this Deed of Trust. No Waiver by Lender. Lender shall not be deemed.to have waived any rights under this Deed of Trust unless "such waiver is given in writing and signed by Lender: •No delay-'oo omission on the part of Lender in exercising any right shall operate as a waiver cf such right or any other right: "A waiver by Lender of, a provision of this Deed of Trust shall not prejudice or constitute a waiver of Lender's right otherwise to demand strict compliance with that.provision or any other provision of this .Deed of Trust. No prior waiver. by Lender, nor, any course of dealing between Lender and Trustor, shall constitute a waiver of any of Lender's rights or of any of Trustor s obligations as to any future transactions. Whenever the consent of Lender is required under this Deed of Trust, the granting of such consent by Lender in *any instance shall not constitute cdritinuing consent to subsequent instances where.. such consent is required and in all cases such consent may be granted: or withheld in the sole discretion. of Lender. SeverabTty. If a court of competent jurisdiction" finds any provision of this Deed of Trust to be illegal, invalid, or unenforceable. as to any person ci circumstance; that finding.shall not make the offending provision illegal, invalid, or unenforceable as to any other person or circurnstance., If feasible; the offending provision shall be considered modified sothatit. becomes legal, valid and enforceable. If the offending provision cannot be so modified it shall be -considered deleted from this Deed of Tryst. -Unless otherwise required by law, the illegality; invalidity, or unenforceability of ,any provision of. this Deed of Trust shall not affect the -legality, validity or enforceability of any other provision of this Deed of Trust: - Successors end,Assigns. Subject toanylimitations:stated in this Deed of Trust on transfer of Truster's interest,. this Deed of Tnrs: shall be binding upon and inure to the benefit.of the parties, their.successors and assigns. If ownership of the Property becomes vested. in a person other than Trustor, Lender, withoufnotice-to,Trustor,may deal with. Truster's successors with reference to this Deed of Trust and the Indebtedness_ by way of forbearance or extension without releasing Trustor from the obligations of this Deed of Trust or liability under the Indebtedness. - ® Time isof the Essence. Time is of the essence, in the performance of this Deed of Trust. DEFINITIONS_. The following capitalized words and terms shall have the following meanings when used in this Deed of Trust. Unless specifically stated to the contrary, all references to dollar amounts shall: meanamounts in lawful money of the United States of America. DEED OF TRUST ® Loan No:. 1850. (Continued) Page 9 Words and terms used in the singular shall include the -plural, and the pluralshallinclude the:singular, as the context may require. Words and terms not otherwise defined in this Deed of Trust shall.have the meanings attributed to such terms in the: Uniform. Commerciaf Code: Beneficiary. The word 'Beneficiary' means Capital Bank, and its successors and assigns. Bomover. the-word'Borrower' means Dean Merchant and N.-Biu_ce Foster and includes all co-s_icners and co -makers signing the Note and all their successors and assigns. Deed of Trust The words "Deed of Trust' mean this Deed of Trust among Trustor, Lender, and Trustee, and includes without limitation -all assignment and. security interest provisions relating to the Personal Property and,Rents: Default THe word 'Default' means the Defaultsetfo.•th in this Deed of Trust in the section titled 'Default'. Environmental Laws. The words 'Environmental Laws' mean any and.all*state,-federal and local statutes, regulations. and ordinances relating to -the protection of human health or the environment, including without limitation the Comprehensive Environmental Response, Compensation, and Liability Act.. -of 1980, as amended, 42 U.S.C: Section 9601, at seq. ('CERCLA'), the Sgperfund .Amendments, and Reauthorization Act of 1986, Pub. L.'No. 99-499 ('SARA'), the Hazardous Materials Transportation Act; 49 U.S.C. Section 1601, at seq., the Resource Conservation and Recovery Act,. 42 U.S.C. Section 6901; et seq.,. Chapters 6.5 th ough 7.7 of Division 20 of the California Health and Safety Code,, Section 25100, et seq.,.or otherapplicablestate or federal laws, rules, or regulations adopted pursuant thereto. - Event of Default. The words 'Event of Default' mean any of the events of default set forth in this Deed of, Trust in the events of default section of this Deed of Trust. Guaranty. The.word 'Guaranty" means the guaranty from guarantor, endorser, surety, or accommodatdn'par=ty to Lender, including without fimitatidn a guara" ofallor part of the Note. Hazardous Substances. The words. "Hazardous- Substancesmean materials that, because of their quantity; concentration :or physical, chemical or infectious characteristics, may cause... or pose a present or potential hazard to human health br the environment wham improperly used, treated, stored, disposed of,. generated, manufactured, transported or otherwise handled. The words "Hazardous Substances' are used in their very broadest sense and -'include without limitation any .and all Hazardous or toxic substances, materials or waste as defined by or, listed under the Environmental Laws.. The ',arm "Hazardous Substances' also includes, withoutGmitation,:petroleum and petroleum by-products or any fraction thereof and asbestos. Improvements. The word 'Improvements" means ell existing and future improvements, Buildings; at, mobile. homes affixed on the Real Property, faonides, additions, replacements and ather construction on the Reel. Property. ® Indebtedness. The word'Indebtedness" means all principal .interest, and other•amounts, costs and expenses payable under the Note or Related Documents togethee.with all renewals of extensions of, modifications. of, consolidations of and substitutions for the Note or Related Documents and. any, amounts:expended or advanced by Lender 'todischarge Trustor's obligations ur expenses incurred by Trustee. or Lender to enforce Trustor's obligations under this Deed of Trust, together with interest on such amounts as provided in this Deed of. Trust. - - Lease. The word "Lease! means the lease of the Property dated. January 28, 2014, between City of Moro Bay, Landlord and Trustor, which was recorded as follows: Lender. The word "Lender' means Capital Bank, its successors.and assigns. Note. The ward 'Note' meansthe promissory note dated June 10, 2014,: in the original principal amount of $1,000,000.00 from Borrower to Lender, together with an renewals of, extensions of, modifications of; refinancings of, consolidations of, and substitutions.for the promissory note. or -agreement.. Personal Property. The words 'Personal .Property' mean all equipment; fixtures;. and other articles of personal property now or hereafter -owned by Trustor, andnow or hereafter attached or.affixed to the Real Property; together with all accessions, pans, and additions .to, all replacements of, and all substitutions for, any of such property; and together w('.h all proceeds (Including .without Iimitatloroall insurance proceeds and refunds of premiums) from any sale or other disposition. of the Property. property. The word 'P roperty' means collectively the Real Property and the,Personal.Proparty. Real Property. The words 'Real Property' mean the real prope try; interests and rights, as further described In this Deed of Trust Related Documents_ The words "Related Documents' mean all promissory notes, credit' agreements, loan agreements, security agreements, mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments, agreements and documents, whether now or hereafter existing„ executed in connection with the Indebtedness; except that the wards do not mean any guaranty or' ervimnmertal agreement whether now pr hereafter existing, executed In connection with -the Indebtedness. - Rents. The word 'Rents' means all present and future leases, rents, revenues, income, issues, royalties, profits;and other benefits derived from the Property together with the cash proceeds of the Rents. Trustee. The word 'Trustee' means Fdeliry National Title Company_, whose address is 1212 Marsh.Stree:, Suite 2, San Luis Obispo, CA 93401 and any substitute ocsuccessortrustees. - - Trustor. The. word "Trustor.' means N. Bruce Foster, Susan Foster, Dean Merchant and Cady Merchant. 2 ®DEED OF TRUST Loan No: 1850 (Continued) Page 10 EACH TRUSTOR ACKNOWLEDGE$ HAVING READ ALL THE PROVISIONS OF THIS DEED OF TRUST, AND EACH TRUSTOR AGREES TO ITS TERMS. / / TRUSTOR: Susan Foster x Dean Merchant X — Carly Merchant CERTIFICATE OF ACKNOWLEDGMENT STATE OF CA ®ll )55 COUNTY OF {Sf,r-�j�vif�.7��- On J UVLi /PML , 20j L before me, I\.,(I rid-►M ..5 N'L' ".y (�'�J�IZ, (here insert name and title of the offi er) personally appeared N. Bruce Foster, who proved to me on the basis of satisfactory evidence to be the persor117 whose name,alDare subscribed to the within instrument and acknowledged to me that&fshe/they executed the same in ris�her/their authorized capacitypF 'sT, and that byC3fher/their signatureXon the instrument the persorX, or the entity upon behalf of which the person!e 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. MIRIAM LAIN cow.R2048301 m WITNESS my hand and official seal. Notary Puolic-CaMornia W � � _ Spit LUIS OBISPOCOLIM Gartua. E�xp. N^0)�', se,,.t7, Signature (Seat) DEED OF TRUST ® Loan No: 1850 (Continued) Page 11 CERTIFICATE OF ACKNOWLEDGMENT STATE OF ri I1-: (th 1 ISS COUNTYOF "t-ry LVtb VUt. SI/= 1 On 21 f� ,r � 5 �. , 20(A before me, Rlin>Lw1 ""`yr )jbtl r y (here insert name and title of the officer) personally appeared Susan Foster, who proved tome on the basis oL4atisfactory evidence to be the personls) whose nameVj(Ls9are subscribed to the within instrument and acknowledged to me that hel a they executed the same in his/Witheir authorized capaciryli , and that by hislotheir signatur on the instrument the persoro, or theentityupon behalf of which the perso cted, 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. MIRIAM LAW COhw.#2046301 m WITNESS my hand and official seal. w ie�—d« �- Nolary Pub&-Cafdomia m Lu . W LUIS OBISPOCOUNIY ��'- h Camm. ExD: tfOV: 7, Z017 ' Signature �/ 1 / I / V "�x� (Seal) is CERTIFICATE OF ACKNOWLEDGMENT STATE OF I )SS COUNTY OF 1 On , 20 before me, (here insert name and title of the officer) personally appeared Dean Merchant, who proved to me on the basis of satisfactory evidence to be the persons) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in hisfher/their authorized capschy(ies), and that by hislherltheir signature(s) on the instrument the person(s), or the entity upon behalf of which the persons) acted, executed the instrument. 1 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 (Seal) DEED OF TRUST Loan No: 1850 (Continued) Page 10 EACH TRUSTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS DEED OF TRUST, AND EACH TRUSTOR AGREES TO ITS TERMS. TRUSTOR: X N. Bruce Foster Cth I It-ICA I t Ur ACKNUWLEDGMENT STATE OF ) ISS ® COUNTY OF I On , 20 before me, (here insert name and title of the officer) personally appeared N. Bruce Foster, who provedtome on the basis of satisfactory evidence to be the persons) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/shehhey 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 (Seal) E Loan No: 1850 DEED OF TRUST (Continued) CERTIFICATE OF ACKNOWLEDGMENT STATE OF , /J'4 ) SS COUNTY OF 't-• -t��Ct 1 On , 20 before me, (here insert name and title Of the officer) Page 11 personally appeared Susan Foster, 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/shelthey executed the same in his/her/their authorized capacitylies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(sl 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. WETNESS my hand and official seal. Signature (Seal) ® CERTIFICATE OF ACKNOWLEDGMENT STATE OF _ C(-�� �v5��C G ^ )SS COUNTY OF J�'k'� \ 4 C—U CD On 1L12C u2�P 20r J �t� before melJ'1• �C,ILvIJ�` �i�''_L_�� ��b l�C , (here insert name and title of-he.of5cer) personally appeared Dean Marchant, who proved to me on the basis of satisfactory evidence to be the person(X whose namels) istarE subscribed to the within instrument and acknowledged to me that he/sKilpey executed the same in hisR�erlOt.ir authorized capacltyfasf, and that by his/-r/their signature4j on the instrument the person(sl, or the entity upon behalf of which the personls) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is trueandcorrect. WITNESS my hand and official. seal. OFcIrIAL SEAL �bfa�°'__-='}yz i' hlilTAnY PLr Lb-,_,nuF03iJlc 2�-_ ��i'.•'.-')I CObcrri. 110. 202_8r7 q':.�'+`,f SAN DIEi30 CC',1114TY n ` _ My CCd+im. EXF. 4A ; 2u. 2017 g r 1'a-�.�s-ram.:-.-a-a.= Signature � ' C ISeal) DEED OF TRUST Loan No: 1850 (Continued) Page 12 CERTIFICATE OF ACKNOWLEDGMENT STATE OF l � ,� 1 �1 (� ( � ( 0— 1 1 )SS COUNTY OF \ On \ ] w tL � 2--V t \ , 20 l "A before me, 1 / -) there insert name and title of the ofncerl personally appeared Carly Marchant, who proved to me on the basis of satisfactory evidence to be the personK whose nameW is/aCe subscribed to the within instrument and acknowledged to me that� /she/IKiiy executed the same inpis/herl\hdir authorized capacityfipS), and that by bi'merlth� signature) on the instrument the personY" or the entity upon behalf of which the persons) acted, executed the instrument. // 1 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. OFFICI:;L SEAL PFACnCic t 1TF4 u(: NOTARY F'VoLIC-GALI?jRh!I?. Cf,lih5. NO. 3P2'c8; 7 � Signature 9 V-� A �T�:f oM OIEGOi:011Niy trY Wfil5. E>:P. I•.AA+' 2G. 201% � (Seal) (DO NOT RECORD) REQUEST FOR FULL RECONVEYANCE (To be used only when obligations have been paid in full) To: , Trustee The undersigned lathe legal owner and holder of all Indebtedness secured by this Deed of Trust. All slims secured by this Deed of Trust have been fully paid and satisfied. You are hereby directed, upon payment to you of any sums owing to you under the terms of this Deed of Trust or pursuant to any. applicable statute, to cancel the Note secured by this Deed of Trust (which is delivered to you together with this Deed of Trust), and to reconvey, without warranty, to the parties designated by the terms of this Deed of Trust, the estate now held by you under this Deed of Trust. Please mail the reconveyance and Related Documents to: Date: Beneficiary: By: Its LaserPro, Ver. 14.3.10.003 Copr. D+H USA Corporation 1997, 2014. All ftighs Reserved. - CA G:\HARLAND\CFI\LPL\GO,.FC TR-1131 PR-9 RESOLUTION NO. 37-14 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA TO APPROVE THE SUBMITTAL OF A CALIFORNIA ENERGY COMMISSION 1 % LOAN APPLICATION FOR UP TO S562,000 TO COMPLETE ENERGY EFFICIENT HVAC UPGRADES AND ENERGY GENERATION PROJECTS THE CITY COUNCIL City of Morro Bay, California WHEREAS, the California Energy Commission provides loans to school, hospitals, local governments, special districts, and public care institutions to finance energy efficiency improvements: and R'HEREAS, the City Council authorizes the Recreation and Parks Director to apply for an energy efficiency loan from the California Energy Commission to implement energy efficiency measures: and WHEREAS, in compliance with the California Environmental Quality Act (CEQA), the City Council finds that the activities funded by the loan are not projects and thus exempt from CEQA pursuant to Section 15301 (Existing Facilities), Class I of the CEQA Guidelines because the projects consist of the repair, maintenance, and minor alteration of existing public structures, facilities, and mechanical equipment involving negligible or no expansion of the existing use: and WHEREAS, if recommended for funding by the California Energy Commission, the City ® Council authorizes the Recreation and Parks Director to accept a loan up to five hundred sixty-two thousand dollars (S562,000): and WHEREAS, the amount of the loan will be paid in full, plus interest, under the terms and conditions of the Loan Agreement, Promissory Note and Tax Certificate. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Morro Bay, the Recreation and Parks Director is hereby authorized and directed to execute all necessary documents to implement and cam out the terms of the loan and to undertake all actions necessary to undertake and complete the energy efficiency projects. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 10'" day of June, 2014 on the following vote: AYES: Irons, C. Johnson_. N. Johnson, Leage, Smukler NOES: None ABSENT: None le L. Ir ns. Mavor ATTEST: q ® Jarq"L6 Boucher, City Clerk RESOLUTION NO. 36-14 A RESOLUTION OF THE CITY COUNCIL ® OF THE CITY OF MORRO BAY, CALIFORNIA AMENDING VARIOUS SECTIONS OF THE CITY COUNCIL POLICIES AND PROCEDURES MANUAL REGARDING MAYOR PRO TEMPORE THE CITY COUNCIL City of Morro Bay, California WHEREAS, the Council Policies and Procedures Manual for the City of Morro Bay (the "Manual") is a combination of City Council actions, policies, references, and information regarding the City Council: and WHEREAS, to ensure all Councilmembers are familiar with and understand the City of Morro Bay's philosophies and policies regarding serving on the City Council, on July 23, 2001, the City Council adopted Resolution 47-01 approving an early version of the Manual; and WHEREAS, the Manual has been amended several times throughout the years; and WHEREAS, at its meeting of May 27, 2014, through adoption of Ordinance 586, the City Council amended the Morro Bay Municipal Code regarding references to Vice Mayor and Mayor Pro Tempore; and WHEREAS, that amendment requires amendments to various Sections of the Manual as they, ® too, refer to Vice Mayor. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, as follows: SECTION 1. The Manual is readopted. as attached hereto as Exhibit A. SECTION 2. This Resolution shall be effective as of June 27, 2014 PASSED AND ADOPTED by the City Council. City of Morro Bay at a regular meeting thereof held on the 1 Oth day of June. 2014 by the following vote: V V AYES: Irons, C. Johnson, N. Johnson, Leage, Smukler NOES: None ABSENT: None ABSTAIN: None la i •4,4tno JAi E L. IRONS. Manor ATTEST: ® t/� JAME BOUCHER. City Clerk Cityof Morro Bay y Council Policies and Procedures SCOPE This resolution shall establish the procedures for the conduct of all meetings of the City Council of the City of Morro Bay. The purpose of • this resolution is to provide that the City Council's meeting procedures will be consistent with the Brown Act (Government Code Sections 54950 et seq.) establish procedures which will be convenient for the public and contribute to the orderly conduct of the City's business. The procedures herein are in addition to, and not in place of, Morro Bay Municipal Code 2.08 and any other applicable ordinances and statutes, and in the event of conflict between this resolution and applicable ordinances or statutes, the latter shall govern. RESOLUTION NO: 46-02 ADOPTED BY THE CITY COUNCIL OF THE CITY OF MORRO BAY ON AUGUST 12, 2002 APPROVING AND ADOPTING • THE COUNCIL POLICIES AND PROCEDURES MANUAL AND RESCINDING RESOLUTION NO. 47-01 RESOLUTION NO: 54-03 • ADOPTED BY THE CITY COUNCIL OF THE CITY OF MORRO BAY ON NOVEMBER 13, 2003 AMENDING COUNCIL POLICIES AND PROCEDURES MANUAL SECTIONS 1.2.2 AND 1.3.7.1.1 RESOLUTION NO: 37-04 ADOPTED BY THE CITY COUNCIL OF THE CITY OF MORRO BAY ON JUNE 24, 2004 AMENDING COUNCIL POLICIES AND PROCEDURES MANUAL SECTION 1.3.9.3.5 RESOLUTION NO: 42-05 ADOPTED BY THE CITY COUNCIL OF THE CITY OF MORRO BAY ON NOVEMBER 14, 2005 AMENDING COUNCIL POLICIES AND PROCEDURES MANUAL • SECTION 4.5 RESOLUTION NO: 23-06 ADOPTED BY THE CITY COUNCIL OF THE CITY OF MORRO BAY ON MAY 22, 2006 AMENDING COUNCIL POLICIES AND PROCEDURES MANUAL REGARDING CANCELLATION OF MEETINGS RESOLUTION NO. 24-07 ADOPTED BY THE CITY COUNCIL OF THE CITY OF MORRO BAY ON MAY 14, 2007 AMENDING COUNCIL POLICIES AND PROCEDURES MANUAL REGARDING EX PARTE COMMUNICATIONS • (Updated on 6t2/103/143) . RESOLUTION NO.5"7 ADOPTED BY THE CITY COUNCIL OF THE CITY OF MORRO BAY ON OCTOBER 8, 2007 ADDING TO AND AMENDING COUNCIL POLICIES AND PROCEDURES MANUAL REGARDING USE OF CITY LETTERHEAD AND USE OF SPEAKER SLIPS AT CITY COUNCIL MEETINGS RESOLUTION NO. 76-M ADOPTED BY THE CITY COUNCIL OF THE CITY OF MORRO BAY ON NOVEMBER 10, 2008 AMENDING COUNCIL POLICIES AND PROCEDURES MANUAL REGARDING THE ORDER OF BUSINESS ON THE CITY COUNCIL AGENDA, APPOINTMENT OF VICE MAYOR AND FILLING COUNCIL VACANCIES • RESOLUTION NO. 11-10 ADOPTED BY THE CITY COUNCIL OF THE CITY OF MORRO BAY ON • FEBRUARY 22, 2010 ADDING TO AND AMENDING COUNCIL POLICIES AND PROCEDURES MANUAL REGARDING EXPENSE REIMBURSEMENT POLICY FOR ELECTED AND APPOINTED OFFICIALS, CITY LETTERHEAD AND THE COUNCIL COMPENSATION COMMITTEE RESOLUTION NO.28-10 ADOPTED BY THE CITY COUNCIL OF THE CITY OF MORRO BAY ON JUNE 14, 2010 AMENDING COUNCIL POLICIES AND PROCEDURES MANUAL REGARDING SECTION 2.2, RETIREMENT, MEDICAL, DENTAL, VISION, AND LIFE INSURANCE (Updated on 64?J103/143) RESOLUTION NO.46-10 • ADOPTED BY THE CITY COUNCIL OF THE CITY OF MORRO BAY ON SEPTEMBER 27, 2010 AMENDING THE COUNCIL POLICIES AND PROCEDURES MANUAL IN REGARD TO CALLING CLOSED SESSION MEETINGS; IN REGARD TO ALL REAL PROPERTY CONTRACTS GOING TO CLOSED SESSION PRIOR TO OPEN SESSION; IN REGARD TO COUNCIL LL4ISONS TO ADVISORY BOARDS; AND, IN REGARD TO CITY COUNCIL INPUT ON HIRING AND EVALUATION OF DEPARTMENT HEADS RESOLUTION NO. 11-11 ADOPTED BY THE CITY COUNCIL OF THE CITY OF MORRO BAY ON JANUARY 25, 2011 ADDING TO AND AMENDING THE COUNCIL POLICIES AND PROCEDURES MANUAL REGARDING REGULAR MEETING TIMES AND PLACING ITEMS ON THE AGENDA RESOLUTION 64-12 ADOPTED BY THE CITY COUNCIL OF THE CITY OF MORRO BAY ON DECEMBER 11, 2012 AMENDING THE COUNCIL POLICIES AND PROCEDURES MANUAL • REGARDING ELECTRONIC MAIL (EMAIL), THE PUBLIC RECORDS ACT AND THE BROWN ACT RESOLUTION 19-13 ADOPTED BY THE CITY COUNCIL OF THE CITY OF MORRO BAY ON MARCH 12, 2013 AMENDING THE COUNCIL POLICIES AND PROCEDURES MANUAL REGARDING STUDY SESSIONS, PLACING AN ITEM ON THE AGENDA, RECONSIDERATION, ORDER OF BUSINESS AND PUBLIC COMMENT 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 • (Updated on 64-2/103/143) • • • RESOLUTION NO. -14 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA AMENDING VARIOUS SECTIONS OF THE CITY COUNCIL POLICIES AND PROCEDURES MANUAL REGARDING MAYOR PRO TEMPORE (Updated on 642/IM43) CHAPTER ONE MEETING GUIDELINES & PROCEDURES 1.1 MEETING SCHEDULE 1.1.1 MEETINGS OF COUNCIL The Council shall provide by ordinance the time and place of holding meetings and the manner in which special meetings may be called. Public interest and convenience shall be primary considerations when decisions are made as to time, location and frequency. Except as otherwise provided by law, all meetings of the Council shall be open to the public. 1.1.2 REGULAR MEETINGS 1.1.2.1 Regular meetings shall be held the second and fourth Tuesday of each month beginning at 6:00 p.m. In the event that a regular meeting of the Council shall fall on a legal holiday, that regular meeting shall be held at the same place and time on the next succeeding working day. (MBMC 2.08.010). A regular meeting can only be cancelled after polling the majority of the Council in favor of the cancellation. (Reso. 23-06), (part) (Reso. I 1-11), (part) 1.1.2.2 Regular meetings shall be held in the Veterans Memorial Building, 209 Surf Street, in the City of Mono Bay. (MBMC 2.08.010) 1.1.2.3 Regular meetings shall be between the hours of 6:00 p.m. - 11:00 p.m. It shall be the policy of the City Council to complete meetings by 11:00 p.m. unless a majority of the Council elects to continue past the adjournment hour. If at the hour of 11:00 p.m. the City Council has not concluded its business, the Council will review the balance of the agenda and determine whether to extend the meeting beyond the hour of 11:00 p.m., continue any remaining items, or adjourn the meeting to another date and time. Is L (Updated on 642/1Q3/143) 6 1.1.3 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. (Reno 19-13), (part) 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. 1.1.4 SPECIAL MEETINGS 1.1.4.1 Special meetings may be called by the Mayor or three members of the City Council. (GC o 54956) Written notice of each special meeting must be given not less than twenty-four (24) hours before such meeting to each Member of the City Council • not joining the call. Special meetings may be cancelled only by consent of a majority of the members of the Council not less than 24 hours before the date of the special meeting. Notice of such cancellation shall be given to all Council Members and written notice shall be posted for the public not less than 24 hours before the meeting. (Reno. 23-06), (part) • 1.1.4.2 Written notice must be given to the City Council and to the media twenty-four hours prior to each meeting. (GC ❑ 54956) 1.1.4.3 A supplemental telephone call shall be made if necessary to notify each Council Member. 1.1.4.4 No business other than that announced shall be discussed. 1.1.4.5 Any special meeting held at a place other than the Veterans Memorial Building shall be open to the public. Such meetings shall be held within the city limits. Notice requirements of the Brown Act shall be complied with for any such meetings; regular minutes shall be taken by the City Clerk and shall be available for public inspection. (Updated on 64-NlGP143) 7 1.1.5 USE OF COUNCIL CHAMBERS • 1.1.5.1 The City Manager, or designee, is responsible for maintaining a calendar on the use of the Council Chamber and all requests for reservations shall be cleared through the administrative office. 1.1.5.2 When a question arises regarding permission for any group to use the facility, the City Manager shall have authority to make the final decision. The following rules are established as a guide: a. Use of the Council Chamber for regular meetings by City commissions, committees, and other advisory bodies shall take precedence over any other group or agency. To the extent possible, special meetings will be scheduled around other regularly scheduled non -city uses. In the event of a conflict, the City will give priority to rescheduling or relocating any use displaced by a city -related use. b. Council chambers is available for other use on a first - come -first -serve basis, after City, city -affiliated and other regular uses are scheduled. . C. With the approval of the City Manager, and within the provisions of existing video production agreements, other local governmental agencies may use the Council Chamber for the purpose of live or video cablecasting public hearings and/or public meetings during regular or non -business hours. 1.2 AGENDA 1.2.1 ESTABLISHING THE COUNCIL AGENDA The purpose of the agenda is to provide a framework within which Council meetings can be conducted and to effectively implement the approved Council Goals, Financial Plan and Budget, and also work programs, objectives, and business of the City as established by the present or earlier City Councils. Agenda items also include recommendations to the City Council from advisory bodies, land use and zoning actions or appeals, bid and purchasing procedures, and mandates from other levels of government. Staff shall work within the policy context established by the Council and will not arbitrarily place matters on the agenda that are outside the scope of existing work programs of the City, except as • approved by the Mayor or a majority of the Council, and to inform and advise the Council of matters necessary to the proper operation and well-being of the City. (Updated on 64-2/104/143) 8 a. Tentative Council Meeting Agenda - published before the close of business on the second Friday prior to the Council meeting. b. Full agenda packet published before the close of business Thursday prior to the Council meeting. The process for determining the format and order of the agenda is based primarily on the order of business adopted by the City Council (See Section 1.2.8). The process for establishing the order of specific business and public hearing items is a collaborative one determined largely by anticipated public attendance (those matters involving greater audience attendance are usually scheduled ahead of other items). The City Manager shall meet with department heads on the day of the City Council meeting to discuss issues and to review upcoming agenda items. In addition, the City Manager shall review the agenda materials with the Mayor, or in the Mayor's absence, the Viee-Mayor Pro Tempo . The final agenda is set subject to the approval of the Mayor (or V4ee-Mayor Pro Tern el, after consultation with the City Manager. 1.2.2 PLACING AN ITEM ON THE AGENDA (COUNCIL MEMBER) • Any Council Member may request an item be placed on a future agenda by submitting a request, orally or in writing, to consider the matter and by discussing the request during the "Declaration of Future Agenda Items" section of the regular agenda. If a majority of the Council approves, staff will prepare a staff report for the next available agenda if formal Council action is required. (Reno. 11-11), (part) If only one other Council Member supports hearing the item, an item will be listed on the next available agenda. The Council Member who made the request for the agenda item shall be responsible for providing the Council report and the Council will take no action on the substance of the matter at this review unless there is adequate public notice and information is provided for the Council to make an informed decision. If no other Council Member supports hearing the item, the item will not be placed on the agenda. (Reso. 54-03), (part), (Reno. I 1-11), (part) Pursuant to Policy 1.2, the Mayor is responsible for establishing the Agenda and may place an item on the agenda without Council support. In such a situation, the Mayor, or Council Member who the Mayor is accommodating, shall be responsible for providing a Mayor or Council Report. (Reno. 11-11) Additionally, an individual Council Member may place an urgency item on an . agenda with a minimum of 72 hours legal notice and a memorandum from the Council Member to the Council and staff setting forth the substantive issues of the item. For purposes of this paragraph, urgency shall arise in those limited (Updated on 64-N I 143) 9 situations where an item requires immediate action, and the need to take immediate action came to the attention of the Council Member subsequent to the distribution of the agenda. 1.2.3 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 shall comply 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 may request 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 Declaration of Future Agenda Items, any member of the Council may ask for consideration of the request and upon a majority of Council, a staff report will be prepared and approved by the City Manager or his/her designee. (Reso 19-13), (part) 1.2.4 PLACING AN ITEM ON THE AGENDA (THE PUBLIC) A member of the public may request an item be placed on a future agenda during the Public Comment period at the beginning of every Council meeting, or via other communication with Council Members. Any Member of the Council may • ask for consideration of the request pursuant to those procedures set out in 1.2.2. 1.2.5 Emergency items may be placed on the agenda only in accordance with state law. Generally, only those matters affecting public health or safety may be considered emergency in nature. A four -fifths vote of Council is necessary to add an emergency item. 1.2.6 RECONSIDERATION Reconsideration of issues previously acted upon is discouraged. However, in extraordinary 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 reconsidering the matter. If a majority of the council votes to reconsider an action, the matter will be placed on the next or future agenda. (Reso. 19-13), (part) (Updated on 6l?/103/143) 10 1.2.7 ORDER OF BUSINESS shall be as follows: 1.2.7.1 Establish Quorum and Call to Order 1.2.7.2 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 1.2.7.6 Public Presentations 1.2.7.7 Public Comment 1.2.7.8 Consent Agenda 1.2.7.9 Public Hearings (shall start no sooner than 7:00 p.m.) 1.2.7.10 Unfinished Business / Second Reading and Adoption of Ordinances 1.2.7.11 New Business 1.2.7.12 Council Declaration of Future Agenda Items 1.2.7.13 Adjournment (Reno. 76-08), (part), (Reno. 19-13), (part) 1.2.8 NOTIFICATION AND ADVERTISING The City will advertise all matters of significant neighborhood or community • public interest that appear on a City Council or Planning Commission agenda where advertising is required by law. Said advertisements shall include location maps, project descriptions and posting of property, if required, written in plain English in order to fully inform all interested individuals. All advertising shall be accomplished in an economical manner. All affidavits of publication shall be reviewed by the City Clerk and will be available to interested members of the public. 1.3 MEETING PROCEDURES 1.3.1 1.3.1.1 The Mayor is the Presiding Officer and acts as Chair at Council meetings. 1.3.1.2 In the absence or incapacity of the Mayor, the Viee-Nlayee Mayor Pro Tempore will serve as Presiding Officer. 1.3.1.3 In the absence of both the Mayor and-Viee-Mayer Mayor Pro Tempore, a majority of the quorum shall select a temporary Mayor Pro Tempore pr-e te...shall 1.e sel.,eted ff..._ the ,...,._ m • to act as Chair for the meeting. (Updated on 61-XI-W143) 11 1.3.1.4 Seating arrangement of the Council: The Mayor, with the approval of individual Council Members, shall establish seating arrangements for regular Council meetings. 1.3.1.5 Signing of City Documents: The Mayor, unless unavailable, shall sign all ordinances, resolutions, contracts and other documents which have been adopted by the City Council and require an official signature, except where the City Manager has been authorized by Council to sign documents. In the event the Mayor is unavailable, the V4ee Mayor's- Mayor Pro Tempore signature may be used. 1.3.2 QUORUM A majority of the Council Members shall constitute a quorum for the transaction of business. 1.3.3 DISCUSSION RULES 1.3.3.1 Obtaining the floor: Is 1.3.3.1.1 A Member of the City Council or staff shall first address the Mayor and gain recognition. 1.3.3.1.2 Comments and questions should be limited to the issue before Council. 1.3.3.1.3 Cross -exchange between Council Members and public should be avoided. 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. (Reno. 19-13), (part) 1.3.3.3 Interruptions: 1.3.3.3.1 Once recognized, a Council Member shall not be interrupted while speaking except to make a point • of order or personal privilege. (Updated on6a-2/103/143) 12 1.3.3.3.2 If a Council Member is called to order while • speaking, the individual shall cease speaking until the question of order is determined. 1.3.3.3.3 Upon being recognized by the Mayor, members of staff shall hold the floor until completion of their remarks or until recognition is withdrawn by the Mayor. 1.3.3.4 Limitation on Discussion: No Council Member shall speak more than once on a particular subject until every other Council Member has had the opportunity to speak. Council Members are encouraged to discuss items during the decision -making process. 1.3.3.5 Tabling Procedure: The purpose of the Motion to Lay on the Table also known as a Motion to Table is to enable the City Council, by majority 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. (Reno. 19-13), (part) 1.3.3.6 Right of Protest: A Council Member is never required to state reasons for dissent. 1.3.3.7 Rules of Procedure: The Council shall determine its own rules of procedure. 1.3.3.8 Council Minutes: If a Council Member wishes a stated opinion to be entered in the minutes, he/she should precede the statement with "for the record," or request the City Clerk to enter it into the record following the statement. • (Updated on 64_?J103/143) 13 1.3.4 PARLIAMENTARY PROCEDURE 0 Those rules in effect according to the City Council policy (State law and Robert's Rules). The following summarizes the most frequently used actions. 1.3.5 PROTOCOL 1.3.5.1 Council Members and staff shall: 1.3.5.1.1 Work earnestly to preserve appropriate order and decorum during all meetings. 1.3.5.1.2 Side conversations, disruptions, interruptions or delaying efforts are discouraged. 1.3.5.2 Persons demonstrating rude, boisterous, or profane behavior will be called to order by the Mayor. If such conduct continues, the Mayor may call a recess, request the removal of such person(s) from the Council Chamber, adjourn the meeting, or take such other appropriate action as permitted by the Brown Act. 1.3.5.3 Only the City Council, staff, Designated Representatives, and . those authorized by the Mayor shall be permitted to sit at the ' Council or staff tables. 1.3.5.4 Enforcement of order: 1.3.5.4.1 The Police Chief or his/her designee shall act as the Sergeant -at -Arms. 1.3.5.4.2 Any Council Member may request the Mayor to enforce the rules of protocol. Upon motion and majority vote, the Mayor shall be required to do so. 1.3.6 VOTING PROCEDURES 1.3.6.1 When present, all Council Members shall vote. Failure of a seated Council Member to vote will be construed as an affirmative vote. 1.3.6.2 No ordinance, resolution or motion shall be passed or become effective without receiving the affirmative vote of at least three Members of the Council • (Updated on 6+2/103/143) 14 . 1.3.6.3 A conflict of interest shall be declared whenever appropriate and in compliance with State law and the Council Member will step down, disclose the nature of the conflict of interest, and shall not make, participate in making, or influence the decision. 1.3.6.4 A vote may be changed by a Council Member only immediately after the vote announcement by the City Clerk and prior to the introduction of the next agenda item. 1.3.6.5 The City Clerk shall restate the motion prior to the vote or request the Mayor or Presiding Officer to restate the motion, if required for Council or public clarification. 1.3.6.6 Voice voting is the preferred method for recording Council votes. 1.3.6.7 A roll call vote may be taken at the discretion of the Mayor or Mayor Pro Tempore. 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. (Reno. 19-13), (part) 1.3.6.8 General consent vote may be taken at the discretion of the Chair, if there are no negative votes or objections by Council Members. 1.3.6.9 Upon the request of any Member, the ayes and noes shall be taken and recorded on any vote. 1.3.6.10 The ayes and noes shall be taken upon the passage of all ordinances and resolutions and entered upon the journal of the proceedings of the Council. 1.3.6.11 Following the vote the Mayor or Presiding Officer shall announce whether the questions have been carried or defeated. 1.3.6.12 Tie votes: Should a tie vote occur, the Council is required to continue the item by majority vote or make motions until an action receives three affirmative votes. • 1.3.6.13 The Mayor may publicly explain the effect of the vote for the audience or may direct a member of the staff to do so. (Updated on 64-21103/143) 15 1.3.7 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 day prior to the meeting. This provides the Council with a greater 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 following are guidelines for providing public comments: (Reso. 19-13), (part) 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 not 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 Item following the staff report and any questions from Council to Staff. (Reso. 19-13), (part) 1.3.7.2 Individuals desiring to speak shall: 1.3.7.2.1 Address the Council from the podium after giving • name and city of residence. Speakers shall direct their comments to the Council, not the audience. 1.3.7.2.2 Limit comments to three (3) minutes or to the interval specified by the Mayor or Mayor Pro Tempore. The Mayor or Mayor Pro Tempore 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. (Reso. 19-13) 1.3.7.2.3 Each person addressing the City Council shall do so in an orderly manner and the Council respectfully requests that speakers refrain from making repetitious, slanderous or irrelevant remarks, or engaging in any other disorderly conduct which disrupts, disturbs, or otherwise impedes the orderly conduct of the Council meeting. Any person who so disrupts the meeting may, at the discretion of the Mayor or a majority of the City Council, be subject • to ejection from that meeting. (Reso. 54-03), (part) (Updated on 642/103/143) 16 . 1.3.7.2.4 Persons addressing the Council shall address the Council as a whole and shall not engage in a dialogue with individual Council Members, City staff or members of the audience. No questions shall be asked of a Council Member or a member of City staff without first obtaining permission of the Mayor. The Mayor shall determine whether, or in what manner, an answer will be provided. Any person violating this rule while addressing the Council shall be called to order by the Mayor. 1.3.7.3 Pursuant to the Brown Act, action may not be taken on issues not listed on the agenda. Staff may be asked to follow-up on such items. 1.3.7.4 Applicants or Applicant Representatives or Appellants desiring to speak shall: 1.3.7.4.1 Shall be permitted to speak first during the public comment portion of the public hearing for not more than ten (10) minutes. • 1.3.7.4.2 Address the Council from the podium after giving their name and address, and/or the name and address of the applicant/appellant they are representing. 1.3.7.5 Council Members actions 1.3.7.5.1 Council Members may question the person addressing the Council at the conclusion of the person's continents or upon expiration of the person's time to speak. Such questions shall be directed to the person through the Mayor. 1.3.7.5.2 Council Members shall not engage the person addressing the Council in a dialogue with the City Council or City staff but shall confine communication to a question and answer format conducted through the Mayor. 1.3.7.5.3 If a member of the audience has addressed the Council on matters which are not on the agenda, • Council Members shall refrain from extended discussion of the matter. If a Council Member so (Updated on 6+2/103/143) 17 wishes, the Council Member may direct the City Manager to place the matter on the next agenda. 1.3.7.6 After the public hearing is closed, no member of the public shall be permitted to address the Council or the staff from the audience, except at the discretion of the Mayor or the majority of the Council. 1.3.7.7 Upon violation of the rules of order and decorum established in Section 1.3.2 — 1.3.7 of this Resolution, the procedure to enforce the rule shall be as follows: 1.3.7.7.1 Warning. The Mayor shall request that a person who is violating the rules of decorum cease such conduct. If, after receiving a warning from the Mayor, the person persists in disturbing the meeting, the Mayor shall order the person to leave the City Council meeting. If the person does not leave the meeting, the Mayor may order any law enforcement officer who is on duty at the City Council meeting as sergeant -at -arms to remove the person from the City Council chambers. 1.3.7.7.2 Removal. Any law enforcement officer who is • serving as sergeant -at -arms at the City Council meeting shall carry out the orders and instructions given by the Mayor for the purpose of maintaining order and decorum. Upon instruction of the Mayor, it shall be the duty of the sergeant -at -arms to remove from the City Council meeting any person who is disturbing the proceedings of the City Council. 1.3.7.7.3 Resisting Removal. Any person who resists removal by the sergeant -at -arms may be charged with a violation of the rules of order and decorum as well as any other applicable ordinance or law. 1.3.7.7.4 Motion to Enforce. If the presiding officer of the City Council fails to enforce the rules of order and decortun set forth in Section 1.3.2 — 1.3.7, any Member of the City Council may move to require the Mayor to do so, and an affirmative vote of a , majority of the City Council shall require the Mayor • to do so, and an affirmative vote of a majority of the Council may appeal to the entire Council the ruling (Updated on 64-2/103/143) 18 . of the Mayor that a person be removed from the meeting, in which event the decision of the Council majority shall govern and conclusively determine such question. If the Mayor fails to carry out the will of the majority of the City Council, the majority may designate another Member of the City Council to act as Mayor for the limited purpose of enforcing the rules of order and decorum established in Section 1.3.2 - 1.3.7. 1.3.7.7.5 Clearing the Room. If a meeting of the City Council is disturbed or disrupted in such a manner as to make infeasible or improbable the restoration of order, the Mayor or a majority of the City Council may exercise the authority granted in the California Government Code section 54957.9 by ordering the meeting room cleared and continuing in session in the manner authorized by Section 54957.9 of the Government Code. 13.8 CONSENT ITEMS • Consent items are the first items on the agenda. Only items that are routine, relate to implementation of approved budget items or to City operations, or are second readings of ordinances, or are items to be later set for public hearing are to be placed on the Consent Agenda. Items of significant neighborhood or community public interest should be heard as a Public Hearing or Business item, and not placed on the Consent Agenda. 1.3.8.1 Minor Questions. A Council Member may ask questions on any item without it being pulled from the Consent Agenda. When a Council Member has a minor question for clarification concerning a consent item that will not involve extended discussion, the item may be pulled for clarification at the beginning of the meeting and the questions will be addressed along with the rest of the Consent Agenda. There should be no objections at this time. Council Members are encouraged to seek clarifications prior to the meeting (if at all possible). 1.3.8.2 No Vote. When a Council Member wishes to pull an item simply to register a dissenting vote, a request should be made that the item be pulled for separate vote without discussion. Such items will also be handled at the beginning of the meeting • along with the rest of the Consent Agenda. (Updated on 6 W103/W) 19 1.3.8.3 Any item may be pulled by a Council Member for discussion. • A member of the public may request the Council to pull an item for discussion. 1.3.8.4 Pulled items shall be heard at the close of the Consent Agenda unless a majority of the Council chooses another time. 13.9 NOTICED PUBLIC HEARINGS During the pendency of any Public Hearing that is a quasi-judicial proceeding, no Council member or Planning Commission member shall engage in an ex parte communication with any "Interested Party" who intends to influence the decision of the council or board member in a proceeding unless the council or board member discloses the ex parte communication in the council or board's record. "Interested Party" means any individual with an interest in the quasi-judicial proceeding that is greater than the general interest of the public as a whole. The term includes, but is not limited to, parties involved in the proceeding, parties that may be significantly affected by the decision, and nonprofit or public interest organizations and associations with a special interest in the matter regulated. A member of the public at large who expresses a casual or general opinion about a pending proceeding would not necessarily be an "Interested Party." (Reno. 24-07) Matters which are required to be heard in a noticed Public Hearing shall be conducted in the following manner: 1.3.9.1 Time for Consideration. Matters noticed to be heard by the City Council shall commence no earlier than the time specified in the notice of hearing, or as soon thereafter as is reasonably possible, and shall continue until the same has been completed or until other disposition of the matter has been made. 1.3.9.2 Continuance of Hearing. Any hearing being held or noticed or ordered to be held by the City Council may, by order or notice of continuance, be continued or re -continued to any subsequent meeting. 1.3.9.3 Conduct of Hearings. When a matter for Public Hearing comes before the City Council, the presiding officer shall open the public hearing and; 1.3.9.3.1 Call for a report on noticing from the City Clerk. 1.3.9.3.2 Call for a report on written communications received by the City pertaining to the item being • heard. (Updated on 64-2/103/143) 20 • 1.3.9.3.3 Request that staff present the staff report and any other relevant evidence. Presentation of the staff report prior to the formal opening of the Public Hearing shall not prevent its consideration as evidence. Any such evidence shall be made a part of the record of the Public Hearing. 1.3.9.3.4 The Mayor shall then recognize the proponents or appellants in the cause, who shall be permitted 5 minutes to present evidence related to the matter under consideration. 1.3.9.3.5 The Mayor shall then recognize members of the public. No person may speak without first being recognized by the Mayor. Members of the City Council who wish to ask questions of the speakers or each other during the Public Hearing may do so. Members should be mindful that the purpose of the Public Hearing is to obtain testimony, and not to debate the merits of the item under consideration. Members should avoid debate and expressions of personal opinion until after the close of the public • testimony portion of the Public Hearing. The Presiding Officer shall conduct the hearing in such a manner as to afford due process to all affected persons. For Public Hearings, when 10 or more members of the public desire to speak, the Mayor or Mayor Pro Tempore may require speaker slips be completed and delivered to the Clerk before the item is considered. Comments from the public shall be limited to three (3) minutes per speaker for Public Hearings, unless the City Council affirmatively decides otherwise. For Public Hearings that have the potential to be appealed to the California Coastal Commission, members of the public who desire to receive notice of any further proceedings shall write their name and address on the interested parties list at the back of the room. (Reno. 37-04) (Reno. 50-07), (part) 1.3.9.3.6 The Mayor shall then close the public testimony portion of the Public Hearing. Council Members may still, however, ask questions of staff or members of the public. Upon conclusion of is Council deliberations and immediately prior to a motion, the Mayor shall formally close the public (Updated on 612/l 113/143) 21 hearing. Upon formal closing of the public hearing, • no additional public testimony shall be solicited or received without reopening the hearing. 1.3.9.4 Evidence. All persons interested in the matter being heard by the City Council shall be entitled to submit written evidence or remarks, as well as other graphic evidence. All such evidence presented shall be retained by the City Clerk as part of the Clerk's record. Prior to declaring the public hearing open, the Mayor may establish a time limit for the entire public hearing, or establish time limits for the presentation of each individual speaker. 1.3.10 CLOSED SESSION MEETINGS (closed to the public) 1.3.10.1 Closed Session Meetings may be called by the majority of the Council and are regulated pursuant to the Brown Act. The most common purpose of a closed session is to avoid revealing confidential information that may, in specified circumstances, prejudice the legal or negotiating position of the City or compromise the privacy interests of employees. Closed sessions should be conducted keeping those narrow purposes in mind. (Reso. 46-10), (part) • 1.3.10.2 No Member of the Council, employee of the City, or anyone else present shall disclose to any person the content or substance of any discussion which takes place in a closed session unless authorized by a four -fifths vote of the Council. 1.4 MEETING COVERAGE The purpose of cablecasting meetings of the Morro Bay City Council is to enhance the awareness and education of the general public regarding the actions and deliberations of the City Council. 1.4.1 Coverage of City Council meetings shall be gavel -to -gavel; whether presented to the public live or taped, Council coverage is not to be edited or subjected to editorial comment. 1.4.2 All City Council meetings shall be cablecast or taped for broadcast, except for meetings or portions of meetings which are closed to the public, or when the majority of the Council directs otherwise. 1.4.3 Cameras used for the gavel -to -gavel coverage shall be operated only by City employees, firms, or persons authorized by the City. (Updated on 642/103/143) 22 n LA • 1.4.4 Cameras shall be operated so that they are primarily focused on the officially recognized speaker, and on any visually displayed information they may be showing. 1.4.5 "Reaction" shots will not be permitted. 1.4.6 The City Clerk's minutes shall remain the official record of Council proceedings. (Updated on 64-2/1031143) 23 CHAPTER TWO • COUNCIL COMPENSATION Council compensation and benefits are established every other year by Council action. 2.1 SALARIES FOR MAYOR AND COUNCIL MEMBERS Pursuant to Morro Bay Municipal Code 2.20.010, compensation for services rendered in an official capacity shall be provided as follows: Members of the City Council shall receive $300 per month. Pursuant to Morro Bay Municipal Code 2.20.015, the Mayor will receive an additional $200 per month beyond the compensation paid to Council Members. 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. (Reso. 28-10), (part) (Reso. 53-13) 2.3 PROFESSIONAL DEVELOPMENT • The Mayor and each Council Member shall be reimbursed for normal and customary business expenses as follows: 2.3.1 BUSINESS TRAVEL EXPENSE AND CONFERENCE REGISTRATION The Mayor and each Council Member shall be reimbursed for normal and incidental expenses and for costs of professional development and educational conferences designed to improve understanding of and proficiency in municipal affairs. Such reimbursement shall be for out -of -county expenses only and shall be reimbursed in accordance with accepted City Travel Guidelines. 2.3.1.1. Authorized Expenses. City funds, equipment, supplies (including letter head), titles, and staff time must only be used for authorized City business. Expenses incurred in connection with the following types of activities generally constitute authorized expenses, as long as the other requirements of this section are met: • Communicating with representatives of regional, state and • national government on City -adopted positions. (Updated on 64-2/103/143) 24 . • Attending educational seminars designed to improve official's skill and information levels. • Participating in regional, state and national organizations whose activities affect the City's interests. • Recognizing service to the City (i.e. thanking a longtime employee with a retirement gift or celebration of nominal value and cost). • Meetings such as those listed above for which a meeting stipend is expressly authorized under this section. All other expenditures require prior approval by the City Council, including international and out of state travel. (Reso. 11-10) 2.3.1.2. Expenses Not Eligible for Reimbursement. • The personal portion of any trip. • Political or charitable contributions or events. • Family expenses, including partner's expenses, when accompanying official on City -related business. • Entertainment expenses, including theater, movies, sporting • events (including gym, massage and/or golf related expenses) or other cultural events. • Alcohol/personal bar expenses. • Non -mileage personal automobile expenses, including repairs, traffic citations, insurance or gasoline. • Personal losses incurred while on City business. (Reso. 1140) • 2.4 CITY BUSINESS AND MILEAGE REIMBURSEMENT The Mayor and each Council Member shall be reimbursed as follows: 2.4.1 CITY BUSINESS For costs incurred in connection with official City business, Mayor and Council Members shall be reimbursed for in -county expenses including meals, tickets, periodicals, dues, subscriptions, and similar miscellaneous expenses. 2.4.2 MILEAGE For official travel within the County of San Luis Obispo, reimbursement shall be made upon submittal of an official mileage expense form. (Updated on 6 -2/I 3/143) 25 2.4.3 TRANSPORTATION • If trip arrangements are made, as a convenience, for spouse or family members, reimbursement to the City for any advanced expenses should be received by the City prior to the trip. When attending conferences or meetings that are of such distances that is more economical to take commercial transportation, if an official proposes to drive his/her car in those cases, commercial air fare will be paid and not automobile mileage. Government and group rates must be used when available. (Reso. 11-10) 2.4.3.1. Airfares that are reasonable and economical shall be eligible for purposes of reimbursement. (Reso. 11-10) 2.4.3.2. Automobile mileage is reimbursed at IRS rates in effect at the time of travel. These rates are designed to compensate the driver for gasoline, insurance, maintenance, and other expenses associated with operating the vehicle. This amount does not include bridge and road tolls which are also reimbursable. (Reso. II-10) 2.4.3.3. Car Rental rates that are reasonable and economical shall be eligible for purposes of reimbursement. (Reso. 11-10) 2.4.3.4 Taxi and shuttle fares may be reimbursed, including a 15% • gratuity per fare, when the cost of such fares is equal or less than the cost of car rentals, gasoline and parking combined, or when such transportation is necessary for time -efficiency. (Reso. 11-10) 2.4.4 LODGING Lodging expenses will be reimbursed or paid for when travel on official City business reasonably requires an overnight stay. If such lodging is in connection with a conference, lodging expenses must not exceed the group rate published by the conference sponsor for the meeting in question if such rates are available at the time of booking. Travelers must request government rates, when available. If the group rate is not available, reimbursement at the IRS rate in effect at the time of travel shall apply (IRS Publication 463). (Reso. I I A 0) 2.4.5 MEALS A local expense reimbursement policy identifying a "per diem" of reasonable rates for meals is not adopted. Receipts for expenses for meals shall be required. Actual expenses shall be reimbursed subject to the maximum per diem for the • mean as set by the IRS rate in effect at the time of travel. (Cal. Gov't. Code (Updated on 642/103/143) 26 53232.2) and Publication 1542 at www.irs.gov or www.pglicyworks.gov/ per • diem.) The City will not pay for alcohoVpersonal bar expenses. (Reno. 11-10) 2.4.6 MISCELLANEOUS EXPENSES Officials will be reimbursed for actual telephone, fax, and parking expenses incurred on City business. Telephone bill should identify which calls were made on City business. (Reno. 11-10) 2.4.7 CASH ADVANCE POLICY From time to time, it may be necessary for an official to request a cash advance to cover anticipated expenses while traveling or doing business on the City's behalf. Such request for an advance should be submitted to the City Manager ten working days prior to the need for the advance with the following information: 1. The purpose of the expenditures 2. The benefits of such expenditures to the residents of the City. 3. The anticipated amount of the expenditures(s) (for example, hotel rates, meal costs, and transportation expenses). 4. The dates of the expenditure. • Any unused advance must be returned to the City within five working days of the official's return, along with an expense report and receipts documenting how the advance was used. In the event the City Manager is uncertain as to whether a request complies with this policy, such individual must seek resolution from the City Council. (Reno. 11-10) 2.4.8 CREDIT CARD USE POLICY The City issues credit cards to individual office holders for selected City expenses. City office holders may use the City's credit card for such purposes as airline tickets, hotel reservations and/or meals by following the said procedures for cash advances. Receipts documenting expenses incurred on the City credit card and compliance with this section must be submitted within thirty working days of use. Credit cards may not be used for personal expenses, even if the official subsequently reimburses the City. (Reso. 11-10) 2.4.9 EXPENSE REPORT CONTENT AND SUBMISSION DEADLINES All cash advance expenditures, credit card expenses and expense reimbursement requests must be submitted on an expense report form provided by the City. This form shall include the following advisory: • "All expenses reported on this form must comply with the City's policies relating to expenses and use of public resources. The (Updated on 642/103/143) 27 information submitted on this form is a public record. Penalties for • misusing public resources and violating the City's policies include loss of reimbursement privileges, restitution, civil and criminal penalties as well as additional income tax liability. " Expense reports must document that the expense in question met the requirements of this Policy. Officials must submit their expense reports within thirty calendar days of an expense being incurred, accompanied by receipts documenting each expense. Restaurant receipts, in addition to any credit card receipts, are also part of the necessary documentation. Inability to provide such documentation within 30 calendar days of travel may result in the expense being home by the official. In the event the official does not attend the trip and non-refundable expenses have been incurred for registration, lodging and/or travel, the non -attending official shall submit a written explanation of the reasons for non-attendance to the City Manager. The City Manager shall determine if the public funds advanced must be reimbursed to the City. Any decision of the City Manager may be appealed to the City Council. (Reno. 11-10) 2.4.10 REPORTS TO CITY COUNCIL At the next regular City Council meeting, each official shall briefly report on the • meetings attended at City expense. If multiple officials attended, a joint report may be made. (Reso. I IA0) 2A.11 COMPLIANCE WITH LAWS: VIOLATION City officials should keep in mind that some expenditures may be subject to reporting under the Political Reform Act and other laws. All City expenditures are public records subject to disclosure under the Public Reports Act and other applicable laws. Use of public resources or falsifying expense reports is a violation of this Policy and may result in any or all of the following: 1) loss of reimbursement privileges, 2) a demand for restitution to the City, 3) the City's reporting the expenses as income to the elected official to state and federal tax authorities, 4) civil penalties of up to $1,000 per day and three times the value of the resources used, and 5) prosecution for misuse of public resources. (Reso. 1I- 10) 2.5 GENERAL PROCEDURES AND LIMITATIONS Appropriate budgetary practices and accounting controls shall be established to ensure that expenditures and reimbursements are in compliance with approved • budget allocations. The Mayor and each Council Member is expected to plan business activities so as to stay within budget. When exceptional circumstances (Updated on 6+2/]03/143) 28 • require that additional amounts be allocated to accounts, formal Council action shall be required. 2.5.1 ACCOUNTING An account shall be established in the name of each Council Member with all expenditures charged to the individual Council Member or Mayor. Receipts shall be submitted within the fiscal year. The Council budget shall be available for public review in the City Clerk's Office and the Mayor and Council Members shall receive periodic statements. 2.5.2 REIMBURSEMENT LIMITATION The City's adopted Travel Guidelines shall govern all expenditures for non -local professional development and conferences. These guidelines include all non -local official meals, tuition or fees, transportation to meeting sites, materials and telephone usage. 2.5.3 SPECIAL EXPENSES For occasions when the Mayor and/or a Council Member is designated by the City Council to represent the City at special meetings, reimbursement shall be made • from the appropriate Travel Expense Account. 2.5.4 HONORARIUM If the Mayor or a Council Member receives an honorarium as a result of his/her participation in a meeting or conference, the amount of the honorarium shall be deducted from the amount normally provided by the City for that meeting or conference if the City paid for the Council Member's attendance at such meeting or conference. 2.5.5 Any other travel -related issue not specifically governed in this resolution shall be adjudicated in accordance with the City of Morro Bay Travel Expense Reimbursement Policy. 2.6 COUNCIL COMPENSATION COMMITTEE A five -member review committee may be appointed by January 31, in even -numbered years and shall bring its proposed recommendations in resolution form to the City Council within 90 days, or no later than May 1st. (Reso. 11-10), (Updated on 64-2J104/143) 29 2.6.1 MEMBERSHIP . The committee membership shall have as broad a representation as possible, including but not limited to, two former elected officials who are not currently serving on the Council, and one citizen -at -large. 2.6.2 The committee shall review the full Council compensation package including salary, benefits, expense reimbursement, professional development allowances and any other compensation provided the City Council. Review should include, but shall not be limited to: 1) compensation of Council and Mayors of cities of similar population and/or budget size; 2) compensation practices of both Charter and General Law cities; 3) Government Code provisions for General Law cities; and 4) Council and Mayor responsibilities in Morro Bay at the time of the committee's review; and, 5) any structural changes that may have occurred in municipal government either as a result of State legislation or by actions of the local electorate that may have added to or deducted from the duties and responsibilities of the Council Members and/or Mayor. • r� U (Updated on64-2/103/143) 30 • CHAPTER THREE COUNCIL POWERS & APPOINTMENTS 3.1 MAYOR - POWER AND DUTIES 3.1.1 The Mayor shall preside at all meetings of the City Council and perform such other duties consistent with the office as may be imposed by the Council or by vote of the people. The Mayor shall be entitled to, and must vote when present, but shall possess no veto power. 3.1.2 The Mayor shall be recognized as the official head of the City for all ceremonial purposes. 3.1.3 The Mayor may order flags flown on City property to be lowered to half- staff in mourning for any member of the community designated to have made significant contributions to the City of Morro Bay, in accordance with recognized customs or practices not inconsistent with State and Federal law. 3.1.4 The Mayor shall exercise such other powers and perform such other duties as may be prescribed by law or ordinance or by resolution of the Council, • except as limited by law. 3.2 APPOINTMENT OF VIGE-MAYOR PRO TEMPORE The appointment of the Viee-Mayor Pro Tempore shall be for a one-year term and shall be made at the first meeting in December. For appointment as Viee Mayor Pro Tempore, a Council Member must be on the Council at least one year. Of those who have been on the Council for at least one year, the Council Member who has not yet held the position shall be appointed Viee Mayor Pro Tempore. If there are two Council Members who have not yet held the position, the Council Member receiving the highest number of votes in the most recent election shall be appointed Viee-Mayor Pro Tempore. If all have held the position, the Council Member who has held it the least number of times shall be appointed Viee Mayor. If all Council Members have held it for the same number of years, the Council Member for whom it has been the longest period of time since holding the position shall be appointed Viee Mayor Pro TemWre. (Reso. 76-08), (part) 33 FILLING COUNCIL VACANCIES 33.1 SPECIAL ELECTION • Measure "R" codified as Ordinance 527 requires the City Council to immediately call a special election to fill any vacant seat on the Council, including the Mayor's seat. The special election shall be held on the next (Updated on 6+-2/103/143) 31 established election date, as specified in California Elections Code, which • is not less than 114 days from the call of the special election. The City Council may appoint an elector who is a registered voter in the City of Mono Bay to fill such vacancy prior to the special election. The appointee shall hold office only until the date of said special election. (Reso. 76-08) 3.3.2 LIMITATION OF COUNCILMEMBER WHO RUNS FOR MAYOR BEFORE COMPLETING REGULAR TERM A sitting Council Member is disqualified from nomination for election to the office of Mayor in the next election if the remainder of their Council term after the next election cannot be filled by a vote of the electors on or prior to that election date. (Reso. 76-08) 3.4 GENERAL POWERS OF THE COUNCIL Subject to the provisions of law and the delegation of power to any person, officer, Board, or Commission, the Council shall have the power in the name of the City, to do and perform all acts and things appropriate to a municipal corporation and the general welfare of its inhabitants and that are not specifically forbidden by the Constitution and laws of the State of California. 3.5 ADMINISTERING OATHS: SUBPOENAS • Each Member of the Council shall have the power to administer oaths and affirmations in any investigation or proceeding pending before the Council. The Council shall have the power and authority to compel the attendance of witnesses, to examine them under oath and compel the production of evidence before it. Subpoenas may be issued in the name of the City and be attested by the City Clerk. Disobedience of such subpoena or the refusal to testify (upon other than constitutional grounds), shall be deemed contempt and shall be punishable as provided by the general laws of the State. 3.6 LIMITATIONS No Member of the Council shall be appointed to or serve as a voting Member of any City Board, Committee, or Authority, whether composed of citizen volun- teers, City employees, or a combination of both. This is not to be construed as prohibiting Members of the Council from serving on Committees or Subcom- mittees of the Council itself, or of agencies representing other local, state or federal government. 3.7 METHOD OF ACTION BY COUNCIL All action by the Council shall be taken only by means of ordinance, resolution, or • oral motion duly made and passed. (Updated on 6421103/143) 32 Ordinances shall become a part of the Municipal Code and so remain until • amended or voided. All municipal laws relating to taxation or to possible criminal action against an offender shall be in the fort of ordinances. Resolutions shall be serially numbered and filed sequentially in the office of the City Clerk. Oral motions shall be recorded only in the minutes of any regular or special meeting of the Council. 3.8 ORDINANCES The consideration and adoption of ordinances shall be in accordance with relevant state law. Ordinances not legally required to have a public hearing shall be set for a public hearing if the subject matter is controversial or of a special nature. In addition, a majority of the City Council may direct that the consideration of an ordinance will be set for public hearing. No ordinance, resolution or motion shall be passed or become effective without receiving the affirmative vote of at least three Members of the Council. 3.9 ACCEPTANCE OF GRANTS OR DEEDS • The Mayor and Viee-Mayor Pro Tempoof the City of Morro Bay are hereby authorized to accept and consent to the recording of any deed or grant conveying any interest in or easement upon real property to the City of Morro Bay. 3.10 LEGISLATIVE ACTION PROGRAM The City has a legislative program to strengthen local government, promote City goals, and defend the City against legislative actions by state and federal governments that would weaken local government or take away traditional revenue sources. In order to respond promptly and proactively to fast -paced legislative changes, City staff is authorized to take positions on legislation provided the positions are consistent with the Legislative Actions of the City Council, and/or resolutions or recommendations of the League of California Cities. 3.11 ANIICUS CURIAE PARTICIPATION The City is frequently requested to join as amicus curiae (friend of court) in cases of statewide significance to cities. Because of the often short time limits for filing amicus curiae briefs, the City Attorney is authorized to participate in such briefs, at no cost to the City, if the Legal Advisory Committee of the League of isCalifornia Cities has urged participation. (Updated on 6t-N103/143) 33 CHAPTER FOUR • THE BROWN ACT 4.1 APPLICABILITY AND PENALTIES The entire City organization conducts its business in compliance with the Ralph M. Brown Act, State Government Code Sections 54950 et sec. The intent of the Act is to ensure that deliberations and actions of local public agencies are conducted in open and public meetings. The law provides for misdemeanor penalties for Members of a board who violate the Act (GC a 54959). In addition, violations are subject to civil action (GC a 54960). A current copy of the Act will be provided to all Council Members assuming office, but the provisions that most directly affect the Council are summarized in this Chapter. 4.2 MAJOR PROVISIONS 4.2.1 APPLICABILITY The Act applies to Council, City staff and all bodies that advise Council. (GC a 54952.2) 4.2.2 MEETINGS • All meetings shall be open and public. 4.2.2.1 A meeting takes place whenever a quorum (three or more) Members are present and information about the business of the board is received; discussions qualify for a meeting. 4.2.2.2 Serial meetings take place when any Member of Council contacts more than one other Council Member for the purpose of deliberating or acting upon an item pending before the City Council (does not apply to the public or media). 4.2.2.3 Correspondence that merely takes a position on an issue is acceptable. (GC a 54953) 4.2.3 AGENDAS Agendas for regular meetings must be posted 72 hours in advance of the meeting and must meet various requirements. (GC a 54954.2) • (Updated on 642/103/143) 34 . 4.2.4 ACTIONS No action shall be taken on any item not appearing on the posted agenda. Exceptions: 4.2.4.1 An emergency situation exists, (determined by a majority of the Council.) 4.2.4.2 That the need to take action arose subsequent to the agenda being posted (determined by 4/5 of the Council; or if less than 4/5 are present, by unanimous vote.) 4.2.4.3 The item was continued to another meeting that was scheduled and posted within five days of the original agenda. (GC ❑ 54954.2) 4.25 PUBLIC INPUT The public has an opportunity to address the Council on any item of interest to the public that is within the jurisdiction of the Council. The City has the right to establish time limits on speakers and the total time allocated for a particular issue. (GC ❑ 54954.3) • 4.2.6 PUBLIC DISRUPTIONS A portion or all of the public may be removed if willful disruption makes conducting the meeting "unfeasible"; the press may remain unless they participate in the disruption. (GC ❑ 54957.9) 4.2.7 All writings distributed for discussion or consideration at a public meeting are public records. (GC ❑ 54957.5) The public is encouraged to submit written material regarding agendized items to the City Clerk a week prior to the Council meeting so that it may be included in the public packet. 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. 4.2.8 CLOSED SESSIONS MAY BE HELD TO DISCUSS: 4.2.8.1 Real Property. The purchase, sale, exchange or lease of real • property with the City's negotiator; the real property and the person(s) with whom the City may negotiate must be announced in open session prior to the closed session. (GC ❑ (Updated on 642/103/143) 35 4.3 4.4 4.5 54956.8). All Real Property transactions shall be held in closed • session prior to final decision in open session and Council shall be provided with a copy of the draft real property agreement. (Reso. 46-10), (part) 4.2.8.2 Litigation pending or a significant exposure to litigation, or the decision to initiate litigation; the litigation or title must be identified in open session prior to the closed session unless the Council states that to do so would jeopardize its ability to conclude existing settlement negotiation or effectuate service of process. (GC n 54956.9) 4.2.8.3 Compensation (salaries and benefits) of employees; to review its position and instruct designated representatives. (GC n 54957.6) 4.2.8.4 Personnel. The appointment, employment, evaluation of performance, or dismissal, of a public employee, or to hear complaint against the employee, unless the employee requests a public hearing. (GC n 549576) SPECIAL MEETINGS Special Meetings may be called by the Mayor or a majority of the Council, with • strict notification requirements delivered to the media and Council 24 hours before the time of the meeting. (GC c 54956) Emergency meetings may be called without the normal 24 hour notice and posting requirements if prompt action is required due to the disruption or threatened disruption of public facilities. Only work stoppages, crippling disasters or other activities that severely impair the public health and/or safety qualify for emergency meetings. (GC ❑ 54956.5.) ELECTRONIC MAIL (EMAIL). THE PUBLIC RECORDS ACT AND THE BROWN ACT City email is no less a part of `official city business" than any other written correspondence, and there is no expectation of privacy for city email messages. Good judgment and common sense should therefore prevail at all times regarding its appropriate use. City email is subject to disclosure under the Public Records Act and is subject to • the requirements of the Brown Act. While the Brown Act does not prohibit the use of email to make individual contacts between Members of the Council, or the (Updated on 6Q/143/143) 36 • public or staff, great care should be taken to avoid the use of email to contact a majority of the Council, either individually or serially, "in a connected plan to engage in collective deliberation on public business." City email should not be used in any case where a record of any event, occurrence or statement is required or intended to be retained by the City in the ordinary course of business. City emails are intended to fulfill the same general function as ordinary daily verbal communications among City Council and City staff and are considered "transitory" documents (work -in -progress), and therefore are not subject to records retention requirements. For file management and storage purposes, City email messages should only be retained for as long as needed. In most instances this means deleting messages as you have read them, and shortly after you have sent them. (Reno. 42-05) (Reso. 64-12), (part) If an email message, including any attachments thereto, is considered an official city record, such emails should be printed as a hard copy and filed in accordance with the city's records retention policy. Generally, the sender of the email should be the person responsible for printing and filing it accordingly, but persons responsible for a particular program or project file shall be responsible for retaining all -e—mail they send or receive related to that program or project. (Reno. 42-05) • It is the responsibility of individual City Council Members, employees and their department heads to determine if email is an official city record that must be retained in accordance with the city's record retention policy. The city attorney will assist you in making such a determination. You should keep in mind, however, that preliminary drafts, notes or interagency or intra-agency memoranda that are not retained by the city in the ordinary course of business are generally not considered to be official city records subject to disclosure. City Council Members and employees are encouraged to delete documents that are not otherwise required to be kept by law or whose preservation is not necessary or convenient to the discharge of your duties or the conduct of the city's business. (Reso. 42-05) (Reso. 64-12), (part) Periodically, the city receives requests for inspection or production of documents pursuant to the Public Records Act, as well as demands by subpoena or court order for such documents. In the event such a request or demand is made for e- mail, the City Council Members or employees having control over such e-mail, once they become aware of the request or demand, shall use their best efforts, by any reasonable means available, to temporarily preserve any e-mail that is in existence until it is determined whether such e-mail is subject to preservation, public inspection or disclosure. The city clerk shall be contacted regarding any such emails within the City Council member or employee's control. (Reno. 42-05) • (Reso. 64-12), (part) (Updated on 6+?J103/143) 37 4.6 The Act provides many other restrictions and requirements; this chapter is intended merely as a Council summary and overview of the Act, and nothing in this Chapter supersedes the provisions of the Brown Act. Since State law constantly changes, it is important to ensure you have the latest information. Please check with the City Attorney and/or the City Clerk for more information. • • • (Updated on 64-2/103/143) 38 • CHAPTER FIVE COUNCIL/STAFF RELATIONSHIPS AND CONDUCT 5.1 INTENT The City Council as a whole retains full power to accept, reject, amend, influence, or otherwise guide and direct staff actions, decisions, recommendations, workloads and schedules, departmental priorities, and the conduct of City business. This chapter addresses the relationship and conduct between Council Members and staff with the intent of the Council to: 1) affirm that governing shall be by will of the collective Council, and 2) establish guidelines for Council and staff to ensure orderly, consistent and open City government. 5.2 GUIDELINES FOR COUNCIL MEMBERS The Council shall recognize that the primary functions of staff are to execute Council policy and actions taken by the Council, and to keep the Council informed. • 5.2.1 REQUESTS FOR INFORMATION Individual Council Members as well as the Council as a whole shall be permitted complete freedom of access to any information requested of staff, and shall receive the full cooperation and candor of staff in being provided with any requested information. Council Members shall make routine requests for information through the appropriate department head. Complex or comprehensive requests for information shall be made through the City Manager. 5.2.2 DIRECTION TO STAFF Generally, Council Members shall make requests for work to be done through the City Manager. Individual Members of the Council shall make no attempt to pressure or influence staff decisions. recommendations, workloads, and schedules, and departmental priorities without the prior knowledge and approval of the Council as a whole. 5.3 GUIDELINES FOR STAFF • Staff shall recognize that its primary function is to execute Council policy and to keep the Council informed. Staff shall present the Council with all relevant (Updated on 6-NI03/143) 39 information, as well as alternatives, in an objective, succinct manner. The City • Manager and staff are committed to treating each Council Member equally. 5.3.1 TIMELY RESPONSE City staff will make every effort to respond in a timely and professional manner to all requests made by individual Council Members for information or assistance, provided that, in the judgment of the City Manager the request is not of a magnitude, either in terms of workload or policy, which would require that it more appropriately be assigned to staff through the collective direction of the City Council. In terms of making this judgment, the following guidelines should be considered: The request should be specific and limited in scope so that staff can respond without altering other priorities and with only minimal delay to other assignments; the request should only impose a 'one-time" work requirement, as opposed to an on -going work requirement; the response to the request should not require a significant allocation of staff resources (generally defined as consisting of more than one staff person, or a single staff person working on the issue in excess of 1-2 hours). 5.3.2 DIRECTION FROM COUNCIL Staff is obligated to take guidance and direction only from the Council as a whole or from the appropriate management superiors as may be the case. Staff is • directed to reject any attempts by individual Members of the Council to unduly influence or otherwise pressure them into making, changing or otherwise suppressing staff decisions or recommendations, or changing departmental work schedules and priorities. Staff shall report such attempts to influence them in confidence to the City Manager, who may inform the Council as a whole of such attempts. 53.3 STAFF SUPPORT TO INDIVIDUAL COUNCIL MEMBERS An exception to the above guidelines may be staff work required in support of a Council Member designated by the City Council to represent the City in an intergovernmental role (e.g., Membership on Joint Powers Authority), or relative to a special assignment (e.g., a special task force). 5.3.4 INFORMATION DISTRIBUTION In cases where a staff response to an individual Council Member request involves written material that may be of interest to other Council Members, the City Manager will provide copies of the material to all other Council Members. In making this judgment, the City Manager will consider whether the information is significant or new or otherwise not available to the Council or of interest to the Council. • (Updated on 64-2/103/143) 40 • 53.5 SIGNIFICANT INFORMATION Any information, service -related needs, or policy positions perceived as necessary by individual Council Members, which cannot be fulfilled per the above guidelines, should be raised by the individual Council Member under the "Declaration of Future Agenda Items" category of a regularly scheduled City Council meeting. If so directed by the collective action of the Council, then staff will proceed to complete the work within Council established deadlines. 5.4 USE OF CITY LETTERHEAD Staff will not prepare correspondence representing a Councilmember's personal point of view or a dissenting point of view from an official City policy or Council position. If Councilmembers use their title, position, or City letterhead to express a personal opinion, the letter shall state "I am writing this letter on behalf of myself' and, the official City position must also be stated clearly so the audience understands the difference/relationship between the official City position and the viewpoint of the Councilmember. If a letter is written on behalf of the majority of the City Council, the letter shall state "I am writing this letter on behalf of the City Council". A copy of any and all correspondence developed by or for a Councilmember on City letterhead shall be provided to the City Manager and the rest of the City Council. (Reno. 50-07), (Reno. 11-10), (part) • 5.5 INPUT ON HIRING AND EVALUATION OF DEPARTMENT HEADS 5.5.1 11HUNG In an outside recruitment situation where the City Manager is hiring a Department Head, the City Council, as a group will be invited to an informal social setting, such as lunch, to meet the top candidates for the position. Following the event, Council members will provide the City Manager with any comments regarding the candidates prior to the final decision of the City Manager. (Reso. 46-10) In an internal recruitment situation, the City Manager will provide the hiring plan to the City Council in a closed session, and Council members will have an opportunity for comments, prior to final hiring. (Reno. 46-10) 5.5.2 INPUT ON EVALUATION OF DEPARTMENT HEADS Prior to the City Manager's completion of the annual evaluation of each Department Head (usually in December of each year), the City Council will be asked to submit in writing, that will remain confidential, any comments they would like the City Manager to consider in regard to the performance of the • Department Head. (Reso. 46-10) (Updated on 64-2/103/143) 41 CHAPTER SIX • ADVISORY BOARD PROCEDURES 6.1 COUNTY OR REGIONAL REPRESENTATION Annually, the Mayor shall make appointments to a variety of County and/or regional committees and boards. One Member of the Council shall serve as a voting representative and one Member shall serve as alternate. (See 6.5 for appointment procedures). To the best of their ability, Voting Delegates shall reflect the majority view of the Council as a whole, rather than their own personal opinions. 6.2 OTHER COUNCIL REPRESENTATION. SUBCOMMITTEES 6.2.1 COUNCIL LIAISON ASSIGNMENTS The City Council shall assign a Council liaison to each of the following advisory boards: Recreation & Parks Commission, Harbor Advisory Board, Public Works Advisory Board, , and Tourism Business Improvement District Advisory Board. (Reso. 46-10), (part) The purpose of the liaison assignment is to facilitate communication between the • City Council and the advisory body. The liaison also helps to increase the Council's familiarity with the membership, programs and issues of the advisory body. In fulfilling their liaison assignment, members should either attend advisory body meetings or watch the meeting broadcasts and maintain communication with the advisory body on a regular basis. (Reso. 46-10) Members should be sensitive to the fact that they are not participating members of the advisory body, but are there rather to create a linkage between the City Council and the advisory body. In interacting with advisory bodies, Council Members are to reflect the views of the Council as a body. Being an advisory body liaison bestows no special right with respect to advisory body business. (Reso. 46-10) 6.2.2 OTHER COUNCIL SUBCOMMITTEES Council may establish subcommittees of no more than two members to address areas of concern and/or study. (Updated on 64-2/103/143) 42 • 63 ROLE OF ADVISORY BOARD MEMBERS AT COUNCIL MEETINGS 63.1 INTENT To honor advisory board deliberations, views and positions on issues before Council; enhance communications between Council and their advisory bodies; and allow participation and input by advisory board members. 63.2 COUNCIL AGENDA REPORTS 6.3.2.1 Recommendation Differences. For those rare occasions when the City Manager recommendation differs from an advisory board recommendation, the difference should be clearly noted. 633 COUNCIL MEETINGS 6.3.3.1 Members of an advisory board are free to appear and give testimony before Council using the public microphone, after identifying whether they are speaking as a representative of the advisory board or as a private citizen. • 6.3.3.2 Reports to Council must be in written form. 6.3.3.3 Advisory boards will provide quarterly written or oral reports to the City Council on a rotating member basis. (Reso. 46-10) 6.4 ROLE OF CITY STAFF PERSONS Staff support and assistance may be provided or made available, but advisory bodies do not have supervisory authority over City employees. While they may work closely with advisory bodies, staff members remain responsible to their immediate supervisors and ultimately to the City Manager and Council. The members are responsible for the functions of the advisory board and the chairperson is responsible for committee compliance with applicable policies and procedures. Staff support includes preparation of a summary agenda in conjunction with the Chairperson, and preparation of agenda reports providing a brief background of the issue, a list of alternatives, recommendations, and appropriate backup material, if necessary. Members of advisory bodies are volunteers and should be treated with respect and courtesy. Advisory board members should have sufficient information to reach decisions based upon a clear explanation of the • issues within their charge. Sometimes members of advisory bodies may request information not related to their area of service. Staff members should in this case provide the same level of information and assistance as would be accorded any (Updated on 6421103/ 143) 43 citizen. If in the judgment of staff the request goes beyond that standard, the matter will be turned over to the City Manager. A staff person will be assigned to serve as Secretary, taking minutes as needed. It is important that advisory bodies wishing to communicate with the City Council do so through adopted or approved Council agenda procedures. Staff members shall assist the advising board to insure appropriate review and that City and State legislation is complied with. 6.5 APPOINTMENT PROCEDURES The following procedures shall be the policy of the City Council in regard to appointment of volunteer citizens to the various advisory bodies of the City. 6.5.1 PURPOSE The purpose of establishing these procedures shall be to insure that well -qualified, responsible and willing citizens are given the opportunity to serve the City and participate in the governing of their community. These procedures will apply to all appointments and reappointments to standing advisory bodies. 6.6 PROCESS 6.6.1 QUALIFICATIONS 6.6.1.1 The applicant must be a resident and registered voter of the City at the time and during the entire term of appointment, unless excepted by State law or Council approved special requirements in advisory committee by-laws. 6.6.1.2.1 The applicant must be at least 18 years of age at the time of appointment. 6.6.1.2.2 Elected Officials, Officers and Employees of the City of Morro Bay shall not be considered for appointment. 6.6.2 TERMS U 6.6.2.1 The term of office for each appointee to an advisory board shall be a maximum of four years unless excepted by State law or Council approved special requirements in advisory committee by-laws. The terms are staggered so that in no event, will all terms on any committee expire in the same year. Incumbents • may apply for subsequent terms of service. Terms of Office will expire on January 31, of the specified year. (Updated on 6I-3/103/143) 44 • 6.6.2.2 Persons appointed to fill the remainder of a vacated office term may reapply to serve on the same advisory board. 6.6.2.3 Mid-term appointment to a vacant seat shall not preclude the appointee from serving additional terms. 6.6.2.4 As a general policy, an applicant shall not be appointed to serve on more than one advisory board, except that a member may also serve on one technical or special-purpose committee at the same time. If appointed to another committee, he/she will be expected to resign from one board upon being appointed to another. 6.63 PROCESS 6.6.3.1 Applications are obtained and filed with the City Clerk's Office. 6.6.3.2 Prior to November 30, of each year, the City Clerk shall advise the City Council of the terms that are due to expire on each advisory board. The City Clerk shall also notify each advisory member whose term is due to expire. Each of these members • shall be given the opportunity to apply for reappointment. 6.6.3.3 The City Clerk shall then place an advertisement in the local newspaper, inviting citizens to apply for consideration as an appointment to an advisory board, with instructions regarding the application process. 6.6.3.4 It is recommended that applicants attend at least one meeting of the advisory body applied for prior to the interview with the City Council. 6.6.3.5 The City Council shall, in a noticed public meeting, interview qualified applicants. In making appointments, the Council shall strive for a representative cross-section of both lay and professional knowledge. The Council will act by separate motion on each appointment made. 6.6.3.6.1 Applicants not appointed will be advised and their applications held for up to one year for consideration in the event of a future vacancy. • 6.6.3.6.2 Candidates not appearing for interview before the City Council will be considered for appointment only upon a finding of the (Updated on 6+3/103/143) 45 City Council by motion that the absence arises from excusable • neglect. C L J (Updated on 64-2/103/143) 46 ® RESOLUTION NO.35-14 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA APPROVING A COOPERATION AGREEMENT BETWEEN THE COUNTY OF SAN LUIS OBISPO AND THE CITY OF MORRO BAY FOR JOINT PARTICIPATION IN THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM, THE HOME INVESTMENT PARTNERSHIP PROGRAM, THE EMERGENCY SOLUTIONS GRANT PROGRAM, AND THE HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS (HOPWA) PROGRAM FOR FISCAL YEARS 2015-2017 THE CITY COUN C I L City of Morro Bay, California WHEREAS, the County of San Luis Obispo ("County"), a political subdivision of the State of California; and the City of Morro Bay ("City") a municipal corporation, desire to participate in the Community Development Block Grant (CDBG) program administered by the U.S. Department of Housing and Urban Development (HUD); and WHEREAS, said program will promote the public health, safety and welfare by providing Brant funds to be used by the City and County to improve housing opportunities for low and ® moderate income households, to encourage economic reinvestment, to improve community facilities and public services, and to provide other housing -related facilities, or services; and WHEREAS. the Countv submitted to the City a Notice of Opportunity to be included in Urban County of San Luis Obispo for Purposes of Federal CDBG, HOME. and ESG Funding in a letter dated May 14, 2014; and WHEREAS; the County's May 14. 2014 letter states that under HUD regulation; the City must notify the County in writing whether the City elects to participate in the Urban County: and WHEREAS, the City desires to participate jointly with the County in said program: and WHEREAS. HUD requires that the parties enter into a cooperation agreement to define their rights and obligations as a prerequisite of participation in the CDBG program: and WHEREAS. the proposed cooperation agreement is consistent with the General Plan and with City and County policies encouraging cooperation between agencies on issues of regional significance such as affordable housing: and WHEREAS, the proposed cooperation agreement will promote the public health, safety and welfare by enabling the City and County to participate in the U.S. Department of Housing and Urban Development's CDBG program under an `Urban County" entitlement; thus making available funds for a variety of housing, economic development, and public services programs not otherwise available: and WHEREAS, the City and County enter into yearly subrecipient agreements which establish administrative policies and procedures, performance standards. and guidelines for funding specific CDBG programs and projects: and WHEREAS, the proposed cooperation agreement is not a "project' for purposes of compliance with the provisions of the California Environmental Quality Act (CEQA) and the City's CEQA Guidelines. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, as follows: 1. The City Council hereby approves and authorizes the City. Manager to submit a letter of intent to participate and also enter into a cooperation agreement with the County to enable joint participation in HUD's CDBG program. 2. The City Manager or his/her designee is hereby authorized to act on behalf of the City in connection with the implementation of the agreement, ongoing operation of the CDBG is agreement. and other activities necessary to carry out the intent of the cooperation agreement. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 10th day of June, 2014 on the following vote: AYES: Irons. C. Johnson, N. Johnson, Leage, Smukler NOES: None ABSENT: None F.VNIUMM A u� Jan i Boucher. City Clerk if L. Irons. NIavor El RESOLUTION NO. 34-14 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, REGARDING THE SITING OF A NEW WATER RECLAMATION FACILITY AND FORMATION OF A TECHNICAL REVIEW COMMITTEE THE CITY COUNCIL Ciry of Morro Bay. California WHEREAS, the City of Morro Bay has an existing Wastewater Treatment Plant that requires replacement; and *VIIEREAS, it has been determined to be in the best interest of Morro Bay to'construct a new Water Reclamation Facility that complies with the California Coastal Commissions actions of January 8, 2013; and WHEREAS, it is in the best financial interest of the community to minimize the major maintenance and repair costs at the existing wastewater treatment plant; and WHEREAS. on February 25. 2014. City Council adopted Resolution 17-14 committing to have a new Water Reclamation Facility operational prior to the expiration of the discharge permit for the existing wastewater treatment plant, being five years more or less, and �!1 WHEREAS, on May 0, 2014: the City Council received and reviewed the report from John F. Rickenbach Consulting regarding recommended Water Reclamation Facility (WRF) sites and reclamation. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Morro Bay, California, as follows: SECTION 1: The City Council provides the following direction to City staff: A. Begin preliminary discussions with the "Rancho Colina' property owner and regulatory agencies regarding site of a WRF on that property; and bring back to City Council a draft Memorandum of Understanding with the property owner that addresses the goals of each p",, a negotiation timeline and general non -financial terms of the property acquisition. B. Continue parallel path discussions with County and regulatory staff regarding a WRF at the California Men's Colony site. C. Form a WRF Technical Review Committee (TRC) that will be composed of one member from the Public Works Advisory Board and one member from the Planning Commission as appointed by each body and five members and rwo alternates to be selected from the community at -large. Council will appoint the at -large and alternate members using the same procedures as it uses to appoint to its standing advisory boards. D. The Citv Council has reviewed the report entitled Neiv Water Reclamation Facility Project Report on Reclamation and Council Recommended WRF Sites dated May 8, 2014. and will rely on its conclusions and recommendations as this process moves forward; with the understanding changes to those, and that reliance, may need to happen alone the way due to more definitive or different information that may become available. PASSED, APPROVED, AND ADOPTED, by the City of Morro Bay City Council; at a regular meeting held on this 27`h day of May, 2014 by the following vote: AYES: Irons. C. Johnson, N. Johnson; Leage, Smukler NOES: None ABSENT: None ATTEST: L� JamieL8oucher, City Clerk M Jai L. Irons. Mayor ® RESOLUTION NO.33-14 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, CONTINUING THE PROGRAM AND LEVYING THE ASSESSMENTS FOR THE 2014/15 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 seg., 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 L3, 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, which set the MBTBID assessments at 3% from June 1, 2009 to May 31, 2010, and 2% from June 1, 2010 and thereafter; and WHEREAS, on June 1, 2010, the MBTBID assessments returned to the 2% level, as established by Ordinance 546: and ® NVIIEREAS, on September 13, 2010, the City Council held a public hearing and first reading of Ordinance 562 to amend Ordinance 546, changing the assessment percentage to 3%, and approved Ordinance 562 at its September 27, 2010 meeting; and WHEREAS, on April 10, 2014, the advisory board requested the renewal of the TBID for the 2014/15 fiscal year (the sixth year of operation) to continue its activities, and the City Council has approved this renewal for the past five years; and WHEREAS, all other findings of Ordinances 546 and 562 remain unchanged; and WHEREAS, on April 22 and May 13, 2014, staff presented the annual report for the fiscal year 2012/ 13 (the fourth year of the TBID), the adopted budget for 2011/14, and the budget plan for 2014/15, attached to this Resolution as Exhibit A; and WHEREAS, the budget plan generally describes the activities to be marketing activities, which attract and extend overnight stays in Morro Bay hotels, as well as the operation of the Visitors Center, whose outreach to potential visitors is key; and WHEREAS, it is the intention of the City Council to leery and collect 3% assessments from the hoteliers within the TBID for the 2014/15 fiscal year; and WHEREAS, at the public meeting held on April 22, 20143 City Council additionally set the public hearing for the intent to levy the TBID assessment for May 13, 2014, at 7:00 p.m., to be held at the Morro Bay Veterans Memorial Hall located at 209 Surf Street, Morro Bay, California, in accordance with the California Streets and Highway Code Sections 36534 and 36535: and WHEREAS, on April 24, 2014, letters were sent to all affected businesses, notifi,ing them of the public hearing scheduled for May 13, 2014; and WHEREAS, at the May 13tn hearing, City Council scheduled May 27, 2014, at the Morro Bay Veterans Memorial Hall located at 209 Surf Street, Morro Bay, California for the final public hearing to consider testimony for and against renewal of the TBID assessment, in accordance with the California Streets and Highway Code Sections 36534 and 36535: and WHEREAS, on May 27, 2014, the City Council conducted the public hearing regarding the renewal of the TBID for the 2014/1 5 fiscal near, where affected businesses had the opportunity to protest the TBID renewal, with the following results: FOR: None AGAINST: None NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Morro Bay as follows: ® 1. The above recitations are true and correct, and incorporated herein by reference. 2. The Ciry Council, having affirmed the annual report and budgets on April 22 and May 13, 2014, at regular meetings, declares the renewal of the Morro Bay Tourism Business Improvement District for the 2014/15 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 Bav, at a regular meeting thereof held on the 27" day of May, 2014, by the following vote: AYES: Irons, C. Johnson, N. Johnson, Leage, Smukler NOES: None ABSENT: None JAI L. IRONS. Mayor JAM BOUCHER. City Clerk lull CITY OF MORRO BAY 2014/15 PROPOSED FISCAL BUDGET i 1 2013/14 I Revenues from: Exhibit A 77- Ij I Assessments — 567,434_t_ 550,000 ; 575,000 j Interest _ 264 y'stors Center - Cty Contribution_ _ 102,168 I Promotion - City Contribution I 58,425 ' S8,425 P motan Counci bequest_ 68,500 ; ! 58,000 t i j j Transfer in Subtotal I 694,623 i 1 768,593 I_! 575,000 Ixpe Enditures for captal outlay: Tourism promotion _ _ (662,277)y(766,593)%_(573,000 i AGP video _(6,000)1 (2,000 Transfers to General Fund _ (251000) Rev�A enues over (under) expendiures 1,346 _ cash balance u RESOLUTION NO. 32-14 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, MODIFYING THE WATER ALLOCATION PROGRAM FOR 2014 THE CITY COUNCIL City of Morro Bay, California R'HEREAS, Chapter 13.20 of the Morro Bay Municipal Code; calls for the City Council of the City of Morro Bay to adopt a yearly 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 require 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 January 17, 2014, California Governor Jerry Brown declared a water emergency, due to drought conditions; calling for a voluntary 20-percent reduction in water consumption: and is Conservation on January 22. 2014. the City of Morro Bay implemented Mandatory Water Conservation Requirements for Severely Restricted Water Supply Conditions; and WHEREAS, on January I I, 2014, County staff informed the City of Morro Bay that the State Water Project allocation for 2014 is now officially at 0-percent, and only stored water is available to meet delivery requests; and WHEREAS. on February 11, 2014, City Council did hold a duly noticed Public Hearing on the 2013 Annual Water Progress Report and the proposed 2014 Water Allocation Program. and WHEREAS; on February 11, 2014, City Council did also direct staff to develop a water retrofit program that will offset water demand from new development, held a duly noticed Public Hearing on the 2013 Annual Water Progress Report and the proposed 2014 Water Allocation Program. and WHEREAS, on April 18 2014, the California Department of Water Resources increased the State Water Project allocation for 2014 to 5-percent, plus stored water within the State Water Project available to meet delivery requests: and WHEREAS, the City's approximately 3,000 Acre Feet of stored water available is finite: and with adequate conservation may last three years. 51 NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Morro ® Bay, California, as follows: SECTION 1: A Water Allocation Program for the year 2014 is hereby modified to contain the following element: New water allocations requested for 2014 be offset on a two -to -one basis (or 440 gallons per day) by providing retrofits to existing uses or providing non -required water savings features for new development that is seeking the water allocation. The Public Services Director is responsible for the review and approval of the proposed retrofits to ensure that then offset the water supply requested by new development. Retrofits may include any of the following water saving best management practices: • Irrigation Retrofits • Waterless Urinals • Waterless Toilets • Ultra -Low Flow Toilets • Laxvn/Landscape Replacement Program • Grav water system installation in new construction • Installation of Rainwater Recovery Systems • Other Water Savings Best Management Practices as approved by the Public Services Director • Payment of an "In -Lieu" fee program of $2,900 per Water Equivalency Unit SECTION 2: Applicability A project that requires an allocation of new Water Equivalency Units (WEU) shall be subject to the allocation program established by this Resolution, unless the application for that project has been deemed complete as of the date of adoption of this Resolution. PASSED, APPROVED, AND ADOPTED, by the City of Morro Bay City Council, at a regular meeting held on this I ith day of May, 2014 by the following vote: AYES: Irons, C. Johnson, N. Johnson, Leage, Smukler NOES: None ABSENT: None ATTEST: JdjAie Boucher, City Clerk E J ie L. Irons. avo ® RESOLUTION NO.31-14 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA REAFIRMING, DELCARING AND PROCLAIMING. A WATER EMERGENCY AND ADOPTION OF A STANDING WATER EMERGENCY DURING REDUCED OR NON STATE WATER DELIVERY PERIODS; AND RESCINDING RESOLUTION NO. 64-09 THECITYCOUNCIL City of Morro Bay, California WHEREAS, in 2009, when facing a water shortfall, the City Council adopted Resolution No. 64-09, declaring and proclaiming a local water emergency; and WHEREAS, Resolution No. 64-09 is still in effect: and WHEREAS, California is facing a water shortfall as California is experiencing its driest year in recorded State history; and WHEREAS, rainfall amounts in San Luis Obispo County have made it the driest year on record within the county; and ® WHEREAS, on January 17, 2014, California Governor Jerry Brown declared an emergency due to drought conditions and called for a voluntary 20-percent reduction in water consumption: and WHEREAS, on March 11, 2014, the San Luis Obispo County Board of Supervisors adopted a resolution proclaiming a local emergency due to drought conditions in San Luis Obispo County: and WHEREAS, the City Council finds a dire situation exists due to exceptional drought conditions as reported by the U.S. Drought Monitor as of April 29, 2014, including drought level condition D4 for the entire county, the worst federal drought rating: and WHEREAS, on April 18 2014, the California Department of Water Resources increased the State Water Project allocation for 2014 to 5 percent, plus stored water within the State Water Project available to meet delivery requests: and WHEREAS, the City's approximately 3,000 acre-feet of stored water available is finite; and with adequate conservation may last three years: and WHEREAS, such drought conditions are anticipated to cause water shortages and severe economic losses within San Luis Obispo County region including Morro Bay's agriculture ® community; and ® WHEREAS. it is in the interest of the health, safety and general welfare of the residents of the City of Morro Bay to conserve the City's water supply during State Water Project shutdowns: and WHEREAS, it is in the interest of the health, safety and general welfare of the residents of the City of Morro Bay to conserve the City's water supply during future State Water Project deliveries of 35 % or less; and WHEREAS, in May 1993 the City of Morro Bay proactively established preparations for impending water supply shortages and emergencies by adopting Mandatory Water Conservation Requirements in the Morro Bay Municipal Code Section 13.04.320 et seq.; and WHEREAS, it is in the public's best interest not to rely on Resolution No. 64-09. but for the Council to adopt a new resolution again proclaiming and declaring a local water emergency. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Morro Bay, California. as follows: 1. Resolution No. 64-09 is hereby rescinded. 2. A local water emergency in the entire City of Morro Bay is hereby declared and proclaimed. ® 3. Mandatory Water Conservation Requirements during all State Water Project deliveries of 35% or less are hereby instituted. 4. The Public Services Director is hereby authorized and directed to take any and all actions outlined in Sections 13.04.340 and 13.04.345 of the Morro Bay Municipal Code that will best conserve water during the State Water Project shutdown, when State Water Deliveries fall below 35% or other water supply emergencies. PASSED, APPROVED, AND ADOPTED, by the City of Morro Bay City_ Council, at a reeular meeting held on this 13th day of May, 2014 by the following vote: AYES: Irons. C. Johnson, N. Johnson, Leage, Smukler NOES: None ABSENT: None Ja e L. Irons, Mayor ATTEST: ® JA E BOUCHER, City Clerk RESOLUTION NO. 30-14 ® A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, ADOPTING THE ADDENDUM TO THE MITIGATED NEGATIVE DECLARATION AND REAFFIRM CONDITIONAL USE PERMIT (#UPO-371) FOR THE MORRO CREEK MULTI -USE TRAIL AND BRIDGE PROJECT. THE CITY COUNCIL City of Morro Bay, California WHEREAS, Planning Commission conducted a public hearing on December 18. 2013 and forwarded a favorable recommendation to the City Council to adopt the Mitigated Negative Declaration and conditionally approve the Conditional Use Permit (#UPO-371); and WHEREAS. City Council conducted a public hearing on January 14, 2014, for the purpose of considering the Mitigated Negative Declaration and the Conditional Use Permit (#UP0-371); and WHEREAS, City Council action revised Planning Condition #1 by directing the applicant to coordinate with regulatory agencies, as necessary, to provide a minimum level of lighting along the path to assure basic safety and security of the public. Said lighting will be no higher than 4' from the ground surface and shielded to prevent impacts to the visual beauty of ® the night skyline; and WHEREAS, notices of said public hearing were made at the time and in the manner required by law; and WHEREAS, City Council has duly considered all evidence, including the testimony of the applicant, interested parties. and the evaluation and recommendations by staff. presented at said hearing: and WHEREAS, the City Council has reviewed this project in compliance with the California Environmental Quality Act (CEQA). NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay as follows: Section 1. Findings. Based upon all the evidence; the Council finds: California Environmental Quality Act (CEOA) 1. That for purposes of the California Environmental Quality Act, an Initial Study was prepared for the project which resulted in a Mitigated Negative Declaration (SCH#2013101083). A Visual Impact Assessment Addendum was added to the Mitigated Negative Declaration to evaluate the addition of low level lighting to assure basic safety and security of cyclists and pedestrians using the trail during V/ non -daylight hours. This Addendum determined that no significant impacts would result from the lighting and no additional mitigations are required. ® Therefore; with the incorporation of low-level lighting, the proposed lighting has been determined to have a less than significant impact on the environment. Conditional Use Permit Findings 1. No additional conditions or mitigations are required as a result of the Addendum Section 2: Action. The City Council does hereby adopt the amended Mitigated Negative Declaration with no additional mitigations and reaffirm Conditional Use Permit (#UP0-371).: PASSED AND ADOPTED by the Citv Council of the Citv of Morro Bay at a regular meeting thereof held on the lath day of May 2014 by the following vote: y AYES: Irons, C. Johnson, N NOES: None ABSENT: None ABSTAIN: None ATTEST: ® JA [E OU�Ci` City Johnson, Leage, Smukler rIE L. IIWNS, iv yor Addendum to_ -the Final=- x- Initial Stud Mitigated Negative—`_- Y Declaration i March 2014 E' a, v! r io n m 0n 1 a, 1 5'yi e*n t'{:s 13 P1'a a ne, 3:_ E'agin El ADDENDUM TO THE FINAL INITIAL STUDY - MITIGATED NEGATIVE DECLARATION MORRO CREEK MULTI -USE TRAIL AND BRIDGE PROJECT Prepared by: City of Morro Bay Public Services Department Rob Livick, Public Services Director 955 Shasta Avenue Morro Bay, CA 93442 Prepared with the assistance of.. Rincon Consultants, Inc. 1530 Monterey Street, Suite D San Luis Obispo, California 93401 March 2014 EXHIBIT B r-� Ef ®o This report prepared on 50% recycled paper with 50% post -consumer content. Morro Creek Multi -Use Trail and Bridge ProjectEXH I BIT B Addendum to the Final Initial Study -Mitigated Negative Declaration ® INTRODUCTION This document is an addendum to the Initial Study -Mitigated Negative Declaration (IS-MND) for the Morro Creek Multi -Use Trail and Bridge Project that was adopted by the Morro Bay City Council in January 2014. The addendum is required to address the possible environmental effects associated with a revision to the project description to add lighting to the project. The IS- MND stated that the project does not propose the installation of any lighting fixtures. However, due to safety concerns for pedestrians and bicyclists utilizing the boardwalk, path, and bridge during non -daylight hours, the project description has been revised to add low-level lighting to the project. The lighting fixtures will be ground -mounted LED lighting with 180 degree output and narrow beam light distribution (refer to Appendix). The lighting will be less than four feet in height and will be directed onto the boardwalk, path and bridge to avoid spillover onto adjacent areas. According to Section 15164 of the California Environmental Quality Act (CEQA) Guidelines, an addendum to a previously adopted Final IS-MND is the appropriate environmental document in instances when "only minor technical changes or additions are necessary" and when the new information does not involve new significant environmental effects beyond those identified in an adopted IS/MND. The change being contemplated involves a minor revision to the previously proposed project. In addition, as discussed below, the proposed revision would result in no new significant environmental effects. As such, the addendum is the appropriate environmental document under CEQA. ®. This addendum includes a description of the currently proposed project and a comparison of the impacts of the revised project to those identified for the previously approved project, which was evaluated in the January 2014 Final IS-MND. PROPOSED PROJECT The project is located at 1500 Embarcadero within Morro Bay and along the northern portion of the Morro Bay Embarcadero, adjacent to'the existing Morro Bay Power Plant (MBPP). The City of Morro Bay is located along Highway 1 in central San Luis Obispo County,'approximately 15 miles west of the City of San Luis Obispo. The project site is designated by the City of Morro Bay General Plan as Open -Space, Commercial/ Recreational Fishing and Planned Development (QA- 2/CF/ PD). The Morro Bay Waterfront Plan identifies the project site as "Area 1: Morro Rock/Coleman Park" (Morro Bay Waterfront Plan, adopted 1996). Poftions of the project site are located on property owned by Dynegy, but with an easement for public access. The proposed project would extend the existing Morro Bay Harborwalk with a pedestrian boardwalk and separated Class I bike path to provide a connection between the Morro Bay waterfront and north Morro Bay. A 12-foot wide paved separated Class I bike path would extend from the Morro Bay Power Plant entry way to the intersection of Embarcadero Road and Coleman Drive. The pedestrian boardwalk and separated Class I bike path would extend from the existing Morro Bay Harborwalk, south of the parking area at Embarcadero Road and Coleman Drive, and continue northward adjacent to the unpaved portion of Embarcadero Road, to Morro Creek. Along this segment, the boardwalk improvements would include an 8- foot wide pedestrian boardwalk, a 2-foot bioswale, a 12-foot wide Class I bicycle path, and a 2- - ow - - City of Morro Bay Morro Creek Multi -Use Trail and Bridge Project EXHIBIT B Addendum to the Final Initial Study -Mitigated Negative Declaration ® foot shoulder. An approximately 130-foot long,13-foot wide, clear span, pedestrian and bicycle bridge would extend the pedestrian boardwalk and bike path across Morro Creek to connect to north Morro Bay on Atascadero Road (State Route 41). The adopted IS-MND states that project does not propose the installation of any lighting fixtures. However, due to safety concerns for pedestrians and bicyclists utilizing the boardwalk, path, and bridge during non -daylight hours, the City is proposing to add low-level lighting to the project. The lighting plans for the project (refer to Appendix) depict a total of 35 fight fixtures extending on the south side of the proposed trail, from the intersection of Embarcadero Road and Coleman Drive, across the proposed bridge, to the terminus of Embarcadero Road just north of Morro Creek. The lighting design will be less than four feet in height and will be directed onto the boardwalk, path and bridge to avoid spillover into adjacent areas. ENVIRONMENTAL IMPACTS This section addresses the pertinent environmental issues studied in the Final IS-MND, comparing the effects of the project currently proposed to the effects of the project that was the subject of the adopted Final IS-MND. The Final IS-MND analyzed the full range of environmental issues addressed in the CEQA Appendix G checklist; however, the incorporation of low-level lighting into the project would not result in any new environmental effects with regard to issues such as air quality, biological resources, cultural resources, geology and soils, greenhouse gas emissions, hazards and hazardous materials, hydrology and water quality, land use and planning, noise, public services, recreation, transportation/traffic, and utilities and service systems. Therefore; this discussion focuses primarily on the potential aesthetic impacts of the project. Aesthetics According to the CEQA Appendix G checklist for aesthetic impacts, the proposed project would substantially degrade the existing visual character or quality of the site and its surroundings, or result in a significant impact if it would create a new source of substantial light or glare that would adversely affect day or nighttime views in the area. As described in the project description, the lighting design will be less than four feet in height and will be directed onto the boardwalk, path and bridge to avoid spillover into adjacent areas. As described in the adopted IS-MND, the proposed multi -use recreational path and low -profile bridge across Morro Creek would be an extension of similar existing adjacent facilities. The addition of low-level lighting to the project would be consistent with similar existing adjacent facilities, and would not result in changes to the visual character or quality of the area, as seen from adjacent and nearby land uses, including Morro Rock and Morro Rock City Beach. _ The lighting plans prepared by Thoma Engineering indicate that light levels from the proposed low-level lighting would not exceed 12.5 foot-candles at the source, and light spillage would decrease to less than 0.1 foot-candle within approximately 60 feet of the fixtures (depicted as a black line around each light fixture in the Appended figures). Light spillage refers to light ® measured in foot-candles, which reaches and illuminates objects beyond the intended target. City of Morro Bay Morro Creek Multi -Use Trail and Bridge Project Addendum to the Final Initial Study -Mitigate EXHIBIT B Declaration Comparative Illumination of Typical Outdoor Light Sources Light Source Illumination Expressed in Foot -Candles (fc) Direct Sunlight 10,000 to 13,000 fc Full Daylight 1,000 fc Overcast Day 100 fc Dusk 10 fc Twilight 1 fc Typical City Street Light 0.5 to 1.5 fc Full Moon - 0.01 to 0.02 fc Typical Interior Office 30 to 40 fc Typical Living Room at Night 6 fc Front Porch Lit With 60-Watt Bulb 1.5 to 3 fc II/uminance-Recommended Light Levels: mtw. EncineennaTwlBox com Typical Light Levels: mm lashen.w Lighting White Paper. hho.Y/ohoenix.gov As indicated in the above table, 0.5 to 1.5 foot-candles is similar to what would be expected of a typical street light. The Morro Dunes RV Park is located north of the proposed site across Morro Creek, approximately 200 feet from the nearest proposed light fixture. The nearest existing residences are located approximately 1,400 feet east of the project site. Light spillage would decrease to less than 0.1 foot-candle within approximately 60 feet of the fixtures (depicted as a black line around each light fixture in the Appended figures); therefore, Light would not spill over to these adjacent residential uses due to distance between the proposed light fixtures and the residences, as well as the intervening topography and vegetation. Therefore, impacts associated with the proposed project would remain less than significant, and no mitigation is required. r City of Morro Bay Morro Creek Multi -Use Trail and Bridge Project EXHIBIT B Addendum to the Final Initial Study -Mitigated Negative Declaration a 4 This page intentionally left blank. El City of Morro Bay , EXHIBIT B r- L Avvendix Proposed Lighting • wi I If 1� p�lli 13 o.r.. o iic�iw<�r u n olu�®®7Ja afdoad WMan dnoiMisop"i Ntl1d 311S ORll3W OlOHd 1�3f 021d 3'J01EJ99lN. iJ1 9� B y. n a 3 ! r al El 1 I. I_ 4�t�, +,y11 :�i�? Ill:ilJ; >. it e'" �?? ^^aa •••' ./a�v+aMoad ilvawuuR+�a fwllean Ml1d 311S JRll3Y1010Hd I N � .qdnojMisapm 3snulnw x3380oaaow ,J [ I i:ryli.Fe It I I e. Ml7d 311S 3M3WOlOHd I M '.� r� G;i€. r4hn r- r: ,.copra aAoae maaw,aNua Srm� � - I I` 4 dnoa2u2isa u1J1 'ay i��41�1��ee 350-LLlOW N33800880W a ■ Its tt of ! t I1 i[yi et i {�flil�! i!{iidd(i= ili3itt��413!34i'eE{ Iti 6i�_. ci i! of if it lliliililFi i 9 •t�i{{1�{l��4€tld.11tiirtri. �i u ) SFR((in} t eeill iiyynu 'i!-J A it iii{I{i 6i ti{ Gi � tip le "- W w # e l s ® RESOLUTION NO.29-14 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, DECLARING THE INTENTION TO CONTINUE THE PROGRAM AND ASSESSMENTS FOR THE 2014/15 FISCAL YEAR FOR THE . MORRO BAY TOURISM BUSINESS IMPROVEMENT DISTRICT (MBTBID) THE CITY COUNCIL City of Morro Bay, California AVHEREAS, the Parking and Business Improvement Area Law of 1989, Sections 36500 et seq., of the California Streets and Highway Code authorizes cities to establish and review business improvement areas for the purpose of promoting tourism; and WHEREAS, on April 13, 2009, City Council held a public hearing; and introduction and first reading of Ordinance 546 to establish the Morro Bay Tourism Business Improvement District (MBTBID), and WHEREAS, on April 27, 2009: City Council, approved Ordinance 546; and ® WHEREAS, on April 10, 20142 the advisory board requested the renewal of the TBID for the 2014/15 fiscal year to continue its activities; and WHEREAS_. all other findings of Ordinance 546 to establish the TBID remain unchanged: and V WHEREAS, on April 22, 2014: City Council conducted a public meeting where staff presented the annual financial report for the fiscal year 2012/L3 (the fourth year of the TBID), the adopted budget for fiscal year 2013/14, and proposed fiscal year 2014/15 budget, all of which are attached to this Resolution as Exhibit A: and WHEREAS, the budget generally describes the funded activities to be marketing, which attracts and extends overnight stays in Morro Bay hotels, as well as operation of the Visitors Center, whose outreach to potential visitors is key; and WHEREAS, at the public meeting held on April 22, 2014, City Council additionally set the public hearing for the intent to levy the TBID assessment for May 13, 2014, at 7:00 p.m., to be held at the Morro Bay Veterans Memorial Hall located at 209 Surf Street, Morro Bay, California, in accordance with the California Streets and Highway Code Sections 36524 and 36525. NOW, THEREFORE BE IT RESOLVED by the Citv Council of the City of Morro is Bay as follows: ® 1. The above recitations are true and correct; and incorporated herein by reference. 2. The City Council, having affirmed the annual report and budgets on April 22, 2014, at a regular meeting. declares its intention to renew the Morro Bay Tourism Business Improvement District for the 2014/15 fiscal year, and to levy and collect 3% assessments from hoteliers. 3. The City 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 Tuesday. May 27, 2014. PASSED AND ADOPTED by the City Council of the City of Morro Bay, at a regular meeting thereof held on the 13a' day of May, 2014, by the following vote: AYES: Irons, C. Johnson, N. Johnson, Leage, Smukler NOES: None ABSENT: None ® JA t L. I Oi S, May JANV. BOUCHER, City Clerk il; CITY OF MORRO BAY 2014/15 PROPOSED FISCAL BUDGET I MORRO BAY TOURISM BUSINESS IMPROVEMENT DISTRICT I 2013/14 2014/15 2012/13 j Amended Proposed Actual I Budget Budget Beginning cash balance $ 69,482 i $ ( 701828 _ ($ 11 ( 701828 I Revenues from: Assessments 567,434 550/000 575,000 Interest 264 , - Visitors Center - Uy Contribution - I 102,168 Promotion - Cdy Contribution 58,425 58,425 Promotion - Council bequest 68,500 ' 58,000 Transfer in - '_ - Subtotal 694,623 i 768,593 _ 575,000 Expenditures for capital outlay: Tourism promotion (662,277) .(766,593) (573,000) AGP video (6,000)i (21000) (2,000) Transfers to General Fund (25,000) Subtotal (693,277)I (768,593) (575,000) Revenues over (under) expenditures 1,346 — I . Ending cash balance $ 70,828 $ 70,828 $ 70,828 RESOLUTION NO.28-14 ® A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, APPROVING THE ENGINEER'S REPORT AND DECLARING THE CITY'S INTENTION TO LEVY THE ANNUAL ASSESSMENT FOR THE MAINTENANCE - OF THE NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT PURSUANT TO THE "LANDSCAPING AND LIGHTING ACT OF 1972" (STREETS AND HIGHWAYS SECTIONS 22500 ET SEQ.) THE CITY COUNCIL City of Morro Bay, California WHEREAS, all property owners of the North Point subdivision requested the City of Morro Bay form a maintenance assessment district to fund the maintenance of the North Point Natural Area: and WHEREAS, the Landscaping and Lighting Act of 1972 (the "Act") enables the City to form assessment districts for the purpose of maintaining public improvements; and WHEREAS, pursuant to Section 22623 of the Act, the City Engineer has filed in the Office of the City Clerk. and submitted for review to the City Council, a report entitled ® "Engineers Report North Point Natural Area Landscaping and Lighting Maintenance Assessment". dated May 1, 2014, prepared in accordance with Article 4 of the Act, commencing with Section 22565 (the "Engineer's Report"); and WHEREAS, pursuant to Section 22608.2 of the Act, the subdivider(s) were required by City ordinance to install improvements for which an assessment district was required in order to assure continued and uninterrupted maintenance of the North Point Natural Area; and WHEREAS, pursuant to the intent of Article XII1, Section 4. of the California Constitution, the property owners have elected to form the North Point Natural Area Landscaping and Lighting Maintenance Assessment District. Bay, NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Morro Section 1. The City Council approves the Engineer's Report. Section 2. 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 24, 2014 at 7:00 p.m. in the Veteran's Memorial Building, 209 Surf Street, Morro Bay. CA. ® Section 3. The improvements 'to be maintained at the North Point Natural Area are specified in the Engineer's Report dated May 1, 2014 which is hereby approved. Section 4. The assessment upon assessable lots within the district is proposed to total 55,645 or $564.50 per assessable parcel for fiscal year 2014/15. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held this 13`s of May, 2014 by the following roll call vote: AYES: Irons, C. Johnson, N. Johnson, Leage, Smulder NOES: None ABSENT: None ATTEST: k4w�� JAINUt BOUCHER, CITY CLERK JrIE L. IRONS, iV YOR EXHIBIT 'A' ® CITY Of MORRO RAY NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT ASSESSMENT DIAGRAM i- NORTH POINT NATURAL AREA \ '9 a LEGEND �0 = COUNTY ASSESSORS PARCEL NUMBER tl� . ..Y . TRACT 2110 a CITY OF MORRO BAY NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT ENGINEER'S REPORT 0 DIay1,2014 AFFIDAVIT FOR THE ENGINEER'S ANNUAL REPORT CITY,OF MORRO BAY NORTH POINT NATURAL. AREA LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT This report describes the proposed maintenance, improvements, budgets, zone of benefit and assessments to be levied on parcels of land within the NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING A41AINTENANCE ASSESSMENT DISTRICT for the fiscal year 2014/2015, as the same existed at the time of the passage of the Resolution of Intention. Reference is hereby made to the San Luis Obispo County Assessor's maps for a detailed description of the lines and dimensions of parcels within the District. The undersigned respectfully submits the enclosed Report as directed by the City Council and, to the best of my knowledge; information, belief, the report, the assessments and diagrams have been prepared and computed in pursuant to the Landscaping and Lighting.Act of 1972. Dated this / iP- day of K 2014 �c c� Rob Livick, PE/PLS — Public Services Director/City Engineer * CITY OF MORRO BAY NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT ENGINEER'S REPORT Table of Contents Page 1. Project Description 1 2. Maintenance Tasks 1 3. Maintenance Costs 1 4. Apportionment of Assessment 2 ® Assessment Diagram 3 Maintenance Task List Attachment A Detailed Cost Analysis Attachment B ul CITY OF MORRO BAY NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT ENGINEER'S REPORT 1. Project Description As a condition of approval for Tract No. 2110, the North Point subdivision, the developers were required to offer to the City for dedication Lot II of the subdivision for park ,purposes, and to construct improvements on Lot I I including a paved parking area, a stairway providing access to the beach, benches, landscaping and irrigation, lighting, and other improvements. The subdivision was also conditioned to provide maintenance of the park by establishing an assessment district. Lot I 1 of Tract No. 2110 is identified as the North Point Natural Area. For a detailed description of the improvements, refer to the plans and specifications on file in the office of the City Engineer. The owners of the ten residential lots within the North Point subdivision have requested that the City form a maintenance assessment district to fund the maintenance of the North Point Natural Area. II. Maintenance Tasks A list of maintenance tasks required to maintain the North Point Nahiral Area in acceptable condition for public use was developed by the City Recreation and Parks Department based on maintenance standards established for existing parks within the City and is included in this report as Attachment A. III. Maintenance Costs The estimated annual cost of maintaining the North Point Natural Area was developed by the Recreation and Parks Department based.on the tasks required and the City's Flat Rate Manual for Parks Maintenance. The annual cost of maintenance for the 2014/15 fiscal year is estimated to be $5,645.00. The detailed cost estimate is included in this report as Attachment B. IV. Apportionment of Assessment The total assessment for the District is apportioned to each of the ten residential lots equally. Lot 11, the North Point Natural Area; Lot 12, a private street; and Lot 13, an open space parcel to be granted to the State of California; are not assessed. Individual assessments are listed in the following table: Llf Parcel/Assessment Table Lot Number Countv Assessor's Parcel Number Annual Assessment 1 065-082-10 $564.50 2 065-082-11 $564.50 3 065-082-12 $564.50 4 065-082-11 $564.50 5 065-082-14 $564.50 6 065-082-15 $564.50 7 065-082-16 $56450 8 065-082-17 $564.50 9 065-082-18 $564.50 10 065-082-19 $564.50 11 065-082-20 $ 0.00 12. 065-082-21 $ 0.00 L3 065-082-22 $ 0.00 E N CO LA tfJ ® ZBO-S90 C�J 1\6\G��P 6 n� � a U"o C � �ma O rya' -^a �Ja {?1 Y A �p3 C'J SPA 00 Q a1' a O A- H N ^ / ^ N o J/ mm �a pg8 HZ 3 yi ®h �i oap�. o g 8 Attachment A NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT MAINTENANCE TASKS MAY 2013 Routine Maintenance Tasks Review for vandalism/repair Pick-up - paper . trash cigarette butts Empty - trash cans Clean - benches Check - fencing beach access stairway bike rack lights planting hillside; erosion Weekly or as needed Blow paths, parking lot Monthly or as needed Check trees Check/repair sprinkler system Trim trees and bushes as needed Critical parts inspections Annuallv or as needed Paint beach access stairway, public access signage New plantings (replacement) General safety inspection Annual tree pruning Remove graffiti Mow open space Pest/gopher control Trim and spray paths Repair public access signage Attachment B NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT MAY 2013 NAME: North Point Natural Area Landscaping and Lighting Maintenance Assessment District DIAGRAM: Attached PLANS AND SPECIFICATIONS: For a detailed description of the improvements, refer to the plans and specifications for Tract 2110 on file in the office of the City Engineer. No bonds or notes will be issued for this Maintenance. Assessment District. ESTIMATED COST OF MAINTENANCE: The following outlines the estimated budget for the maintenance of the North Point Natural Area for fiscal year 2014/15. Acwunt Description "cam- IFY 20312012+FN2012 i Ji- :d1' Z013 .: FY2013;2014'( FY 20142015 (Estimate) Personnel Coss $,�li" 1;377 83° $ , .i �tiJ R7.46 , '$ +'�' ` $500.00 Supplies $ v'666 $ 17!"If6026, ;i F i $ 200.00 contractual Serves'a�:gt!;titui a � .:., i�sadi =+u'fl 1151 IS>mi� i $Other Professional Svc $ Ci'"'t 'P $Upi ly'7,969:00r:$3,300.00 Utdties $ 1,645.00 Insurance ;"1 WM `-f25000 a '1lltii�.°u`'>a. Other Expenses f j.631 92 ; "_ 135 Captal Reserve ;, 2;303 41 $ 4 264 00 � ';" ->G '! i_°"i _ r .? .5'3j. ,F TOTAL EXPENSE $ : p ,..5'64500 5.,,;' 5936.18i'�$ + ,Tuna'=1;444.34;; $ 5,645.00 Reserve Balance $ 23,90000 i001 19;616.00E $ 19,616.00 Total Assessment 5,645.00r $k" ih,lrotm5645.00111 $ 5,645.00 __ „c�:. Y�:c°.: Previous Years Personnel Services Includes all daily and routine tasks as well as non -routine maintenance and repair costs. Supplies Includes trash liners, round -up and all other supplies in daily tasks as well as non -routine repair and maintenance. Services Includes utilities, engineering, insurance and structural repair to stairway and other structures. lJ 11 Total Assessment Estimate: $5,645.00 Per Parcel Yearly Assessment $5,645.00/10 parcels $ 564.50 is ® RESOLUTION NO. 27-14 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, . DECLARING THE CITY'S INTENTION 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 SECTIONS 22500 ET.SEQ.) 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 (Streets and Highways Code sections 22500 et. seq.) (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 City Engineer has filed in the Office of the City Clerk, and submitted for review to the City Council, a report entitled "Engineer's Report - Cloisters Landscaping and Lighting Maintenance Assessment District", is Section April 30, 2014, 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 X1II, 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 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 24, 2014 at 7:00 p.m. in the Veteran's Memorial Building, 209 Surf Street, Morro Bay, CA. BE IT FURTHER RESOLVED, the improvements to be maintained at the Cloisters Park and Open Space are specified in the Engineer's Report dated April 30, 2014, which is hereby approved. BE IT FURTHER RESOLVED, the assessment upon assessable lots within the district ® is proposed to total $148,944 or S 1,241.20 per assessable parcel for Fiscal Year 2014/15. L11 L 11 PASSED AND ADOPTED by the City Council of the City of Morro Bay at a reeular meeting held on this 1 1 day of May; 2014 by the following roll call vote: AYES: Irons, C. Johnson, N. Johnson, Leage, Smulder NOES: None ABSENT: None A� JA IIE L. IRONS, i AYOR ATTEST: JA IE BOUCHER, CITY CLERK �I U CITY OF MORRO BAY CLOISTERS LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT ENGINEER'S REPORT April 30, 2014 AFFIDAVIT FOR THE ENGINEER'S ANNUAL REPORT • CITY OF MORRO BAY CLOISTERS LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT This report describes the proposed maintenance, improvements, budgets, zone of benefit and assessments to be levied on parcels of land within the Cloisters Landscaping and Lighting Maintenance Assessment District, for the fiscal year 2014/2015, as the same existed at the time of the passage of the Resolution of Intention. Reference is hereby made to the San Luis Obispo County Assessor's maps for a detailed description of the lines and dimensions of parcels within the District. The undersigned respectfully submits the enclosed Report as directed by the City Council and, to the best of my knowledge, information, belief, the report, the assessments and diagrams have been prepared and computed in pursuant to the Landscaping and Lighting Act.of 1972. Dated this 3l! ' day of _Apr, 2014 PpF ,A t �Y.0.pLi �. •,r 2C . Z Rob Livick, PE/PLS — Public Services Director/City Engineer , a El. CITY OF MORRO BAY CLOISTERS LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT ENGINEER'S REPORT Table of Contents Page I. Project Description 1 11. Improvements 3 ID. Method of Assessment 4 IV. Maintenance Tasks 4 V. Maintenance Costs 5 VI. Apportionment of Assessment 5 VII. Assessment Diagram I Maintenance Task List Attachment A Cost Analysis Attachment B CITY OF MORRO BAY CLOISTERS LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT ENGINEER'S REPORT I. Project Description Tract 1996, known as the Cloisters development, is a 124 lot subdivision bounded by State Highway One at the east, Atascadero State Beach at the west, Morro Bay High School at the south, and Azure, Coral, and San Jacinto Streets at the north (the "Cloisters"). The Cloisters, prior to development, was a privately owned 80-plus acre expanse of open land. Prior to development the property was historically used for lateral and vertical access and contained a large area of sensitive sand dunes abutting the eastern edge of Atascadero State Beach. Prior to development, the Cloisters was the subject of various land development proposals including an RV park, a 390-unit condominium development, a 466-unit single family residential development, a 455- unit mixed residential development, and a 213-unit residential development. The City of Morro Bay (the "City") approved none of these development proposals. It was well known that any development at the Cloisters was going to require a balance between continuation of lateral and vertical access within and through the property, while at the same time conserving the sensitive plant and wildlife resources present. In addition, the negative impacts of development on the site would have to be sufficiently offset by public resources and public amenities from the site. Zoning on most of the Cloisters site is Planned Development, Single -Family Residential with the sand dunes and wetlands zoned Environmentally Sensitive Habitat (ESH). The purpose of the Planned Development (PD) overlay zone is to provide for detailed and substantial analysis of development on parcels, which because of location, size or public ownership, warrant special review. This overlay zone is also intended to allow for the modification of or exemption from the development standards of the primary zone which would otherwise apply if such action would result in better design or other public benefit. On September 23, 1996 the City Council passed Resolution No. 69-96 which accepted the final map . for Tract 1996 known as the Cloisters Subdivision, consisting of 124 lots. Lots 1 through 120 were for single-family residential purposes. Lots 121, 122 were for the 27.65-acre park and open space and Lot 124 was dedicated for a fire station and Lot 123 was offered to the state. The findings and conditions of approval for the project were numerous. For example, the City Council made findings that the Cloisters project could cause significant environmental impacts 0 ® relating to land use, visual/aesthetics, affordable housing, traffic generation, air quality noise, geology, drainage and water quality, ecological resources, and public services; but that these impacts can be mitigated by the recommended conditions. In addition, the City Council made further findings that the Cloisters project was in compliance with the specific policies of the GP/LUP and zoning ordinance with respect to protection of views, environmentally sensitive resources, public access, circulation, hazards and other requirements so long as the environmental impacts were mitigated. Finally, the City Council made further findings that the Cloisters project complies with MBMC with respect to optional subdivision design and related improvements, and that the optional design is justified in order to contribute to a better community environment through the dedication of extensive public areas, restoration of the ESH area, provision of scenic easements, and provision of larger than usual lots adjacent to such areas, and maintenance of a consistent lot layout pattern adjacent to existing development on the north side of Azure Street. In order to mitigate the environmental impacts of the project, and to provide a greater public benefit as required in a PD overlay zone, the conditions of approval for the project required the applicant to form an assessment district for the maintenance of the public park, bicycle pathway, right of way landscaping, coastal accessways, ESH restoration areas and any other improved common areas to be privately held or dedicated to the City. The public park area, as well as all open space improvements and the assessment district were part of many detailed discussions during each City and Coastal Commission hearings. Without this Condition of Approval and the creation of the ongoing assessment district, the project would not have been approved and there would not be a Cloisters Development. ® The assessment district formation proceedings began in August 1996, when all of the owners of the real property within the proposed district consented in writing to the formation of the Cloisters Landscaping and Lighting Maintenance Assessment District (the "District') pursuant to the Landscaping and Lighting Act of 1972 (the "Act'). The assessment district formation proceedings concluded with the final public hearing for formation on September 23, 1996, which levied the annual assessment of $ ] 48,944 (the "Assessment') for the maintenance of the thiml-four (34) acres of public resource lands including open space and natural lands, wetland area and pond used for drainage mitigation for homes constructed in Cloisters, median landscaping, street trees, a neighborhood park and recreation area, fencing and other public improvements. In preparing the various purchase and sale documents for each individual lot, including the Conditions, Covenants, and Restrictions, the owners and developer were especially careful to call out the existence of the assessment district and to make certain that the existence of assessment district was disclosed to anyone who purchased one of these lots. In drafting all the project documents, the City and the developer reinforced the special benefits for the residents of the Cloisters Project from the public amenities and easements maintained by the Assessments. Moreover, the City and the developer clearly understood that the creation and continuation of the Assessments was necessary for the approval of residential development within the Cloisters Project. II. Improvements The work and improvements to be undertaken for the Cloisters Landscaping and Lighting El Maintenance Assessment District, and the costs thereof paid from the levy of the annual assessments (the "Improvements"), are generally described as follows: Installation, maintenance and servicing of public improvements, including but not limited to, turf, ground cover, shrubs, and trees, other landscaping, irrigation systems, fencing, signage, trails, walkways, recreation facilities lighting, restroom facilities, parking and all necessary appurtenances, and labor, materials, supplies, utilities and equipment. The public resources maintained and improved by the assessments from the District are further summarized as follows: 4 acres of park land 18.15 acres of open space meadow and natural land 5.5 acres of wetland 1.6 acres of medians, street trees and public right-of-ways Within those areas, the following improvements are maintained and improved by the assessments: Parking lot Play equipment and sand lot Trash cans Demonstration garden Turf Decomposed granite paths Habitat fencing Observation pier Scrub/meadow plantings Hydro -seeded planting areas ESHA fencing and keep out signs Thickly planted medians Street trees Gabion channels Asphalt path system Coastal access ways Play area surfacing Drinking fountains Restroom Picnic tables Bike rack Benches Concrete walks Wetland plantings Willows Interpretive exhibits Trees &shrubs along the sound wall Directional signs Monuments with lights Sound wall 6' and 3' solid fence Wetland area and pond Bridges Light bollards Drainage systems Barbeques Irrigation (spray and drip) 0 For a detailed description of the improvements, refertothe plans and specifications for Tract 1996 ® on file in the office of the City Engineer. III. Method of Assessment This section of the Engineer's Report includes an explanation of the benefits to be derived from the installation, maintenance and servicing of the improvements; and the methodology used to apportion the total assessment to properties within the District. The Assessment is an annual assessment pursuant to the Act, which was established prior to the effective date for Proposition 218 and which meets the conditions in Article XMD Section > of the California Constitution. Therefore, the Assessment is exempt from the requirements for new or increased assessments imposed by Article XIIID. The proceeds from the District are being used to fund the maintenance and upkeep of public resources within the Cloisters development project for the special benefit of the properties located within this project. In absence of the Assessments, such improvements would not be provided and the properties within the District would be negatively impacted by the demise and deterioration of the landscaping, median improvements, street trees, turf areas, open space lands, drainage areas, fencing, pathways and other improvements maintained by the Assessments and located within the. District. Therefore, the continued maintenance and upkeep of these important improvements is a distinct and special benefit to properties within the District. Easements were also created and reserved in favor of each owner in the Cloisters Development for view, open space, scenic, passive recreation and coastal access across the entirety of LOTS 121, 122 w and 123, which shall not be developed with any improvements or structures unless necessary and proper for the restoration and maintenance of the Environmentally Sensitive Habitat Area. This is another distinct and special benefit conferred on property within the District. Moreover, these improvements, and their continued maintenance, were an original requirement for the creation of the residential single family lots within Cloisters and the subsequent development of residential housing in the project.[ Without the Assessments, these residential lots would not have been approved and created. Consequently, the creation of the residential lots approved for residential development is the primary special benefit from the Assessments. This special benefit is conferred exclusively on property within the District and is not a general benefit to the public at large. IV. Maintenance Tasks A list of maintenance tasks required to maintain the Cloisters Park and Open Space in acceptable condition for public use.was developed by the City Recreation and Parks Department based on maintenance standards established for existing parks within the City and is included in this report as Attachment A. V. Maintenance Costs The estimated annual cost of maintaining the Cloisters Park and Open Space was developed by the Recreation and Parks Department based on the tasks required and the CiVs Flat Rate Manual for Parks Maintenance. The annual cost of maintenance, including any reserves, for the 2014/1 5 fiscal ® 1 . It should be noted that the Assessments were unanimously approved prior to Proposition 218 by the owners of all property within the District. year is estimated to be $148,944. The cost estimate is included in this report as Attachment B. VI. Apportionment of Assessment The total assessment for the District is apportioned to each of the one hundred and twenty residential lots equally. Lots 121 and 122 (Parcel l) Cloisters Park and Open Space, Lot 124 (dedicated for a fire station) and Lot 123 (now Parcel 2) was offered to the State: are not assessed. Individual assessments are listed in the following table: Parcel/Assessment Table Lot Number County Assessor's, Parcel Number Annual Assessment 1 .065-387-001 $1,241.20 2 065-387-002 $1,241.20 3 065-387-003 $1,241.20 . 4 065-387-004 $1,241.20 5 065-387-005 $1,241.20 6 065-387-006 $1,241.20 7 065-387-007 $1,241.20 8 065-387-008 $1,241.20 9 065-387-009 $1,241.20 10 - 065-387-010 $1,241.20 11 065-387-011 $1,241.20 12 065-387-012 $1,241.20 13 065-387-013 $1,241.20 11 11 Lot Number County Assessor's Parcel Number Annual Assessment 14 065-387-014 S 1,241.20 15 065-387-015 S 1,241.20 16 065-387-016 S 1,241.20 17 065-387-017 S 1,241.20 18 065-387-018 S 1.241.20 19 065-387-019 S 1,241.20 20 065-387-053 S 1.241.20 21 065-387-054 S 1,241.20 22 065-387-055 S 1,241.20 23 065-387-023 S 1,241.20 24 065-387-024 S 1,241.20 25 065-387-025 S 1,241.20 26 065-387-026 S 1,241.20 27 065-387-027 S 1,241.20 28 065-387-028 S 1.241.20 29 065-387-029 S1,241.20 30 065-387-030 S 1,241.20 31 065-387-031 S 1,241.20 32 065-387-032 S 1.241.20 33 065-387-033 S 1,241.20 34 065-387-034 S L241.20 35 065-387-035 S 1,241.20 Lot Number County Assessor's Parcel Number Annual Assessment 36' 065-387-036 $1,241.20 37 065-387-037 $1,241.20 38 065-387-038 $1,241.20 39 065-387-039 $1,241.20 40 065-387-040 $1,241.20 41 065-387-041 $1,241.20 42 065-387-042 $1,241.20 43 065-387-043 $1,241.20 44 065-387-044 $1,241.20 45 065-387-045 $1,241.20 46 065-388-001 $1,241.20 47 065-388-002 $1,241.20 48 065-388-003 $1,241.20 49 065-388-004 $1,241.20 50 065-388-005 $1,241.20 51 065-388-006 $1,241.20 52 065-388-007 $1,241.20 53 065-388-008 $1,241.20 54 065-388-009 $1,241.20 55 065-388-010 $1,241.20 56 065-388-011 $1,241.20 57 065-388-012 $1,241.20 58 065-388-013 $1,241.20 59 065-388-014 $1,241.20 U E CI. El Lot Number Count, Assessor's Parcel Number Annual Assessment 60 065-388-015 S 1.241.20 61 065-388-016 S 1,241.20 62 065-388-017 S 1,241.20 63 065-388-018 S 1,241.20 64 065-388-019 S 1,241.20 65 065-388-020 S 1,241.20 66 065-388-02 l S 1.241.20 67 065-388-022 S 1.241.20 68 065-388-023 S1,241.20 69 065-388-024 S 1,241.20 70 065-388-025 S 1.241.20 71 065-388-026 S 1,241.20 72 065-388-027 S 1,241.20 73 065-388-028 S 1.241.20 74 065-388-029 S 1,241.20 75 065-388-030 S 1,241.20 76 065-388-031 S 1,241.20 77 065-388-032 S 1.241.20 78 065-388-033 S 1.241.20 79 065-388-034 S 1.241.20 80 065-388-035 S 1.241.20 81 065-388-036 S 1.241.20 82 065-388-037 S 1.241.20 83 065-388-038 S 1.241.20 84 065-388-039 S 1.241.20 Lot Number County Assessor's Parcel Number Annual Assessment 85 065-388-040 $1,241.20 86 065-388-041 $1,241.20 87 065-388-042 $1,241.20 88 065-388-043 $1,241.20 89 065-388-044 $1,241.20 90 065-388-045 $1,241.20 91 065-388-046 $1,241.20 92 065-388-047 $1,241.20 93 065-388-048 $1,241.20 94 065-388-049 $1,241.20 95 065-388-050 $1,241.20 96 065-388-051 $1,241.20 97 065-388-052 $1,241.20 98 065-388-053 $1',241.20 99 065-388-054 $1,241.20 100 065-388-055 $1,241.20 101 065-388-056 $1,241.20 102 065-388-057 $1,241.20 103 065-388-058 $1,241.20 104 065-388-059 $1,241.20 105 065-388-060 $1,241.20 106 065-388-061 $1,241.20 107 065-388-062 $1,241.20 108 065-388-063 $1,241.20 109 065-388-064 $1,241.20 0 C CI Lot Number County Assessor's Parcel Number Annual Assessment 110 065-388-065 S 1,241.20 111 065-388-066 S L241.20 112 065-388-067 S 1,241.20 113 065-388-068 S 1,241.20 114 065-388-069 S 1,241.20 115 065-388-070 S 1.241.20 116 065-388-071 S 1.241.20 117 065-388-072 S L241.20 118 065-388-073 S 1,241.20 1 19 065-388-074 S 1,241.20 120 065-388-075 S 1,241.20 121 065-386-005 0 122 Parcel 1 065-386-016 0 123 Parcel 2 065-386-017 065-386-018 065-386-019 065-386-012 065-386-013 065-386-014 065-386-010 0 124 065-386-015 0 El E Attachment A CLOISTERS PARK AND OPEN SPACE MAINTENANCE TASKS ROUTNE MAINTENANCE TASKS Review for vandalism/repair Outdoor Pick-up Empty Clean Check Clean ♦ trash ♦ paper ♦ cigarette butts ♦ 6 trash cans ♦ 7 tables ♦ 2 drinking fountains ♦ 5 interpretive panels ♦ 2 barbeques ♦ bike paths ♦ walkways ♦ 2 bridges ♦ 2 coastal access ways ♦ 1 observation pier ♦ I bike rack ♦ 2 play apparatus ♦ 25 light bollards ♦ play area surface ♦ 1 demonstration garden ♦ 3 toilets ♦ 1 urinal ♦ 2 sinks ♦ restroom floors/walls ♦ 18 benches ♦ restock restrooms WEEKLY OR AS NEEDED Mow turf Edge turf Remove weeds from demonstration garden, medians, planters Trim turf around trees, posts and other hard to reach areas Check and replace failed lamps Blow all walkways, observation deck and parking lot Attachment A CLOISTERS PARK AND OPEN SPACE MAINTENANCE TASKS BI-WEEKLY OR AS NEEDED Rake/redistribute gravel under picnic tables and benches Empty barbeques of ashes Litter pick-up open space area MONTHLY OR AS NEEDED Check new trees and plantings Check/repair sprinkler system Trim trees and bushes as needed Critical parts inspection New plantings BI-ANNUALLY OR AS NEEDED Fertilize turf/planter areas Paint restrooms, structures, signs, etc. Seed and aerate turf areas ANNUALLY OR AS NEEDED General safety inspection Annual tree pruning ASNEEDED Remove graffiti , Pest/gopher control Trim and spray paths Mow open space area Wetland observation/maintenance TECHNICAL SPECIFICATIONS FOR Landscape i\Iaintenance Cloisters Landscaping and Lighting Maintenance Assessment District LITTER CONTROL Litter is to be picked up as encountered during scheduled visits to each designated area. Particular care must be given to the removal of fecal matter from highly traveled and highly visible areas. Trash removal from garbage cans as specified on the Project Area Map. Cans are to be dumped per the distributed seasonal frequency schedule. All debris removed from the work site at the end of each work day. WALKWAYS/ HARDSCAPE/PARKING LOT Walkways and median hardscape and parking lots will be cleaned per the seasonal frequency schedule. All foreign objects, trash and weeds are to be removed from surfaces. Trash, clippings and foreign objects will be removed from the site. A blow pack may used to clean walkways and median hardscape between 8:00 a.m. till 4:00 p.m., Monday through Friday only. All litter gathered by a blow pack must be picked up and removed ® from the site. Walkways and median hardscape shall be kept clear of all shrubs and ground cover. Prune shrubs and ground cover as necessary to maintain safety. IRRIGATION All irrigation schedules shall comply with City watering restrictions, Irrigation shall be programmed to maintain proper plant growth in all areas. Proper maintenance and/or replacement of all irrigation systems and their component parts is required. This includes, but is not limited to, valve boxes and lids, gate valves, quick couplers, mainlines and laterals, all fittings and riser assemblies, hose bibs, sprinkler heads and emitters, wiring, backflow devices, remote control valves, irrigation controllers and enclosures. Automatic controllers will be programmed for seasonal water requirements. Each automatic system will be checked monthly for proper operation. Where automatic sprinkler systems do not exist, manual watering all plant material is required. Irrigation system requires monitoring of water usage at or below a three year running historical average. PEST CONTROL Control and elimination of weeds, insects, rodents and diseases affecting all vegetation using material and methods that are non -injurious to the plants as well as citizens and pets is required. BIKE PATHS AND PEDESTRIAN WALKWAY MAINTENANCE The path and/or walkway will be inspected on a daily basis, to ensure it is in safe condition. Inspections will include checking the condition of path and/or walkway surface, for erosion and drainage problems in the path and/or walkway corridor, for required clearances (vegetation encroachment or fallen trees), and for condition and proper function of path and/or walkway furnishings and amenities including signs, gates, bollards, fencing, benches, etc. Inspections after storm events are recommended to check for erosion, drainage problems and fallen trees or debris blocking the trail surface. The removal of invasive species from much of the path and/or walkway will assist in the restoration of native habitats, the diversifying of plant species present along the trail, and the improvement of the health, vigor and longevity of existing vegetation. The grass shoulder adjacent to the path and/or walkway shall be kept to a maximum height of 4"throughout the growing season. Erosion of the path and/or walkway surface, shoulders, base and sub -base courses can create hazardous conditions for trail users and compromise the structural integrity of the path and/or walkway. Signs are critical to the safe and convenient functioning of the path and/or walkway and must be kept graffiti free and free of obstructions, such as vegetation. Site furnishings and signs are typically constructed of wood. or metal. They should be inspected weekly to check for graffiti, splintering, chipped paint or general deterioration or damage. A weekly schedule of litter and trash pickup shall be developed to keep the path and/or walkway clean. Path and/or walkway users should be encouraged through appropriate signage to cleanup after themselves and to pickup litter they find as they use the trail. Dog litter shall be removed daily. RIGHT OF WAY PLANTERS/ MEDIAN STRIP MAINTENANCE Edging and pruning is to be done per the seasonal frequency schedule. Plant growth shall not encroach onto sidewalk, roadway or other hardscape, along fences and walls. Chemical application is not an acceptable method for ground cover edging. All ground cover shall be maintained in a weed free condition. Ground cover fertilizer shall be a complete slow release fertilizer equal to a ratio of 15-15, 15 evenly broadcast at the minimum rate of five (5) pounds per one thousand (1,000) square feet of ground cover area, per application. is is Bark mulch will be maintained in shrub beds as per the task frequency schedule. Bark mulch to be refreshed seasonally and/or as needed. IRRIGATED LANDSCAPE AREA i•IAINTENAINCE All plants and shrubbery shall be pruned to encourage healthy growth habits for shape and appearance according to accepted industry standard. Pruning shall be done according to the natural growth of each individual species of plant to maintain viability by cutting out dead, diseased or injured wood and to control growth when an unshapely shrub may result. Shrubbery adjacent to walkways and roadways must be kept pruned, avoiding safety hazards in traveled areas. Irrigated landscape beds shall be maintained in a weed free condition. Shrub beds shall be raked free of all debris, weeds and leaves and maintained in a neat condition during each work session. Bark mulch will be maintained in shrub beds as per the task frequency schedule. Mulch to be refreshed seasonally and/or as needed. Shrubs and shrub beds shall be fertilized per the seasonal task frequency schedule. Shrub fertilizer shall be a complete slow release fertilizer equal to a ratio of 25-5-5 evenly broadcast at the minimum rate of five (5) pounds per one thousand (1.000) square feet of ground ® cover area, per application. All fence lines, curbs, gutters, asphalt paths, parking lots, signs and other structures shall be free of all weeds. TREE BED/ WALK-ON BARK AREA MAINTENANCE All ground cover shall be maintained in a weed free condition. Bark mulch will be maintained in shrub beds as per the task frequency schedule. Contractor to refreshed bark mulch seasonally and/or as needed. TREE MAINTENANCE All tree pruning activities shall be performed only by trained, experienced personnel. Supervision shall be by a Western Chapter International Society of Arboriculture Certified Arborist complying with WCISA Pruning Standards or ANSI 300 specifications. All trees shall be pruned to provide pedestrian and vehicular clearance. All tree wells are to be kept clear of trash. suckers and weeds. No structural changes are to be made. All trees must be supported sufficiently. This includes, but is not limited to minor repairs consisting of replacing or repairing ties, refastening boards and. braces and removal of nursery stakes. All staking and ties shall be done in a way to avoid tripping hazards. Tree stakes or ties shall be removed promptly once their function has been completed. TURF MAINTENANCE Mowing operations shall be performed in a workmanlike manner that ensures a smooth appearance without scalping or allowing excessive cuttings to remain. Turf shall be mowed with a reel type mower equippedwith rollers or a rotary type mower. All equipment shall be adjusted to the proper cutting height and shall be adequately sharpened. Mowing height shall be three inches (3") for all turf areas. Mowing height may vary for special events and conditions as determined by the City of Morro Bay. Any and all litter and trash must be removed before the mowing operation. Walkways shall be cleaned immediately following each mowing operation. All turf areas will be mowed per the seasonal task frequency schedule. This is generally split into the warm season- April through October, and the cool season- November through March. Mowing will be scheduled to occur Monday through Friday. All turf edges, including but not limited to sidewalks, driveways, curbs, shrub beds, ground cover beds, tree basins and open space areas shall be edged to a neat and uniform line; all grass invasion must be eliminated. All turf edges shall be trimmed and limited around sprinklers, valve boxes, meter boxes, backflow devices, park equipment and other obstacles. Weed -eater type string trimmers may be used for edging. Use of string type trimmers requires caution near trees and plants. When a power edger with a rigid blade is used, the edging of turf shall be completed as one operation in a manner that avoids damage to concrete sidewalks and borders and results in a well- defined, V-shaped edge that extends into the soil. Chemical application for edging may be used in and around areas such as planter, areas adjacent to building, trees, fence lines, sprinkler heads, etc. Prior to application of any chemical, all areas shall be trimmed to the property height. All turf shall be fertilized per seasonal task frequency schedule. Turf fertilizer shall be a complete fertilizer, evenly broadcast at the minimum rate of one (1) pound actual available nitrogen per one -thousand (1,000) square feet of turf area, per application. Applications shall be as follows; 16-8-8 applied in May; 22-3-9 (slow release) applied in January. Turf areas shall be aerated per the seasonal task frequency schedule. Turf areas shall be maintained in a weed free' condition. ® NEED CONTROL- NUSCELLANEOUS OPEN SPACE AREAS/ DETENTION BASINS Designated open space, non -irrigated areas and detention basins are to be mowed or weed - whipped seasonally (approximately three to four times per year All noxious weeds are to be removed and discarded. All fence lines, light standard bases, tree wells, sidewalks, curbs, gutters, asphalt berms, parking lots, signs and other structures shall be free of all weeds. NNTTLANDS Designated Wetland maintenance must be coordinated with City of Morro Bay Maintenance Staff and within the State Fish and Game guidelines as stated on current maintenance permit. RESTROOi\I Restroom sanitation is the process of cleaning and sanitizing restrooms to keep them safe and in proper working order. Cleaning and sanitizing is required daily. Service and refill all dispensers to include soap, paper towel, toilet tissue; and empty sanitary napkin and waste receptacles. Ensure all dispensers are in good working order and properly cleaned. Clean and disinfect toilets, urinal and wash basins. Liquid bowl cleaner shall be used as needed to prevent stains and lime buildup. Floors shall be swept daily and pressure washed as needed. E Attachment B CLOISTERS LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT MAY 2014/2015 NAME: Cloisters Landscaping and Lighting Maintenance Assessment District DIAGRAM: Attached PLANS AND SPECIFICATIONS: Attached. No bonds or notes will be issued for this Maintenance Assessment District. ESTIMATED COST OF MAINTENANCE: The following outlines the estimated budget for the maintenance of the Cloisters Park and Open Space for fiscal year 2014/15. It also provides a look back at the three previous fiscal years including the current year with expensed as of April 30, 2014. AocountDesv'rytion t EnE of FY 2011, 2012 O4�r1VT' End of '- FY 20122013, — FY'2013-2014(YTD)- FY 2014-2015(Estimate) Personnel Costs '$s,�r12278013 'Etr239602Ii $' '3;178.24;;� $ 4,600.00 Supplies, $ '° 6;655'S8 $,lr;i2 405 51 , $ 1;883.33,. $ 3,000.00 Contractual Services $;48;562 5 s . .89 778:94'I $ 60,887,00 $ 90,000.00 Other Professional Svc $ 246.00 $ 500.00 Utllit es - $31,052 59 . E E-= 24 437.82t �$ '.., r .19;010.33 � $ 28,000.00 Insurance $I"I t���440000 S)'?iiT_ 300.00jj $_ `225.00, Other Expenses $ '"'i1;970 0Z $ 135 .29. $ - 1,980.33 . $ 3,000.00 Capital Reserve `l:il��iUv 'a­111 i$ „ '28 84042�.$ ' . 20;400.00 $ 19,944.00 General Fund Subsidy $�'(67;253 59) '#19lri1;W,jph$j-� n - - Kustment to Cash basis from Accrual q ry, E -3 569 06' - - TOTAL EXPENSE $'R.148,94400 $-_''148,94400e !$ ° `107;810.23''�. $ 148,944.00 Capital Reserve Balanceg!�j`r+j(25271.3G' 46;671.36' $ 66,616.36 Total Assessment t$,'`i148,944.00$ ..148 944:OO $. -_ _ 148,944.00; $ 148,944.00 Previous Years- - . FY 2013-2014 YTD and Estimates j Contract Services Includes all daily and routine tasks as well as non -routine maintenance and repair costs. Personnel Services Includes contract supervision of daily and routine tasks as well as non -routine maintenance and repair costs. 11 Supplies Includes all supplies used in daily tasks as well as non -routine repair and maintenance. Services Includes utilities, engineering, insurance and structural repair. Deferred i\Iaintenance Accumulated funds to be directed at capital projects, Permits, and other one-time expenses General Fund Subsidv Funds provided by the General Fund to cover costs that exceed the annual assessment Total Assessment Estimate: S148,944 Per Parcel Yearly Assessment S148,944/120 parcels S 1,241.20 `,J E C� RESOLUTION NO. 25-14 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA APPROVING THE FINAL NIAP FOR TRACT 2870 FOR A 10-LOT RESIDENTIAL SUBDIVISION KNIONVN AS SEASHELL ESTATES THE CITY COUNCIL City of Morro Bay, California WHEREAS, on February 4, 2008, the Morro Bay Planning Commission held a public hearing, received public testimony, and after closing the public hearing; fully considered the various issues surrounding the case recommending to City Council approval of map for Vesting Tentative Map for Tract 2870. associated development applications, and the California Environmental Quality Act (CEQA); and WHEREAS, on April li, 2009, City Council approved the Vesting Tentative Map for Tract 2870, associated development applications, and the California Environmental Quality Act (CEQA); and WHEREAS, the sub -divider has since satisfied all Conditions of Approval and has requested approval of the Final Map for recordation; and WHEREAS, that approval is a ministerial act pursuant to the Cite 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, the City hereby approves the Final Map for Tract 2870. PASSED AND ADOPTED by the City Council of the City, of Morro Bay. California. at a regular meeting held on the 22nd day of April 2014, by the following vote: AYES: Irons, C. Johnson_. N. Johnson, Leage, Smukler NOES: None ABSENT: None ABSTAIN: None ATTEST: — xdlm� JAK41E BOUCHER, City Clerk �1444 ;� 4k6� JAi E L. IRONS, Mayor u C 11 RESOLUTION NO. 26-14 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA APPROVING DELEGATION OF AUTHORITY FOR EXECUTING CALTRANS DOCUMENTS THE CITY COUNCIL City of Morro Bay, California NVHEREAS, the City of Morro Bay is eligible to receive Federal and/or State funding for certain transportation projects through the California Department of Transportation (CalTrans); and WHEREAS, Master Agreements; Program Supplemental Agreements, cooperative Agreements, Right -of -Way Certifications, Fund Exchange Agreements, Project Certifications and/or Fund Transfer Agreements need to be executed with the California Department of Transportation before such funds can be claimed: and WHEREAS; the City of Morro Bay wishes to delegate authorization to execute these agreements, certifications and any amendments thereto to the City Engineer or his designee. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay. that the Citv Engineer or his designee is authorized to execute all Master Agreements, Program Supplemental Agreements, Cooperative Agreements, Right -of - Way Certifications, Fund Exchange Agreements, Project Certifications. Fund Transfer Agreements and any amendments thereto with the California Department of Transportation. PASSED AND ADOPTED by the City Council of the Citv of Morro Bay at a regular meeting thereof held on the 22❑d day of April; 2014 by the following vote: AYES: Irons. C. Johnson, N NOES: None ABSENT: None ATTEST: JA E BOUCHER, City Clerk Johnson. Lease. Smukler J IE L. IRONS. Mayor RESOLUTION NO. 24-14 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, AUTHORIZING AND DIRECTING MODIFICATIONS TO WATER CONSERVATION REQUIREMENTS THE CITY COUNCIL City of Morro Bay, California WHEREAS, on December 14, 2009, the City of Council adopted Resolution 64-10 directing the Public Services Director to set the water conservation level based upon State Water Project allocations less than 35-percent; and WHEREAS. at the Citv Council meeting on January 28. 2014. the Public Services Director announced the City increased its level of water conservation from Moderately Restricted to Severely Restricted water supply conditions based upon the anticipated State Water Project allocation of 0-percent for 2014 along with Governor Browns emergency drought declaration: and ® WHEREAS. Chapter 13.04 of the Morro Bay Municipal Code (MBMC) establishes the Water Conservation Requirements and the Powers of the City Council; and WHEREAS, MBMC subsection 13.04.345 C.l.c. states, when during severely restricted water supply conditions exist, Washing cars by use of a hose is prohibited. Use of a bucket is permitted subject to non -wasteful applications; and WHEREAS. MBMC subsection 13.04.345 C.3.a. states, when during severely restricted water supply conditions exist, Use offresh water to wash down boats. docks, or other incidental activities is prohibited; and WHEREAS. MBMC subsection 13.04345 C.3.b. states, when during severely restricted water supply conditions exist. All hoses shall have spring -loaded shutoff- nozzles or similar controlling devices; and WHEREAS. MBMC subsection 13.04.330 E. allows City Council to provide for exemptions to any conservation measure. NOW, THEREFORE, BE IT RESOLVED, by the Cite Council. City of Morro Bay; California, as follows: Section 1. Pursuant to the authority in MBMC subsection 13.04.330 E.. use of hoses ® with spring loaded shut-off nozzles for the washing of vehicles, boats and docks will be allowed, so long as only the minimum amount of potable water is used, and there are no other non -potable water alternatives. Section 2. As stated in MBMC subsection 13.04.250 E. and section 13.04.340, if a ® water customer of the City is excessively wasting water (including; but not limited to; water running down gutters) and fails to correct that waste, the Public Services Director, and his/her designee (the "Director'), are authorized and directed to turn off the water of that customer: provided. that the Director shall not terminate any water service until the Director gives notice; in writing, to that customer of the reasons for the proposed termination. and the customer fails to correct that excessive waste or to provide evidence water was not being excessively wasted. PASSED, APPROVED, AND ADOPTED, by the City of Morro Bay City Council. at a regular meeting held on this 8th day of April, 2014 by the following vote: AYES: Irons, C. Johnson, N. Johnson, Leage, Smulder NOES: None ABSENT: None ATTEST: J e Boucher, City Clerk 11 Ja le L. Irons, Mavor RESOLUTION NO. 23-14 RESOLUTION OF THE CITY COUNCIL ® OF THE CITY OF MORRO BAY, CALIFORNIA DETERIMINING ISSUANCE OF AN ABC PERMIT FOR AN ON -SALE WINE BAR AND TASTING ROOM LOCATED AT 845 EMBARCADERO, SUITE H WOULD SERVE THE PUBLIC CONVENIENCE AND NECESSITY THE CITY COUNCIL CITY OF MORRO BAY, CALIFORNIA WHEREAS, Gregory Allen Willcutt and Kathryn Eileen Willcutt applied for a Department of Alcoholic Beverage Control Permit for an On -Sale Wine Bar and Tasting Room located at 845 Embareadero Suite H; 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 City Council must determine 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 On -Sale Wine Bar and Tasting Room at this location. ® Now, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California: Section 1. The City Council desires to support new businesses in Morro Bay that are in conformance with the goals set by the City Council to "develop ways to be attractive to new businesses." Section 2. A business that will newly provide On -Sale Wine Bar and Tasting Room meets those goals. Section 3. Based on all the foregoing, the public convenience and necessity will be served by issuance of a license from the Department of Alcoholic Beverage Control for an On -Sale Wine Bar and Tasting Room at 845 Embarcadero Suite H. 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 April. 2014 on the following vote: AYES: Irons, C. Johnson. N. Johnson, Leage, Smukler NOES: None ABSENT: None A J IE L. IRONS_. Mayor ATTEST: JAIAt BOUCHER. City Clerk Departir l of Alcoholic Beverage Control INFORMATION AND INSTRUCTIONS - SECTION 23958.4 B&P State of California EDMUND G. BROWN JR.. Govemor Instructions This form is to be used for all applications for original issuance or premises to premises transfer of licenses. Part I is to be completed by an ABC employee, given to applicant with pre -application package, with copy retained in holding file or applicant's district file. Part 2 is to be completed by the applicant, and returned to ABC. Part 3 is to be completed by the local governing body or its designated subordinate officer or body, and retumed to ABC. PART 1 - TO BE COMPLETED BY ABC 1. APPLICANTS NAME WILLCUTT, Gregory Allen & WILLCUTT, Kathryn Eileen 2. PREMISES ADDRESS (Street:=toev and name, dry, zip pope) 3. LICENSE TYPE 845 Embarcadero Ste H, Morro Bay 93442-2175 1 42 Full Service Restaurant E]Hofbrau/Cafeteria Cocktail Lounge Private Club Deli or Specialty Restaurant Comedy Club Night Club Veterans Club Cafe/Coffee Shop Brew Pub Tavern: Beer F]Fratemal Club Bed & Breakfast: Theater Tavern: Beer & Wine 1XIWine Tasting Room Wine only 0AII Supermarket FlMembership Store EiService Station Swap MeeUFlea Market Liquor Store Department Store HConvenience Market Drive-in Dairy DDrugNadety Store �FlorisUGik Shop Convenience Market w/Gasoline Other - describe: 5. COUNTY POPULATION 6. TOTAL NUMBER OF LICENSES IN COUNTY []On -Sale Off -Sale 7. RATIO OF LICENSES TO POPULATION IN COUNTY []On -Sale Off -Sale 8. CENSUS TRACT NUMBER �106.03 9. NO. OF LICENSES ALLOWED IN CENSUS TRACT 3 [X]On-Sale Off -Sale 10. NO. OF LICENSES EXISTING IN CENSUS TRACT 39 X❑On-Sale -Off-Sale ,S THE ABOVE CENSUS TRACT OVERCONCENTRATED WITH LICENSES? (ie., does the ratio of limnus to popNalion in Iha census tray excxd the ratio of Bponses W popula0on far the endue county ? , the number of existing licenses exceeds the number allowed the number of existing licenses is lower than the number allowed 12. DOES LAW ENFORCEMENT AGENCY MAINTAIN CRIME STATISTICS? nYes (Go to Item #13) nNo (Go to Item #20) 13. CRIME REPORTING DISTRICT NUMBER 14. TOTAL NUMBER OF REPORTING DISTRICTS 15. TOTAL NUMBER OF OFFENSES IN ALL REPORTING DISTRICTS Nj I N/A N/A 16, AVERAGE NO. OF OFFENSES PER DISTRICT 11, 120%OF AVERAGE NUMBER OF OFFENSES 18. TOTAL NUMBER OF OFFENSES IN REPORTING DISTRICT I I N/A N/A 19. IS THE PREMISES LOCATED W A HIGH CRIME REPORTING DISTRICT7 (i.e.. has a 20% greater nianber of reported v4nes than the average ntanEer of reported Crimes as de:emdraM from all crane repartvrg disaias widlin re, iurisdidion of Bte local law artforcement agency) Yes, the total number of offenses in the reporting district equals or exceeds the total number in item #17 XINo, the total number of offenses in the reporting district is lower than the total number in item #17 20. CHECK THE BOX THAT APPLIES (Cteck only one pox) a. If "No" is checked in both item #11 and item #19, Section 23958.4 B&P does not apph to this application, and no additional information will be needed on this issue. Advise the applicant to bring this completed torte to ABC when filing the application. b. If "Yes" is checked in either item #11 or item #19, and the applicant is applying for a non -retail license, a retail bona fide public eating place license, a retail (Icense issued for a hotel, motel or other lodging�ablishmenl as defined in Section 25503.1Bfb) B&P, or a retail license issued in conjuction with a beer manufacturers license, or winegrowers license, advise the applicant to complete Section 2 andd bring the completed form to ABC when filing the application or as soon as possible thereafter. Oc. If "Yes" is checked in either item #11 or item #19, and the applicant is applying for an off -sale beer and wine license, an off -sale general license, an on - sale beer license, an on -sale beer and wine (public premises) license, or an on -sale general (public premises) license, advise the applicant to take this form to the local coveminq bodv, or its designated subordinate officer or body to have them complete Section 3. The completed forth will need to be provided to ABC in order to process Body/Designated Subordinate Name: CITY OF MORRO BAY PLANNING DIRECTOR RED BY (Name of Departornt Employee) Rebecca Sunderhaus ABC-245 (1 2 -'TO BE COMPLETED BY THE APPLICANT (If box #20b is checked) 21. Based on the information on the reverse, the Department may approve your application if you can show that public convenience or necessity would be served by the issuance of the license. Please describe below the reasons why issuance of another license is justified in 771N )�LD '�"I y c C� . 22. a 5-/ /4{ PART 3 - TO BE COMPLETED BY LOCAL OFFICIALS (If box #20c is checked) The applicant named on the reverse is applying for a license to sell alcoholic beverages at a premises where undue concentration exists (i.e., an over -concentration of licenses and/or a higher than average crime rate as defined in Section 23958.4 of the Business and Professions Code). Sections 23958 and 23958.4 of the Business and Professions Code requires the Department to deny the application unless the local governing body of the area in which the applicant premises are located, or its designated subordinate officer or body, determines within 90 days of notification of a completed application that public convenience or necessity would be served by the issuance. Please complete items #24 to #30 below and certify or affix an official seal, or attach a copy of the Council or Board resolution or a signed letter on official letterhead stating whether or not the issuance of the applied for license would serve as a public convenience or necessity. []No ❑ See Attached (i.e., letter, resolution, etc.) 25, ADDITIONAL COMMENTS, IF DESIRED (may include reasons for approval m denial of public mnverJenm or necessity): OFFICIAL NAME 27. CITY/COUNTY OFFICIAL TITLE 2e. CITY/COUNTYOFFICIAL PHONENUME �o�s M Qu Leto-o "7ri - -0 _1-f RESOLUTION NO. 23-14 RESOLUTION OF THE CITY COUNCIL ® OF THE CITY OF MORRO BAY, CALIFORNIA DETERMINING ISSUANCE OF AN ABC PERMIT FOR AN ON -SALE WINE BAR AND TASTING ROOM LOCATED AT 845 EMBARCADERO, SUITE H WOULD SERVE THE PUBLIC CONVENIENCE AND NECESSITY THE CITY COUNCIL CITY OF MORRO BAY, CALIFORNIA WHEREAS, Gregory Allen Willcutt and Kathryn Eileen Willcutt applied for a Department of Alcoholic Beverage Control Permit for an On -Sale Wine Bar and Tasting Room located at 845 Embarcadero Suite H; 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 City Council must determine 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 On -Sale Wine Bar and Tasting Room at this location. Now, THEREFORE, BE IT RESOLVED by the City Council of the City of Mono Bay, California: Section 1. The City Council desires to support new businesses in Mono Bay that are in conformance with the goals set by the City Council to "develop ways to be attractive to new businesses. Section 2. A business that will newly provide On -Sale Wine Bar and Tasting Room meets those goals. V Section 3. Based on all the foregoing, the public convenience and necessity will be served by issuance of a license from the Department of Alcoholic Beverage Control for an On -Sale Wine Bar and Tasting Room at 845 Embarcadero Suite H. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 8" day of April, 2014 on the following vote: AYES: Irons, C. Johnson, N. Johnson, Leage, Smukler NOES: None ABSENT: None JA/M E L. IRONS. Mayor ATTEST: V JA BOUCHER, City Clerk Department of Alcoholic Beverage Control State of California APPLICATION FOR ALCOHOLIC BEVERAGE LICENSE(S) ABC 211 (6/99) TO: Department of Alcoholic Beverage Control File Number: 542351 3220 S HIGUERA ST Receipt Number: 2216975 STE 233 Geographical Code: 4006 SAN LUIS OBISPO, CA 93401 Copies Mailed Date: February 25, 2014 (805) 543-7183 Issued Date: DISTRICT SERVING LOCATION First Owner: Name of Business: Location of Business: County: Is Premise inside city limits? Mailing Address: (If different from premises address) Type of license(s): 42 SAN LUIS OBISPO WILLCUTT, GREGORY ALLEN WAVES WINE BAR 845 EM 3ARCADERO STE H MORRO BAY, CA 93442-2175 SAN LUIS OBISPO Yes Census Tract 0106.03 Transferor's license/name: Dropping Partner: Yes - No License Tvoe Transaction Tyne Fee Tyne Master Duo Date Fee 42 - On -Sal: Beer And Wmt ANNUAL FEE NA Y 0 02/25/14 $261.00 42.On-Sale Beer And Wmt ORIGINAL FEES NA Y 0 02/25/14 $300.00 *A FEDERAL FINGERPRINTS NA N 2 02/25/14 $48.00 NA STATE FINGERPRINTS NA N 2 02/25/14 $78.00 Total $687.00 Have you ever been convicted of a felony? No Have you ever violated any provisions of the Alcoholic Beverage Control Act, or regulations of the Department pertaining to the Act? No Explain any "Yes' answer to the above questions on an attachment which shall be deemed part of this application. Applicant agrees (a) that any manager employed in an on -sale licensed premises will have all the qualifications of a licensee, and (b) that he will not violate or cause or permit to be violated any of the provisions of the Alcoholic Beverage Control Act. STATE OF CALIFORNIA County of SAN LUIS OBISPO Date: February 25, 2014 Under penalty of perjury, each person whose signature appears below, certifies and says: (1) He is an applicant, or one of the applicants, or an executive officer of the applicant corporation, named in the foregoing application, duly authorized to make this application on its behalf; (2) that he has read the foregoing and knows the contents thereof and that each of the above statements therein made are we; (3) that no person other than the applicant or applicants has any direct or indirect interest in the applicant or applicant's business to be conducted under the license(s) for which this application is made, (4) that the transfer application or proposed transfer is not made to satisfy the payment of a loan or to fulfill an agreement entered into more than ninety (90) days preceding the day on which the transfer application is filed with the Department or to gain or establish a preference to or for any creditor or transferor or to defraud or injure any creditor of transferor, (5) that the transfer application may be withdrawn by either the applicant or the licensee with no resulting liability to the Department Effective July 1, 2012, Revenue and Taxation Code Section 7057, authorizes the State Board of Equalization and the Franchise Tax Board to share taxoayer information with Department of Alcoholic Beverage Control. The Department may suspend, revoke, and refuse to issue a license if the licensee's name appears in the 500 largest tax delinquencies list. (Business and Professions Code Section 494.5.) ApplicantName(s) , ApplicantSignature(s) GREGORY ALLEN KATHRYN EILEEN RESOLUTION NO.22-14 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 SECTIONS 22500 ET SEQ.) THE CITY COUNCIL City of Morro Bay, California R'HEREAS, the City 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: and WHEREAS, those conditions are more specifically identified in the Precise Plan (condition F1-F7) related to North Point; and ® WHEREAS, the owners of the real property within the proposed district (the "Owners") consented to the formation of the district pursuant to the Landscaping and Lighting Act of 1972 (Streets and Highways Code sections 22500 et seq.) (the "Act"), 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 accepted that Offer of Dedication; provided, that the cost of maintenance, thereof, would be bome by an assessment district as required by the Conditions of Approval of North Point; 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 X1II, C & D). NOW THEREFORE, BE IT RESOLVED by the City Council of the Citv of Morro Bay. California: The Citv Council of the City of Morro Bay hereby declares its intent to initiate the proceedings to levy and collect assessments pursuant to the Act. ® 2. The improvements to be subject to assessment for maintenance by the District shall include those enumerated in the conditions of approval of North Point and in Section 22525 of the Act, which were 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 North Point 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 13, 2014 City Council meeting and that date is set for a public hearing to review that report. 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 April. 2014 by the following vote: AYES: Irons, C. Johnson. N. Johnson, Leage, Smukler NOES: None ABSENT: None J ie L. Irons, Mayor ® ATTEST: XIJ�L4� J ie Boucher, City Clerk u MIBIT 'A' NORTH' POINT NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT ASSESSMENT DIAGRAM i NORTH POINT NATURAL AREA 20 1.10 ACr � bs 082 H J r ' �r �} HO AREA 1N OAEm t¢� ��� LEGEND CITY Of MORRO BAY ._ 1. = LOT NUMBER @ = COUNTY ASSESSORS PARCEL NUMBER r.s 19 'p 9. s �f q {t mil'. r s G �. 6. TRACT 2110 5. 21 55 AC- I ® RESOLUTION NO.21-14 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 SECTIONS 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 l0e) and Precise Plan (condition 2c) as required by City Ordinance: and WHEREAS, the owners of the real property within the proposed district (the "Owners') have consented in writing to the formation of the district pursuant to the Landscaping and Lighting Act of 1972 (Streets and Highways Code sections 22500 et seq.) (the "Act'), 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 dedicated in fee and in perpetuity, Lot 121 (Parcel 1) and Lot 122 of Tract 1996, and the City has accepted that Offer of Dedication: provided that the costs of maintenance thereof. are borne by an assessment district as required by the Conditions of Approval of the project: and WHEREAS, one hundred percent (100%) of the property owners approved formation of the district to assure conformance with the "Right to Vote on Taxes Act' (Proposition 218. California Constitution Act XI1I C & D). 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 Act. u ® 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 Section 22525 of the Act, which were installed by the developer as a condition of approval of Tract 1996; pursuant to the Final Improvement Plans for the Cloisters Project as approved by the City. c. The Assessment District is a District located in the City of Morro Bay. County of San Luis Obispo. A map showing the boundaries of the proposed District is attached as Exhibit A which is hereby incorporated herein. d. An Engineer's Report will be prepared for consideration at a public hearing to be held on May U. 2014. by the Citv Council. e. This District is called the "Cloisters Landscaping and Lighting Maintenance Assessment District." PASSED AND ADOPTED, by the City Council of the City of Morro Bay at a regular meeting thereof held on the 8 ° day of April, 2014 by the following vote: AYES: Irons, C. Johnson, N NOES: None ABSENT: None is ATTEST: JamiVBoucher, City Clerk ®. Johnson. Leaee. Smukler act J e L. Irons, Mayor n (0 /ye 00 m M � a O 6 S 001d Z y h � z \� Cl) � m z CS z A a • • ,� �c h �J o' V a r7 w / i! - V.2 C F< g IfA a . g / / / 9B['l9['lL£25t�90 RESOLUTION NO.20-14 ® RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, REESTABLISHING THE CHAMBER OF COMMERCE ECONOMIC AND BUSINESS DEVELOPMENT AGREEMENT AND WORK PLAN FOR FY 2013/14 THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City, recognizing the need for continued development of the economic base of the community is a municipal purpose, desires to provide for a coordinated effort to encourage, promote, and foster the economic development of the community: and WHEREAS. the Chamber has traditionally and actively promoted business development and economic growth within the City for the purpose of creating jobs and expanding the tar base, and as a result has obtained certain knowledge and expertise in this field of endeavor: and WHEREAS, it is the desire of the parties that the entities involved in furthering the economic well-being of the community maintain their historic effort in that regard while combining their efforts for such purposes; so that an effective economic development program for Morro Bay results: and WHEREAS, the parties agree that these goals can best be accomplished through the ® operation of a program by the Chamber under the terms and conditions outlined, making use of funds provided pursuant to this Agreement by the City to supplement the funds made available by other public and private investors in the community economic development partnership. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay. California, that in consideration of the covenants and conditions stated in the Agreement, and in consideration of the mutual benefits that accrue to each of the parties hereto, as well as to the public good of all the citizens of Morro Bay, the parties do hereby agree the Economic and Business Development Agreement and Fork Plan, a copy of which is attached to this Resolution, between the City and Morro Bay Chamber of Commerce is reestablished for the Fiscal Year 2013/14. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 8`11 day of April 2014, by the following vote: AYES: Irons. C. Johnson, N. Johnson. Leage_. Smukler NOES: None ABSENT: None J IE L. IRON'S_. Mayor ATTEST: ® T�K BOUCHER, City Clerk ® RESOLUTION NO.19-14 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA APPROVING THE PURCHASE OF RIGHT OF WAY AND AUTHORIZING THE MAYOR TO ACCEPT THE OFFER OF DEDICATION/GRANT OF EASEMENT (PUBLIC RIGHT OF WAY) FROM DYNEGY MORRO BAY LLC THE CITY COUNCIL City of Morro Bay, California WHEREAS, a project to design and construct a Multi -Use Trail and Bridge Project to connect both ends of the Embarcadero across Morro Creek has been approved by City Council; and WHEREAS, the optimal route for the Project passes through property owned by D}negy Morro Bay LLC; and WHEREAS, Dynegy Morro Bay LLC has agreed for a valuable consideration to grant the City easement across their property for the purposes of constructing the Project. ® NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay. California that the City Council hereby approves the purchase and authorizes the Mayor to accept on behalf of the City an offer of dedication/grant of easement for public right of way purposes from Dynegy Morro Bay LLC, through a parcel with the Assessor's Parcel Number of 066-461-002.legally described on Exhibit "A" and depicted on Exhibit `B". both attached. in a final form to be approved by the City Attomey. PASSED AND ADOPTED by the Citv Council of the City of Morro Bay at a regular meeting thereof held on the 11 m day of March. 2014 by the following vote: AYES: Irons, C. Johnson, N. Johnson, Leage, Smukler NOES: None ABSENT: None JA IE L. IRONS. Ma or ATTEST: JAK41E BOUCHER, City Clerk u RECEIVED JULIE RODEWALD SN San Luis Obispo County—Clerk/Recorder 5/08/2014 hA AY q O N 14 Recorded at the request of L 4 11:34 AM F+ Public ® RECORDING REQUESTED BY: and D D c 2014078088 Titles: 1 Pages: 13 R�EILi\lr1''106RDED MAIL TO: public services Engineer I IIIIII�IIIIII I IIIIII IIIII II I IIIII Taxes 0.09 CCity ity of MorroBay Public Services Others 0.00 955 Shasta Avenue PAID s0.00 Morro Bay, CA 93442 OFFER OF DEDICATION/DEED OF EASEMENT (for public right-of-way purpose) r1 U is For a valuable consideration, receipt of which is hereby acknowledged, DYNEGY MORRO BAY, LLC, a Delaware Limited Liability Company, ("Dynegy Morro Bay, LLC") the undersigned, being present fee title owner of record of the herein described parcel of land, does hereby make an irrevocable offer of dedication, and hereby grants, to the City of Morro Bay and its successors or assigns, an easement for public right-of-way, multi -purpose trail and/or utility purposes (collectively, the "Public Right -of -Way"), in, over, under and across the real property situated in the City of Morro Bay, County of San Luis Obispo, State of California, as legally described in Exhibit "A" and shown on Exhibit `B" attached hereto. Dynegy Morro Bay, LLC reserves to itself the ownership of any of its existing utilities located within the Public Right -of -Way and the nonexclusive right to construct, install, maintain, use, and replace under said Public Right -of -Way pipes, pipelines, and conduits for water, sewer, power, stormwater, gas, cable, data lines, telephone, and other utility infrastructure that crosses the Public Right -of -Way at an angle no less than thirty degrees and no more than one -hundred - fifty degrees (as measured from one side of the Public Right -of -Way). Dynegy Morro Bay LLC's options to install such underground infrastructure include the use of an augur boring machine or by excavation. Dynegy Morro Bay, LLC's reserved rights in this paragraph are appurtenant to the land described on Exhibit "C" attached hereto and incorporated herein, and shall benefit the land described on said Exhibit "C." Dynegy Morro Bay, LLC also reserves to itself, and its successors and assigns, (a) the nonexclusive right to construct, install, maintain, use, and replace (the "Work") under said Public All signatures shall be notarized - `Right-of-Wayits power transmission lines and other utility- nfrastructttfe that cross"the Public —' Right -of -Way at an angle no less than thirty degrees and no more than one -hundred -fifty degrees (as measured from one side of the Public Right -of -Way) (the "Facilities"), and (b) the right to cross the Public Right -of -Way using vehicles and construction equipment in conjunction with the Work. Those rights shall be an in gross easement that benefits Dynegy Morro Bay, LLC, and its successors and assigns, and includes the right to grant the privileges and rights herein reserved to others, and to assign said privileges and rights. In the event Dynegy Morro Bay, LLC (or its successors and assigns) exercises the foregoing right to do the Work relating to any of the Facilities, it shall, as promptly as reasonably practicable: (a) repair any damage to the Pubic Right -of -Way or any other portion of the City's property caused by such work; and (b) restore the Public -Right -of -Way or such City property, as applicable, to substantially the same condition it was in prior to commencement of such construction, installation, maintenance or replacement activities. It is understood and agreed the City of Morro Bay and its successors or assigns shall incur no liability with respect to such offer of dedication, and shall not assume any responsibility for the offered parcel of land until such offer has been accepted by appropriate action of the City of Morro Bay and once accepted will assume the responsibility that may arise as a result of holding or using the Public Right -of -Way. The provisions hereof shall insure to the benefit of and be binding upon heirs, successors, . assigns and personal representatives of the respective parties hereto. OFFER OF DEDICATION/DEED OF EASEMENT EXHIBIT A LEGAL DESCRIPTION That portion of land in the City of Morro Bay, County of San Luis Obispo, Stale of California described in Certificate of Compliance recorded In Documents Number 2000-057384 of Official Records in the Office of the County Recorder of said County lying westerly of the line described as following: Commencing at the northerly terminus of the course in the southwesterly boundary line of the 48.7 acre parcel of land described in the Deed to Pacific Gas and Elecldc Company recorded September 17, 1951, In Book 628 of Official Records at Page 342 In the Office of the County Recorder of said County, which course has a bearing of "North 53045' West and a distance of 884.13 feel"; thence, along said southwesterly boundary line and Its southeasterly prolongation South 52`03'18" East (record North 53 45' West per said Deed), a distance of 884.13 feet to a 1 inch iron pipe marking the southeasterly terminus of said course; thence, North 38125'31" West, a distance of 2679.57 feet to the True Point of Beginning (T.P.O.B.);thence, 1. South 7`00'49" East, a distance of 909.24 feet to the beginning of a curve concaved to the east . having a radius of 267.00 feet; thence, 2. Southerly and southeasterly along said curve through a central angle of 33"28'42% an arc distance of 156.01 feet, thence, 3. South 40°29'32" East, a distance of 51.39 feet to the beginning of a curve concaved to the southwest having a radius of 113.00 feet; thence, 4. Southeasterly and southerly along the arc of said curve through a central angle of 08°33'44', an arc.distance of 16.89 teal to the southerly line of the land described in said Certificates of Compliance. ® The above -described property contains 32,112 sq.ft. more or less, and is shown graphically In Exhibit 6 attached hereto and incorporated herein by reference. 3•/0- ® N1201111311040-MonaCreek-Alulb-UsrTfall-And-Bddga�SumWDravMgs\Trm'I Easemenl revised.doc 3110/2014 PARCEL : FROM THE COUNTY OF SAN LOIS OB15 TO PACIFIC CAS AND ELECTRIC RECORI IN BOOK 628 OF OFFICIAL RECORDS PACE J42, SEPTEMBER 17, 1951. \. \ \. \. 1 6W'44' \Yvan MORRO BAY 11100, \.�. . rs.6sl Wo DOG 2000-057J64�\ \ a CITY OF— MORRO BAY \ \ \ SCAIL".• I''=JAB' 'F, O17VT OF COMMENCEMENT L=156.01' rrmdesigngroup creating environments people enjoy® 3765 South Higuera St., Ste.102, San Luis Obispo, CA 93401 3-�D P: (805) 543.17941 R (805) 543-46091 eAwmmldesign.com A CaRo da CorpmUon I VedaWrlemary, Nch7ed ICI 1898I Jerry 6L'Nxd, PE 136895. LS 162761 Jdl Faber, LA F2844 EXHfBI.T.0 Parcel I The parcelof Ind shown as Lot I on that certain Lot Line Adjustment designated Case No. LL 0 1-97 recorded on February 26, 1998.in the Official Records of San Luis Obispo County (the 'Lot Une Adjustment") and more Wtia*ly described as frillows: All that. certain real property. situated in :Sectiort-25, Towriship 29 South, Range 10,Easi, Mount Diablo . Base and Meridian, in the City of Morro Bay, County of San Luis Obispo, State of California, described as follows: Commencing at point of intersection of.the northerly right -of --way line ofSurf Street (formerly known Scott 1. . gh as Ninth Street) with the centerline of Scott Street (formerly -known as 'S" Street), as said streets are delineated and so designated. on the Map of Atascaderd Beath, recorded July.2i 1917 in Book 2, Page 15 of Maps in the Office of the County Recorder ofsaid County, said.point also being the point of beginning:o _ f the.48.7 acre cre parcel ofland set forth in thequitclaim doed-from the County of San Luis Obispo to the Pnific.Gas and Electric Company, a corpomfloa (P. G. &:E.), recorded September 25, .1951, in the office of the County Recorder of said County in Book 628 of Official Records -at Page 342; thence along the centerline of Scott .Stre6t North 8°07'26n West 126.01feet t6,the northeasterly comer of that certain parcel of land described in the deed from P.G; & E. to the County of San Luis Obispo recorded July 28, 1953, in the office of the County Recorder of said County, iti Volume 720 of Official. Records at Pasaid_ 0 BEGINNING; thence leaving said Page 69, point also being the TRUE POM OF BF centerline of Scott Street, along the.northerly line of'the land described in last said deed South 88919'28" West 26938 feet ,to apoint on the centerline of Mesa Drive as said Drivt be ing so delineated on - said Map, said. Point also being the northwesterly corner of the lands described in last said deed, and being a point on the boundary line of said 4.8.7 -acre parcel; :thence along 'said boundary line South 87-15-33- West 192.67 feet; thence South 20*4810" East 122.10 feet to apoinvon thenorthirlyrigb17 of -way line of said Surf Street and the southerly boundary line of said 48.7 acre parcel; thence at 9119- said noriherly right-of-way line and said southerly boundary line South 89*11':34" W-est362.73fect to the southeasterly terminus oftliat certaih:courseln the.sou-thwesterl I y i bounda ry line of said 48.7 a I cre parcel, said course having a bearing and distance of 'North 53*45'West 8 ' 84.13 feet" (North 53052?05" West 884.13 feet for the purposes of this description); said point. alsob6q'the most easterly'borner of the Parcel of Land described In the de6d-ffom the County of San Luis Obispo to P. G: & E,, recorded January 26. 1 - 956,in theoffice, -of the county R&ordeiof - said county in Volume 833 of Official Records at Page 525;;thence at right angles to Lwt'said.dotirse South .360,0.7'5.5West 190.66, feet to. a point paihe-southwest6riyboundary lir!e.clf Tidelands Survey No. 14, rebottled,iriBook 4atpage 11 of Record ofSdveys in-tEd office -of the SanlAiis Obispo County Recoraeo office; thence0ong said soifthwes.t.erly. boundary -North 59c39,45" West2ol.03 feet; -thence leaving said southwesterly boandary North 36007'550 East 210,96 feetto a point on the'southwesterly boundary line of said 48.7 acre parcel, said point being distant North 53*52'05" West 200.00 feet along 'said boundary r= from said southeasterly terminus of the southwesterly boundary line of the 48.7 acre parcel; . thence along .the southwesterly boundary of said 48.7 acre parcel North 53*52'05" West 684.13. fat; thence at.a tight angle South 36*07'55West 36,55 feet to a pbint on the southwesterly boundary, line of the parcel of land quitclaimed to. the County of San Luis Obispo by deed recorded August 1, 1949 in Bc;ok 530 at 0 EXHIBIT C Pagclf4 of Official Records of said County; thence along last said southwesterly boundary North 7503T05" West 215.33 feet; thence North 36'07'55" East 449.34 feet; thence North 53052'05" West 286,04 feet;.thence North 30"58'19" West 175.66 feet thence North 21°19'19" West 543:47 feet to apoint on the centerline. of 79th Street, as said 79th Street is shown on said Map of Atascadero Beach; thence leaving the boundary of said 48.7 acre parcel, along the centerline of said 79th'Street South 81 "03'S0"West 4189 feet to a point of intersectionwith the centerline of `C"'Street, as said center►ine is so delineated.on.said Map; thence along the t N centerline of said "C" Streeorth 8956'10" West 1,379.64.feet to a point of intersection with the.centediue of 70th Street, said 70th Street being so delineated on said Map, thence continuing along said 70th Street North 81'03'50" East736.36 feet to the southwesterly corner of Lot 27 of Block 28D of said Map, thence along the westerly line of Lot 27 and Lot 20 of said Block 28D North 8`56'10" West 149.96 feet to a point on the centerline of 69th Street, said 69th Street being so delineated on said said point also tieing the northwesterly corner of Lot 20; thence along said centerline of 69th Street North 81"03'50" East 175.26 feet to a point of intersection with the centtrline of ")" Street, said 'U" Street being so delineated on said Map; thence along said centerline of "V Street South 8056'10".East 10.00 feet to a'point of intersection with the. westerly prolongation of the northerly line of Lot 6 of Block 27 of said:Map;. thence along said westerly prolongation and the northerly line of.Lot 6 and the easterly prolongation, thereof North 81003'50"East 750.98 feet to -the northwesterly corner of the parcel of land described in the deed from. P. G. & E. to the State of California recorded October 7; 1960 in the office of the County Recorder of said County in Volume-:1687.of Official Records at Page 277, said northwesterly corner also tieing a point on the westerly right-of-wayline of California State Highway 1 as shown on the California Department of Transportation Right of: Way Map Sheets designated is postmile 29.6 and postmile 30.1 (sheets'27 and 28 of 33) on file in the office of the California Departmeut of Transportation District 5 Right -of -Way Engineering Department in the City of San Luis Obispo, State of California; (hence along said westerly rigbt;of--way line South 20'06'96" East556.31 feet; thence continuing along said westerly right-of-way line South 23032'350 East>307.51 feet to the beginning of a non -tangent curve concave easterly having a -radius of.4080.00 feet, to which a radial line bears South 67"54'00" West; thence continuing along said westerly right.of--way line southeasterly along said curve through a_ central angle of 70 10'01" an arc distance *of 510.35 feet; thence continuing along said westerly right -of --way line South 27012'08" East 628.32 feet- thence continuing along said westerly right-of-way line South 44010'05" East 44.29 feet to a point intersection with the easterly'boundary line of the parcel of land described in the deed from the State of .California to P. G, & E. recorded October 7, 1960, in the office of the County Recorder,of said County; in Volume 1087 of Official Recordsat Page 273; thence leaving said westerly right-of-wayline of Highway. I along last said easterly boundary line South 17619'03" Fast 136;90 feet; thence continuing along said easterly boundary line.South 45'31'03" East 508;65 feet; thence South 34007'03" East 181.13 feetto,the most easterly corner of Lot 39 of Block 31 of said Map; thence along the southeasterly line of said Lot 39., .last said line also being the northeasterly prolongation of the centerline of Scott Street 'South 55°57'03" West 289.42 feet to the beginning of a tangent curve concave southeasterly Laving a radius of 175.72 _feet; thence continuing along said centerline of Scott Street southwesterly along said curve through a central angle of 39018'l0" an arc distance of 120.54 feet; thence continuing along said centerline South 16°38'53" West 0.26 feet to the beginning of a tangent .curve concave northwesterly having a radius of 404.66 feet; thence continuing. along said centerline southwesterly alorig said curve througb a central angle of 43'd 6'54" an arc distanceof 305.68 feet; thence continuing along said..centerline South 59055'47" West 15;07 feet to the beginning of a tangent curve concave southeasterly haling a radius of 95.71 feet; thence continuing along said 0 . EXHIBIT C -rqRtqline southwesterly and southerly along said curve through a central angle. of 68903'13" an arc distance of 113.68 feet to the TICV&POINT OF BEGINNING. ExcEPTVGTiIEREFROM that portion, described as follows: - Commencing at the most easterly coiner of Lot 39 of.131ock 3.1 of said Map of Amscadero.,Beach, said comer also being a point on theeasterly boundary- Ime of said deed recorded Octobef 7,1960; thence along 'said easterly boundary line North 34'07'03- West 18,1.13 66ethencontinuing along said easterly boundary . Jim North 45*31"63" West 300.40 feet to the TR thence POINT OF BEGINNING; thenceleavirgsaid easterly boundary line North VVS6;, West51' feet-, thence North 80*32'04" West 49.03 . ,f=4 thence North 72*44'42" West 3.529, fee;thence South - 89*09'33' West.47.97 feet; thence South UeWkiiV- atc& feet;. thence -South West 49..82 *L; "thence atright angles to thai:ceiYarn coarsen xrwem A&I south -es- . w Wl yUun­Aary Uqe of,said 48�7 acre par6el said course. id having a bearing and, distanco of -Northbf 53P451- West 894.13 feet" (North 51*51'65" West 894,.13 Meet for the purp Aes of� this description); South 3.6*OT 5" West 4 73.15'fee.t;,the6:6 at d ght angles North 53'52'05" *cst 148.16 feet; thencz it right angles North 36*07'55" East 75.05 feet; thpare at tight angles North 53*52?05" West 937;90 feet; thence it right angles South 360&13East 55". West 97.53 angles North 53'52'65'West 176.60 feet;.ftnce North 19035'2 feet;.thendc at right an t 254.47 '" fee; thence.North 8*'25'31" Fast 80.98 feet., theumWorth 19*47'04" Eas(209.64 f6et;. thence at right ang les to said.southwesterly boundary Lim, North 36*07'55" East 139.02 feet; thence North 759191Y East 421.36 fedi; thdr1co South 85.6,11'10' East 211.06 feet to the beginning of a fion-tangent curve concave northeasterly . having aiWng a radius of 4080.00 feet, to. which a radial line bears South 62.051'50w West, said. beginning point Ww being oil- said westerly right-of-way line of said California- -State Highway 1; thence continuing along -said westerly right-bf-way line southeasterly along, said curve ffi=gb a central angle of 2*07'51" an arc distance of 151.74 feet, thence. continuing along said westerly right -of. -way line -South Zrivor fmt, 628.31 feet; thence continuing• along said westerly right=of-way Line South 44° 10;OV East 44.29 feet to a point of intersection wi6the easterly boundary line of the,parcel,of land described in the.deed dated October 7,A96o., thence leaving said westerly right-.bf-way.1mie.of ffighv�iay-1 . alpWla:�,said.e,a.sterly-boundk.y line South 17'19'(13, East 136.90 feet-, th eace W id 66ffily houidary li& South 450M'63" Eftgt 208-. feet � to- . -ffie.TRUE I C041,1114,13.9 , long SM POINT'OF'BEGINNING. Parcel (after exception) containing 1.07..35 acres more or less. E�l �11 �1 M PARCEL 2; APN: 066-461-015 A Parcel of land in the County of San LuIs Obispo, State of Ca.IIfornia', described as follows: - Beginning at the intersection of the center lines of "C" Street and 79th Street, as:. shown on the map of Atascadero Beach, recorded in Book, 2, Page 15 of Maps, in the. Off ice of the County Recorder of said County; thence along the Westerly prolongation of the center Ilne of said 79th Street,' South 81' 12' West, 200 `feet to. the. Easterly IIne oftheland descr.i.bed in Parcel 4 of the deed to the County. of San Luls Obispo, recoeded.June 28, 1962 In.Book 1190, Page 29 of Official Records, In the. Office of the County Recorder of said County; thence, along the boundary of the land described in Parcel 4, as follows: ' . South 8° W East, 18.02 feet, Southerly along a tangent curve, concave Northeasterly, having a'radius of 550,0,0 feet, through a central angle of 44° '57' 06", an arc distance of 431,-49 feet and tangent to said curve, South 53'-45' East, 205.34-feet to the. -Northwesterly Ilne of the land described in the deed to the County of San Luis Obispo recorded August 26, 1933 in Book 140, Page 58of Official Records; thence along said Northwesterly line, North 59' oa' East, 56.64 feet to the most Northerly corner of the land described in said last mentioned deed'to the County of San Luis Obispo; thence North 21° 13' West, 543.47 feet to a. point on the center line of said 79th Street, that Is distant along Bald. center Ilne, South B1' 12' West', 868.56 feet from the,.most Northerly corner of Lot 1 In Block 31 of said Atascadero. Beach; thence along said center line of 79th Street; South B1° 12'West, 41.44 feet to the Point of Beginning.. " Theabove described land Is a portion of the land shown on map filed In Book, 2; Page 39 of Record of Surveys., in the Office of the County Recorder of said County. EXCEPTING therefrom that portion of said land Included within the lines of 79th Street and " V Street as shown on said map of Atascadero Beach. ALSO EXCEPTING therefrom all that land described as - Parcel 4 of Instrument recorded June 28, 1662 in,Book 1190, Page 22 of Official Records. ALSO EXCEPTINGtherefrom ail that land conveyed to Pacific Gas & Electric Company by deed recorded -September 25, 1951 In Book 628, Page 342 of Official Records. Said land Is. described on certificate of compliance recorded October 4,. 2000 as document number 57387 of Official Records. - EXHIBIT C Parcel APN:066-461-002 That portion of the Rancho Moro y Cayucos, in the City of Morro Bay, County of ® San Luis Obispo, State of California, described as Parcel 4 of the.deed to the County of San Luis Obispo recorded June 29, 19U in Book 1190,. Page 22 of Official Records, In the Office of the County Recorder of said County. EXCEPTING therefrom that portion of said land lying Southeasterly of the Northwesterly line of the land described in the deed to the. County of San Luis Obispo recorded August 26, 1933 in Book 140,Page 58 of Official Records; in the Office of the County Recorder of said County. ALSO EXCEPTING therefrom those. portions of said land lying Southwesterly and Southerly of the following described line: Beginning :at the intersection of the center lines of "C" Street and 79th Street, as shown on the map of Atascadero Beach, recorded in Book 2, Page 15 of Maps, ,In the Office of the County Recorder of said County; thence along the Westerly prolongation of the center line of said 79th Street, South'82' 49' 06" Nest, 513.37 feet to the -Northerly terminus of the course shown as "South 26' 23' East, 1102.28 feet" on,the-mapfiled in Book 2, Page 39 of Record of Surveys, in the Office of the County Recorder of said County; thence along said course, South 240 42' 13" East, 173.90 feet to the True Point. of Beginning, being on a non -tangent curve, concave Northeasterly, having a radius of 700 feet, a radial line of said curve'to said point bears South 56° 33' 06" West; thence Southeasterly along said curve through a central angle of 47" 51' 42", ar arc distance of 584.74 feet to the beginning of a reverse curve, 'concave Southerly, having .a radius of 600 feet; thence Easterly along said reverse curve,through a central angle of-9' 58' 10", an arc distance of 104.40 feettothe Northwesterly line -of theland-described in the deed to the County of San Luis Obispo recorded August 26; 1933 in Book_ 140, Page 58 of Official Records, in the Office of the County Recorder of said isCounty. ALSO EXCEPTING therefrom all of the land described as Parcels 1, 2 and 3 of Description,D in instrument recorded August 1_, 1962 in Book 1194,'Page 584 of Of Records. Said property is also shown as Parcel 1 on Parcel Map recorded May 4, 1971 in Book 6, Page 4 of Parcel Maps. Said land is described in certificate of compliance recorded October 4, 2000 as document number S7384 of Official Records. ® IN WITNESS WHEREOF, these presents have executed this instrument this a 8 day of April 2014. DYNEGY MORRO BAY, LLC, a Delaware Limited Liability Company By: qV \"-k, k1 DYNEGY MORRO BAY, LLC, a Delaware Limited Liability Company By: 11 OFFER OF DEDICATION/DEED OF EASEMENT r� STATE OF N eo -y o 0K COUNTY OF 0\' r This instrument was acknowledged before me on the aF5 day of April, 2014, by Martin Daley, Vice President of Dynegy Morro Bay. LLC. iVtary Public LAUREN M. COLLINS Notary Public, State of New York Reg. #t01C06152810 Qualified in Ulster un Seal Commission Expires a i STATE OF T e y *S COUNTY OF /4 This instrument was acknowledged before me on the 515�day of April; 2014, by ALI U-S COS( of Dynegy Morro Bay, LLC. Notary Public ® S 1+ • t•o,^ KATHERINE D. FISHER Notary Public STATE OF TEXAS Cams .No�eMat&2016 0 CERTIFICATE OF ACCEPTANCE This is to certiffi, the interest in real property conveyed by the Offer of Dedication/Deed of Easement dated April _, 2014 from Dynegy Morro Bay, LLC to City of Morro Bay, a municipal corporation, is hereby accepted by order of the City Council on March 11, 2014, pursuant to authority conferred by resolution of the City Council adopted on March 14, 2014, and the grantee consents to recordation thereof by its duly authorized officer. Dated: April. 201 i CITY OF MORRO BAY MA-1 51zo�� �O ie L. Irons, Mayor ATTEST: Jamie Boucher, City Clerk OFFER OF DEDICATION/DEED OF EASEME\'T CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT State of California l } County of San Luis Obispo JJJ ss. On Ma 5 20I before me, Dana Swanson Notary Public (Date) personally appeared �aM' r L L r o na (Signer/s) who proved to me on the basis of satisfactory, evidence to be the person(o whose name(o is/ayf subscribed to the within instrument and acknowledged to me that he/sl/e/thay executed the same in his/hq'f/thjir authorized capacity(ie/), and that by his/Ilkr/t4ir signature(g) on the instrument the person(o, or the entity upon behalf of which the person() 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) My commission expires on 12/31/14. DANA SWANSON COMM. #1919584 m� LOBISP a Notary OaNtorNe SAN LUtS O81&PO COUNiY Comm DEC.31.2014 This area for official notarial seal. OPTIONAL 77tough the it jormalion below, is not required by Imv, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this fonn to cutother document. Description of Attached Document Title of Type of Document: Document Date- Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer Signer's Name: ❑ Individual ❑ Corporate Officer — Title(s): ❑ Partner: ❑ Limited ff General ❑ Attomey-in-Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer Is Representing: Number of pages Top of thumb here RESOLUTION NO. 18-14 RESOLUTION OF THE CITY COUNCIL OF THE ® CITY OF MORRO BAY, CALIFORNIA. APPROVING THE MORRO BAY PARTNERSHIP POLICY E 2 THE CITY COUNCIL City of Morro Bay, California WHEREAS; the City of Morro Bay desires to partner with private, non-profit, or other governmental entities for the development, design, construction and operation of possibly partnered recreational facilities and/or programs that may occur on City property; and WHEREAS, partnerships can accomplish tasks with limited resources, respond to compelling issues, encourage cooperative interaction and conflict resolution, involve outside interests, and serve as an education and outreach tool: and WHEREAS, said policy will facilitate a mutually beneficial collaboration for all proposing partners including the City, and particularly for the citizens of Morro Bay; and WHEREAS, the Morro Bay Recreation and Parks Department is interested in promoting - partnerships which involve cooperation among many partners, bringing resources together to accomplish goals in a synergistic manner: and WHEREAS, said partnering procedures established by the City would provide essential background information regarding the needs and contributions of potential partners: and WHEREAS, at their regular meeting on September 19, 2013 the Recreation and Parks Commission voted unanimously to support the Partnership Policy and recommended City Council's approval. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Morro Bay, California, hereby approves and adopts the Partnership Policy and the implementing procedures. PASSED AND ADOPTED by the City Council of the City of Morro Bay, at a regular meeting thereof held on the 11 m day of March 2014, on the following vote: AYES: Irons. C. Johnson, N NOES: None ABSENT: None ATTEST: ln�� JANV BOUCHER, City Clerk Johnson, Leage, Smukler J IE L. IRONS. Mayor r� u City of Morro Bay Recreation and Parks Department Partnership Policy And Proposal Format Page 1 City of Morro Bay Recreation and Parks Department Partnership Policy and Proposal Format Table of Contents Part One Lau I. The Morro Bay Recreation and Parks Department Partnership Policy A. Purpose 3 B. Background and Assumptions 4 C. Partnership Definition 5 D. Possible Types of Partners 6 E. Sponsorships 7 F. Limited Decision -Making Partnerships 7 G. Benefits of Partnerships 8 Il. The Partnering Process 9 I1I. The Partnership Evaluation Process A. Mission and Goals 11 B. Other Considerations 11 C. Selection Criteria 13 D. Additional Assistance 14 Part Two The "Proposed Partnership Outline Format' 15 Guiding Questions 16 E Page 2 ® I. Morro Bay Recreation and Parks Department Partnership Policy A. Purpose This policy is designed to guide the process for Morro Bay Recreation and Parks Department in their desire to partner with private, non-profit, or other governmental entities for the development, design, construction and operation of possibly partnered recreational facilities and/or programs that may occur on City property. Morro Bay Recreation and Parks Department would like to identify private, non-profit, and governmental entities that are interested in proposing to partner with the City to develop recreational facilities and/or programs. A major component in exploring any potential partnership will be to identify additional collaborating partners that may help provide a synergistic working relationship in terms of resources, community contributions; knowledge, and political sensitivity. These partnerships should be mutually beneficial for all proposing partners including the City, and particularly beneficial for the citizens of the community. This policy document is designed to: • Provide essential background information. • Provide parameters for gathering information regarding the needs and contributions of ® potential partners, and • Identify how the partnerships will benefit the Morro Bay Recreation and Parks Department and the community. Part TNvo: The "Proposed Partnership Outline Format", provides a format that is intended to help guide Proposing Partners in creating a proposal for review by Morro Bay Recreation and Parks Department staff. B. Background and Assumptions Partnerships are being used across the nation by governmental agencies in order to utilize additional resources for their community's benefit. Examples of partnerships abound, and encompass a broad spectrum of agreements and implementation. The most commonly described partnership is between a public and a private entity, but partnerships also occur between public entities and non-profit organizations and/or other governmental agencies. Page 3 In order for partnerships to be successful, research has shown that the following elements should be in place prior to partnership procurement: • There must be support for the concept and process of partnering from the very highest organizational level — i.e.: the City Council, Recreation and Parks Commission, and/or department head. • The most successful agencies have high-ranking officials that believe that they owe it to their citizens to explore partnering opportunities whenever presented, those communities both solicit partners and consider partnering requests brought to them. • It is very important to have a Partnership Policy in place before partner procurement begins. This allows the agency to be proactive rather than reactive when presented with a partnership opportunity. It also sets a "level playing field" for all potential partners, so that they can know and understand in advance the parameters and selection criteria for a proposed partnership. • A partnership policy and process should set development priorities and incorporate multiple points for go/no-go. decisions. • The partnership creation process should be a public process, with both Partners and the Partnering Agency well aware in advance of the upcoming steps. C. Partnership Definition For purposes of this document and policy, a Proposed Partnership is defined as: "An identified idea or concept involving Morro Bay Recreation and Parks Department and for- profit, non-profit, and/or governmental entities, outlining the application of combined resources to develop facilities, programs, and/or amenities for the City and its citizens." A partnership is a cooperative venture between two or more parties with a common goal, who combine complementary resources to establish a mutual direction or complete a mutually beneficial project. Partnerships can be facility -based or program -specific. The main goal for Morro Bay Recreation and Parks Department partnerships is enhancing public offerings to meet the mission and goals of the City. Morro Bay Recreation and Parks Department is interested in promoting partnerships which involve cooperation among many partners, bringing resources together to accomplish goals in a synergistic manner. Proposals that incorporate such collaborative efforts will receive priority status. Partnerships can accomplish tasks with limited resources, respond to compelling issues, encourage cooperative interaction and conflict resolution, involve outside interests, and serve as an education and outreach tool. Partnerships broaden ownership in various projects and increase public support for community recreation goals. Partners often have flexibility to obtain and invest resources/dollars on products or activities where municipal government may be limited. Page 4 Partnerships can take the form of (1) cash gifts and donor programs, (2) improved access to alternative funding, (3) property investments, (4) charitable trust funds, (5) labor, (6) materials. ® (7) equipment, (8) sponsorships, (9) technical skills and/or management skills, and other forms of value. The effective use of volunteers also can figure significantly into developing partnerships. Some partnerships involve active decision making; while in others; certain partners take a more passive role. The following schematic shows the types of possible partnerships discussed in this Policy: El Active Parfnersh ins :.- Management Agreements Program Partnerships. Facility Leases --Intergovernmental `Agreements (IGAs) JCIIIYLIl111lCLL =- ' =-Decigion Making Partnerships I. Sponsorships = D. Possible Types of Active Partnerships a..wulcu ucumuu-_� Making -Partnerships Grant Programs _ - Donor Programs .Volunteer Programs Morro Bay Recreation and Parks Department is interested in promoting collaborative partnerships among multiple community organizations. Types of agreements for Proposed "Active" Partnerships may include leases, contracts, sponsorship agreements, marketing agreements, management agreements, joint -use agreements; inter -governmental agreements, or a combination of these. An innovative and mutually beneficial partnership that does not fit into any of the follo«ing categories may also be considered. Proposed partnerships will be considered for facility; service, operations, and/or program development including associated needs, such as parking, paving, fencing, drainage systems, signage, outdoor restrooms. lighting, utilitv infrastructure. etc. E. Sponsorships Morro Bay Recreation and Parks Department is interested in actively procuring sponsorships for facilities and programs as one type of beneficial partnership. Please see the Morro Bay Recreation and Parks Department Sponsorship Policy for more information. Page 5 F. Limited -Decision Making Partnerships: Donor, Volunteer, and Granting Programs While this policy document focuses on the parameters for more active types of partnerships, the City is interested in, and willing to discuss, a proposal for any of these types of partnerships, and may create specific plans for such in the future. G. Benefits of Partnerships with Morro Bay Recreation and Parks Department The City expects that any Proposed Partnership will have benefits for all involved parties. Some general expected benefits are: Benefits for the City and the Community: • Merging of resources to create a higher level of service and facility availability for community members. • Making alternative funding sources available for public community amenities. • Tapping into the dynamic and entrepreneurial traits of private industry. • Delivering services and facilities more efficiently by allowing for collaborative business solutions to public organizational challenges. • Meeting the needs of specific groups of users through the availability of land ifor development and community use. Benefrts for the Partners: • Land and/or facility availability at a subsidized level for specific facility and/or program needs. • Sharing of the risk with an established stable governmental entity. • Becoming part of a larger network of support for management and promotion of facilities and programs. • Availability of professional City recreation and planning experts to maximize the facilities • and programs that may result • Availability of City staff facilitation to help streamline the planning and operational efforts. El Page 6 ® II. The Partnering Process (Checklist) The steps for the creation of a partnership with the Nforro Bay Recreation and Parks Department are as follows: ❑ A. Morro Bay Recreation and Parks Department will create a public notification process that will help inform any and all interested partners of the availability of partnerships with the City. This will be done through notification in area newspapers, City's website, Department's distribution list, listing marketing efforts, or through any other notification method that is applicable and feasible. ❑ B. The proposing partner takes the first step to propose partnering with the City. To help in reviewing both the partnerships proposed, and the project to be developed in partnership, the City asks for a Preliminary Proposal according to a specific format as outlined in Part Two 0 Proposed Partnership Outline Format. ❑ C. If initial review of a Preliminary Proposal yields interest and appears to be mutually beneficial based on the City Mission and Goals; and the Selection Criteria, a City staff or appointed representative will be assigned to work with potential partners. ❑ D. The City representative is available to answer questions related to the creation of an initial ® proposal. and after initial interest has been indicated, will work with the proposing partner to create a checklist of what actions need to take place next. Each project will have distinctive planning, design, review and support issues. The City representative will facilitate the process of determining how the partnership will address these issues. This representative can also facilitate approvals and input from any involved City departments, providing guidance for the partners as to necessary steps. ❑ E. An additional focus at this point will be determining whether this project is appropriate for additional collaborative partnering, and whether this project should prompt the City to seek a Request for Proposal (RFP) from competing/ collaborating organizations. Request for Proposal (RFP) Trigger: In order to reduce concerns of unfair private competition, if a proposed project involves partnering with a private "for -profit" entity and a dollar amount greater than $5,000, and the City has not already undergone a public process for solicitation of that particular type of partnership. the City will request Partnership Proposals from other interested private entities for identical and/or complementary facilities, programs or services. A selection of appropriate partners will be part of the process. ❑ F. For some projects, a Formal Proposal from the partners for their desired development project will need to be presented for the City's official development review processes and approvals. The project may require approval by the Legal, Planning, Fire and Safety, isFinance and/or other City Departments, Recreation and Parks Commission, Planning Commission, The City Council, and/or the City Manager's Office, depending on project Page 7 complexity and applicable City Charter provisions, ordinances or regulations. If these reviews are necessary, provision to reimburse the City for its costs incurred in having a representative facilitate the partnered project's passage through Development Review should be included in the partnership proposal. ❑ G. Depending on project complexity and anticipated benefits, responsibilities for all action points are negotiable, within the framework established by law, to assure the most efficient and mutually beneficial outcome. Some projects may require that all technical and professional expertise and staff resources come from outside the City's staff, while some projects may proceed most efficiently if the City contributes staff resources to the partnership. ❑ H. The partnership must cover the .costs the partnership incurs, regardless of how the partnered project is staffed, and reflect those costs in its project proposal and budget. The proposal for the partnered project should also discuss how staffing and expertise will be provided, and what documents will be produced. If City staff resources are to be used by the partnership, those costs should be allocated to the partnered project and charged to it. ❑ I. Specific Partnership Agreements appropriate to the project will be drafted jointly. There is no specifically prescribed format for Partnership Agreements, which may take any of several forms depending on what will accomplish the desired relationships among partners. The agreements may be in the form of: • Lease Agreements • Management and/or Operating Agreements • Maintenance Agreements •. Intergovernmental Agreements (IGAs) • Or a combination of these and/or other appropriate agreements Proposed partnership agreement might include oversight of the development of the partnership, concept plans and project master plans, environmental assessments, architectural designs, development and design review, project management, and construction documents, inspections contracting, monitoring, etc. Provision to fund the costs and for reimbursing the City for its costs incurred in creating the partnership, facilitating the project's passage through the Development Review Process, and completing the required documents should be considered. ❑ J. If all is approved, the Partnership begins. The City is committed to upholding its responsibilities to Partners from the initiation through the continuation of a partnership. Evaluation will be an integral component of all Partnerships. The agreements should outline who is responsible for evaluation; the types of measures used, and detail what will occur should the evaluations reveal Partners are not meeting their Partnership obligations. 40 Page 8 ® - III. The Partnership Evaluation Process E A. Mission Statements and Goals All partnerships with Morro Bay Recreation and Parks Department should be in accord.with the City's and the Recreation and Parks Department's Mission and Goals to indicate how a proposed partnership for that Department would be preliminarily evaluated: - OFITSFIFL41 1. We are committed to providing quality recreational services; facilities, and parks necessary to live a healthy and enriched life. We provide these services to our customers in a responsive courteous manner. Our programs strive to build wellness in people; families, and the community. "Creating Community through People; Parks and Programs' • Help to build strong communities and neighborhoods • Promote environmental stewardship through recycling and education • Provide beautiful; safe; and functional parks and facilities that improve the lives of all citizens • Preserve cultural and historic features within the City's parks and recreation systems • Provide a work environment for the Recreation & Parks Department staff that encourages initiative, professional development, high morale, productivity, teamwork, innovation, and excellence in management B. Other Considerations 1. Costs for the Proposal Approval Process For most proposed partnerships, there will be considerable staff time spent on the review and approval process once a project passes the initial review stage. This time includes discussions with Proposing Partners, exploration of synergistic partnering opportunities, possible RFP processes. facilitation of the approval process, and assistance in writing and negotiating agreements. contracting. etc. There may also be costs for construction and planning documents, design work, and related needs and development review processes mandated by City ordinances. Successful Partnerships will take these costs into account and may plan for City Recovery of some or all of these costs within the proposal framework. Some of these costs could be ® considered as construction expenses, reimbursed through a negotiated agreement once operations begin, or covered through some other creative means. Page 9 2. Land Use and/or Site Improvements Some proposed partnerships may include facility and land use. Necessary site improvements cannot be automatically assumed. Costs and responsibility for these improvements should be considered in any Proposal. Some of the general and usual needs for public facilities that may not be included as City contributions and may need to be negotiated for a project include: • Any facilities or non-existent infrastructure construction • Roads or street improvements • Maintenance to specified standards • Staffing • Parking • Lighting • Outdoor restrooms • Water fountains • Complementary uses of the site • Utility improvements • Custodial • Trash removal 3. Need The nature of provision of public services determines that certain activities will have a higher need than others. Some activities serve a relatively small number of users and have a high facility cost. Others serve a large number of users and are widely available from the private sector because they are profitable. The determination of need for facilities and programs is an ongoing discussion in public provision of programs and amenities. The project will be evaluated based on how the project fulfills a public need. 4. Funding Only when a Partnership Proposal demonstrates high unmet needs and high benefits for City citizens, will the City consider contributing resources to a project. The City recommends that Proposing Partners consider sources of potential funding. The more successful partnerships will . have funding secured in advance. In most cases, Proposing Partners should consider funding and cash flow for initial capital development, staffing, and ongoing operation and maintenance. The details of approved and pending funding sources should be clearly identified in a proposal. For many partners, especially small private user groups, non-profit groups, and governmental agencies, cash resources may be a limiting factor in the proposal. It may be a necessity for partners to utilize alternative funding sources for resources to complete a proposed project. Obtaining alternative funding often demands creativity, ingenuity, and persistence, but many forms of funding are available. Alternative funding can come from many sources, e.g. Sponsorships, Grants, Donor Programs, and intemet searches can help with foundation and grant resources. Developing a solid leadership team for a partnering organization will help find funding sources. In -kind contributions can, in some cases, add additional funding. L4 a 11 E Page 10 All plans for using alternative funding should be clearly identified. The City's Sponsorship ® Policy, and partnered projects will be expected to adhere to this Policy. This includes the necessity of having an Approved Sponsorship Plan -in place prior to procurement of sponsorships for a Partnered Project. C. Selection Criteria In assessing a partnership opportunity to provide facilities and services, the City will consider (as appropriate) the following criteria. The Proposed Partnership Outline Format in Part Two provides a structure to use in creating a proposal. City staff and representatives will make an evaluation by attempting to answer each of the following Guiding Questions: • How does the project align with the City and affected Department's Mission Statement and Goals? • How does the proposed facility fit into the current City and the affected Department's Master Plan? • How does the facility/program meet the needs of City residents? • How will the project generate more revenue and/or less cost per participant than the City can provide with its own staff or facilities? • What are the alternatives that currently exist, or have been considered, to serve the users identified in this project? • How much of the existing need is now being met within the City borders and within adjacent cities? ® What is the number and demographic profile of participants who will be served? How can the proposing partner assure the City of the long-term stability of the proposed partnership, both for operations and for maintenance standards? • How will the partnered project meet Americans with Disabilities Act and EEOC requirements? • How will the organization offer programs at reasonable and competitive costs for participants • What are the overall benefits for both the City and the Proposing Partners? C Page 11 Part Two Morro Bay Recreation and Parks Proposed Partnership Outline Format Please provide as much information as possible in the following outline form. I. Description of Proposing Organization: • Name of Organization Purpose of Organization • Years in Existence Services Provided • Contact Name, Mailing Address, • Member/User/Customer Profiles Physical Address, Phone, Fax, • Accomplishments E-mail • Legal Status II. Decision Making Authoritv Who is authorized to negotiate.on behalf of the organization? Who or what group . (i.e. Council/Commission/Board) is the final decision maker and can authorize the funding commitment? What is the timeframe for decision making? Summary of Proposal ( 100 words or less) What is being proposed in terms of capital development, and program needs? III. Benefits to the Partnering Organization Why is your organization interested in partnering with the Morro Bay Recreation and Parks Department? Please individually list and discuss the benefits (monetary and non -monetary) for your organization IV. Benefits to the Morro Bay Recreation and Parks Department Please individually list and discuss the benefits (monetary and non -monetary) for the Morro Bay Recreation and Parks Department and residents of the City. V. Details (as currently known) The following page lists a series of Guiding Questions to help you address details that can help outline the benefits of a possible partnership. Please try to answer as many as possible.with currently known information. Please include what your organization proposes to provide and what is requested of Morro Bay Recreation and Parks Department. Please include (as known) initial plans for your concept, operations, projected costs and revenues, staffing, and/or any scheduling or maintenance needs, etc. u Page 12 Guiding Questions Meeting the Needs of our Community: • In your experience; how does the project align with Recreation & Parks Department goals? • How does the proposed program or facility meet a need for City residents? • Who will be the users? What is the projected number and profile of participants who will be served? • What alternatives currently exist to serve the users identified in this project? • How much of the existing need is now being met? What is the availability of similar programs elsewhere in the community? • Do the programs provide opportunities for entry-level, intermediate, and/or expert skill levels? • How does this project incorporate environmentally sustainable practices? The Financial Aspect: • Can the project generate more revenue and/or less cost per participant than the City can provide with its own staff or facilities? If not, why should the City partner on this project? • Will your organization offer programs at reasonable and competitive costs for all participants? What are the anticipated prices for participants? • What resources are expected to come from the Recreation & Parks Department? • Will there be a monetary benefit for the City, and if so, how- and how much? Logistics: • How much space do you need? What type of space? • What is critical related to location? • What is your proposed timeline? • What are your projected hours of operations? • What are your initial staffing projections? • Are there any mutually -beneficial cooperative marketing benefits? • What types of insurance will be needed and who will be responsible for acquiring and paving premiums on the policies? • What is your organization's experience in providing this tvpe of facility/program? • How will your organization meet Americans with Disabilities Act and EEOC y requirements? Agreements and Evaluation: • How, by whom, and at what intervals should the project be evaluated? • How can you assure the City of long-term stability of your organization? • What types and length of agreements should be used for this project? • What types of "exit strategies' should we include? is Page 13 ® RESOLUTION NO.17-14 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, AUTHORIZING AND DIRECTING ATIVE YEAR TIME SCHEDULE FOR THE DEVELOPMENT, DESIGN, PERMITTING AND CONSTRUCTION OF A NEW WATER RECLAMATION FACILITY SERVING MORRO BAY THE CITY COUNCIL Cite of Morro Bay, California WHEREAS, the Citv of Morro Bav has an existing Wastewater Treatment Plant that requires replacement; and *VHEREAS, on January 10, 2013 the California Coastal Commission ruled to deny the City of Morro Bay's application number A-3-MBR-11-001 to build a new WWTP at the current location siting coastal and flood plain hazards: and WHEREAS, it has been determined to be in the best interest of Morro Bay to construct a ® new Water Reclamation Facility that complies with the California Coastal Commissions actions on January 10, 2013: and WHEREAS. on December 10, 2013 City Council received a Water Reclamation Facility (WRF) Site Options Report from John Rickenbach Consulting that identified seven site options to locate a new WRF; and WHEREAS, on January 14, 2014 the City of Morro Bay adopted a Climate Action Plan and recognizes the value of water reclamation in minimizing the production of greenhouse gases through the development of a local water supply; and WHEREAS; it is in the best financial interest of the community to minimize the major maintenance and repair costs at the existing wastewater treatment plant; and WHEREAS; the Central Coast Regional Water Quality Control Board can issue a secondary discharge permit with interim effluent limitations for the existing wastewater treatment plant for a period not exceeding five years. NOW, THEREFORE, BE IT RESOLVED; that the City Council. City of Morro Bay. - California_ does hereby commit to have a new Water Reclamation Facility. at a new location, operational prior to the expiration of the discharge permit for the existing wastewater treatment plant, being five years more or less. and r� U Page 2 ® BE IT FURTHER RESOLVED, that the Public Services Director is authorized and directed to procure and execute any contracts for required consultant services; up to the limits specified in the City of Morro Bay Policy and Procedure for Hiring Consultants which states that if the cost for said consultant services exceeds S175,000: then said agreement shall be approved by the City Council, and BE IT FURTHER RESOLVED, that the City of Morro Bay will pursue all options to obtain grant funds and other financing opportunities and coordinate with State and Federal Agencies to minimize the costs of a New Water Reclamation Facility to the rate payers. PASSED, APPROVED, AND ADOPTED, by the City of Morro Bay City Council; at a regular meeting held on this 25th day of February; 2014 by the following vote. - AYES: Irons, C. Johnson, N. Johnson, Leage, Smukler NOES: None ABSENT: None ATTEST: 5 "JJ-37 � ® Jamie Boucher, City Clerk 1 JV L. Irons, Mayor ® RESOLUTION NO. 16-14 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, ESTABLISHING A POLICY TO GUIDE THE INSTALLATION OF STOP SIGNS THE CITY COUNCIL City of Morro Bay, California WHEREAS. City residents, land owners and business tenants periodically request that the Public Services Department install stop signs at specific locations to control vehicle traffic; and WHEREAS, the City Engineer applies criteria ("warrants") used by the engineering profession to determine if traffic conditions warrant the installation of a stop sign at particular locations; and WHEREAS, residents and owners of residential properties may desire the installation of stop signs at locations where standard warrants are not met but where managing traffic continues to be a neighborhood concern; and ® WHEREAS, the installation of stop signs and policies that guide their installation are exempt from the provisions of the California Environmental Quality Act (CEQA). NOW TIIEREFORE BE IT RESOLVED by the Council of the City of Morro Bay as follows: To adopt the following policy and direct the Public Services Director/City Engineer to initiate immediate implementation: The following policy will guide the Public Services Department in responding to citi=en requests for installing stop signs. This policy applies to the installation of individual stop signs: it does not apply to the design ofsolutions to address area wide traffic problems. COMMERCIAL/INDUSTRIAL/MULTI-FAMILY ZONING DISTRICTS Installation of stop signs in commercial areas; and on collector and arterial streets shall meet traffic warrants specified in the California Manual of Uniform Traffic Control Devices (CMUTCD) as determined by the City Engineer. RESIDENTIAL SINGLE FAMILY/DUPLEX ZONING DISTRICTS (R-1, R-2, RA only) Installation of stop signs in residential areas will be considered when traffic conditions meet ® warrants as specified in the CMUTCD as determined by the City Engineer, or when all of the following have been met: Stop Sign Policy Paae 2 A. The stop sign is on a street designated by the Circulation Element as a "local" street and is fronted by property zoned for single family or duplex residential (RA, R-I, R-2) housing: and B. The resident requesting the installation petitions households within a 300 feet radius of the proposed stop sign location and submits petition results to the Public Services Department: and C. The City Engineer determines that the petition results show that at least 70% of the households within a 300 feet radius of the proposed stop sign support the stop sign installation; and D. The City Engineer finds that the cumulative impact of installing multiple stop signs along a local street will not limit options for managing traffic or divert traffic to other local streets in the area or cause traffic standards by the Circulation Element to be exceeded; and: E. When approved by Resolution of the City Council. COST OF INSTALLATION AND MAINTENANCE ® A. When traffic conditions meet warrants. the Citv will install the sign and associated legend at its cost. B. When traffic conditions do not meet warrants. the requesting resident(s) shall pay the City for all associated installation costs of the stop sign. Once installed. the City will be responsible for ongoing maintenance. PASSED, APPROVED, AND ADOPTED, by the City of Morro Bay City Council, at a regular meeting held on this 11 th day of February, 2014 by the following vote: AYES: Irons. C. Johnson, Leage, Smukler NOES: N. Johnson y ABSENT: None J to L. Irons, Mayor ATTEST: ® J E BOUCHER, City Clerk RESOLUTION NO. 15-14 ® A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, AUTHORIZING AND DIRECTING THE INSTALLATION OF STOP SIGNS ON FRESNO AVENUE AND MARINA STREET THE CITY COUNCIL Cite of Morro Bay, California WHEREAS. the intersection of Fresno Avenue and Marina Street is under the exclusive jurisdiction of the City of Morro Bay; and WHEREAS. it has been determined to be in the best interest of public health, safety; and welfare to install additional stop signs at these intersections: and WHEREAS, California Vehicle Code Section 21J54 provides for said installations through the designation of a stop intersection and installation of stop signs at one or more entrances under its jurisdiction; and WHEREAS. Morro Bay Municipal Code Section 10.08.080 states. the City Council shall have the power to place and maintain or cause to be placed or maintained official traffic -control devices when and as required as it deems necessary to regulate traffic under this chapter or under the state law, or to guide or warn traffic; and WHEREAS, the City Council has determined that it is appropriate to assign right-of-way at the intersection of Fresno Avenue and Marina Street due to limited sight distances and other functional concerns. NOW, THEREFORE, BE IT RESOLVED, by the City Council. City of Morro Bay. California. that the intersection of Fresno Avenue and Marina Street is hereby designated as a 2- way stop intersection hereto. v BE IT FURTHER RESOLVED. that the Department of Public Services be authorized and directed to install appropriate delineation and signs on Manna Street to reflect these added restrictions and limitations. PASSED, APPROVED, AND ADOPTED, by the City of Morro Bay City Council, at a regular meeting held on this 11 th day of February, 2014 by the following vote: AYES: Irons. C. Johnson, Leage. Smukler NOES: N. Johnson ABSENT: None ® ATTEST: (� -9?� JA BOUCHER, City Clerk Jaie L. Irons. Mayor ® RESOLUTION NO.14-14 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, APPROVING THE 2013 ANNUAL WATER PROGRESS REPORT AND ADOPTING A WATER ALLOCATION PROGRAIM FOR 2014 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 yearly 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 January 17. 2014 California Governor Jerry Brown declared a water emergency, due to drought conditions; calling for a voluntary 20-percent reduction in water consumption; and WHEREAS, on January 22. 2014 the City of Morro Bay implemented Mandatory Water Conservation Requirements for Severely Restricted Water Supply Conditions: and WHEREAS, on January 31. 2014, County staff informed the City of Morro Bay that the State Water Project allocation for 2014 is now officially at 0-percent, and only stored water is available to meet delivery requests; and WHEREAS. on the I Ph day of February. 2014 the City Council did hold a duly noticed Public Hearing on the 2013 Annual Water Progress Report and the proposed 2014 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 2013 Annual Progress Water Report as submitted by the Public Services Director, as incorporated herein as if attached hereto: and ® B. A Water Allocation Program for the year 2014 is hereby adopted by the City Council of l� the City of Morro Bay containing the following elements: 11 2011 Annual Water Progress Report R Residential Allocation for 2014 Page 2 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 Water Equivalency Units; 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 multiple family residential WEU'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; 4. The potential for rolling over unused water allocations to next year is not precluded by this action; and PASSED, APPROVED, AND ADOPTED, by the City of Morro Bay City Council, at a regular meeting held on this 11 th day of February. 2014 by the following vote: AYES: Irons, C. Johnson, N. Johnson. Leage is AYES: Smukler ` ABSENT: None ATTEST: V� J i oucher, City Clerk CJ 4R'� J. 422IM2 Je L. Irons, Mayor ® RESOLUTION NO.13-14 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, AUTHORIZING THE 2013/14 MID -YEAR AMENDMENTS TO THE CITY'S OPERATING AND CAPITAL IMPROVEMENT BUDGETS THE CITY COUNCIL Cite 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 25, 2013 by Resolution No. 37-1 3; 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 ® additional revenues and expenditures as shown on the attached schedule. PASSED AND ADOPTED by the Cit}• Council of the City of Morro Bay at a regular meeting thereof held on the I I m day of February 2014, by the following vote: AYES: Irons. C. Johnson, Smukler NOES: N. Johnson, Leage ABSENT: None ATTEST: JApt BOUCHER, City Clerk n LJ J f1E L. IRONS. Mayor f 3 o o_ c v a o Vl o O m T p > � g > c 0 > v a ` o > o o > 0 5 on '^ N a 0 T m` 0 0 'D n �o E ,2 n > - v >> Q y c > v > c o > v E o m= °�-' u v m v n o 0 m D O O O O O j Q V E O ^ E O'" o 0 0 o� 1p o � °' v f v V v v v w a o Q w v1 m Of O O Ot Ot C N O m a> C6 v C m C Y C C Y C m vm1 C= CV V V V V V V Ld > > > v Q >V mm> o in o in o 0 0 0 o n m o W o n l.7 O 1� O 1l O vt O ". .O O N vl vt Z t0 m t0 O 1� yj• ..- :.-i' _ O OJ .-i N �V�ppl S V F W � p O I� N Oi O O O W O 10 I1 O v O Ol O '+ O O a0 M d ttl 1p N N N pl M N � o N ® P V1 cc.i W � O .-i ni 1p V1 rl N n 1N N N D V N C E E v Z o O 1O c F � m In Y v E a a w E Lr a a a a a E v a `v `v v `v `v v vni O F O O O O O O m O � FN- � F- P P ap v iA � v1 in vt ti .y M ? M M M m P P P P P P v P G V O O O m O O O O O O O O V N N f� tLi .y .-i N vt vt N N N p V P P h rvl M M M M P P V1 Q 0 0 O O O O O O O 0 0 O G O O O F O O O O O O O O p m C ug ¢ Z ~ p Z E w O F v<N N p w >, o QQ p m c °1 a W p w p N w f m Q c E o w C v 2 ya Z 2' C o w a ry (D L_ H lii V = U lL _ m a k WE m, =I z 0 E c U W 0 � a Z w w c E � n � Z W F Q U Z 0 O m Q � m Z lU ¢ 0 N V u 0 N Cr Cr C N E a Cr f ■ 0 E I \ / $ co _ c CL \ � @ ) § \ { \t ® \D ){ C� ct C� r1i -M] { � c \ \ ) a } / ( ( 0 RESOLUTION NO. 12-14 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA ASSIGNING LEASE SITE 30W-33W LOCATED AT 201 MAIN STREET TO BRUCE FOSTER & DEAN MARCHANT AND APPROVING A NEW 20 YEAR MASTER LEASE AGREEMENT FOR LEASE SITE 30W-33W BETWEEN THE CITY OF MORRO BAY AND BRUCE FOSTER AND DEAN MARCHANT 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, Jay and Mereline Coakley are the current. lessees of Lease Site 30W-33W since 2003 and are tenants in good standing: and WHEREAS, the Coakleys are currently the upland property owners of 201 Main Street adjacent to the northern portion of Lease Site 30W-33 W; and ® WIIEREAS, the Coakleys are selling their upland property and have applied for assignment of the Master Lease for Lease Site 30W-33W to Bruce Foster and Dean Marchant: and WHEREAS. Bruce Foster and Dean Marchant are currently in escrow on said property; and WHEREAS in accordance with the Citv's Master Lease Policy. the Ciry and Bruce Foster and Dean Marchant have agreed to a new 20-year Master Lease for Lease Site 30W-33W located at 201 MainStreetincluding certain improvements and adjustments of the Lease Site boundaries. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay, California, that the attached Assignment and Assumption Agreement of Lease Site 30W-33W from. Jay and Mereline Coakley to Bruce Foster and Dean Marchant is hereby approved; and BE IT FURTHER RESOLVED, by the City Council of the City of Morro Bay, California, that the attached new Lease Agreement for Lease Site 30W-33W is hereby approved; and 11 BE IT FURTHER RESOLVED, that said Assignment and Assumption Agreement and new Lease Agreement approvals are both contingent upon successful closing of escrow between Jay and Mereline Coakley and Bruce Foster and Dean Marchant for the real property transaction on the adjacent upland property located at 201 Main Street; and BE IT FURTHER RESOLVED, that the Mayor is hereby authorized to execute said Assignment and Assumption Agreement and Lease Agreement by signing both agreements in escrow and contingent upon closing of escrow on said upland real property sales transaction. PASSED AND ADOPTED by the Citv Council of the City of Morro Bav at a regular meeting thereof held on the 28th day of January. 2014 on the following vote: AYES: Irons. C. Johnson_. N NOES: None ABSENT: None ATTEST: ) a-nz�� Jarnk Boucher, C D Johnson, Leage, Smukler ?Je L. Irons, Mav 11 This document is recorded for the Benefit of the City of Morro Bay and is exempt from recording fees, pursuant to Government Code Sections 6103 and 27383. RECORDING REQUESTED BY: City of Morro Bay WHEN RECORDED MAIL TO: City of Morro Bay City Attorney 595 Harbor Street Morro Bay, CA 93442 Space above reserved for use of County Recorder ASSIGNMENT AND ASSUMPTION AGREEMENT This assignment is made and entered into this3o1 day of S6ir) , 2014. by and between Jay and Mereline Coakley, (hereinafter referred to as "Assignor") and Bruce Foster and Dean Marchant (hereinafter referred to as "Assignees'). 1. Assignor hereby assigns all rights, title and interest they have in the lease from the City of Morro Bav, known as Morro Bay Lease Site 30W-33W, under the Master Lease dated May 19, 1964, Resolution 76-533 dated July 26, 1976, Amendment 'l approved April 21, 1981, and Amendment 92 approved December 10, 2007. 2. Assignee acknowledges that any assignment of the Master Lease is subject to prior approval by the City of Morro Bay City Council and is also subject to prior execution . between Assignor and Assignees. The City Council of Morro Bay approved lease assignment by Resolution 12-14 on January 28, 2014. 3. Assignees agree to comply with terms and conditions of the Master Lease dated Mav 19, 1964, Resolution 76-533 dated July 26, 1976, Amendment 91 approved April 21, 1981: and Amendment #2 approved December 10, 2007 and to assume all liabilities under the Master Lease, to defend, indemnify and hold the City free and harmless from and against, any and all claims, lawsuits, costs and expenses, including reasonable attorney's fees and court costs arising from, or in any way related to, holding, using or operating the leased premises, and further agree to maintain liability insurance in the manner, form and amount required by the Master Lease dated May 19, 1964, with the City of Morro Bay included as an additional insured without the offset against the City's insurance. Assignor confirms to the City that he has no actual knowledge or reasonable cause to believe that any ®release of hazardous substance has come to be located on/or beneath the real property during the term of Assignors occupation of the lease that has not been reported pursuant to Health & Safety code 9253597. Page 1 of 2 ® Dated: 0 Dated: l - 3 0 - 1 Mereline Coakley Consent to Assignment & Assumptions of all liabilities under the Lease Agreement Dated Bruce Foster Dated: Susan Foster Dated: Dean Marchant Dated: Carly Marchant ® The City of Morro Bay, Lessor named in the Master Lease; consents to the Assignment upon the conditions set forth above. The City also consents to the agreement by Assignees to assume, on January 28, 2014, the payment of rent and performance of all duties and obligations including all percentage of gross sales rent as set forth in the Master Lease which has been approved by the Morro Bay City Council prior to this agreement. City of Morro Bay Dated: &'t 31 2014 APPR VED AS TO FORM e Russell. INTERIM CITY ATTORNEY El By: Jamie L. Irons, Mayor City of Morro Bay Page 2 of 2 state of California ) County of San Luis Obisoo ) On January 30 2014 before me, Colleen E. Childres Notary Public (here insert name and title of the officer), personally appeared Jay Coakley and Mereline Coakley, 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 haa�ndd/�and official Si natur /� ` �j� 2—a eal) Commission # 20 5023 9 � v faotary public • California Z San Luis Obispo C" Comm =Jan 29, 2018 r (notary)(12-07) CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT State of California ss. County of San Luis Obispo On 'mob -Lo I before me, Dana Swanson. Notary Public (Date) personally appeared O_V%�i C (Signer/s) who proved to me on the basis of satisfactory evidence to be the personO whose name(o is/aI6 subscribed to the within instrument and acknowledged to me that he/syfe/they executed the same in his/l*r/thor authorized capacity(id), and that by his/hkth* signature(g) on the instrument the person(, or the entity upon behalf of which the person( 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. jdvsm- v (tgnature of Notary Public) My commission expires on 12/31/14. OPTIONAL DANA SWANSON COMM. #19195u M w Navy PubliaC+6ton+ia !9 SM WIS OBISPO COUNTY Ifew Cams jA DEC.312014 This area for official notarial seal. Though the it formation below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudalent removal and reattachment of this fonn to another document. Description of Attached Document Title of Type of Document: rt 91 4-k kc,n r Document Date: 7Ta 90 Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer Signer's Name: l dMi C, I w bk ❑ Individual Corporate Officer —Title(s): f ❑ Partner: ❑ Limited ❑ Ge eras ❑ Attorney -in -Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Signer Is Representing: Number a Top of thumb here C I� L r�1 LJ This document is recorded for the Benefit of the City of Morro Bay and is exempt from recording fees, pursuant to Government Code Sections 6103 and 27383. RECORDING REQUESTED BY: City of Morro Bay WHEN RECORDED MAIL TO: City of Morro Bay City Attorney 595 Harbor Street Morro Bay, CA 93442 Space above reserved for use of County Recorder ASSIGNMENT AND ASSUMPTION AGREEMENT This assignment is made and entered into this V day of 2014, by and between Jay and Mereline Coakley, (hereinafter referred to as "Assignor") and ruce Foster and Dean. Marchant (hereinafter referred to as "Assignees"). 1. Assignor hereby assigns all rights, title and interest they have in the lease from the City of Morro Bay, known as Morro Bay Lease Site 30W-33 W, under the Master Lease dated May 19, 1964, Resolution 76-533 dated July 26, 1976, Amendment #1 approved April 21, 1981, and Amendment #2 approved December 10, 2007. 2. Assignee acknowledges that any assignment of the Master Lease is subject to prior approval by the City of Morro Bay City Council and is also subject to prior execution between Assignor and Assignees. The City Council of Morro Bay approved lease assignment by Resolution 12-14 on January 28, 2014. 3. Assignees agree to comply with terms and conditions of the Master Lease dated May 19, 1964, Resolution 76-533 dated July 26, 1976, Amendment #1 approved April 21, 1981, and Amendment 92 approved December 10, 2007 and to assume all liabilities under the Master Lease, to defend, indemnify and hold the City free and harmless from and against, any and all claims, lawsuits, costs and expenses, including reasonable attorney's fees and court costs arising from, or in any way related to, holding, using or operating the leased premises, and further agree to maintain liability insurance in the manner, form and amount required by the Master Lease dated May 19, 1964, with the City of Morro Bay included as an additional insured without the offset against the City's insurance. Assignor confirms to the City that he has no actual knowledge or reasonable cause to believe that any release of hazardous substance has come to be located on/or beneath the real property during the term of Assignor's occupation of the lease that has not been reported pursuant to Health & Safety code 9253597. Page 1 of 2 Dated: Dated: % - ,30 - I Mereline Coakley Consent to Assignment & Assumptions of all liabilities under the Lease A e�bnt Dated: c Oster Dated:/ J Dated: 1 / 3 C7 / Dated: _ 0 SEE q FORNOT� FCIf D E The City of Morro Bay, Lessor named in the Master Lease, consents to the Assignment upon the conditions set forth above. The City also consents to the agreement by Assignees to assume, on January 28, 2014, the payment of rent and performance of all duties and obligations including all percentage of gross sales rent as set forth in the Master Lease which has been approved by the Morro Bay City Council prior to this agreement. Dated: AP PRCD AS TO FORM: e Russell, fNTERIM CITY ATTORNEY City of Morro Bay By: Jamie L. Irons, Mayor City of Morro Bay Page 2 of 2 ACKNOWLEDGMENT c ecreerc recec[ccccc[ceer[e[re ecrceeee ce eeeceeceeercecccc[cccc er reeec[r ecr State of California County of San Diego } SS. before me�E��% whop oved to me on the basis of satisfactory evidence to be the perso (s) whose nam is%t? subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her h i authorised capacity( a and that by his/her/ el signature on the instrument t e person s), or the entity upon behalf of which th person S cted, 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 OMY OFFICIAL SEAL JAY SCHRAM NOTARY PUBLIC-CALIFORNIAmCOMM. NO.2026aa5 SAN DIEGO COUNTY COMM. EXP. JUNE 24 2077 (seal) crcce reee[terc tcecrrtecr rrrtrr ce[[ctttrc Brett reeer trr refer tcertrc trt cr OPTIONAL INFORMATION Date of Document t b�I1 Thumbprint of Signer Type or Title of Document Number of Pages in Document ^� Document in a Foreign Language Type of Satisfactory Evidence: _ Personally Known with Paper Identification Paper Identification Credible Witness(es) Capacity of Signer: Trustee _ Power of Attorney CEO/CFO/COO President/ Vice -President/ Secretary/ Treasurer Other: Other Check here if no thumbprint or fingerprint is available. (t _9008 Allstate Notary Preparation, Inc. - (800) 689-8456 - wmv.alistafenotary.com Ote of California ) County of San Luis Obispo ) On January 31, 2014 before me, Colleen E. Childres Notary Public (here insert name and title of the officer), personally appeared Bruce Foster and Susan Foster 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. WITNES and-andgofficial se Signatu. _� L���>a,_;��� (Seal) COLLEEN E. CNILDRES Commission * 2055023 i Notary Public - California zZD San Luis Obispo County Agy Comm. Ei iras Jan 29, 2018 r (notary)(12-07) LEASE by and between the CITY OF MORRO BAY ("CITY") m ® BRUCE FOSTER & SUSAN FOSTER AND DEAN MARCHANT & CARLY MARCHANT ("TENANT") S/R W SlCmbcN.Harbor.011011.aer.\ f wterLmc Article2 RENT..........................................................................................................................3 Section 2.01 Annual Minimum Rent.................................................................3 Section 2.02 CPI Adjustment to Annual Minimum Rent..................................4 Section 2.03 Calculation of New Minimum Rent..............................................4 Section 2.04 Percentage Rent............................................................................6 Section 2.05 Reimbursements............................................................................8 Section 2.06 Penalty and Interest.......................................................................8 Article 3 USE OF PREMISES ...................................................................................................9 Section 3.01 Permitted Uses..............................................................................9 Section 3.02 Unauthorized Use..........................................................................9 Section 3.03 Operation of Business - Hours of Operation.................................9 Section 3.04 Competition.................................................................................10 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......................................................................12 Section 3.09 Use by CITY........................................................................ :...... 12 Article 4 CONSTRUCTION, ALTERATION AND REPAIRS.............................................12 Section 4.01 Construction Approval................................................................12 Section 4.02 Construction Bond......................................................................13 Section 4.03 Mechanics' Liens.........................................................................13 Section 4.04 Ownership of Improvements .............................. :........................ 14 S/RWS/Cmbcty.Harbor.01101 LagrNwterLewe -1- ® Article 5 LEASEHOLD MORTGAGES.................................................................................15 Article 6 REPAIRS, MAINTENANCE AND RESTORATION............................................15 Section 6.01 Maintenance by TENANT..........................................................15 Section 6.02 Seawalls and Revetment............................................................. 15 Section 6.03 Legal Requirements . ..................................... :.............................. 15 . Section 6.04 Failure to Repair.........................................................................16 Section 6.05 Inspection by CITY.....................................................................16 Section 6.06 TENANT'S Duty to Restore Premises........................................16 Section 6.07 Termination of Lease for Destruction.........................................17 Section 6.08 Destruction Due to Risk Not Covered by Insurance...................18 Article 7 NDEMNITY AND INSURANCE ..........................................................................18 Section 7.01 Indemnity Agreement.................................................................18 Section 7.02 Liability Insurance......................................................................19 ® Section 7.03 Worker's Compensation..............................................................20 Section 7.04 Property Insurance . ............................... :..................................... 20 Section 7.05 Additional Coverage...................................................................20 Section 7.06 General Requirements.................................................................21 Section 7.07 No Subrogation...........................................................................22 Section 7.08 TENANT'S Waiver.....................................................................22 Section 7.09 Insurance Not a Limit.................................................................22 Article 8 TAXES AND FEES ..................................................................................................22 Section 8.01 TENANT to Pay Taxes...............................................................22 Section 8.02 TENANT to Pay License and Permit Fees.................................23 Section 8.03 Utilities........................................................................................23 Article 9 CONDEMNATION ..................................................................................................23 Section 9.01 Total Condemnation....................................................................23 ® Section 9.02 Condemnation Award.................................................................23 S/RWS/Cmbcty.Harbor.011011.agr.,Mmterleme -ii- Section 9.03 Termination for Partial Taking...................................................24 Section 9.04 Rent Abatement for Partial Taking.............................................25 Section 9.05 Conveyance in Lieu of Eminent Domain....................................25 Section 9.06 Temporary Taking......................................................................25 Article 10 ASSIGNMENT AND SUBLEASING.....................................................................26 Section 10.01 No Assignment Without CITY'S Consent..: ............................... 26 Section 10.02 Change of Ownership as Assignment.........................................26 Section 10.03 Application for Assignment........................................................27 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..............................................28 Section 10.07 Consent Form Agreement...........................................................28 Section 10.08 TENANT and Guarantor Remain Liable....................................28 Section 10.09 Nondisturbance...........................................................................29 Article 11 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...........................................................30 Section 11.05 Attorneys' Fees .................... :......... :............................................. 30 Section 11.06 Damages for Breach....................................................................30 Section 11.07 Cumulative Remedies.................................................................3.1 Section 11.08 Waiver of Breach........................................................................31 Section 11.09 Surrender of Premises.................................................................31 Article 12 MISCELLANEOUS..........................................................................................:......31 Section 12.01 Attorneys' Fees.............................................................................31 Section12.02 Notices........................................................................................32 S/RWS/Cmbcty.Hnbor.01101 Lagr.MmterLeme -111- ® Section 12.03 Governing Law and Jurisdiction.................................................32 Section 12.04 Binding on Successors................................................................32 Section 12.05 Partial Invalidity..........................................................................33 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 El Article 13 SPECIAL PROVISIONS PECULIAR TO THIS LEASE SITE................................34 Section 13.01 Resolution of Lease Site Boundary .............................................34 Section li.02 Construction of Waterside Improvements..................................36 Section 13.03 Tenant Shall Commit to Clean Marinas Program Certification..38 Section 13.04 Future Construction of Harbornvalk.........................................:.38 S/RWS/Cmbcty.Harbor.01101 Lagr.MmterLeme -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 Bruce Foster & Susan Foster, husband and wife, and Dean Marchant & Carly Marchant, husband and wife, herein collectively 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; S/RWS/Cmba[y.Hubor.011011 ag.Muted.eue ® 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 30W-33W This property is delineated on Parcel Map of the CITY of Morro Bay No. 68-30, which map was recorded on October 10, 1968. in Book 3, Page 10 of Parcel Maps in the Office of the County Recorder, San Luis Obispo County, California. A copy of said Map is attached hereto as Exhibit A and made a part hereof by reference. Article 1 FIXED TERM Section 1.01 Term. The term of this Lease shall be a period of TWENTY (20) years, commencing January 28, 2014 (the "Commencement Date"). The term of this Lease shall terminate without notice on January 27, 2034, unless sooner terminated as herein provided. ® Section 1.02 Extensions. TENANT -shall have the right to extend the term of this Lease for an additional TWENTY (20) years contingent upon: (1) receipt of CITY approval of a TENANT plan (`Tenant Plan') for future capital improvements and major maintenance and upgrading/replacement of improvements in Lease Site including the docks, pilings, pier, wharf and other work as necessary to maintain the service life of the improvements as -needed. The minimum cost of said improvements shall be One Hundred Twenty Five Thousand Dollars ($125,000). TENANT shall deliver written notice to CITY of TENANT's intent to exercise Option to Extend at least Eighteen (18) months prior to Lease expiration, and obtain CITY's approval of the TENANT Plan prior to expiration of Lease and; (2) TENANT removal of those portions of the building on the wharf which extend across. the CITY-oNvned Lot 20 and granting CITY unobstructed access for Lease Site purposes across any TENANT wharf, dock, pier, float, slip or other boat anchorage to the Premises via Lot 20. However, at a minimum of five (5) years prior to expiration of Lease, at TENANT's request, CITY may, at City's sole discretion, enter into non -binding negotiations with TENANT should ® TENANT desire that the encroaching building remain and CITY does not require use of the area. Master Lease 11/01 -2- TENANTS's exercise of the option to extend shall be further contingent upon TENANT is not being in default under any term or condition of the Lease at the time of TENANT's exercise of the option and the time of commencement of the option. Time is of the essence. 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. 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 $26,400 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 r Master Lease 11/01 -3- ® such other place or places CITY may from time to time designate by written notice delivered to TENANT. Annual minimum rent shall be adjusted commensurate to any change in Lease Site square footage occurring out of action described in Section 13.01, after any said change in Lease Site square footage takes place. Section 2.02 CPI Adjustment to Annual Minimum Rent. (1) The parties agree that as of every July 1 following the Commencement Date (each, a "CPI Adjustment Date"), except as outlined in section 2.03 hereof, the annual Minimum Rent shall be increased in direct proportion to any upward or downward movement in the Consumer Price Index for January 1, 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") (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: Master Lease 11101 -4- 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"), with the new Minimum Rent taking effect on July 1 following each Appraisal Adjustment Date. CITY, at its own cost and expense, shall retain an independent qualified appraiser for determination of the fair market value of said premises. Not more than nine (9) months prior to each Appraisal Adjustment Date, CITY shall provide written notice to TENANT of the pending appraisal and he appraiser selected by the CITY to determine the fair market value of the Premises, excluding fixtures and improvements unless such are expressly included in the description of the leasehold hereinabove. If TENANT does not reject CITY's appraiser in writing and within thirty (30) days of CITY's notice of its determination, then the Minimum Rent for the Subsequent Rental Period shall be in the amount determined by CITY as outlined in this .Section 2.03. If TENANT rejects CITY's appraiser within thirty (30) days following CITY's notice to TENANT, then within fifteen (15) days 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 MAI (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 (15) days after the other party has given notice of the name of its appraiser, the single appraiser appointed shall be the sole appraiser. Each appraiser shall conduct an independent appraisal within thirty (30) days after appointment. If the parties are unable to agree on the Minimum Rent for the Subsequent Rental Period within thirty (30) days after receiving the appraisal(s), then each party shall select one member of a three -member committee. The two so selected members shall select the third member, and this committee shall by majority vote select one or the other of the appraisals. The Minimum Rent determined on the basis of the selected appraisal shall be final and binding and all costs associated with the three -member committee shall be paid equally by CITY and TENANT. B. In the event that the appraisal process is not concluded on or before the Appraisal Adjustment Date, the Minimum Rent shall be adjusted retroactively to such Appraisal Adjustment Date as set out hereinbelow when said appraisal process is completed. C. The total Rent payable, including both the Minimum Rent and the Percentage Rent for each year within the applicable previous five-year period, shall be averaged to produce the average annual total Rent payable for such previous period. D. The new Minimum Rent for the five-year period commencing on each Appraisal Adjustment Date shall be the greater amount of seventy-five percent (75%) of the average of the total yearly Rent payable during the previous five-year period (as set out in paragraph C. above) Master Lease I1/01 - -5- 0 or eight percent (8%) of the fair market value of the Premises (as established in paragraph A above.) The new Minimum Rent shall be divided by two to determine the semiannual payments and shall be paid by TENANT to CITY on the first of each January and July thereafter. This new Minimum Rent shall be adjusted each following year in proportion to any increase in the Consumer Price Index as set out in Section 2.02 of this Lease. Section 2.04 Percentage Rent. A. In addition to the Minimum Rent, TENANT agrees to pay to CITY at the time and in the manner hereinafter specified, as additional Rent for the use and occupancy of the Premises, a sum equal to TEN percent (10%) of TENANT'S Gross Sales, hereinafter defined, less the - amount of the Minimum Rent paid pursuant to this Lease (the "Percentage Rent"). B. The term "Gross Sales," as used herein, shall mean (subject to the exceptions and authorized deductions as hereinafter set forth), the total selling price and the total gross amount received by TENANNT from all rentals, merchandise sold and services rendered in, on or from the Premises by TENANT T, 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 is 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 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 tares to the government entity or entities by which they are imposed; and (3) With respect to credit card sales,- fees retained or withheld by the issuer and/or merchant bank pursuant to TENANT'S credit card acceptance agreement, and (4) Rental payments to TENANT from sublessees whose.total gross sales are included in gross sales computations. ® D. TENAINIT 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 Nlf ter Lme 1 U01 -6- Gross Sales, as defined herein, made each calendar month in, on or from the Premises. is TENANT shall keep said records and books of account within San Luis Obispo County and shall notify CITY in advance of their location at all times. Furthermore, TENANT shall at the time of sale and in the presence of the customer cause the full selling price of each piece of merchandise, each rental received and each service rendered in, on or from the Premises to be recorded in a cash register or cash registers that have cumulative totals and are sealed in accordance with standard commercial practices. Said records, books of account and cash register tapes, including any sales tax reports that TENANT may be required to furnish any government or governmental agency shall at all reasonable times be open to the inspection of CITY, CITY'S auditor, or other authorized representative or agent of CITY. TENANT consents to the release of sales tax information to CITY and on demand will furnish to CITY a copy of the sales tax reports, quarterly reports and any audit reports of sales for confidential internal use of the CITY in determining Gross Sales for TENANT. TENANT consents and authorizes CITY to request such information directly from the State Board of Equalization or other state agency with which sales tax information is filed. E. By July 31 of each year, TENANT shall furnish CITY with a statement, to be certified by TENANT as current, true and accurate, which shall set forth the Gross Sales of each department, 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 Master Lease 11/01 -7- understated by any amount, TENANT shall immediately pay the additional Percentage Rent therein shown to be payable by TENANT to CITY, together with interest at the Default Rate thereon, from the date the Percentage Rent was payable until the date paid. F. CITY shall be entitled at any time within five (5) years after the receipt of any such Percentage Rent payment, to question the sufficiency of the amount thereof and/or the accuracy of the statement or statements furnished by TENANT to justify the same. For the purpose of enabling CITY to check the accuracy of any such statement or statements, TENANT shall for said period of five (5) years after submission to CITY of any such statement keep all of TENANT'S records, including sales tax returns, all cash register tapes and other data which in any way bear upon or are required to establish in detail TENANT'S Gross Sales and any authorized deductions therefrom as shown by any such statements and shall upon request make the same available to CITY for examination. Section 2.05 Reimbursements.. If TENANT fails to perform any term or covenant of this Lease, CITY may, but is not obligated to, perform such term or covenant, and TENANT shall reimburse CITY therefore as additional Rent hereunder. As an illustration and not as a limitation, if TENANT fails to procure ® the insurance required by this Lease, CITY may, but is not obligated to, obtain such insurance, with the cost of the premiums being due to CITY upon demand as additional Rent. 2 Section 2.06 Penalty and Interest. (1) If any Rent is not received within ten (10) days following the date on which the Rent first became due, TENANT shall pay a late penalty of ten percent (10%) of the amount of the Rent in addition to the Rent. (2) In addition to the penalty, TENANT shall pay interest at the rate of one percent (1%) per month or fraction thereof or the maximum amount permitted by law as of the date this Lease is signed, whichever is greater (the "Default Rate"), on the amount of the Rent, exclusive of the penalty, from the date on which Rent first became delinquent until paid. The term "Rent" includes any sums advanced by the CITY and any unpaid amounts due from TENANT to the CITY. Mwter Lease 11/01 -8- 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 the City, and for no other purpose. At the commencement date of the lease, such uses include vessel slips, pier, managing a marina and such other uses as permitted by CITY. Section 3.02 Unauthorized Use. TENANT agrees to allow only those uses authorized in Section 3.01 hereinabove and that any unauthorized use thereof shall constitute a breach of this Lease and shall, at the option of CITY, terminate this Lease. Section 3.03 Operation of Business - Hours of Operation. Failure to actively and diligently conduct the business authorized herein constitutes a breach of the agreement and shall, at the option of CITY, terminate this lease. (1) TENANT shall during the term of this Lease conduct business of the nature specified in Section 3.Ot 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 shalt 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. j Master Lease 11/01 -9- ® 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 hereof shall mean any chemical, substance, material or waste or component thereof which is now ® or hereafter listed, defined or regulated as a hazardous or toxic chemical, substance, material or waste or component thereof by any federal, state or local governing or regulatory body having jurisdiction, or which would trigger any employee or community "right -to -know" requirements adopted by any such body. All Hazardous Materials Activities at the Premises shall be conducted strictly in accordance with all applicable laws and regulations. If TENANT shall transport any hazardous waste from the Premises, such transportation shall be done only by a contractor duly licensed to haul hazardous waste and shall use only a duly licensed disposal site approved by TENANT'S liability insurer. (2) TENANT shall promptly notify CITY of. (i) any enforcement, cleanup or other regulatory action taken or threatened by any governmental or regulatory authority with respect to the presence of any Hazardous Material on the Premises or the migration thereof from or to other property, (ii) any demands or claims made or threatened by any party against TENANT or the Premises relating to any loss or injury resulting from any Hazardous Material on or from the Premises, and (iii) any matters where TENANT is required by applicable law to give a notice to any governmental or regulatory authority respecting any Hazardous Material on the Premises. CITY shall have the right (but not the obligation) to inspect the Premises, to take such remedial ® action on the Premises, as CITY may deem appropriate, and to join and participate, as a party, in Mzsw 1-tue 11/01 -10- any legal proceedings or actions affecting the Premises initiated in connection with any environmental, health or safety law. (3) If any Hazardous Material is released, discharged or disposed of by TENANT or its employees, agents or contractors, on or about the Premises in violation of the foregoing provisions, TENANT shall immediately notify CITY. CITY may elect either to take such remedial action as CITY deems appropriate, in which event TENANT shall reimburse CITY for all costs thereof within ten (10) days after demand, or direct TENANT to perform such remediation. If CITY directs TENANT to perform the remediation, TENANT shall immediately take such remedial action, as CITY shall direct. TENANT shall, properly and in compliance with applicable laws clean up and remove the Hazardous Material from the Premises and any other affected property at TENANT'S expense. If CITY directs TENANT to perform remediation hereunder and if TENANT shall fail to comply with the provisions of this Section within five (5) days after written notice by CITY, or such shorter time as may be required by applicable law or in order to minimize any hazard to persons or property, CITY may (but shall not be obligated to) arrange for such compliance directly or as TENANT'S agent 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 . Is Nla ter Lease I1/01 -11- ® between CITY and TENANT. TENANT'S acceptance of conditions and/or stipulations of this lease do not waive legal rights associated with TENANT'S ownership of upland fee owned land, including; but not limited to TENANT'S Littoral Rights. Section 3.08 Waste or Nuisance. TENANT shall not commit or permit the commission by others of any waste on the Premises; TENANT shall not maintain, commit, or permit the maintenance or commission of any nuisance as defined by law on the Premises; and TENANT shall not use or permit the use of the Premises for any unlawful purpose. Section 3.09 Use by CITY. (1) Subject to TENANT's rights hereunder to possession of the Premises, CITY may grant licenses to, or otherwise authorize, other persons and entities permitting uses of the Morro Bay Harbor. Since the water area is not exclusive, this provision allows continued public use of the public water area. This may include but is not limited to uses such vessel navigation, diving, water sampling and fishing. (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 anv structure thereon or facility appurtenant thereto if the cost thereof shall exceed ten thousand dollars ($10,000), without the prior written consent of CITY. The consent to be obtained pursuant to this Section 4.01(1) shall be requested from the Harbor Director for CITY. If the Harbor Director gives such consent to proceed, it is understood that such consent is given by CITY only in its capacity as the landlord under this Lease and not as the permit -issuing authority. TENANT remains obligated to obtain any needed building permits and comply with all applicable planning processes. (2) Where required by the Morro Bay Municipal Code, California Coastal Act, Corps of ® Engineers or any other state or'federal agency having authority over the proposed project, then all Conditional Use Permits, Concept Plans, Precise Plans, Coastal Development Plans, and any Dtuter ie e11/01 -12- other required plans or permits shall be applied for and approved prior to any construction, alteration or repairs. Section 4.02 Construction Bond. ' (1) Prior to the commencement of any construction the cost of which is greater than the amount of one hundred thousand dollars ($100,000), TENANT shall file with the Morro Bay CITY Clerk a final detailed Civil Engineer's, Registered Architect's or Licensed and Bonded General Contractor's estimate of the cost of construction and installation of improvements on the Premises. Said estimate must be submitted to the CITY Engineer for approval. TENANT shall file with the Morro Bay CITY Clerk a faithful performance bond, in a form and issued by a corporate surety company satisfactory to CITY, in an amount satisfactory to CITY but not in excess of one hundred percent (100%) of the final detailed cost estimate, securing the faithful performance of TENANT or its contractor in the completion of said construction. (2) TENANT shall also file with the Morro Bay CITY Clerk a labor and materials bond, in a form and issued by a corporate surety company satisfactory to CITY, in an amount satisfactory to CITY but not in excess of one hundred percent (100%) of the final detailed cost estimate, securing the payment of all claims for the performance of labor or services on, or the furnishing of materials for, the performance of said construction. (3) In lieu of the above referenced bonds, TENANT may post cash deposits or may make other mutually satisfactory arrangements to guarantee the completion of construction 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 is Master Lease 11/01 -13- ® corporation, licensed by the Insurance Commissioner of the State of California to transact the VI business of a fidelity and surety insurance company as surety. The beneficiary of any security instrument which instrument is on record Mth CITY, shall have the right to file such a bond on behalf of TENAINT. 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. TENANNT 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 at the termination of this lease, however occurring, TENANT shall have sixty (60) days thereafter to remove all structures, facilities, installations; improvements and other property belonging to TENANT from the leased premises, provided TENANT shall Give City notice of its intent to remove all structures, facilities, installations, improvements and other property belonging to Tenant at least 90 days prior to termination of this lease, however occurring. ® The parties further agree that.CITY also has the option and right to require TENANT to remove all structures, installations, improvements of any kind or other property belonging to or placed upon the leased premises by TENANT at the termination of this lease, however occurring, providing CITY gives notice, in writing, no later than sixty (60) days prior to the termination of the lease, or of its decision to require that such improvements be removed. If CITY exercises such option and TENANT fails to remove such installations or improvements within sixty (60) days after the termination of this lease, CITY shall have the right to have such installations or improvements removed at the expense of TENANT. If neither TENANT nor CITY exercise its option to remove or require the removal of as the case may be the improvements and installations, then title to such installations, structures and improvements shall vest in CITY and TENANT shall not remove same. r J Nlwter l.eau 1 t/0l -14- Article 5 LEASEHOLD MORTGAGES is 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 Mono 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. 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 is Master Lease 11/01 -15- actions resulting from TENANT'S failure to comply with and perform the requirements of this section. Section 6.04 Failure to Repair. In the event failure to repair results in a hazardous or unsafe condition; CITY shall have the right and option but not the obligation to close and prohibit access to the unsafe portion of the Premises until such repairs are completed and accomplished and the Premises rendered safe for public use. In addition, if TENANT fails to repair any hazardous or unsafe condition within ten (10) days of written notice thereof from CITY, CITY shall have the right, but not the obligation; to perform such repair at TENANT'S expense. TENANT shall reimburse CITY for any such repair undertaken by CITY, promptly upon CITY'S demand, as additional Rent. Failure by CITY to enforce any of the provisions of this Article shall not constitute a waiver of these provisions and CITY may at any time enforce all of the provisions of this Article, requiring all necessary repairs, rebuilding or replacement. Section 6.05 Inspection by CITY. CITY or CITY'S agents, representatives, or employees may enter the Premises at all reasonable times for the purpose of inspecting the Premises to determine whether TENANT is complying with the terms of this Lease and for the purpose of doing other lawful acts that may be necessary to protect CITY'S interest in the Premises under this Lease or to perform CITY'S duties under this Lease. Section 6.06 TENANT'S Duty to Restore Premises. (1) Except as provided in Section 6.07 below, if at any time during this Lease, any improvements now or hereafter on the Premises are destroyed in whole or in part by the elements, or any other cause not the fault of TENANT or CITY, this Lease shall continue in full force and effect and TENANT, at TENANT'S own cost and expense, shall repair and restore the damaged or destroyed improvement(s) according to the original plan thereof or according to such modified plans therefore as shall be approved in writing by CITY. The work of permitting, repair and restoration shall be commenced by TENANT within one hundred eighty (180) days after the damage or destruction occurs shall be pursued with due diligence, and shall be completed not later than one year after the work is commenced, unless the parties hereto 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 Tlmter Leue 11l01 -16- complete repair and restoration as required by this Section 6.06 shall be a material default under this Lease. (2) Any and all insurance proceeds that become payable at any time during the term of this Lease because of damage to or destruction of any improvements on the Premises shall be paid to TENANT and applied by TENANT toward the cost of repairing and restoring the damaged or destroyed improvements in the manner required by this Section 6.06, or, if this Lease is terminated, then applied as provided in Section 6.07. Except as set forth in Section 6.08 below, TENANT'S obligation to restore pursuant to this Section shall exist whether or not funds are available from insurance proceeds. Section 6.07 Termination of Lease for Destruction. (1) Notwithstanding the provisions of Section 6.06 of this Lease, TENANT shall have the option of terminating this Lease as provided in this Section 6.07 if: (a) During the last fifteen (15) years of the term of this Lease, any improvements now or hereafter on the Premises are so damaged or destroyed by the elements or any cause not the fault of TENANT or CITY, that they cannot be repaired and restored as required by Section 6.06 of this Lease at a cost not exceeding thirty-five percent (35%) of the cost of replacing all improvements if they had been totally destroyed at the time of such damage; or (b) During the last ten (10) years of the term of this Lease, any improvements now or hereafter on the Premises are so damaged or destroyed by the elements or any cause not the fault of TENANT or CITY, that they cannot be repaired and restored as required by Section 6.06 of this Lease at a cost not exceeding fifteen percent (15%) of the cost of replacing all improvements. if they had been totally destroyed at the time of such damage. (2) TENANT may exercise its right to terminate pursuant to this Section 6.07 by providing written notice to CITY within one hundred eighty (180) days following damage or destruction as described herein. Such termination shall be effective on the last day of the calendar month following the month in which TENANT provides its notice. (3) If TENANT fails to commence or complete repair and restoration as required by Section 6.06, CITY shall have all. rights and remedies with respect to TENANT's default, including but not limited to termination of this Lease pursuant to Article 11. (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: Master Lease 11/01 -17- ® (a) fast, to the demolition of the improvements and removal of all demolition debris; then (b) to any accrued and unpaid Rent as of the effective date of the termination; then (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.bv Insurance. Notwithstanding anything to the contrary in Section 6.06 of this Lease. TENANT shall have the right to terminate this Lease at any time if the improvements on the Premises are ® damaged or destroyed by a casualty for which TENANT is not required under this Lease to carry insurance and the cost to repair or restore such improvements exceeds fifty percent (50%) of the fair market value of all the improvements on the Premises immediately prior to the damage or destruction. Article 7 INDEMNITY AND INSURANCE Section 7.01 Indemnity Agreement. (1) TENANT shall indemnify and hold CITY; and the property of CITY (including the Premises and any improvements now or hereafter on the Premises), and the CITY'S officers, officials, employees and volunteers harmless from any and all liability, claims, loss, damages, and expenses, including attorney fees and litigation expenses, resulting from TENANT'S occupation and use of the Premises or any negligent act or omission of the TENANT or any of its subtenants, employees, contractors or anyone for whom TENANT may be liable, specifically including; without limitation, any liability, claim, loss, damage, or expense arising by reason of: (a) The death or injury of any person, including TENANT or any person who is ® an employee or agent of TENANT, or by reason of the damage to or destruction of any property, including property owned by TENANT or by any person who is an employee or agent of Master Lease 11101 -18- TENANT, from any cause whatever while such person or property is in or on the Premises or in any way connected with the Premises or with any of the improvements or personal property on the Premises; (b) The death or injury of any person, including TENANT or any person who is an employee or agent of TENANT, or by reason of the damage to or destruction of any property, including property owned by TENANT or any.person who is an employee or agent of TENANT, caused or allegedly caused by either (i) the condition of the Premises or any improvement placed on the Premises by TENANT, or (ii) any act or omission on the Premises by TENANT or any person in, on, or about the Premises with or without the permission and consent of TENANT; (c) Any work performed on the Premises or materials furnished to the Premises at the instance or request of TENANT or any person or entity acting for or on behalf of TENANT;, (d) TENANT'S failure to perform any provision of this Lease or to comply with any Legal Requirement imposed on TENANT or the Premises. (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 separatelyto 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 Master Lease 11/01 -19- ® 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 TENT ANI T, 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 Maier Lease 11/01 -20- liability limits, business interruption coverage, business automobile liability, boiler and machinery insurance and/or builder's risk insurance. However, TENANT shall not be required to maintain additional coverages that are in excess of those typically. maintained by similarly situated tenants in the Morro Bay area. Section 7.06 General Requirements. Except as specifically provided to the contrary, all the insurance required pursuant to this Article Seven shall be subject to the requirements of this Section 7.06. (1) Maintenance of proper insurance coverage is a material element of this Lease and failure to maintain or renew coverage or to provide evidence of coverage and/or renewal may be treated by the CITY as a material breach of contract. TENANT shall forward the CITY specifications and forms to TENANT'S insurance agent for compliance. (2) CITY may at any time require "TENANT to increase the minimum coverage limits for insurance required by this Lease, but every such increase shall be reasonable under the circumstances. (3) All policies shall be issued by insurance companies authorized to issue such insurance in California, with an A.M. Best's rating of no less than A:VII. (4) Any deductibles or self -insured retentions must be declared to and approved by CITY. At the option of CITY, either: the insurer shall reduce or eliminate such deductibles or self -insured retentions as respects CITY, its officers, officials, employees and volunteers; or the TENANT shall provide a financial 'guarantee satisfactory to CITY guaranteeing payment of losses and related investigations, claim administration and defense expenses. (5) Each insurance policy required by this Lease shall be endorsed to state that coverage shall not be cancelled or reduced, except after thirty (30) days' prior 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. E Master Lease 11/01 - -21- (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 TENANTS insurance and shall not contribute with it. Section 7.07 No Subrogation. TENANT agrees that in the event of loss due to any of the perils for which it has agreed to provide insurance, TENANT shall look solely.to its insurance for recovery. TENANT hereby grants to the CITY, on behalf of any insurer providing insurance to either TENANT or CITY with respect to TENANT'S occupancy of the Premises, a waiver of any rights to subrogation which any such insurer of said TENANT may acquire against the CITY by virtue of the payment of any loss under such insurance. Each insurance policy required under this Lease including those insuring TENANT against claims, expense, or liability for injury to persons or property shall provide that the insurer shall not acquire by subrogation any right to recovery which TENANT has expressly waived in writing prior to the occurrence of the loss. Section 7.08 TENANT'S Waiver. ® TENANT hereby waives any right of recovery against CITY for each claim, expense, liability, or business interruption, or other loss, except where caused by CITY'S active negligence or willful misconduct. TENANT agrees that to the extent that TENANT fails to acquire insurance.. TENANT shall not have any claim against CITY for any loss that results from a risk or peril that would have been included in such insurance. Section 7.69 Insurance Not a Limit. The insurance requirements of this Article Seven are independent of. and do not limit or modify, TENANT'S indemnification and other obligations pursuant to this Lease. Article 8 TAXES AND FEES Section 8.01 TENANT to Pay Taxes. TENANT shall pay, before delinquency; all taxes and assessments levied upon or assessed to TENANT on the Premises by reason of this Lease or of any equipment_ appliances, improvement, or other development of any nature whatsoever, erected, installed, or maintained by TENANT or by reason of the business or other activity of TENANT upon.or in connection ® with the Premises. TENANT shall pay all possessory interest taxes applicable to the Premises Maztcr Lme 11/01 . -22- Section.8.02 TENANT to Pay License and Permit Fees. TENANT shall pay any fees imposed by law for licenses or permits for any business or activities including construction by TENANT upon the Premises. Section 8.03 Utilities. TENANT shall pay, or cause to be paid, and hold CITY and the property of CITY, including the Premises, free and harmless from all charges for the furnishing of gas, water, electricity, telephone service, and for other public utilities to the Premises during the term of this Lease and for the removal of garbage and rubbish from the Premises during the term of this Lease. Article 9 CONDEMNATION Section 9.01 Total Condemnation. If title and possession to all of the Premises is permanently taken for any public or quasi - public use under any statute, or by the right of eminent domain, then this Lease shall terminate on the date that possession of the Premises is taken, and both CITY and TENANT shall thereafter be released from all obligations, including Rent, all of which shall be prorated to the date of termination, except those specified in Section 9.02 of this Lease. Section 9.02 Condemnation Award. Any compensation or damages awarded or payable because of the permanent taking of all or any portion of the Premises by eminent domain shall be allocated between CITY and TENANT as follows: i (1) All compensation or damages awarded or payable for the taking by eminent domain of any land that is part of the Premises shall be paid to and be the sole property of CITY free and clear of any claim of TENANT or any person claiming rights to the Premises through or under TENANT. (2) All compensation or damages awarded or payable which is specifically attributed by the taking party to the "good will" of TENANT'S business shall be .paid to and be the sole property of TENANT. (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 Master Lease I1/01 -23- ® terminate this Lease, shall be applied in the manner specified in Section 9.04 toward the replacement of such improvements with equivalent new improvements on the remaining portions of the Premises. (4) All compensation or damages awarded or payable because of any improvements .constructed or located on the portion of the Premises taken by eminent domain where this Lease is terminated because of the taking by eminent domain, whether all or only a portion of the Premises is taken by eminent domain; shall be allocated between CITY and TENANT as follows: (a) That percentage of the compensation or damages awarded or payable because of the improvements that equals the percentage of the full term of this Lease that has, at the time of the taking; not expired shall belong to and be the sole property of TENANT. (b) That percentage of the compensation or damages awarded or payable because of the improvements that equals the percentage of the full term of this Lease that has, at the time of the taking, expired shall belong to and be the sole property of CITY. (c) The term "time of taking" as used in this Section shall mean 12:01 a.m. of the ® date that the agency or entity exercising the eminent domain power, takes, title, or the date that it takes physical possession of the portion of the Premises, whichever shall first occur. (5) Any severance damages awarded or payable because only a portion of the Premises is taken by eminent domain shall be the sole and separate property of CITY. Section 9.03 Termination for Partial Taking. Should, during the term of this Lease, title and possession of only a portion of the Premises be taken for any public or quasi -public use under any statute, or by right of eminent domain, TENANT may, at TENANT'S option, terminate this Lease by serving written notice of termination on CITY within ninety (90) days after TENANT has been deprived of actual physical possession of the portion of the Premises taken for such public use. This Lease shall terminate on the first day of the calendar month following the calendar month in which the notice of termination described in this section is served on CITY. On termination of this Lease pursuant to this Article, all subleases and subtenancies in or on the Premises or any portion of the Premises created by TENANT under this Lease shall also terminate and the Premises shall be 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 eattom to CITY and continue such subtenant's occupancy on the Premises as a TENANT of \lazier Lease 11l01 -24- 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. 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 Master Lease 11/01 -25- ® such temporary taking, the amount that is attributable to the period of time up until the effective date of TENANT'S termination of this Lease. Article 10 ASSIGNMENT AND SUBLEASING Section 10.01 No Assignment Without CITY'S Consent. Except as provided in this Article 10, TENANT shall not assign or otherwise transfer this Lease, any right or interest in this Lease, or any right or interest in the Premises or any of the improvements that may now or hereafter be constructed or installed on the Premises without the express written consent of CITY evidenced by resolution first had and obtained. Any assignment or transfer by TENANT without the prior written consent of CITY, whether it be voluntary or involuntary, by operation of law or otherwise, is void and shall, at the option of CITY, terminate this Lease. A consent by CITY to one assignment shall not be deemed to be a consent to any subsequent assignment of this Lease by TENANT. CITY shall not unreasonably nor arbitrarily withhold its approval to the assignment or transfer of this Lease to an assignee who is financially reliable and qualified to conduct the business for which this Lease was granted. It is mutually agreed that the TENANT'S qualifications are apart of the consideration for granting of this. Lease and said party does hereby agree to maintain active control and supervision of the operation conducted on the Premises. Section 10.02 Change of Ownership as Assignment. For purposes of this Article 10, the following transactions will be deemed to be assignments or transfers: (1) If TENANT is a partnership or limited liability company: (a) A change in ownership effected voluntarily, involuntarily, or by operation of law, within a twelve-month (12-month) period, of twenty-five percent (25%) or more of the partners or members or twenty-five percent (25%) or more of the partnership or membership interests: or (b) The dissolution of the partnership or limited liability company without its immediate reconstitution. (2) If TENANT is a closely held corporation (i.e., one whose stock is not publicly held and not traded through an exchange or over the counter): Mutter Ue 11/01 -26- (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 of 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 is auditor, or other authorized representative or agent. Section 10.04 Probate Transfer of Assignment. If TENANT is an individual, nothing herein contained will prevent the transfer of this Lease by will, or by operation of law under the intestacy provisions of the California Probate Code as it may be amended from time to time. Probate sale of the leasehold interest will not be permitted without the consent of the CITY, evidenced by resolution, first had and obtained. Section 10.05 No Sublease Without CITY'S Consent. TENANT shall not sublease the whole nor any part of the Premises, or license, permit, or otherwise allow any other person (the employees of TENANT excepted) to occupy or use the Premises, or any portion thereof, without the prior written consent of CITY's Harbor director, or any future successor to the duties of the City's Harbor Director. A consent to one subletting, occupation, licensing or use shall not be deemed to be a consent. to any subsequent subletting, occupation, licensing or use by another person. Any sublease or license without CITY'S written consent shall be void, and shall at CITY'S option, terminate this Lease. CITY shall not unreasonably nor arbitrarily withhold its consent to sublet to one who is qualified and financially Master Lease 11/01 - -27- ® 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 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. Master Lease 11/01 -28- 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 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 part of the Premises prior to the scheduled expiration of the term of this Lease, CITY may continue this Lease in effect by not terminating TENANT'S right to possession of the Premises, in which event CITY shall be entitled to enforce all CITY'S rights and remedies under this Lease including the right to recover the Rent specified in this Lease.as it becomes due under this Lease. Section 11.02 Termination for Breach by TENANT. All covenants and agreements contained in this Lease are declared to be conditions to this Lease and to the term hereby demised to TENANT. Should TENANT fail to perform any covenant, condition, or agreement contained in this Lease, except for payment of any Rent or other monetary amount due, and such failure is not cured within thirty (30) days after written notice thereof is served on TENANT, then CITY may terminate this Lease immediately, and in the event of such termination, TENANT shall have no further rights hereunder and TENANT shall thereupon forthwith remove from the Premises and shall have no further right or claim thereto and CITY shall immediately thereupon have the right to re-enter and take possession.of the Premises, subject only to appropriate legal process. Section 11.03 Termination for Failure to Pay Rent. If any payment of Rent is not made as herein provided and such failure to pay is not cured within three (3) days after written notice thereof is served on the TENANT, CITY shall have the option to immediately terminate this Lease; and in the event of such termination, Master Lease 11/01 -29- ® 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 TENAI'T or enforcement of any of the terms, conditions, and covenants of this Lease, even though litigation is not instituted, TENANT shall pay to CITY its reasonable attorneys' fees. Non-payment of attorneys' fees by TENANT within three (3) days after written notice is served on TENANT shall give rise to an independent legal action by CITY to collect same. If CITY is successful in such legal action, CITY shall also be entitled to attornev 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. 11 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 TENANIT proves could be reasonably avoided; and hfuter Leaze 11lO] -j0- (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 mariner provided by the laws of unlawful detainer of the State of California then in effect. Section 11.07 Cumulative Remedies. The remedies available to CITY in this Article shall not be exclusive but shall be cumulative with and in addition to all remedies now or hereafter allowed by law or elsewhere provided in this Lease. Section 11.08 Waiver of Breach. The waiver by CITY of any breach by TENANT of any of the provisions of this Lease shall not constitute a continuing waiver or a waiver of any subsequent breach by TENANT either of the same or a different provision of this Lease. Section 11.09 Surrender of Premises. On expiration or sooner termination of this Lease, TENANT shall surrender the Premises, and, subject to Section 4.04, all improvements in or on the Premises, and all facilities in any way appertaining to the Premises, to CITY in good, safe, and clean condition, reasonable wear and tear excepted. Article 12 MISCELLANEOUS Section 12.01 Attorneys' Fees. Should any litigation be commenced between the parties to this Lease concerning the Premises, this Lease, or the rights and duties of either in relation thereto, the party, CITY or TENANT, prevailing in such litigation shall be entitled, in addition to such other relief as may be grantedin 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. C Master Lease 11/01 -31- ® Section 12.02 Notices. Any and all notice or demands by or from CITY to TENANT, or TENANT to CITY, shall be in writing. Thev 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: Bay Front Marina 201 Main Street Morro Bav, CA 93442 Such addresses may be changed by «ritten 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 Bindinq 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. Alazter Leue 11/01 -32- 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 Aoreement. This Lease, including all exhibits incorporated by reference, constitutes the sole and only agreement between CITY and TENANT. respecting the Premises and the leasing of the Premises to TENANT. Any other agreements or representations respecting the Premises and their leasing to TENANT by CITY, which are not expressly set forth in this Lease, are null and void. The lease terms herein specified correctly set forth the obligations of CITY and TENANT as of the date of this Lease. No modification, amendment, or alteration of this Lease shall be valid unless it is in writing and signed by both parties. Section 12.07 Modification. This agreement shall not be modified except pursuant to a written agreement executed by the MAYOR and CITY CLERK pursuant to prior CITY Council. approval. Notwithstanding CITY Council approval, no agreement shall become effective until such agreement is in fact executed by the MAYOR and CITY CLERK. TENANT understands that this agreement may not be modified by oral statements by any person representing the CITY including the MAYOR and CITY CLERK. TENANT specifically agrees not to rely on oral statements, purported oral waivers, or purported oral modifications and agrees not to rely upon purported written modifications unless they meet the requirements of this paragraph and are approved in writing pursuant to formal City Council action and a subsequent written modification signed by the MAYOR and CITY CLERK. If the title of any person authorized to act for CITY under this Lease shall be changed during the term of this Lease, then the person who succeeds to substantially the same responsibilities with respect to the CITY shall have the authority to act for CITY under this Lease. Section 12.08 Time of Essence. Time is expressly declared to be the essence of this Lease. Section 12.09 Memorandum of Lease for Recording. CITY and TENANT shall, at the request of either at any time during the term of this Lease, execute a memorandum or "short form" of this Lease, which shall describe the parties, set Mutcr Lease 11/01 _33_ ® forth a description of the leased premises; specify the term of this Lease; and incorporate this Lease by reference. Article 13 SPECIAL PROVISIONS PECULIAR TO THIS LEASE SITE The following provisions apply to this Lease site only: Section 13.01 -Resolution of Lease Site Boundary A. CITY and TENANT disagree over the location of the boundary line between TENANIT's adjacent upland property and the Premises and further disagree whether any or all of TENANT'S buildings and/or improvements encroach into, -on or across the Premises. CITY and TENIANT desire to resolve any such encroachments and boundary line issues to the satisfaction and mutual benefit of both parties. Therefore CITY and TENAIN'T agree to cooperate with each other and use their best efforts to resolve the boundary line issue. B. Contingent upon approval of the State Lands Commission and any other state or federal approvals required; CITY and TENANT agree that the boundary line between Lease Site section 33W and adjacent upland property shall be adjusted southwestward to form a straight line ® immediately southwest and adjacent to TENANT's two southwestem-most buildings (excluding TENIANT's buildine which crosses Lot 20) adjacent to Lease Site section 33W for the full length of Lease Site section 33W; as depicted on Exhibit B. No adjustment to the boundary line between Lease Site section 32W and CITY -owned Lot 20 will be made, and no adjustment to the boundary line between Lease Site sections 30W or 31W and adjacent upland property will be made. C. CITY and TENANT agree that for purposes of the boundary line adjustment value and for no other purposes, the boundary line between TENANT'S upland property and the CITY's Lease Site shall be the "mid -point line" between the surveyed line as surveyed by Leonard Lenger in 2002 and the surveyed line as surveyed by Robert Reese in 2013. D. TENAINIT shall pay CITY the full and most recently appraised value of Lease Site completed in May, 2012, at assessed value of eight dollars ($8) per square foot or higher amount as valued by the State Lands Commission, subject to CITY and TENANT approval; for the total square footage of Lease Site 33 W conveyed to TENANT by CITY in resolving the boundary line dispute. TENANT shall enter .into an agreement with CITY to pay for the boundary line adjustment area upon successful completion of the boundary line adjustment with the following ® terms: Master Lease 11/01 -34- 1. A twenty (20) year amortization schedule 2. Interest rate shall be 4.75% 3. Full amount due and payable in fifteen (15) years or sooner E. Following final approval of the boundary line adjustment, an agreement shall be recorded setting forth the new boundary line, and granting any land required to accomplish the adjustment to TENANT. Furthermore, the grant shall contain restrictions that TENANT's buildings and improvements within the boundary line adjustment area may remain in place, and may be repaired, maintained and improved by TENANT but shall not be expanded beyond their existing footprints, so that areas that are now open dock areas may remain as open dock areas, unless otherwise authorized and permitted by CITY. F. TENANT and CITY acknowledge and agree that said boundary line adjustment requires the full and complete approval of the California State Lands Commission, and further agree that if the California State Lands Commission does not approve said boundary line adjustment, or approves another method 'or resolution, neither party shall be bound to the terms of this Section and any resolution of the Lease Site boundary line shall be by mutual consent and action of CITY and TENANT by amendment to this Lease and subject to State Lands Commission approval as above. However, unless and until the boundary line issue is resolved, CITY and TENANT further agree: A. TENANT is the owner of the buildings and improvements in place that may encroach into, on or across the Premises or upland Lot 20 owned by City. B. Except as otherwise specifically provided in Section 1.02, Option to Extend which requires removal of the building possibly encroaching across CITY's upland Lot 20 as a condition precedent to TENANT's exercise of the 20 year option, TENANT's buildings and improvements may remain in place, and may be repaired, maintained and improved by TENANT but shall not be expanded beyond their existing footprints. C. TENANT shall pay rent based on the previous leasehold appraised square footage of 41,450 square feet, plus any additional square footage to be added to Lease Site 33 W to include the area for vessel docking on the west side of the existing pier, or subtracted square footage resulting in any Lease Site boundary adjustment from the boundary disagreement. Master T,Ca e I1/01 -35- ® TENANT shall not be entitled to a refund of any rent paid if the boundary line dispute is resolved by reducing the Premises due to any southwestward movement of the boundary line between the Premises and the TENANT's upland property. Section 13.02 Construction of Waterside Improvements As a condition of this Lease, TENANT shall conduct major maintenance and upgrading/replacement of improvements to the Premises costing no less than One Hundred Fifty Thousand Dollars (S150,000). The improvements shall consist of those outlined in Bay Front Marina Assessment and Scope of Work Report and Cost Estimate ("Report") as provided by Land/Sea Interface document dated November 26. 2013 and attached as Exhibit C to this Lease Agreement or otherwise listed below, and installation of an under-wharf/pier automatic fire suppression system to the maximum extent feasible commensurate with the existing water service line to the current fire hydrant on the adjacent upland property. Failure to complete said improvements and to comply with all conditions of said Report as evidenced by final building permit inspections as required by the City of Morro Bay by the below prescribed timelines, in addition to providing proof of expenses as evidenced by copies of invoices by the prescribed timeline shall be a material default of this Lease Agreement and subject to any remedies outlined in Article 11 herein; including termination of the Lease. TENANT further agrees to: A. Commence obtaining of necessary permits and thence construction of elements in the "NOW" column of Report no later than July 1, 2014, and complete said elements no later than December 3 L 2014, with exception of the pilings and decking in the head and L portions of the pier which shall be completed no later than June 30, 2015. B Commence obtaining of necessary permits and thence construction of elements in the "1-2 yrs" column of Report no later than January 1, 2015, and complete construction of said elements no later than December 31. 2015. C. Commence obtaining of necessary permits and thence construction of elements in the "Apprx. 3 yrs" column of Report no later than January 1, 2016, and complete construction of said elements no later than December 31. 2016. Matter Lease 11/01 -36- D. Commence obtaining of necessary permits and thence construction of elements in is the "Apprx. 5 yrs" column of Report no later than January 1, 2018, and complete construction of said elements no later than December 31, 2018. E. Commence obtaining of necessary permits and thence construction of elements in the "Apprx. 10 yrs" column of Report no later than January 1, 2023, and complete construction of said elements no later than December 31, 2023. F. Commence obtaining of necessary permits and thence construction of elements in the "Apprx. 15 yrs" column of Report no later than January 1, 2028, and complete construction of said elements no later than December 31, 2028. G. Commence obtaining of necessary permits and thence construction of elements in the "Apprx. 20 yrs" column of Report no later than January 1, 2034, and complete construction of said elements no later than December 31, 2034. H. Commence obtaining of necessary permits and thence construction of the under wharf/pier automatic fire suppression system no later than January 1, 2019, and complete construction of said system no later than December 31, 2019. TENANT acknowledges that construction of TENANT'S proposed improvements of the Premises under said Assessment and Scope of Work Plan Report requires, but may not be limited to, obtaining a Conditional Use Permit from the City of Morro Bay, a Coastal Development Permit from the California Coastal Commission, and a City of Morro Bay 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 construction shall not be a reason for failure to comply with this Section. 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 to the greatest extent feasible; C. Prevent any pollutants, including but not limited to petroleum products, from entering Morro Bay waters; D. Avoid negative impacts on surrounding businesses and residences. Master Lease 11/01 - -37- ® Section 13.03 TENANT Shall Commit to Clean Marinas Program Certification TENANT shall commit to certification under the Clean Marinas Program (w v.cleanmarina.org), or equivalent as determined by CITY , at TENANT's sole cost and expense within two (2) years of initiation of this Lease. Section 13.04 Future Construction of Harborwalk TENANT will allow CITY to build a public access Harborwalk along the eastern boundary of the LEASE site provided: A. Costs for all planning, permitting, and construction of said Harborwalk will be home solely by CITY with no obligation of TENANT, including relocation/reconstruction of any Lease Site improvements required to accommodate said Harborwalk. B. Costs for all ongoing maintenance and repair of said Harborwalk will be home solely by CITY, unless said maintenance or repair was caused by action of TENANT. C. As part of said HarborwaWs design and construction, reasonable accommodation. ® acceptable to TENANT, will be made to preclude public access from said Harborwalk to TENA_NT's adjacent private property, and to prevent public access from said Harbonvalk to TENA\'T's Lease Site improvements (slips and pier). Muter Lme 11/01 -jg_ D. Once completed, said Harborwalk will not materially affect TENANT's Lease Site improvements or operation of Lease Site. EXECUTED on January 30, 2014, with an effective date retroactive to January 28, 2014, in the City of Morro Bay, County of San Luis Obispo, California. CITY OF MORRO BAY TEN? By: J e L.Irons, MAYOR ATTEST: By: JaWe Boucher, CITY CLERK By: In CHANGES TO MASTER FORM APPROVED BY: Afire M. Russell, INTERIM CITY ATTORNEY Susan Fost D t Cazly M Mesta Lcue I U01 -39- ® D. Once completed, said Harborwalk will not materially affect TENANT's Lease Site C improvements or operation of Lease Site. EXECUTED on January 30, 2014, with an effective date retroactive to January 28, 2014, in the City of Morro Bay; County of San Luis Obispo, California. CITY OF MORRO BAY Jamie L. Irons, MAYOR ATTEST: Jamie Boucher, CITY CLERK CHANGES TO MASTER FORM APPROVED BY: Acme M. Russell, ENTERIM CITY ATTORNEY TENANT By: Bruce Foster By: Susan Foster BY: Dean Marchant BY: Carly Marchant Master Leaze 11/01 -19- L+ Xnlnit A �'NYae�'E t W � 6 V } L am vaa se re--' -r _ m I I i r. C i L= 1 � I I B II n I E i w "S ii R L � L E iww D n pa , D p- C4 Y °o / a ➢ C (n i ; rn o 3 '�• f m 3 0 O n � N n te< SFee{ iE es ro 171 Exhibit B Exhibit C L ANP f SEA INTERFACE Marine vorkshop 201 Main St. Morro Bay, Calif. 93442 1-805-772-8436 home off Ice 1-805 526-3944 Fax, 1-805-772-8436 E-mail, Iand.sea.interface. mormbay@gmail.com Bay Front Marina Assessment and Scope of Work Report November 26, 2013 ARCHITECTURE CONSTRUCTION MARINE DIVISION SEAWALLS. DOCKS WHARFS. MOORING;: ENVIROMENTAL STUDIES, MAINTENANCE, REPORTS This letter is intended to address the Bay Front Marina existing conditions and recommend repairs/maintenance that should be performed. The report is divided into sections to describe the construction of each component and the attached sheet outlines the service life and estimated costs for the repairs and/or replacement of specific items. Pier. - The Existing pier is approximately 100 feet long by 16 feet wide with an L-section that is 64 feet long by 12 wide. The pier is generally constructed with Douglas Fir that includes 12" x 12" caps, 4" x 12" stringers, 4" x 12" decking and 6" x 6" toe rails and is supported by 43 pilings that are 12" wood treated piles. There are approximately 43 - Douglas Fir creosoted treated piling supporting the old fuel pier. Originally the pilings were installed in the 1950's or 1960's by Union Oil Company, The Commercial Fisherman's Corporation replaced the pilings in approximately 1980 with old growth Douglas Fir creosoted treated pilings with a 20-30 4 treatment. Service life expectancy at that time was approximately 40 years. Several of these pilings have been replaced over the years however; it appears that some pilings are in need of replacement. It is recommended that the additional repair and/or replacement should be performed as listed in the attached sheet. While most of the existing pier has an expected life span of 10 to 20 years however the eastern portion, approximately 16 feet, of the pier requires the following maintenance in order to extend the service life to 20 years: 1. Replace a minimum of 3 piles with new steel or treated wood piles or install steel pipe sleeve over existing wood piles. Not all piles are in a condition that requires immediate replacement but, there are at least three piles that should be replaced within the first year and the remaining should be inspected and replaced as needed to insure structural integrity of the pier. �J C , J LAND ri-!579yi A201 ldine in StMain St.. Mono Bay,436Calf. 93442 1-805-772-8 home office 72-84 528-3944 Fax, , :and.7 .Inl6 E-maA, lanA.sea.inlerlace. monobay@9mail.cnm SEA INTERFACE ARCwTECTIJRE CONSTRt1CT)ON MARINE DIVISION SEAWALLS. DOCKS WHARFS. MOORINCS EWROMENTAL STUDIES, MWNTENANCE,REPORTS 2. Replace stringers with 4" x 12" wood/steel and decking material of 4' x 12'treated wood material. 3. Inspect caps and replace as necessary. 4. The "L" section of the pier has 4 pilings that should be replaced as soon as feasible after the necessary permitting is obtained. 5. The remaining components should be inspected and replaced as needed to insure structural integrity of the pier. Additional repair should be performed as listed in the attached sheet. Docks: The existing head float is approximately 6' by 360' feet and the finger docks are • approximately 30 feet long by 4 wide. The docks are generally constructed with old growth select structural grade or No 1 Douglas Fir with a Fb of around 2400 p,s,i. (from table 25 A-1 U.B.C. 1991) that includes 2" x 4" decking and 6" x 6" side supports. The exterior of these structural elements shows wear but upon test boring, the interior of the member appear in good shape. The treatment of this lumber is 20-30# p.s.i. creosote. There are approximately 38 — 12 inch diameter free standing treated piling supports for the finger slips and of those, 18 were replaced in October 2001 with ACZA treated wooden piles with an estimated service life expectancy of 30-40 years. The remaining original finger slip pilings were installed around 1978-80. These pilings were of old growth Douglas Fir creosoted treated pilings with a 20-30 # treatment. Service life expectancy at that time was approximately 40 years. Most of the existing head float has an expected life span of 15 to 20 years. However, the head float adjacent to finger docks 1-3 has piling rings that should be replaced within the next I to 3 years and the head float adjacent to finger docks 3 — 7 has piling rings that should be replaced within the next 1 to 3 years .The decking should be replaced with approximately the next 5 to 10 years. The floatation in these sections should also be replaced in approximately the next 15 years. The head float adjacent to forger docks 8 — l2 needs additional floatation under the gangway and this work should be done in the next year. In addition, all of these sections should replace the worn deck hinges, piling retainers and decking within the next approximate 3 years. 0 LAND Marine workshop 201 Main St. Morro Bay, Calif. 93442 1.805-772-8436 home office 1-805 528-3944 Fax, 1-605-772-8436 E-mail, land. sea. interface. morrobay@gmaii.com SEA INTERFACE ARCHITECTURE CONSTRUCTION MARINE MSION SEAWALLS DOCKS WHARFS, MOORINGS ENVIROAENTAL STUDIES, MAINTENANCE, REPORTS The finger docks are in general good condition but, there are some repair, maintenance and replacement that recommended to extend the overall service life to 20 years. See attached sheet for specific items and cost estimates. Gangways: The gangways are constructed of aluminum/steel or wood and are approximately 25 feet long and 4 feet wide. The existing gangways were replaced in 1999 however; gangway #1 is in fair condition and should be replaced in approximately 5 years. In addition, gangway #2 and # 3 are in good condition and should be considered for replacement in approximately 10 to 15 years. The following addition should be added to the gangway area. 1. Install a landing at the end of the gangway Other Repair & Maintenance: 1. Repair the existing railings along the building edge. 2. Repair electrical conduit at locations indicated on work plan. Repair water valve. Conclusion: With the implementation of the above and attached recommendations within the prescribed timeline, the overall service life of the floating docks will be extended to a minimum of 20 years. This will also bring the structures into compliance with current standards. In addition, the pier overall service life expectancy will be 20 years with the repairs as recommended in this report. 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N C p_ y G y d N Vt C r'1 Vf VI N H Vl C _C C V1 O p rn � N ti ti to ui ao V N m V1 a� a 00 U C O O O O U Q o C- a o C a N o R f N N d V v C L y •A 6 0C L Y y d u a _ v .-i N M C _, u u u t0 y Cq Y N C r.i C �n N i pp N f9 19 @ V x cA ti� -� � + a c 3 3 3 d _ a x °° � Go m a a y H 0o auV,o� Y 0 to a u L% 0 (7 C7 l7 H q I I M f-I O N C Ml O N C O Q) V a Y> O to co i L� Qf N > W C � OV by m a +' > ar > .� N Y N CDQ N QI m N Q" C N a v+ O1 '^ 3 Y O L L Y O O O C QI y C i Ql a0+ rb YN CL N C O C O C i by y C7 C C Y C m m rl v f0 > O d� C O N tm vi y N a)Cl by ,C 0 bap O O L QI QQ C 0 u +� O * ID+' u by C * m a -� tb .w Cl i L'J E RESOLUTION NO. 11-14 AUTHORIZATION FOR THE CITY OF MORRO BAY TO ENTER INTO 2013/2014 BOATING SAFETY & ENFORCEMENT GRANT CONTRACT WITH THE STATE OF CALIFORNIA, DIVISION OF BOATING AND WATERWAYS IN THE AMOUNT OF S11,000 FOR PURCHASE OF A NEW HARBOR PATROL VESSEL TRAILER THE CITY COUNCIL City of Morro Bay, California WHEREAS; City of Morro Bay (City) applied for a grant from the Division of Boating and Waterways (DBW) under the Boating Safety and Enforcement (BS&E) grant program; and WHEREAS, DBW awarded a grant of S11,000 under the BS&E program for the purchase of a new Harbor Patrol vessel trailer. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay; California, that the City of Morro Bay is hereby authorized to enter into BS&E contract #C8956109 with DBW for the purchase of a new boat trailer; and BE IT FURTHER RESOLVED, that the Harbor Director is hereby authorized to act as the City's agent in regard to all aspects of the grant agreement. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 28th day of January, 2014 on the following vote: AYES: Irons, C. Johnson, N NOES: None ABSENT: None ATTEST: A"!/ice JarriKe Boucher. City Clerk Johnson, Leaee. Smukler J e L. Irons. Mav67 C1 ® RESOLUTION NO.10-14 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORWNIA CALLING A PRIMARY MUNICIPAL ELECTION TO BE HELD ON TUESDAY, JUNE 3, 2014 FOR THE PURPOSE OF ELECTING CERTAIN OFFICERS OF SAID CITY; AND REQUESTING THE BOARD OF SUPERVISORS OF SAN LUIS OBISPO COUNTY TO CONSOLIDATE SAID ELECTION WITH THE CONSOLIDATED DISTRICTS ELECTION TO BE HELD IN THE COUNTY ON TUESDAY, JUNE 3, 2014; AND OTHER ELECTION MATTERS AS REQUIRED BY LAW THE CITY COUNCIL City of Morro Bay, California WHEREAS, Measure "S" was passed by the citizens of Morro Bay at the election held in November 2007 and codified as Ordinance 528, amending Morro Bay Municipal Code Section 2.09.010 to have the General Municipal Election held at the time of the Statewide Primary Election with a runoff election, if necessary, to follow in the November election. For municipal general elections held at the time of the statewide primary, California Election Code Section 8140, together with Election Code Section 10260 and other applicable Election Code provisions provide that a candidate is elected ® at that time only if he or she receives votes on a majority of the ballots cast: and WHEREAS, the City Council of the City of Morro Bay called a Primary Municipal Election to be held on Tuesday; June 3, 2014 for the purpose of the election of two (2) members of the City Council of said City for the full term of four (4) years, and for the election of one (1) Mayor of the City Council of said City for the full term of two (2) years; and WHEREAS, it is desirable that the Primary Municipal Election be consolidated with the Statewide Primary Election to be held on the same date and that within the Citv the precincts, polling places and election officers of the two elections be the same, and that the County Election Department of the County of San. Luis Obispo. canvass the returns of the Primary Municipal Election and that the election be held in all respects as if there were only one election. NOW, THEREFORE, the City Council of the City of Morro Bay, California. does resolve. declare, determine and order as follows: SECTION 1. That pursuant to the requirements of Section 10403 of the Elections Code, the Board of Supervisors of the County of San Luis Obispo is hereby requested to consent and agree to the consolidation of a Primary Municipal Election with the Statewide Primary Election on Tuesday, June 3, 2014, for the purpose of the election of one (1) Mayor, and two (2) Members of the City Council. E ® Resolution No. 10-14 Page Two SECTION 2. That the County Election Department is authorized to canvass the returns of the Primary Municipal Election. The election shall be held in all respects as if there were only one election; and only one form of ballot shall be used. SECTION 3. That the Board of Supervisors is requested to issue instructions to the County Election Department to take any and all steps necessary for the holding of the consolidated election. SECTION 4. That the City of Morro Bay recognizes that additional costs will be incurred by the County by reason of this consolidation and agrees to reimburse the County for any costs. SECTION 5. That the City Clerk is hereby directed to file a certified copy of this Resolution with the Board of Supervisors and the County Election Department of the County of San Luis Obispo. SECTION 6. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original resolutions. ® PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 20 day of January 2014 following vote: AYES: Irons, C. Johnson, N. Johnson, Leage, Smukler NOES: None ABSENT: None ATTEST: JA- E BOUCHER: City Clerk 11 I E L. I NS, M 'or �J 0 RESOLUTION NO. 09-14 ® RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, ADOPTING THE CITY OF MORRO BAY INVESTMENT POLICY AND DELEGATING AUTHORITY TO THE CITY TREASURER TO INVEST IDLE FUNDS THE CITY COUNCIL City of Morro Bay, California WHEREAS; the City Council of the City of Morro Bay desires to prudently invest the idle funds of the City to maximize the use of taxpayer funds; and WHEREAS, the California Government Code Section 53600.3 states that "all governing bodies of local agencies, or persons authorized to make investment decisions on behalf of those local agencies. investing public funds, pursuant to this chapter, are trustees, and therefore, fiduciaries subject to the prudent investor standard:" and WHEREAS, per California Government Code Section 53646(a)(2), all local agency governing boards may render, to the legislative body of that local agency, a statement of investment policy, which the legislative body of the local agency shall consider at a public meeting, and shall also consider any change in the policy; and ® WHEREAS, per California Government Code Section 53607, the legislative body may delegate investment authority and responsibility to the Treasurer, and/or designated staff, for a period of one year subject to annual review and monthly review of transactions initiated by the designee; and WHEREAS, the City Council determines that future presentation of the Investment Policy is to occur when material changes are made, and include a corrected (red -lined) copy of the existing policy. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay that the Statement Policy, attached hereto, is adopted, and that the City Treasurer is hereby authorized to cam out this policy on behalf of the City Council. PASSED AND ADOPTED by the City Council of the City of Morro Bay, on the 280' day of January, 2014, by the following vote: AYES: Irons, C. Johnson, N. Johnson, Leage, Smukler NOES: None ABSENT: None JrL. IRONS, Mayor JANa BOUCHER. City Clerk • C CITY OF MORRO BAY INVESTMENT POLICY JANUARY 2014 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. GENERAL STRATEGY 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. 40 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. 2 Delegation of Authority: The following, positions and corresponding City personnel are ® delegated the power to invest the funds of the City: City Manager: "yea deer 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. n tJ 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 25% of the City's portfolio). repurchase agreements (no more than 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 • 0 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 is 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 .10 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. 51 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, fer examplestates, allew the City Council may te-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 1.1 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. 01 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 are credit risk and interest rate risk. Credit risk is the risk to an investor that an issuer will to default in the timely payment of interest and/or principal on a security. Interest rate risk is the risk that the market value of securities in the portfolio will fall due to changes in general interest rates. Limiting investment to the safest types of securities, pre -qualifying financial institutions, broker/dealers, and others with which the local agency will do business, and diversifying the number of issuers in an investment portfolio can minimize credit risk. Interest rate risk can be minimized by structuring the portfolio so that investments mature at the same time that cash is required or investing operating funds in highly liquid, shorter -term securities (e.g., U.S. Treasury bills or notes). Safekeeping and Custody: Rules derived to ensure the safety of an investment and within whose control the investment resides. Some examples include third -party safekeeping, developing lists of authorized financial dealers and institutions, developing internal controls, and using a delivery vs. payment standard for transactions. Local agencies should consider requiring securities to be held by third -party custodians, evidenced by timely statements illustrating the balance held by these custodians. Scope: The types of funds that the policy covers (e.g., operating funds, bond proceeds, etc.). In general, investment policies cover short-term operating funds. Longer -term funds such as retirement funds are covered by other policies. The investment of bond funds usually is governed by the bond documents such as the trust indenture. ® Standards of Care: The degree of care that a reasonably prudent person would exercise in the investment of local agency.funds. El 11 0 E RESOLUTION NO.08-14 ® RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA AUTHORIZING SUBMISSION OF APPLICATION TO THE RURAL TRAiN'SIT FUND GRANT PROGRAM THE CITY COUNCIL City of Morro Bay, California WHEREAS, the San Luis Obispo Council of Governments (SLOCOG) annually adopts the Federal Transit Administration (FTA) Section 5311 formula funds Program of Projects (POP); and WHEREAS, SLOCOG began the Rural Transit Fund (RTF) program with Resolution 02- 16 on December 5, 2002 by programming FTA Section 5311 funds to the 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 vdll be used solely for rural transit projects consistent with the original intent of the FTA Section 5311 program; and WHEREAS, there is $453,000 available for competitive distribution with project applications for the 2014/2015 RTF cycle due February 3, 2014. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City 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 a transit vehicle. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 28 s day of January, 2014 on the following vote: AYES: Irons, C. Johnson, N. Johnson, Leage, Smukler NOES: None V ABSENT: None ABSTAIN: None J ie L Irons. Mayor ATTEST: ® a,,, �� JaA4e Boucher. City Clerk El 11 RESOLUTION NO. 07-14 ® A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA APPROVING CONDITIONAL USE PERMIT (#UPO-371) — THE MORRO CREEK MULTI -USE TRAIL AND BRIDGE PROJECT AND THE ASSOCIATED NEGATIVE DECLARATION THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City Council of the City of Morro Bay conducted a public hearing at the Morro Bav Veteran's Hall, 209 Surf Street, Morro Bay, California, on January 14. 2014, for the purpose of considering the Negative Declaration and the Conditional Use Permit (9UPO-371): and WHEREAS, notices of said public hearing were made at the time and in the manner required by law; and WHEREAS, the City Council has duly considered all evidence, including the testimony of the applicant, interested parties, and the evaluation and recommendations by staff, presented at said hearing: and ® WFIEREAS, the City Council has reviewed this project in compliance with the California Environmental Quality Act (CEQA. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay as follows: Section 1. Findings. Based upon all the evidence, the Council finds: California Environmental Oualih, Act (CEQA) 1. That for purposes of the California Environmental Quality Act, an Initial Study was prepared for the project which resulted in a Mitigated Negative Declaration. The Mitigated Negative Declaration was routed to the State Clearinghouse for the required 30 day review and all other legal noticing and review has been met. The project applicant agreed to all mitigations. With the incorporation of these mitigations the project will have a less than significant impact on the environment. Conditional Use Permit Findines 2. That the project is an allowable use in its zoning district and is in accordance with and consistent with the certified Local Coastal Program and the General Plan for the City of Morro Bay. 3. That the establishment, maintenance, or operation of the use applied for will, under the ® circumstances of the particular case, will not be detrimental to the health, safety, morals, comfort and general welfare of the persons residing or working in the neighborhood of such proposed use and that the project will be consistent with all applicable zoning and plan requirements as indicated in the attached staff reports dated December 18, 2013 and January 14. 2014. 4. That the use will not be injurious or detrimental to property and improvements in the neighborhood or the general welfare of the City since the project, as conditioned, will be conducted consistent with all applicable City regulations, as indicated in the attached staff report dated December 18, 2013 and January 14, 2014. Section 2. Action. The City Council does hereby approve Conditional Use Permit mUP0-371 and the associated Mitigated Negative subject to the following conditions: Standard Conditions 1. This permit is granted for the land described in the staff report dated December 18, 2013, for the project depicted on plans dated October 29, 2013 on file with the Public Services Department, as modified by these conditions of approval, and more specifically described as follows: Site development, including the bridge and other features of the project, shall be located and designed substantially as shown on plans, unless otherwise conditioned. 2. Inaugurate Within Two Years: Unless the construction or operation of the structure, facility, or use is commenced not later than two (2) years after the effective date of this ® approval and is diligently pursued thereafter, this approval will automatically become null and void; provided, however, that upon the written request of the applicant, prior to the expiration of this approval, the applicant may request up to two extensions for not more than one (1) additional year each. Said extensions may be granted by the Public Services Director, upon finding that the project complies with all applicable provisions of the Morro Bay Municipal Code, General Plan and Local Coastal Program Land Use Plan (LCP) in effect at the time of the extension request. .3 Changes: Minor changes to the project description and/or conditions of approval shall be subject .to review and approval by the Public Services Director. Any changes to this approved permit determined not to be minor by the Director shall require the filing of an application for a permit amendment subject to City Council review. In no case shall modifications be made which alter the project description as stated in the Initial Study. 4. Compliance with the Law: (a) All requirements of any law, ordinance or regulation of the State of California, City of Morro Bay, and any other governmental entity shall be complied with in the exercise of this. approval, (b) This project shall meet all applicable requirements under the Morro Bay Municipal Code, and shall be consistent with all programs and policies contained in the certified Coastal Land Use Plan and General Plan for the City of Morro Bay. 5. Hold Harmless: The applicant, as a condition of approval, hereby agrees to defend, ® indemnify, and hold harmless the City, its agents, officers, and employees, from any claim, action, or proceeding against the City as a result of the action or inaction by the 0 • City, or from any claim to attack, set aside, void, or annul this approval by the City of the applicant's project; or applicants failure to comply with conditions of approval. Applicant ® understands and acknowledges that City is under no obligation to defend any legal actions challenging the City's actions with respect to the project. This condition and agreement shall be binding on all successors and assigns. 6. Compliance with Conditions: The applicant's establishment of the use and/or development of the subject property constitutes acknowledgement and acceptance of all Conditions of approval. Compliance with and execution of all conditions listed hereon shall be required prior to obtaining final building inspection clearance from the Planning Division, Public Works Division, Fire Department, Harbor Department, Police Department and the Building Division (as applicable). Deviation from this requirement shall be permitted only by written consent of the Public Services Director and/or as authorized by the Planning Commission/City Council. Failure to comply with these conditions shall render this entitlement, at the discretion of the Director, null and void. Continuation of the use without a valid entitlement will constitute a violation of the Morro Bay Municipal Code and is a misdemeanor. 7. Compliance with Morro Bay Standards: This project shall meet all applicable requirements under the Morro Bay Municipal Code, and shall be consistent with all programs and policies contained in the certified Coastal Land Use plan and General Plan for the City of Morro Bay. ® 8. Conditions of Approval on Building Plans: Prior to the issuance of a Building Permit, the final Conditions of Approval shall be attached to the set of approved plans. The sheet containing Conditions of Approval shall be the same size as other plan sheets and shall be the last sheet in the set of Building Plans. It is the applicant's responsibility to contact the Planning Division for inspections related to this project including all inspections relating to environmental mitigations. Please note that the City of Morro Bay requires 24 hour notice to schedule an inspection. Contact information is on the City's website at )vN w.morro-bay.ca.us Fire Conditions 1. Live Loading. The bridge shall be designed to bear sufficient load capacity to support the imposed loads of fire apparatus (CFC 102.1). Sheet BR-01 depicts Caltrans Standard H- 20 Vehicular Load Standard. 2. Bridge Width. The bridge shall provide adequate clear width to accommodate emergency fire apparatus. Sheet BR-01 depicts a 12 ft. 6 in. clear width, consistent with our apparatus specifications and Caltrans requirements. 3. Embarcadero Dirt Road Width. Fire apparatus access roads shall have an unobstructed width of not less than 20 feet exclusive of shoulders, except for approved security gates in accordance with Section 503.6, and an unobstructed vertical clearance of not less than ® 13 feet 6 inches (CFC 5011). As a result of the project, the existing dirt road width is reduced to approximately 17 feet in width. In addition to providing and maintaining the 0 E 20 foot width, the project shall provide No Parking signage on both sides of Embarcadero Dirt Road. ® 4. Bridge Entrance Security. The bridge entrances shall be designed to ensure that no vehicles, other than emergency vehicles, may have access to the bridge. The City Engineering Division recommends consideration of Standard MUTCD 9C.101, in the bridge design, to the satisfaction of the City Engineer. Public Works Conditions Conditions: 1. At the intersection of "Dirt" Embarcadero Rd and Coleman Dr. the dirt road shall be paved for a distance of 15ft minimum, to minimize gravel intrusion in the bike path and existing street. 2. Provide a new park sign for Coleman Park and relocate the drinking fountain in the park to the satisfaction of the City Engineer. 3. Due to maintenance issues with the current boardwalk, install a surface that sand will not be able to migrate under and durable enough that equipment can be used to remove the sand. The width of this walkway shall be wide enough to allow for the equipment to access. 4. Stormwater Management: The City shall implement the Post -Construction requirements required by the Central Coast Regional Water Quality Control Board (R3-2013-0032) for this project. Code Requirements: 5. The site appears to have more than one acre of land disturbance and therefore to requires the project to obtain a Construction General Permit from the Regional Water Board. Provide a copy of the S WPPP and the WDID provided by the Regional Water Quality Control Board. Reference the WDID on the first page of the plans. 6. Acquire an easement. for the portion of "Dirt' Embarcadero Rd that is not within City right-of-way/property. 7. Submit a signage and striping plan to the satisfaction of the City Engineer at the time of building permit submittal. Refer to the Manual on Uniform Traffic Control Devices (MUTCD) section 9B.01 the California supplement for signing and delineation. 8. A 2ft horizontal clearance is required from the paved edge of the bike path to any fixed object. An 8ft vertical clearance is required across the width of the bike path and pedestrian pathway. (per highway design manual for Class one bike lane) 9. The maximum cross slope of the multiuse path is 2%. Design the plans at 1-1.5% so that this percent is not exceeded in construction. Design all handicap slopes less than the ® required slopes so that these slopes are not exceeded during construction. u 0 C 10. The minimum vehicle travel lane width shall be 1 Oft. Therefore the total road width shall be 20ft wide minimum. It appears that the multiuse path currently does not allow for the minimum 20ft vehicle travel lanes. 11. The Bridge entrances shall be designed to ensure that no vehicles (other than Emergency vehicles) can access the bridge. MUTCD 9C.101 should be considered in this design and the design shall be to the satisfaction of the City Engineer. Harbor Conditions 1. The Emergency Beach Access ramp to the sand shall remain open and available at all times before, during, and after construction. Completed project shall not impede or alter a minimum ramp approach and ramp width of 25 feet. The planned crosswalk for the boardwalk and bike path on the south side of Morro Creek shall be designed without impediments that would inhibit the relocation of the 3,000 pound steel skid lifeguard towers which are relocated at the beginning and end of each summer season through this crosswalk area. Plannina Conditions 1. Applicant shall coordinate with regulatory agencies as necessary to provide a minimum level of lighting along the path to assure basic safety and security of the public. Said lighting will be no higher than 4 feet from the ground surface and shielded to prevent impacts to the visual beauty of the night skyline. Environmental Conditions 1. Applicant shall be subject to the mitigations as detailed in the Mitigation Monitoring and Reporting Program (MMRP) which is attached hereto as Attachment 1. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 14th day of January 2014 by the follownig vote: AYES: Irons, C. Johnson, Leage, Smukler NOES: N. Johnson ABSENT: None ABSTAIN: None J i IE L. IRONS, -Mayor ATTEST: W1k-- - JAME BOUCHER, City Clerk • 0 11 ® RESOLUTION NO.06-14 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA ADOPTING THE CITY OF MORRO BAY'S CLIMATE ACTION PLAN AS WELL AS THE ASSOCIATED NEGATIVE DECLARATION AS A QUALIFIED CAP THE CITY COUNCIL City of Morro Bay, California WHEREAS, the City Council of the City of Morro Bay conducted a public hearing at the Morro Bay Veteran's Hall, 209 Surf Street, Morro Bay, California; on January 14, 2014, for the purpose of considering the Negative Declaration and the Qualified Climate Action Plan; and WHEREAS, notices of said public hearing were made at the time and in the manner required by law; and WHEREAS, the City Council has duly considered all evidence, including the testimony of the applicant, interested parties, and the evaluation and recommendations by staff, presented at said hearing; and ® WHEREAS, global climate change is an issue that the State of California has determined to be of statewide concern and mandates local action throughout all of California; and WHEREAS, with the enactment of Assembly Bill 32 (AB32), the California Global Warming Solutions Act of 2006, local governments are tasked with addressing emission sources under their purview that contribute to climate change; and WHEREAS, in 2008, the City Council adopted a Resolution to join the International Council for Local Environmental Initiatives - Local Governments for Sustainability (ICLEI) in order to conduct a greenhouse gas (GHG) emissions inventory for the City of Morro Bay; and WHEREAS. in January 2011, the City received the GHG inventory report, which was updated in 2012; and WHEREAS, through support from the Pacific Gas and Electric Company (PG&E) Green Communities Program and Southern California Gas Company, the San Luis Obispo County Air Pollution Control District (APCD) secured funds to assist the cities of Arroyo Grande, Atascadero, Grover Beach, Morro Bay, Paso Robles and Pismo Beach to prepare a GHG emissions reduction plan for each jurisdiction and the region; and WHEREAS, the City Council has reviewed this project in compliance with the California Environmental Quality Act (CEQA) and has determined that a negative declaration ® can be adopted; and WHEREAS, the City Council has found that this project is consistent with the Local Coastal Program, General Plan and the environmental documents associated therewith-, and lJ u ® WHEREAS, the City Council finds after due study, deliberation and public hearing, the following circumstances exist: 1. The proposed plan will promote the public health, safety, convenience, and general welfare of the residents of Morro Bay. Evidence of global climate change has been observed in the form of increased global temperatures, rising sea levels, decreased snow -pack in mountainous regions, retreating glaciers, increased species extinction and range shifts and an increase in floods and wildfires. Furthermore, the international scientific community is convinced that deforestation, emissions from burning fossil fuels, and other industrial processes are the primary factors contributing to climate change. Locally, climate change may result in increased sea levels, decreased air quality, increased fire hazard and decreased water supply. The CAP provides the guidance and policies necessary to implement programs that will reduce greenhouse gases to minimize the effect of global climate change. 2. The proposed plan is in conformance with the purposes of the Local Coastal Program, General Plan and all applicable, officially adopted policies and plans. The CAP supports Local Coastal Program and General Plan policies that encourage reducing traffic, improving public transit service, increasing safety for pedestrians and bicyclists, reducing flood and fire hazards; improving air quality and promoting energy conservation. .environment. proposed plan will have no substantial adverse effect upon the environment. By reducing the local impacts of global climate change, the CAP will help to ensure that the City of Morro ® Bay remains an environmentally responsible community that is a desirable place to live. work and play. 4. A copy of the CAP, staff reports and communications are on file in the Public Services Department. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Morro Bay hereby adopts the Climate Action Plan and the associated Negative Declaration. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 14th day of January 2014 by the following vote: AYES: Irons, C. Johnson, N. Johnson, Leage, Smukler NOES: None ABSENT: None ABSTAIN: None ATTEST: GY/i12(Ac��i% ® JA " BOUCHER, City Clerk IrIt L. IRONS, , yor C i RESOLUTION NO. 05-14 ® RESOLUTION OF THE CITY OF MORRO BAY ADOPTING THE MEMORANDUM OF UNDERSTANDING WITH THE MORRO BAY POLICE EMPLOYEES 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 Peace Officers Association (MBPOA); and WHEREAS, the meetings between the MBPOA and the City have resulted in a mutual agreement and understanding to recommend that the employees represented by the MBPOA accept all of the terms and conditions, as set forth in a Memorandum of Understanding, an agreement attached and made a part of this Resolution herewith; and WHEREAS, the City now desires to provide said salaries, benefits and conditions to said police employees of the City of Morro Bay. NOW, THEREFORE, BE IT RESOLVED 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 Acting 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 14`h day of January, 2014 by the following vote: AYES: Irons, C. Johnson, N. Johnson, Leage, Smukler NOES: None ABSENT: None ATTEST: dJt l� J4MIE BOUCHER. City Clerk n LA 0 O J E L I NS. Mayor 0 C 0 Table of Contents ARTICLEI - PURPOSE ............. .............. .. . .... . . . .... ................................................................... ...... ARTICLE 2 - MANAGEMENT . ........ ........ I ................ ................. ARTICLE 3-RECOGNITION..... 4 ARTICLE 4 - ASSOCIATION BUSINESS 4 ARTICLE 5 - ALFFHM17 AGENTS._._.... 5 ARTICLE 6 - WITHHOLDING OF ASSOCIATION DUES AND INSURANCE 5 ARTICLE 7 - TERM — I ... 11 ... 11.1 ...... ARTICLES- RENEGOTIATIONS .. .... — .... .... ........ -- ...... .................. . 7 ARTICLE 9-ANTI-DISCRIMINATION .... .... . .. . . . . ... ...... ... ..... ... ...... . . .... ... 7 ARTICLE 10- WORK SCHEDULE._........__ ................. ... ... .. ... ..... .. ... . .......... .......... ...... 7 ARTICLE I I - VACATION41OLIDAY LEAVE._.... ARTICLE 12 - SICK ...... ..... ... .. .. ... . . .. . ... ... . ..... ...... ... . ........................... II ARTICLE 13 - BEREAVEMENT...... ... .. ... ..... ...... ......... .................. ---.12 ARTICLE 14 - RETIREMENT...... .......... ... ...... .... ". . - . . .. ........ . ... ............... ........... 12 • ARTICLE 15 - HEALTH BENEFITS...._.._ .......... ...... - ... ...... ... .. .. ....... .. .. . ... ... .— ..... .......................... 14 ARTICLE 16 - EDUCATIONAL INCENTIVES ..................... .... ......... .......... ................ Is ARTICLE17 - UNIFORM& ................ - ...... .......... ............ - .......... ................. - ... ...... ....... — ............ ........ 17 ARTICLE 18 - SALARIES ......... ........ -- ........................................... ....... .............................................................. As ARTICLE 19 - SPECIAL PAY PRACTPM ........................................................ ................................................... A8 ARTICLE 20 - BULLETIN BOARD. ........................................................................................................................ .20 ARTICLE 21 - PROBATIONARY PERIOD....__..__—.._ .............. ............. ....... ............. .................................... 210 ARTICLE 22 - DRUG AND ALCOHOL TESTING .................................................... ............................................. 21 ARTXIX 23 - GRIEVANCE PROCEDURE.. ... ...... ...... .............................. ......................................... ................ 21 ARTICLE 24 - NO STRUCE, SLOW -DOWN OR OTHER INTERRUPTION TO WORK ..................................... 222 ARTICLE 2.5 - FULL UNDERSTANDING. MODIFICATION, WAIVER ......... - ................................................... 22 ARTICLE 26 - SEVERABILITY .. . ............. I . ......... ..... . ................ . ............................................... ... --2.3 City of Mo Bay PDA FWd 21I2-21113 Page i 0 L MEMORANDUM OF UNDERSTANDING BETWEEN THE MORRO BAY PEACE OFFICERS' ASSOCIATION AND THE CITY OF MORRO BAY 20-12-2013-2014 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 Peace Officers' Association 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 July 1, 2042 _ _ - Formatted: FordooW Auto 2013 between the City of Morro Bay, referred to as CITY, and the Morro Bay Peace Officers' Association referred to as ASSOCIATION. 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 cant' 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 Police Department and determine policies and procedures and the right to manage the affairs of the Department. City of Morro Bay POA "--.,..o.- �o,��^ '' 2013-2014 Page I F_IL 2.12 To determine the existence or nonexistence of facts which are the basis of the management decision in compliance with State law. 2.1.3 To determine the necessity, organization, implementation, and termination of any service or activity conducted by the CITY or other government jurisdiction and to expand or diminish police services. 2.1 A To direct, supervise, recruitselect, 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 police 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. 2.1.7. To lay off employees of the Police 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 police facilities, methods, technology, equipment, operations to be performed, organization structure, and allocate or assign work by which the City police 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 Police Department functions and the right to contract or subcontract any work or operations of the Police Department. 2 1.11 To determine the size and composition of the Police Department work force, assign work to employees of the Police Department in accordance with requirements determined by the Police 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 Cm of Vom+Rm PO4 �22013y014 1"" 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. 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 Police Department and to take necessary action to achieve the goals and objectives of the Police 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 police 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 the Peace Officers' Bill of Rights as set forth in the Government Code. Cnc or Morro Bm POA Fn 4 X,.' 2013-2014 P"gc C1 0 rI 2.4 AUTHORITY IF 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. ARTICLE 3 - 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 Morro Bay Peace Officers Association. (hereafter "ASSOCIATION-) was designated by the City of Morro Bay (hereafter "CITY") City Council as the representative of City employees in the Law Enforcement Unit (hereafter "UNIT"). The UNIT is comprised of the following classifications: Sergeant Corporal Dispatch Supervisor Police Officer Code Enforcement Officer • Public Safety Dispatcher Crime Prevention Officer The term "employee" or "employees as used herein shall refer only to the foregoing classifications. 3.2 Employees working on a regular basis in a classified position, but less than full- time shall receive vacation and sick leave accruals on a pro -rated basis commensurate with hours worked. All benefits for new hires, including insurance benefits. will be allocated on a pro -rated basis commensurate with hours worked. 3.3 ELECTRONIC DEPOSIT: All employees hired after July 1, 1999 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 - ASSOCIATION BUSINESS 4.1 Employee representatives designated by the ASSOCIATION shall be granted time off, without loss of pay, to attend "meet and confer' sessions with the City Manager and/or his/her designee on subjects within the scope of representation City of Morro Bay POA Fowl--�2013?�014 Paz, 4 0 when such meetings are scheduled during regular working hours. Should such meetings extend beyond an employee representative's regular working hours, the employee representative shall be paid for only the regular working hours. It is understood that this time -off provision shall only apply to a maximum of three employees attending any one meeting between CITY and ASSOCIATION. Where exceptional circumstances warrant, the City Manager may approve the attendance at such meetings of additional employee representatives. The ASSOCIATION 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 operating needs and work schedules. 4.2 Nothing provided herein shall limit or restrict CITY management from scheduling such meetings before or after regular CITY or work hours. 4.3 Off -duty employees will not be paid for attending meet and confer sessions, nor will over -time be paid for same. 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 Peace Officers' Association principal authorized representative shall be the President of the Association, or his/her duly authorized representative (address P. O. Box 276, Morro Bay, CA 93443). ARTICLE 6 - WITHHOLDING OF ASSOCIATION DUES AND INSURANCE 6.1 It is agreed that CITY will withhold ASSOCIATION dues and ASSOCIATION group insurance premiums from the monthly pay of each regular City employee who is a member of the ASSOCIATION. ASSOCIATION agrees to provide CITY with individual ASSOCIATION member authorizations signed by the individual ASSOCIATION member authorizing CITY to make agreed deductions; specifying City of Mono Bay POA F"-,. 4-204^ 2013-2014 Page 5 0 • r1 rI the amount of each deduction; and authorizing CITY to issue a single check, payable to ASSOCIATION, 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 ASSOCIATION for the total amount of deductions withheld from the individual employees pay. The ASSOCIATION will be responsible for the accounting and disbursing of all such funds received from CITY. ASSOCIATION 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 and shall contain the following information. Employee name. social security number, job classification and department name. Also, such change notice must include a copy of the notice sent to the employees officially telling them of the change. 6.2 All ASSOCIATION members on payroll deduction for payment of ASSOCIATION dues on the day of signing of this Memorandum of Understanding must remain on payroll deduction for the life of the Agreement or so long as they remain members of the UNIT. ASSOCIATION members who establish payroll dues deduction during the term of this Memorandum of Understanding must remain on payroll deduction for the life of this Memorandum or so long as they remain members of the UNIT. ASSOCIATION members on dues payroll deduction may terminate such ASSOCIATION dues during the period of December 15-31 by notifying both the ASSOCIATION and the City Administrative Services Department of their termination of ASSOCIATION dues deduction. Such notification shall be in the form of a letter containing the following information. Employee name, social security number, job classification. and department name. 6.3 ASSOCIATION 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 6A DEPOSIT OF DEDUCTIONS It is agreed that CITY will deposit payroll deductions made payable to credit unions in which the CITY participates providing the ASSOCIATION makes arrangements for such services that are acceptable to both members and CITY under the same conditions as prevails for deductions as set forth above. CGn of.Vurro 6a, PUA Fowo -- 2013-2014 11aec t. 0 ARTICLE 7 — TERM Except as otherwise provided herein, the term of this Agreement commences on July 1, 2832-2013 and expires and is otherwise fully terminated on June 30, 20432014. ARTICLE 8 - RENEGOTIATIONS 8 1 The parties agree to commence renegotiations for a successor agreement for the period beginning July 1, 201-3-2014 as soon as administratively possible following January 1, 20132014. 8.2 The parties agree that, upon reaching a ground rules agreement, except by mutual agreement, no new subjects may be introduced into the process after the third (3rd) negotiations meeting. 8.3 City and MBPOA agree to conduct a joint compensation survey to be completed by April 1, 20132014. ARTICLE 9 - ANTI -DISCRIMINATION The CITY and ASSOCIATION 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 10.1 Alternative work schedules in compliance with the Fair Labor Standards Act may be implemented upon approval of the Chief of Police. No guarantee of work per day or per week, or of days of work per week is implied. The implementation of an alternate work schedule shall not incur any CITY obligation to allocate additional sworn/dispatch personnel, vehicles or equipment. All deployment of sworn/dispatch personnel shall ensure effective and efficient delivery of police protection to the community sufficient to continue during times of vacation, sick leave, and Department approved training. 10.2 OVERTIME 10.2.1 Non -Sworn Personnel Overtime is described as all work authorized by management and actually worked by the employee in excess of forty (40) hours worked in a City of Mono Bay POA "n9l NO 013.2014 I'acc 7 workweek. For the purpose of defining hours worked, vacation leave and holiday leave shall be considered as time worked in a workweek. All overtime as defined above shall be paid at one and one-half (1.5) times the employee's regular rate of pay. 10,2.2 Sworn Personnel Overtime shall be all work authorized by management and actually worked by the employee in excess of eighty (80) hours worked in a work period. For the purpose of defining hours worked, vacation leave and holiday leave taken shall count towards time worked for the purpose of overtime. All overtime as defined herein, shall be paid at one and one-half (1.5) times the employee's regular rate of pay. NOTE. Hours spent in court under what used to be termed "Court Appearance Pay' shall be considered and paid as part of this article, except for the "minimum pay'. which is now covered under Special Pay Practices. 10.2.3 Compensatory Time Off Effective with the ratification of this agreement. Compensatory Time Off (hereinafter "CTO") shall be earned at the overtime rate of one and one- half times the number of overtime hours worked as defined in Articles • 10 2 1 and 10 22 CTO may be accrued up to a maximum of 120 hours. Overtime earned in excess of the CTO maximum accrual shall be compensated in cash. 102.4 Compensatory Time Payoff Once annually, employees my elect a payoff of up to 40 hours of accrued compensatory time. Payment will be made on the second paycheck received in March upon 30 days advance notice 10.3 EMERGENCIES 10.3 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. 10.3.2 Such emergency assignments shall not extend beyond the period of said emergency. 10.3.3 Short staffing caused solely by absences due to employees taking approved paid leave shall not be considered an emergency. 10.4 SHIFT ROTATION Shift rotation shall coincide with the first day of a pay period. Cm of Morro BaN POA rH,.11 @,L- + 2013 M0 Pacc 8 0 ARTICLE 11 -VACATION/HOLIDAY 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. fi�i�7_LN11LeL`1 11.1.1 The following is a list of vacation annual accrual schedule by years of employment: SERVICE VACATION YEARS ACCRUAL 1-2 80 hrs 3-4 88 hrs 5 96 hrs 6-7 104 hrs 8-9 112 hrs 10-11 120 hrs 12-13 128 hrs 14-15 136 hrs 16-17 144 hrs 18-19 152 hrs • 20 or more 160 hrs 11.1.2 Employees' vacation accrual will be credited to employee on a pro -rated basis over 26 pay periods per year. 11.1.3 In determining priority of individual members for assignment of vacation periods, "seniority within rank" shall be the primary criteria. During the month of January of each year, each employee shall submit his/her preferences for vacation time off during that calendar year. It is agreed that every effort will be made to permit UNIT members to take vacation at a time and for periods as close to members' preference as possible consistent with the necessity for maintaining adequate manning to assure performance of police department functions. It is further agreed that every effort will be made to schedule individual vacation periods so as to maximize consecutive vacation days off consistent with annual vacation entitlement. 11.1.4 The maximum amount of vacation accrual is 226 hours. When an employee reaches the maximum accrual limit of 226 hours, the employee shall cease to accrue vacation leave until the usage of vacation causes the balance to be less than 226 hours. Employees who have a requested vacation denied or canceled within 60 days prior to reaching the 226 hour accrual maximum shall, upon request, City of Morro Bay POA ., Wo 2042-2013-2014 Page 9 �1 rI 0 C, J be given an additional 60 days following reaching the maximum to utilize vacation prior to ceasing to accrue. 11.2 HOLIDAYS 11.2.1 For the purpose of this agreement, the following days are the holidays for the employees in this UNIT: New Year's Day Martin Luther King, Jr. Day Lincoln's Birthday Washington's Birthday Memorial Day Independence Day Labor Day Veteran's Day Thanksgiving Day Day after Thanksgiving Christmas Day Day after Christmas Floating Holiday January 1 3rd Monday in January February 12 3rd Monday in February Last Monday in May July 4 1 st Monday in September November 11 4th Thursday in November Friday after Thanksgiving December 25 December 26 Varies 11.2.2 Employees who work a holiday listed above shall be paid one and one- haH (1.5) times their base hourly rate An employee is eligible for the one and one-half time pay only for the hours actually worked during the date set forth in section 11.2.1. Each employee will be credited eight (8) hours Holiday Leave for each holiday listed in 11.2.1 above or recognized under 11.2.3 below in addition to pay for time worked on that holiday. Holiday Leave hours shall be pro -rated annually and credited to employees at the rate of four hours per pay period 1123 Holidays Prodaimed by Government Officials -- It is agreed that when a holiday is proclaimed by the Mayor of the CITY then each regular member of the UNIT shall be granted compensation in the same number of hours as equivalent to the time -off granted other employees of the CITY. Such time -off shall be selected by the Police Chief. 11.2.4 Accumulated Holiday Leave may be scheduled and taken upon approval of the Police Chief/designee. 11.2.5 Employees may accumulate up to a maximum of 116 hours Holiday Leave per year. All Holiday Leave not taken by the pay period containing December 1 shall be paid off at the employee's current rate of pay. By request only, employees may be paid for a designated amount of accumulated Holiday Leave June 1 upon 30 days advance notice to Payroll. When an employee terminates employment with the CITY, employee shall receive pay for employee's current holiday balance at employee's current base hourly rate. (Cin m Mom, 11" FN I % "--'...�" 201%sQj4 l"', In NOTE: Subject to maximum accrual limits employee specified amounts of Holiday Leave may be transferred to Compensatory Time Off upon request in December only. Payroll must be notified by November 1 11.3 MILITARY LEAVE 11.3.1 Military Leave will be provided pursuant to City Resolution 65-01 and Military and Veterans Code 395.03 11.4 ASSOCIATION LEAVE 11.4.1 UNIT members will be allowed to contribute accumulated compensatory, holiday, or vacation time off to a special compensatory time account for the use of ASSOCIATION executive officers. ASSOCIATION officers or their designee(s) may, subject to all normal approvals and restrictions for time off requirements, receive up to a total of (40) forty hours per fiscal year off for attendance at meetings, seminars, etc. on behalf of the ASSOCIATION. At no time may the ASSOCIATION compensatory time account contain more than one hundred (100) accrued hours. ARTICLE 12 - SICK LEAVE 12.1 Sick leave shall be earned at the rate of eight hours each calendar month of service. There is no limit on the amount of sick leave that may be accumulated by members of this UNIT. 12.2 Based on individual utilization of paid sick leave in the preceding calendar year, employee may convert unused accumulated sick leave into paid vacation leave once during the following fiscal year, pursuant to the formula below: 8 Hour 10 Hour 12 Hour Maximum Conversion Schedule Schedule Schedule To Vacation Leave 0 0 0 48 hours .25 to 8 25 to 10 25 to 12 36 hours 8.25 to 16 10.25 to 20 12.25 to 24 24 hours 16.25 to 25 20.25 to 30 24.25 to 36 12 hours over 25 over 30 over 36 0 hours At least 160 hours shall remain in employee's sick leave bank after any conversion is authorized. City of Morro Bay POA F�2013-20 Page I I C, J 0 Ll 0 12.3 At termination, unused accumulated sick leave is not compensable, however, upon retirement, may be converted to additional time as provided by the PERS sick leave option. ARTICLE 13 - BEREAVEMENT Employees are permitted to utilize three (3) days of paid bereavement leave per occurrence in the case of the death of members of the employee's immediate family (as defined in the Personnel Rules). The three (3) days shall be regardless of shift length, subject to a maximum of 12 hours per day. Any necessary extra time shall be taken from the employees accrued sick leave. In cases where sick leave is exhausted, vacation time shall be charged Paid leave beyond the initial three (3) days is subject to department approval. ARTICLE 14 - RETIREMENT 14 1 It Is the employees obligation to contribute the employee's contribution to PERS. The employee shall pay his/her own contribution by payroll deduction consistent with the provisions of 414 (h) 2 of the Internal Revenue Code. (9% PERS Safety and 8% current PERS Non -Safety employees and 7% second tier PERS Non - Safety employees.) 14.2 The ASSOCIATION understands and agrees that employees bear the risk of payment of any increases in the employee contribution above the current percentage made by action of the PERS or the state legislature. 14.3 Parties agree that CITY payment of PERS contributions are made based upon tax treatment currently permitted by the State Franchise Tax Board and the IRS. 14.4 Should current tax treatment change, the ASSOCIATION and the employee 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 PERS contribution. Should current tax 14.65 For Sworn employees hired prior to September 17, 2011 (or such later date as the PERS contract is amended pursuant to Section 14.7-6 below) the CITY agrees to continue to provide PERS Safety employees in this UNIT with a retirement benefit program through the Public Employees Retirement System (PERS) as follows: 14.65.1 Highest Single Year Compensation effective 6-22-91 (Section 20042) 14.65.2 Sick Leave Credit effective 6-24-89 (Section 20965) 14.65.3 4' Level Survivor Benefit (Section 21574) 14.65.4 1959 Survivor Benefit effective 6-24-89 (Section 21580) Cris M %loan W\ N b\ r.,m2012-2013-COL Paez I: f _ _ Fa a : 2, lr4erc Left: 0', FR Ina: 0-, Lne sp&XV: 594e, Tab stops: Not at 0.5" + 1'+ 1.5'+ 2"+ 2.5+ 3-+ 3S+ 4'+ 4.5" + 5' + 5.5' + 6' 14.65.5 Military Service Credit effective 6-9-98 (Section 21024) 14.65.6 3% @ 50 Retirement Formula 14.65.7 Pre -Retirement Optional Settlement 2 Death Benefit 14.n_For Swom employees hired on or after September 17, 2011 (or such later date as _ _ - maeoea: c« a, seo or o.z �c the PIERS contract 1s amended pursuant to this Section) the CITY will provide a Fe,1eittBd, Cadmwd W 02 u retirement benefit program through Public Employees Retirement System (PERS) the retirement benefits set forth in 14.6-5 above will be modified and reads as follows. 14.7¢.1 36 consecutive months final compensation 14.76.2 Sick Leave Credit effective 6-24-89 (Section 20965) 14.79.3 4" Level Survivor Benefit (Section 21574) 14.79.4 1959 Survivor Benefit effective 6-24-89 (Section 21580) 14.79.5 Military Service Credit effective 6-9-98 (Section 21024) 14.76.6 3% @ 55 Retirement Formula 14.76.7 Pre -Retirement Optional Settlement 2 Death Benefit 14.87 For Non -Sworn employees hired prior to September 17, 2011 (or such later date as the PERS contract is amended pursuant to Section 14.9 8 below) the CITY agrees to continue providing PIERS Miscellaneous employees in this UNIT with the following PIERS benefits: 14.97.1 Highest single year compensation 14.87.2 2.7% at 55 Retirement Formula 14.87.3 Sick Leave Credit Option (Section 20965) 14.87.4 Military Service Credit effective 4-13-00 (Section 21024) 14.87.5 Pre -Retirement Optional Settlement 2 Death Benefit • 14.87.6 1959 Survivor Benefit, Level 4 (21574) 14.98 For Non -Sworn employees hired on or after September 17, 2011 but before January 1.2013 (or such later date as the PIERS contract is amended pursuant to this Section) the retirement benefits set forth in 14.8-7 above will be modified and reads as follows: 14.98.1 36 consecutive months final compensation 14.98.2 2% at 60 Retirement formula 14.98.3 Sick Leave Credit Option (Section 20965) 14.98.4 Military Service Credit effective 4-13-00 (Section 21024) 14.Q.5 Pre -Retirement Optional Settlement 2 Death Benefit 14.98.6 1959 Survivor Benefit, Level 4 (21574) compensation. 14.9 Pursuant to the California Public Emplovees' Pension Reform Act of 2013 (PEPRA) effective January 1 2013 Sworn employees hired who meet the definition of new member under PEPRA, will be covered by the 2.7% to 57 retirement formula with the 36 highest months final compensation provision, and shall pay a member contribution rate of fifty (50) percent of the expected normal cost rate with plan options as follows: `------------------------------------------------ Pornoftd: Font Arias 14.9.1 Sick Leave Option (Section 20965)---------------- Formatted: Forn:Anai City of Mono Bey POA r:_-� Win„ 2013:2914 Page 13 �J 14.9 2 1959 Survivor Benefit 4th Level (215741 Fars.&,* Font Arw 14.10 Pursuant to the Califomia Public Emplovees' Pension Reform Act of 2013 shall pay a member contribution rate of fifty (50) percent of the expected normal cost rate `---------- Sick L-------------------------------------------------- Forraaree& Fmt 12 Pt 0 14.1.1 eaveoption(Section20965)______ Fanwteed:t Faua 14.103 Military Service Credit (21024)______ ___ Farrarre�Fcm:szpr 14.10.4 1959 Survivor Benefit 4th Level (216741 - -- - - -- _ - _ _ - FarWAVArk Font 12 pl ARTICLE 15 -HEALTH BENEFITS 15-1 HEALTH INSURANCE 15.1 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 #M 151nx)* to the alive employee's medical____ _ - FnMrasfuFnhAMw11b.suve vas 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. 15.1.2 UNIT employees receive a cafeteria plan contribution (including the amount required by PERS in 15.1.1 above) as follows: ------------ �rr�K:r-�nr-�erner�c�.T.n�n�n _ 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 15.1.4 Effective January 1, 2009 cash -back was eliminated except as provided herein. Employees receiving cash -back in December 2008 shall continue to receive the same amount for the term of this agreement except that if a cash -back employee changes the structure of their insurance (add City of Morro Bay POA A�2013-XL4 Page 14 0 dependents, delete dependents, drop insurance with the CITY, change carriers, etc.) cash -back is not an option. Cash -back will be eliminated for employees during the open enrollment period in 2012 for calendar year 2013, and in subsequent years, if said employees are required (because of eliminated plans) to change carrier. In the event an employee receiving cash -back is forced to make a plan change because the CITY changes plans and/or ceases to contract with PERS for insurance, that employee will maintain cash -back. 15.2 DENTAL AND VISION INSURANCE: 15.2.1 During the term of this Agreement, the CITY shall offer dental/life and vision insurance and each employee shall be required to carry both dentalAife and vision insurance for self. Life Insurance is provided at $2030 000 per employee. The following rates are effective January 1 2422013. Vision Dental Life Totals City a s EL' a s Em nl 57.64 42. 7 S5.70 SK.21 553.28 �.9,} Emolovee + I 114.32 1 I S5.70 I .58 12 �� Em2loyee+2+ 19.52 15 19.56 5.70 144.78 132.57 12.21 CITY will pay the remaining premium for dentalAife and vision. 15.3 Any coverage made available to future retirees beyond COBRA time requirements shall be paid for by the retiree. 15.4 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, 20122013. 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, 20132014. Cit} or Morro Bay POA c'--'..o.—'912 2013- 14 Page 15 • CJ ARTICLE 16 - EDUCATIONAL INCENTIVES 16.1 P.O.S.T. CERTIFICATES 16.1.1 For UNIT members hired prior to January 1. 1998 and possessing the Intermediate P.O. S.T. Certificate. CITY agrees to pay three percent (3%) over the base salary range and step schedule established for the position classification held by the UNIT member and as specified herein under Article 18, Salaries. 16.1.2 For UNIT members hired prior to January 1. 1998 and possessing the Advanced P.O. S.T. Certificate, CITY agrees to pay six percent (6%) over the base salary range and step schedule established for the position classification held by the ASSOCIATION member and as specified herein under Article 18. Salaries. 16.1.3 For Sworn UNIT members hired on or after January 1, 1998. CITY agrees to pay $120 per month for P.O.S.T. certificates as follows. Intermediate Advanced Sergeant $120 $120 Corporal $120 $120 • Officer $120 $120 16.1 4 For non -sworn UNIT members possessing the POST Records Supervisor Certificate, CITY agrees to pay $25 per month. 16.1.5 The CITY agrees to pay for Dispatcher P.O. S.T. certificates as follows: Intermediate Advanced $120/month $120/month 16.2 COLLEGE DEGREES 16.2.1 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 $1200 annually 16.2 2 If an employee's job description requires an AA degree and the employee has a Bachelor's Degree, the employee will receive only the difference between an AA and a BA degree. or $600 annually. 16.2.3 If an employee's job description requires a degree or if an employee is promoted to a classification that requires a degree, the employee shall not Ciq of Morro flay POA .4 wil 2912 2013-_'9]4 Pecc I!: E 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 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 1998 is revised to require a degree not previously required for the position, the employee shall, for the term of the MOU, continue to receive the amount of the education incentive pay received in the lower position or previous job description. 16.2.4 Based on the new job descriptions for all classifications which were adopted in May 1996, 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 16.2.3 above. 16.2.5 Employees hired on or after January 1, 1998 shall not be eligible for this incentive. ARTICLE 17 - UNIFORMS 17.1 Uniforms for employees shall be as set forth in Morro Bay Police Department Policy Manual Section 1046, Uniform and Equipment Regulations and Specifications. 17.2 Newly hired employees shall receive a full uniform issue and will receive full uniform replacement as needed until the following July 1. Effective July 1 after hire, such employees shall commence receiving an annual uniform allowance. 17.3 The following uniform articles are covered by the uniform allowance and must meet the department uniform standards: a. Uniform pants b. Uniform shirts - long and short sleeves C. Dress belt d. Ties e. Duty jacket f. Uniform patches 17.4 All maintenance, tailoring and other alterations will be at the employee's expense. 17.5 All optional equipment will be the responsibility of the employee. City of Morro Bay POA e'-_'.,.�-" 2013-2014 Pee, 17 • 0 17.6 All safety equipment originally issued and replaced by the department remains the Department's property. 17.7 The annual uniform allowance for sworn officers shall be $1000.001050.00. The annual uniform allowance for dispatch shall be $700.00750.00. 17 8 The CITY agrees to repair or replace any personal article damaged while on duty. including uniform items as listed above. providing that such article is a reasonable and necessary part of the employee's attire. ARTICLE 18 - SALARIES 18.1 ^° • r, Effective the pay a _ _ - rarmametl: we: (perwn) Mal, rz a Period including January 1. 2014, salaries shall be increased by two (2%) percent ARTICLE 19 - SPECIAL PAY PRACTICES 19.1 STANDBY 19.1 1 Standby duty is defined as that circumstance which requires an employee so assigned to: isBe ready to respond immediately to a call for service. Be readily available at all hours by telephone. and Refrain from activities which might impair his/her assigned duties upon call. 19.12 Employees on standby shall be compensated for two (2) hours computed at their straight hourly base rate per twenty-four (24) hours of authorized standby time. The twenty-four (24) hours time period is defined as 0700 hours to 0659 hours the following day. Subject to the maximum accrual provisions of Section 10.2.3 employees may elect to receive two (2) straight time compensatory time off hours in lieu of paid standby compensation. 19 1.3 Court standby — Employees on court standby will receive two (2) hours computed at their straight hourly base rate to be available for court callback on off duty days- Subject to the maximum accrual provisions of Section 102 3 employees may elect to receive two (2) straight time compensatory time off hours in lieu of court standby compensation. 19.2 CALL BACK 19.2 1 Call back is defined as that circumstance which requires an employee to unexpectedly return to work after the employee has left work at the end of the employee's work shift or work week, except that, an early call in of up to two (2) hours prior to the scheduled start of a work shift shall not n oI Mom, Ba, PQA ,.�2013-'�01; Pngr Id 0 constitute a call back; or, employee is required for off -duty court appearance. 19.2.2 Required off -duty court appearance. Employees called back shall receive either a two (2) hour minimum computed at straight hourly base rate or pay for all time actually worked, whichever is greater. An employee shall not receive overlapping minimums. 19.2.3 An employee shall not receive standby pay for the same hours he/she received callback pay. 19.3 DISPATCHER TRAINING PAY 19.3.1 An employee who is in the classification of Dispatcher and is assigned to train a new Dispatcher, shall receive an additional one -dollar ($1.00) per hour when he/she actually performs the duties of a Dispatch/Trainer. 19.3.2 The parties agree, the Chief has the right to assign the Dispatcher Training function to any qualified Dispatcher. 19.4 OUT OF CLASS ASSIGNMENT 19.4.1 The term "out -of -class assignment" shall be defined as the full-time performance of the significant duties of a vacant, funded position in one classification by an individual in a classification with a lower compensation range. 19.4.2 If an employee is required to work in an out -of -Gass assignment for more than fifteen (15) workdays, within a calendar month his/her department head shall, with prior approval of the Administrative Services Director, make an acting appointment. Such acting appointment shall be effective on the sixteenth (16th) workday within a calendar month of the out -of -class assignment. 19.4.3 An employee on an acting appointment shall receive a one (1) step increase within the employee's current classification salary as provided by City's Personnel Rules and Regulations. In the absence of available steps within his/her current range, the employee shall be granted a five percent (5%) increase above his/her current base salary. 19.5 BILINGUAL PAY Qualified employees who possess the necessary ability and who are assigned to perform services as an interpreter in Spanish, shall be eligible for additional stipend depending upon the employee's level of bilingual expertise. Qualifications shall be determined by the CITY. 19.5.1 For those employees who conduct conversational assistance in Spanish on a regular basis, seventy-five dollars ($75) per month stipend is available. City of Morro Aar POA F�2013-2014 Page 19 0 19 5 2 For those employees who interpret and explain legal documents, conduct conversational assistance, and write documents for those persons who speak only Spanish, One Hundred Fifty dollars ($150) per month stipend shall be available. 19.6 FIELD TRAINING OFFICER ASSIGNMENT PAY Individuals in the classification of Police Officer formally assigned a trainee by the Chief of Police or his/her designee shall be compensated at the rate of twelve ($12) dollars per scheduled shift. Compensation will be paid for a scheduled shift only. 19.7 SENIOR OFFICER ASSIGNMENT PAY Up to four (4) individuals may be assigned as Senior Police Officers This assignment is not a permanent promotion to a higher classification. Continuation in the assignment is based on an annual performance evaluation of `Meets Satisfactory Performance Standards" as well as at the discretion of the Chief of Police. Senior Police Officers will be compensated at the rate of 5% above base pay for the term of the assignment While receiving Senior Officer Assignment pay, employees are not eligible for Field Training Officer pay. • Incumbents in the Corporal classification will maintain status in the Corporal class, and maintain the terms and conditions of the classification as they existed at the time of their promotion, however, if the incumbents in the Corporal classification leave the positions (due to promotion, retirement, etc... ), the Corporal classification revert to assignments of Senior Officers as provided above No individual may be concurrently assigned as both a Senior Officer and Detective 19 8 DETECTIVE ASSIGNMENT PAY Up to two individuals may be assigned as Detectives The Detective assignment is not a permanent promotion to a higher classification. Continuation in the assignment is based on an annual performance evaluation of "Meets Satisfactory Performance Standards" as well as at the discretion of the Chief of Police. Detectives will be compensated at the rate of 5% above base pay for the term of the assignment Incumbent Corporals may apply for, and be appointed to the Detective assignment. If appointed. Corporals will maintain status in the Corporal class and maintain the terms and conditions of the classification as they existed at the time of their promotion. When the Detective assignment ends. the Corporal may be placed into a Senior Officer assignment or a regular officer position, still in the Cm of Morro Ba% POA r'mil 2012 201121 a I'J" 0 Corporal classification with the terms and conditions of the Corporal classification being maintained. No individual may be concurrently assigned as both a Senior Officer and Detective. ARTICLE 20 - BULLETIN BOARD 20.1 CITY agrees to furnish space for ASSOCIATION -purchased bulletin boards of reasonable size for the posting of ASSOCIATION material. Location of such bulletin boards shall be at the Police Station in an area commonly used for briefings or meetings. 20.2 ASSOCIATION agrees it shall not use bulletin boards to ridicule, defame, or harass any City employees, officer or agent. ARTICLE 21 - PROBATIONARY PERIOD The parties agree that any appointments to fill vacant positions shall be subject to the following probationary periods: Sworn personnel 18 months Non -sworn personnel 12 months ARTICLE 22 - DRUG AND ALCOHOL TESTING ASSOCIATION agrees to the terms of the Substance Abuse and Testing Policy adopted by the Morro Bay City Council pursuant to Resolution No. 14-99. ARTICLE 23 - GRIEVANCE PROCEDURE 23A The ASSOCIATION 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 every 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. CITY further agrees that any payment of overtime arising because of UNIT 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 City of Morro Bay POA r tW—_V42 2013-2014 Page 21 11 1] time -of 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. Upon entering the work location, the steward shall inform the department head and supervisor of the nature of his/her 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. 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. 23.2 PURPOSE The primary purpose of this procedure shall be to provide a means whereby an employee. without jeopardizing his employment, can express a personal grievance relating to his wages, hours of work, and working conditions, and obtain a fair and equitable disposition of his grievance. • 233 ASSOCIATION REPRESENTATIVE The CITY agrees that the ASSOCIATION may designate a representative to represent employees in the processing of grievances The ASSOCIATION shall furnish the City Manager with a written list identifying by name and work location all regular and alternate representatives and the list shall be kept current by the ASSOCIATION at all times. The representatives are to begin investigating grievances only after the employee has tried to resolve the problem with his/her immediate supervisor and the two parties have failed to reach resolution of the problem 23.4 PROCEDURE Procedures shall be in accordance with Resolution No. 46-74 and any amendments thereto. ARTICLE 24 - NO STRIKE, SLOW -DOWN OR OTHER INTERRUPTION TO WORK 24.1 ASSOCIATION agrees not to cause, authorize, advise. encourage or participate in 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 slow -down of work. The term 'other concerted action" includes picketing or boycott activities by the ASSOCIATION. Ciq of Morro Bx} PO.A "--'.-.,e.-�201}?013 I'dge __ 11 24.2 Participation by any employee in any activity resulting in interruption of work or other concerted action or use of paid or unpaid leave for these purposes shall subject employee to disciplinary action, up to and including, discharge. When the City Manager has reason to believe that such leave is being used as a method of interruption work, the burden of proof of illness is upon the employee. Doctor's statements ran be required in accordance with Resolution No. 34-83, Personnel Rules & Regulations, Section 13.B.4. ARTICLE 26 - FULL UNDERSTANDING, MODIFICATION, WAIVER 25.1 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. 25.2 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. 25.3 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 ASSOCIATION. 25.4 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 26 - SEVERABILITY If any provision(s) are held to be contrary to law by a court of competent jurisdiction, such provision 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: Date: MORRO BAY PEACE OFFICERS ASSOC. CITY OF MORRO BAY Enrique S. Cantu, President AndFea K. Luekw, G lyManWLusan -- rwm�eeea Uderc. tan: I", H;n I 3.5', Slayton, Admin. Services Dir Tab AWS:notat o^+ 0.5^+ r^+ r.s+ 2"+ 2.5+ 3'+ 3.5'+ 4"+ 4.5"+ 5'+ 5.5' + 6' + 6.5' City of Morro Bay POA Am. -�2013-2014 Page 23 0 Robbyn Smith, Employee Representative aurae Goforth. Human Resources Analyst Dale Cullum, Employee Representative William Avery, • Cm of Morro BaT POA i f R,r--'_Ol 3-201- .I L Page :4 u • uwr (M).A e= (soo)� inm Req.ououy.ow�y �0 40 vNavl �+Ys.wa w+� Ise PW30uwir�MJ�wu F/PY �+F®'aari �� NP w wuy wu a! a Oweu Y{Aux uy mYegmarm{wY i�04auoc9NPgbi9pMl �4'ww�pP MW�Ah swap m�wwAA WOw40�VwcYlm b�LL lNB1ie/NIlr9w I �� ap3 vYP � Y wr®d Ye N M�PA� W p I m Ne�rawy uNt�l�wwwf w4 uNHO wy �•w�� b5 �wi ova we usuuy (sou) sa; aesszey (saol cuss vJ'/ra ouon P� �nwli sus Wwuyvogi 4w+uny 4� ABS ouoyy;o E11D Yv3-dI ;+Dual. Iou =P 3, �1_0 (9.3 ue„avuuoa •(JWcovi oN l9'3 R•^9 U -3 -Wmw w1 6d ax!s I'wW-3 •YVW p>p ava Y3 (5'3 . •wv uv oN (E-3 I-e; vuil 1e an suety (('3 •o..• .o; uo:eay NO tS 'd 1010 16Z951 ------------------------------------------------------------------------ I"s ION Ipsaa (s)Id u01}Yui;s40 geed x1 AjOw;A 409E 4POW 'ON °1'j • WdLI:l MZ '51 "vr :"11/4140 )z ( _ _ _ (WdBE l 4IOZ 'S1'uep ) IIOdDj ItMs UOII?)iunwmoo 1 'd 0 r �_ RESOLUTION NO. 04-14 • RESOLUTION OF THE CITY OF MORRO BAY ADOPTING THE AGREEMENT WITH THE MORRO BAY MANAGEMENT EMPLOYEES AND RELATED COMPENSATION THE CITY COUNCIL City of Morro Bay, California WHEREAS, representatives of the City of Morro Bay (CITY) and representatives of the Management Group met and discussed the terms and conditions of employment, through the Meet and Confer process; and WHEREAS, the meetings between the Management Group and the CITY have resulted in a mutual agreement and understanding; and WHEREAS, the employees represented by the Management 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 Management Group of the CITY. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Morro Bay • does hereby adopt this Resolution adopting an Agreement on the compensation and working conditions for the Management Group for the period July 1, 2013 through June 30, 2014, and authorizes the Acting City Manager to execute all necessary documents to implement said changes. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a meeting thereof held this 14'h day of January, 2014 by the following vote: AYES: Irons, C. Johnson, N. Johnson, Leage, Smukler NOES: None n:7.9901tt W4mo - ATTEST: III ' Q� II : • r L J lJ AGREEMENT BETWEEN THE CITY OF MORRO BAY AND THE MANAGEMENT EMPLOYEES AGREEMENT WITH MANAGEMENT EMPLOYEES JULY 1, 20123 — JUNE 30, 20134 1. RECOGNITION 1.1 the Management Group is comprised of the following classifications: Commander, City Engineer. Senior Civil Engineer. Ut"itiesand -_Capital Projects Manager, Planning Manager. Building Official. Wastewater Division Manager, Pu Superintendent. Information Systems AdministraterTechnician , Accountant. Management Analyst. c....:r.:_.. S.._._:_.__,,.._. Senior Planner. P--',�,�, efe-" ;,t_ Support Services Manager. Recreation and Parks Maintenance Superintendent. I larbor Operations Manager, Harbor Business Manaeer. The tern "employee" or `employees" as used herein shall refer only to the foregoing classifications. 1.2 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-rata basis commensurate with hours worked. All benefits for new hires, including insurance benefits, will be allocated on a pro - rats basis commensurate with hours worked. 1.3 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. 2. TERM Except as otherwise specifically provided herein, the term of this Reseiatie Agn-ement commences on July 1. 20143. and expires, and is otherwise fully terminated, at midnight on June 30. 20124. 3. ANTI -DISCRIMINATION The CITY and Management Group mutually agree they will not discriminate against employees for the exercise of their rights under the State of California Government Code Section 3502. 4. WORK SCHEDULE This article is intended to define the normal hours ofwork. and shall not be construed as a guarantee of work per day or per week, or of days of work per week. 4.1 WORKDAY: The normal workday shall be eight (8) hours of work in a twenty-four (24) consecutive hour period, except in cases of emergencies. Altemative work schedules can he implemented 11 upon approval of the City Manager. 1 4.2 WORKSHIFT: Employees shall be scheduled to work on regular work shifts having regular starting and quitting times. Except for emergencies, employees' work shifts shall not be changed without 24-hour prior notice to the employee. 4.3 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 am. and ending seven days later on Friday night at 11:59 p.m., except in cases of emergencies, or at the specific request of an employee and approval of department head. Nothing herein shall be construed to eliminate currently established irregular work schedules. 4.4 OVERTIME COMPENSATION Employees in this group are considered "exempt' employees within the definition of FLSA, and do not receive overtime for time worked outside of the regular work schedule. 4.5 EMERGENCIES: 4.5.1 Nothing herein shall be construed to limit or restrict the authority of management to make temporary assignments to different or additional locations, shifts, or duties for the purpose of meeting an emergency. Such emergency assignments shall not extend beyond the period of said emergency. 4.5.2 Short staffing caused solely by absences due toemployees taking approved paid leave shall not be considered an emergency. 5. VACATION LEAVE 5.1 During the term ofthis ResekttienAgreement employees shall earn paid vacation leave atthe following rate: Service Years Entitlement in Days I thru 2 10 3 thru 4 11 5 thru 6 12 7 thru 8 13 9 thru 10 14 11 thru 12 15 13 thru 14 16 15 thru 16 17 17 thru 18 18 19 thru 20 19 21 or more 20 5.2 The standard for vacation time is eight (8) hours equals one (1) day. lJ • 0 n u I L 41 53 MAXIMUM ACCUMULATION It is recognized that long-standing accumulations ofvacation time exist for some employees. In order to compensate employees for this unused vacation time and reduce this liability for the City', CITY and Management Group agree on the following policy: 5.3.1 Unused vacation leave may be carried over into the following year to a maximum of 4300 hours. Employees exceeding the 4300 hour maximum as of the pay, period containing November I of each yearwill be paid off for vacation time exceeding the 4300 hour maximum. The CITY shall make said payment with the pay period containing the December 1 of each year. Payment shall be computed based upon the employee's base hourly raze of pay as of June 30 of the same calendar year. At the employees' further option. said payment may be put into deferred compensation. 5.3.2 Employees separating from the CITY are entitled to pay for accumulated vacation_ 5.4 Members of the Management Group may exercise the option to convert into cash a maximum of forty (40) hours of accrued vacation leave each fiscal year. Such conversion shall be computed at the employee's current base hourly rate on an hour per hour basis. Note: All lease time (vacation, sick lease, holiday, etc.) will betaken off on an hour for hour basis equaling employee actual time off, regardless of accumulation rates. 6. HOLIDAIS 6.1 For the purpose of this ResolutioHAereement, the following days are the holidays for employees in this group: Independence Day July 4 Labor Day I st Monday in September Veteran's Day November 11 Thanksgiving Day 4th Thursday in November Day after Thanksgiving Friday after Thanksgiving Christmas Dav December 25 New Year's Day January I Martin Luther King, Jr. Day 3rd Monday in January Lincoln's Birthday February 12 Washington's Birthday 3rd Monday in February Memorial Day Last Monday in May Floating Holiday Varies Floating Holiday Varies 6.2 Holidays falling on Saturday shall be observed on the preceding Friday, and holidays falling on Sunday shall be observed on the following Monday. 6.3 One holiday equals eight hours. For those employees working the 9/80 alternative work schedule one holiday can equal 9 hours. Accrued holiday time may he taken in less than eight hour increments. 6.4 It is agreed that when a holiday is proclaimed by the Mayorofthe CITY, then each employee shall be granted time -off in the same number of equivalent work hours. Such lime -off shall be approved by the Department I lead. 6.5 Employees may accumulate up to a maximum of 48 hours holiday time. Hours of holiday time accumulated over 48 hours will he paid off. When an employee terminatesemployment with the CITY, he/she shall receive pay for his/her current holiday balance up tort maximum of 48 hours at his/her current base hourly rate. 6.6 CITY's denial of requested holiday time off shall be neither arbitrary nor capricious. 7. ADMINISTRATIVE LEAVE 7.1 Each member of the Management Group is eligible to cam ev n ,-two (6472) hours of administrative leave per fiscal year. The time during the fiscal year at which an employee may take administrative leave shall be determined by their Department Head, with regard for the wishes of the employee and particular regard for the needs of the services. 7.2 Up to 2448 hours of administrative leave may be rolled over into the following fiscal year, not to exceed 120 hours. Upon termination, employee will be paid the pro -rate amount commensurate with that portion of the fiscal year worked. 7.3 Each memberof the Management Group may be eligible for additional administrative leave upon authorization from the City Manager. Such administrative leave may be granted when employees are required to perform their responsibilities in times of immediate threat to public health, safety and property, beyond their regular work schedule. The approval of such time is not guaranteed, and sole discretion without appeal rights rests with the City Manager, and is expressly eliminated from the Grievance Procedure. Recognizing the impact of the Fair Labor Standards Act, employees of the Management Group will be sensitive to the operational needs and financial limitations of the CITY, and will therefore attempt to limit the use of overtime by employees in their respective areas of responsibility. 7.4 Each new memberof the Management Group, hired during the term of this agreement, shall, at the time of hire, be eligible for forty (40) hours of administrative leave. Use and accumulation of such leave will be in accordance with the other provisions of Article 9, except in the event that employee terminates before completing probation, administrative leave shall not be compensated. 8. SICK LEAVE 8.1 During the term of this ReseltHienA. reement,sickleaveshallbeearnedattherateofone(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 CJ CI n u an employee may accumulate. 8.2 Based on individual utilization of paid sick leave in the preceding fiscal year, employee may convert unused accumulated sick leave into paid vacation leave once during the following fiscal year, pursuant to the formula below: Sick Leave Utilization/F.Y. Sick Leave to Vacation Leave 0 hours 96 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 0 At least 160 hours shall remain in employce's sick leave bank after any conversion is authorized. 8.3 Upon the service retirement of an employee who has more than ten (10) )ears of service with the CITY, said employee shall be entitled to receive payment for up to the first seven hundredtwenty(720)dwy hours of his/her accrued sick leavcat thin% -five percent (35%)of the employee's rate of pay as of the date of service retirement. Service retirement is defined as service retirement from both the CITY and the respective retirement system thereof. NOTE: Sick lease converted to senice credit for PIERS purposes cannot be compensated (converted to dollars). 9. EXEMPT TIME OFF This policy is established in accordance with the Fair tabor Standards Act, which exempts employees of this group from requiring the CITY to pac time and one-half for time worked over 40 hours. Effective July 1. 2002. group memberssvi ll use accumulated leave time to take time off for sick leave, medical appointments. personal business. vacation. etc. for time off that is less than one full day in the same manner as issued for taking time off that exceeds one day: that is, filling out leave forms and noting time off on time cards. The exception to this policy is that time off of less than two (2) continuous hours perday need not be recorded. Abuses of this exception, i.e., taking Y, hour here and there throughout the day, will not be allowed. 10. RETIREMENT BENEFITS 10.1 The Management Group understands and agrees that employees bear the risk of payment of anc increases in the employee contribution above the current percentage made by action of the PERS or the State lxgislatum. 10.2 Parties agree that CITY payment of PERS contributions are made based upon tax treatment currently permitted by the State Franchise Tax Board and the IRS. 10.3 Should current tax treatment change, the Management Group and the employee 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 PERS contribution. 10.4 Should current tax treatment change, the Management Group shall have the opportunity to meet and confer regarding any such changes. 10.5 If the State Legislature adopts a two-tier P.E.R.S. retirement program applicable to the Management Group members, then all members employed after the effective date of such P.E.R.S. changes shall be placed in a new retirement plan or one selected by the CITY. Current employees at the time of plan adoption will have a one-time option to enter the new plan; enrollment period to be selected by CITY. 10.6 PERS Miscellaneous Employees 10.6.1 All members of the Management Group pay 100%ofthe employee contribution to CaIPERS. 10.&2 For employees hired prior to !he implementation of !hp PER-9 "ntm-el -4 mendmen Miseellaneous employees in the Management January 1. 2012. the CITY agrees to continue to provide the following PERS optional benefits: 2.7%at 55 plan (Section 21354) Sick Leave Credit Option (Section 20965) One -Year Final Compensation (20042) Military Service Credit (21024) 1959 Survivor Benefit, Level 0 (21574) 10.6.3 For employees hired on or after • ocoo .4.9eei I aneetis empl eyees i _ the ...._agement n-_ -January 1. 2012, INt_, I Formatted: Font: (Ddaua) times new Roman ) before January 1. 2013, and those hired on or after January I. 2013 who meet the definitionof'claslov sicmember"-oursuanttoftCaliforniaPublicEmoee'sPension Formaoed:FwM(oeraA)rlmaanawRoman Reform Act of 2013 (PEPRA). the CITY will provide a retirement benefit program Fwnwttad: Fan: ( de *) nm new Romer through Public Employees Retirement System (PERS) with the following PERS optional benefits: 2%@ 60 plan (21353), Sick Leave Option (Section 20965), Final Compensation Average 36 consecutive highest months (20037), Military Service Credit (21024), 0 u • 0 1959 Survivor Benefit 0 Level (21574) highest months final comcensation provision, and shall pay a member contribution rate of fifty (50) percent of the expected normal cost rate. Sick Leave Option (Section 20965). Final Compensation Average 36 consecutive highest months (20037). Military Service Credit (21024). 1959 Survivor Benefit 0 Level (21574) 10.7. PERS Safety Employees 10.7.1 All members of the Management Group pay 1000% of the employee contribution to Ca1PERS 10.7.2 For employees hired prior to September 17. 2011. '-- such l_,..- date as ,h_ PEES the CITY agrees to continue to provide PERS Safety employees in the Management Group with a retirement benefit program through the Public Employees Retirement System (PEAS) as follows: Highest Single Year Compensation effective 6-22-91 (Section 20042) Sick Leave Credit effective 6-24-89 (Section 20965) 4" Level Survivor Benefit (Section 21574) 1959 Survivor Benefit effective 6-24-99 (Section 21580) Military Service Credit effective 6.9-99 (Section 21024) 3%@ 50 Retirement Formula Pre -Retirement Optional Settlement 2 Death Benefit 10.7.3 For employees hired on or after September 17, 201 the CITY will provide a retirement benefit program through Public Employees Retirement System (PERS) reeds -as follows. 36 Consecutive Month Final Compensation (Section 20037) Sick Leave Credit effective 6-24-89 (Section 20965) 4e Level Survivor Benefit (Section 21574) 1959 Survivor Benefit effective 6-24-89 (Section 21580) Military Service Credit effective 6-9-98 (Section 21024) 3%Ca 55 Retirement Formula (Section 21363.1) Pre -Retirement Optional Settlement 2 Death Benefit ►ormatbed: Fart: (oera,e) Trt New aaman iar.nnea: IrKW: Left: 0.5% HWVN: 0.s FortaYteO: Fast: (D&a k) hoes New aaowi FFan: (Defeue) rnp5 New Remo -- - - I FW=Vttea: tom: Left: o.s - sormamee: tnaac Len: 0.5, Hanpv: o.s 10.7.4 Pursuant to the California Public Emplovees' Pension Reform Act of, rare+erme: Fan: Hn uom, No urKWm 2013 (PEPRA). effective January 1. 2013, employees hired tvho meet the definition-'�sonw~ tom: Left: r • or' new member" under PEPRA, will be covered by the 2.7% n. 57 retirement formula with the 36 highest months final compensation provision and shall nay a '- - - Formatted: Indent Left: 0.5", First lire: 0", Tab stops: 1.75", left 11. HEALTH BENEFITS/DEFERRED COMPENSATION PROGRAM 11.1 HEALTH MSURANCE 11.1.1 Employees of the Management Group shall participate in the PERS medical insurance plans on a cafeteria style basis, with the CITY contributing the PERS minimum (currently $10819/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. 11.1.2 The Management Group receives a cafeteria plan contribution (including the amount required by PERS in 11.1.1 above) as follows: Employee only - up to $715/month or cost of insurance, whichever is less Employee + 1 — up to $94¢7/month or cost of insurance, whichever is less • Employee + family - up to $10$30/month or cost of insurance, whichever is less - - Hanging Formatted: Left, Indent: Hanging: 0.5', Right: 0", Tab stops: I-, Lett + ' LeR + 2", Left+ 2.5, left+ 3", Left+ 3.5", Left+ 11.1.3 Effective January1, 2009 cash -back was eliminated except as provided herein. P 4" Left+ 4s, Left + s", Left 5.5, Left 6", left + 6.5", left Employees receiving cash -back in December 2008 shall continue to receive the same amount for the term of this agreement except that if a cash -back employee changes the structure of their insurance (add dependents, delete dependents, drop insurance with the CITY, change carriers, etc.) cash -back is not an option. Cash -back will be eliminated for employees during the open enrollment period in 2010 for calendaryear 2010, and in subsequent years, if said employees are required (because ofeliminated plans) to change carrier. In the event an employee receiving cash -back is forced to make a plan change because the CITY changes plans and/or ceases to contract with PERS for insurance, that employee will maintain cash -back. 11.2 DENTAL AND VISION INSURANCE: 11.2.1 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 $230,000 per employee. The following rates are effective January 1, 20131. • 0 Vision T EE pays Em to ee onl $7.641, 21jA2.87 15.70 56.21 53.2 52.93 Employee + 1 14.32 119.56 55.70 139.58 127.83 11.75 Em to ee + 2+ 1 W.521 JIL9.56 I 5,701 1144,78113 .57 18 2.21 - - For altod: Hmdrn 2. Indent: lErt: 0•, file siavg: vqk, Keep lr� wWdrw Tan SZ. CITY will pay the remaining premium for dental life and vision. Not at .0.75+ -0.5•+ 0•+ 0.5•+ I' 11.3 Any coverage made available to future retirees beyond COBRA time requirements shall be paid for by the retiree. lm! I L54 LTD INSURANCE The Management Group shall participate in the C43-provided Long Term Disability Insurance Plan. The CITY shall pay the costs for this plan. 11.61 CONTRIBUTION TO OTHER PROGRAMS CITY will contribute up to $1.000 per calendaryear to employee's deferred compensation or approved retiree medical savings plan on a 2:1 basis (i.e., employee contributes $2, City contributes $I ). 11.76 WORKER'S COMPENSATION LEAVE Any employee who is absent from duty because of an on-the-job injury in accordance with state worker's compensation law and is not eligible for disability payments under labor Code Section 4850 shall be paid the difference between his/her base salary and the amount paid by worker's compensation during the first forty-five (45) working days of such temporary disability absence. Eligibility for worker's compensation leave requires an open worker's compensation claim. 12, EDUCATION INCENTIVES 12.1 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. This provision does not apply to continuing education requirements. 12.2 CITY agrees to provide a City vehicle, when available, for required transportation, and will permit paid time for employee to take examinations scheduled during normal working hours. If no City vehicle is available, CITY will reimburse mileage for use of personal vehicle. 13. SALARIES 13.1 Effective the pay period begineincluding AA U , 91 20144 employees in the Management Group will tnkereceive a 2% salary redaetienincre g. Additionally. as discussed in item 13.4 below repard in¢ the deferent of a 3% salary increase in FY 2009/2010, employees in the Management Group will receive an additional %2% salary' increase, effective with the pav period including January 1. 2014: total increase to the Management Group effective the pav period includingJanuary anuary 1. 2014, is 2-1/2% 13.2 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. 13.3 Any and all special pay incentives will be calculated on base salary. 13.4 With the adoolion of the 2009/10 budget. the Citv Council deferred the Management Group' 3% salary increase. With this Agreement. the City Council wishes to begin to repay that deferent, as indicated in 13.1 above. and expresses its commitment to restoring the remaining 2-1/2% to the Management Group to be addressed in future contract negot iati onsin4he-future. 14. WORK UNIFORMS 14.1 SAFETY SHOES: Employees, who are required to wear steel -toed safety shoes in the performance of their duties, shall be eligible to receive an allowance forthe provision of said shoes in the amount of one hundred twenty dollars ($120.00) per fiscal year. Proof of purchase is required. Once purchased, such appropriate footwear must be wom while working. 15. PROBATION The probationary period for newly hired employees in this group 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. • r1 U 16, NO STRIKE, NO LOCK -OUT 16.1 During the tern of this Reselutien.Agreement. the CITY will not lockout any employees nor will the Management Group cause, authorize. advise or encourage any interruption of work or any other concerted action. The tern "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 Management Group 16.2 There shall be no refusal to work on, handle or produce any materials or equipment because of a labor dispute. 16.3 Any group employee, engaging in any action prohibited by this Article. shall he 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. 17. FULL UNDERSTANDING. MODIFICATION. WAIVER 17.1 This Reselwie Aercement 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 b% the parties, whether formal or informal, regarding any such matters are hereby superseded or terminated in their entirety. . 17.2 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. 17.3 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 Management Group. 17.4 The waiver of any breach of any term, or condition of this Reselutien.Agrcement by either party shall not constitute a precedent in the future enforcement ofall itsterms and provisions. 18. SEVERABILITY If any proyision(s) are held to be contras to law by a court of competent jurisdiction, such provision(s) will not be deemed valid and subsisting except to the extent permitted by law, but all other provisions will continue in full force and effect. DATE: DATE: MANAGEMENT CITY OF MORRO BAY Bruce Keogh Susan Slayton. Acting City Manager 0 Kathleen Wold Janeen Burlineame — - - rwmffieea: Left 0 I LI ® RESOLUTION NO. 03-14 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, AUTHORIZING THE CITY OF MORRO BAY TO ENTER INTO 2014/2016 VESSEL TURN -IN PROGRAM FUND CONTRACT WITH THE DIVISION OF BOATING AND WATERWAYS THE CITY COUNCIL City of Morro Bay, California WHEREAS. City of Morro Bay (City) applied for a grant from the California Division of Boating and Waterways (DBR� under the 2014/2016 Vessel Tum-In Program (VTIP); and WHEREAS; DBW awarded a grant of $5,000 under VTIP to the City for removal of surrendered vessels prior to abandonment. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Morro Bay, California, that the City of Morro Bay is hereby authorized to enter into ® VTIP Contract 4C7701106 for removal of surrendered vessels in the amount of $5,000. BE IT FURTHER RESOLVED, that the Harbor Director is hereby authorized to act as the City's agent in regards to all aspects of the grant agreement. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 14th day of January, 2014 on the following vote: AYES: Irons, C. Johnson; N. Johnson, Leage, Smukler NOES: None ABSENT: None ie L. Irons, Mayor ATTEST: J JarnVBoucher, City Clerk El RESOLUTION NO. 02-14 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, AUTHORIZING THE CITY OF MORRO BAY TO ENTER INTO 2014/2016 ABANDONED WATERCRAFT ABATEMENT FUND CONTRACT WITH THE DIVISION OF BOATING AND WATERWAYS THE CITY COUNCIL Cite of Morro Bay, California WHEREAS. City of Morro Bay (City) applied for a grant from the Division of Boating and Waterways. (DBW) under the Abandoned Watercraft Abatement Fund (AWAF) program; and WHEREAS, DBW awarded a grant of $9,000 under AWAF to the City for removal of derelict/abandoned vessels and hazards to navigation. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Morro Bay; California; that the City of Morro Bay is hereby authorized to enter into AWAF Contract 9C7701007 in the amount of $9.000 for removal of derelict/abandoned ® vessels and hazards to navigation. . BE IT FURTHER RESOLVED, that the Harbor Director is hereby authorized to act as the City's agent in regards to all aspects of the grant contract agreement. PASSED AND ADOPTED by the City Council of the City of Morro Bay at a regular meeting thereof held on the 14th day of January, 2014 on the following vote: AYES: Irons. C. Johnson_. N. Johnson, Leage, Smukler NOES: None ABSENT: None cl J e L. Irons, Mayor ATTEST: mw/�ic Jarge Boucher. City Clerk 11 ® RESOLUTION NO.01-14 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA RESCINDING RESOLUTION 57-13 (RELATING TO 2783 CORAL AVENUE IN MORRO BAY, CALIFORNIA) THE CITY COUNCIL Cite of Morro Bay, California WHEREAS, by Resolution 52-13, the City approved a Real Estate Agreement with Broc Assets, Inc., a California Corporation (Buyer'), for purchase of the property commonly known as 2783 Coral Avenue, Morro Bay. California, by Buyer (the "Purchase Agreements'): and WHEREAS, provisions of the Purchase Agreement required the City, among other things, to confirm in open session, that the tract map subdividing the property was still valid; and WHEREAS, City adopted Resolution 57-13) in an Open Session Council Meeting on November 12. 2013), so confirming: and WHEREAS, City subsequently received information regarding the validity of the tract map: and ® WHEREAS, City and Buyer executed Cancellation Instructions cancelling the Purchase Agreement on December 26. 201, . NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Morro Bay does rescind Resolution 57-13 and declare it null and void. PASSED AND ADOPTED by the City Council, City of Morro Bay at a regular meeting thereof held on the 14th day of January, 2014, by the following vote: AYES: IRONS, C. JOHNSON, N. JOHNSON, LEAGE, SMUKLER NOES: NONE ABSENT: NONE J71E L. IRONS, Mayor ATTEST: JAME BOUCHER, City Clerk