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HomeMy WebLinkAboutJanuary - December® City of Morro Bay City Council Agenda Mission Statement The City of Mono Bay is dedicated to the preservation and enhancement of the quality of life. The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING — DECEMBER 13, 2004 CLOSED SESSION — DECEMBER 13, 2004 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA ® CS-1 GOVERNMENT CODE SECTION 54956.8; REAL PROPERTY TRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property as to one (1) parcel: • Pro : Lease Site 87-88/87W-88W Negotiating Parties: Violet Leage and the City of Morro Bay. Negotiations: Renegotiation of lease agreement. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. 11 PUBLIC SESSION — DECEMBER 13, 2004 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCILMEMBERS ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period, the following rules shall be followed: • When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments are to be limited to three minutes. • All remarks shall be addressed to Council, as a whole, and not to any individual member thereof. • The Council respectfully requests that you refrain from making slanderous, ® profane or personal remarks against any elected official, commission and/or staff. • Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering. • Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting. • Your participation in City Council meetings is welcome and your courtesy will be appreciated. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 772-6205. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 RESOLUTION NO. 87-04 ADOPTING ASSIGNMENT OF LEASE SITES 124- ® 127/124W-127W, LOCATED AT 1215 EMBARCADERO, AND AMENDMENT TO LEASE SITE 124-127/124W-127W, TO INCORPORATE LEASE SITE 128 AND A PORTION OF LEASE SITE 128W INTO THE LEASE AGREEMENT; (HARBOR) RECOMMENDATION: Adopt Resolution No. 87-04. A-2 RESOLUTION NO. 86-04 SUPPORTING THE STATE LANDS COMMISSION AND OPPOSE THE PERFORMANCE REVIEW COMMISSION'S RECOMMENDATION TO DISBAND THE STATE LANDS COMMISSION; (HARBOR) RECOMMENDATION: Adopt Resolution No. 86-04. A-3 RESOLUTION NO. 84-04 AUTHORIZING INSTALLATION OF STOP SIGNS ON IRONWOOD AVENUE AT MIMOSA STREET; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 84-04. AA CITY COUNCIL MEETING SCHEDULE; (ADMINISTRATION) RECOMMENDATION: Review the calendar of regular City Council meetings; consider canceling the meeting on July 11, 2005; establish all fifth Mondays ® as meeting workshop dates; and, adopt this report as the annual meeting schedule. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-I CLOSE-OUT OF CDGB PLANNING & TECHNICAL ASSISTANCE GRANT FOR THE HOUSING INCOME AND CONDITIONS SURVEY; (PUBLIC SERVICES) RECOMMENDATION: Hold public hearing, and authorize staff to submit the report with a final closeout letter to Community Development Block Grant to close out the grant. B-2 DISCUSSION OF COUNCIL POLICY ON FILLING VACANT SEAT; (COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. C. UNFINISHED BUSINESS —NONE. D NEW BUSINESS ® D-1 RESOLUTION NO. 85-04 ADOPTING PROPOSED BUDGET CALENDAR FOR 2005-2007; (FINANCE) RECOMMENDATION: Adopt Resolution No. 85-04. D-2 AUTHORIZATION FOR FUNDING THE DEFENSE OF LITIGATION FOR LAUFFER VS. CITY OF MORRO BAY; (CITY ATTORNEY) RECOMMENDATION: Authorize $25,000 out of the General Reserve to fund the defense of this lawsuit. D-3 APPOINTMENT OF VICE -MAYOR FOR A ONE-YEAR TERM; (ADMINISTRATION) RECOMMENDATION: Appoint a Vice -Mayor to serve a one-year term. D-4 COUNCIL APPOINTMENTS TO DISCRETIONARY BOARDS; (ADMINISTRATION) RECOMMENDATION: Make appropriate appointments to the various discretionary boards. ® D-5 SET DATE FOR ADVISORY BOARD INTERVIEWS; (ADMINISTRATION) RECOMMENDATION: Set a date and time to interview applicants for vacancies on City Commissions and Advisory Boards. D-6 DISCUSSION ON PLANNING COMMISSIONERS TERMS; (COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. D-7 SCHEDULING OF DEPARTMENT POTLUCK LUNCHES; (COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. E. ADJOURNMENT THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TIME SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 7726200 FOR FURTHER INFORMATION. COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST AT CITY HALL, LIBRARY, AND MILLS STATIONERY. IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING., ® MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION — DECEMBER 13, 2004 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Yates called the meeting to order at 5:00 p.m. PRESENT: Janice Peters Mayor Thad Baxley Councilmember Melody DeMeritt Councilmember William Peirce Councilmember Betty Winholtz Councilmember STAFF: Robert Schultz City Attorney CLOSED SESSION MOTION: Councilmember Peirce moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Winholtz and unanimously carried. (5-0) Mayor Yates read the Closed Session Statement. CS-1 GOVERNMENT CODE SECTION 54956.8; REAL PROPERTY ® TRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property as to one (1) parcel: • Pro : Lease Site 87-88/87W-88W Negotiating Parties: Violet Leage and the City of Morro Bay. Negotiations: Renegotiation of lease agreement. The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:43 p.m. MOTION: Councilmember Peirce moved the meeting be adjourned. The motion was seconded by Councilmember Winholtz and unanimously carried. (5-0) The meeting adjourned at 5:43 p.m. r� U ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — DECEMBER 13, 2004 VETERANS MEMORIAL HALL - 6:00 P.M. C 11 Mayor Yates called the meeting to order at 6:00 p.m. PRESENT: Janice Peters Thad Baxley Melody DeMeritt William Peirce Betty Winholtz STAFF: Robert Schultz Bridgett Bauer Rick Algert Bruce Ambo Frank Cunningham John DeRohan Joan Drake Mike Pond Jim Koser Andrea Lueker ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE Mayor Councilmember Councilmember Councilmember Councilmember City Attorney City Clerk Harbor Director Public Services Director City Engineer Police Chief Administrative Technician Fire Chief Finance Director Recreation & Parks Director MAYOR'S REPORTS & ANNOUNCEMENTS CLOSED SESSION REPORT - City Attorney Robert Schultz reported the City Council met in Closed Session, and no reportable action under the Brown Act was taken. PUBLIC COMMENT Hershel Parker stated the three -minute public comment period is a wonderful democratic privilege. He referred to issues such as the dogs on beach vs. snowy plover, the Chamber of Commerce expenses, and Harbor View and Morro Cove projects as issues that brought him to the City Council meetings. Mr. Parker stated with the change in Council he hopes he will not have to attend so many meetings. He said when members of the public make critical comments, he knows it is someone who loves Morro Bay and wants to protect it. Hank Roth and Betty Forsythe (Friends of the Library) stated their organization would do what they can to raise money to match Robert Lane's offer. David Weisman stated the instant run-off voting process would resolve the problem that occurred at the November 30'" meeting in regards to filling a vacant Council seat. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — DECEMBER 13, 2004 Jack McCurdy stated the Coastal Alliance on Plant Expansion (CAPE) is opposed to either a short-term or long-term outfall lease with Duke Energy especially since cold water-cooling is such a viable alternative. He said a dead estuary without a living fishery could be disastrous to this area. Jude Long, Morro Bay Librarian, noted changes at the library including lay-offs and reduction in hours. She also referred to the funds offered to the library by Robert Lane. Barbara Stickle, representing the Central Coast Salmon Fisheries, addressed the reduction in salmon fishing proposed by the National Oceanic and Atmospheric Administration. She requested the City Council write a letter in opposition to this reduction. Alex Beatty addressed hunting in Morro Bay. He said the hunters start shooting prior to when they are suppose to, they shoot outside the designated area, and hunt out of season. Mr. Beatty stated he has contacted the Fish & Game Department, and requested the City Council become involved in regulating this recreation. Dorothy Cutter addressed the City's need for a new Planning Commission. ® Lynda Merrill requested the City Council and Planning Commission packets be placed on the internet. She also referred to the upcoming advisory board interviews, and requested Council choose people who do not have a conflict of interest relating to that board. Ms. Merrill expressed support for Finance Director Jim Koser during the upcoming budget period. DavidNelson requested Council strongly consider matching funds with Robert Lane for funding towards the library. He referred to the Public Trust Doctrine for Tidelands, and noted it says this power plant is questionable that it belongs in the tidelands. Rick Keller stated Morro Bay is a tourist -destination, and the City should make it more family and pedestrian -friendly. He said the power plant will hurt our properties and land, and there is no need to sell our unique gifts, such as the estuary, cheaply. Phil Hill stated the City should declare the adjoining property to the boatyard as an eminent domain. He said the neighbors want the boatyard to shutdown. Mr. Hill stated the neighbors do not care about the estuary or the City's status as a safe refuge harbor. 2 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — DECEMBER 13, 2004 Joey Racano stated the outfall pipe near Cayucos is causing health problems, especially for otters. He said when the Diablo Canyon Nuclear Power Plant was built, it was said it would eliminate the need for the Morro Bay Power Plant. Mr. Racano stated a century later, Duke Energy is here violating the Clean Water Act, the Clean Air Act, and operating without an outfall lease. Mandy Davis stated her intention is for the safety of the wildlife habitat and estuary. She asked how a citizen could place an item on the agenda. Frank DeVine stated the fishing village terminology was removed from the City's General Plan, and he requested it be reinstated in the plan. Roy Kline stated he respects this Council for their selection of Thad Baxley. He said he supports making Morro Bay a better place to live and visit. John Barta, Planning Commissioner, addressed Item D-6 (Discussion on Planning Commissioners Terms) and stated the removal of the Planning Commission as a whole is not the change that the citizens voted for. ® Colleen Johnson requested Council not sign a new outfall lease with Duke Energy. She addressed air pollution, and said most people live here for the clean air quality. Ken Vesterfelt stated the Car Show invitations have been sent out. He thanked the Chamber of Commerce and Kit and JoAnn for their efforts with the ADA issue. Mr. Vesterfelt addressed his seat on the Planning. Commission and thanked the City for allowing him to serve the City in this capacity. Mayor Peters closed the public comment hearing. Mayor Peters called for a break at 7:10 p.m.; the meeting resumed at 7:20 p.m. DECLARATION OF FUTURE AGENDA ITEMS Councilmember Winholtz requested the Council calendar consideration of directing staff to send a letter in support of the salmon fisheries, and encouraging other coastal communities to write to their legislature; Councilmember Peirce and Mayor Peters supported this item. Councilmember Winholtz requested to agendize a Council discussion to decide whether to take up the matter of inclusion of the Environmentally -Sensitive Habitat Area in the ® General Plan; Councilmember DeMeritt and Mayor Peters supported this item. El ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — DECEMBER 11. 2004 Councilmember Winholtz requested that the Council calendar the issue of having a discussion on how the City can encourage the County to identify the coastal region as a special zone in the County's application for Proposition 50 funding; Councilmember DeMeritt and Mayor Peters supported this item. Councilmember DeMeritt requested to agendize discussion on the donation made to the library and how to match those funds; Councilmember Winholtz and Mayor Peters supported this item. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 RESOLUTION NO. 87-04 ADOPTING ASSIGNMENT OF LEASE SITES 124- 127/124W-127W, LOCATED AT 1215 EMBARCADERO, AND AMENDMENT TO LEASE SITE 124-127/124W-127W, TO INCORPORATE ® LEASE SITE 128 AND A PORTION OF LEASE SITE 128W INTO THE LEASE AGREEMENT; (HARBOR) RECOMMENDATION: Adopt Resolution No. 87-04. A-2 RESOLUTION NO. 86-04 SUPPORTING THE STATE LANDS COMMISSION AND OPPOSE THE PERFORMANCE REVIEW COMMISSION'S RECOMMENDATION TO DISBAND THE STATE LANDS COMMISSION; (HARBOR) RECOMMENDATION: Adopt Resolution No. 86-04. A-3 RESOLUTION NO. 84-04 AUTHORIZING INSTALLATION OF STOP SIGNS ON IRONWOOD AVENUE AT MIMOSA STREET; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 84-04. A-4 CITY COUNCIL MEETING SCHEDULE; (ADMINISTRATION) RECOMMENDATION: Review the calendar of regular City Council meetings; consider canceling the meeting on July 11, 2005; establish all fifth Mondays as meeting workshop dates; and, adopt this report as the annual meeting ® schedule. 5 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — DECEMBER 13, 2004 Councilmember Winholtz pulled Items A-1, A-3, and A-4 from the Consent Calendar. MOTION: Councilmember Peirce moved the City Council approve Item A-2 of the Consent Calendar. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) A-1 RESOLUTION NO. 87-04 ADOPTING ASSIGNMENT OF LEASE SITES 124- 127/124W-127W, LOCATED AT 1215 EMBARCADERO, AND AMENDMENT TO LEASE SITE 124-127/124W-127W, TO INCORPORATE LEASE SITE 128 AND A PORTION OF LEASE SITE 128W INTO THE LEASE AGREEMENT; (HARBOR) Councilmember Winholtz asked if the take-out restaurant portion of this lease site is a part of this lease assignment. Harbor Director Rick Algert responded that site is part of Lease Site 128-128W which is ® going to become part of the Virg's lease site. MOTION: Councilmember Peirce moved the City Council approve Item A-1 of the Consent Calendar. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) A-3 RESOLUTION NO. 84-04 AUTHORIZING INSTALLATION OF STOP SIGNS ON IRONWOOD AVENUE AT MIMOSA STREET; (PUBLIC SERVICES) Councilmember Winholtz asked if a sign could be posted stating there is a three-way stop at this intersection. City Engineer Frank Cunningham responded this could be used as an extra precaution; however, might not be necessary. MOTION: Councilmember Winholtz moved the City Council approve Item A-3 of the Consent Calendar. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) A4 CITY COUNCIL MEETING SCHEDULE; (ADMINISTRATION) Councilmember Winholtz asked why a July meeting is recommended for cancellation. ® City Attorney Robert Schultz responded this is usually the case to allow for vacations. 0 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — DECEMBER 13, 2004 Mayor Peters requested the May 30`s meeting be removed from the schedule as well as the cancellation of a July meeting; Council concurred. MOTION: Councilmember Baxley moved the City Council approve Item A-4 of the Consent Calendar as amended by Council. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-I CLOSE-OUT OF CDGB PLANNING & TECHNICAL -ASSISTANCE GRANT FOR THE HOUSING INCOME AND CONDITIONS SURVEY; (PUBLIC SERVICES) Administrative Technician Joan Drake stated the Community Development Block Grant (CDBG) funds are provided to benefit primarily persons of low to moderate income through housing construction, public works, economic development loans for infrastructure, and planning/technical assistance. Ms. Drake recommended the City Council authorize staff to submit the report with a final closeout letter to CDBG to close ® out the grant. Mayor Peters opened the hearing for public comment; being there were no comments, Mayor Peters closed the public comment hearing. MOTION: Councilmember Winholtz moved the City Council authorize staff to submit the report with a final closeout letter to Community Development Block Grant to close out the grant. The motion was seconded by Councilmember Baxley and carried unanimously. (5-0) B-2 DISCUSSION OF COUNCIL POLICY ON FILLING VACANT SEAT; (COUNCIL) Mayor Peters brought forward this item to receive public input on the policy of filling a vacant seat on the City Council. She opened the hearing for public comment. Joan Solu stated a candidate who already holds a seat on the Council should relinquish or forfeit their seat prior to an election. She asked the Council to give the vote back to the people. r 7 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — DECEMBER 13, 2004 Frank Devine stated this City Council needs to set policy so this does not happen again. He requested Council consider a 20% minimum vote requirement for the next runner-up in an election. If a candidate does not meet that requirement, then the Mayor should have the ability to make an appointment. Roy Kline requested Council policy remain the same. Lynda Merrill stated she supports Council policy remain the same. David Nelson stated he likes the idea of an instant run-off voting process. He said the voters should have a voice in who is seated on the Council. Barry Dorfman stated Council should not make any decision on changing policy this evening; however, the current policy is better than taking the next highest vote getter. Ken Vesterfelt stated a candidate should relinquish their seat if running for another office during a mid-term. ® Ray McKelligott stated the policy should remain the same. Roger Ewing stated a candidate should resign their seat if running for another seat on the Council. Bob Tefft stated an officeholder should relinquish their seat if running for Mayor. Mayor Peters closed the public comment hearing. Councilmember Winholtz stated she likes the idea of an instant run-off voting process. She said the process of appointing the third vote getter might not be legal. Councilmember DeMeritt stated the appointment process on filling a term works and should be left as is. Councilmember Peirce stated mid-term appointments happen in many jurisdictions. He noted there were many people at the last meeting with a variety of opinions on who should be appointed. Councilmember Peirce stated the City could benefit from becoming a Charter city. Councilmember Baxley stated he supports accepting applications for review by the Council. 11 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — DECEMBER 13, 2004 Mayor Peters stated the present policy seems to work for the City. She said if Council is interested, minor research on the instant run-off process could be performed. No action was taken on this item. C. UNFINISHED BUSINESS — NONE. D. NEW BUSINESS D-1 RESOLUTION NO. 85-04 ADOPTING PROPOSED BUDGET CALENDAR FOR 2005-2007; (FINANCE) Finance Director Jim Koser stated in preparing the City's budget for the next two years, staff would like to be able to provide the City Council with a budget prepared with all available data that can. be used to predict future costs. In the past, previous City Councils have adopted two resolutions that cause the budget preparation period to be shortened. This limits staffs ability to improve our estimates of revenues and expenses because less historical data is available for the current year. Specifically, City Council ® Resolution No. 59-96 requires that the first public budget workshop regarding the proposed budget be held in the first week of May. By allowing staff additional time to prepare the proposed budget, staff hopes to have more data and thus make better estimates for the City Council to review. The City Council is facing a General Fund revenue crisis that will require structural changes in the organization to lower our on- going costs to match our severely reduced revenue streams. This comes at the height of the State Budget Crisis with added takeaways from cities. Additionally, expenses for health care and retirement continue to rise at rapid rates. Staff believes the City Council is the victim of a variety of circumstances that place you in the tough position of downsizing because there is no economic reason to expect improvements in revenues, that would be sufficient to sustain into the future, current levels of service. Mr. Koser recommended the City Council Adopt Resolution No. 85-04 to establish the schedule of events leading to adoption of the next budget. r Councihnember Peirce stated he could support rescinding Resolution No. 59-96 and Resolution No. 42-04 with the knowledge that Council will have ample time to review the budget. Mayor Peters stated she would like to revise Resolution No. 42-04 by removing "each May" from the second and fourth paragraphs, and adding seven "calendar" days to the fourth paragraph; and, rescind Resolution No. 59-96. 0 MINUTES - MORRO BAY CITY COUNCIL to REGULAR MEETING — DECEMBER 13, 2004 MOTION: Councilmember Peirce moved the City Council adopt Resolution No. 85- 04 approving the Proposed Budget Calendar for 2005-2007 as amended by Council. The motion was seconded by Councilmember Baxley and carried unanimously. (5-0) MOTION: Councilmember Winholtz moved the City Council approve sending out a mailer noticing a public hearing on January 24, 2005 in order to establish the City's priorities for the next two years. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) D-2 AUTHORIZATION FOR FUNDING THE DEFENSE OF LITIGATION FOR LAUFFER VS. CITY OF MORRO BAY; (CITY ATTORNEY) City Attorney Robert Schultz stated a lawsuit was recently filed against the City of Morro Bay in regard to the Cloisters Assessment District that funds the maintenance, and operation of the grounds in the Cloisters subdivision. The California Joint Powers Insurance Authority has determined that the lawsuit does not trigger any potential for covered liability falling within the Memorandum of Coverages, and therefore will not ® afford coverage for this case. Four individuals who own three properties between them filed this suit against the City of Morro Bay on July 23, 2004. The causes of action are for declaratory relief injunction, a writ of administrative mandate, and refund of improperly collected assessments. The plaintiffs allege that their properties lie within the Cloisters Special Assessment District. The Cloisters Assessment District was created to pay for maintenance of a park on property that the original developer deeded to the City in connection with the original development agreement. The plaintiffs claim that under the law the City was required to apportion the maintenance costs between the District and the City general funds budget, according to the proportion of special benefit received by the property owners in the District vs. the benefit to the City generally. Mr. Schultz recommended the City Council authorize $25,000 out of the General Reserve to fund the defense in this lawsuit. Consensus of the City Council was to appoint outside Council to represent the City in this lawsuit. MOTION: Councilmember Peirce moved the City Council authorize $25,000 out of the General Reserve to fund the defense in the lawsuit Lauffer vs. City of Morro Bay. The motion was seconded by Councilmember Baxley and carried unanimously. (5-0) Mayor Peters called for a break at 8:57 p.m.; the meeting resumed at 9:15 p.m. 10 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — DECEMBER 13, 2004 D-3 APPOINTMENT OF VICE -MAYOR FOR A ONE-YEAR TERM; (ADMINISTRATION) MOTION: Mayor Peters moved the City Council appoint Councilmember Winholtz to serve as Vice -Mayor for a one-year tern. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) D4 COUNCIL APPOINTMENTS TO DISCRETIONARY BOARDS; (ADMINISTRATION) The City Council made appointments to the various discretionary boards within the County. D-5 SET DATE FOR ADVISORY BOARD INTERVIEWS; (ADMINISTRATION) The City Council scheduled interviews for January 18 and 19, 2005, with a deadline to receive applications by January 14, 2005. ® D-6 DISCUSSION ON PLANNING COMMISSIONERS TERMS; (COUNCIL) Mayor Peters stated she requested this item be agendized so the City Council could discuss the terms of the current Planning Commission. Councilmember DeMeritt stated there is a discomfort around town with the planning process. She said it appears as if people who have special interests in planning issues represent the Planning Commission. Councilmember DeMeritt stated she would like the Planning Commission to have the perspective of what is good for the community, and not the developers. She said she supports starting with anew Planning Commission. Councilmember Peirce stated, if necessary, the whole Planning Commission should be removed and replaced by new Commissioners as done in past years. Councilmember Winholtz stated with the amount of appeals filed, she believes the City should have a new Planning Commission. Councilmember Baxley stated the two remaining people on the Planning Commission should be able to serve their terms. He said he would rather have three new Commissioners learning the process instead of five. 11 MINUTES - MORRO BAY CITY COUNCIL is REGULAR MEETING — DECEMBER 13, 2004 Mayor Peters stated this discussion is not a reflection on the current Planning Commission, but recognition of a shift in what the community would like. She said she supports removing the Planning Commission, and appointing a new Commission. MOTION: Councilmember Winholtz moved the City Council end all Planning Commission terms on January 31, 2005. The motion was seconded by Councilmember DeMeritt and carried with Councilmember Baxley and Councilmember Peirce voting no. (3-2). D-7 SCHEDULING OF DEPARTMENT POTLUCK LUNCHES; (COUNCIL) Mayor Peters stated she would like to hold a monthly potluck with a different department each month. No action was taken on this item. MOTION: Councilmember Winholtz moved the City Council add an item to tonight's agenda to discuss Council workshops and team building conference. The ® motion was seconded by Councilmember Baxley and carried unanimously. (5-0) D-8 DISCUSSION ON COUNCIL WORKSHOPS AND TEAM BUILDING CONFERENCE; (COUNCIL) Council agreed workshops and/or team building conference should be held locally; money should not be spent on travel at this time. No further action was taken on this item. ADJOURNMENT The meeting adjourned at 9:55 p.m. Recorded by: Bridgett Bauer City Clerk fr J 12 ® City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life. The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. SPECIAL MEETING — NOVEMBER 30, 2004 VETERANS MEMORIAL HALL - 5:00 P.M. 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCILMEMBERS ANNOUNCEMENTS & PRESENTATIONS ® CLOSED SESSION REPORT PUBLIC COMMENT PERIOD - Members of the audience wishing to. address the Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period, the following rules shall be followed: • When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments are to be limited to three minutes. • All remarks shall be addressed to Council, as a whole, and not to any individual member thereof. • The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or staff. • Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering. • Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting. ® • Your participation in City Council meetings is welcome and your courtesy will be'appreciated. ® In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 772-6205. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 MINUTES FOR THE REGULAR CITY COUNCIL MEETINGS OF NOVEMBER 8, 2004 AND NOVEMBER 22, 2004; (ADMINISTRATION) A-2 RESOLUTION RECITING THE FACT OF THE GENERAL MUNICIPAL ELECTION HELD ON NOVEMBER 2, 2004, AND DECLARING THE RESULTS THEREOF B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 CONTINUED PUBLIC HEARING ON APPEAL OF PLANNING COMMISSION'S DECISION TO APPROVE A MIXED -USE DEVELOPMENT LOCATED AT 360 MORRO BAY BOULEVARD ® C. NEW BUSINESS/PUBLIC HEARING C-1 PRESENTATION TO MAYOR YATES AND COUNCILMEMBER ELLIOTT C-2 OATH OF OFFICE TO JANICE PETERS, MELODY DEMERITT AND BILL PEIRCE C-3 PUBLIC HEARING AND DISCUSSION OF POSSIBLE SELECTION OF VACANT COUNCILMEMBER SEAT C4 OATH OF OFFICE OF SELECTED COUNCILMEMBER (IF SO SELECTED) D. ADJOURNMENT THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TLME SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR GALL THE CLERK'S OFFICE AT 772-6200 FOR FURTHER INFORMATION. COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITV CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST AT CITY HALL, LIBRARY, AND MILLS STATIONERY. IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICH'ATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ® ACCESSIBILITY TO THE MEETING. 2 ® MINUTES - MORRO BAY CITY COUNCIL SPECIAL MEETING —NOVEMBER 30, 2004 VETERANS MEMORIAL HALL - 6:00 P.M. 1] 1 `J Mayor Yates called the meeting to order at 5:00 p.m PRESENT: William Yates Mayor Dave Elliott Councilmember William Peirce Councilmember Janice Peters Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix Robert Schultz Bridgett Bauer Rick Algert Bruce Ambo John DeRohan Gary Kaiser Mike Pond Jim Koser Andrea Lueker ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR'S REPORTS & ANNOUNCEMENTS CLOSED SESSION REPORT - None. PUBLIC COMMENT City Manager City Attorney City Clerk Harbor Director Public Services Director Police Chief Senior Planner Fire Chief Finance Director Recreation & Parks Director The following people expressed thanks to Mayor Yates and Councilmember Elliott for their service on the City Council: Dannie Tope, Hank Roth, Cathy Novak, Rodger Anderson, Jeremiah O'Brien on behalf of the Commercial Fishermen Association, and Jim Wood. Mayor Yates closed the hearing for public comment. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 MINUTES FOR THE REGULAR CITY COUNCIL MEETINGS OF NOVEMBER 8, 2004 AND NOVEMBER 22, 2004; (ADMINISTRATION) ® MINUTES - MORRO BAY CITY COUNCIL SPECIAL MEETING — NOVEMBER 30, 2004 A-2 RESOLUTION RECITING THE FACT OF THE GENERAL MUNICIPAL ELECTION HELD ON NOVEMBER 2, 2004, AND DECLARING THE RESULTS THEREOF; (ADMINISTRATION) MOTION: Councilmember Peirce moved the City Council approve the Consent Calendar. The motion was seconded by Councilmember Peters and carried unanimously. (5-0) B. PUBLIC HEARINGS, REPORTS & APPEARANCES B-I CONTINUED PUBLIC HEARING ON APPEAL OF PLANNING COMMISSION'S DECISION TO APPROVE A MD{ED-USE DEVELOPMENT LOCATED AT 360 MORRO BAY BOULEVARD Senior Planner Gary Kaiser stated the City Council held a public hearing to consider the subject appeal on November 8, 2004. The stated grounds for the appeal were: a) use of in -lieu parking program for residential uses; b) architectural compatibility of the ® proposed building in terms of style, bulk and scale; and c) the fact that over 90% of the building would be occupied by residential uses in this commercial "central business" district. The hearing was continued to November 22, 2004. The City Council felt that the parking problem had only been partially solved and that the Council, staff and appellant had not been given adequate time to review the revised plans prior to the meeting. The Council once again continued the matter to November 30, 2004. The size of the proposed commercial space has now been further reduced to allow for 10-foot wide parking spaces. The wider spaces would allow easier access in and out of vehicles but do not solve the problem of the narrow aisle width and difficulty maneuvering in and out of the spares. The applicant has not responded to the appellant's concerns having to do with the bulk and scale of the building and percentage that would be occupied by residential uses. Mr. Kaiser recommended the City Council approve the project as originally approved by the Planning Commission, with the added condition that prior to the issuance of a building permit, the applicant shall demonstrate that all of the required parking spaces for the residential component of the project will be provided on -site or within 600 feet of the site through a recorded off -site parking agreement. Ll Cathy Novak, representing the applicant, reviewed the modifications to the design on this project. 2 ® MINUTES - MORRO BAY CITY COUNCIL SPECIAL MEETING — NOV EMBER 30, 2004 Roger Ewing, appellant, stated he is opposed to this project for several reasons. He said this is a C-1 zone where a mixed -use should be secondary to the commercial use; this is a residential project in a commercial zone. Mr. Ewing stated the Land Use Plan states that projects must be compatible with the surrounding area in scale, size and in bulk; and this project is not compatible with the surrounding area. He said the applicant has requested a maintenance lease agreement with the City to pay $1,000 per month plus maintenance of the public restroom he is proposing to place in this project, and he asked, "Where is the public benefit." Mr. Ewing also addressed the sub -standard parking spaces proposed by the applicant. He requested the City Council uphold the appeal, and send the project back for redesign, or change the ordinances so that it complies with the law. Mayor Yates opened the hearing for public comment. Roy Kline requested Council uphold this appeal stating too many projects are going to the City Council that need more attention from the Planning Commission. Bob Tefft referred to the City Zoning Ordinance relating to height standards in the Central Business zone, and noted the proposed height is above the 30' height restriction. ® He said this proposed project does not fit "inside the box". David Nelson stated the design of'this project has changed many times, and the public has not had time to review the revised plans. He also addressed the parking dilemma that may be created by this project. Dannie Tope stated mixed -use is the upcoming way to build because of the housing shortage. She also stated public restrooms are needed downtown. Andy Foster, applicant, stated he has worked hard to make this project work for the City. He said he has listened to the appellant and tried to work with him. Mr. Foster stated he is trying to promote growth and prosperity on Morro Bay Boulevard. He said there is a 12-foot easement going through to the left of the property and also egress throughout the Bank of America parking lot. Mr. Foster stated the parking standards are being met by code. Jerry Mullen stated the applicant is responsible for submitting plans that meet City codes. He requested the ordinance in the Local Coastal Plan be read at this meeting. Mayor Yates closed the public comment hearing. Il ® MINUTES - MORRO BAY CITY COUNCIL SPECIAL MEETING — NOVEMBER 30, 2004 Councilmember Elliott stated the new design looks good; however, there are too many questions, and the Planning Commission should review the new plans. He said he is opposed to approving this project since the process for planning has been circumvented. Councilmember Peters stated she is not concerned with the compatibility of this project; however, she does not support the restroom lease amount. She said she is not comfortable with making a decision tonight. Mayor Yates stated the restroom is not a part of the appeal. He said he likes the project as proposed, and supports denying the appeal. Councilmember Peirce stated his primary concern was with parking, and the applicant has addressed those concerns. He said he would rather see a project that has smaller square footage rather than a large square footage building that won't be as rent -able. Councilmember Winholtz reviewed the definition of secondary units. She said she would not be able to support this project this evening due to process and it does not meet the definition for secondary uses. ® Councilmember Peters stated she has worked very hard for a public restroom; however, the secondary use would require this project to provide parking for the commercial use before the residential use can be secondary. She said by allowing in -lieu parking and covering the residential only makes the use not secondary and sets a precedent that she does not want to establish. 11 Roger Ewing stated the code states that residential uses, including apartments, only when secondary to commercial uses, should be on the rear half of the property or second story. MOTION: Councilmember Elliott moved the City Council return this project to Planning Commission to review the new project for conformity. The motion was seconded by Councilmember Winholtz and carried with Mayor Yates voting no. (4-1) PUBLIC COMMENT Frank Meecham, Mayor of Paso Robles and President of San Luis Obispo Council of Governments, thanked Councilmember Elliott for his efforts on San Luis Obispo Council of Governments. I, ® MINUTES - MORRO BAY CITY COUNCIL SPECIAL MEETING — NOVEMBER 30, 2004 Ron DeCarli, Director of San Luis Obispo Council of Governments, read a letter to Councilmember Elliott regarding his service on San Luis Obispo Council of Governments and San Luis Obispo Regional Transit Authority. George Galvan, Chairman of the Men's Colony Advisory Board, presented a Certificate of Recognition to Councilmember Elliott for his efforts on the Board. Steve Mathieu stated he has worked with Councilmember Elliott for the past twelve years, and wished him and Mayor Yates well. Marc Godfrey, Morro Bay Peace Officers Association, thanked Mayor Yates and Councilmember Elliott for their support to the Association. Juliana Epperly thanked Mayor Yates and Councilmember Elliott for their support to the Downtown Merchants Association. Robert Teffl stated as a private citizen he appreciates the time and effort that Councilmember Elliott and Mayor Yates have given to the City, and thanked them for ® their service to the community. Mayor Yates closed the public comment hearing. u Members of the Council read letters from committees that Mayor Yates and Councilmember Elliott served on, and commented on their working relationship as a City Council. C. NEW BUSINESS C-1 PRESENTATION TO MAYOR YATES AND COUNCILMEMBER ELLIOTT Councilmember Peters and City Clerk Bridgett Bauer presented plaques to Mayor Yates and Councilmember Elliott commending them for their service on the City Council. C-2 OATH OF OFFICE TO JANICE PETERS. MELODY DEMERITT AND BILL PEIRCE City Clerk Bridgett Bauer issued the Oath of Office to Mayor Janice Peters, and Council Members Melody DeMeritt and Bill Peirce. 5 ® MINUTES - MORRO BAY CITY COUNCIL SPECIAL MEETING —NOVEMBER 30, 2004 C-3 PUBLIC HEARING AND DISCUSSION OF POSSIBLE SELECTION OF VACANT COUNCILMEMBER SEAT City Attorney Robert Schultz stated the City Council has four options for filling the vacant seat left by Councilmember Peters: 1) direct staff to bring back resolutions calling for a special election; 2) direct staff to take applications and place consideration of the applications on the City Council's agenda for either a special meeting or the regular meeting on December 13, 2004; 3) adopt a motion making an appointment to the vacant Council seat at this meeting; or 4) continue consideration of this matter to a special of general meeting. MOTION: Councilmember Peirce moved the City Council appoint a member to fill the vacancy on the City Council. The motion was seconded by Mayor Peters. Councilmember Winholtz reviewed the history of selecting a fifth council member, and she supports an interview process. ® Councilmember DeMeritt stated she would not support a special election because the City does not have the money or the time. u VOTE: The motion carried with Councilmember Winholtz voting no. (4-1) Mayor Peters stated she supports appointing the next highest vote getter (Stan House). Mayor Peters opened the hearing for public comment. David Nelson stated he does not support appointment of the next vote getter, and requested the Council consider the citizens who did not vote for Stan House. Shoosh Crotzer stated precedent was set in 1996 when Janice Peters was selected over her husband Colby Crotzer who only lost that election by twelve votes. She requested the Council appoint a moderate who will make this a balanced City Council. Jim Wood stated the appointment should go to the next vote getter Stan House who is also a moderate, and the best person for this job. Jeremiah O'Brien stated the Morro Bay Commercial Fishermen's Association supports the appointment of Stan House for the open Council seat. 3 ® MINUTES - MORRO BAY CITY COUNCIL SPECIAL MEETING — NOVEMBER 30, 2004 Joan Carter stated the people of Morro Bay voted for a change, which would not support the next highest vote getter. Bob Dixon urged the City Council to appoint Stan House to the vacant Council seat. Stan House thanked the 2,381 voters who voted for him. He said Council should consider making a policy on appointment to the City Council so this won't happen again. Mr. House stated the election was an interview held by the citizens. Frank Devine stated subverting the will of voters disenfranchising a large segment of our community is a betrayal of voters and the political process. He said it is imperative that this Council set an example of higher standards than Council's of the past. Mr. DeVine stated by appointing Stan House to the vacant Council seat would be the right choice for the City. Cherie Neil stated she is opposed to the appointment of Stan House, and requested the Council select a more moderate candidate. She said it is time for a positive change in the City Council's policy, which reflects a forward -looking vision of what Morro Bay can be. ® Ms. Neil stated a candidate should state if they support or oppose the power plant modernization project in their statement. Steve Knuckles, Mono Bay Firefighter's Association, read a letter stating the Association's support of Stan House to fill the vacant Council seat. Rachel Phillips stated she supports the appointment of Stan House. Dick Sylvester stated he supports the appointment of Stan House. Ed Ewing stated he supports the appointment of Stan House. Joey Racano stated Stan House did not win the election, and the voters should have the right of due process for the appointment to the vacant Council seat George Contento stated it is fair play for the Council to select whomever they want;, he requested they select a moderate. He urged the City Council to follow the mandate for change and select someone who can give the City's problems a fresh look. Noah Smukler stated the estuary is the lifeline of the City, and with a healthy estuary we will have a healthy community. He requested Council appoint someone who will support the welfare of this estuary. C ® MINUTES - MORRO BAY CITY COUNCIL SPECIAL MEETING —NOVEMBER 30, 2004 Marc Godfrey, President of the Peace Officers Association, read a letter stating the Association's support of Stan House to fill the vacant Council seat. Rodger Anderson stated Council should change the policy prior to the next election that appoints the next vote getter. He said he supports the appointment of Stan House for the current vacancy. Ken Vesterfelt stated he supports the appointment of Stan House. Hershel Parker stated this election was a vote for change. He requested Council appoint someone less extreme than Stan House. Susan Heinemann stated the goal is moderation on the City Council that represents the will of the citizens of Morro Bay. Jack McCurdy stated the appointment should reflect what the voters want. He.said Council should appoint someone whose views reflect this mandate of voters, which is change. Mr. McCurdy stated Stan House is a reactionary and an impediment to change. ® David Weisman expressed opposition to the appointment of Stan House. Emily House stated she supports the appointment of Stan House. Bob Tefft stated he respects the decision of the City Council on this matter. James Lipson said the City needs someone who can look at all the issues with an open mind. George Leage stated he supports the appointment of Stan House. Phil Hill stated he did not vote for Stan House; however, Stan ran in the election and got the next highest vote, and he feels he should get the appointment. Roy Kline stated he believes Council should conduct a nomination process for This appointment. Came Philler encouraged Council to appoint a moderate for this vacancy. Stevie Anderson requested Council not repeat the same action of 1996 by not appointing the next highest vote getter. D ® MINUTES - MORRO BAY CITY COUNCIL SPECIAL MEETING — NOVEMBER 30, 2004 Nelson Sullivan stated the City Council should nominate and select someone to fill this vacancy. Beverly Abbey stated moderation is needed in Morro Bay. She expressed opposition to the appointment of Stan House. Barbara Jo Osbome stated the City Council should nominate and select someone to fill this vacancy. Dannie Rodgers Tope stated she supports the appointment of Stan House. Hal Tune stated it would be an injustice to appoint the next highest vote getter because there are a lot of other people who can fill this vacancy. Mayor Peters closed the public comment hearing. Mayor Peters nominated Stan House to fill the vacancy City Council seat. is Councilmember Winholtz stated policy does not constitute the appointment of the next highest vote getter, and she feels that process can create divisiveness within the City Council. Councilmember Peirce stated many people have used the word "moderate" and aiming it at various different people. He said at this point he would prefer considering the next highest vote getter. Councilmember DeMeritt stated the outcome of this election shows the desire for change on the City Council. She said she will not support the nomination of Stan House. MOTION: Mayor Peters moved the City Council appoint Stan House to the vacant City Council seat. The motion was seconded by Councilmember Peirce and failed with Councilmember DeMeritt and Councilmember Winholtz voting no. (2-2) Councilmember Winholtz nominated Meredith Bates or Don Boatman Councilmember DeMeritt nominated Roger Ewing or Ric Deschler. Councilmember Peirce nominated Thad Baxley. ® Mayor Peters nominated Bill Woodson. 1 ® MINUTES - MORRO BAY CITY COUNCIL SPECIAL MEETING — NOVEMBER 30, 2004 The City Council received comments from those people nominated, except for Don Boatman who did not receive a majority vote by Council; Meredith Bates who was not present nor considered for nomination; and, Roger Ewing who withdrew his name for consideration. MOTION: Councilmember DeMeritt moved the City Council appoint Ric Deschler to the vacant City Council seat. The motion was seconded by Councilmember Winholtz and failed with Councilmember Peirce and Mayor Peters voting no. (2-2) MOTION: Councilmember Winholtz moved the City Council appoint Bill Woodson to the vacant City Council seat. This motion died for lack of a second. MOTION: Councilmember Peirce moved the City Council appoint Thad Baxley to the vacant City Council seat. The motion was seconded by Mayor Peters and carried with Councilmember Winholtz voting no. (3-1) ® C-4 OATH OF OFFICE OF SELECTED COUNCILMEMBER City Clerk Bridgett Bauer issued the Oath of Office to Thad Baxley. D. ADJOURNMENT The meeting adjourned at 10:25 p.m. Recorded by: / Bridgett er City Clerk 10 ® City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life. The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING — NOVEMBER 22, 2004 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCILMEMBERS ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT PUBLIC COMMENT PERIOD - Members of the audience wishing to address the ® Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period, the following rules shall be followed: • When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments are to be limited to three minutes. • All remarks shall be addressed to Council, as a whole, and not to any individual member thereof. • The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or staff. • Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering. • Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting. • Your participation in City Council meetings is welcome and your courtesy will be appreciated. In compliance with the Americans with Disabilities Act, if you need special assistance to ® participate in this meeting, please contact the City Clerk, (805) 772-6205. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES FOR THE REGULAR MEETING ON NOVEMBER 8, 2004; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 INVESTMENT REPORTS FOR SEPTEMBER 2004 AND OCTOBER 2004; (FINANCE) RECOMMENDATION: Receive report for information. A-3 RESOLUTION NO. 80-04 APPROVING A CONTRACT FOR CONDUCTING A TRANSIENT OCCUPANCY TAX AUDIT; (FINANCE) is RECOMMENDATION: Adopt Resolution No. 80-04. A4 PUBLIC WORKS ADVISORY BOARD RECOMMENDATION TO INSTALL A STOP SIGN ON IRONWOOD AVENUE AT MIMOSA STREET; (PUBLIC SERVICES) RECOMMENDATION: Direct staff to install a stop sign on southbound Ironwood Avenue with a crosswalk, as per "Option 2" detail, at Mimosa Street. A-5 RESOLUTION NO. 81-04 COMMENDING JERRY PARKER FOR HIS SERVICE WITH THE CITY OF MORRO BAY FIRE DEPARTMENT; (FIRE) RECOMMENDATION: Adopt Resolution No. 81-04. A-6 APPROVAL TO TRANSFER FUNDS FROM TROLLEY OPERATING BUDGET TO TROLLEY CAPITAL PROJECT FOR COMPLETION OF ROOFIWATER DAMAGE REPAIRS; (ADMINISTRATION) RECOMMENDATION: Approve the transfer of $1,500 from the fuel line item of the trolley's operating budget to the trolley refurbishmentlengine ® replacement capital project budget. 2 B. PUBLIC HEARINGS. REPORTS & APPEARANCES ® B-I CONTINUED PUBLIC HEARING ON APPEAL OF PLANNING COMMISSION'S DECISION TO APPROVE A MIXED -USE DEVELOPMENT LOCATED AT 360 MORRO BAY BOULEVARD; (PUBLIC SERVICES) RECOMMENDATION: Uphold the Planning Commission's decision to conditionally approve the project, based on recent changes that ensure that all of the required parking for the residential uses will be provided on -site. B-2 SPECIAL USE PERMIT FOR MORRO ELEMENTARY SCHOOL BUILDING FOR COMPATIBLE MULTIPLE USE OF SCHOOL SITE; (PUBLIC SERVICES) RECOMMENDATION: Approve the Special Use Permit to allow the uses requested by the San Luis Coastal Unified School District at the Morro Bay Elementary School site. B-3 RESOLUTION NO. 79-04 FOR WASTEWATER RATE INCREASE AND PROPOSED CITY COUNCIL RESOLUTION ADOPTING SEWER RATE INCREASES; (FINANCE) RECOMMENDATION: Adopt Resolution No. 79-04. C. UNFINISHED BUSINESS —NONE. is D. NEW BUSINESS D-I RESOLUTION NO. 82-04 APPROVING BUILDING AND PLANNING FEE WAIVERS FOR BUILDING ACCESSIBILITY (ADAICA TITLE 24) UPGRADES; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 82-04. D-2 RESOLUTION NO. 77-04 APPROVING INTRAFUND TRANSFER AND CLOSURE OF CAPITAL IMPROVEMENT PROJECTS; (FINANCE) RECOMMENDATION: Adopt Resolution No. 77-04. D-3 RESOLUTION NO. 78-04 APPROVING INTERFUND TRANSFERS AND CLOSURE OF FUNDS; (FINANCE) RECOMMENDATION: Adopt Resolution No. 78-04. C 3 E. ADJOURNMENT THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TIME SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 772-6200 FOR FURTHER INFORMATION. COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST AT CITY HALL, LIBRARY, AND MILLS STATIONERY. IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE isCITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. CI MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — NOVEMBER 22, 2004 ® VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Yates called the meeting to order at 6:00 p.m. PRESENT: William Yates Mayor Dave Elliott Councilmember William Peirce Councilmember Janice Peters Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix City Manager Robert Schultz City Attorney Bridgett Bauer City Clerk Rick Algert Harbor Director Bruce Ambo Public Services Director Greig Cummings Planning Manager Frank Cunningham City Engineer Gary Kaiser Senior Planner Mike Pond Fire Chief Jim Koser Finance Director Andrea Lueker Recreation & Parks Director ® ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR'S REPORTS & ANNOUNCEMENTS CLOSED SESSION REPORT - None.. PUBLIC COMMENT Frank Devine addressed the selection of the fifth Council seat, which remains vacant based on Councilmember Peters being elected as Mayor. He suggested the newly elected Council consider placing someone who will balance the Council. Mr. DeVine stated based on election results, Council should appoint Stan House who was the next highest vote. Hershel Parker stated the newly elected City Council should disassociate itself from a reactionary anti -environmental group such as the Pacific Legal Foundation (PLF). He said with almost limitless money, PLF lawyers have launched assaults on wetlands, equal employment, protections of consumer health and safety, rent control, labor unions, First Amendment protection of free speech, public right to beach access, etc. Mr. Parker stated in 2002, the Council majority hired the PLF to sue about the western snowy plover as a way of keeping dogs on the beaches. He said according to the Tribune on November 16 , the PLF is filing suit in federal court to challenge habitat protections for 48 ® endangered or threatened species of animals and plants in California. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — NOVEMBER 22, 2004 Jenny Aunerude announced a Coastal Holiday Gift Drive that is being sponsored by the Department of Social Services in Morro Bay. Susan Heineman announced "Tune In" with Melody DeMeritt to discuss opinions, ideas and priorities concerning Morro Bay on Friday, November 26h. Patricia Birch addressed Item A4 (Public Works Advisory Board Recommendation to Install a Stop Sign on Ironwood Avenue at Mimosa Street), and requested the City Council consider stop signs on both northbound and southbound lanes on Ironwood Avenue at Mimosa Street. David Nelson stated Duke Energy should pay retroactive on the outfall lease. He said he reviewed the City's budget and is concerned with the deficit. Mr. Nelson stated he supports Item B-3 (Resolution No. 79-04 for Wastewater Rate Increase and Proposed City Council Resolution Adopting Sewer Rate Increases). Meredith Bates addressed a petition signed by visitors who visit Morro Bay each year on their concern of the building that has taken place in the City. ® Bill Woodson stated the Salvation Army will be present at three locations this holiday season, and requested volunteers. 11 Ruel Czach stated he is in support of placing a stop sign at Ironwood Avenue. Joey Racano, Orange County Ocean Outfall Group, which is dedicated to ending all waivers of the Clean Water Act. He said Morro Bay has two destructive waivers, one being a 301(h) waiver which allows the dumping of sewage into the ocean without full secondary treatment; the other is a 316(b) thermal waiver that allows the Duke Energy Power Plant to suck in and destroy plankton and other sea life in the process of cooling. Mr. Racano stated Duke Energy's lease should never be renewed. Mayor Yates closed the hearing for public comment. DECLARATION OF FUTURE AGENDA ITEMS Councilmember Elliott suggested the newly appointed Council consider amending the City ordinance by requiring a Council Member to resign their seat prior to running for another office. 2 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING - NOVEMBER 22, 2004 A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES FOR THE REGULAR MEETING ON NOVEMBER 8, 2004; (ADMINISTRATION) RECOMMENDATION: This item was pulled from the agenda. A-2 INVESTMENT REPORTS FOR SEPTEMBER 2004 AND OCTOBER 2004; (FINANCE) RECOMMENDATION: Receive report for information. A-3 RESOLUTION NO. 80-04 APPROVING A CONTRACT FOR CONDUCTING A TRANSIENT OCCUPANCY TAX AUDIT; (FINANCE) RECOMMENDATION: Adopt Resolution No. 80-04. ® AA PUBLIC WORKS ADVISORY BOARD RECOMMENDATION TO INSTALL A STOP SIGN ON IRONWOOD AVENUE AT MIMOSA STREET; (PUBLIC SERVICES) RECOMMENDATION: Direct staff to install a stop sign on southbound Ironwood Avenue with a crosswalk, as per "Option 2" detail, at Mimosa Street. A-5 RESOLUTION NO. 81-04 COMMENDING JERRY PARKER FOR HIS SERVICE WITH THE CITY OF MORRO BAY FIRE DEPARTMENT; (FIRE) RECOMMENDATION: Adopt Resolution No. 81-04. A-6 APPROVAL TO TRANSFER FUNDS FROM TROLLEY OPERATING BUDGET TO TROLLEY CAPITAL PROJECT FOR COMPLETION OF ROOF/WATER DAMAGE REPAIRS; (ADMINISTRATION) RECOMMENDATION: Approve the transfer of $1,500 from the fuel line item of the trolley's operating budget to the trolley refurbishment/engine replacement capital project budget. ® MOTION: Councilmember Peirce moved the City Council approve Item A-5 of the Consent Calendar. The motion was seconded by Councilmember Peters and carried unanimously. (5-0) 3 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —NOVEMBER 22, 2004 Mayor Yates presented Fire Captain Jerry Parker with plaques commemorating his 29 years of service with the City of Morro Bay Fire Department. Councilmember Winholtz pulled Item A-4 from the Consent Calendar, Councilmember Elliott pulled Item A-6. MOTION: Councilmember Winholtz moved the City Council approve Items A-2 and A-3 of the Consent Calendar. The motion was seconded by Councilmember Peters and carried unanimously. (5-0) A4 PUBLIC WORKS ADVISORY BOARD RECOMMENDATION TO INSTALL A STOP SIGN ON IRONWOOD AVENUE AT MIMOSA STREET; (PUBLIC SERVICES) Councilmember Winholtz stated she supports Option 1 in the staff report that requires two stop signs on Ironwood Avenue at Mimosa Street; Council concurred. MOTION: Councilmember Peirce moved the City Council approve Option 1 in the ® staff report. The motion was seconded by Councilmember Elliott and carried unanimously. (5-0) A-6 APPROVAL TO TRANSFER FUNDS FROM TROLLEY OPERATING BUDGET TO TROLLEY CAPITAL PROJECT FOR COMPLETION OF ROOF/WATER DAMAGE REPAIRS; (ADMINISTRATION) Councilmember Elliott asked if this repair would waylay the trolley operation. City Manager Robert Hendrix responded these were unanticipated expenses, and the projection is that these funds can be spared by the fuel account for this purpose. MOTION: Councilmember Elliott moved the City Council approve Item A-6 of the Consent Calendar. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) Mayor Yates called for a break at 7:00 p.m.; the meeting resumed at 7:15 p.m. 11 M MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — NOVEMBER 22, 2004 B. PUBLIC HEARINGS, REPORTS & APPEARANCES B-1 CONTINUED PUBLIC HEARING ON APPEAL OF PLANNING COMMISSION'S DECISION TO APPROVE A MIXED -USE DEVELOPMENT LOCATED AT 360 MORRO BAY BOULEVARD; (PUBLIC SERVICES) Senior Planner Gary Kaiser stated the City Council held a public hearing to consider the subject appeal on November 8, 2004. Following public testimony and an ensuing discussion among Council Members, and after securing the consent of both the applicant and appellant, the Council continued the matter to their regular meeting of Novembei 22, 2004. Generally, the issues surrounding the appeal are related to parking, the ratio of residential space compared to commercial space and the appropriateness of the proposed building in terms of bulk, scale and architectural treatment. The project does not violate any clear zoning limitations or conflict with an established. architectural theme, but the Council did share concerns about the use on in -lieu fees for residential uses. Mr. Kaiser recommended the City Council uphold the Planning Commission's decision to conditionally approve the project, based on recent changes that ensure that all of the required parking for the residential uses will be provided on -site. ® Roger Ewing, appellant, stated he has not been involved in the process of the redesign of this project, and he requested Council consider continuing this item to the next meeting. E Mayor Yates opened the hearing for public comment; there being no comment, the public comment period was closed. MOTION: Councilmember Winholtz moved the City Council continue this item to the December 13, 2004 City Council meeting. The motion was seconded by Councilmember Peters. City Attorney Robert Schultz stated if the newly elected Council hears this public hearing, the applicant would have to start the process over again. Councilmember Peters withdrew her second to the motion. The motion died for lack of a second. MOTION: Councilmember Peters moved the City Council continue this item to November 29, 2004. The motion was seconded by Councilmember Peirce and failed with Councilmember Elliott, Councilmember Peirce, Councilmember Winholtz and Mayor Yates voting no. (1-4) 5 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — NOVEMBER 22, 2004 MOTION: Mayor Yates moved the City Council continue this public hearing to the Special City Council meeting on November 30, 2004 at 5:00 p.m. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) B-2 SPECIAL USE PERMIT FOR MORRO ELEMENTARY SCHOOL BUILDING FOR COMPATIBLE MULTIPLE USE OF SCHOOL SITE; (PUBLIC SERVICES) Senior Planner Greig Cummings stated Section 17.030.030(S) of the Morro Bay Municipal Code; Compatible Multiple Uses of Public School Sites and Facilities, requires approval from the Planning Commission and the City Council for uses proposed'at a school site where the facility is being used to less than its capacity enrollment. The intent of this ordinance section is to maintain the continued operation of the school facilities while allowing for the joint occupancy of the school. The applicant has submitted information on the area of each use and a number count of the parking spaces on the site. Also, a traffic engineer has reviewed the traffic demands for the uses and determined that the proposed uses generate less traffic than the use of the site as a school. Mayor Yates opened the hearing for public comment. ® David Nelson asked what the proposed uses are for this school site. Mayor Yates closed the public comment hearing. Councilmember Elliott stated if it is a government facility, the uses should be rented on a temporary basis. Councilmember Peters stated the proposed uses are compatible with the zoning of this property. Councilmember Peirce expressed support because the uses are temporary, and the facilities are being used and maintained. Councilmember Winholtz asked about the length of the rental terms. Mayor Yates stated the proposed uses would benefit the children in this community. MOTION: Mayor Yates moved the City Council approve the Special Use Permit UPO-024 to allow the uses requested by the San Luis Coastal Unified School District at the Morro Elementary School site. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) T MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — NOVEMBER 22, 2004 B-3 RESOLUTION NO. 79-04 FOR WASTEWATER RATE INCREASE AND PROPOSED CITY COUNCIL RESOLUTION ADOPTING SEWER RATE INCREASES; (FINANCE) Finance Director Jim Koser stated on September 27, 2004, the City Council received a staff report suggesting alternative ways to raise sewer fees sufficient to cover annual expenses. The City Council directed staff to return to the Council with a report increasing the sewer fee by $2.00 in the first year and by an additional $1.50 per year for the following two years. The range of impact to the Wastewater Revenue Fund is between $142,992 in the first year and up to $357,000 additional revenue, when fully implemented. Mr. Koser recommended the City Council open the public hearing for citizen input, and direct staff with regard to implementing this rate increase by adoption of Resolution No. 79-04, or otherwise disposing of this matter. Mayor Yates opened the hearing for public comment. David Nelson stated it is important to upgrade our sewer plant. Mayor Yates closed the public comment hearing. ® Council consensus was in support of this rate increase. MOTION: Councilmember Elliott moved the City Council adopt Resolution No. 79-04 approving changes to the Morro Bay Wastewater Collection and Treatment Fee Schedule. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) C. UNFINISHED BUSINESS — None. D. NEW BUSINESS D-1 RESOLUTION NO. 82-04 APPROVING BUILDING AND PLANNING FEE WAIVERS FOR BUILDING ACCESSIBILITY (ADA/CA TITLE 24) UPGRADES; (PUBLIC SERVICES) Public Services Director Bruce Ambo stated the City Council has had a continuing concern with the impact on businesses and the overall community resulting from several lawsuits being filed for accessibility violations of the Americans with Disabilities Act (ADA). Most recently on October 25, 2004, the Council directed that a discussion be placed on the agenda for fee waivers for ADA upgrades. Staff has made it an administrative priority to expedite accessibility plan checks and inspections where ® existing businesses are in operation. In addition to the Federal ADA guidelines, there are State codes that address accessibility that are found in the California Building Code Accessibility Requirements. Therefore, staff is recommended that any "accessibility" 7 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — NOVEMBER 22, 2004 upgrade is included in the fee waiver. Mr. Ambo recommended the City Council waive all building and planning fees on ADA/Fitle 24 Accessibility upgrades until July 1, 2005; refund fees collected for upgrades dating to July 1, 2004; and, Adopt Resolution No. 82- 04 temporarily amending the Master Fee Resolution for ADA/fitle 24 Accessibility fee waivers until July 1, 2005. MOTION: Mayor Yates moved the City Council waive all building and planning fees collected for upgrades dating to July 1, 2004; refund fees collected for upgrades dating to July 1, 2004; and, adopt Resolution No. 82-04 temporarily amending the Master Fees Schedule for ADA/fitle 24 Accessibility upgrades until July 1, 2005. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) D-2 RESOLUTION NO. 77-04 APPROVING INTRAFUND TRANSFER AND CLOSURE OF CAPITAL IMPROVEMENT PROJECTS; (FINANCE) Finance Director Jim Koser stated in accordance with the City Council's direction as included in Resolution No. 54-04, the Council shall review and approve all transfers ® between Capital Projects. In this instance, we have two separate Capital Projects that staff recommends combining by transferring the $25,000 approved for the placement study project into the Station 53 post -earthquake project. Mr. Koser recommended the City Council adopt Resolution No. 77-04 authorizing the Finance Director to consolidate the balances of two previously approved Capital Improvement Projects and closeout of one that will become unfounded and no longer needed; and, authorize the Finance Director to consolidate the balances of the Fire Station Placement Project into the Fire Station 53 Earthquake Recovery Project and closeout of the Fire Station Placement Project. C� MOTION: Councilmember Elliott moved the City Council adopt Resolution No. 77-04 authorizing the Finance Director to consolidate the balances of two previously approved Capital Improvement Projects and closeout of one that will become unfounded and no longer needed; and, authorize the Finance Director to consolidate the balances of the Fire Station Placement Project into the Fire Station 53 Earthquake Recovery Project and closeout of the Fire Station Placement Project. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) F? MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING —NOVEMBER 22, 2004 D-3 RESOLUTION NO. 78-04 APPROVING INTERFUND TRANSFERS AND CLOSURE OF FUNDS; (FINANCE) Finance Director Jim Koser. stated Finance Director Jim Koser stated in accordance with the City Council's direction as included in Resolution No. 54-04, the Council shall review and approve all transfers between funds. In this instance we have two separate assessment districts that retired their final bonds in September 2004. There is no need to maintain either the Reserve or the Construction Funds pending settlement of any final costs relating to terminating the assessment districts. Mr. Koser recommended the City Council adopt Resolution No. 78-04 authorizing the Finance Director to consolidate the balances of the Mimosa Street Assessment District into the Reserve Fund, pending final closeout of the assessment district, and to terminate the Redemption and Construction Funds; and, authorize the Finance Director to consolidate the balances of the Mimosa Street Supplemental Assessment District into the Redemption Fund, pending final closeout of the assessment district, and to terminate the Reserve and Construction Funds. MOTION: Councilmember Elliott moved the City Council adopt Resolution No. 78-04 authorizing the Finance Director to consolidate the balances of the Mimosa Street Assessment District into the Reserve Fund, pending final closeout of ® the assessment district, and to terminate the Redemption and Construction Funds; and, authorize the Finance Director to consolidate the balances of the Mimosa Street Supplemental Assessment District into the Redemption Fund, pending final closeout of the assessment district, and to terminate the Reserve and Construction Funds. The motion was seconded by Councilmember Peters and carried unanimously. (5-0) ADJOURNMENT The meeting adjourned at 8:57 p.m. Recorded by: Bridgett Bauer City Clerk 11 0 City of Morro Bay ® City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life. The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING — NOVEMBER 8, 2004 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCILMEMBERS ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT ® PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period, the following rules shall be followed: • When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments are to be limited to three minutes. • All remarks shall be addressed to Council, as a whole, and not to any individual member thereof. • The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or staff. • Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering. • Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting. • Your participation in City Council meetings is welcome and your courtesy will be appreciated. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 772-6205. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES FOR THE REGULAR MEETING ON OCTOBER 25, 2004; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 RESOLUTION NO. 75-04 TO ACCEPT A GRANT FROM THE STATE DEPARTMENT OF BOATING AND WATERWAYS FOR A NEW VESSEL PUMP -OUT INSTALLATION; (HARBOR) RECOMMENDATION: Adopt Resolution No. 75-04. A-3 RESOLUTION NO. 73-04 SUPPORTING THE PUBLIC WORKS ADVISORY BOARD RECOMMENDATION ON THE TRAFFIC CIRCULATION STUDY ® FOR STATE PARKS ROAD; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 73-04. A-4 AUTHORIZATION TO USE PROPOSITION 40 PER CAPITA FUNDS AND PARK IN LIEU FEES FOR NEW PORTABLE EQUIPMENT FOR THE SKATE PARK; (RECREATION & PARKS) RECOMMENDATION: Authorize the use of up to $70,000 of park -in -lieu funds, and up to $40,000 of Proposition 40 Per Capita funds to renovate the existing skate park. A-5 RESOLUTION NO. 76-04 AUTHORIZING SUBMISSION OF RURAL TRANSIT FUND GRANT APPLICATIONS; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 76-04. A-6 AWARD OF BLANCA STREET TANKS REPLACEMENT PROJECT; (PUBLIC SERVICES) RECOMMENDATION: Allocate additional funds to the project, and award the contract to the lowest responsible bidder, Wysong Construction of is Atascadero in the amount of $721,000. 2 B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-I APPEAL OF PLANNING COMMISSION'S DECISION TO APPROVE A MIXED- ® USE DEVELOPMENT LOCATED AT 360 MORRO BAY BOULEVARD; (PUBLIC SERVICES) RECOMMENDATION: Deny the appeal, and uphold the Planning Commission's decision to conditionally approve the project. B-2 APPEAL OF PLANNING COMMISSION'S DECISION TO APPROVE A 30-UNIT SENIOR COMPLEX FOR LOWER -INCOME RESIDENTS LOCATED AT I I I I MAIN STREET; (PUBLIC SERVICES) RECOMMENDATION: Deny the appeal, and . uphold the Planning Commission's decision to conditionally approve the project. B-3 APPEAL OF PLANNING COMMISSION'S DECISION TO APPROVE A 5-UNIT APARTMENT COMPLEX LOCATED AT 2600 MAIN STREET; (PUBLIC SERVICES) RECOMMENDATION: Deny the appeal, and uphold the Planning Commission's decision to conditionally approve the project. C. UNFINISHED BUSINESS ® C-1 RESOLUTION NO. 74-04 AUTHORIZING THE SALE OF CITY -OWNED PROPERTY LOCATED AT 220 ATASCADERO ROAD; (CITY ATTORNEY) RECOMMENDATION: Adopt Resolution No. 74-04. D. NEW BUSINESS —NONE. E. ADJOURNMENT THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE'AND TIME SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 772-6200 FOR FURTHER INFORMATION. COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST AT CITY HALL, LIBRARY, AND MILLS STATIONERY. IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE Y ® MEETING. CI 11 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — NOVEMBER 8, 2004 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Yates called the meeting to order at 6:00 p.m. PRESENT: William Yates Mayor Dave Elliott Councilmember William Peirce Councilmember Janice Peters Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix Robert Schultz Jamie Boucher Rick Algert Bruce Ambo Bill Boucher John DeRohan Gary Kaiser Mike Pond Mike Prater Jim Koser Andrea Lueker ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR'S REPORTS & ANNOUNCEMENTS CLOSED SESSION REPORT - None. PUBLIC COMMENT City Manager City Attorney Deputy City Clerk Harbor Director Public Services Director Capital Projects Manager Police Chief Senior Planner Fire Chief Associate Planner Finance Director Recreation & Parks Director Kim Kimball, Executive Director of the Chamber of Commerce, thanked Stan House and Grace Melton for hosting the "Win, Lose or Draw" breakfast the morning after the election. She said Dave Garth, CEO of the San Luis Obispo Chamber of Commerce was very impressed with the idea and will follow suit next year. Ms. Kimball thanked all the volunteers who helped put up lights on the trees on Main Street and Morro Bay Boulevard on Saturday. She also stated there will be an ad on Pier 39 in San Francisco advertising Morro Bay in hopes it will help with tourism in our area. She noted the Bay News is producing an Estero Bay Guide listing opportunities in Los Osos, Morro Bay and Cayucos. Hershel Parker stated the new Chamber of Commerce guide is not accurate as it states that Morro Bay features beautiful pet -friendly beaches. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —NOVEMBER 8, 2004 Jim Nance stated he would like to see Morro Bay expand its desalination plant so we can do away with State Water. Jude Long thanked the City Council for their continued support of the Morro Bay Library as well as those supporters of Measure L. She said that by the end of December the library will have to lay off all temporary workers; by January I n they will have a reduction in hours of operation; and, by July 2005, they are expecting even deeper cuts. She said the library would be asking the Morro Bay Friends of the Library for additional support, and with the loss of staff they will also be looking for more volunteers. Ms. Long stated the Chamber of Commerce has a table in the library lobby that has ADA information, and she also reminded holiday shoppers to shop and eat locally. Frank Devine thanked the City Council for their role in fixing the drainage problem in the 2900 block of Juniper. He also thanked the Public Services Department for their efforts in this project. David Nelson addressed the empty seat that will be created on the City Council with Janice Peters being elected as Mayor, and said he feels there should be a special election to seat the fifth Council Member. He also spoke on the Duke Energy issue, and stated he ® hopes the City will hold Duke Energy to its three-year agreement of $250,000/year as promised. 11 Bob Tefft thanked all the candidates for running such a positive campaign. Phil Hill thanked the City for its efforts on the boatyard dilemma. He said he is concerned that at some point a boat will go down, and because there is no room at the boatyard, it will be left to pollute the bay. Roger Ewing congratulated the candidates who won, and thanked those who participated in the recent election. He also addressed Item A-3 (Resolution No. 73-04 in Support of the Public Works Advisory Board Recommendation on the Traffic Circulation Study for State Parks Road) stating he agrees with the Public Works Advisory Board but feels that the upper road is only wide enough for one-way traffic. Mr. Ewing stated he feels that when there is a commercial/residential/mixed use project, it should go through a public review from at least one City Commission or Board. Kit Knapp stated Morro Bay should be proud of the stance they are taking regarding the ADA issue. She thanked Joanne Shiflett for all the work she is doing in this area. Ms. Knapp stated on December 9°i from 6-9 p.m. there would be a town hall meeting regarding the ADA issue; and speakers would include Michael Gibbons, Jay Hiatt, and Tim Leslie, and she encouraged people to attend. E ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —NOVEMBER 8, 2004 Melody DeMerritt stated she too admired the candidates' campaigns by staying with the issues. She said she enjoyed the "Win, Lose or Draw" breakfast the morning after the election, stating it was a way to bring all the candidates together. Ms. DeMeritt thanked her committee members for all their hard work on her campaign, and assured the residents that she will serve with an open mind, will make independent decisions, and will strive for what is in the best interests of Mono Bay. Roy Klein stated he feels the empty Council seat should be filled by the next highest vote getter — Stan House. Garry Johnson thanked the Fire Department for doing such a great job with the Rock rescue. He asked who would be billed for all the money that was put into this rescue. Mandy Davis stated she too congratulates the candidates and the campaigns they ran. She said she would like the new Council to make a fresh start and to take seriously the claim that this City is an environmentally sensitive City. Ken Vesterfelt expressed congratulations to those candidates that were elected. He said ® he appreciated everyone who worked on his campaign, and wanted to ensure he will still be here to volunteer in any way he can. Mayor Yates closed the hearing for public comment. DECLARATION OF FUTURE AGENDA ITEMS Councihnember Winholtz requested to agendize the discussion of including in the zoning ordinance the public review of all building projects within the commercial/mixed use areas. Councihnember Peters requested to agendize the review of a Private View Protection Ordinance. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A -I APPROVAL OF MINUTES FOR THE REGULAR MEETING ON OCTOBER 25, 2004; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. 11 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — NOVEMBER 8, 2004 A-2 RESOLUTION NO. 75-04 TO ACCEPT A GRANT FROM THE STATE DEPARTMENT OF BOATING AND WATERWAYS FOR A NEW VESSEL PUMP -OUT INSTALLATION; (HARBOR) RECOMMENDATION: Adopt Resolution No. 75-04. A-3 RESOLUTION NO. 73-04 SUPPORTING THE PUBLIC WORKS ADVISORY BOARD RECOMMENDATION ON THE TRAFFIC CIRCULATION STUDY FOR STATE PARKS ROAD; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 73-04. A4 AUTHORIZATION TO USE PROPOSITION 40 PER CAPITA FUNDS AND PARK IN LIEU FEES FOR NEW PORTABLE EQUIPMENT FOR THE SKATE PARK; (RECREATION & PARKS) RECOMMENDATION: Authorize the use of up to $70,000 of park -in -lieu funds, and up to $40,000 of Proposition 40 Per Capita funds to renovate the existing ® skate park. A-5 RESOLUTION NO. 76-04 AUTHORIZING SUBMISSION OF RURAL TRANSIT FUND GRANT APPLICATIONS; (ADMINISTRATION) 11 RECOMMENDATION: Adopt Resolution No. 76-04. A-6 AWARD OF BLANCA STREET TANKS REPLACEMENT PROJECT; (PUBLIC SERVICES) RECOMMENDATION: Allocate additional funds to the project, and award the contract to the lowest responsible bidder, Wysong Construction of Atascadero in the amount of $721,000. Councilmember Peirce pulled Item A-2 from the Consent Calendar; Councilmember Peters pulled Item A-3; and Councilmember Winholtz pulled Items A-4, A-5 and A-6. MOTION: Councilmember Peters moved the City Council approve Item A-1 of the Consent Calendar. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) 4 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — NOVEMBER 8, 2004 A-2 RESOLUTION NO. 75-04 TO ACCEPT A GRANT FROM THE STATE DEPARTMENT OF BOATING AND WATERWAYS FOR A NEW VESSEL PUMP -OUT INSTALLATION; (HARBOR) Councilmember Winholtz requested clarification on how many pump -out installation stations there are in the City, and will it cost more than $5.00 per use to use the new one. Harbor Director Rick Algert responded there are four total pump -out stations for public use; and, this new pump -out station is being placed at the Yacht Club and they are allowed to charge up to $5.00 per use. MOTION: Councilmember Winholtz moved the City Council approve Item A-2 of the Consent Calendar. The motion was seconded by Councilmember Elliott and carried with Councilmember Peirce abstaining. (4-0-1) A-3 RESOLUTION NO. 73-04 SUPPORTING THE PUBLIC WORKS ADVISORY BOARD RECOMMENDATION ON THE TRAFFIC CIRCULATION STUDY FOR STATE PARKS ROAD; (PUBLIC SERVICES) ® Councitmember Peters stated she voted against this item last time it was discussed because she wanted a public hearing; however, she noted that she supports the Public Works Advisory Board recommendation. MOTION: Councilmember Peters moved the City Council approve Item A-3 of the Consent Calendar. The motion was seconded by Councilmember Elliott and carried unanimously. (5-0) A4 AUTHORIZATION TO USE PROPOSITION 40 PER CAPITA FUNDS AND PARK IN LIEU FEES FOR NEW PORTABLE EQUIPMENT FOR THE SKATE PARK; (RECREATION & PARKS) Councilmember Winholtz asked why the equipment couldn't be moved from the Skate Park at Coleman Park over to the Teen Center right now instead of renovating it? Recreation & Parks Director Andrea Lueker responded the Teen Center isn't ready to accept any equipment at this time, so renovations are being made at Coleman Park so it can reopen. MOTION: Councilmember Winholtz moved the City Council approve Item A-4 of the Consent Calendar. The motion was seconded by Councilmember Peters and carried unanimously. (5-0) 5 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — NOVEMBER 8, 2004 A-5 RESOLUTION NO. 76-04 AUTHORIZING SUBMISSION OF RURAL TRANSIT FUND GRANT APPLICATIONS; (ADMINISTRATION) Councilmember Winholtz asked Councilmember Elliott to explain this request. Councilmember Elliott stated if the City does not use this money, it goes back to the State, which he finds unacceptable. He stated this is not an unusual request and that the City might as well attempt to get as much as it can. MOTION: Councilmember Winholtz moved the City Council approve Item A-5 of the Consent Calendar. The motion was seconded by Councilmember Elliott and carried unanimously. (5-0) A-6 AWARD OF BLANCA STREET TANKS REPLACEMENT PROJECT; (PUBLIC SERVICES) Councilmember Winholtz requested clarification on the size of the retaining wall between the tank and the homes. She said she is concerned with how it might affect the surrounding residences. ® Capital Projects Manager Bill Boucher responded the wall was so substantial because it has to go into bedrock. He said most of the wall is underground, and that very little of the wall will be visible (approximately 5 feet); in addition, landscaping will be placed around the wall. MOTION: Councilmember Winholtz moved the City Council approve Item A-6 of the Consent Calendar. The motion was seconded by Councilmember Elliott and carried unanimously. (5-0) B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-I APPEAL OF PLANNING COMMISSION'S DECISION TO APPROVE A MIXED - USE DEVELOPMENT LOCATED AT 360 MORRO BAY BOULEVARD; (PUBLIC SERVICES) Senior Planner Gary Kaiser stated the Planning Commission considered the subject Coastal Development Permit and Parking Exception applications at their regular meeting on September 7, 2004. After considering public testimony, the Commission voted 4:1 (McCandliss dissenting) to approve the applications with an added condition that reassures that the proposed public restrooms would be available for public use. The approved applications allow for the demolition of the existing 568 square foot commercial building and reconstruction of a new 3-story mixed -use building. The proposed commercial ® component would be substantially the same size and location as the existing commercial 11 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — NOVEMBER 8, 2004 building. To the rear of the commercial use, the applicant proposes four one -car garages to serve the four residential units on proposed second and third floors. As part of the project, the applicant proposes to construct public restrooms, but details regarding their maintenance must be negotiated in order for those restrooms to be available for public use. Mr. Kaiser stated the appellant disagrees with the Planning Commission with regard to: 1) the appropriate mix of commercial and residential space; 2) whether the building is architecturally compatible with its surroundings; 3) the in -lieu parking program should not be allowed for residential uses; and 4) that the S4,000 per space in -lieu parking fee should be increased to fully offset the true cost of providing in -lieu parking spaces. Mr. Kaiser recommended the City Council deny the appeal and uphold the Planning Commission's decision to conditionally approve the project. Roger Ewing, applicant, stated this appeal is about following the established zoning ordinances and codes more than the project itself. He said he felt that by allowing this project, it would break the following zoning ordinances: Section 17.2.90 (residential must be secondary and found in rear of facility); Section 17.12.680 (residential use must be incidental to commercial use); Section 17.44.020 (two parking spaces for every two bedroom apartment with one completely enclosed and one covered.) Mr. Ewing stated he ® feels this project is six parking spaces short, and Section 17.44.030 (a 120-foot driveway must have a turnaround). He said this is not about bathrooms but about the integrity and honesty of our codes and ordinances. 11 Ruel Czach, architect of project, stated he feels this project meets all laws of the Housing. Element. He said he feels it is necessary to create a business climate that is pedestrian friendly, that reduces traffic, Mayor Yates opened the hearing for public comment. Julianna Epperly stated Morro Bay needs businesses that are open, and the City should not discourage business growth in the downtown area by telling people how to build on their own property as long as they are following the rules. Gerry Doris stated she supports the denial of this appeal. She said the downtown businesses need pedestrian traffic in order to keep businesses alive. David Nelson stated he likes the concept of placing residences over businesses, but he does not like the idea of building a three-story building. He said he feels this project will make Morro Bay Boulevard looked closed in, and he does not feel its right to be able to use parking -in -lieu fees for residential parking. 7 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —NOVEMBER 8, 2004 Melody DeMeritt stated she agrees that it is not right to use parking in lieu fees for residential units. She said she does like the mixed -use buildings in the downtown area, but she does not believe it should include three-story buildings. Vem Foster stated the rules state that three-story buildings are allowed in Morro Bay. He said if property owners follow the rules, they should be able to build what they want. Mr. Foster stated downtown needs an infusion of business and this will help that cause. Bob Tefft stated the rules say in the downtown area residential uses shall be secondary to commercial uses. He said the I- lieu parking fees are discretionary, and does not feel that using those funds for residential use is appropriate. Mr. TefIt stated parking should be allowed at a reasonable distance to residences. Andy Foster stated he is the proposed contractor of this project. He said the project was designed to meet all zoning ordinances and building codes. Mr. Foster stated they have a dedicated blanket easement thru the Bank of America parking lot. He said this project would enhance and give beauty and vibrancy to the downtown area. Claudia Foster stated she would like to address the "safety of women at night' concern. ® She said she often walks downtown at night and feels very safe, and she would like to see the downtown more conducive to foot traffic. Mayor Yates closed the public comment hearing. Ruell Czach stated without the public restrooms, this project would be retail space. He said the zoning ordinance allows for three-story structures on Morro Bay Boulevard. Mr. Czacb stated a project such as this would make the downtown area more viable. Roger Ewing stated he champions the right of the citizen to speak before the City Council. He said Morro Bay does have a touch of "Mayberry", and that "small town' lifestyle is what people move here for. Mr. Ewing stated if Council approves one 3-story building, it would set a precedent for the rest of Morro Bay Boulevard. He requested Council consider the codes and realize that all projects should follow the letter of the law. Councilmember Elliott stated he feels public restrooms should be removed from the project. _ He said a project that combines residential with commercial units should provide affordable housing, which is not the case with this project. Councilmember Elliott stated he does not like using in -lieu parking fees for residential units, and he does not feel this project will help with the downtown -parking problem. He said he has no problem with the proposed three stories. E MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — NOVEMBER 8, 2004 Councilmember Winholtz stated she agrees there is a problem with parking in the downtown area. She said she also agrees that there is nothing that can be done with the proposed three stories as the code allows for it. Councilmember Winholtz stated she does not understand why there is not more commercial use being proposed for this site. She said she does not feel that the residential use is secondary, and the mixed use is good but not at this percentage. Councilmember Peters stated she supports the placement of public restrooms, noting she has been working for years to get public restrooms in the downtown area. She said she is very appreciative of the applicant's efforts to include public restrooms into this project; unfortunately, the public benefit of the restrooms is offset by the public detriment of parking. Councilmember Peters stated she does not feel like she can support using in -lieu parking fees for residential units, and does not like the precedent it would set. She said she has no problem with the height of the building. Councilmember Peirce stated he has concerns that if they allow the use of in -lieu parking fees for residential, then they will have permanently given away six parking spaces. He said he would be much happier if the applicant would make an agreement with the Bank of America to obtain six spaces from them. He said he has no problem with the height of ® the building. Mayor Yates stated he supports this project with three stories and residential units in the downtown area. He suggested placing a condition to this project by denying the appeal subject to resolving the parking problem. Ruel Zach requested the City Council continue this item to the next meeting; Roger Ewing concurred. MOTION: Councilmember Peters moved the City Council continue the public hearing on the appeal of the Planning Commission's decision to approve a mixed - use development located at 360 Morro Bay Boulevard to the November 22, 2004 City Council meeting. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) B-2 APPEAL OF PLANNING COMMISSION'S DECISION TO APPROVE A 30-UNIT SENIOR COMPLEX FOR LOWER -INCOME RESIDENTS LOCATED AT I I I I MAIN STREET; (PUBLIC SERVICES) Associate Planner Mike Prater stated the proposed project would construct 30 one - bedroom units for lower income seniors. The provision of affordable housing that is especially targeted to the very low and low-income brackets is a key community goal and ® priority. The proposed project would meet all the standards required by Morro Bay ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — NOVEM 3ER 8, 2004 Municipal Code including zoning, building, and fire and applicable provisions of the General Plan and Local Coastal Plan. The Council will need to determine if the project fits on the site, is compatible with the surroundings, and wan -ants a density bonus of 59 percent. The senior complex would have a partial underground parking garage for 33 spaces, all spaces required by ordinance. Access into the parking garage would be from Beach Street. The first floor plan, where the main entrance and lobby would be, provides 14 residences. The second floor plan would comprise the remaining 16 residences along with the activity room, library, and card room. Because commercially zoned land does not have specific density requirement related to residential uses, staff has taken a conservative approach in applying the highest density range allowed under the General Plan, which are 27 dwelling units per acre. Granting a density bonus gives the City Council the authority to exceed the density limits under the General Plan. This approach also gives the City Council more discretion to determine if the proposed project wan -ants a density increase, is compatible with its surroundings including noise, bulk and scale, traffic and parking, provides safe, decent and adequate living conditions, and offers amenities. Mr. Prater recommended the City Council deny the appeal and uphold the Planning Commission's decision to conditionally approve the project. ® Nancy Johnson, appellant, stated she likes the concept of this project, and her appeal is based on the size of this project (159% density variance), which is too large. She said Main Street is a main arterial road, and she feels the property is too small for this sized development. Ms. Johnson stated she would support this project with 20-25 units with the 33 parking spaces versus the 30 units that are proposed. She said the property by the Vons Shopping Center should be considered for a project such as this, noting there is plenty of space and close to amenities. Robert Sanders, representing the applicant, stated he has complied with all regulations. He said he is planning on renting 10 units at $350/month, 10 units at $450/month, and 10 units at $550/month. Mr. Sanders stated he would have to raise the rent to justify the cost of the units if they cut the size of this project. Mayor Yates opened the hearing for public comment. Angie Miller stated she lives in a rent -controlled mobile home park near to this location. She said a project of this magnitude would create too much additional traffic at this proposed location. Gwen Enfonte stated she objects to the density of this project. She suggested a joint effort of the City and community organizations could better suit this situation. 11 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — NOVEMBER 8, 2004 Bill Woodson stated he concurs that this project will impact parking in this neighborhood. He suggested allocating one car per residence leaving three spaces for visitors. Andy Hamp stated he would like the City to minimize the impacts that the high density of this project will have on parking in this neighborhood. He said he agrees that allowing one vehicle per unit as a condition of tenancy would be helpful; he would also like to require the residents to park in the garage; and, he would like the visitors to be encouraged to park in the garage as space allows. Garry Johnson stated he has several concerns such as the high -density variance that sets a precedent for the community. He said he feels this project will increase the parking problem in this area, and he is concerned that the curbs on the comers are not handicap accessible. Melody DeMeritt stated she is concerned that this project will increase traffic on Main Street. Stan House stated the size of this building is within code, and parking is within the requirements. He said based on the Zoning Ordinance, Main Street is not a main arterial ® road. Mr. House stated he is in full support of this project and hopes it is approved. Ken Vesterfelt stated this site was a former gas station, and there was probably more traffic with that business than this project will ever provide. Lila Muellich stated she is the owner of this property, and she feels that there are many amenities very close to this project for the seniors such as a hair dresser, barber shop, dry cleaners, a laundromat, and the senior center to name a few. Mayor Yates closed the public comment hearing. Nancy Johnson, appellant, stated this project would be better served at the location on Quintana Road. She said this project is too big for that comer, and the location is not safe. Mayor Yates stated he supports this project, and it is very tastefully done. He said he agrees there was much more traffic when the gas station was there. Mayor Yates stated he likes the condition that allows one car per unit. Councilmember Peirce stated he is concerned with the parking; however, he can support the project with the stipulation of one car per unit, and would like to require a right turn only out of the parking lot. 11 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — NOVEMBER 8, 2004 Councilmember Peters stated she believes the parking restrictions are good and enforceable, and she is happy with this project and would like to do this for Morro Bay. Councilmember Winholtz stated she thinks this is a good project. She does concur with the parking restrictions, and agrees there should be a right turn only restriction. Councilmember Elliott stated he couldn't imagine arguing with a project that will bring affordable housing to the seniors of Morro Bay. He said he is not concerned with the "right only" turn because most people would be going right anyway. Councilmember Elliott stated he agrees with no more than one car per unit. He said he is in support of this project, and feels that this is a project that the City can be very proud of. MOTION: Mayor Yates moved the. City Council deny the appeal and uphold the Planning Commission's decision to conditionally -approve the 30-unit senior complex for lower -income residents located at I I I I Main Street with the condition of requiring the owner to limit one car per unit. The motion was seconded by Councilmember Peters and carried unanimously. (5-0) ® B-3 APPEAL OF PLANNING COMMISSION'S DECISION TO APPROVE A 5-UNIT APARTMENT COMPLEX LOCATED AT 2600 MAIN STREET; (PUBLIC SERVICES) Associate Planner Mike Prater stated the proposed project site has recently been merged into one lot of approximately 8,573 square feet. The current zoning is MCR/R4 allowing 1,800 square feet per unit under base density, which would be 4 residential units. The proposed project would demolish existing commercial buildings totaling approximately 1,750 square feet and construct 5 new attached residential units. The construction would be two -stories in height with 4 covered parking spaces and a detached 3-car garage. An affordable agreement restricting the one -bedroom rental unit to an approximate maximum rent of $1,110 per month under the moderate -income category would be part of this approval. The appellants contends the additional five feet requested by the applicant is not on his own property and by allowing him the reduced setback would take away 100% of their view. In addition, the moderate -income affordability target does not justify the exception. Mr. Prater recommended the City Council deny the appeal and uphold the Planning Commission's decision to conditionally approve the project. Barbara Craddock, appellant, stated she lives next door to the proposed project. She said taking away parking would impact all residences on Pico Street. Ms. Craddock stated she objects to the Planning Department's suggestions to allow construction of a five -unit apartment building with the following exceptions: 1) a density bonus of 5%; 2) reduced ® parking; and 3) reduced setback requirements on Pico Street. She said she could 12 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING—NOVEMBER 8, 2004 understand allowing exceptions for a commercial business, but not a residential complex. Ms. Craddock stated $1,100/month for a one -bedroom apartment isn't "moderately affordable" in her opinion. Bill Rice, applicant, stated he is offering incentives for the variance of a five-foot setback for this project. Mayor Yates opened the hearing for public comment; being there were no public comments, Mayor Yates closed the public comment hearing. Councilmember Peters stated the City does not typically grant variances if it is not consistent with the rest of the neighborhood. She said the proposed front setback is not consistent with the rest of the houses in that neighborhood. Councilmember Peirce stated the setbacks should remain consistent. Councilmember Winholtz stated there is no reason to make this project an exception to the neighborhood. She also noted that $1,100 is not moderate rent. ® Councilmember Elliott stated he agrees with the setback issue. He said he agrees that $1,100 is not affordable rent, and he does not believe there is sufficient benefit to allow these exceptions. 41 Mr. Prater stated that if the project was reduced to 4 units by removing a studio, then it would meet the density requirements, setback requirements, and the deed restriction would be removed. MOTION: Mayor Yates moved the City Council uphold the appeal to approve a 5-unit apartment complex located at 2600 Main Street, and require the project to be reduced from 5 units to 4 units total and require the setback on Pico Street to 15 feet. Council further directed staff to modify the conditions as appropriate to achieve this action. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) 13 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — NOVEMBER 8, 2004 C. UNFINISHED BUSINESS C-1 RESOLUTION NO. 74-04 AUTHORIZING THE SALE OF CITY -OWNED PROPERTY LOCATED AT 220 ATASCADERO ROAD; (CITY ATTORNEY) City Attorney Robert Schultz stated in October 2001, the City purchased the property at 220 Atascadero Road in the amount of $845,000. At the time of purchase, the property was being considered for use as a City youth center. However, an alternative site was found for the youth center. For a period of time the property was used as a City storage facility but is currently empty. As a concept, it is not a good idea for a public entity to sell real property, the Council has determined that the property is surplus and there is no need for the property. Therefore, pursuant to Government Code Section 37421 and Resolution No. 43-04, the City notified the citizens of its intention to sell the City -owned property. At the July 12, 2004 Council meeting, having received protests to the sale of the property, the Council by more than 4/5'h vote, authorized staff to proceed with procuring a buyer for the property. On October 16, 2004, Sue Reese accepted the terms and conditions of the Commercial Property Purchase Agreement, and will purchase the property at 220 Atascadero Road for $1,315,000. Mr. Schultz recommended the City Council adopt Resolution No. 74-04 approving the final Commercial Property Purchase Agreement, and ® also approving the sale of City -owned property located at 220 Atascadero Road. MOTION: Councilmember Peirce moved the City Council adopt Resolution No 74-04 authorizing the sale of City -owned property located at 220 Atascadero Road. The motion was seconded by Councilmember Elliott and carved unanimously. (5-0) D. NEW BUSINESS — NONE. E. ADJOURNMENT The meeting adjourned at 10:25 p.m. Recorded by: 2!ie Boucher Deputy City Clerk 11 14 ® City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life. The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING — OCTOBER 25, 2004 CLOSED SESSION — OCTOBER 25, 2004 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA CS-1 GOVERNMENT CODE SECTION 54956.8; REAL PROPERTY TRANSACTIONS. Instructing City's real property negotiator regarding the ® price and terms of payment for the purchase, sale, exchange, or lease of real property as to one (1) parcel: Pro : Water Outfall Line Easement. Negotiating Parties: Duke Energy and the City of Morro Bay. Negotiations: Renegotiation and extension of terms and conditions of lease agreement. CS-2 GOVERNMENT CODE SECTION 54957; PERSONNEL ISSUES. Discussions regarding Personnel Issues including one (1) public employee regarding evaluation, specifically the City Attorney. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. 11 PUBLIC SESSION — OCtOBER 25, 2004 VETERANS MEMORIAL HALL - 6:00 P.M. ® 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCILMEMBERS ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period, the following rules shall be followed: • When recognized by the Mayor, please come forward to the podium and.state your name and address for the record. Comments are to be limited to three minutes. • All remarks shall be addressed to Council, as a whole, and not to any individual member thereof. • The Council respectfully requests that you refrain from making slanderous, ® profane or personal remarks against any elected official, commission and/or staff. • Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering. • Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting. • Your participation in City Council meetings is welcome and your courtesy will be appreciated. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 772-6205. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES FOR THE REGULAR MEETING ON OCTOBER 11, 2004; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. 2 ® A-2 ORDINANCE NO. 504 ADOPTING REGULATIONS ON PAN -HANDLING. - SECOND READING/ADOPTION; (CITY ATTORNEY) RECOMMENDATION: Approve second reading and adoption of Ordinance No. 504. A-3 TRANSMITTAL OF FISCAL YEAR 2002-2003 AUDIT; (FINANCE) RECOMMENDATION: Accept the Financial Audit for Fiscal Year 2002-2003. A-4 RESOLUTION TO ACCEPT A GRANT FROM THE STATE DEPARTMENT OF BOATING AND WATERWAYS FOR A NEW VESSEL PUMPOUT INSTALLATION; (HARBOR) RECOMMENDATION: This item has been pulled from the agenda. A-5 RESOLUTION NO. 69-04 APPROVING FINAL MAP FOR TRACT 2556 - SUNSET AVENUE; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 69-04. A-6 RESOLUTION NO. 71-04 APPROVING THE APPLICATION FOR GRANT FUNDS FOR THE ROBERTI-Z'BERG-HARRIS NON -URBANIZED AREA NEED -BASED PROGRAM FOR DEL MAR TENNIS COURTS; (RECREATION ® & PARKS) RECOMMENDATION: Adopt Resolution No. 71-04. A-7 APPROVE DISTRIBUTION OF THE FIRE DEPARTMENT SURVEY TO ALL WATER BILL RECIPIENTS AND RESIDENTS OF MORRO BAY; (FIRE) RECOMMENDATION: Approve the Ad -Hoc Emergency Services Committee distribution of Fire Department surveys to all 6,101 addresses in Morro Bay. A-8 RESOLUTION NO. 72-04 IN SUPPORT OF BALLOT PROPOSITION I -A — PROTECTION OF LOCAL GOVERNMENT REVENUES; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 72-04. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-I RESOLUTION NO. 70-04 APPROVING REVISIONS TO THE HOUSING ELEMENT OF THE GENERAL PLAN, AND DISCUSSION ON AFFORDABLE HOUSING OPPORTUNITIES ® RECOMMENDATION: Adopt Resolution No. 70-04. t C. UNFINISHED BUSINESS ® C-1 REPORT ON ISSUES RELATED TO RENOVATING AND PLACING IN USE THE BUILDING LOCATED AT 781 MARKET STREET; (PUBLIC SERVICES) RECOMMENDATION: Discuss and direct staff accordingly. C-2 DISCUSSION ON MORRO BAY STATE PARK TRAFFIC CIRCULATION STUDY; (PUBLIC SERVICES) RECOMMENDATION: Receive presentation, discuss, and direct staff to return to the neat meeting with a resolution formalizing the resultant Council action on the subject. C-3 REPORT ON INSTALLATION OF DIRECTIONAL SIGNS; (PUBLIC SERVICES) RECOMMENDATION: Receive and file update on improvements to the existing directional signage, and provide direction on developing a comprehensive program for directional signage for tourists that also strengthens community identity. D. NEW BUSINESS —NONE. ® E. ADJOURNMENT THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TIME SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 772-6200 FOR FURTHER INFORMATION. COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST AT CITY HALL, LIBRARY, AND MILLS STATIONERY. IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. 4 MINUTES - MORRO BAY CITY COUNCIL ® CLOSED SESSION — OCTOBER 25, 2004 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Yates called the meeting to order at 5:00 p.m. PRESENT: William Yates Mayor Dave Elliott Councilmember William Peirce Councilmember Janice Peters Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix City Manager Robert Schultz City Attorney CLOSED SESSION MOTION: Councilmember Peirce moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Peters and unanimously carried. (5-0) Mayor Yates read the Closed Session Statement. ® CS-1 GOVERNMENT CODE SECTION 54956.8; REAL PROPERTY TRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property as to one (1) parcel: Pro : Water Outfall Line Easement. Negotiating Parties: Duke Energy and the City of Morro Bay. Negotiations: Renegotiation and extension of terms and conditions of lease agreement. CS-2 GOVERNMENT CODE SECTION 54957: PERSONNEL ISSUES. Discussions regarding Personnel Issues including one (1) public employee regarding evaluation, specifically the City Attorney. The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:50 P.M. MOTION: Councilmember Peirce moved the meeting be adjourned. The motion was seconded by Councilmember Winholtz and unanimously carried. (5-0) The meeting adjourned at 5:50 p.m. C ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING.— OCTOBER 25, 2004 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Yates called the meeting to order at 6:00 p.m. PRESENT: William Yates Mayor Dave Elliott Councilmember William Peirce Councilmember Janice Peters Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix Robert Schultz Bridgett Bauer Rick Algert Bruce Ambo Bill Boucher Greig Cummings Frank Cunningham John DeRohan Mike Pond Mike Prater ® Jim Koser Andrea Lueker 11 City Manager City Attorney City Clerk Harbor Director Public Services Director Capital Projects Manager Planning Manager City Engineer Police Chief Fire Chief Associate Planner Finance Director Recreation & Parks Director ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR'S REPORTS & ANNOUNCEMENTS CLOSED SESSION REPORT - City Attorney Robert Schultz reported the City Council met in Closed Session, and no reportable action under the Brown Act was taken. PUBLIC COMMENT Hershel Parker stated State Parks has removed the fence along the dunes from Azure Street parking lot to Morro Rock. He said State Parks is under -funded and under -staffed and its employees are becoming punchy from all the attacks made by the City. Mr. Parker stated the beaches were never closed to the public, but the dunes were closed for the plover -nesting season. He said older people need the beach for exercise and better health. Tish Tefft shared a story about a resident who called for a candidates yard sign to appease an 11-year old supporter for this candidate. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 25, 2004 Priscilla Coe shared some of her customers' positive responses on their stay in Morro Bay, alsoknown as paradise. She also stated the City should capitalize on the ADA lawsuit issue by sharing their story with the media. David Nelson referred to Duke Energy and stated they have been draining the City's estuary for 50 years for free, and it is killing the estuary. He said in 2000/2001, they took a billion and half dollars out of California, and they are still being investigated for that. Mr. Nelson stated the power plant would not be missed if it were removed. Ed Dumong asked what is the City's position on the Los Osos Sewer System, and noted the sewer stench from the back bay. He also referred to the Panhandling Ordinance, and stated this law should not be enforced due to one person. Noah Smukler stated he is in support of Measure Q. He said the organism is crossing the line that never has been done on this planet, and this would show itself in the younger generations. Mr. Smukler stated there are a lot of problems with genetic farming in the Midwest. ® Nanci Dumong referred to her letter to the editor about the proposed Panhandling Ordinance. She asked how one person could bring upon a law for the whole City, and noted this person has rights. r] L Ken Vesterfelt stated he attended the joint City Council/Community Promotions Committee meeting, and requested the City consider the possibility of locating a facility that will accommodate 300-400 people in the City. Stan House expressed support for Item C-1 (Report on Issues Related to Renovating and Placing In Use the Building Located at 781 Market Street), and noted he feels the City should sell this property. He announced the Morro Bay High School's Homecoming is this week. Mr. House stated he would be hosting a win -lose -or draw no -host breakfast at Dom's Restaurant the morning after the election. Melody DeMeritt stated she has had a lot of fun running for City Council. She said the City should encourage high -end shopping, and promote Morro Bay as the gateway to Highway 1. Wendy Kerchowski referred to the Panhandling Ordinance, and said there are various reasons for people asking for money. She asked what is the difference between going to the Salvation Army and asking for help, and asking for help in front of a store. Ms. Kerchowski requested the City Council take a close look at the definition of panhandling. 3 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 25, 2004 Nancy Johnson stated she does not want the City to make a law for one person; however, Morro Bay needs to protect their citizens from an aggressive panhandler. Roger Ewing referred to the agenda process, and requested increased publication of the issues for better community awareness. He commended Councilmember Elliott for his eight years on the City Council, and as the City's representative on San Luis Obispo Council of Governments. Marilyn McDermott referred to the Panhandling Ordinance and stated the City should be more respectful of the less fortunate. John Barta stated the granny housing must have adequate parking before it is approved. He said while traveling in Aspen, Colorado, there was a roadside telephone with a sign stating "Road Rage Hotline." Nancy Castle requested Council look at the benefits of the property at 781 Market Avenue. She said it is a phenomenal location that can be a gateway between the waterfront and downtown business area ® Dannie Tope agreed the property at 781 Market Avenue should be maintained. She said . this property is the City's key to linking downtown with the Embarcadero. Laura Lopez stated local restaurants would be participating on Wednesday in donating part of their proceeds in support of Measure Q. Mayor Yates closed the hearing for public comment. DECLARATION OF FUTURE AGENDA ITEMS Councihnember Winholtz requested to agendize the discussion of opening the parking lot that dead -ends on Sequoia Street into a through street to Ironwood Avenue. Mayor Yates requested to agendize the discussion of the ADA permit streamlining fee waivers. Mayor Yates requested to agendize the discussion of a policy regarding the use of City facilities for meetings and community events. Mayor Yates called for a break at 7:15 p.m.; the meeting resumed at 7:35 p.m. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 25, 2004 A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A -I APPROVAL OF MINUTES FOR THE REGULAR MEETING ON OCTOBER 11, 2004; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 ORDINANCE NO. 504 ADOPTING REGULATIONS ON PAN -HANDLING - SECOND READING/ADOPTION; (CITY ATTORNEY) RECOMMENDATION: Approve second reading and adoption of Ordinance No. 504. A-3 TRANSMITTAL OF FISCAL YEAR 2002-2003 AUDIT; (FINANCE) RECOMMENDATION: Accept the Financial Audit for Fiscal Year 2002-2003. AEI RESOLUTION TO ACCEPT A GRANT FROM THE STATE DEPARTMENT OF BOATING AND WATERWAYS FOR A NEW VESSEL PUMPOUT INSTALLATION; (HARBOR) RECOMMENDATION: This item has been pulled from the agenda. A-5 RESOLUTION NO. 69-04 APPROVING FINAL MAP FOR TRACT 2556 - SUNSET AVENUE; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 69-04. A-6 RESOLUTION NO. 71-04 APPROVING THE APPLICATION FOR GRANT FUNDS FOR THE ROBERTI-Z'BERG-HARRIS NON -URBANIZED AREA NEED -BASED PROGRAM FOR DEL MAR TENNIS COURTS; (RECREATION & PARKS) RECOMMENDATION: Adopt Resolution No. 71-04. E 5 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 25, 2004 A-7 APPROVE DISTRIBUTION OF THE FIRE DEPARTMENT SURVEY TO ALL WATER BILL RECIPIENTS AND RESIDENTS OF MORRO BAY; (FIRE) RECOMMENDATION: Approve the Ad -Hoc Emergency Services Committee distribution of Fire Department surveys to all 6,101 addresses in Morro Bay. A-8 RESOLUTION NO. 72-04 IN SUPPORT OF BALLOT PROPOSITION 1-A — PROTECTION OF LOCAL GOVERNMENT REVENUES; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 72-04. Mayor Yates pulled Item A-3 from the Consent Calendar. MOTION: Councilmember Winholtz moved the City Council approve Item A-3 of the Consent Calendar. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) ® Councilmember Winholtz pulled Items A-2 and A-5 of the Consent Calendar; Councilmember Elliott pulled Item A-8. MOTION: Councilmember Winholtz moved the City Council approve the Consent Calendar with the exception of Items A-2, A-5 and A-8. The motion was seconded by Councilmember Peters and carried unanimously. (5-0) A-2 ORDINANCE NO. 504 ADOPTING REGULATIONS ON PAN -HANDLING - SECOND READING/ADOPTION; (CITY ATTORNEY) Councilmember Winholtz stated she would be voting in opposition to this item due to the addition of language "requesting an immediate donation of money ...". MOTION: Councilmember Peirce moved the City Council approve Item A-2 of the Consent Calendar. The motion was seconded by Councilmember Elliott and carried with Councilmember Winholtz voting no. (4-1) A-5 RESOLUTION NO. 69-04 APPROVING FINAL MAP FOR TRACT 2556 - SUNSET AVENUE; (PUBLIC SERVICES) Councilmember Winholtz asked for clarification on the "joint -ownership of property." E C ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 25, 2004 Planning Manager Greig Cummings responded the property being referred to would be for an easement. Public Services Director Bruce Ambo further clarified that presently there is one property owner that is dedicating this property, and this creates the ability to sell pieces of this property in the future. MOTION: Councilmember Peirce moved the City Council approve Item A-5 of the Consent Calendar. The motion was seconded by Councilmember Peters and carried unanimously. (5-0) A-8 RESOLUTION NO. 72-04 IN SUPPORT OF BALLOT PROPOSITION 1-A — PROTECTION OF LOCAL GOVERNMENT REVENUES; (ADMINISTRATION) Councilmember Elliott stated he would be voting in opposition to this item because he is opposed to Proposition 1-A, and supports Proposition 65. ® MOTION: Councilmember Peters moved the City Council approve Item A-8 of the Consent Calendar. The motion was seconded by Councilmember Peirce and carried with Councilmember Elliott and Councilmember Winholtz voting no. (3-2) B. PUBLIC HEARINGS, REPORTS & APPEARANCES B-1 RESOLUTION NO. 70-04 APPROVING REVISIONS TO THE HOUSING ELEMENT OF THE GENERAL PLAN, AND DISCUSSION ON AFFORDABLE HOUSING OPPORTUNITIES Associate Planner Mike Prater stated the State Housing and Community Development Department (HCD) has mandated that all cities complete an update to their Housing Element. The City Council approved the Element in October 2003. Since then, staff has been working diligently with HCD to certify our Housing Element. On September 8, 2004, HCD contacted staff by written acknowledgement that after a formal review felt that the proposed changes will bring the Housing Element into compliance with State regulations, and that HCD will certify it. Mr. Prater recommended the City Council discuss the affordable housing policies and programs in the Housing Element, and review and approve the revisions recommended by the State Housing and Community Development Department to the Housing Element by adoption of Resolution No. 70-04 as recommended by the Planning Commission. Mayor Yates opened the hearing for public comment. 7 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 25, 2004 Ken Vesterfelt stated affordable housing and low-income housing are two different factors. He said• a developer would have to find the appropriate property to build low- income housing, which will be difficult. Mr. Vesterfelt stated this issue needs more community involvement. Melody DeMeritt stated the 2020 Vision Committee has been reviewing this topic. She asked what is the benefit to the City from the Colmer Project in North Morro Bay, and asked for a clearer picture of this project. Mayor Yates closed the public comment hearing. Councilmember Elliott stated finding affordable housing in Morro Bay is going to be difficult. He said there is no difference in low-income housing and affordable housing. Councilmember Elliott stated this issue should be a ballot measure put to the vote of the people. Councilmember Winholtz stated along with reviewing the Housing Element, the City ® should also look at subsidies. She said she would like to see a reduction in the size of living area that the City requires. C1 Councilmember Peters agreed that smaller residential units would be more affordable. She noted the community was in support of the Colmer Subdivision. Councilmember Peters stated People Self Help Housing would be in charge of what can be charged for low-income housing. She said zoning needs to be reviewed on where in the community would be best for higher density projects. Councilmember Peirce stated he does not see the City subsidizing housing. He said it is a problem, and those who need low-income housing would not be able to vote on this issue because they can't afford to live here. MOTION: Councilmember Peirce moved the City Council adopt Resolution No. 70-04 approving the revisions to the Housing Element as recommended by the State Housing and Community Development Department. The motion was seconded by Councilmember Peters and carried unanimously. (5-0) 0 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 25, 2004 C. UNFINISHED BUSINESS C-1 REPORT ON ISSUES RELATED TO RENOVATING AND PLACING IN USE THE BUILDING LOCATED AT 781 MARKET STREET; (PUBLIC SERVICES) Capital Projects Manager Bill Boucher stated the City purchased two abutting parcels of land in June 2003. One was the former trailer park at 714 Embarcadero and the other was known as the Hungry Tiger property located at 781 Market Avenue. The trailer park is currently used as a public parking lot and the Hungry Tiger property was recently investigated for commercial redevelopment. As result of an apparent lack of investor interest in a redevelopment scenario, the City Council at their September 27, 2004 meeting, directed staff to bring back a status report on the building including the costs to demolish the structure or to remodel .for occupancy. When the City purchased the property in 2003, a number of inspections were performed including evaluations of the electrical system, a pest report and an initial analysis of the buildings extensive masonry retaining wall system. The Project Improvement Group of the City consisting of the Capital Projects Manager, Planning Manager, City Engineer, Building Inspector, Facilities Superintendent, Recreation and Parks Director and Public Services Director met to discuss the City Council direction and to ® provide information on the subject property. Three options came to light in discussing the future of the building at 781 Market Avenue. The first is to simply re -open the building for a commercial purpose, another is to renovate the property to accommodate some other commercial use and the third is to demolish the building and prepare the site for a future development. Mr. Boucher recommended the City Council consider this report and direct staff accordingly. Councilmember Elliott stated the building on Market Avenue is built in an "L" shape because there is a kitchen on top. He said if the kitchen were removed, there would be more space. Councilmember Elliott stated this is a viable property that could be a mini -conference center. He noted a recommendation from former Council Member Colby Cromer on placing a funicular from the Embarcadero up to Market Avenue, which is a great idea in bringing the Embarcadero together with the downtown business district. Councilmember Peirce stated the City should direct staff to investigate the structure with the idea of using the upper floor for meetings, and catering could be performed in a downstairs kitchen. Councilmember Peters stated this building has a real potential for meeting space. She suggested having a service kitchen and bar upstairs with a dumb -waiter going from the downstairs kitchen to the upstairs service kitchen. 0 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 25, 2004 Mayor Yates stated he feels this particular building would be difficult to use for meeting space. Councilmember Winholtz stated it is good to receive the information now, and perhaps revisit this issue during the budget hearings. Councilmember Elliott offered his $3,000 in discretionary funds to get the study underway for this project. Councilmember Peters stated she would contribute the remainder of her discretionary funds after her commitment to place lighting on the stairs on Front Street is complete. Mayor Yates offered $500 of his discretionary funds for this project. Councilmember Peirce offered $500 of his discretionary funds. MOTION: Councilmember Peters moved the City Council direct the Public Services ® Department to set-up a project with the $4,000 from the following Council discretionary funds: $3,000 from Councilmember Elliott; $500 from Mayor Yates; and, $500 from Councilmember Peirce, to study URM issues related to the renovation of the building located at 781 Market Avenue. The motion was seconded by Councilmember Elliott and carried unanimously. (5-0) C-2 DISCUSSION ON MORRO BAY STATE PARK TRAFFIC CIRCULATION STUDY; (PUBLIC SERVICES) Capital Projects Manager Bill Boucher stated in an effort to see improved bicycle and pedestrian facilities both within Morro Bay State Park and connecting to existing routes in and out of the City, the San Luis Obispo Council of Governments (SLOCOG) hired a traffic engineering consultant, Orosz Engineering Group of Santa Ynez, to prepare a traffic circulation study for the park. The study is intended to provide a range of options for bike and walking amenities for use by State Park patrons as well as the public at large. Options varied from ones requiring minimal new construction and expense to ones involving substantial long-term financial commitments for environmental analysis, permitting and construction. A technical working group comprised of staff from SLOCOG, the City and State Parks and bicycling and walking advocates helped in the compilation of options. The study was fast brought to the Public Works Advisory Board at their August meeting. SLOCOG staff and the consultant made a presentation and the Board was asked to reagendize the matter for the September meeting. The study and its exhibits were provided to the City Council and placed at a number of public places for ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 25, 2004 public review and comment. The Public Works Advisory Board heard the item again at their September meeting, took public comments and forwarded a recommendation to the City Council incorporating two motions: 1) that the lower road remain two-way with an added Class 1 bike trail, preferably on the west side, all the way from Main Street to South Bay Boulevard; and 2) to keep both roads two-way with a Class 1 bike path along the lower road. Mr. Boucher recommended the City Council hear the presentation, discuss the matter, and direct staff to return at the next meeting with a resolution formalizing the resultant Council action on this subject. Mayor Yates stated this issue merits a public hearing, and he supports bringing this back to Council at the next meeting. He also said he supports the recommendations received from the Public Works Advisory Board, and perhaps Council should direct staff to return to the next meeting with a resolution. Councilmember Elliott stated this issue should be heard as a public hearing before the City Council; however, there is not enough information received to merit a public hearing at this time. He said he also supports the Public Works Advisory Board recommendations. Councilmember Elliott stated State Park Road has become a collector ® road, which needs to be rehabilitated. Councilmember Winholtz stated she appreciates the fact that this is coming before Council prior to being a project. Councilmember Peters suggested using the service road for the bike path avoiding the narrowest part of State Park Road. She said this should be a public hearing item so State Parks can use the community input. Councilmember Peirce stated he supports the idea of moving the pedestrian and bike path away from the road. He said State Park Road should remain a two-way road, especially to allow for public safety vehicles. MOTION: Councilmember Elliott moved the City Council authorize staff to return with a resolution supporting the Public Works Advisory Board recommendation on the traffic circulation study for State Parks Road. The motion was seconded by Councilmember Peirce and carried with Councilmember Peters voting no. (4-1) Mayor Yates called for a break at 9:40 p.m.; the meeting resumed at 9:50 p.m. E 11 ® C-3 REPORT ON INSTALLATION OF DIRECTIONAL SIGNS; (PUBLIC SERVICES) Public Services Director Bruce Ambo stated the Sign Committee and Community Promotions Committee developed a package of recommendations to eliminate obsolete and confusing signage. On September 27, 2004, the City Council directed staff to return with a program for replacing the directional signage. Some of the existing signs have been relocated or replaced, and new signs are on order for installation at key entries in the City at Highway 1 and Morro Bay Boulevard, Main Street at Beach Street, and Main Street at Driftwood Street. An opportunity exists to develop a more effective directional signage program that also strengthens the community's image. The benefits of a comprehensive directional signage program are numerous. Signage would assist visitors in finding their way around town and also identify key public attractions and facilities. The process of developing the program would be an inclusive community exercise enlisting the input of residents, businesses, the Sign Committee and Community Promotions Committee. Mr. Ambo recommended the City Council receive this update on improvements to the existing directional signage, and provide direction on developing a comprehensive program for directional signage for tourists that also strengthens community identity. Councilmember Peirce stated he is interested in improving the directional signage. Councilmember Peters stated she also supports improving the City's directional signs. She also recommended obtaining sponsors for signage. ® Mayor Yates stated he supports obtaining funds and keep this program moving. Councilmember Winholtz stated she is concerned with the immediate amount of money needed for this sign program. Councilmember Elliott stated it is important to remove the clutter of signs that are presently posted. MOTION: Councilmember Peirce moved the City Council authorize staff to spend $10,000 from the Community Development Block Grant Program Income Fund to initiate a process to develop a long-term directional sign program. The motion was seconded by Councilmember Peters and carried unanimously. (5-0) D. NEW BUSINESS —NONE. ADJOURNMENT -The meeting adjourned at 10:10 p.m. R llnd'qgrded by: uer a" / City Clerk 12 NOTICE OF SPECIAL MEETING NOTICE IS HEREBY GIVEN that the Morro Bay City Council will be holding a Special Meeting on Thursday, October 21, 2004 at 9:00 a.m. to be held in the Veterans' Memorial Building, 209 Surf Street, Morro Bay, California. The City Council will be meeting with the City's Community - Promotions Committee to discuss various Community Promotion issues. ® DATED: October 14, 2004 Bridgett BAer, City Clerk City of Morro Bay ® City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life. The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING — OCTOBER 11, 2004 CLOSED SESSION — OCTOBER 11, 2004 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA CS-1 GOVERNMENT CODE _SECTION 54956.8; REAL PROPERTY ® TRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property as to one (1) parcel: Property: Water Outfall Line Easement. Negotiating Parties: Duke Energy and the City of Morro Bay. Negotiations: Renegotiation and extension of terms and conditions of lease agreement. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. 11 PUBLIC SESSION — OCTOBER 11, 2004 VETERANS MEMORIAL HALL - 6:00 P.M. ® 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCILMEMBERS ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period, the following rules shall be followed: • When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments are to be limited to three minutes. • All remarks shall be addressed to Council, as a whole, and not to any individual member thereof. • The Council respectfully requests that you refrain from making slanderous, ® profane or personal remarks against any elected official, commission and/or staff. • Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering. • Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting. • Your participation in City Council meetings is welcome and your courtesy will be appreciated. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 772-6205. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A -I APPROVAL OF MINUTES FOR THE REGULAR MEETINGS ON ® SEPTEMBER 13, 2004 AND SEPTEMBER 27, 2004; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 PROCLAMATION DECLARING OCTOBER 23-31, 2004 AS "RED RIBBON WEEK" ® RECOMMENDATION: Adopt Proclamation. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 ORDINANCE NO. 504 ADOPTING REGULATIONS ON PAN -HANDLING - FIRST READINGANTRODUCTION; (CITY ATTORNEY) RECOMMENDATION: Approve first reading and introduction of Ordinance No. 504 by number and title only. C. UNFINISHED BUSINESS — NONE. D. NEW BUSINESS D-1 DISCUSSION ON GIVING LOCAL BUSINESSES PREFERENCE ON PUBLIC WORKS CONTRACTS; (CITY COUNCIL) RECOMMENDATION: Staff recommends Council not adopt a Local Business Enterprise preference for public works contracts. D-2 REPORT ON PURSUING LEGISLATION REGARDING APPLICATION OF ® TRANSIENT OCCUPANCY TAX TO STATE PARKS CAMPGROUNDS; (CITY COUNCIL) RECOMMENDATION: Authorize staff to pursue this revenue concept, to continue to investigate arrangements for professional legislative representation when needed, and to report back with specific recommendations on alternatives to be pursued. D-3 REVIEW OF LOT SIZES ON REMAINING BUILDABLE LOTS IN MORRO BAY; (CITY COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. �/]f/lllIR loll l THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TIME SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 7726200 FOR FURTHER INFORMATION. COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC ViSPF.CTION AND REPRODUCTION AT COST AT CITY HALL, LIBRARY, AND MILLS STATIONERY. IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ® ACCESSIBILM'TO THE MEETING. 3 ® MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION — OCTOBER 11, 2004 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Yates called the meeting to order at 5:00 p.m. PRESENT: William Yates Mayor William Peirce Councilmember Janice Peters Councilmember Betty Winholtz Councilmember STAFF CLOSED SESSION Dave Elliott Robert Hendrix Robert Schultz Councilmember City Manager City Attorney MOTION: Councilmember Peirce moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Peters and unanimously carried. (4-0) Mayor Yates read the Closed Session Statement. is CS-1 GOVERNMENT CODE SECTION 54956.8; REAL PROPERTY TRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property as to one (1) parcel: • Property: Water Outfall Line Easement. Negotiating Parties: Duke Energy and the City of Morro Bay. Negotiations: Renegotiation and extension of terms and conditions of lease agreement. The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:45 p.m. MOTION: Councilmember Peters moved the meeting be adjourned. The motion was seconded by Councilmember Peirce and unanimously carried. (4-0) The meeting adjourned at 5:45 p.m. E MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — OCTOBER 11, 2004 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Yates called the meeting to order at 6:00 p.m PRESENT: William Yates Mayor William Peirce Councilmember Janice Peters Councilmember Betty Winholtz Councilmember ABSENT: Dave Elliott Councilmember STAFF: Robert Hendrix City Manager Robert Schultz City Attorney Bridgett Bauer City Clerk Rick Algert Harbor Director Bruce Ambo Public Services Director John DeRohan Police Chief Jim Koser Finance Director Andrea Lueker , Recreation & Parks Director Mike Pond Fire Chief Mike Prater Associate Planner ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR'S REPORTS & ANNOUNCEMENTS CLOSED SESSION REPORT - City Attorney Robert Schultz reported the City Council met in Closed Session, and no reportable action under the Brown Act was taken. PUBLIC COMMENT The following people expressed support for Measure L — the Library Initiative: Hilary Sanner, Barry Dorfman, Gia Rupp, Jude Long, Beth McKenzie, Joan Decker, and Ellen Baker. Hilary Sanner announced the Morro Bay United Methodist Children's Center has a license for after -school childcare. Noah Smukler announced a forum on Measure Q regarding genetic engineering would be held on October 22nd at St. Peter's Episcopal Church. 2 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 11, 2004 Hershel Parker addressed the danger of elderly people walking on the beach and being approached by dogs. He requested the City make it safer for older people to walk on the beach. Stan House thanked those who were responsible for scheduling the World Championship Down Hill Slalom Skateboard Races that were in town this weekend. He also asked why the fencing has not been removed from the beach since the snowy plover nesting season is over. Mr. House expressed support for Item D-2 (Report on Pursuing Legislation Regarding Application of Transient Occupancy Tax to State Parks Campgrounds). Bob Tefft discussed densification in the City of Morro Bay. He said it is a myth that Morro Bay has a shortage of housing for people who work in the City. Mr. Tefft stated it is also a myth that housing in Morro Bay is very expensive. Melody DeMeritt thanked the Chamber of Commerce and Police Officer Association for sponsoring last week's candidates' forum. She encouraged citizens to view the re -run of the forum on Channel 20, or read information on the candidates before voting on November 2nd. Ms. DeMeritt referred to Item D-2 and cautioned Council about hiring a ® consultant regarding State Parks issue. Ken Vesterfelt addressed the number of employees who work for the Police Department, the number of police cars in the department, and the number of citations that are issued. He said the skateboard event was a great event. Mr. Vesterfelt also encouraged everyone to vote on November 2ad. Mayor Yates closed the hearing for public comment. DECLARATION OF FUTURE AGENDA ITEMS — None. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES FOR THE REGULAR MEETINGS ON SEPTEMBER 13, 2004 AND SEPTEMBER 27, 2004; (ADMIIIISTRATION) RECOMMENDATION: Approve as submitted. MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — OCTOBER 11, 2004 A-2 PROCLAMATION DECLARING OCTOBER 23-31, 2004 AS "RED RIBBON WEEK" RECOMMENDATION: Adopt Proclamation. Councilmember Peters pulled Item A-1 from the Consent Calendar. MOTION: Councilmember Peirce moved the City Council approve Item A-2 of the Consent Calendar. The motion was seconded by Councilmember Winholtz and carried unanimously. (4-0) A-1 APPROVAL OF MINUTES FOR THE REGULAR MEETINGS ON SEPTEMBER 13, 2004 AND SEPTEMBER 27, 2004; (ADMINISTRATION) Councilmember Peters referred to the minutes of September 13, 2004, page 8, and requested an amendment to her comment on the Main Street/Quintana Road project. MOTION: Councilmember Peters moved the City Council approve Item A-1 as ® amended. The motion was seconded by Councilmember Winholtz and carried unanimously. (4-0) Mayor Yates called for a break at 6:45 p.m.; the meeting resumed at 7:00 p.m. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 ORDINANCE NO.504 ADOPTING REGULATIONS ON PAN -HANDLING - FIRST READING/INTRODUCTION; (CITY ATTORNEY) City Attorney Robert Schultz stated the City currently has an ordinance pertaining to the "Solicitation of Business and Distribution of Advertising Material". However, the definition of "Solicitor" in our ordinance does not include one who is seeking the donation of money. At the May 10, 2004 City Council meeting, Councilmember Peirce requested the City Council consider an ordinance on panhandling. Statutes and ordinances prohibiting begging, panhandling, or similar activities have been held by some courts not to violate the right to free speech under state and federal constitutions on the grounds that begging does not necessarily involve communication of information and so does not constitute protected speech. Mr. Schultz stated based on his legal analysis, statutes prohibiting loitering or accosting for the purpose of begging are not unconstitutionally vague where the language of the statute is sufficient to put a reasonable person on notice as to what conduct is forbidden. Furthermore, ari ordinance ® providing that a person commits an offense if he conducts solicitation by coercion does 4 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 11, 2004 not violate the Eighth Amendment to the United States Constitution because it punishes conduct, not mere status, and to accept the argument that solicitation is a necessary correlative of homelessness would be to create a class of persons who are constitutionally immune from much of the criminal law. While it appears from the case law that anti - solicitation ordinances can probably be upheld if challenged, it is important to note that a few cities in California. have repealed ordinances when faced with a lawsuit challenging the ordinance. Mr. Schultz recommended the City Council approve the first reading and introduction of Ordinance No. 504 by number and title only. Mayor Yates opened the hearing for public comment. Ken Vesterfelt stated he supports this ordinance. Garry Johnson stated there is a particular person in town that can be aggressive in her request for handouts. Nancy Johnson stated it is aggravating when you are a tourist and asked for handouts. ® Mayor Yates closed the public comment hearing. Councilmember Winholtz stated she does not know that changing a law for one person is appropriate. Councilmember Peters stated this would prevent other panhandlers from coming to Morro Bay. Councilmember Peirce stated there has been a problem and it has been primarily one person who is quite aggressive. Mayor Yates stated he also supports the ordinance. MOTION: Councilmember Peirce moved the City Council approve the first reading and introduction of Ordinance No. 504 amending Section 5.40.020 of Chapter 5.40 of the Morro Bay Municipal Code by number and title only. The motion was seconded by Councilmember Peters and carried unanimously. (4-0) C. UNFINISHED BUSINESS — NONE. 11 5 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 11, 2004 D. NEW BUSINESS D-1 DISCUSSION ON GIVING LOCAL BUSINESSES PREFERENCE ON PUBLIC WORKS CONTRACTS; (CITY COUNCIL) City Attorney Robert Schultz stated the City currently has a five percent preference for local vendors, set forth in the Municipal Code Section 3.08.100(E)(2), provided fitness and quality are equal. As currently drafted, the City's provision is permissible. The Council recently asked my office whether we could extend the preference to contractors for public works projects. There are two classes of cities, general law cities and charter cities. As a general law city, the City of Morro Bay only has those powers expressly conferred upon it by the legislature, together with such powers as are necessarily incident to those expressly granted or essential to the declared object and purposes of the municipality. Charter cities derive their authority directly from Article XI of the California Constitution. This grants charter cities supreme authority in the area of municipal affairs. Generally, state law in the area of public works and procurement does not bind charter cities. Therefore, cases have held that general law provisions requiring cities to solicit public, competitive bids for public products do not apply to charter cities. ® The City of Morro Bay, as a general law city, must comply with the competitive bidding requirements as set forth in the Public Contracts Code. As such, it is the City Attorney's opinion that we would.not prevail if we adopted a preference for LBE's on public works projects because we are a general law city. Mr. Schultz stated because there is no case law specifically involving general law cities on this issue, coupled with the fact that a majority of California cities do not have LBE preferences for public works contracts, it is a good indication that we would not win on a court challenge. As such, it would probably not be wise, from a risk management stand point, to adopt an LBE preference at this time. No action was taken on this item. D-2 REPORT ON PURSUING LEGISLATION REGARDING APPLICATION OF TRANSIENT OCCUPANCY TAX TO STATE PARKS CAMPGROUNDS; (CITY COUNCIL) City Manager Robert Hendrix stated this report is in response to a City Council request for information about the feasibility and nature of extending collection of the Transient Occupancy Tax to State Campgrounds within the City of Morro Bay. At the September 27, 2004 City Council meeting, during Public Comment, resident Stan House requested the City Council charge Transient Occupancy Tax (TOT) in the State Parks. The City Council expressed interest in a discussion of the concept of changing the law to provide is this city the authority to levee a TOT at State facilities within the City limits. While the 6 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — OCTOBER It, 2004 revenue raised from such a program would go to pay for City services, the cost would be home by the visitors in the State run facilities. Should the TOT be applied to the state campgrounds within the City and give our present TOT rate of 10%, the City might expect to receive about $100 thousand annually in new revenue from this source. Mr. Hendrix recommended the City Council authorize staff to pursue this revenue concept, to continue to investigate arrangements for professional legislative representation when needed, and to report back with specific recommendations on alternatives to be pursued. MOTION: Councilmember Peirce moved the City Council authorize staff to pursue this revenue concept, to continue to investigate arrangements for professional legislative representation when needed, and to report back with specific recommendations on alternatives to be pursued. The motion was seconded by Councilmember Peters and carried unanimously. (4-0) D-3 REVIEW OF LOT SIZES ON REMAINING BUILDABLE LOTS IN MORRO BAY; (CITY COUNCIL) Associate Planner Mike Prater stated the City Council requested staff to develop a list of ® property that is less than 6,000 square feet in area and has the potential for development because they are vacant. Public Services staff has studied this topic and determined that there are approximately 6,435 lots zoned for residential use within the City limits and 3,117 lots are less than 6,000 square feet, 87 or 2.8 percent of these lots are vacant. Under the City's current policies and regulations there are three ways to create new lots less than 6,000 square feet. A project has the ability to create a lot of less than 6,000 square feet through either the Planned Development Overlay, creation of a Community Housing Project following the additional standards, and/or creating an Affordable Housing Project subject to Morro Bay's maximum rent and sales standards. 1 Councilmember Winholtz stated she would like to review a more in-depth report, and have this item return for further discussion. Councilmember Peters stated she would like this issue to return in order to determine areas where density is a problem. Councilmember Peirce stated he would like to know the guidelines for the criteria for second units on a residential lot. MOTION: Councilmember Winholtz moved the City Council direct staff to bring back options to clearly explain how to entice affordable housing in the community. The motion was seconded by Councilmember Peters. VA MINUTES - MORRO BAY CITY COUNCIL is REGULAR MEETING — OCTOBER 11, 2004 Councilmember Peirce stated Morro Bay has become a place where there are fewer families and more retirees. Councilmember Winholtz stated the City, as a trustee needs to take care of the town and make sure there is ample affordable housing. Councilmember Winholtz withdrew her motion; Councilmember Peters withdrew her second to the motion. Councilmember Winholtz requested this issue come back as a future agenda item. ADJOURNMENT The meeting adjourned at 8:13 p.m. Recorded by: Bridgett Bauer City Clerk 1 F City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life. The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING — SEPTEMBER 27, 2004 CLOSED SESSION — SEPTEMBER 27, 2004 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA CS-1 GOVERNMENT CODE SECTION 54956.8: REAL PROPERTY isTRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale exchange, or lease of real property. Property: 220 Atascadero Road Negotiating Parties: City and potential buyers Negotiations: Voluntary Purchase and Sale. Property: Embarcadero & Harbor Negotiating Parties: Hartzell & City of Morro Bay Negotiations: Purchase Terms and Conditions. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. Ell ® PUBLIC SESSION — SEPTEMBER 27, 2004 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCILMEMBERS ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period, the following rules shall be followed: • When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments are to be limited to three minutes. • All remarks shall be addressed to Council, as a whole, and not to any individual member thereof. ® • The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or staff. • Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering. • Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting. • Your participation in City Council meetings is welcome and your courtesy will be appreciated. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 772-6205. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. ® A -I APPROVAL OF MINUTES FOR THE REGULAR MEETING ON AUGUST 23.2004; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 INVESTMENT REPORT FOR AUGUST 2004; (FINANCE) RECOMMENDATION: Receive report for information. A-3 RESOLUTION NO. 65-04 AUTHORIZING THE SUBMITTAL OF A HOME FUNDING APPLICATION; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 65-04. A-4 APPROVAL OF FILLING FIRE CAPTAIN AND FIREFIGHTER OPEN POSITIONS; (FIRE) RECOMMENDATION: Authorize the Fire Department to hire a Fire Captain/Paramedic to fill a vacancy created by the retirement of a Captain Parker; and, authorize the Fire Department to hire a Firefighter/Paramedic to fill an existing vacancy. A-5 RESOLUTION NO. 66-04 ACKNOWLEDGING JOY ELLIOTT'S is RETIREMENT AFTER 29 YEARS OF SERVICE TO THE CITY OF MORRO BAY'S POLICE DEPARTMENT; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 66-04. B. PUBLIC HEARINGS, REPORTS & APPEARANCES B-1 RESOLUTION NO.67-04 APPROVING CITIZEN'S OPTION FOR PUBLIC SAFETY (COPS) GRANT PROGRAM; (POLICE) RECOMMENDATION: Adopt Resolution No. 67-04. C. UNFINISHED BUSINESS C-I REPORT FROM AD -HOC COMMITTEE ON DIRECTIONAL SIGNS; (CITY COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. C-2 REVIEW OF OPTIONS FOR INCREASING SEWER RATES SO REVENUES COVER ALL COSTS; (CITY COUNCIL) 0 RECOMMENDATION: Discuss and direct staff accordingly. ® C-3 DISCUSSION ON JOINT WORKSHOP WITH THE COMMUNITY PROMOTIONS COMMITTEE; (CITY COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. D. NEW BUSINESS D-1 APPROVAL OF SUPPORTING RESOLUTION AND LETTERS REGARDING ADA LAWSUITS; (CITY ATTORNEY) RECOMMENDATION: Adopt Resolution No. 68-04. D-2 DISCUSSION ON THE FUTURE OF THE MARKET STREET/EMBARCADERO PROPERTY; (CITY COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. D-3 DISCUSSION ON POLICY AND LEGAL REQUIREMENTS FOR PUBLIC NOTICING; (CITY COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. isD-4 REPORT ON ONE-WAY CIRCULATION AND LOADING ZONES ON EMBARCADERO BETWEEN BEACH AND PACIFIC STREETS; (CITY COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. E. ADJOURNMENT THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TIME SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THIS CLERK'S OFFICE AT 772-6200 FOR FURTHER INFORMATION. COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST AT CITY HALL, LIBRARY, AND MILLS STATIONERY. IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE ® MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. ® MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION — SEPTEMBER 27, 2004 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Yates called the meeting to order at 5:00 p.m PRESENT: William Yates Mayor Dave Elliott ,Councilmember William Peirce Councilmember Janice Peters Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix City Manager Robert Schultz City Attorney CLOSED SESSION MOTION: Councilmember Peirce moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Winholtz and unanimously carried. (5-0) Mayor Yates read the Closed Session Statement. ® CS-1 GOVERNMENT CODE SECTION 54956.8: REAL PROPERTY TRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale exchange, or lease of real property. • Property:220 Atascadero Road Negotiating Parties: City and potential buyers Negotiations: Voluntary Purchase and Sale. • Property: Embarcadero & Harbor Negotiating Parties: Hartzell & City of Morro Bay Negotiations: Purchase Terms and Conditions. The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:45 p.m. MOTION: Councilmember Peters moved the meeting be adjourned. The motion was seconded by Councilmember Peirce and unanimously carried. (5-0) The meeting adjourned at 5:45 p.m. 11 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 27, 2004 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Yates called the meeting to order at 6:00 p.m PRESENT: William Yates Mayor Dave Elliott Councilmember William Peirce Councilmember Janice Peters Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix City Manager Robert Schultz City Attorney Bridgett Bauer City Clerk Rick Algert Harbor Director Bruce Ambo Public Services Director John DeRohan Police Chief Clyde Ganes Building Official Mike Pond Fire Chief Jim Koser Finance Director Andrea Lueker Recreation & Parks Director ® ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR'S REPORTS & ANNOUNCEMENTS CLOSED SESSION REPORT - City Attorney Robert Schultz reported the City Council met in Closed Session, and no reportable action under the Brown Act was taken. 11 MOTION: Councilmember Peirce moved the City Council approve Item A-5 of the Consent Calendar. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) Mayor Yates presented Police Department Support Services Manager Joy Elliott with plaques for her 29 years of service as well as her retirement on September 29, 2004. PUBLIC COMMENT Ed Biaggini, Chairman of the Community Promotions Committee, shared the new Destination Guide with Council and the public. He also addressed Item C-3 (Discussion on Joint Workshop with the Community Promotions Committee) stating a joint workshop with the City Council and Community Promotions Committee is important especially with the review of the Tourism Assessment Study. 2 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 27, 2004 Kim Kimball, Executive Director of the Chamber of Commerce, stated a Business Expo hosted by the Chamber of Commerce would be held on Wednesday, October 131s at the Community Center. She also noted a Candidates Night will be held on October 5 h at the Veterans Memorial Building. Ms. Kimball stated she attended a seminar with keynote speaker Michael Gibbons regarding the ADA lawsuits. She said there is a lot of work to do to support our businesses in Mono Bay, and thanked the City for their support. Sam Blakeslee thanked Mono Bay for acting on the ADA lawsuits. He stated he is running for State Assembly, and pledged his best efforts to work with the City to help represent the needs of this community in Sacramento. Nancy Barta, President of the Merchants Association, shared two television commercials promoting the downtown business district. Betty Forsythe stated she attended the workshop regarding the Fire Department, and expressed her appreciation of the Fire Department and offered her volunteer services to the Department. Hershel Parker expressed his views of the Mayor and his role. ® Tim Walkman addressed Measure L — The Library Initiative, stating this Measure will increase sales taxes by''/, cent. He compared this initiative along with the City's need for a new fire station. Jenny Aanerud stated the Hungry Fishermen Restaurant has chosen to close its doors to protect themselves from any further violations of compliance to the ADA laws. Kit Knapp addressed the ADA lawsuits and said it is time to take action. She said a petition for noticing will be circulated and they will have a booth at the Harbor Festival on Saturday in front of the Harbor Hut. Stan House stated he supports the petition for ADA noticing. He also said the Fire Station Committee has determined the City needs two fire stations and four additional fire fighters. Mr. House suggested the City charge a bed tax to the State Parks Campgrounds to obtain revenues for the fire stations and personnel. Bill Woodson addressed Item C-2 (Review of Options for Increasing Sewer Rates so Revenues Cover All Costs) stating this is not equitable, and the City should decrease the water rate. He said the Public Works Advisory Board addressed the Embarcadero traffic situation and recommended placing a time limit for deliveries. Mr. Woodson requested Council not consider selling the Market Street property and consider making it an Open Market. 11 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 27, 2004 Nancy Ferraro, Morro Bay Women's Caucus, stated there should be a public hearing on the Market Street property. Bob Tefft stated two plans are needed for the Market Street property; an interim plan for the next three or four years that would require little renovation to the property, and in the long run this should remain public property where people can come together. He also said he supports one-way traffic on the Embarcadero. Michel Lichtenstein stated he took photographs of sidewalks that may need repair. He said the sidewalks should be repaired prior to the removal of trees. Roger Ewing stated Item C-2 should be a public hearing item. He also said many people are on fixed incomes and suggested raising the sewer fee $1.50 this year, and another $1.50 next year. He also addressed an unethical practice at the last Public Works Advisory Board meeting. Melody DeMeritt addressed Item D-2 (Discussion on the Future of the Market Street/Embarcadero Property) stating this item should be a public hearing. She also ® suggested an Open House be held at the Market Street property, and make minor improvements to the outside of the Brannigan's building. Meredith Bates addressed Item D-2 stating the RUDAT study should be considered when deciding what to do with the Market Street/Embarcadero property. John Barta reviewed the advantages of granny units or secondary units, and also. noted they will increase property values. Garry Johnson stated the infrastructure of what is keeping this City safe is fantastic. He said he is 100% behind the Fire Department and its services. Ken Vesterfelt stated his concern is with citizens' and property owner rights, and he is going to stand up and fight for what he believes in. He said the citizens should be aware of the needs of Morro Bay's Fire Department. Mr. Vesterfelt stated there is a benefit for Hotline through a bowl-a-thon. Juliana Epperly thanked Mayor Yates for his help with her sewage problems on Morro Bay Boulevard. Charlie Palmer stated it is the people that make Morro Bay special. 0 Mayor Yates closed the hearing for public comment. El ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 27, 2004 DECLARATION OF FUTURE AGENDA ITEMS Councilmember Peters requested to agendize the review of lot sizes of remaining build able lots in Morro Bay; Councilmember Winholtz and Mayor Yates concurred. Mayor Yates requested to agendize the discussion of collecting Transient Occupancy Tax from the State Park Campgrounds; Councilmember Peters and Councilmember Winholtz concurred A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES FOR THE REGULAR MEETING ON AUGUST 23, 2004; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. ® A-2 INVESTMENT REPORT FOR AUGUST 2004; (FINANCE) RECOMMENDATION: Receive report for information. A-3 RESOLUTION NO.65-04 AUTHORIZING THE SUBMITTAL OF A HOME FUNDING APPLICATION; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 65-04. A-4 APPROVAL OF FILLING FIRE CAPTAIN AND FIREFIGHTER OPEN POSITIONS; (FIRE) RECOMMENDATION: Authorize the Fire Department to hire a Fire Captain/Paramedic to fill a vacancy created by the retirement of a Captain Parker; and, authorize the Fire Department to hire a Firefighter/Paramedic to fill an existing vacancy. A-5 RESOLUTION NO. 66-04 ACKNOWLEDGING JOY ELLIOTT'S RETIREMENT AFTER 29 YEARS OF SERVICE TO THE CITY OF MORRO BAY'S POLICE DEPARTMENT; (ADMINISTRATION) ® RECOMMENDATION: Adopt Resolution No. 66-04. 5 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 27, 2004 Councilmember Elliott pulled Item A-1 from the Consent Calendar; Councilmember Winholtz pulled Item A-3. MOTION: Councilmember Peirce moved the City Council approve Items A-2 and A-4 of the Consent Calendar. The motion was seconded by Councilmember Peters and carried unanimously. (5-0) A -I APPROVAL OF MINUTES FOR THE REGULAR MEETING ON AUGUST 23, 2004; (ADMINISTRATION) Councilmember Elliott referred to page 7 of the August 23, 2004 minutes and requested his comment be clarified. MOTION: Councilmember Winholtz moved the City Council approve Item A-1 of the Consent Calendar as amended. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) A-3 RESOLUTION NO. 65-04 AUTHORIZING THE SUBMITTAL OF A HOME ® FUNDING APPLICATION; (PUBLIC SERVICES) Councilmember Winholtz expressed a concern with the word "affordable" which is a broad term. She also asked who would have access to this funding, and what are the criteria for funding. Public Services Director Bruce Ambo responded the criteria for awarding the funds would be based on the priority of the condition of housing, and income qualifications would be based on the financial need of the applicant. MOTION: Councilmember Winholtz moved the City Council approve Item A-3 of the Consent Calendar. The motion was seconded by Councilmember Elliott and carried unanimously. (5-0) Mayor Yates called for a break at 7:18 p.m.; the meeting resumed at 7:38 p.m. CJ Il ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 27, 2004 B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 RESOLUTION NO. 67-04 APPROVING CITIZEN'S OPTION FOR PUBLIC SAFETY (COPS) GRANT PROGRAM; (POLICE) Police Chief John DeRohan stated since 1996-1997, the Citizens Option for Public Safety (COPS) established by AB 1913 and codified as Government Code Section 30061, has been distributing State grant funds to local law enforcement agencies to supplement "front line law enforcement services." These funds are also known as Supplemental Law Enforcement Funding. Amendments to the original legislation removed an original `'sunset clause" and also increased the amount guaranteed to each agency at a minimum of $100,000 in order to insure the funds as a continuing revenue source and encourage the hiring of law enforcement personnel. Additionally, the legislation requires an annual report in September to the City Council on how funds are proposed for use by the Police Department and annual reporting to the County Oversight Committee on the proposed use and actual expenditures of COPS funds. Chief DeRohan recommended the City Council receive public testimony, and adopt Resolution No. 67-04 authorizing the proposed spending plan for the $100,000 that will be received from the COPS grant ® program that complies with the requirements of Government Code Sections 30061, 30062, 30063 and 30064. Mayor Yates opened the hearing for public comment; there_ being no comments, Mayor Yates closed the public comment hearing. MOTION: Councilmember Peirce moved the City Council adopt Resolution No. 67-04 authorizing the proposed spending plan for the $100,000 that will be received from the COPS grant program that complies with the requirements of Government Code Sections 30061, 30062, 30063 and 30064. The motion was seconded by Councilmember Elliott and carried unanimously. (5-0) C. UNFINISHED BUSINESS C-1 REPORT FROM AD -HOC COMMITTEE ON DIRECTIONAL SIGNS; (CITY COUNCIL) Public Services Director Bruce Ambo stated the first phase of the sign program is to remove obsolete signage that no longer applies, and replace some of that signage. He said staff would meet with the City departments to review the City's signage and augment the work the Sign Committee has done. Mr. Ambo stated staff would come back within a month or two to review the sign program with the City Council. 7 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 27, 2004 MOTION: Mayor Yates moved the City Council direct staff to bring this item back to the City Council at the November 8, 2004 with a report on a program to replace directional signs. The motion was seconded by Councilmember Peirce and carved unanimously. (5-0) C-2 REVIEW OF OPTIONS FOR INCREASING SEWER RATES SO REVENUES COVER ALL COSTS; (CITY COUNCIL) Public Services Director Bruce Ambo stated the City Council heard a report from Councilmember Winholtz outlining alternative ways to address the fact that collection and treatment costs now regularly exceed revenues from the current sewer rates. The City Council directed staff to prepare a range of alternatives for Council consideration. Mr. Ambo recommended the City Council receive the brief background information leading up to this request for a sewer rate increase; direct staff with regard to either pursuing the rate increase at this time or otherwise disposing of this matter; and, if it is determined that discussion on sewer rate increases should continue, direct staff to schedule a future public hearing and return with a resolution amending the sewer rates at a subsequent public hearing. ® Councilmember Peters stated the best way to handle this for the community would be to increase the fee by step increases over the years. Councilmember Winholtz agreed that the fee should be increased in steps over several years. Councilmember Elliott stated the increase should be applied to all users. He said ratepayers should pay for the amount of water they use, and he is not in favor of a flat increase. Mayor Yates stated he is in favor (in concept) of raising the fees, but not at the rate to pay back the fund. He said he would support adopting a resolution that would raise the base rate. Councilmember Peirce stated he would support a flat fee for residences, and a usage fee for commercial buildings. MOTION: Mayor Yates moved the City Council increase the sewer rate by $2.00 this year, and an additional $1.50 for the next year; and, direct staff to schedule this item as a public hearing. The motion was seconded by Councilmember Peters and failed with Councilmember Elliott._ ® Councilmember Peirce and Councilmember Winholtz voting no. (2-3) M ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 27, 2004 MOTION: Councilmember Peirce moved the City Council direct staff to return with a report increasing the sewer fee by $2.00 this year and an additional $1.50 for the two succeeding years. The motion was seconded by Mayor Yates. Councilmember Peirce stated his intention was to change the usage fee for single-family residences only. Councilmember Peters stated single-family residences should pay a usage fee for the amount of water they are using. Councilmember Winholtz stated she would like the graduated fee increase for residential usage, and review the adjustment of that fee each year. VOTE: The motion carved with Councilmember Elliott and Councilmember Winholtz voting no. (3-2) D-3 DISCUSSION ON JOINT WORKSHOP WITH THE COMMUNITY PROMOTIONS COMMITTEE; (CITY COUNCIL) Council consensus was to attempt to schedule a joint meeting with the Community Promotions Committee at the Committee's Regular Meeting on October 21, 2004 at 8:00 a.m. Mayor Yates called for a break at 8:55 p.m.; the meeting resumed at 9:12 p.m. D. NEW BUSINESS D-1 APPROVAL OF SUPPORTING RESOLUTION AND LETTERS REGARDING ADA LAWSUITS; (CITY ATTORNEY) City Attorney Robert Schultz stated the Americans with Disabilities Act (ADA) has often been described as the most sweeping nondiscrimination legislation since the Civil Rights Act of 1964. It provides broad nondiscrimination protection in employment, public services, public accommodation and services operated by private entities, transportation, and telecommunications for individuals with disabilities. As stated in the Act, its purpose is "to provide a clear and comprehensive national mandate for the elimination of discrimination against individuals with disabilities." The ADA is a civil rights statute; it does not provide grant funds to help entities comply with its requirements. It does include a section on technical assistance that authorizes grants and awards for the purpose ® of technical assistance such as the dissemination of information about rights under the E ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 27, 2004 ADA and techniques for effective compliance. Mr. Schultz recommended the City Council adopt Resolution No. 68-04 supporting legislation that would amend the ADA to require notice prior to filing a lawsuit. MOTION: Councilmember Peirce moved the City Council adopt Resolution No. 68-04 supporting legislation that would amend the Americans with Disabilities Act to require noticing prior to filing a lawsuit; and, direct staff to widely disseminate the resolution. The motion was seconded by Councilmember Peters and carried unanimously. (5-0) D-2 DISCUSSION ON THE FUTURE OF THE MARKET STREET/EMBARCADERO PROPERTY; (CITY COUNCIL) City Manager Robert Hendrix stated this item is to discuss the future of the Market Street/Embarcadero property owned by the City as requested by Councilmember Peirce. Councilmember Peirce stated he likes the parking lot on the Embarcadero. He said his concern is with the upper level on Market Street. Councilmember Peirce stated he would ® like to investigate the RUDAT Study, and its ideas for this property. Mayor Yates suggested meeting with the Community Promotions Committee prior to taking action on this issue. Councilmember Peters stated she would like to reschedule this issue as a public hearing, and look at other options with facts and figures. Councilmember Winholtz stated she needs more information and public comment on this issue. Councilmember Elliott stated the City Council and the community should get together and see what they want for this property. MOTION: Councilmember Peters moved the City Council direct staff to investigate the various scenarios discussed by Council, including but not limited to cost estimates for building rehabilitation or demolition, options for developing commercial space on the Embarcadero frontage, costs for developing along RUDAT concepts including parking structure and open air market; transportation up and down the bluff slope, and estimated value of the Market Street parking lot; and, agendize this item as a public hearing by Summer 2005. The motion was seconded by Councilmember ® Peirce and carried unanimously. (5-0) 10 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 27, 2004 MOTION: Councilmember Peters moved the City Council direct staff to investigate costs to renovate and place into use the restaurant building at Market Street. Staff is to describe other alternatives and constraints for placing the building into productive use; and, return to Council within one month. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) D-3 DISCUSSION ON POLICY AND LEGAL REQUIREMENTS FOR PUBLIC NOTICING; (CITY COUNCIL) Councilmember Peters stated not all residents receive notices in the water bills, and Council needs to discuss how to publicly notice all residents on certain issues. Councilmember Peirce stated a bulk mailing from Morro Bay can run in the amount of $800 plus printing costs which can run $500-$600. Councilmember Winholtz stated the notices to water bill customers could be pulled from the bulk mailing. She said there are approximately 2,500 residents who subscribe to The Tribune and 1,500 residents who subscribe to the Sun -Bulletin, and the Bay News is not distributed to condominiums and apartments; which means that half of the residents are not seeing notices published in the local newspapers. Councilmember Elliott stated a budget item should be established for noticing purposes. MOTION: Councilmember Elliott moved the City Council direct the City Manager to establish a budget account in the next City budget for city-wide mailings on issues that the Council deems appropriate for such mailings; and, Council will give direction on issues that should be noticed in this way. The motion was seconded by Councilmember Peters and carried unanimously. (5-0) Councilmember Winholtz offered $3,000 from her contingency fund for mailings for the next six months to residents other than those who receive water bills. CJ ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 27, 2004 D4 REPORT ON ONE-WAY CIRCULATION AND LOADING ZONES ON EMBARCADERO BETWEEN BEACH AND PACIFIC STREETS; (CITY COUNCIL) Councilmember Peirce stated on occasions, traffic is a problem on the Embarcadero. He said he would like the traffic to go one-way from Beach Street to Pacific Street, and perhaps diagonal parking. Councilmember Peirce stated he would like someone experienced with traffic to look at this scenario. MOTION: Councilmember Elliott moved the City Council direct staff to report back with information related to establishing the one-way circulation and timed loading zones between Beach and Pacific Streets, and also other areas on the Embarcadero as deemed necessary; and, staff will also report on former studies completed, and on the Public Works Advisory Board discussion and recommendations on this subject. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) ADJOURNMENT ® The meeting adjourned at 10:29 p.m. Recorded by: Bridgett Bauer City Clerk 12 ® City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life. The'City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING — SEPTEMBER 13, 2004 CLOSED SESSION — SEPTEMBER 13, 2004 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA ® CS-1 GOVERNMENT CODE SECTION 54956.8; REAL PROPERTY TRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property as to one (1) parcel: Pro : Water Outfall Line Easement. Negotiating Parties: Duke Energy and the City of Morro Bay. Negotiations: Renegotiation and extension of terms and conditions of lease agreement. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. 11 PUBLIC SESSION — SEPTEMBER 13, 2004 VETERANS MEMORIAL HALL - 6:00 P.M. ® 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCILMEMBERS ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period, the following rules shall be followed: • When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments are to be limited to three minutes. • All remarks shall be addressed to Council, as a whole, and not to any individual member thereof. • The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or staff. • Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering. • Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting. • Your participation in City Council meetings is welcome and your courtesy will be appreciated. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 772-6205. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES FOR THE REGULAR MEETING ON AUGUST 10 23, 2004; (ADMINISTRATION RECOMMENDATION: Approve as submitted. 2 A-2 AWARD OF FIRE STATION NO.53 DESIGN CONTRACT; (FIRE) ® RECOMMENDATION: Approve entering into a contract, and authorize the City Manager to execute pertinent contract documents. A-3 RESOLUTION NO. 63-04 AUTHORIZING RECORDATION OF FINAL MAP FOR SIX -LOT SUBDIVISION AT HILL AND MIMOSA STREETS (TRACT 2584); (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 63-04. A4 CONSULTANT AGREEMENT FOR COMMUNITY DEVELOPMENT BLOCK GRANT HOME GRANT APPLICATION; (PUBLIC SERVICES) RECOMMENDATION: Award a three-year contract to California Engineering Company, contingent upon award of a 2004 Community Development Block Grant for a Community Facility Activity and a 2004 HOME Grant for Housing Rehabilitation. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 REQUEST FOR APPROVAL OF A CONCEPT PLAN FOR A CONDITIONAL USE PERMIT/COASTAL DEVELOPMENT PERMIT FOR THE CONSTRUCTION OF AN 18-UNIT DEVELOPMENT PROJECT LOCATED ® AT THE 1200 BLOCK OF MAIN STREET; (PUBLIC SERVICES) 11 RECOMMENDATION: Approve the Mitigated Negative Declaration in accordance with CEQA, along with a Conditional Use Permit and Coastal Development Permit. B-2 APPROVAL OF TENTATIVE TRACT MAP, CONDITIONAL USE PERMIT, VARIANCE AND COASTAL DEVELOPMENT PERMIT FOR 7-LOT COMMUNITY HOUSING PROJECT LOCATED AT 1931-1951 SUNSET AVENUE; (PUBLIC SERVICES) RECOMMENDATION: Consider the pertinent issues, the proposed subdivision and variances, and reaffirm the Planning Commission's decision to conditionally approve the project. C. UNFINISHED BUSINESS CA REVIEW ON STATUS OF CITY'S KIDS CLUB PROGRAM; (RECREATION & PARKS) RECOMMENDATION: Discuss and direct staff accordingly. 3 C-2 . RESOLUTION NO. 64-04 APPROVING AND AUTHORIZING THE EXECUTION OF AN AGREEMENT TO LEASE AND AGREEMENT ® REGARDING POWER PLANT MODERNIZATION BETWEEN THE CITY OF MORRO BAY AND DUKE ENERGY MORRO BAY LLC; (CITY ATTORNEY) RECOMMENDATION: D. NEW BUSINESS Adopt Resolution No. 64-04. D-I DISCUSSION OF CIRCULATION ON STATE PARK ROAD; (CITY COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. D-2 DISCUSSION OF JOINT WORKSHOP WITH THE COMMUNITY PROMOTIONS COMMITTEE; (CITY COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. D-3 REPORT FROM AD -HOC COMMITTEE ON DIRECTIONAL SIGNS; (CITY COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. ® D-4 REVIEW ON OPTIONS FOR INCREASING CITY SEWER RATES; (FINANCE/PUBLIC SERVICES) RECOMMENDATION: Discuss and direct staff accordingly. D-5 DISCUSSION OF CITY RESPONSE TO LOCAL BUSINESS CLOSINGS DUE TO ADA LAWSUITS; (CITY COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. E. ADJOURNMENT THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TIME SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK's OFFICE AT 7726200 FOR FURTHER INFORMATION. COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST AT CITY HALL, LIBRARY, AND MILLS STATIONERY. IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ® ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. rd ® MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION — SEPTEMBER 13, 2004 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Yates called the meeting to order at 5:00 p.m PRESENT: William Yates Mayor Dave Elliott Councilmember William Peirce Councilmember Janice Peters Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix City Manager Robert Schultz City Attorney CLOSED SESSION MOTION: Councilmember Peters moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Elliott and unanimously carried. (5-0) Mayor Yates read the Closed Session Statement. ® CS-1 GOVERNMENT CODE SECTION 54956.8; REAL PROPERTY TRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property as to one (1) parcel: Property: Water Outfall Line Easement. Negotiating Parties: Duke Energy and the City of Morro Bay. Negotiations: Renegotiation and extension of terms and conditions of lease agreement. The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:40 p.m. MOTION: Councilmember Peirce moved the meeting be adjourned. The motion was seconded by Councilmember Winholtz and unanimously carried. (5-0) The meeting adjourned at 5:40 p.m. u E 11 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 13, 2004 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Yates called the meeting to order at 6:00 p.m. PRESENT: William Yates Dave Elliott William Peirce Janice Peters Betty Winholtz STAFF: Robert Hendrix Robert Schultz Bridgett Bauer Rick Algert Bruce Ambo Bill Boucher John DeRohan Clyde Ganes Mike Pond Mike Prater Gary Kaiser Jim Koser Andrea Lueker ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE Mayor Councilmember Councilmember Councilmember Councilmember City Manager City Attorney City Clerk Harbor Director Public Services Director Capital Projects Manager Police Chief Building Official Fire Chief Associate Planner Senior Planner Finance Director Recreation & Parks Director MAYOR'S REPORTS & ANNOUNCEMENTS CLOSED SESSION REPORT - City Attorney Robert Schultz reported the City Council met in Closed Session, and no reportable action under the Brown Act was taken. PUBLIC COMMENT The following people expressed opposition to the frivolous ADA lawsuits that have been filed on local restaurant owners: Chuck Fitch, George Leage, Stan House, Bill Woodson, Keith Swanson, Kim Kimball, Melody DeMeritt, Father Ed Holterhoff, Warren Linville, Dannie Rodgers -Tope, Bill O'.Steeni, Garry Johnson, Kit Knapp, Bill Davies, Christa Swanson, Laurie Gelker, Ken Vesterfelt, Brent Johns, Louie Toledo, and Carla Borchard. Christie Hale addressed Item C-1 (Review on Status of City's Kids Club Program) and suggested that Kids Club priority go to those who previously attended. She also noted the enrollment process should take place at the end of the school year, and there should be better notification of the program. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 13, 2004 Hershel Parker stated on August 31" he was at the beach and met the coastal trail hikers from Washington. He said there is a pattern of litigation in the City and mentioned the Harbor View Project, the Cloister's Subdivision assessment fees, and the snowy plovers. Betty Forsythe stated the City owns the library building that is leased to the County, with the Friends of the Library serving in an advisory capacity under their lease with the City of Morro Bay. She said the Friends of the Library are preparing a vision for the library to submit to the Vision 2020 Advisory Group. Dana Putnam addressed the article in The Tribune regarding the Kids Club Program. He said there are 9 or 10 spaces for daycare in Morro Bay. He said the City needs a child- care program that is responsive to parents, continuity in daycare, and appropriate notification to parents. Laura Lopez announced free workshops on Sustainable Gardening would be held in Los Osos and Morro Bay in September and October. Noah Smukler expressed support for Measure Q on genetically engineered foods. He said ® farmers from the mid -west would come to talk about their experience with genetically engineered food in a couple of weeks. 11 George Leage thanked those who assisted in the accident that involved his sister. Hilary Sano stated the Morro Bay United Methodist Children's Center has opened at the Morro Elementary School site, and they are trying to change their license from preschool to a daycare facility. Stan House stated he is outraged with the numerous ADA lawsuits filed against businesses in Morro Bay. He said the City is facing a financial crisis with the closure of the fisheries, the beaches and State Park Campground. Mr. House stated he supports the Duke Energy outfall lease. Roger Ewing addressed Item C-2 (Resolution No. 64-04 Approving and Authorizing the Execution of an Agreement to Lease and Agreement Regarding Power Plant Modernization Between the City of Morro Bay and Duke Energy Morro Bay LLC) stating the outfall lease does not address who will demolish the old plant. He suggested Council consider placing a deed restriction holding Duke Energy to the promise they made in the Memorandum of Understanding. 3 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 13.2004 Bill Woodson addressed Item C-2 stating it is imperative that the new plant will be removed after its useful life, and the land be used for other than power generation. He also addressed Item D-1 (Discussion of Circulation on State Park Road) stating State Park Road should be two-way down to the intersection of the campground and marina realigned with Class II bike lanes, and make it one-way from the marina to South Bay Boulevard. Phil Hill stated there is only one boatyard in Morro Bay. He said the fisheries in Morro Bay needs a boatyard and he requested Council support in maintaining this boatyard. Roy Vinio stated Morro Bay should be a destination to boaters, and requested Council support in maintaining Morro Bay's only boatyard. Priscilla Cole addressed consumer power by buying US products. She also said there should be a city-wide fundraiser to improve the City's Fire Department, and offered a check for $500 to go towards the rehabilitation of the Fire Department. Cindy Spence stated her two children are on the waiting list for Kids Club, and listed the activities her children participated in with Kids Club in the previous year. ® Melody DeMeritt addressed the State Park Road realignment. She said the lower park road should be two-way with a bike lane to the old State Park entrance. Ms. DeMeritt stated the Vision 2020 workshop should be noticed for all citizens to see. Randy Hickok of Duke Energy stated the City and Duke Energy have been negotiating for many years on the outfall lease. He said the agreement before Council this evening was negotiated in an atmosphere where the plant was profitable. Mr. Hickok stated there has been a dramatic turn -around in the energy market and the plant is far from profitable today, and they are continuing to evaluate whether the plant has a future beyond the end of this year. He said they are looking for a source that can keep the plant open. Father Ed Holterhoff stated his concern with the zoning process is that there has not been sufficient public participation. He requested the City Council refrain from approving any rezoning without public input. Father Holterhoff stated there is too much secrecy in government. Michel Lichtenstein referred to the trees that were removed on Shasta Street, and stated Ordinance No. 490 should be enforced. Garry Johnson referred to the project on Main and Beach Streets, and said the structure is too large and will create a traffic problem. He said the high school kids should clean up ® the mess they make outside of the high school. 1, MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 13, 2004 Robert Davis stated the Bike Committee opposes designation of any one-way traffic through State Park Road. He said there is room for a Class I bike path along the perimeter of the park. Mr. Davis stated there should be a separate pedestrian path, and a Class I bike path would allow for that. Ken Vesterfelt stated the City needs Duke Energy. Ed Dumong thanked AGP Video for bringing the Fish & Game meetings to Morro Bay. Mayor Yates closed the hearing for public comment. Mayor Yates called for a break at 7:25 p.m.; the meeting resumed at 7:45 p.m. DECLARATION OF FUTURE AGENDA ITEMS —None. A. CONSENT CALENDAR ® Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES FOR THE REGULAR MEETING ON AUGUST 23, 2004; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 AWARD OF FIRE STATION NO. 53 DESIGN CONTRACT; (FIRE) RECOMMENDATION: Approve entering into a contract, and authorize the City Manager to execute pertinent contract documents. A-3 RESOLUTION NO. 63-04 AUTHORIZING RECORDATION OF FINAL MAP FOR SIX -LOT SUBDIVISION AT HILL AND MIMOSA STREETS (TRACT 2584); (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 63-04. C 5 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 13, 2004 AA CONSULTANT AGREEMENT FOR COMMUNITY DEVELOPMENT BLOCK GRANT HOME GRANT APPLICATION; (PUBLIC SERVICES) RECOMMENDATION: Award a three-year contract to California Engineering Company, contingent upon award of a 2004 Community Development Block Grant for a Community Facility Activity and a 2004 HOME Grant for Housing Rehabilitation. MOTION: Councilmember Peirce moved the City Council approve the Consent Calendar with the exception of Item A-1. The motion was seconded by Councilmember Peters and carried unanimously. (5-0) B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-I REQUEST FOR APPROVAL OF A CONCEPT PLAN FOR A CONDITIONAL USE PERMIT/COASTAL DEVELOPMENT PERMIT FOR THE CONSTRUCTION OF AN 18-UNIT DEVELOPMENT PROJECT LOCATED ® AT THE 1200 BLOCK OF MAIN STREET; (PUBLIC SERVICES) Associate Planner Mike Prater stated on July 12, 2004, the City Council directed the applicant to revise the project and consider the number of residential units, the size of the units, and parking for the tenants and guest. Additional information was also requested that illustrated the front elevation of the project from Main Street and depict the heights of the building in relation to the existing single -story homes to the west. The applicant made the following revisions to the project: eliminated two secondary units reducing the project to 16 units (10 single family residential and 6 secondary units); reduction in size of the 6 secondary units; revised floor plans of the 950 sq. ft. units to move the office/den off the entry room; provided 3 additional guest parking spaces for a total of 6 spaces; and removal of decks from the rear of the units and landscaped the rear yards, except lot 57. The following offers clarification on what the applicant's responsibilities are for City improvements: full intersection improvements, including signalization, turn lane, and pedestrian linkages; frontage improvements, including sidewalk from the top of the proposed driveway down to Main Street and then to Surf Street as well as ADA ramps, Class I bike path from the proposed driveway intersection to the PG&E driveway; landscape the right-of-way; payment of traffic, water, sewer, affordable housing fees, and other miscellaneous fees; installation of two fire hydrants and upgrade the water lines for higher water pressure; and, connect all utilities to City system, including sewer and water lines, drainage, and electrical/cable. Mr. Prater stated the proposed project, only as conditioned, would be consistent with all applicable development standards of the Zoning Ordinance, and applicable provisions of the General Plan and Local Coastal Plan. ♦r1 LJ 0 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 13, 2004 The applicant is requesting City Council's final discretionary approval at which time they will return to the Planning Commission for precise plan approval based on the conditions set by the City Council. Mr. Prater recommended the City Council approve the Mitigated Negative Declaration in accordance with CEQA, along with a Conditional Use Permit and Coastal Development Permit. Jeff Edwards, representing the applicant, stated the applicant agrees with the findings except for Condition #16 that they request to delete. He said the project is consistent with the City's General Plan and requested Council approve the Conditional Use Permit and Coastal Development Permit. Mayor Yates opened the hearing for public comment. Nancy Johnson stated she uses the bike path, and suggested a continuous bike path be extended from Morro Avenue to Cloisters Subdivision. Ken Vesterfelt asked how private property turned into civic property. He expressed support for this project. ® Will Sole stated he has walked this area many times through the years, and expressed his support for this project. Mike Curass stated this is a good-looking project. He said there is already traffic at this location. Jeff Gregory stated he is the contractor for this project, and noted the applicant wants this to be a beautiful project. Robert Davis stated this is a good project for the City. He said the proposed bike path provides a safe way to cross Main Street. Jack Poe stated he supports a property owner's rights, and he supports this project based on that. Otto Scott stated he would rather look at a nice housing project rather than the brush, weeds and debris that sit there now. John Eurosloski stated the proposed bike path is ideal for people of all ages. John Nowell addressed the fire lane and visitor parking for this project. He said he ® supports affordable housing in Morro Bay. 7 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 13, 2004 Stan House stated he supports this project since they have revised the plans. He did note that more secondary units are needed in Morro Bay. Melody DeMeritt stated she does not support this project because of traffic congestion that may negatively affect the already congested intersection at Radcliff and Main Street. She also asked how people would access this property for all of the grading that will need to be done to reduce the height of the structure. Roger Ewing stated this project is over -built for this area. He said it is the rights of property owners that affect the surrounding community. Mr. Ewing stated this property use to be a high eco-tourism location. He said this proposed housing project would not provide low-income housing with little community benefit. Bill Woodson stated there needs to be continuity from the Cloisters bike path through the back of the power plant to the beach with a Class I bike path. He said he supports this project. George Contento stated the zoning of this property should not be changed until there is a project that everyone can live with, such as ten single-family residences on the ten lots. ® He said this project demonstrates a disturbing trend in the City where the Planned Development Overlay has deteriorated into a code -avoidance zone where the public and neighborhoods get hurt by concessions to developers. Mr. Contento noted the Planned Development Overlay should be removed from the code. Garry Johnson stated the Bike Committee is working on a bike path from Cayucos to Los Osos. Jeff Edwards, representing the applicant, stated this project is General Plan consistent. Mayor Yates closed the public comment hearing. Councilmember Peirce stated in the revised plans, the office is off of the front living room and that would make it more difficult to convert into a rental. He said he supports the project. Councilmember Peters stated Condition #16 allows bicyclists to walk up the hill if needed. She said this applicant is to be commended for listening to the suggestions made by the City Council and responding by making changes to the project that made it more appropriate for the site and the community. Mayor Yates agreed that with the revisions, the project more than fits in the box. He ® agrees to remove condition #16 regarding the sidewalk. H ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 13, 2004 Councilmember Winholtz stated she would like better access into the bike lane. She said she has concerns with the entrance to this project, and she would like to restrict second units to this project. Councilmember Elliott stated this project is too dense for a single entrance. He said he is opposed because it does not provide two entrances and not enough parking. MOTION: Mayor Yates moved the City Council approve the Mitigated Negative Declaration in accordance with CEQA, along with a Conditional Use Permit and Coastal Development Permit for the property located along the 1200 block of Main Street. The motion was seconded by Councilmember Peters and carried with Councilmember Elliott and Councilmember Winholtz voting no. (3-2) Mayor Yates called for a break at 9:09 p.m.; the meeting resumed at 9:24 p.m. B-2 APPROVAL OF TENTATIVE TRACT MAP, CONDITIONAL USE PERMIT, VARIANCE AND COASTAL DEVELOPMENT PERMIT FOR 7-LOT COMMUNITY HOUSING PROJECT LOCATED AT 1931-1951 SUNSET AVENUE; (PUBLIC SERVICES) Senior Planner Gary Kaiser stated on December 15, 2003, the Planning Commission approved the subject Tentative Tract Map, Conditional Use Permit, Variance and Coastal Development Permit for a seven -unit residential development on the subject site. The project involves a subdivision and several separate variance requests. The project is for a total of seven units, with three required affordable units clustered on the northerly portion of the property and four market -rate units clustered on the southerly portion of the property. The affordable units would satisfy off -site mitigation requirements for the Morro Cove Project. Mr. Kaiser stated the proposed project would provide needed housing and circulation improvements but it would also require several variances and result in extensive hillside grading. The Planning Commission balanced these issues and recommends the City Council approve the project. Mr. Kaiser recommended the City Council independently consider the pertinent issues, the proposed subdivision and variances in particular, and reaffirm the Planning Commission's decision to conditionally approve this project. Mayor Yates opened the hearing for public comment. Wayne Colmer, applicant, stated this project was approved by the Planning Commission ten months ago. He said they are extending Sunset Avenue to Highway 41 as a benefit to ® the City. He said this would be an attractive project. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 13, 2004 Roger Ewing stated the applicant was required to provide three affordable housing units. He said the proposed project has too many units that are built close together. Mr. Ewing requested Council deny this project as proposed and come back with less units. He also said parking and traffic are concerns with this project. Wayne Colmer, applicant, stated this is an R-2 zone which meets the criteria of the plan. Mayor Yates closed the public comment hearing. Councilmember Elliott stated this is basically a 7-unit apartment complex. He said he is opposed to the size of this lot and the density of the project. He said the required 3-unit affordable housing project is all that should have been proposed. Councilmember Winholtz stated she does not like the reduced setbacks, the visual impacts from Main Street and Highway One, and what appears as a 3-story building. She said she supports a 3-unit affordable housing project, but not 7-units. ® Mayor Yates stated he supports apartment complexes that allows for affordable housing. He said it has great impact on him that the Planning Commission approved this project unanimously, and he would support this project. E Councilmember Peters stated there is a state mandate that requires the City to provide affordable housing. She said the site has nothing at this time, and this project could improve the area. She said she supports this project. Councilmember Peirce stated affordable housing is important to this community. He said apartment buildings provide affordable housing for those who cannot afford to buy a house. He said he supports the project. MOTION: Mayor Yates moved the City Council adopt the Findings for Approval included as Exhibit "A", including those pertaining to the use of the Mitigated Negative Declaration previously prepared for the project pursuant to the California Environmental Quality Act; and, approve the requested Tentative Tract Map, Variance, Conditional Use Permit and Coastal Development Permit as approved by the Planning Commission and subject to the Conditions of Approval included as Exhibit .`B". The motion was seconded by Councilmember Peirce and carried with Councilmember Elliott and Councilmember Winholtz voting no. (3-2) 10 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 13, 2004 C. UNFINISHED BUSINESS C-1 REVIEW ON STATUS OF CITY'S KIDS CLUB PROGRAM; (RECREATION & PARKS) Recreation & Parks Director Andrea Lueker stated due to overcrowding during the 2003/2004 school year, the registration for the Kids Club before and after school program for school year 2004/2005 was limited. The program is licensed by the State of California for a maximum of 50 children. Currently, there are 60 children registered and according to the information parents have submitted with their registration materials, the program is full. However, staff is continuing to monitor the daily participation and to date has added 8 children from the waiting list to the program. Staff is fairly confident that additional children will be added from the waiting list as the participation continues to solidify. In an effort to help parents locate childcare alternatives, staff has provided the phone number for the Child Care Resource Connection operated through EOC of San Luis Obispo. Ms. Lueker stated she received a call from the school district that there is a classroom available at Del Mar School for before and after school care. ® Councihnember Peters suggested the Recreation & Parks Commission review the process of enrolling in Kids Club; Council concurred. Mayor Yates requested this item return to Council in January 2005. No further action was taken on this item. C-2 RESOLUTION NO. 64-04 APPROVING AND AUTHORIZING THE EXECUTION OF AN AGREEMENT TO LEASE AND AGREEMENT REGARDING POWER PLANT MODERNIZATION BETWEEN THE CITY OF MORRO BAY AND DUKE ENERGY MORRO BAY LLC; (CITY ATTORNEY) City Attorney Robert Schultz stated the Morro Bay Power Plant Project and its related facilities fall within California Energy Commission licensing jurisdiction. During its licensing proceedings, the CEC acts as the lead state agency under the California Environmental Quality Act. The CEC's certification process provides a thorough, timely review and analysis of all aspects of a proposed project. During this process, the CEC conducts a comprehensive examination of a project's potential economic, public health, and safety, reliability, engineering, and environmental ramifications. The CEC's process and associated documents are functionally equivalent to the traditional Environmental Impact Report process. It is designed to allow a project review to be completed within a ® limited period of time; a license issued by the CEC is in lieu of other state and local 11 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 13, 2004 permits. Mr. Schultz recommended the City Council adopt Resolution No. 64-04 authorizing the execution of the Agreement to Lease and Agreement regarding Power Plant Modernization and Outfall Lease between the City and Duke Energy. MOTION: Councilmember Elliott moved the City Council adopt Resolution No. 64-04 approving and authorizing the execution of an agreement to lease and agreement regarding power plant modernization between the City of Morro Bay and Duke Energy Morro Bay LLC. The motion was seconded by Councilmember Peters and carried with Councilmember Winholtz voting no. (4-1) D. NEW BUSINESS D-1 DISCUSSION OF CIRCULATION ON STATE PARK ROAD; (CITY COUNCIL) This item was continued to the September 27, 2004 City Council meeting. ® D-2 DISCUSSION OF JOINT WORKSHOP WITH THE COMMUNITY PROMOTIONS COMMITTEE; (CITY COUNCIL) This item was continued to the September 27, 2004 City Council meeting. D-3 REPORT FROM AD -HOC COMMITTEE ON DIRECTIONAL SIGNS; (CITY COUNCIL) This item was continued to the September 27, 2004 City Council meeting. D4 REVIEW ON OPTIONS FOR INCREASING CITY SEWER RATES; (FINANCE/PUBLIC SERVICES) This item was continued to the September 27, 2004 City Council meeting. D-5 DISCUSSION OF CITY RESPONSE TO LOCAL BUSINESS CLOSINGS DUE TO ADA LAWSUITS; (CITY COUNCIL) City Attorney Robert Schultz reviewed lawsuits filed based on ADA issues. Mayor Yates suggested sending a resolution to State legislators and a resolution to Federal ® legislators, copy League of California Cities, Visitors Conference Bureau, State Chamber of Commerce, etc. 12 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 13, 2004 City Manager Robert Hendrix recommended the City Council take a policy position in opposition to these frivolous lawsuits, and a policy position in support of correcting these problems. Councilmember Elliott stated it would be more effective if the public contacted our legislators in opposition to these lawsuits. He said the City should attack these lawsuits by contacting the League of California Cities. Councilmember Peirce recommended contacting the cities in the Channel Counties Division of the League of California Cities, and suggested they involve their communities in this process. Councilmember Peters stated this is election season and a good time to contact your legislators. She said what irritates her most is that these people aren't looking for compliance, they're looking for settlements. Councilmember Peters stated a waiver of building fees is also a consideration. ® Councilmember Winholtz stated she would like the City Attorney to work with the community in researching this issue. She said a consideration should be made regarding building fees for compliance. Councilmember Winholtz stated the City should consider putting a mailer in with the water bills to advise the community on how they can help. MOTION: Councilmember Peters moved the City Council go beyond 11:00 p.m. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) MOTION: Mayor Yates moved the City Council: a) direct the City Attorney to devote time and energy on the Americans with Disabilities Act (ADA) issue; b) direct the City Attorney to draft resolutions and letters to entities such as fellow cities, League of California Cities, Visitors Conference Bureaus, State Chamber of Commerce, County Business Associations, and any other entity that may have an interest in the ADA issue; c) direct the City Manager to come back with a resolution streamlining ADA permits and waiving fees for ADA compliance; d) support the City Attorney in forming a county -wide task force to address the ADA issue; e) send resolutions and letters go to State and Federal legislators and Board of Supervisors; and f) direct the City Manager to include in the next water bill the information for citizens to write legislators with a sample letter included to amend the ADA laws. The motion was seconded by Councilmember Peters and ® carried unanimously. (5-0) 13 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 13, 2004 ADJOURNMENT The meeting adjourned at Recorded by: / k- aL44z Bridgett Bauer City Clerk [1 0 14 ® City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life. The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING — AUGUST 23, 2004 CLOSED SESSION — AUGUST 23, 2004 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA GOVERNMENT CODE SECTION 54956.8: REAL PROPERTY ® TRANSACTIONS -- Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale exchange, or lease of real property. Property: 220 Atascadero Road Negotiating Parties: City and potential buyers Negotiations: Voluntary Purchase and Sale. GOVERNMENT CODE SECTION 54956.9(a) : PENDING LITIGATION - Conference with Legal Counsel Regarding Pending Litigation: LauJfer, Mahan, and Stevens vs. City of Morro Bay IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. El ® PUBLIC SESSION — AUGUST 23, 2004 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCILMEMBERS ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period, the following rules shall be followed: • When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments are to be limited to three minutes. • All remarks shall be addressed to Council, as a whole, and not to any ® individual member thereof. • The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or staff. • Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering. • Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting. • Your participation in City Council meetings is welcome and your courtesy will be appreciated. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 772-6205. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS Ll 2 A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES FOR THE REGULAR MEETING ON AUGUST 9, 2004; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 CASH & INVESTMENT REPORTS — JUNE AND JULY 2004; (FINANCE) RECOMMENDATION: Receive report for information. A-3 APPROVAL OF AGREEMENT BETWEEN THE CITY OF MORRO BAY AND CHAMBER OF COMMERCE; (CITY ATTORNEY) RECOMMENDATION: Approve the Agreement between the City and Chamber of Commerce. A4 APPROVAL OF VIDEO PRODUCTION SERVICES AND CHANNEL MANAGEMENT AGREEMENT WITH AGP VIDEO; (ADMINISTRATION) ® RECOMMENDATION: Approve the Agreement with AGP Video. A-5 PROCLAMATION DECLARING SEPTEMBER 2004 AS "LIBRARY CARD SIGN-UP MONTH"; (ADMINISTRATION) RECOMMENDATION: Adopt the Proclamation. B. PUBLIC HEARINGS, REPORTS & APPEARANCES B-I CONTINUED PUBLIC HEARING AND RECOMMENDATION ON FEES CHARGED BY THE CITY FOR PLANNING AND RELATED SERVICES; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 62-04 approving changes to the Morro Bay Master Fee Schedule. B-2 CONTINUED PUBLIC HEARING ON THE GENERAL PLAN/LOCAL COASTAL PLAN MAP; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 61-04 amending the General Plan/Coastal Land Use Plan Map for the City of Morro Bay. ® C. UNFINISHED BUSINESS —NONE. 3 D. NEW BUSINESS D-I APPROVAL OF AN OPERATING SERVICES AGREEMENT WITH US ENERGY OPERATING SERVICES FOR THE CONSTRUCTION. OPERATION AND MAINTENANCE OF A COGENERATION SYSTEM AT THE MORRO BAY/CAYUCOS WASTEWATER TREATMENT PLANT; (PUBLIC SERVICES) RECOMMENDATION: Approve the Operating Services Agreement with US Energy Operating Services for the construction, operation, and maintenance of a Cogeneration System at the Morro Bay/Cayucos Wastewater Treatment Plant. D-2 REVIEW OF STATUS AND CAPACITY OF CITY'S KIDS CLUB PROGRAM; (RECREATION & PARKS) RECOMMENDATION: Discuss and direct staff accordingly. D-3 CONSIDER SCHEDULING CITY COUNCIL/PLANNING COMMISSION JOINT MEETING; (CITY COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. ® D-4 COUNCIL REQUEST TO AGENDIZE THE DISCUSSION OF EXISTING POLICIES REGARDING REMOVAL OF CITY AND PRIVATE TREES; (CITY COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. E. ADJOURNMENT THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TIME SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 772-6200 FOR FURTHER INFORMATION. COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST AT CITY HALL, LIBRARY, AND MILLS STATIONERY. IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. ® MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION — AUGUST 23, 2004 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Yates called the meeting to order at 5:00 p.m PRESENT: William Yates Mayor Dave Elliott Councilmember William Peirce Councilmember Janice Peters Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix City Manager Robert Schultz City Attorney CLOSED SESSION MOTION: Councilmember Peters moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Peirce and unanimously carried. (5-0) Mayor Yates read the Closed Session Statement. ® GOVERNMENT CODE SECTION 54956.8: REAL PROPERTY TRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale exchange, or lease of real property. • Property:220 Atascadero Road Negotiating Parties: City and potential buyers Negotiations: Voluntary Purchase and Sale. GOVERNMENT CODE SECTION 54956.9(a): PENDING LITIGATION. Conference with Legal Counsel Regarding Pending Litigation: • Lauffer, Mahan, and Stevens vs. City of Morro Bay The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:50 p.m. MOTION: Councilmember Winholtz moved the meeting be adjourned. The motion was seconded by Councilmember Peters and unanimously carried. (5-0) The meeting adjourned at 5:50 p.m. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 23, 2004 VETERANS MEMORIAL HALL - 6:00 P.M. C Mayor Yates called the meeting to order at 6:00 p.m PRESENT: William Yates Mayor Dave Elliott Councilmember William Peirce Councilmember Janice Peters Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix Robert Schultz Bridgett Bauer Bruce Ambo Janeen Burlingame Greig Cummings John DeRohan Clyde Ganes Mike Pond Jim Koser Andrea Lueker City Manager City Attorney City Clerk Public Services Director Management Analyst Planning Manager Police Chief Building Official Fire Chief Finance Director Recreation & Parks Director ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR'S REPORTS & ANNOUNCEMENTS CLOSED SESSION REPORT - City Attorney Robert Schultz reported the City Council met in Closed Session, and no reportable action under the Brown Act was taken. PUBLIC COMMENT Ken Switras addressed the petition that will be filed by State Parks for the entrance to the State Park Campground. He urged the City Council to not approve a one-way road for this area. Dannie Tope shared the findings of the Sign Committee on directional signs in the City. Kim Kimball stated the Chamber of Commerce and Visitor Center are working with Cal Trans relating to directional signs to the Visitor Center. She also announced that Dr. Margaret O'Neill is retiring and leaving the area, and her many hours of volunteerism will be missed. 2 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 23, 2004 Candace Vittitow requested Council not approve a change in State Park Road, and stated a one-way road would not be visitor friendly. Hank Roth and Betty Forsythe thanked the Council for waiving the building fees for the library's expansion. They also stated there will be a rummage sale on August 301h to assist with the expansion costs. Hershel Parker addressed smoking in public places. Bob Tefft shared statistics of pet owners who travel with their pets. He also addressed off -leash dog parks and/or beaches in California that do not include Morro Bay. Stan House stated the City implemented the Local Coastal Plan, and must give a permit to State Parks for any change in the road. He submitted a petition from the owner of Bayside Cafe who collected signatures in opposition to changing State Park Road to a one-way street. The following people addressed Item D-2 (Review of Status and Capacity of City's Kids ® Club Program), and requested the City Council assist in locating day-care for children who attend Del Mar Elementary School: Dana Putnam, Graham Paske, Judy Williams, Christy Hale and Vicky Surbee. 11 Roger Ewing addressed Item D4 (Council Request to Agendize the Discussion of Existing Policies Regarding Removal of City and Private Trees) stating the tree policy needs to be solid so the same laws apply to all. He said there is no reason to remove the tree on the comer of Shasta Avenue. Mr. Ewing stated he would like the tree removal policy to be scheduled as a public hearing. Michel Lichtenstein addressed the removal of a tree for the repair of a sidewalk. He said there is no reason to remove this tree. Sarah McCandliss referred to Item D4 stating a tree ordinance is important for the City including a street tree -planting list. Melody DeMeritt stated directional signs are an excellent idea. She suggested a sign that directs people to the downtown business area. Ms. DeMeritt stated citizens should receive respect in order to feel comfortable in speaking in public. She said the tree policy should be heard as a public hearing. 3 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 23, 2004 Lynda Merrill stated Kids Club is extremely valuable to working parents and their children. She also addressed tree removal in the State Park and the interruption of monarch butterflies, and requested Council agendize tree removal in Morro Bay. Andy Hamp shared a tree removal story. Mayor Yates closed the hearing for public comment. DECLARATION OF FUTURE AGENDA ITEMS Councilmember Peirce requested that the proposed panhandling ordinance be agendized; Councilmember Peters and Mayor Yates concurred. Councilmember Peters requested the ad -hoc committee report on directional signs be agendized. Councilmember Elliott requested that signage in general should be agendized. ® Councilmember Elliott requested the circulation on State Park Road be agendized; Councilmember Peters and Mayor Yates concurred. Councilmember Elliott requested discussion on the electrical outlets usage in the downtown R/UDAT project; Council concurred. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES FOR THE REGULAR MEETING ON AUGUST 9, 2004; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 CASH & INVESTMENT REPORTS — JUNE AND DULY 2004; (FINANCE) RECOMMENDATION: Receive report for information. 11 4 El 11 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 23, 2004 A-3 APPROVAL OF AGREEMENT BETWEEN THE CITY OF MORRO BAY AND CHAMBER OF COMMERCE; (CITY ATTORNEY) RECOMMENDATION: Approve the Agreement between the City and Chamber of Commerce. A-4 APPROVAL OF VIDEO PRODUCTION SERVICES AND CHANNEL MANAGEMENT AGREEMENT WITH AGP VIDEO; (ADMINISTRATION) RECOMMENDATION: Approve the Agreement with AGP Video. A-5 PROCLAMATION DECLARING SEPTEMBER 2004 AS "LIBRARY CARD SIGN-UP MONTH'; (ADMINISTRATION) RECOMMENDATION: Adopt the Proclamation. Mayor Yates pulled Item A-1 from the Consent Calendar; Councilmember Winholtz pulled Items A-3 and A4. MOTION: Councilmember Elliott moved the City Council approve the Consent Calendar with the exception of Items A-1, A-3 A-4. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) A-1 APPROVAL OF MINUTES FOR THE REGULAR MEETING ON AUGUST 9, 2004; (ADMINISTRATION) Mayor Yates requested a correction on page 7; City Clerk Bridgett Bauer noted the error has.already been corrected. MOTION: Councilmember Peirce moved the City Council approve Item A-1 of the Consent Calendar. The motion was seconded by Councilmember Elliott and carried unanimously. (5-0) A-3 APPROVAL OF AGREEMENT BETWEEN THE CITY OF MORRO BAY AND CHAMBER OF COMMERCE; (CITY ATTORNEY) Councilmember Winholtz referred to page 2, item 6 of the staff report and noted the hours should be expanded to be open 7 days per week. 5 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 23, 2004 Councilmember Peters suggested the following language be added to the agreement: "Office hours shall be scheduled by the Chamber of Commerce to coincide with visitor traffic;" Council concurred. MOTION: Councilmember Winholtz moved the City Council approve Item A-3 of the Consent Calendar as amended. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) A-4 APPROVAL OF VIDEO PRODUCTION SERVICES AND CHANNEL MANAGEMENT AGREEMENT WITH AGP VIDEO; (ADMINISTRATION) Councilmember Winholtz suggested for next year's contract to allow the filming of campaign forums, which the City should sponsor. MOTION: Councilmember Winholtz moved the City Council approve Item A-4 of the Consent Calendar. The motion was seconded by Councilmember Peters and carried unanimously. (5-0) ® Mayor Yates called for a break at 7:15 p.m.; the meeting resumed at 7:33 p.m. B-1 CONTINUED PUBLIC HEARING AND RECOMMENDATION ON FEES CHARGED BY THE CITY FOR PLANNING AND RELATED SERVICES; (PUBLIC SERVICES) Public Services Director Bruce Ambo stated the Fee Study considered many of the activities that Public Services performs to facilitate new development and identified 82 fee categories. It is important to note that the fees for planning permits were substantially reduced by staff prior to the previous fee presentations to Council. The Fee Study also identified overcharges that need to be adjusted to the actual cost of providing the service. There is a wide range of alternatives for fee adjustments. Any or all of the 82 fee items can be adjusted to the full cost recommended by the consultant, phased -in over time, brought in to effect at a later time to allow for a grace period, or lowered to what the Council feels is appropriate. Mr. Ambo recommended the City Council consider increasing planning fees for projects requiring significant staff time; reduce water connection fees for 5/8" and 1-1/2" meter installations, and increase 2" water connection fees in accordance with the Fee Study; reduce fees where the Fee Study indicates overcharges; and, provide further direction on other fee increases or reductions deemed appropriate by Council, and adopt Resolution No, 62-04. Mayor Yates opened the hearing for public comment. 11 2 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 23, 2004 Cathy Novak stated she would like the City Council to consider using a tiered method for calculating the use permit and variance fees. Roger Ewing stated the City should either maintain the current water hook-up fees or consider raising it to benefit the City's infrastructure. Melody DeMeritt suggested the fees not be lowered due to the City's current budget. She said the City's fees should be compared with other cities that are the same size. John Barta urged the City Council to respect the value that the planning process brings to the community, and not increase fees. Stan House stated the City should raise the fees in a tiered fee structure so the larger property owners pay more than the smaller property owners. He also asked about the timeline for the increased fees, and will this affect the workload of the Public Services Department. Mayor Yates closed the public comment hearing. Councilmember Elliott stated the applicant's payment for services should be labeled as a tax and not a fee. Mayor Yates stated he does not trust the figures. Councilmember Peters stated staff did provide a summary of fees charged by cities in the County, which showed Morro Bay is charging lower fees. Councilmember Peirce stated he is comfortable with raising the fees to a certain extent. He said he would like a tiered fee schedule to separate large projects vs. single-family projects. Councilmember Winholtz stated she supports the tiered fee schedule. MOTION: Councilmember Peters moved the City Council approve the fees as presented with the understanding that staff will return with a tiered fee on non -conforming single-family residences. The motion was seconded by Councilmember Peirce. Councilmember Elliott stated he does not support the motion because of the tiered fee schedule which is preferential treatment based on the size of the property and the pocket ® book of the developer. 7 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 23, 2004 Councilmember Peters withdrew her motion; Councilmember Peirce withdrew his second. MOTION: Councilmember Peters moved the City Council approve Resolution No. 62-04 adopting changes to the Morro Bay Master Fee Schedule. The motion was seconded by Councilmember Peirce and carried with Councilmember Elliott and Mayor Yates voting no. (3-2) MOTION: Councilmember Peirce moved the City Council direct staff to return with a tiered fee schedule for additions to non -conforming single-family residences. The motion was seconded by Councilmember Peters and carried with Councilmember Elliott and Mayor Yates voting no. (3-2) Mayor Yates called for a break at 8:50 p.m.; the meeting resumed at 9:05 p.m. B-2 CONTINUED PUBLIC HEARING ON THE GENERAL PLAN/LOCAL COASTAL PLAN MAP; (PUBLIC SERVICES) ® Planning Manager Greig Cummings stated the City Council previously adopted the updated General Plan/Local Coastal Plan text on February 23, 2004. The updated General Plan/Local Coastal Plan Map conforms to the new land use descriptions established in the updated plan document. The updated map essentially conforms to the existing map in terms of the distribution and extent of land use designations. As directed by Council, staff has returned with the General Plan/Local Coastal Plan Map amendments to be consistent with the actual existing land uses and in conformance with the land use designations in the plan text. This latest draft map addresses the concerns expressed by the public, and the City Council and does so within the context of the original overall direction established for the program. Mr. Cummings recommended the City Council adopt the updated General Plan/Local Coastal Plan Map with direction to staff to forward the plan to the California Coastal Commission for certification upon the approval of the Zoning Ordinance update. Mayor Yates opened the hearing for public comment. Melody DeMeritt referred to the Tri-W property stating there is no ESH zone even with a creek running through it. She also referred to the Harbor View Tract, and asked about its zoning and when the intersection of Radcliffe and Main will be addressed. Mayor Yates closed the public comment hearing. ® Councilmember Elliott stated he supports approving the map update. E ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 23, 2004 Councilmember Winholtz stated Toro Creek should be an ESH zone. She said the property surrounding the marina should also be ESH zone. Councilmember Winholtz stated the property where City Hall and City facilities should be designated public facilities. MOTION: Mayor Yates moved the City Council adopt Resolution No. 61-04 amending the General Plan and Coastal Land Use Plan Map of the City of Morro Bay, with amendments to the gray designation area to coastal dependent industrial and Toro Creek to an environmental sensitive habitat area; and, direct staff to forward the update to the Coastal Commission for certification. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) C. UNFINISHED BUSINESS —None. D. NEW BUSINESS D-I APPROVAL OF AN OPERATING SERVICES AGREEMENT WITH US ® ENERGY OPERATING SERVICES FOR THE CONSTRUCTION, OPERATION AND MAINTENANCE OF A COGENERATION SYSTEM AT THE MORRO BAY/CAYUCOS WASTEWATER TREATMENT PLANT; (PUBLIC SERVICES) C Public Services Director Bruce Ambo stated representatives of US Energy Operating Services (USEOS) presented staff with a new cogeneration proposal for consideration. The new proposal still involves the cogeneration of electricity using methane gas, but utilizes a new and innovative cogeneration technology. The USEOS proposal involves the installation, operation, and maintenance of a Stirling Cogeneration System at no expense to the City and Cayucos Sanitary District. USEOS would like to install, operate and maintain the Stirling Cogeneration System as a model project for use as a demonstration project for other potential clients. The USEOS proposal would utilize a Stirling engine to power the cogeneration process. The Stirling cycle engine is a form of external combustion engine to power the cogeneration process. The Stirling cycle engine is a form of external combustion engine that can harness energy from any heat source and turn it to electrical power. Mr. Ambo recommended the City Council approve the operating services agreement with USEOS for the construction, operation, and maintenance of a cogeneration system at the City of Morro Bay/Cayucos Sanitary District Wastewater Treatment Plant for producing electricity using methane gas generated during the anaerobic digestion,process. E MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — AUGUST 23, 2004 MOTION: Councilmember Winholtz moved the City Council approve the Operating Services Agreement with US Energy Operating Services for the construction, operation, and maintenance of a Cogeneration System at the Morro Bay/Cayucos Wastewater Treatment Plant. The motion was seconded by Councilmember Peters and carried unanimously. (5-0) D-2 REVIEW OF STATUS AND CAPACITY OF CITY'S KIDS CLUB PROGRAM; (RECREATION & PARKS) Recreation & Parks Director Andrea Lueker stated the Morro Bay Recreation & Parks Department Kids Club program is licensed by the State of California for a maximum of 50 children for before and after -school care. Last school year 125 children were registered to participate which entitled them to participate in the program at any time during open hours for this drop -in program. Registered participants attend in a variety of ways including those who attend on a daily basis to some individuals that attend only one or two days per school year. During the last school year, on numerous occasions, more than 50 children were in attendance at the program, which puts the program's license in jeopardy. This year's registration for the 2004/2005 school year opened on August 2nd ® with the distribution of 50 registration packets. Included in the packet was a questionnaire that parents were asked to return that indicated their usage pattern. All returned packets were assessed and the Department released a second set of packets on August 16`h. In addition, those individuals that did not receive a packet but were in line, received a numbered usage questionnaire, which will be used for waiting list purposes. The difference between registration this year versus last year is that last year the registration packets were not limited until mid -school year, which resulted in more children participating than the license, can admit. Ms. Lucker recommended the City Council review the information received, and direct staff accordingly. 11 Councilmember Elliott stated he does not understand when this became a City responsibility. He said if the City is going to expand this program, the voters should be asked if they want to pay for it through taxes. Mayor Yates stated the City is already involved, and we need to serve the families in the City. Councilmember Peirce suggested the City contact the school district to see how they can assist with this dilemma. He suggested Council request staff to come back with a report on a nominal fee increase, and see if there are opportunities for a temporary permit to add more children to the program at this time. 10 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — AUGUST 23, 2004 Councilmember Winholtz stated she agrees that this is not the City's responsibility; however, with the current economy and both parents in a family having to work, the City should continue to offer this service. Councilmember Peters stated the City should support young families with childcare so they can remain in Morro Bay. She suggested Council direct staff to return with numbers and options in order to remedy this problem. MOTION: Mayor Yates moved the City Council direct staff to return to the next City Council meeting with a report on how the City can accommodate more children at Kids Club. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) D-3 CONSIDER SCHEDULING CITY COUNCIL/PLANNING COMMISSION JOINT MEETING; (CITY COUNCIL) Councilmember Winholtz requested Council schedule the next City Council/Planning Commission joint meeting. ® Council concurred to wait until January 2005 to hold the next joint meeting with the Planning Commission. D-4 COUNCIL REQUEST TO AGENDIZE THE DISCUSSION OF EXISTING POLICIES REGARDING REMOVAL OF CITY AND PRIVATE TREES; (CITY COUNCIL) Councilmember Winholtz stated since June 2002, the Public Works Advisory Board, Planning Commission and City Council has made progress on producing a clear, clean ordinance on City trees. The City has also produced a guideline for the number of permitted private trees that can be cut per year. Councilmember Winholtz stated about a month ago, a citizen brought to the attention of the City an unanticipated situation not covered by the current ordinance. Addressing this problem gives rise to the opportunity to address another consistent problem, the definition of "tree", which affects both public and private trees. Councilmember Winholtz recommended the Council discuss and direct staff to come back with options for a definition of tree, and decide if a discussion on private trees is timely. Councilmember Elliott stated City policy makes it clear as to when trees could be removed. 1 �J ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 23, 2004 Councilmember Peters stated the Planning Commission should consider the definition of a tree. Mayor Yates stated he does not support placing guidelines on private trees. Councilmember Winholtz stated guidelines are needed for the size of trees to be removed. Councilmember Peirce stated he would be interested in discussing the definition of a tree. Councilmember Elliott stated Council previously approved voluntary guidelines to remove 4 or more trees per year and voluntary replacement of a tree. Councilmember Winholtz requested this item be agendized for further discussion. No further action was taken on this item. ADJOURNMENT ® The meeting adjourned at 9:58 p.m. Recorded by: Bridgett Bauer City Clerk 12 ® City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life. The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING — AUGUST 9, 2004 CLOSED SESSION — AUGUST 9, 2004 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA CS-1 GOVERNMENT CODE SECTION 54956.8; REAL PROPERTY ® TRANSACTIONS. histructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property. • Tidelands Park Boundary Settlement Leases • Property:. Lease Site 35W-36W - 235 Main St. (previously the Cannery) Negotiating Parties: City and Mortony Negotiations; Lease terms IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. C ® PUBLIC SESSION — AUGUST 9, 2004 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCILMEMBERS ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period, the following rules shall be followed: • When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments are to be limited to three minutes. • All remarks shall be addressed to Council, as a whole, and not to any individual member thereof. ® • The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or staff. • Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering. • Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting. • Your participation in City Council meetings is welcome and your courtesy will be appreciated. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 772-6205. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are ® approved without discussion. 2 ® A -I APPROVAL OF MINUTES FOR THE REGULAR MEETINGS ON JULY 12, 2004 AND JULY 26, 2004, AND SPECIAL MEETING ON JULY 29, 2004; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 RESOLUTION 58-04 ADOPTING AMENDMENTS AND ADDITIONS TO THE CITY OF MORRO BAY PERSONNEL RULES AND REGULATIONS AND RESCINDING RULES AND REGULATIONS THEREWITH; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 58-04. A-3 RESOLUTION NO. 59-04 APPROVING ASSIGNMENT OF THE LEASE AGREEMENT FOR LEASE SITE 62/62W LOCATED AT 551 EMBARCADERO; (HARBOR) RECOMMENDATION: Adopt Resolution No. 59-04. A4 RESOLUTION NO. 57-04 ADOPTING COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM REHABILITATION STANDARDS; (PUBLIC SERVICES) is RECOMMENDATION: Adopt Resolution No. 57-04. A-5 AWARD OF CONTRACT FOR MORRO BAY PHOTOVOLTAIC PROJECT; (RECREATION & PARKS) C RECOMMENDATION: Award the Project contract to Renewable Energy Concepts in the amount of $48,825.82. A-6 RESOLUTION NO. 60-04 APPROVING BAYSHORE HOMEOWNERS ASSOCIATION'S REQUEST TO REMOVE GULL NESTS FROM THEIR ROOFS PURSUANT TO M 3MC 7.16.025; (CITY ATTORNEY) RECOMMENDATION: Adopt Resolution No. 60-04. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-I CONTINUED PUBLIC HEARING AND RECOMMENDATION ON FEES CHARGED BY THE CITY FOR PLANNING SERVICES; (PUBLIC SERVICES) RECOMMENDATION: Open public hearing for public testimony, and continue this item to the August 23, 2004 City Council meeting. R3 ® C. UNFINISHED BUSINESS — NONE. D. NEW BUSINESS D-1 CONSIDERATION OF PLANNING AND BUILDING FEE WAIVER FOR LIBRARY EXPANSION; (PUBLIC SERVICES) RECOMMENDATION: Discuss and direct staff accordingly. D-2 RECLASSIFICATION OF EXISTING HARBOR DEPARTMENT OFFICE ASSISTANT III TO OFFICE ASSISTANT IV; (HARBOR) RECOMMENDATION: Authorize a Change in Title for the current Harbor Department Office Assistant HI to Office Assistant IV. D-3 CONSIDERATION OF POLICE DISPATCHER VACANCY AND POSITION UPGRADES APPROVED WITHIN THE ADOPTED BUDGET; (POLICE) RECOMMENDATION: Authorize staff to fill the Dispatcher vacancy when created in September; adopt the Dispatch Supervisor position specification; authorize promotion of an incumbent in a Dispatcher position to the position of Dispatch Supervisor; and authorize promotion of an incumbent Police Officer to the position of Corporal as contemplated in the adopted City ® budget. D4 DESIGNATION OF VOTING DELEGATE FOR 2004 LEAGUE OF CALIFORNIA CITIES CONFERENCE; (ADMINISTRATION) RECOMMENDATION: Select a voting delegate to represent the City at the League of California Cities Conference. E. ADJOURNMENT THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TIME SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 772-6200 FOR FURTHER INFORMATION. COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST AT CITY HALL, LIBRARY, AND MILLS STATIONERY. IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT ® REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. m MINUTES - MORRO BAY CITY COUNCIL ® CLOSED SESSION —AUGUST 9, 2004 CITY HALL CONFERENCE ROOM - 5:00 P.M. Vice -Mayor Peirce called the meeting to order at 5:00 p.m. PRESENT: William Peirce Vice -Mayor Dave Elliott Councilmember Janice Peters Councilmember Betty Winholtz Councilmember STAFF: CLOSED SESSION William Yates Robert Hendrix Robert Schultz Mayor City Manager City Attorney MOTION: Councilmember Peters moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Winholtz and unanimously carried. (5-0) Vice -Mayor Peirce read the Closed Session Statement. ® CS-1 GOVERNMENT CODE SECTION 54956.8; REAL PROPERTY TRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property. • Tidelands Park Boundary Settlement Leases • Property: Lease Site 35 W-36W - 235 Main St. (previously the Cannery) Negotiating Parties: City and Martony Negotiations; Lease terms The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:40 p.m. MOTION: Councilmember Peters moved the meeting be adjourned. The motion was seconded by Councilmember Elliott and unanimously carried. (5-0) The meeting adjourned at 5:40 p.m. E MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — AUGUST 9, 2004 VETERANS MEMORIAL HALL - 6:00 P.M. L� Vice -Mayor Peirce called the meeting to order at 6:00 p.m PRESENT: William Peirce Vice -Mayor Dave Elliott Councilmember Janice Peters Councilmember Betty Winholtz Councilmember ABSENT: William Yates Mayor STAFF: Robert Hendrix City Manager Robert Schultz City Attorney Bridgett Bauer City Clerk Rick Algert Harbor Director Bruce Ambo Public Services Director John DeRohan Police Chief Mike Pond Fire Chief Jim Koser Finance Director Andrea Lueker Recreation & Parks Director ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR'S REPORTS & ANNOUNCEMENTS CLOSED SESSION REPORT - City Attorney Robert Schultz reported the City Council met in Closed Session, and no reportable action under the Brown Act was taken. PUBLIC COMMENT Hank Roth requested Council support on Item D-I (Consideration of Planning and Building Fee Waiver for Library Expansion). Biz Steinberg, Director of Economic Opportunity Commission, shared the EOC Community Action Plan stating this program serves Morro Bay homeless and families living under the poverty level. Hershel Parker addressed different scenarios of "scofflaws" in Morro Bay. He said there are plenty of loose dogs running free on the beach and on the streets. Mr. Parker said there are flower felons who raid the gardens of Morro Bay. He said there is a traffic concern on Atascadero Road when turning right into Ace Hardware, people tend to pass is on the left where there is a turning lane. Mr. Parker also stated the "no smoking' signs 2 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 9, 2004 were vandalized in the Azure Street restrooms and the trashcans on Azure Street were removed. He asked what will it take to get the City Council to pay attention to the beach - loving, plover -loving old voters that want to walk without the fear of other peoples' dogs. Christy Hale addressed the Kids Club Program run by the Parks & Recreation Department, and the shortage of spaces for children. She requested the City review the data of the number of families who require childcare in Morro Bay. Phil Hill stated he has petitions signed by boat owners and fishermen noting the Boatyard located at 261 Main Street is currently Morro Bay's only working boatyard serving the community since 1947. He said the nearest available boatyard is in Avila Beach which has a six month waiting list. Mr. Hill requested the City intervene on behalf of the fishing community to halt the actions of the new owners of the Boatyard and cause them to remove the blockade at the site. He said the bay is a safe refuge harbor and national estuary, which makes for a more attractive package for dredging funds. Bob Telit stated he found major policy changes in his review of the City's zoning ordinance, and suggested members of the public attend the Planning Commission meeting on August 16`' where the amended zoning ordinance will be reviewed. ® Roger Ewing expressed thanks to the City for the Public Services newsletter. He addressed the County initiative (Measure L) stating this initiative provides for a reasonable way to help the library system. Mr. Ewing requested the City's support for Measure L. Stan House requested Council support on Item D-1. He also requested trashcans be placed on City property at the Azure Street parking lot. Mr. House addressed the concern about affordable housing, and stated there is a proposed affordable housing unit planned for property at Beach and Main Street. Michel Lichtenstein expressed concern with the removal of two trees at the northeast comer of Morro Bay Boulevard and Shasta Avenue for sidewalk improvements. He asked how these trees can be saved. Don Doubledee stated eucalyptus trees are messy, and a group of people requested the City replace these trees with more urban -friendly trees. Melody DeMeritt stated the Harbor Director gave her a tour of the bay and some history behind it. She also addressed the California Energy Commission's approval of the Duke Energy Power Plant Project, and asked Council to hold Duke's feet to the fire so the City will have the benefit of a modernized plant and the demolition of the current plant ® simultaneously 3 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 9, 2004 Joe Cicoski, owner of the Boatyard, stated this is the only boatyard in Morro Bay, and if closed, local boaters and fishermen will have to go elsewhere to maintain their boats. He asked for the City's assistance to maintain this boatyard. Jim Wood requested Council support on Item D-1. He also noted the Boatyard is needed in Morro Bay. Mr. Wood stated a concept plan for an environmentally sound large - vessel boatyard was previously approved and needs to resurface. Rick Grantham requested support for the fee waiver for the library expansion. He said the Duke Energy power plant modernization process is welcome. Mr. Grantham requested support for fully staffed Police and Fire Departments. Mandy Davis stated a good neighbor considers the entire community in their decisions. She said the Boatyard is necessary and detrimental to our community and the environment, and urged the Council to consider to prevail upon the current owners of the Cannery and ask them to be reasonable in allowing the Boatyard to continue to function. ® Lynda Merrill stated a stairway is needed from the Rock parking lot to the beach. Paul Twedt stated Dial -A -Ride is doing a great job. Vice -Mayor Peirce closed the hearing for public comment. DECLARATION OF FUTURE AGENDA ITEMS Councilmember Peters requested to agendize the review of the current Kids Club Program; Councilmember Peirce and Councilmember Winholtz concurred. Councilmember Peters also requested to agendize the reconsideration of the Parking In - Lieu Fund. Councilmember Winholtz requested the consideration of scheduling the next City Council /Planning Commission joint meeting. Cl El u 11 A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES FOR THE REGULAR MEETINGS ON JULY 12, 2004 AND JULY 26, 2004, AND SPECIAL MEETING ON JULY 29, 2004; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 RESOLUTION 58-04 ADOPTING AMENDMENTS AND ADDITIONS TO THE CITY OF MORRO BAY PERSONNEL RULES AND REGULATIONS AND RESCINDING RULES AND REGULATIONS THEREWITH; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 58-04. A-3 RESOLUTION NO. 59-04 APPROVING ASSIGNMENT OF THE LEASE AGREEMENT FOR LEASE SITE 62/62W LOCATED AT 551 EMBARCADERO; (HARBOR) RECOMMENDATION: Adopt Resolution No. 59-04. A4 RESOLUTION NO. 57-04 ADOPTING COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM REHABILITATION STANDARDS; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 57-04. A-5 AWARD OF CONTRACT FOR MORRO BAY PHOTOVOLTAIC PROJECT; (RECREATION & PARKS) RECOMMENDATION: Award the Project contract to Renewable Energy Concepts in the amount of $48,825.82. A-6 RESOLUTION NO. 60-04. APPROVING BAYSHORE HOMEOWNERS ASSOCIATION'S REQUEST TO REMOVE GULL NESTS FROM THEIR ROOFS PURSUANT TO MBMC 7.16.025; (CITY ATTORNEY) RECOMMENDATION: Adopt Resolution No. 60-04. Councilmember Winholtz pulled Items A-2, A4, and A-6 from the Consent Calendar. 5 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 9, 2004 MOTION: Councilmember Winholtz moved the City Council approve the Consent Calendar with the exception of Items A-2, A-4, and A-6. The motion was seconded by Councilmember Elliott and carried unanimously. (4-0) A-2 RESOLUTION 58-04 ADOPTING AMENDMENTS AND ADDITIONS TO THE CITY OF MORRO BAY PERSONNEL RULES AND REGULATIONS AND RESCINDING RULES AND REGULATIONS THEREWITH; (ADMINISTRATION) Councilmember Winholtz referred to Page 14, Section 6.01 of the Personnel Rules and Regulations, Paragraph 3, which states "The end of the probation period shall coincide with the end of the payroll period after the employee's probationary six, twelve or eighteen month probation period." Ms. Winholtz requested to remove the word six; Council concurred. MOTION: Councilmember Winholtz moved the City Council approve Item A-2 of the Consent Calendar as amended. The motion was seconded by Councilmember Peters and carved unanimously. (4-0) ® A-4 RESOLUTION NO. 57-04 ADOPTING COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM REHABILITATION STANDARDS; (PUBLIC SERVICES) 11 Councilmember Winholtz pulled this item for public information. MOTION: Councilmember Winholtz moved the City Council approve Item A4 of the Consent Calendar. The motion was seconded by Councilmember Peters and carried unanimously. (4-0) A-6 RESOLUTION NO. 60-04 APPROVING BAYSHORE HOMEOWNERS ASSOCIATION'S REQUEST TO REMOVE GULL NESTS FROM THEIR ROOFS PURSUANT TO MBMC 7.16.025; (CITY ATTORNEY) Councilmember Winholtz asked if more specific language should be used relating to the removal of the nests only. MOTION: Councilmember Peters moved the City Council approve Item A-6 of the Consent Calendar. The motion was seconded by Councilmember Elliott and carried with Councilmember Winholtz voting no. (3-1) 0 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 9, 2004 B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-I CONTINUED PUBLIC HEARING AND RECOMMENDATION ON FEES CHARGED BY THE CITY FOR PLANNING SERVICES; (PUBLIC SERVICES) Vice -Mayor Peirce opened the hearing for public comment; there being no comment, Vice - Mayor Peirce closed the public comment hearing. MOTION: Councilmember Peters moved the City Council continue the public hearing and recommendation on fees charged by the City for planning and related services to the August 23, 2004 City Council meeting. The motion was seconded by Councilmember Elliott and carried unanimously. (4-0) Vice -Mayor Peirce called for a break at 7:05 p.m.; the meeting resumed at 7:15 p.m. C. UNFINISHED BUSINESS — None. ® D. NEW BUSINESS D-I CONSIDERATION OF PLANNING AND BUILDING FEE WAIVER FOR LIBRARY EXPANSION; (PUBLIC SERVICES) Public Services Director Bruce Ambo stated it is staffs understanding that the library property and building are owned by the City and leased to the Friends of the Library for $1.00 per year. Through fundraisers and donations, the Friends are sponsoring improvements that would add 1.000 square feet to the library building and install fire sprinklers throughout the building. With the possible exception of waived fees, the construction of proposed improvements would occur at no cost to the City. The County staffs the library but the City is partially responsible for facility maintenance and scheduling. Mr. Kaiser recommended the City Council consider the request of the Friends of the Library, and direct staff as to whether fees are required in order to accept, process and complete a Minor Use Permit, Coastal Development Permit and a Building Permit for this project. Consensus of the Council was in approval of waiving the fees MOTION: Councilmember Elliott moved the City Council waive the fees to process and complete a Minor Use Permit, Coastal Development Permit and a Building Permit for the library expansion project. The motion was ® seconded by Councilmember Peters and carried unanimously. (4-0) 7 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 9, 2004 D-2 RECLASSIFICATION OF EXISTING HARBOR DEPARTMENT OFFICE ASSISTANT III TO OFFICE ASSISTANT IV; (HARBOR) Harbor Director Rick Algert stated the Office Assistant (OA) III position in the Harbor Department is the only remaining OA III position in the City and current job duties are at least the same as OA IV positions in other departments. The Harbor Department OA III has been performing the duties of an OA IV for over two years. The Harbor Department requested this position be changed to an OA IV in the budget process to bring it into consistency with similar position/duties throughout the City, and was approved in the adopted FY 04-05 budget. The OA IV classification will result in an annual increase of $1,368 to the Harbor Fund personnel budget. Mr. Algert recommended the City Council authorize a change in title for the current Harbor Department OA 111 (1/2 time) to OA IV (1/2 time) effective July 1, 2004. Consensus of the Council was in support of this request. MOTION: Councilmember Peters moved the City Council authorize a change in title ® for the current Harbor Department OA III (1/2 time) to OA IV (1/2 time) effective July 1, 2004. The motion was seconded by Councilmember Elliott and carried unanimously. (4-0) D-3 CONSIDERATION OF POLICE DISPATCHER VACANCY AND POSITION UPGRADES APPROVED WITHIN THE ADOPTED BUDGET; (POLICE) City Manager Robert Hendrix stated Council recently approved filling the vacancy created by the retirement of Support Services Manager Joy Elliott in September. Dispatcher, Mary Sponhaltz, has been selected to fill the position when it becomes vacant. The decision to conduct an in-house recruitment resulted in the saving of several thousand dollars in recruiting, advertising, testing, and background costs. However, promotion of Dispatcher Sponhaltz will result in a dispatcher vacancy. The Police Department needs a minimum number of dispatchers to staff the communications center on a twenty-four hour, seven day a week basis. If this position is not refilled, permanent staff will have to be supplemented by other options in order to cover the twenty-four hour staffing requirement. Mr. Hendrix recommended the City Council: 1) authorize staff to fill the Dispatcher vacancy when created in September; 2) adopt the Dispatch Supervisor position specification; 3) authorize promotion of an incumbent in a Dispatcher position to the position of Dispatch Supervisor; and 4) authorize promotion of an incumbent Police Officer to the position of Corporal as contemplated in the adopted City budget. ® Consensus of the Council was in support of this request. 8 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 9, 2004 MOTION: Councilmember Elliott moved the City Council 1) authorize staff to fill the Dispatcher vacancy when created in September; 2) adopt the Dispatch Supervisor position specification; 3) authorize promotion of an incumbent in a Dispatcher position to the position of Dispatch Supervisor; and 4) authorize promotion of an incumbent Police Officer to the position of Corporal as contemplated in the adopted City budget. The motion was seconded by Councilmember Peters and carved unanimously. (4-0) D-4 DESIGNATION OF VOTING DELEGATE FOR 2004 LEAGUE OF CALIFORNIA CITIES CONFERENCE; (ADMINISTRATION) City Manager Robert Hendrix stated the Annual League of California Cities Conference is scheduled for September 17-19, 2004 at the Long Beach Convention Center. One important aspect of the annual conference is the annual business meeting where the membership takes action on conference resolutions. Mr. Hendrix recommended the City Council select a voting delegate to represent the City of Morro Bay at the conference business meeting. ® MOTION: Councilmember Peters moved the City Council appoint Councilmember Winholtz to represent the City of Morro Bay at the League of California Cities Annual Conference Business Meeting. The motion was seconded by Councilmember Peirce and carried unanimously. (4-0) ADJOURNMENT The meeting adjourned at 7:54 p.m. Recorded by: Bndgett Bauer City Clerk I] W ® NOTICE OF SPECIAL MEETING NOTICE IS HEREBY GIVEN that the Morro Bay City Council will be holding a Special Meeting on Thursday, July 29, 2004 at 6:00 p.m. to be held in the Community Center Conference Room, 1001 Kennedy Way, Morro Bay, California. The City Council will be interviewing candidates for two advisory board vacancies. DATED: July 26, 2004 ,..- ,r. r BridgettA;uer, l ® MINUTES - MORRO BAY CITY COUNCIL SPECIAL MEETING — JULY 29, 2004 COMMUNITY CENTER - 6:00 P.M. Mayor Yates called the meeting to order at 6:00 p.m PRESENT: William Yates Mayor Dave Elliott Councilmember William Peirce Councilmember Janice Peters Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix City Manager PUBLIC COMMENT — None. The City Council interviewed four candidates to fill one vacancy on the Recreation & Parks Commission, and one vacancy on the Community Promotions Committee. The applicants for Recreation & Parks Commission were Bonnie Clare and Johnny Munoz; and, the applicants for Community Promotions Committee were George Contento and Edward Krovitz. ® MOTION: Mayor Yates moved the City Council appoint Johnny Munoz to fill the vacancy on the Recreation & Parks Commission which term will expire on January 31, 2005; and, Council appoint Edward Krovitz to fill the vacancy on the Community Promotions Committee which term will expire on January 31, 2006. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) The meeting adjourned at 7:00 p.m. ® City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life. The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public REGULAR MEETING — JULY 26, 2004 CLOSED SESSION — JULY 26, 2004 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA CS-1 GOVERNMENT CODE SECTION 54956.8: REAL PROPERTY TRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale exchange, or lease of real ® property. • Property:220 Atascadero Road Negotiating Parties: City and potential buyers Negotiations: Voluntary Purchase and Sale. Property: Lease Site 35 W-36W - 235 Main St. (previously the Cannery) Negotiating Parties: City and Mortony Negotiations; Lease terms CS-2 GOVERNMENT CODE SECTION 54956.9(C); CONFERENCE WITH LEGAL COUNSEL DUE TO ANTICIPATED LITIGATION. Initiation of legal action exists based upon existing facts and the advice of legal counsel as to one (1) matter: • City of Morro Bay vs. FEMA IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. El ® PUBLIC SESSION — JULY 26, 2004 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCILMEMBERS ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period, the following rules shall be followed: • When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments are to be limited to three minutes. • All remarks shall be addressed to Council, as a whole, and not to any ® individual member thereof. • The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or staff. • Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering. • Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting. • Your participation in City Council meetings is welcome and your courtesy will be appreciated. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 772-6205. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are ® approved without discussion. 2 ® A-1 APPROVAL OF MINUTES FOR THE REGULAR MEETING ON JULY 12, 2004; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 APPROVAL OF AGREEMENT BETWEEN THE CITY OF MORRO BAY AND CHAMBER OF COMMERCE; (CITY ATTORNEY) RECOMMENDATION: Review and approve the Agreement between the City and the Chamber of Commerce. B. PUBLIC HEARINGS, REPORTS & APPEARANCES B-I REVIEW OF THE UPDATED GENERAL PLAN/LOCAL COASTAL PLAN MAP; (PUBLIC SERVICES) RECOMMENDATION: Open public hearing for review of the draft map of the General Plan/Local Coastal Plan update; and, consider adopting Resolution No. 57-04 taking final action to approve the map update. C. UNFINISHED BUSINESS C-1 REPORT ON TOURISM REQUEST FOR PROPOSALS, COUNCIL ® DISCUSSION, AND AWARD OF CONTRACT FOR TOURISM STUDY; (PUBLIC SERVICES) RECOMMENDATION: Consider report and authorize Staff to execute a contract with the consultant preferred by City Council. C-2 REPORT ON DEVELOPING A FIRE STATION IN NORTH MORRO BAY; (FIRE) RECOMMENDATION: Receive report and direct staff accordingly. C-3 COUNCILMEMBER REQUEST TO AGENDIZE AN UPDATE ON WATER RESOURCES; (COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. C4 DISCUSSION ON INCREASING SEWER RATES; (COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. C-5 DISCUSSION ON REDUCING WATER HOOK-UP FEES; (COUNCIL) ® RECOMMENDATION: Discuss and direct staff accordingly. 3 ® D. NEW BUSINESS D-I DISCUSSION OF EMBARCADERO TRAFFIC CONCERNS; (COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. D-2 DISCUSSION OF CALIFORNIA AIR RESOURCES BOARD FLEET RULE REGARDING TRANSIT VEHICLES AND CONSIDERATION OF TROLLEY REPAIRS; (ADMINISTRATION) RECOMMENDATION: Review the information regarding the new California Air Resources Board transit fleet rule, adopt the vehicle replacement schedule; and, direct staff regarding current damage repairs to the 1985 trolley. D-3 CONSIDERATION OF PROPOSED USES FOR THE PUBLIC, EDUCATION, AND GOVERNMENT (PEG) ACCESS GRANT; (ADMINISTRATION) RECOMMENDATION: Approve using the PEG access grant funds on purchasing the necessary terminal and interface equipment to finish, connect and activate the institutional network. ® D-4 DISCUSSION ON WHETHER TO GRANT STATE PARKS REQUEST TO ERADICATE CROWS ON MORRO STRAND BEACH; (CITY ATTORNEY) RECOMMENDATION: Discuss and direct staff accordingly. E. ADJOURNMENT THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TIME SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 772-6200 FOR FURTHER INFORMATION. COPIES OF'STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST AT CITY HALL, LIBRARY, AND MILLS STATIONERY. IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO ® PROVIDE ACCESSIBILITY TO THE MEETING. 2 MINUTES - MORRO BAY CITY COUNCIL SESSION —JULY 26, 2004 CITY HALL CONFERENCE ROOM - 5:00 P.M. Is CITY Mayor Yates called the meeting to order at 5:00 p.m. PRESENT: William Yates Mayor Dave Elliott Councilmember William Peirce Councilmember Janice Peters Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix City Manager Robert Schultz City Attorney CLOSED SESSION MOTION: Councilmember Peirce moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Peters and unanimously carried. (5-0) Mayor Yates read the Closed Session Statement. CS-1 GOVERNMENT CODE SECTION 54956.8: REAL PROPERTY ® TRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale exchange, or lease of real property. • Property: 220 Atascadero Road Negotiating Parties: City and potential buyers Negotiations: Voluntary Purchase and Sale. • Property: Lease Site 35W-36W - 235 Main St. (previously the Cannery) Negotiating Parties: City and Mortony Negotiations; Lease terms CS-2 GOVERNMENT CODE SECTION 54956.9(C): CONFERENCE WITH LEGAL COUNSEL DUE TO ANTICIPATED LITIGATION. Initiation of legal action exists based upon existing facts and the advice of legal counsel as to one (1) matter: • City of Morro Bay vs. FEMA The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:40 p.m. MOTION: Councilmember Peirce moved the meeting be adjourned. The motion was ® seconded by Councilmember Peters and unanimously carried. (5-0) The meeting adjourned at 5:40 p.m. MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — JULY 26, 2004 VETERANS MEMORIAL HALL - 6:00 P.M. El Cl Mayor Yates called the meeting to order at 6:00 p.m PRESENT: William Yates Mayor Dave Elliott Councilmember William Peirce Councilmember Janice Peters Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix Robert Schultz Bridgett Bauer Rick Algert Bruce Ambo Janeen Burlingame Greig Cummings Frank Cunningham John DeRohan Mike Pond Andrea Lueker ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE City Manager City Attorney City Clerk Harbor Director Public Services Director Management Analyst Planning Manager City Engineer Police Chief Fire Chief Recreation & Parks Director MAYOR'S REPORTS & ANNOUNCEMENTS CLOSED SESSION REPORT - City Attorney Robert Schultz reported the City Council met in Closed Session, and no reportable action under the Brown Act was taken. PUBLIC COMMENT Hershel Parker stated there have been fewer dogs on the beach due to enforcement. He also addressed the hazards of smoking cigarettes. William Albrecht requested Council support in removing the bird nests from Bayshore Village. Betty Forsythe, Friends of the Library, announced they are ready to expand the Morro Bay Library and requested a fee waiver on the building permits. She also said they will be repairing the mural outside the library. Phil Hill stated there has been a boat yard in Morro Bay since 1947. He said the boat yard is needed for the benefit of the commercial and recreational fishing industry. MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — JULY 26, 2004 Meredith Bates addressed Item C-1 (Report On Tourism Request For Proposals, Council Discussion, And Award Of Contract For Tourism Study) stating she is concerned with expending further funding on this study. She recommended Council send this issue to the Community Promotions Committee for further review. Lou Rodrigues stated there is also a problem with loose dogs at Black Mountain. He said people should be responsible for their animals. Ed Biaggini addressed Item C-I and stated moving forward on the Request for Proposals is a bit premature. He recommended the City Council send this review to the Community Promotions Committee. Mandy Davis stated a letter should be sent to State Parks regarding changes to their policies to include adjoining community input in their plans. Michel Lichtenstein addressed a sign regarding the removal of a tree in order to repair the City sidewalk. He said there is no reason to remove these trees. David Nelson addressed Item D-3 (Consideration of Proposed Uses for the Public, ® Education, and Government Access Grant) stating City funds should not be used for PEG access. He said he would like the rendering of the proposed modernized power plant that is shown in City Hall to be removed. Ken Vesterfelt thanked those who helped clean up the dunes across the bay after the 4 h of July festivities. Joan Solu stated many people have approached her regarding their desire for a swimming facility in Morro Bay. She shared figures for maintaining the Sinsheimer Pool. She said she would continue with her efforts to obtain a pool in Morro Bay for the next seven years. Lynda Merrill addressed Item A-2 (Approval of Agreement Between the City of Morro Bay and Chamber of Commerce) stating the Chamber of Commerce should set aside money for the 4a of July festivities instead of basing it on donations. She also expressed support for Items C-2 (Report on Developing a Fire Station in North Morro Bay), C-4 (Discussion on Increasing Sewer Rates), and D-3 (Consideration of Proposed Uses for the Public, Education, and Government Access Grant). Ms. Merrill also addressed Item D-4 (Discussion on Whether to Grant State Parks Request to Eradicate Crows on Morro Strand Beach) stating crows are unnaturally over -populated because of urban garbage that brings them close to the Snowy Plover nesting area ® Dannie Tope addressed directional signs and parking enforcement on the Embarcadero. R3 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — JULY 26, 2004 Lionel Johnson addressed Item D-4 stating this is a bad idea; State Parks is not making good choices for the environment. Jim Wood stated there are crows all over and to shoot a few to save the Snowy Plover is a bad idea. Sarah McCandliss agreed that granting State Parks request to eradicate crows on Morro Strand Beach is a bad idea. She also referred to the traffic on the Embarcadero, and recommended traffic be changed to one-way and become more pedestrian friendly. Steve Mathieu stated shooting crows is a bad idea. He said he is glad Item D-3 was pulled because it will give AGP Video time to look at other options. Mr. Mathieu addressed the streaming of videos and shared information from the City of Cerritos. Mayor Yates closed the hearing for public comment. DECLARATION OF FUTURE AGENDA ITEMS Councilmember Winholtz requested a review of the City's tree ordinance. She also ® referred to a letter received by Council from a visitor in the City who complained that he and his family were discriminated at a local restaurant, and stated the City should respond to the letter. Mayor Yates requested a review of tourist directional signs; Councilmember Peters concurred. Mayor Yates called for a break at 7:17 p.m.; the meeting resumed at 7:40 p.m. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES FOR THE REGULAR MEETING ON JULY 12, 2004; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 APPROVAL OF AGREEMENT BETWEEN THE CITY OF MORRO BAY AND CHAMBER OF COMMERCE; (CITY ATTORNEY) ® RECOMMENDATION: Review and approve the Agreement between the City and the Chamber of Commerce. 0 MINUTES - MORRO BAY CITY COUNCIL is REGULAR MEETING — JULY 26, 2004 The Consent Calendar items were continued to the August 9, 2004 City Council meeting. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 REVIEW OF THE UPDATED GENERAL PLAN/LOCAL COASTAL PLAN MAP; (PUBLIC SERVICES) Planning Manager Greig Cummings stated Council previously adopted the updated General Plan/Local Coastal Plan text on February 23, 2004. As directed by Council, staff has returned with the General Plan/Local Coastal Plan Map amendments to be consistent with the actual existing land uses and in conformance with the land use designations in the plan text. The latest draft map addresses the concerns expressed by the public and does so within the context of the Planning Commission's overall direction. Mr. Cummings recommended the City Council adopt Resolution No. 57-04 approving the updated General Plan/Local Coastal Plan Map, with direction to staff to forward the plan to the California Coastal Commission for certification upon the approval of the Zoning Ordinance Update. Mayor Yates opened the hearing for public comment ® David Nelson stated the environmentally sensitive habitat area should be maintained on the map. He also said the Colmer property is shown as a moderate -density site, which concerns him. Mr. Nelson also expressed concern with the zoning in North Morro Bay. Nelson Sullivan stated Measure H permitted 13 gross acres to be changed from agriculture to visitor -serving commercial. Mayor Yates closed the public comment hearing. Councilmember Elliott stated this is a general overview, and the zoning map review will allow for more extensive changes. Councilmember Peters stated this map should reflect the reality of where the City is going. Mayor Yates stated he has a sense to continue this item, and re -schedule. MOTION: Councilmember Peirce moved the City Council continue discussion on the Updated General Plan/Local Coastal Plan Map as a public hearing at the August 23, 2004 City Council meeting. The motion was seconded by Councilmember Winholtz and -carried unanimously. (5-0) _J MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — JULY 26, 2004 C. UNFINISHED BUSINESS C-1 REPORT ON TOURISM REQUEST FOR PROPOSALS, COUNCIL DISCUSSION, AND AWARD OF CONTRACT FOR TOURISM STUDY; (PUBLIC SERVICES) City Manager Robert Hendrix stated the City Council directed that Request for Proposals be published for physical development of a hotel -conference center complex on the City - owned Embarcadero site and for a "Tourism Development Plan and Implementation Program." The City Council authorized a consultant selection process involving participation of City Consultant Allan D. Kotin of Allan D. Kotin & Associates, two members of City staff and two members of the Community Promotions Committee. The selection group settled on two consultant firms having distinct characteristics and style. The selection group felt that the Council is in the best position to decide which consultant would best meet the City's overall needs. The deadline for receipt of proposals for the hotel/conference center has also past and no proposals were received. There is still benefit to the City in pursuing the tourism study. Key goals for the effort are to identify markets for expanding the tourism industry in off-peak times. Mr. Hendrix recommended the City Council consider the report and authorize staff to execute a ® contract with the consultant preferred by Council. Councilmember Peirce stated he sees no urgency or immediate benefit with going ahead with this proposed project. Councilmember Peters stated she supports sending this to the Community Promotions Committee for their review. Mayor Yates stated he supports sending this to the Community Promotions Committee. Councilmember Winholtz stated the information is important and needed. She said she is not adverse to the Community Promotions Committee reviewing the facts. Councilmember Elliott stated the City has already spent too much money on this venture. He said Council should make a decision on what this property is going to be used for. MOTION: Councilmember Peirce moved the City Council direct staff not to award a contract for tourism study; and, further directed staff to place a discussion of the future of the Market Street/Embarcadero property on the September 27, 2004 City Council agenda The motion was seconded by Councilmember Elliott and carried with Councilmember Peters and Councilmember Winholtz voting no. (3-2) MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — JULY 26, 2004 MOTION: Councilmember Peters moved the City Council refer review of the Tourism Study Proposals to the Community Promotions Committee, and request that the Committee reports back to the City Council in October 2004. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) C-2 REPORT ON DEVELOPING A FIRE STATION IN NORTH MORRO BAY; (FIRE) Fire Chief Mike Pond stated at the May 10, 2004 City Council meeting, Council received a report from the Ad -Hoc Emergency Services Committee about emergency response service levels. At that time staff was directed to bring back information on implementing a second fire station. In preparing this report, staff found that other elements in addition to those directly related to placing Station 54 back into daily service needed consideration. Staff learned it was necessary to address cost, tactical and timing issues for three main elements: 1) placing Station 54 back into service; 2) bringing Station 53 back into full service; and, 3) the required staffing increase to provide for operations in a two -station fire department. Chief Pond stated the Ad -Hoc Emergency Services Committee is preparing to conduct two community workshops in September, to educate ® the public on issues related to fire and emergency services and their costs. One of the goals of the workshops is to receive feedback regarding potential funding options for desired levels of service and facilities. Information from these workshops should prove helpfiil when considering financing options in the future. MOTION: Mayor Yates moved the City Council: a) reallocate $60,414 from CIP #82-06, and $45,000 from CIP #82-25 to a new CIP account for Fire Station 53 design and development; b) direct staff to negotiate a project design contract for a two -phased project, incorporating Attachment -B, Options A and D of the July 26, 2004 staff report for Council approval; and c) direct staff to continue to seek funding from FEMA, OES or other sources that might be identified. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) MOTION: Councilmember Peirce moved that it is the intent of the City Council to re- open and staff Fire Station 54, and direct staff to seek funding expeditiously. The motion was seconded by Mayor Yates and carried unanimously. (5-0) Mayor Yates called for a break at 9:07 p.m.; the meeting resumed at 9:25 p.m. E 7 MINUTES - MORRO BAY CITY COUNCIL is REGULAR MEETING — JULY 26, 2004 C-3 COUNCILMEMBER REQUEST TO AGENDIZE AN UPDATE ON WATER RESOURCES; (COUNCIL) Councilmember Winholtz reviewed information on the City's water resources for public knowledge. No action was taken on this item. C4 DISCUSSION ON INCREASING SEWER RATES; (COUNCIL) Councilmember Winholtz stated over the last five years the Wastewater Collections Fund has depended on transfers from the Capital Improvement Fund to break even with our operating costs. The amount of transfer has averaged $200,000 each fiscal year. Councilmember Winholtz recommended: 1) the City Council consider raising the fee a minimum of $3 per unit across the board beginning with the 2004/05 fiscal year; 2) create a variable rate increase based on some kind of criteria; and 3) do a graduated increase over a period of years. MOTION: Councilmember Winholtz moved the City Council direct staff to report ® back to Council at the September 13, 2004 Council meeting with options for increasing sewer rates so that fund revenues cover all operating costs. The motion was seconded by Councilmember Peters and carried unanimously. (5-0) C-5 DISCUSSION ON REDUCING WATER HOOK-UP FEES; (COUNCIL) Mayor Yates stated he would like to reduce water hook-up fees to match the cost study of $1,414.00, which would be $370 less than what the City is currently charging. MOTION: Mayor Yates moved the City Council direct staff to bring back an analysis on water hook-up fees, and to refund any higher fee amount charged since October 27, 2003. The motion was seconded by Councilmember Peters and carried unanimously. (5-0) D. NEW BUSINESS D-I DISCUSSION OF EMBARCADERO TRAFFIC CONCERNS; (COUNCIL) Councilmember Peirce stated he has wanted to fix the traffic problem on the Embarcadero for years. He recommended the Embarcadero become one-way going south from Beach Street to Pacific Street, make one side a loading zone, and make the other ® side diagonal parking. Councilmember Winholtz stated this issue was reviewed in the Circulation Element. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JULY 26, 2004 Mayor Yates stated the congestion problem on the Embarcadero is infrequent. Councilmember Peters stated the Embarcadero could be chaotic at times. She said diagonal parking could help alleviate some of this problem. Councilmember Peters suggested the Public Works Advisory Board review this issue. Councihnember Elliott stated parking could be a part of the problem. He said business people want their supplies delivered, and they don't want to give up parking spaces to place loading zones. MOTION: Councilmember Peirce moved the City Council direct staff to return to Council with a report on one-way circulation proposal on the Embarcadero from Beach Street to Pacific Street, with loading zones and diagonal parking or other alternatives deemed appropriate. The motion was seconded by Councilmember Peters and carried unanimously. (5-0) D-2 DISCUSSION OF CALIFORNIA AIR RESOURCES BOARD FLEET RULE REGARDING TRANSIT VEHICLES AND CONSIDERATION OF TROLLEY ® REPAIRS; (ADMINISTRATION) Management Analyst Janeen Burlingame stated the California Air Resources Board held workshops earlier this year on proposed rules to achieve reductions in particulate matter and oxides of nitrogen emissions from transit vehicles. The modifications to the fleet rule for transit agencies and subsequent reporting requirements will apply to all California transit agencies. The California Air Resources Board will adopt the new fleet rule in September 2004, and January 2005 will be used as the baseline year. Non- compliance with the emission reduction standards will result in significant monetary penalties. The new fleet rule is designed to reduce oxides of nitrogen and particulate matter emissions from all trucks and buses of.all fuel types owned and operated by a public transit agency. Ms. Burlingame recommended the City Council review the information regarding the new California Air Resources Board transit fleet rule, adopt the vehicle replacement schedule; and, direct staff regarding current damage repairs to the 1985 trolley. Councilmember Peirce stated he would like to deliver a letter to APCD acknowledging that this is unfounded. MOTION: Councilmember Peirce moved the City Council direct staff to draft a letter to the Air Pollution Control District Board commenting on proposed regulations, and requesting an extension in their implementation. The ® motion was seconded by Councilmember Peters and carried unanimously. (5-0) N MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — JULY 26, 2004 MOTION: Mayor Yates moved the City Council direct staff to go ahead and repair trolley #1. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) D-3 CONSIDERATION OF PROPOSED USES FOR THE PUBLIC, EDUCATION, AND GOVERNMENT (PEG) ACCESS GRANT; (ADMINISTRATION) This item was pulled from the agenda. D4 DISCUSSION ON WHETHER TO GRANT STATE PARKS REQUEST TO ERADICATE CROWS ON MORRO STRAND BEACH; (CITY ATTORNEY) City Attorney Robert Schultz on May 18, 2004, his office received correspondence from State Parks requesting the American Crow population located at Morro Strand State Beach be declared a public nuisance and that an exemption to allow for the eradication of crows be granted by the City Council pursuant to Morro Bay Municipal Code Section 7.16. On June 21, 2004, Mr. Schultz' office received correspondence from Bayshore Homeowners Association requesting that the gulls located within their complex be declared a public nuisance and that an exemption to allow for the removal of gull nests ® from their roofs be granted by the City Council pursuant to Morro Bay Municipal Code Section 7.16. Mr. Schultz recommended the City Council review this report, and either deny the requests of State Parks and Bayshore Homeowners Association, or grant their requests and direct staff to bring back a resolution pursuant to Morro Bay Municipal Code Section 7.16. u Mayor Yates stated he supports allowing Bayshore Bluffs Homeowners to remove the gull nests. Bill Albrecht, Bayshore Homeowners Association, stated they have installed several contraptions but the gulls seem to figure it out. Jack Morehead, Bayshore Homeowners Association, said the gulls are coming more frequently through the years. Councilmember Elliott stated this is a coastal town, which includes gulls. His concern is that the gulls will nest in another residential area. Councilmember Winholtz concurred with Councilmember Elliott stating the birds will go to other homes. She said this location along the waterfront is their natural area, and we are a bird sanctuary. 10 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — JULY 26, 2004 MOTION: Mayor Yates moved the City Council direct the City Attorney to bring back a resolution finding that the homeowners of Bayshore Bluffs are exempt from Morro Bay Municipal Code Section 7.16.025 for a period of two years with respect to gulls on the property. The motion was seconded by Councilmember Peirce and carried with Councilmember Winholtz voting no. (4-1) Councilmember Elliott stated the population of crows has grown due to the vineyards in the County. He said get rid of the crows and let the people with their dogs back on the beach. Mayor Yates stated if it's not the dogs killing the plovers, it's the crows. He said the State should allow dogs back on the beach. Councilmember Winholtz stated she does not see the crows as being a danger to health, safety and/or property. Councilmember Peters stated the fencing area has given the crows an open invitation to land on the fence and view the plovers. She said she is opposed to killing one species of ® bird for another. Councilmember Peirce stated he has a problem with this request. He said this noble attempt to save the Snowy Plover has been a classic failure. MOTION: Mayor Yates moved the City Council deny the request by State Parks to trap and eradicate the crows on the beach. The motion was seconded by Councilmember Peters and carried unanimously. (5-0) ADJOURNMENT The meeting adjourned at 11:02 p.m. Recorded by: Bridgett Bauer City Clerk ® City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life. The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING — JULY 12, 2004 CLOSED SESSION — JULY 12, 2004 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA ® CS-1 GOVERNMENT CODE SECTION 54956.8; REAL PROPERTY TRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property. • Tidelands Park Boundary Settlement Leases IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. 11 PUBLIC SESSION — JULY 12, 2004 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCILMEMBERS ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period, the following rules shall be followed: • When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments are to be limited to three minutes. • All remarks shall be addressed to Council, as a whole, and not to any ® individual member thereof. • The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or staff. • Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering. • Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting. • Your participation in City Council meetings is welcome and your courtesy will be appreciated. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 772-6205. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. 2 ® A-1 APPROVAL OF MINUTES FOR THE REGULAR MEETING ON JUNE 28, 2004; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 AWARD OF CONTRACT FOR MORRO BAY STATE PARK MARINA ENHANCEMENT PLAN ENVIRONMENTAL IMPACT REPORT /ENVIRONMENTAL IMPACT STATEMENT; (PUBLIC SERVICES) RECOMMENDATION: Authorize the Mayor to execute the consultant services contract with Padre Associates, Inc. in the amount of $323,462.00. A-3 ORDINANCE NO. 503 APPROVING A PROPOSED LOCAL COASTAL PROGRAM AMENDMENT AND REZONE OF AN APPROXIMATELY ONE - ACRE SITE LOCATED AT 401 ATASCADERO ROAD -SECOND READING/ ADOPTION; (PUBLIC SERVICES) RECOMMENDATION: Approve second reading and adoption of Ordinance No. 503. A4 AWARD OF CONTRACT FOR MORRO ROCK RESTROOM REPLACEMENT PROJECT; (PUBLIC SERVICES) ® RECOMMENDATION: Allocate $50,000 to this project from the Highway l/Highway 41/Main Street Intersection Project fund, and award the project contract to Thiessen Construction in the amount of $230,000.00. A-5 APPROVAL OF LETTER TO STATE DEPARTMENT OF PARKS AND RECREATION REGARDING STATE PARK CAMPGROUND RENOVATION; (COUNCIL) RECOMMENDATION: Approve the letter to State Department of Parks and Recreation Regarding the State Park Campground Renovation. B. PUBLIC HEARINGS, REPORTS & APPEARANCES B-1 REQUEST FOR APPROVAL OF A CONCEPT PLAN FOR A CONDITIONAL USE PERMIT/COASTAL DEVELOPMENT PERMIT FOR THE CONSTRUCTION OF AN 18-UNIT DEVELOPMENT PROJECT LOCATED AT THE 1200 BLOCK OF MAIN STREET; (PUBLIC SERVICES) RECOMMENDATION: Approve the Mitigated Negative Declaration in accordance with CEQA, along with a Conditional Use Permit/Coastal Development Permit. C ® B-2 RESOLUTION NO. 43-04 AUTHORIZING THE SALE OF CITY -OWNED PROPERTY LOCATED AT 220 ATASCADERO ROAD; (CITY ATTORNEY) RECOMMENDATION: Adopt Resolution No. 43-04 authorizing staff to seek bids to sell the real property located at 220 Atascadero Road. B-3 CONTINUED PUBLIC HEARING AND RECOMMENDATION ON FEES CHARGED BY THE CITY FOR PLANNING SERVICES; (PUBLIC SERVICES) RECOMMENDATION: Consider the presentation by Revenue Cost Specialists on Public Service fees, and the comparative analysis of fees within the County. C. UNFINISHED BUSINESS C-1 CONSIDERATION OF COMMUNITY GATEWAY ENTRY PUBLIC ART DONATION; (PUBLIC SERVICES) RECOMMENDATION: Consider the proposal and accept the donation of the completed sculpture from Dr. Botso Koresheti. C-2 REPORT ON DEVELOPING A TWO -STATION FIRE DEPARTMENT CONFIGURATION; (FIRE) ® RECOMMENDATION: Receive report and direct staff accordingly. D. NEW BUSINESS D-I PRESENTATION ON RIDE -ON TRANSPORTATION SERVICES RECOMMENDATION: Receive presentation. D-2 UPDATE ON THE TOURISM REQUEST FOR PROPOSAL; (COUNCIL) RECOMMENDATION: Receive update from staff at the Council meeting. D-3 DISCUSSION ON REDUCING WATER HOOK-UP FEES; (COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. D-4 COUNCILMEMBER REQUEST TO AGENDIZE AN UPDATE ON WATER RESOURCES; (COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. E 4 ® D-5 COUNCILMEMBER REQUEST TO AGENDIZE THE DISCUSSION ON INCREASING SEWER RATES; (COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. El E. ADJOURNMENT THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TIME SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 772-6200 FOR FURTHER INFORMATION. COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST AT CITY HALL, LIBRARY, AND MILLS STATIONERY. IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. 5 ® MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION — JULY 12, 2004 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Yates called the meeting to order at 5:00 p.m PRESENT: William Yates Mayor Dave Elliott Councilmember William Peirce Councilmember Janice Peters Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix City Manager Robert Schultz City Attorney CLOSED SESSION MOTION: Councilmember Peirce moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Peters and unanimously carried. (5-0) Mayor Yates read the Closed Session Statement, CS-1 GOVERNMENT CODE SECTION 54956.8; REAL PROPERTY TRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property. • Tidelands Park Boundary Settlement Leases The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:20 p.m. MOTION: Councilmember Peters moved the meeting be adjourned. The motion was seconded by Councilmember Winholtz and unanimously carried. (5-0) The meeting adjourned at 5:20 p.m. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JULY 12, 2004 VETERANS MEMORIAL HALL - 6:00 P.M. C Mayor Yates called the meeting to order at 6:00 p.m. PRESENT: William Yates Mayor Dave Elliott Councilmember William Peirce Councilmember Janice Peters Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix Robert Schultz Bridgett Bauer Rick Algert Bruce Ambo Bill Boucher Frank Cunningham John DeRohan Clyde Ganes Gary Kaiser David Phillips Mike Pond Mike Prater Jim Koser Andrea Lueker City Manager City Attorney City Clerk Harbor Director Public Services Director Capital Projects Manager City Engineer . Police Chief Building Official Senior Planner Maintenance Superintendent Fire Chief Associate Planner Finance Director Recreation & Parks Director ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR'S REPORTS & ANNOUNCEMENTS CLOSED SESSION REPORT - City Attorney Robert Schultz reported the City Council met in Closed Session, and no reportable action under the Brown Act was taken. PUBLIC COMMENT Mark Shaeffer, Executive Director of Ride -On Transportation, reviewed the various transportation services provided in the County. Hank Roth, President of Friends of the Library, stated the library's mural is being repaired, and a patio enclosure is being planned. 2 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JULY 12, 2004 Hershel Parker stated instead of enforcing the leash law on the beach so children and elderly can be safe, Council majority instead chose confrontation with the Department of Parks & Recreation. He said the people of Morro Bay would rather have safe beaches and stop being confrontational with the Department of Parks & Recreation and Coastal Commission who are our friends. Nick Franco, District Superintendent for the State Department of Parks & Recreation, addressed Item A-5 (Approval of Letter to State Department of Parks and Recreation Regarding State Park Campground Renovation), and requested Council consider adding language that the City would like the campground open as soon as possible and the City's intent is to not delay the project completion date. He also gave an update on the raptor nests that was apart of their permit process. Rodger Anderson stated comments on the 4 h of July festivities were all positive, and all appreciated the family -oriented event. He acknowledged the Fire Department for their professionalism in assisting a friend who had fallen. Noah Smukler stated there is a community revegetation project going in behind Spencers Market. He invited the public to come out and help plant trees along the pathway. ® Joan Solu congratulated the Chamber of Commerce for their efforts with the 4'" of July festivities. She also congratulated the City for securing funding for the Boardwalk Project. Melody DeMeritt addressed Item A-3 (Ordinance No. 503 Approving a Proposed Local Coastal Program Amendment and Rezone of an Approximately One -Acre Site Located at 401 Atascadero Road -Second Reading/Adoption) stating the City should have a vision for this location. She also addressed Item C-I (Consideration of Community Gateway Entry Public Art Donation) stating it is important to know what type of public art does the City want, and suggested it go before the 20/20 Vision Committee. Ms. DeMeritt addressed Item C-2 (Report on Developing a Two -Station Fire Department Configuration) expressing the importance of having two fire stations in Morro Bay. Nancy Barta, Downtown Merchants Association, announced the upcoming Summer Street Faire on Morro Bay Boulevard. Frank Devine stated he has not filed a lawsuit against the City relating to the Juniper Street drainage issue. He said posting the potential litigation item on the June 14's City Council agenda was another effort to suppress his freedom of speech and to discredit he and others involved in the effort to resolve, the safety, public nuisance and environmental problem caused by the City's uncompleted storm drain system at the north end of Juniper ® Street 3 MINUTES - MORRO BAY CITY COUNCIL 46 REGULAR MEETING — JULY 12, 2004 Stan House stated there were 654 runners at the Rock to Pier Run. He addressed the Boatyard Concept that was reviewed in 1997, stating this would be a great time to revisit this plan. Kim Kimball stated it takes hundreds of volunteers to make the 41h of July festivities happen. She said a fundraiser committee is planned to meet in August, and invited those who are interested to join in the efforts of next year's 4`h of July festivities. Laura Lopez stated she would be educating the public on greener gardening practices in Morro Bay and Los Osos through a grant received by the National Estuary Program. Nancy Bast stated over a year ago people expressed opposition to the State Parks Campground Renovation Project, and requested Council support in stopping the Department of Parks & Recreation from abusing the importance of this community. Jim Wood addressed Item A-2 (Award of Contract for Morro Bay State Park Marina Enhancement Plan Environmental Impact Report /Environmental Impact Statement) and referred to the spraying of ice plant in the dunes from Highway 41 into the State Park. ® He said the Department of Parks & Recreation were ordered to spray the vegetation that houses hundreds of thousands of shoulder ban snails; he asked where the critical habitat starts and stops. Steve Matheiu, AGP Video, apologized for the poor video and audio quality of the 4`h of July festivities. He also noted that Fish & Game Commission would be holding meetings in Morro Bay. Lynda Merrill addressed Item A4 (Award of Contract for Morro Rock Restroom Replacement Project) and requested Council support in awarding the contract for this project. She also referred to Item A-5 stating a letter is vital because the Department of Parks & Recreation is not listening to the community. Ms. Merrill addressed Item C-2 stating a second fire station is needed in North Morro Bay. Mayor Yates closed the hearing for public comment. Mayor Yates called for a break at 7:12 p.m.; the meeting resumed at 7:30 p.m. DECLARATION OF FUTURE AGENDA ITEMS — None. 4 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JULY 12, 2004 • A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A -I APPROVAL OF MINUTES FOR THE REGULAR MEETING ON JUNE 28, 2004; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 AWARD OF CONTRACT FOR MORRO BAY STATE PARK MARINA ENHANCEMENT PLAN ENVIRONMENTAL IMPACT REPORT /ENVIRONMENTAL IMPACT STATEMENT; (PUBLIC SERVICES) RECOMMENDATION: Authorize the Mayor to execute the consultant services contract with Padre Associates, Inc. in the amount of $323,462.00. A-3 ORDINANCE NO. 503 APPROVING A PROPOSED LOCAL COASTAL PROGRAM AMENDMENT AND REZONE OF AN APPROXIMATELY ONE - ACRE SITE LOCATED AT 401 ATASCADERO ROAD -SECOND READING/ ADOPTION; (PUBLIC SERVICES) RECOMMENDATION: Approve second reading and adoption of Ordinance No. 503. A-4 AWARD OF CONTRACT FOR MORRO ROCK RESTROOM REPLACEMENT PROJECT; (PUBLIC SERVICES) RECOMMENDATION: Allocate $50,000 to this project from the Highway I/Highway 41/Main Street Intersection Project fund, and award the project contract to Thiessen Construction in the amount of $230,000.00. A-5 APPROVAL OF LETTER TO STATE DEPARTMENT OF PARKS AND RECREATION REGARDING STATE PARK CAMPGROUND RENOVATION; (COUNCIL) RECOMMENDATION: Approve the letter to State Department of Parks and Recreation Regarding the State Park Campground Renovation. Councilmember Elliott pulled Item A-5 from the Consent Calendar. F1 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JULY 12, 2004 MOTION: Councilmember Winholtz moved the City Council approve the Consent Calendar with the exception of Item A-5. The motion was seconded by Councilmember Peters and carried unanimously. (5-0) A-5 APPROVAL OF LETTER TO STATE DEPARTMENT OF PARKS AND RECREATION REGARDING STATE PARK CAMPGROUND RENOVATION; (COUNCIL) Councilmember Elliott stated he is not in support of sending this letter. He said this is a State Park and not a Morro Bay campground. Councilmember Elliott stated the Department of Parks & Recreation is making considerable effort to do what is right and necessary. MOTION: Councilmember Elliott moved the City Council not approve sending the letter to the State Department of Parks and Recreation regarding the State Park Campground Renovation Project. The motion was seconded by Mayor Yates and carried with Councilmember Winholtz voting no. (4-1) B. PUBLIC HEARINGS. REPORTS & APPEARANCES ® B-I REQUEST FOR APPROVAL OF A CONCEPT PLAN FOR A CONDITIONAL USE PERMIT/COASTAL DEVELOPMENT PERMIT FOR THE CONSTRUCTION OF AN 18-UNIT DEVELOPMENT PROJECT LOCATED AT THE 1200 BLOCK OF MAIN STREET; (PUBLIC SERVICES) Associate Planner Mike Prater stated the proposed project site has ten existing vacant lots on sloping land less than 20% with approximately 50,315 square feet in area. The parcels lie west of Main Street between Surf Street and the Highway 1 southbound off ramp. The General Plan and Local Coastal Plan designated the project site Mixed -Use Area E. Mixed Use Area E encourages residential, office, and/or limited range of commercial uses related to offices. Prior to approving new development on this site, a concept plan for the entire area must be submitted which includes a common access/circulation system minimizing the number of driveways with direct access to Main Street. The Planning Commission made a finding that a 100% residential project is consistent with City regulations and would not be detrimental to the health, safety, morals, comfort and general welfare of the persons residing or working in the neighborhood or the City. The parcels are vacant with vegetation consisting of eucalyptus and non-native grass. Eucalyptus trees are also growing in front of the parcels within the right-of-way. A tree removal plan has been developed that discusses the projects impacts on this vegetation. The applicant has agreed to continue the Class I bike path along the project frontage, which connects to the newly built Class I bike path along the high school and through the ® Cloisters subdivision. Mr. Prater recommended the City Council approve the Mitigated 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JULY 12. 2004 Negative Declaration in accordance with CEQA, along with a Conditional Use Permit/Coastal Development Permit. Mayor Yates opened the hearing for public comment. Jeff Edwards, representative of applicants, stated staff has placed 54 conditions of approval on this project and the applicant has agreed to meet these conditions. He said due to the off - site improvements, the applicant requests the City waive the traffic impact fees. Mr. Edwards requested Council's approval of the concept plan in order to move forward with the precise plan. Joan Solu submitted a letter in opposition to this project from Harriet Linville based on an increased traffic problem at the Main/Radcliffe intersection. Frank Devine referred to the ten lots that are of substandard size, and recommended the lot lines be eliminated and the property be consolidated into one piece of property. He said the taller trees should be maintained for privacy and to maintain the butterfly habitat. Mr. ® Devine stated he would like to see this project fit better with the conforming laws. Carolyn Margon stated this project has the potential to be detrimental to the intersection at Main and Radcliffe Street. She asked how the City plans to mitigate the traffic and also where are the visitors going to park. 0 Melody DeMeritt asked if this project could include signalization that will help alleviate the traffic congestion at the intersection of Main and Radcliffe Street. She said the traffic turning left from Surf Street onto Main Street would also be impacted. Ms. DeMeritt also addressed the lack of access for emergency vehicles. Jerry Switzer stated he owns the adjacent property to this proposed project. He said the bike lane is narrow because you have to go around his property. Mr. Switzer expressed concern with what will happen to his property if this project is built. Lynda Merrill referred to the diagram of the project and asked if this is an accurate rendering of the project. Stan House stated it would be a better project with another entrance, and asked who would pay for the signalization. 7 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JULY 12, 2004 George Contento stated there appears to be a parking issue based on the granny unit clause, and also by calling a bedroom an office. He said because of the granny unit clause, two units are allowed on a substandard lot. Mr. Contento stated residential uses for R-2 standards provides for two covered spaces per unit, and tandem parking is being proposed. John Nowell stated his concerns are with the density of the project with no parking or fire lane, the granny units with balconies and privacy of the neighboring houses, and the need for a bike lane when there is already a bike path. Jessie Franklin stated the staff report did not show diagrams of the impact to the rear of this property. Mayor Yates closed the public comment hearing. Councilmember Elliott stated the City should have set standards. He said this site is ideal for a park, not for a high -density housing development. Councilmember Elliott stated granny units are meant to provide housing for family members and not to add an extra ® bedroom that requires more parking. He said traffic impact fees should be the owner's responsibility. Councilmember Elliott stated he is not in support of the concept plan for this project. Councilmember Winholtz stated this project provides no benefit for the City. She said she is having trouble accepting this project. Councilmember Peters stated there is a reason for providing granny units, and the intent is wrong for this project. She said the plan offers no guest parking, and there should be one space per unit for guests. Councilmember Peirce stated it is more realistic that these would be two bedroom units. He said a reasonable amount of guest parking should be included in the plan. Mayor Yates stated if it is legal, how do you not approve the concept plan. Councilmember Elliott stated there are too many units with insufficient parking for this property. E ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JULY 12, 2004 MOTION: Councilmember Peters moved the City Council continue the consideration of the Request for Approval of a Concept Plan for a Conditional Use Permit/Coastal Development Permit for the construction of an 18-unit development project located at the 1200 block of Main Street to the September 13, 2004 City Council meeting. The motion was seconded by Councilmember Peirce and carried with Councilmember Winholtz voting no. (4-1) B-2 RESOLUTION NO. 43-04 AUTHORIZING THE SALE OF CITY -OWNED PROPERTY LOCATED AT 220 ATASCADERO ROAD; (CITY ATTORNEY) City Attorney Robert Schultz reported Government Code Section 37421 allows for the sale of any City -owned building and/or property by adoption of a resolution of intention to sell City property. The purpose of this public hearing is to allow for any person to protest the proposed sale. Mr. Schultz recommended the City Council adopt Resolution No. 43-04 authorizing staff to seek bids to sell the real property located at 220 Atascadero Road. Mayor Yates opened the hearing for public comment. ® Joan Solo requested the City Council not adopt Resolution No. 43-04 so that the property can be maintained for a recreational swimming facility. She said the City should consider the sale of another property. E Frank DeVine stated this property is a prime location for a swimming pool. He also requested the City consider selling another property and maintain this property for recreational purposes. Melody DeMeritt stated this is prime property for recreational purposes. This is the wrong property to sell. Mayor Yates closed the public comment hearing. Councilmember Peirce stated a swimming pool is extremely expensive to maintain. He said it is not realistic that the City would be able to fund a swimming pool within the next ten years. Councilmember Peters stated the City's budget is going to be negatively impacted by the State budget, and a swimming pool would not be affordable for a long time. She said a fire station is more important for the City to consider at this time. E ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JULY 12, 2004 Councilmember Winholtz stated she would prefer not to sell this property unless another location is acquired that can maintain a vision of building a pool. Councilmember Elliott stated it would be wonderful to be able to build a pool in Morro Bay, but the City should consider the fire station at this time. He said he supports putting out a Notice of Intent to Sell, and see what happens from there. Mayor Yates stated he supports selling this property because the City bought it for a teen center, and now the teen center is located across the street. MOTION: Councilmember Elliott moved the City Council adopt Resolution No. 43-04 authorizing staff to seek bids to sell the real property located at 220 Atascadero Road. The motion was seconded by Councilmember Peirce and carried with Councilmember Winholtz voting no. (4-1) Mayor Yates called for a break at 9:11 p.m.; the meeting resumed at 9:30 p.m. B-3 CONTINUED PUBLIC HEARING AND RECOMMENDATION ON FEES CHARGED BY THE CITY FOR PLANNING SERVICES; (PUBLIC ® SERVICES) Public Services Director Bruce Ambo stated this is a continued public hearing on the Public Services cost study on fees. Staff was directed to return with a more detailed discussion on the fee study, and provide a cost comparison with other jurisdictions within the County. Mr. Ambo recommended the City Council consider the presentation by Revenue Cost Specialists on Public Service fees, and the comparative analysis of fees within the County. Eric Johnson of Revenue Cost Specialists reviewed the cost study prepared for the City of Morro Bay. Mayor Yates opened the hearing for public comment. Don Doubledee stated raising fees might create an impact on the Public Services Department as well as people who have already taken out funding for a new project. He asked Council to consider maintaining lower fees for people who are taking out permits for home improvements. John Barta stated the community should recognize the central role the Planning Department plays in our community process and not fall into the trap presented tonight which appears that the department only exists for developers. He urged Council to is support the City's Planning Department as an equal member of our General Fund. 10 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JULY 12, 2004 Mayor Yates closed the public comment hearing Councilmember Peters stated fees have not been raised in a long time, and this is a source of revenue for the City. She said the appeal fee should not be raised because that could deter people from appealing which is not right. Councilmember Peters stated fees that could be raised are for issues that create an impact on the community. She said increased fees should not impact those that already have plans submitted. Councilmember Winholtz stated she agrees with raising fees where needed and lowering the proposed fees that were extreme to come to a median point. Councilmember Peirce stated in comparison of the fees charged in the County, Morro Bay's fees are second to the top. He questioned the median home selling price in the study. Councilmember Elliott stated these are not fees they are taxes. He said an appellant should pay fees on appeals, and if they win the appeal, that amount should be reimbursed. ® He said the City Council should levy the taxes. Councilmember Peters stated the City has the right to collect for services because they are options that people choose to have. 11 Mayor Yates stated there are fees that are not listed in the study, and he is not voting in favor because there is not enough information. Councilmember Winholtz suggested a sub -committee review these fees. Councilmember Elliott stated he does not support adopting these fees tonight. Mayor Yates stated he supports cutting expenses rather then increasing fees. MOTION: Councilmember Peters moved the City Council continue the public hearing to consider fees charged by the City for planning services to the August 9, 2004 City Council meeting. The motion was seconded by Councilmember Elliott and carried unanimously. (5-0) 11 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JULY 12, 2004 C. UNFINISHED BUSINESS C-1 CONSIDERATION OF COMMUNITY GATEWAY ENTRY PUBLIC ART DONATION; (PUBLIC SERVICES) Capital Projects Manager Bill Boucher stated at a City Council meeting in February 2003, local artist Botso Koresheli made a presentation offering to donate to the City a hewn granite sculpture installed on an engineered foundation at the main entryway to the community. The proposed sculpture incorporated a number of elements evoking Morro Bay's environment including fish, pelicans and a water feature. The City Council expressed support for the concept but was reluctant to make a commitment for the $10,000 total cost estimated by Dr. Koresheli. Since that Council meeting, Dr. Koresheli and his students, including two civil engineers, have been working to solve the financial issues as well as refine details of the proposal. The matter was considered at the June 17, 2004 Recreation & Parks Commission meeting. At the meeting, Dr. Koresheli noted the concept of the project had changed. He told the Commission it would have a pool sculpted on its top to facilitate the flow of water and different colored boulders at the base. It was later described as a "celebration of rock and water on rock". He also told the Commission that clubs had assured him there would be no problem raising the ® funding needed to complete the project. The Commission moved unanimously to take the proposal to the next level with the recommendation that the Recreation & Parks Department budget be augmented for the maintenance costs. Mr. Boucher recommended the City Council consider the proposal and accept the donation of the completed sculpture from Dr. Botso Koresheli. C Mayor Yates expressed appreciation on behalf of the City Council and the City to Dr. Koresheli for his donation of this fabulous donation. He said he is a proponent of public art. Councilmember Winholtz stated she believes there should be a public art policy to maintain consistency. She said she would like to accept this donation, and look into a public art policy. Councilmember Elliott stated Council should be responsible for accepting art from the public. He said he supports accepting the donation of Dr. Koresheli. Councilmember Peirce stated this will make a very interesting entrance to the City, and he supports accepting the donation. Councilmember Peters stated a policy is something to consider, and suggested the Parks & Recreation Commission could consider the policy. 12 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JULY 12, 2004 Councilmember Winholtz stated by accepting this donation, the City is adding a budget item for maintenance without acknowledging where the money is coming from. MOTION: Mayor Yates moved the City Council accept the gateway entry public art donation of Dr. Botso Korisheli. The motion was seconded by Councilmember Elliott and carried unanimously. (5-0) MOTION: Councilmember Peters moved the City Council direct the Recreation & Parks Commission to address a public art policy. The motion was seconded by Councilmember Winholtz and failed with Councilmember Elliott, Councilmember Peirce and Mayor Yates voting no. (2-3) C-2 REPORT ON DEVELOPING A TWO -STATION FIRE DEPARTMENT CONFIGURATION; (FIRE) Fire Chief Mike Pond stated at the May 10, 2004 City Council meeting, Council received a report from the Ad -Hoc Emergency Services Committee about emergency response service levels. At that time staff was directed to bring back information on implementing a second fire station. In preparing the report, staff found that other elements in addition ® to those directly related to placing Station 54 back into daily service, needed to be considered as well. Staff learned it was necessary to address cost; tactical and timing issues for thee main elements. Those elements are: 1) placing Station 54 back into service; 2) options for bringing Station 53 back into full service; and, 3) required staffing increase to provide for operations in a two -station fire department. Each of the three elements presents formidable fiscal impacts. Financial approval of any one element will affect financing for the others as they are in competition for the same dollars. The Ad - Hoc Emergency Services Committee is preparing to conduct two community workshops in September, to educate the public on issues related to fire and emergency services and their costs. One of the goals of the workshops is to receive feedback regarding potential funding options for desired levels of service and facilities. Information form these workshops should prove helpful when considering financing options in the future. Mr. Pond recommended the City Council review the information provided by staff, and direct staff accordingly. Consensus of Council was in support of Option D — replacing the apparatus bay at the existing fire station site. MOTION: Councilmember Peters moved the City Council approve Option D — replace. apparatus bay at the existing fire station site. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) ® Discussion on Station 54 was continued to the July 26, 2004 City Council meeting. 13 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JULY 12, 2004 D. NEW BUSINESS D-1 PRESENTATION ON RIDE -ON TRANSPORTATION SERVICES Mark Shaeffer, Executive Director of Ride -On Transportation, reviewed the various transportation services in the County. No action was taken on this item. D-2 UPDATE ON THE TOURISM REQUEST FOR PROPOSAL; (COUNCIL) This item was continued to the July 26, 2004 City Council meeting. D-3 DISCUSSION ON REDUCING WATER HOOK-UP FEES; (COUNCIL) This item was continued to the July 26, 2004 City Council meeting. ® D-4 COUNCILMEMBER REQUEST TO AGENDIZE AN UPDATE ON WATER RESOURCES; (COUNCIL) This item was continued to the July 26, 2004 City Council meeting. D-5 COUNCILMEMBER REQUEST TO AGENDIZE THE DISCUSSION ON INCREASING SEWER RATES; (COUNCIL) This item was continued to the July 26, 2004 City Council meeting. ADJOURNMENT The meeting adjourned at 11:12 p.m. (Recorded by: Bridgett Bauer City Clerk 14 ® City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of fife. The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING —.TUNE 28, 2004 CLOSED SESSION — JUNE 28, 2004 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA CS-1 GOVERNMENT CODE SECTION 54956.8; REAL PROPERTY ® TRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the possible transfer of water. Property: State Water and Chorro Wells Negotiating Parties: City and County of SLO Negotiations: Voluntary Purchase and Sale. CS-2 GOVERNMENT CODE SECTION 54956.9(A): PENDING LITIGATION. Conference with Legal Counsel Regarding Pending Litigation: Reddell vs. City of Morro Bay CS-3 GOVERNMENT CODE SECTION 54957: PERSONNEL ISSUES. Discussions regarding Personnel Issues including one (1) public employee regarding evaluation, specifically the City Manager. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. El ® PUBLIC SESSION — JUNE 28, 2004 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCILMEMBERS ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period, the following rules shall be followed: • When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments are to be limited to three minutes. • All remarks shall be addressed to Council, as a whole, and not to any individual member thereof. ® • The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or staff. • Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering. • Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting. • Your participation in City Council meetings is welcome and your courtesy will be appreciated. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 772-6205. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS ® A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A -I APPROVAL OF MINUTES FOR THE REGULAR MEETING ON JUNE 14, 2004; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 RESOLUTION NO. 51-04 CALLING THE GENERAL MUNICIPAL ELECTION; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 51-04. A-3 INVESTMENT REPORT FOR APRIL 2004; (FINANCE) RECOMMENDATION: Receive report for information. A4 RESOLUTION NO. 54-04 ADOPTING THE OPERATING BUDGETS FOR FISCAL YEAR 2004-2005; (FINANCE) RECOMMENDATION: Adopt Resolution No. 54-04. ® A-5 RESOLUTION NO. 55-04 ESTABLISHING ANNUAL PROPOSITION 4 APPROPRIATION LIMIT FOR FISCAL YEAR 2004-2005; (FINANCE) RECOMMENDATION: Adopt Resolution No. 55-04. A-6 RESOLUTION NO. 44-04 PROVIDING WORKERS' COMPENSATION COVERAGE FOR CERTAIN CITY VOLUNTEERS PURSUANT TO THE PROVISIONS OF SECTION 3363.5 OF THE LABOR CODE; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 44-04. A-7 APPROVAL OF AGREEMENT BETWEEN THE CITY OF MORRO BAY AND CHAMBER OF COMMERCE; (CITY ATTORNEY) RECOMMENDATION: Review and approve agreement between the City and Chamber of Commerce. 11 ® A-8 RESOLUTION NO. 52-04 APPROVING APPLICATION AND ASSURANCES FOR CALIFORNIA COASTAL CONSERVANCY GRANT FUNDING FOR WATERFRONT BOARDWALK PROJECT; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 52-04. A-9 AWARD OF CONTRACT FOR CHORRO CREEK BRIDGE EARTHQUAKE DAMAGE REPAIR PROJECT; (PUBLIC SERVICES) RECOMMENDATION: Award the project contract to John Madonna Construction, Inc. in the amount of $31,423.50. A-10 RESOLUTION NO. 47-04 APPROVING SUBLEASE FOR A PORTION OF LEASE SITE 87-88/87W-88W LOCATED AT 833 EMBARCADERO; (HARBOR) RECOMMENDATION: Adopt Resolution No. 47-04. A-11 RESOLUTION NO. 53-04 AUTHORIZING GRANT AGREEMENT WITH COASTAL CONSERVANCY FOR CONSTRUCTION AND INSTALLATION OF AN ICE MACHINE; (HARBOR) RECOMMENDATION: Adopt Resolution No. 53-04. is A-12 MORRO BAY DIAL -A -RIDE TRANSPORTATION DEVELOPMENT ACT TRIENNIAL PERFORMANCE AUDIT REPORT; (ADMINISTRATION) RECOMMENDATION: Accept the TDA Triennial Performance Audit Report. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-I RESOLUTION NO. 49-04 DIRECTING THE LEVY OF THE ANNUAL ASSESSMENT FOR THE CLOISTERS LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT; (RECREATION & PARKS) RECOMMENDATION: Adopt Resolution No. 49-04. B-2 RESOLUTION NO. 50-04 DIRECTING THE LEVY OF THE ANNUAL ASSESSMENT FOR THE NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT; (RECREATION & PARKS) RECOMMENDATION: Adopt Resolution No. 50-04. 2 B-3 ORDINANCE NO. 503 APPROVING A PROPOSED LOCAL COASTAL PROGRAM AMENDMENT AND REZONE OF AN APPROXIMATELY ONE - ACRE SITE LOCATED AT 401 ATASCADERO ROAD - FIRST READING/ INTRODUCTION; (PUBLIC SERVICES) RECOMMENDATION: Approve Ordinance No. 503 for first reading and introduction. B-4 PUBLIC HEARING AND RECOMMENDATION ON FEES CHARGED BY THE CITY FOR PLANNING SERVICES; (PUBLIC SERVICES) RECOMMENDATION: Receive presentation on Cost Study regarding the actual costs of services performed by the Public Services Department; direct staff on any changes in the proposed fee adjustments; and, adopt Resolution No. 56-04 which adopts the revised fee schedule. C. UNFINISHED BUSINESS C-1 CONSIDERATION OF DOWNTOWN MEMORIAL STREET BENCH PROGRAM; (PUBLIC SERVICES) RECOMMENDATION: Consider options for implementation of such a program, and direct staff accordingly. ® D. NEW BUSINESS D-1 COUNCILMEMBER REQUEST TO AGENDIZE THE DISCUSSION OF SECONDARY UNITS IN RESIDENTIAL AREAS; (CITY COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. E. ADJOURNMENT THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TIME SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 772-6200 FOR FURTHER INFORMATION. COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST AT CITY HALL, LIBRARY, AND MILLS STATIONERY. IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT ® REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. 5 MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION — JUNE 28, 2004 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Yates called the meeting to order at 5:00 p.m PRESENT: William Yates Mayor Dave Elliott Councilmember William Peirce Councilmember Janice Peters Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix City Manager Robert Schultz City Attorney CLOSED SESSION MOTION: Councilmember Peirce moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Peters and unanimously carved. (5-0) Mayor Yates read the Closed Session Statement. CS-1 GOVERNMENT CODE SECTION 54956.8; REAL PROPERTY TRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the possible transfer of water. • Property: State Water and Chorro Wells Negotiating Parties: City and County of SLO Negotiations: Voluntary Purchase and Sale. CS-2 GOVERNMENT CODE SECTION 54956.9(A); PENDING LITIGATION. Conference with Legal Counsel Regarding Pending Litigation: Reddell vs. City of Morro Bay CS-3 GOVERNMENT CODE SECTION 54957; PERSONNEL ISSUES. Discussions regarding Personnel Issues including one (1) public employee regarding evaluation, specifically the City Manager. The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:35 p.m. MOTION: Councilmember Peirce moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Peters and unanimously carried. (5-0) The meeting adjourned at 5:35 p.m. 1 ® MINUTES_- MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 28, 2004 VETERANS MEMORIAL HALL - 6:00 P.M. 2 11 Mayor Yates called the meeting to order at 6:00 p.m PRESENT: William Yates Mayor Dave Elliott Councilmember William Peirce Councilmember Janice Peters Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix Robert Schultz Bridgett Bauer Rick Algert Bruce Ambo Bill Boucher Janeen Burlingame Frank Cunningham John DeRohan Clyde Ganes Dave Phillips Mike Pond Mike Prater Jim Koser Andrea Lueker ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE City Manager City Attorney City Clerk Harbor Director Public Services Director Capital Projects Manager Management Analyst City Engineer Police Chief Building Official Maintenance Superintendent Fire Chief Associate Planner Finance Director Recreation & Parks Director MAYOR'S REPORTS & ANNOUNCEMENTS CLOSED SESSION REPORT - City Attorney Robert Schultz reported the City Council met in Closed Session, and no reportable action under the Brown Act was taken on Items CS-1 and CS-3. In reference to Item C-2, the City Council directed the City Attorney to file a response to the complaint filed against the City by Dan Reddell. PUBLIC COMMENT Betty Forsythe stated the library would have a patriotic tribute to our Veterans and men and women in uniform on July 3rd. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 28, 2004 Ken Vesterfelt stated other cities in the county are revising their unreinforced masonry buildings, and perhaps Morro Bay should consider the same. He addressed Item B-4 (Public Hearing and Recommendation on Fees Charged by the City for Planning Services) and asked if Council could delay this discussion in order for more people to speak on this issue. Nick Franko, District Superintendent for State Parks, gave an update on the campground renovation project. Susie Baggett asked the City for assistance in moving an abandoned car parked in front of her house. David Nelson stated the Coastal Commission would be meeting this week regarding the Duke Energy Modernization Project. He asked when the City would be paid the remaining money owed by Duke Energy, and he also asked about the status with the outfall lease. Mr. Nelson stated the particulate matter would double with a modernized plant. ® Hershel Parker stated dogs on the beach threaten older people, and shared stories of dogs attacking people. C] Roger Ewing addressed Item A-6 (Resolution No. 44-04 Providing Workers' Compensation Coverage for Certain City Volunteers Pursuant to the Provisions of Section 3363.5 of the Labor Code) and asked what are the criteria for "certain" volunteers, and how much will it cost. George Contento stated he attended the Cal Poly architectural class that worked on the project for the convention center. He said they did a wonderful job; however, the models turned out to be huge. Mr. Contento asked how much has been spent on this project, and how much will be spent in the future. He requested the City Council re -address the issue. Julianne Epperly stated there are t-shirts for sale that will benefit the 4th of July. She addressed Item C-1 (Consideration of Downtown Memorial Street Bench Program) and shared pictures of different benches. She said when she approached Council on this project, her intent was to place the same design of benches on Morro Bay Boulevard, and they would have a plaque "in memory of. Stan House stated the Friends of the Library are planning to fix the mural on the outside of the library, and volunteers are welcome to help. 3 11 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 28, 2004 John Barta addressed Item A-7 (Approval of Agreement Between the City of Morro Bay and Chamber of Commerce) stating the agreement should prohibit the Chamber of Commerce from independently selling commercial advertising on a website sponsored by the City. He also addressed Item D-1 (Councilmember Request To Agendize The Discussion Of Secondary Units In Residential Areas) stating a community consensus states if it fits in the box - build it. Melody DeMeritt shared photos of a new residence being built on Berwick that leaves no room for a yard. She urged the City to be careful when dealing with Dan Reddell and the lawsuit he has named the City as co-defendant and against the California Coastal Commission in their denial of the Harbor View Project as proposed. Ms. DeMeritt asked the Council to care more about the tourist and the revenue they bring into Morro Bay because they like it the way it is right now; and, care more about long-term planning with a vision that serves all residents. Mayor Yates closed the hearing for public comment. DECLARATION OF FUTURE AGENDA ITEMS Mayor Yates requested to agendize an update on the Tourism Request for Proposal; and. discussion on reducing water -hook up fees. Councilmember Winholtz requested to agendize the discussion on increasing sewer rates. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. AA APPROVAL OF MINUTES FOR THE REGULAR MEETING ON JUNE 14, 2004; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 RESOLUTION NO. 51-04 CALLING THE GENERAL MUNICIPAL ELECTION; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 51-04. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 28, 2004 A-3 INVESTMENT REPORT FOR APRIL 2004; (FINANCE) RECOMMENDATION: Receive report for information. A-4 RESOLUTION NO. 54-04 ADOPTING THE OPERATING BUDGETS FOR FISCAL YEAR 2004-2005; (FINANCE) RECOMMENDATION: Adopt Resolution No. 54-04. A-5 RESOLUTION NO. 55-04 ESTABLISHING ANNUAL PROPOSITION 4 APPROPRIATION LIMIT FOR FISCAL YEAR 2004-2005; (FINANCE) RECOMMENDATION: Adopt Resolution No. 55-04. A-6 RESOLUTION NO. 44-04 PROVIDING WORKERS' COMPENSATION COVERAGE FOR CERTAIN CITY VOLUNTEERS PURSUANT TO THE PROVISIONS OF SECTION 3363.5 OF THE LABOR CODE; (ADMINISTRATION) ® RECOMMENDATION: Adopt Resolution No. 44-04. A-7 APPROVAL OF AGREEMENT BETWEEN THE CITY OF MORRO BAY AND CHAMBER OF COMMERCE; (CITY ATTORNEY) RECOMMENDATION: Review and approve agreement between the City and Chamber of Commerce. A-8 RESOLUTION NO. 52-04 APPROVING APPLICATION AND ASSURANCES FOR CALIFORNIA COASTAL CONSERVANCY GRANT FUNDING FOR WATERFRONT BOARDWALK PROJECT; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 52-04. A-9 AWARD OF CONTRACT FOR CHORRO CREEK BRIDGE EARTHQUAKE DAMAGE REPAIR PROJECT; (PUBLIC SERVICES) RECOMMENDATION: Award the project contract to John Madonna Construction, Inc. in the amount of $31,423.50. 5 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 2812004 A-10 RESOLUTION NO. 47-04 APPROVING SUBLEASE FOR A PORTION OF LEASE SITE 87-88/87W-88W LOCATED AT 833 EMBARCADERO; (HARBOR) RECOMMENDATION: Adopt Resolution No. 47-04. A-11 RESOLUTION NO. 53-04 AUTHORIZING GRANT AGREEMENT WITH COASTAL CONSERVANCY FOR CONSTRUCTION AND INSTALLATION OF AN ICE MACHINE; (HARBOR) RECOMMENDATION: Adopt Resolution No. 53-04. A-12 MORRO BAY DIAL -A -RIDE TRANSPORTATION DEVELOPMENT ACT TRIENNIAL PERFORMANCE AUDIT REPORT; (ADMINISTRATION) RECOMMENDATION: Accept the TDA Triennial Performance Audit Report. Councilmember Winholti pulled Items A-1, A-8 and A-12 from the Consent Calendar; ® Mayor Yates pulled Item A-4; and Councilmember Elliott pulled Items A-6 and A-7. MOTION: Councilmember Winholtz moved the City Council approve Items A-2, A-3, A-5, A-9, A-10 and A-11 of the Consent Calendar. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) C A-1 APPROVAL OF MINUTES FOR THE REGULAR MEETING ON JUNE 14, 2004; (ADMINISTRATION) Councilmember Winholtz addressed a correction on page 3, paragraph 1 of the June 14, 2004 minutes. MOTION: Councilmember Winholtz moved the City Council approve Item A-1 of the Consent Calendar as amended. The motion was seconded by Councilmember Elliott and carried unanimously. (5-0) A4 RESOLUTION NO. 54-04 ADOPTING THE OPERATING BUDGETS FOR FISCAL YEAR 2004-2005; (FINANCE) Mayor Yates pulled this item in order to vote in opposition to Resolution No. 54-04 adopting the operating budgets for fiscal year 2004-2005. M MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 28, 2004 MOTION: Councilmember Peirce moved the City Council approve Item A4 of the Consent Calendar. The motion was seconded by Councilmember Peters and carried with Mayor Yates voting no. (4-1) A-6 RESOLUTION NO. 44-04 PROVIDING WORKERS' COMPENSATION COVERAGE FOR CERTAIN CITY VOLUNTEERS PURSUANT TO THE PROVISIONS OF SECTION 3363.5 OF THE LABOR CODE; (ADMINISTRATION) Councilmember Elliott stated community service volunteers are more susceptible with work -related injuries. He said it is so easy to file a Workers' Compensation claim, and the City is responsible for 100% on these claims. MOTION: Councilmember Peirce moved the City Council approve Item A-6 of the Consent Calendar. The motion was seconded by Councilmember Peters and failed with Councilmember Elliott, Councilmember Winholtz and Mayor Yates voting no. (2-3) ® A-7 APPROVAL OF AGREEMENT BETWEEN THE CITY OF MORRO BAY AND CHAMBER OF COMMERCE; (CITY ATTORNEY) E Councilmember Elliott stated this agreement does not resolve many of the questions regarding the Chamber's use of City funds. Mayor Yates stated he would be voting against this agreement because he does not see the need. MOTION: Councilmember Winholtz moved the City Council continue this item to the July 12, 2004 City Council meeting. The motion was seconded by Councilmember Elliott and carried with Councilmember Peirce and Mayor Yates voting no. (3-2) Mayor Yates called for a break at 7:24 p.m.; the meeting resumed at 7:40 p.m. A-8 RESOLUTION NO. 52-04 APPROVING APPLICATION AND ASSURANCES FOR CALIFORNIA COASTAL CONSERVANCY GRANT FUNDING FOR WATERFRONT BOARDWALK PROJECT; (PUBLIC SERVICES) Councilmember Winholtz expressed concern that the proposed boardwalk will go across the Duke Energy property. 7 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 28, 2004 Mayor Yates stated this project started in 1992; he said go for it. MOTION: Councilmember Peirce moved the City Council approve Item A-8 of the Consent Calendar. The motion was seconded by Councilmember Peters and carried unanimously. (5-0) A-12 MORRO BAY DIAL -A -RIDE TRANSPORTATION DEVELOPMENT ACT TRIENNIAL PERFORMANCE AUDIT REPORT; (ADMINISTRATION) Councilmember Winholtz stated she was concerned with continuing with the same contractor based on a reduction in rider ship. Councilmember Peters stated this is a convenient service for the community Councilmember Elliott stated the report is reflective of how well the City is doing MOTION: Councilmember Winholtz moved the City Council approve Item A-12 of the Consent Calendar. The motion was seconded by Councilmember ® Peters and carried unanimously. (5-0) B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 RESOLUTION NO. 49-04 DIRECTING THE LEVY OF THE ANNUAL ASSESSMENT FOR THE CLOISTERS LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT; (RECREATION & PARKS) Recreation & Parks Director Andrea Lueker stated at the May 24, 2004 City Council meeting, Council adopted Resolution No. 40-04 approving the Engineer's Report describing the annual maintenance to be completed at the Cloisters Park and Open Space, and declaring the City's intent to levy an annual assessment to finance this maintenance. Also at the May 24, 2004 meeting, the City Council approved a general fund subsidy for fiscal year 2004- 2005 that will ensure the current maintenance through June 30, 2005. The County Assessor will collect the assessment projected at $1,241.20 per assessable lot in the Cloisters subdivision. By adopting Resolution No. 49-04, $148,944 will be collected through an assessment of all parcel owners in the Cloisters subdivision for the maintenance of the Cloisters Park and Open Space. Ms. Lueker recommended the City Council adopt Resolution No. 49-04 confirming the levy of the Cloisters Landscaping and Lighting Maintenance Assessment District. Mayor Yates opened the hearing for public comment. 3 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 28, 2004 The following people expressed opposition to the levy of the Cloisters Landscaping and Lighting Maintenance Assessment District: Freeman Hall, John Lauffer, Carrigan Mayham, Steve Stephens, Melanie Mayham, John Whitworth, Jerry Crawford, Sara Blackbury, and Heidi Baird. Roger Ewing asked what the value of the homes would be without a park. He said no one forced the homeowners to sign the contract for the assessment district. Mayor Yates closed the public comment hearing. Councilmember Peters read letters from property owners who are in support of the assessment district. She said a compromise was not reached during the meeting of the sub- committee relating to the Cloister's assessment fees. Councilmember Peters stated she couldn't put the City under the financial burden of removing these fees. Mayor Yates stated the park is enjoyed by every one and should not be paid for by the homeowners. ® Councilmember Winholtz stated she supports maintaining the assessment district for what she perceives as a benefit and for Coastal Act reasons. She said the maintenance issues brought up by the homeowners should be fixed. Councilmember Winholtz stated the sub- committee could reconvene to try to reduce costs but she sees this as an on -going issue. 11 Councilmember Elliott stated the Coastal Commission merely required the open space, and the City demanded a park. He said there is not one parkway in the housing tract that looks good. Councilmember Elliott stated people meet there with their dogs, none of which live in the subdivision. He said it is a City park, and should be the City's responsibility. Councilmember Peirce stated the sub -committee tried to work the costs out with the homeowners. He said the assessment is not keeping up with the inflation of costs to maintain the assessment district. Councilmember Peirce stated the park would not be maintained as a Class "A" park without the assessment district. Mayor Yates stated he believes even with labor reductions, the park will still be maintained as a Class "A" park. He said the parkways are a disgrace and needs improvement. Councilmember Elliott stated forming another sub -committee would go nowhere. He said the property owners should work this out between themselves. 6 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 28, 2004 MOTION: Councilmember Peters moved the City Council adopt Resolution No. 49-04 confirming the levy of the Cloisters Landscaping and Lighting Maintenance Assessment District. The motion was seconded by Councilmember Peirce and carried with Councilmember Elliott and Mayor Yates voting no. (3-2) B-2 RESOLUTION NO. 50-04 DIRECTING THE LEVY OF THE ANNUAL ASSESSMENT FOR THE NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT; (RECREATION & PARKS) Recreation & Parks Director Andrea Lueker stated at the May 24, 2004 City Council meeting, Council adopted Resolution No. 41-04 approving the Engineer's Report describing the annual maintenance to be completed at the North Point Natural Area, and declaring the City's intent to levy an annual assessment to finance this maintenance. The County Assessor will collect the assessment projected at $564.50 per assessable lot in the North Point subdivision. By adopting Resolution No. 50-04, $5,645 will be collected through an assessment of all parcel owners in the North Point subdivision for the maintenance of the North Point Natural Area. Ms. Lueker recommended the City Council adopt Resolution No. is 50-04 confirming the levy of the North Point Natural Area Landscaping and Lighting Maintenance Assessment District. Mayor Yates opened the hearing for public comment; there being none, Mayor Yates closed the public comment hearing. MOTION: Councilmember Peters moved the City Council adopt Resolution No. 50-04 confirming the levy of the North Point Natural Area Landscaping and Lighting Maintenance Assessment District. The motion was seconded by Councilmember Peirce and carried with Councilmember Elliott and Mayor Yates voting no. (3-2) B-3 ORDINANCE NO. 503 APPROVING A PROPOSED LOCAL COASTAL PROGRAM AMENDMENT AND REZONE OF AN APPROXIMATELY ONE - ACRE SITE LOCATED AT 401 ATASCADERO ROAD - FIRST READING/ INTRODUCTION; (PUBLIC SERVICES) Associate Planner Mike Prater stated the Planning Commission has recommended approval of the applicant's request to rezone the property, bounded by Sunset Avenue, Highway 41 and Rockview Street. The proposed Local Coastal Plan change and rezone is for an approximately one -acre site consisting of 7 underlying lots from Central Business/General Commercial to Mixed Commercial/Residential and Multiple Residential -Professional with a ® Planned Development Overlay retaining the Specific Plan designation. The requested 10 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 28, 2004 rezone may facilitate a residential housing project or light commercial that's compatible with residential land uses. The request is consistent with the existing General Plan and Coastal Land Use Plan designation of Mixed Use. After the Coastal Commission has granted final approval of the LCP and rezone, the applicant will submit additional applications for approval of the actual physical development project. Mr. Prater recommended the City Council approve Ordinance No. 503 approving a proposed Local Coastal Program amendment and rezone of an approximately one -acre site located at 401 Atascadero Road by number and title. only. Mayor Yates opened the hearing for public comment. Cathy Novak, representative for the property owner, stated the previous owners of this property and their neighbors wrote a letter to the City in 1994 requesting a rezone on the property to MCR/R-4. In 1997, the City finalized its General Plan Amendment that included a rezone on this property to C-1/C-2. Since the property was not rezoned per the original request, the applicant is now before Council to rezone the property as originally requested. ® Stan House stated he supports the rezoning because it will provide affordable housing. Mayor Yates closed the public comment hearing. MOTION: Councilmember Peirce moved the City Council approve Ordinance No. 503 approving a proposed Local Coastal Program amendment and rezone of an approximately one -acre site located at 401 Atascadero Road by number and title only. The motion was seconded by Councilmember Elliott. Mayor Yates made an amendment to the motion to continue the second reading and adoption to July 12, 2004; Councilmember Peirce and Councilmember Elliott agreed to the amendment. VOTE: The motion carried unanimously. (5-0) City Manager Robert Hendrix read Ordinance No. 503 by number. and title only. Mayor Yates called for a break at 8:50 p.m.; the meeting resumed at 9:03 p.m. 11 it ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 28, 2004 B-4 PUBLIC HEARING AND RECOMMENDATION ON FEES CHARGED BY THE CITY FOR PLANNING SERVICES; (PUBLIC SERVICES) City Manager Robert Hendrix stated during the two public budget workshops held by the City Council in May, the City Council by consensus directed staff to propose both cost saving measures and revenue enhancements in an effort to balance the following fiscal year's budget without the need to reduce services or layoff staff. Initiatives in that direction were already under way, with the first focus being on Public Services fees that, with few exceptions, have not been increased in the last ten years. A second fee study is currently underway for selected fees in the Recreation and Parks Department. Staff is also searching for cost savings and attempting to adjust spending downward in advance of next fiscal year. Adoption of the proposed fee adjustments would provide the City with an estimated $224,200. Although some of the fees involved are for other City funds, the majority of the revenue improvements would be in the General Fund. Mr. Hendrix recommended the City Council receive the presentation on the Cost Study regarding the actual costs of services performed by the Public Services Department; direct staff on any changes in the proposed fee adjustments; and, adopt Resolution No. 56-04 which adopts the revised fee schedule. ® Eric Johnson, Revenue & Cost Specialists, reviewed the Cost Study relating to the actual costs of services performed by the Public Services Department. Mayor Yates opened the hearing for public comment Roger Ewing stated in -lieu parking fees should be included in the study. He also asked that the appeal fee to the Planning Commission and City Council remain at $120. John Barta stated there are not many people here because they did not know of this public hearing; he recommended continuing this item. He said the entire community should benefit from good planning. Mr. Barta requested Council not approve the proposed outrageous fees. He said higher fees would only allow the wealthy to buy and live here. Tom Laurie stated his issue with the cost adjustment study is that this is based on one department in the City, and what will the City do if the building permits stop and the fees dry up. He said City servant wages are subsidized by these fees and may have to be subsidized by the General Fund. Mayor Yates closed the public comment hearing. 12 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 28, 2004 Councilmember Peters stated this issue should be continued based on the amount of information that needs to be reviewed. She said some of the proposed fees are too high, such as appeals. Mayor Yates stated some of the cost increases are too high. He said he would like to see comparisons on other cities' fees, and projects in the City. Mayor Yates stated he does not support the increases as proposed. Councilmember Peirce stated he would like to know if other cities go through the same process. Councilmember Winholtz stated this study is a good reality check. She said a cost comparison would be helpful. Councilmember Elliott stated it is the City's responsibility to provide parking. He said the City has certain responsibilities to provide equitable rates. Councilmember Elliott stated he is not in support of the proposed fees. He also noted that time management is a difficult study. MOTION: Councilmember Peters moved the City Council continue this item to the ® July 12, 2004 City Council meeting with information requested by the City Council. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) C. UNFINISHED BUSINESS C-1 CONSIDERATION OF DOWNTOWN MEMORIAL STREET BENCH PROGRAM; (PUBLIC SERVICES) Capital Projects Manager Bill Boucher stated at a City Council meeting earlier this year, a local business owner offered to initiate a program through which citizens could memorialize loved ones via a downtown street bench program. The proposal was forwarded to the Public Works Advisory Board for discussion and recommendation. The Public Works Advisory Board discussed the matter at their March and April meetings and moved to recommend the City Council authorize staff time to refine the memorial bench program to include the following characteristics: that the program be administered by the Public Services Department; that memorials be available to both persons and pets; that the program be available for any site within the'City; that the program be open on a first -come, first -served basis; that the program be run on a total cost recovery basis; and that mechanisms be developed for on -going maintenance, locations, design and ADA-type considerations. Mr. Boucher recommended the City Council consider options for implementation of such a program and direct staff accordingly. The Public Works Advisory Board recommends the ® City Council authorize staff to. further define the program. 13 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 28, 2004 Councilmember Elliott stated the City should start the program with people who want to purchase and place the bench where they want. He said the benches should be structurally suitable to be placed on the street. Mayor Yates stated this should be kept simple with no fees and no permits. Councilmember Winholtz stated she would like some consistency to the benches. Councilmember Peters stated the benches should be placed throughout the City. She addressed problems with skateboarders. Councilmember Peters stated these benches should be to memorialize people and not pets. She said she also would like consistency of style and material. Councilmember. Peirce stated the redwood benches are going to be targets for skateboarders. He said standards should focus on durability; however, he is not opposed to different styles. Councilmember Peirce stated his ultimate goal is to replace the aggregate benches with wooden benches. ® Councilmember Elliott stated enforcement is needed to ensure protection of the benches. He said the person purchasing a bench should be responsible for the purchase of replacement benches. MOTION: Councilmember Peirce moved the City Council authorize staff to move forward with the bench program, with the criteria that the benches are to be safe; authorize that the benches will have the names of loved ones (people) mounted on the bench; and, the location to be approved by the Public Service Department. The motion was seconded by Mayor Yates and carried unanimously. (5-0) D. NEW BUSINESS D-1 COUNCILMEMBER REQUEST TO AGENDIZE THE DISCUSSION OF SECONDARY UNITS IN RESIDENTIAL AREAS; (CITY COUNCIL) Councilmember Elliott stated secondary units are not being used to house a relative, but used as a rental that creates over -crowding problems in our City. Mayor Yates stated he supports bringing back an item on affordable housing. 14 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 2812004 Councilmember Winholtz stated affordable housing units are becoming fewer because many of the older houses in town are being demolished and replaced with larger houses. Councilmember Peirce stated regulating second units would place pressure on what little rentals there are in the community. He said if a second unit is proposed, it should fit in the box and provide adequate parking. Councihnember Peters stated encroachments cause the lack of parking, which requires enforcement. No further action was taken on this item. ADJOURNMENT The meeting adjourned at 10:45 p.m. Recorded by: Bridgett Bauer City Clerk 15 11 City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life. The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING —JUNE 14, 2004 CLOSED SESSION — JUNE 14, 2004 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA CS-1 GOVERNMENT CODE SECTION 54956.9 (C); CONFERENCE WITH LEGAL COUNSEL DUE TO ANTICIPATED LITIGATION. Initiation of litigation exists based upon existing facts and the advice of legal counsel as to one matter. • De Vine vs. City of Morro Bay IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ® ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. ® PUBLIC SESSION — JUNE 14, 2004 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCILMEMBERS ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period, the following rules shall be followed: • When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments are to be limited to three minutes. • All remarks shall be addressed to Council, as a whole, and not to any individual member thereof. ® • The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or staff. • Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering. • Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting. • Your participation in City Council meetings is welcome and your courtesy will be appreciated. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 772-6205. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS 11 2 2 1 A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A -I APPROVAL OF MINUTES FOR THE BUDGET WORKSHOP ON MAY 20, 2004, AND THE REGULAR MEETING ON MAY 24, 2004; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 NOTICE OF COMPLETION OF PRIMARY CLARIFIER DRIVE UNIT REPLACEMENT PROJECT; (PUBLIC SERVICES) RECOMMENDATION: Accept project as completed. A-3 NOTICE OF COMPLETION ON RUDAT DOWNTOWN LIGHTING PROJECT; (PUBLIC SERVICES) RECOMMENDATION: Accept project as completed. A-4 NOTICE OF COMPLETION ON QUINTANA WATER LINE REPLACEMENT PROJECT; (PUBLIC SERVICES) RECOMMENDATION: Accept project as completed. A-5 RESOLUTION NO. 46-04 APPROVING NEW LEASE AGREEMENT FOR LEASE SITE 133W LOCATED AT 1235 EMBARCADERO; (HARBOR) RECOMMENDATION: Adopt Resolution No. 46-04. A-6 RESOLUTION NO. 47-04 APPROVING SUBLEASE FOR A PORTION OF LEASE SITE 87-88/87W-88W LOCATED AT 833 EMBARCADERO; (HARBOR) RECOMMENDATION: This item has been pulled from the agenda. A-7 RESOLUTION NO. 48-04 APPROVING AMENDMENT FOR LEASE SITE 113 W LOCATED ADJACENT TO 1215 EMBARCADERO; (HARBOR) RECOMMENDATION: Adopt Resolution No. 48-04. A-8 ADOPTION OF ORDINANCE NO. 502 AMENDING CHAPTER 2.28 OF THE MORRO BAY MUNICIPAL CODE; (CITY ATTORNEY) RECOMMENDATION: Adopt Ordinance No. 502. 3 ® A-9 RESOLUTION NO. 44-04 PROVIDING WORKERS' COMPENSATION COVERAGE FOR CERTAIN CITY VOLUNTEERS PURSUANT TO THE PROVISIONS OF SECTION 3363.5 OF THE LABOR CODE; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 44-04. A-10 ACCEPTANCE OF LETTERS OF RESIGNATION FROM COMMISSIONER ON THE RECREATION & PARKS COMMISSION AND COMMITTEE MEMBER ON THE COMMUNITY PROMOTIONS COMMITTEE; (ADMINISTRATION) RECOMMENDATION: Accept letters of resignation, and authorize City Clerk to proceed with advertising the vacancies. A-11 RESOLUTION NO. 45-04 SUPPORTING THE LOCAL GOVERNMENT BUDGET PACKAGE; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 45-04. A-12 RESOLUTION NO. 37-04 AMENDING COUNCIL POLICIES AND PROCEDURES SECTION 1.3.9.3.5; (CITY ATTORNEY) RECOMMENDATION: Adopt Resolution No. 37-04. is B. PUBLIC HEARINGS, REPORTS & APPEARANCES 1 B-1 APPEAL OF PLANNING COMMISSION APPROVAL ON THE MORRO BAY BOULEVARD/QUINTANA ROAD ROUNDABOUT; (PUBLIC SERVICES) RECOMMENDATION: Uphold the decision of the Planning Commission, and deny the appeal. C. UNFINISHED BUSINESS — NONE. D. NEW BUSINESS D-1 AUTHORIZATION FOR RECRUITMENT OF POLICE SUPPORT SERVICES MANAGER; (POLICE) RECOMMENDATION: Authorize the filling of the vacancy created by the retirement of the Support Services Manager; approve and adopt the revised job description. n ® D-2 RESOLUTION NO. 43-04 ACKNOWLEDGING INTENTION TO SELL CITY - OWNED REAL PROPERTY LOCATED AT 220 ATASCADERO ROAD, MORRO BAY; (CITY ATTORNEY) E RECOMMENDATION: Adopt Resolution No. 43-04. D-3 REQUEST TO AGENDIZE THE DISCUSSION ON CAMPAIGN EXPENDITURE LIMITS; (COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. D-4 REQUEST TO AGENDIZE THE DISCUSSION ON FUNDS FOR COMMUNITY PROMOTIONS; (COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. E. ADJOURNMENT THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TIME SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 772-6200 FOR FURTHER INFORMATION. COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERKAND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST AT CITY HALL, LIBRARY, AND MILLS STATIONERY. IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. w ® MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION — JUNE 14, 2004 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Yates called the meeting to order at 5:00 p.m PRESENT: William Yates Mayor Dave Elliott Councilmember William Peirce Councilmember Janice Peters Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix City Manager Robert Schultz City Attorney CLOSED SESSION MOTION: Councilmember Peirce moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Peters and• unanimously carried. (5-0) Mayor Yates read the Closed Session Statement. ® CS-1 GOVERNMENT CODE SECTION 54956.9 (C); CONFERENCE WITH LEGAL COUNSEL DUE TO ANTICIPATED LITIGATION. Initiation of litigation exists based upon existing facts and the advice of legal counsel as to one matter. • DeVine vs. City of Morro Bay The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:40 p.m. MOTION: Councilmember Peirce moved the meeting be adjourned. The motion was seconded by Councilmember Peters and unanimously carried. (5-0) The meeting adjourned at 5:40 p.m. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 14, 2004 VETERANS MEMORIAL HALL - 6:00 P.M. C Mayor Yates called the meeting to order at 6:00 p.m PRESENT: William Yates Mayor Dave Elliott Councilmember William Peirce Councilmember Janice Peters Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix Robert Schultz Bridgett Bauer Rick Algert Bruce Ambo Bill Boucher Greig Cummings Frank Cunningham John DeRohan Bruce Keogh Jim Koser Andrea Lueker City Manager City Attorney City Clerk Harbor Director Public Services Director Capitol Projects Manager Planning Manager City Engineer Police Chief WWTP Manager Finance Director Recreation & Parks Director ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE - PLEDGE OF ALLEGIANCE MAYOR'S REPORTS & ANNOUNCEMENTS CLOSED SESSION REPORT - City Attorney Robert Schultz reported the City Council met in Closed Session, and no reportable action under the Brown Act was taken. PUBLIC COMMENT Hank Roth announced the Friends of the Library are sponsoring "A Patriotic Tribute to our Veterans and Men and Women in Uniform" on July 3, 2004. Kim Kimball announced funding for the Family Fun 4'h of July festivities is half way there with two weeks to go, and encouraged donations. Norma Vaughan thanked Councilmember Dave Elliott for his donation to assist the Senior Center insurance payment. She also said the Senior Center collects travel size shampoo and soap to give to the homeless shelter. Frank Devine addressed the public nuisance drainage issue on Juniper Street. 2 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 14, 2004 Jerry Switzer addressed the housing project at Main Street and Quintana Road, which is adjacent to his property, and the improvements that are being requested by. the City. Norman Risch addressed the benefits of the instant run-off voting method that eliminates run-offs and saves in cost. Gary Ream stated he sent a letter to Council relating to expenditure limits on campaigns and encouraged Council's support. Melody DeMeritt announced her candidacy for City Council. Hershel Parker addressed the snowy plover issue. He urged the City Council to enforce the leash laws at the Rock and the beach north of the Rock all the way to the area around the end of Highway 41 where the state beach starts; as well as the in the streets of the beach tract, Azure parking lot and Cloister's Subdivision. Ed Dumong addressed an incident on a building site behind his house where someone dropped a 12x6 beam on the chair his wife usually sits in. He also said the State Park ® employees are driving a 6-wheel vehicle across the sand spit and yet people are not allowed to walk in that area. Mr. Dumong stated dog owners need special rights to walk their dogs. Roger Ewing addressed Item A-9 (Resolution No. 44-04 Providing Workers' Compensation Coverage for Certain City Volunteers Pursuant to the Provisions of Section 3363.5 of the Labor Code) and asked what the criteria are for "certain' volunteers. He said volunteers should not be placed in a situation that is unsafe. Mr. Ewing addressed Item D-2 (Resolution No. 43-04 Acknowledging Intention To Sell City - Owned Real Property Located At 220 Atascadero Road, Morro Bay) stating the City should wait on selling this property and consider placing a swimming pool at this site. Lynda Merrill addressed Item A-6 (Resolution No. 47-04 Approving Sublease for a Portion of Lease Site 87-88/87W-88W Located at 833 Embarcadero) and asked if this action will be setting a precedent. She also expressed support for reopening the Bonita Street annex to cover fire services in North Morro Bay. Ms. Merrill stated she would prefer that State Parks biologists oversee the snowy plovers. She also noted the sewer odor still exists in North Morro Bay. Ms. Merrill addressed Item D-2 stating the proposed convention center has become a costly venture, and the City should consider selling that property rather than the 220 Atascadero Road property, which could be used for a swimming pool or new North Morro Bay Fire Station. She expressed support for Item D-3 (Request to Agendize the Discussion on Campaign Expenditure Limits); and ® referred to Item D4 (Request to Agendize the Discussion on Funds for Community M ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 14, 2004 Jerry Switzer addressed his project at Main Street and Quintana Road, and the improvements that are being requested by the City. Norman Risch addressed the benefits of the instant run-off voting method that eliminates run-offs and saves in cost. Gary Ream stated he sent a letter to Council relating to expenditure limits on campaigns and encouraged Council's support. Melody DeMeritt announced her candidacy for City Council. Hershel Parker addressed the snowy plover issue. He urged the City Council to enforce the leash laws at the Rock and the beach north of the Rock all the way to the area around the end of Highway 41 where the state beach starts; as well as the in the streets of the beach tract, Azure parking lot and Cloister's Subdivision. Ed Dumong addressed an incident on a building site behind his house where someone dropped a 12x6 beam on the chair his wife usually sits in. He also said the State Park ® employees are driving a 6-wheel vehicle across the sand spit and yet people are not allowed to walk in that area. Mr. Dumong stated dog owners need special rights to walk their dogs. Roger Ewing addressed Item . A-9 (Resolution No. 44-04 Providing Workers' Compensation Coverage for Certain City Volunteers Pursuant to the Provisions of Section 3363.5 of the Labor Code) and asked what the criteria are for "certain" volunteers. He said volunteers should not be placed in a situation that is unsafe. Mr. Ewing addressed Item D-2 (Resolution No. 43-04 Acknowledging Intention To Sell City - Owned Real Property Located At 220 Atascadero Road, Morro Bay) stating the City should wait on selling this property and consider placing a swimming pool at this site. Lynda Merrill addressed Item A-6 (Resolution No. 47-04 Approving Sublease for a Portion of Lease Site 87-88/87W-88W Located at 833 Embarcadero) and asked if this action will be setting a precedent. She also expressed support for reopening the Bonita Street annex to cover fire services in North Morro Bay. Ms. Merrill stated she would prefer that State Parks biologists oversee the snowy plovers. She also noted the sewer odor still exists in North Morro Bay. Ms. Merrill addressed Item D-2 stating the proposed convention center has become a costly venture, and the City should consider selling that property rather than the 220 Atascadero Road property, which could be used for a swimming pool or new North Morro Bay Fire Station. She expressed support for Item D-3 (Request to Agendize the Discussion on Campaign Expenditure Limits); and ® referred to Item D-4 (Request to Agendize the Discussion on Funds for Community 3 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 14, 2004 Promotions) stating these funds should be re-examined, and no City funds should be used to support candidates for City Council. Stan House addressed Item A-3 (Notice of Completion on RUDAT Downtown Lighting Project) and asked if the old lights can come down. Julianna Epperly asked what the status is on placing benches on Morro Bay Boulevard. John Barta stated the downtown lights did not go before the Planning Commission for review, but did hear that the bollards did not reflect enough light into the intersections and that is why the old lights have remained. Mayor Yates closed the hearing for public comment. DECLARATION OF FUTURE AGENDA ITEMS Councilmember Winholtz requested to agendize an update on water resources. ® Councilmember Elliott requested to agendize the discussion of secondary units in residential areas. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES FOR THE BUDGET WORKSHOP ON MAY 20. 2004, AND THE REGULAR MEETING ON MAY 24, 2004; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 NOTICE OF COMPLETION OF PRIMARY CLARIFIER DRIVE UNIT REPLACEMENT PROJECT; (PUBLIC SERVICES) RECOMMENDATION: Accept project as completed. A-3 NOTICE OF COMPLETION ON RUDAT DOWNTOWN LIGHTING PROJECT; (PUBLIC SERVICES) Is RECOMMENDATION: Accept project as completed. 13 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 14, 2004 A-4 NOTICE OF COMPLETION ON QUINTANA WATER LINE REPLACEMENT PROJECT; (PUBLIC SERVICES) RECOMMENDATION: Accept project as completed. A-5 RESOLUTION NO. 46-04 APPROVING NEW LEASE AGREEMENT FOR LEASE SITE 133W LOCATED AT 1235 EMBARCADERO; (HARBOR) RECOMMENDATION: Adopt Resolution No. 46-04. A-6 RESOLUTION NO. 47-04 APPROVING SUBLEASE FOR A PORTION OF LEASE SITE 87-88/87W-88W LOCATED AT 833 EMBARCADERO; (HARBOR) RECOMMENDATION: This item has been pulled from the agenda. A-7 RESOLUTION NO. 48-04 APPROVING AMENDMENT FOR LEASE SITE 113 W LOCATED ADJACENT TO 1215 EMBARCADERO; (HARBOR) ® RECOMMENDATION: Adopt Resolution No. 48-04. A-8 ADOPTION OF ORDINANCE NO. 502 AMENDING CHAPTER 2.28 OF THE MORRO BAY MUNICIPAL CODE; (CITY ATTORNEY) 11 RECOMMENDATION: Adopt Ordinance No. 502. A-9 RESOLUTION NO. 44-04 PROVIDING WORKERS' COMPENSATION COVERAGE FOR CERTAIN CITY VOLUNTEERS PURSUANT TO THE PROVISIONS OF SECTION 3363.5 OF THE LABOR CODE; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 44-04. A-10 ACCEPTANCE OF LETTERS OF RESIGNATION FROM COMMISSIONER ON THE RECREATION & PARKS COMMISSION AND COMMITTEE MEMBER ON THE COMMUNITY PROMOTIONS COMMITTEE; (ADMINISTRATION) RECOMMENDATION: Accept letters of resignation, and authorize City Clerk to proceed with advertising the vacancies. 5 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 14, 2004 A-11 RESOLUTION NO. 45-04 SUPPORTING THE LOCAL GOVERNMENT BUDGET PACKAGE; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 45-04. A-12 RESOLUTION NO. 37-04 AMENDING COUNCIL POLICIES AND PROCEDURES SECTION 1.3.9.3.5; (CITY ATTORNEY) RECOMMENDATION: Adopt Resolution No. 37-04. Councilmember Winholtz pulled Items A - I, A-8 and A -I I from the Consent Calendar; Councilmember Elliott pulled Item A-9, and Councilmember Peters pulled Item A-10. MOTION: Councilmember Peirce moved the City Council approve the Consent Calendar with the exception of Items A-1, A-8, A-9, A-10 and A-11. The motion was seconded by Councilmember Peters and carried unanimously. (5-0) ® A-1 APPROVAL OF MINUTES FOR THE BUDGET WORKSHOP ON MAY 20. 2004, AND THE REGULAR MEETING ON MAY 24, 2004; (ADMINISTRATION) 1J Councilmember Winholtz requested to correct her statement on page 10 of the May 24, 2004 City Council minutes wherein she states she supports Alternative II and she meant Alternative I. Mayor Yates stated the comment should remain since that was what she said. MOTION: Councilmember Elliott moved the City Council approve Item A-1 on the Consent Calendar. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) A-8 ADOPTION OF ORDINANCE NO. 502 AMENDING CHAPTER 2.28 OF THE MORRO BAY MUNICIPAL CODE; (CITY ATTORNEY) Councilmember Winholtz asked that the Ordinance be amended to say two joint meetings instead of one. MOTION: Councilmember Winholtz moved the City Council approve Item A-8 on the Consent Calendar as amended. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) ll ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — TUNE 14, 2004 A-9 RESOLUTION NO. 44-04 PROVIDING WORKERS' COMPENSATION COVERAGE FOR CERTAIN CITY VOLUNTEERS PURSUANT TO THE PROVISIONS OF SECTION 3363.5 OF THE LABOR CODE; (ADMINISTRATION) Councilmember Elliott asked who is covered under this policy, and what the projected cost are going to be. City Manager Robert Hendrix responded everyone is covered accept those whose involvement is limited. He said costs as a result of claims experience will be calculated and budgeted in future deposits for workers' compensation funding. There should not be a significant impact as the City has received very few, if any, claims from volunteers in recent history. Councilmember Elliott stated he couldn't support this request without more information. He requested Council direct staff to come back with more information on costs, the pros and cons on this type of coverage, and who will be covered under this policy. Council concurred with Councilmember Elliott's request. No further action was taken on this item. A-10 ACCEPTANCE OF LETTERS OF RESIGNATION FROM COMMISSIONER ON THE RECREATION & PARKS COMMISSION AND COMMITTEE MEMBER ON THE COMMUNITY PROMOTIONS COMMITTEE; (ADMINISTRATION) Councilmember Peters wanted to thank Angelyn Miller for her service on the Recreation & Parks Commission, and Heather Fortner for her service on the Community Promotions Committee. MOTION: Councilmember Peters moved the City Council approve Item A-10 on the Consent Calendar. The motion was seconded by Councilmember Elliott and carried unanimously. (5-0) A-11 RESOLUTION NO. 45-04 SUPPORTING THE LOCAL GOVERNMENT. BUDGET PACKAGE; (ADMINISTRATION) Councilmember Winholtz stated she pulled this item in order to get feedback from the other Council Members. Councilmember Elliott stated he is not in support of this resolution because there is no is guarantee that the State will hold up to their end of the bargain. 7 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — JUNE 14, 2004 Councilmember Peters stated this package is better than the ballot initiative that was passed, and this is asking the legislature to support the agreement that the Governor has created with the League of California Cities without change. MOTION: Councilmember Peters moved the City Council approve Item A -I I on the Consent Calendar. The motion died due to a lack of a second. MOTION: Councilmember Winholtz moved the City Council oppose Resolution No. 45-04 supporting the Local Government Budget package. The motion was seconded by Councilmember Elliott and carried with Councilmember Peters voting no. (4-1) Mayor Yates called for a break at 7:30 p.m.; the meeting resumed at 7:50 p.m. B. PUBLIC HEARINGS REPORTS & APPEARANCES ® B-1 APPEAL OF PLANNING COMMISSION APPROVAL ON THE MORRO BAY BOULEVARD/QUINTANA ROAD ROUNDABOUT; (PUBLIC SERVICES) Planning Manager Greig Cummings stated this project is to construct a roundabout to regulate and improve traffic flow at the intersection of Morro Bay Boulevard and Quintana Road. This project was designated by the City Council as the preferred alternative to provide long-term litigation for intersection congestion and numerous developments that have already contributed to the project. He said at a public hearing held May 3, 2004, the Planning Commission made findings required by the California Environmental Quality Act and California Coastal Act; and approved the Coastal Development Act and Special Use Permit. Mr. Cummings noted that if this project is not approved, it will result in losing the grant funding for the project and necessitate returning the funds already collected from the surrounding properties, for prior approvals, that were to go toward the construction of these improvements. He recommended the City Council uphold the decision of the Planning Commission, and deny the appeal. Brenda Agee -Smiley, appellant, stated the owner of ARCO was not notified of this hearing or the Planning Commission hearing. She said she filed this appeal so that the citizens and Council could have more dialogue on this proposed site. Ms. Smiley stated for safety reasons, the City needs to make sure the roundabout does not increase significant safety issues that we have now. She said roundabouts do not favor bicyclists, ® but mostly, vehicles that take a roundabout at a higher than posted speed turns out I ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 14. 2004 disastrous. Ms. Smiley requested the City Council postpone a decision on this roundabout until all questions are answered before a deep financial burden could be placed on the City. Mayor Yates opened the hearing for public comment. Roger Ewing stated he is most concerned with pedestrian safety crossing through the roundabout, which is of utmost importance. He said more deliberation is needed on a project like this. Norman Risch stated he has concern with the design of this roundabout. He said the Planning Commission should reassess this issue. Ray McKelligott expressed his opposition to the roundabout. He said it should go before the vote of the people. Melody DeMeritt stated the roundabout would be confusing to tourists and seniors. She said this project should go at glacial speed and good planning. ® Randy Pod, representing the Domenghini property on Quintana Road, stated the roundabout in Santa Barbara proved to be a safe way through the intersection by motorists and pedestrians. John Barta stated during his review of this project on the Planning Commission, he found that this is a better solution for this intersection. Nancy Johnson stated she encountered roundabouts while traveling in Australia and New Zealand, and they were easy to access. She urged the City Council to support this project. Ken Vesterfelt stated professional engineers designed this roundabout, and the fact that there are no concerned citizens at this public hearing means they are comfortable with it. Mayor Yates closed the public comment hearing. Councilmember Elliott stated the funding for this project is mostly through the Council of Governments and the private developers that placed funds into the system for that intersection. He said the present intersection is dangerous to pedestrians. Councilmember Elliott stated a roundabout is a natural calming device. He expressed support for this project, and denial of the appeal. W ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 14, 2004 UJ Councilmember Peirce stated signalization could be a nightmare at this intersection. He said Council's decision this evening is purely judicial to rule on the appeal. He supports denial of the appeal. Councilmember Peters shared a film of traveling through different roundabouts in Santa Barbara. She supports denial of the appeal. Councilmember Winholtz expressed concern with the size of the proposed roundabout, as well as with safety and signage issues. Mayor Yates stated this is a process that has been ongoing for many years. He said there were many people who spoke in opposition to the Highway 41 roundabout; but there have been very few objections to this roundabout. MOTION: Mayor Yates moved the City Council uphold the decision of the Planning Commission and deny the appeal. The motion was seconded by Councilmember Elliott and carried with Councilmember Winholtz voting Mayor Yates called for a break at 9:00 p.m.; the meeting resumed at 9:15 p.m. C. UNFINISHED BUSINESS —None. D. NEW BUSINESS D-1 AUTHORIZATION FOR RECRUITMENT OF POLICE SUPPORT SERVICES MANAGER; (POLICE) Police Chief John DeRohan stated the Support Services Manager position is one of the most crucial and necessary positions within the Police Department, and there are no other positions within the Department that could assume all the numerous duties of this position. Support Services Manager Joy Elliott has submitted a written memorandum announcing her retirement to be effective September 29, 2004. Due to the numerous duties this position performs, a great deal of transition training with the new recruit will be necessary. Mr. DeRohan recommended the City Council authorize filling the vacancy created by the retirement of the Support Services Manager, approve and adopt the revised job description. Mayor Yates stated he is in opposition due to the budget and hiring freeze that was implemented. He said he understands the importance of this position; however, his opposition is symbolic. 10 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 14, 2004 Councilmember Peters stated this is a position that needs to be filled in order to allow the department to run smoothly. Councilmember Peirce stated he is not willing to lay-off safety employees. Councilmember Elliott stated this is a small City that usually runs with minimum staffing. He said there are certain services that have to be performed for the citizens in this community, and this is not a position that the City can afford to give up. Councilmember Winholtz stated it would be difficult if this position were not filled; however, it would be difficult for any department to run with one less position. MOTION: Councilmember Peirce moved the City Council authorize filling the vacancy created by the retirement of the Support Services Manager, approve and adopt the revised job description. The motion was seconded by Councilmember Peters and carried with Councilmember Winholtz and Mayor Yates voting no. (3-2) ® D-2 RESOLUTION NO. 43-04 ACKNOWLEDGING INTENTION TO SELL CITY - OWNED REAL PROPERTY LOCATED AT 220 ATASCADERO ROAD, MORRO BAY; (CITY ATTORNEY) City Attorney Robert Schultz stated the City purchased the property at 220 Atascadero Road in March 2002. At the time of the purchase, the property was a possible site of a City Teen Center. Other alternative sites have been found and the City finds that it has no need for the above property. Government Code Section 37421 allows for the sale of any City -owned building and/or property by adoption of a resolution of intention to sell City property. The purpose of this resolution is to allow for any person to protest the proposed sale. Mr. Schultz recommended the City Council authorize and adopt Resolution No. 43-04 regarding the City's intention to sell real property owned by the City. Councilmember Winholtz stated she has received calls from concerned citizens who would like the City to maintain this property for a future swimming pool. She noted this procedure is just a formality with no final decision. Councilmember Peters stated this is the ideal location for a swimming pool; however, at this time there is no way the City can financially afford to build a pool. She said this is an option the City needs to pursue. 11 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 14. 2004 Councilmember Peirce stated the City will not be able to afford to build a swimming pool for several years, and also cannot afford to hold on to this property and do nothing with it. This is an appropriate and responsible process in order to maintain the existing services for the community. MOTION: Mayor Yates moved the City Council adopt Resolution No. 43-04 regarding the City's intention to sell real property owned by the City. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) D-3 REQUEST TO AGENDIZE THE DISCUSSION ON CAMPAIGN EXPENDITURE LIMITS; (COUNCIL) Councilmember Peters stated there have been comments recently regarding the increasing costs of City election campaigns. There is concern that some potential candidates may be discouraged from running because they cannot meet the costs. Ms. Peters recommended the City Council discuss and determine whether campaign spending should be limited, and if so, what the limit amounts should be. ® Councilmember Peirce stated the majority of his campaign contributions were from individuals who supported his seat on the Council. He said in a small community such as this, name recognition works just as well as money. 11 Councilmember Elliott stated he does not support this issue. He said there is a number of ways to campaign, and he does not feel it is appropriate to set limits in our community. Councilmember Winholtz stated money speaks, and she would be in support in order to even the playing ground. Councilmember Peters stated she reviewed past campaign expenditure reports; and she found there was not a great difference in funds. She said she does not recommend making any changes at this time. Mayor Yates stated the money would come to those who are supported. No action was taken on this item. 12 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 14, 2004 D-4 REQUEST TO AGENDIZE THE DISCUSSION ON FUNDS FOR COMMUNITY PROMOTIONS; (COUNCIL) Councilmember Winholtz stated her intent in agendizing this topic is to begin the dialogue Council committed itself to during the budget hearings that in the next 12 months to find ways to decrease the budget and/or increase revenues for the 2005-06 budget cycle. Councilmember Elliott stated the Community Promotions Committee gives us the best bang for our buck. He said until he has more information on how to do it more efficiently, he prefers to leave it the way it is. Mayor Yates stated he is pleased with the jobs the Community Promotions Committee, Visitors & Conference Bureau, and the Chamber of Commerce/Visitors Center is performing. Councilmember Peters stated she would be interested in the Request for Proposal process. She said perhaps there are ways of doing things more economical. ® Councilmember Peirce stated as things change, the Community Promotions Committee does try and reach new areas that targets visitors. He said he would prefer to wait for the Request for Proposals to come in to see what they recommend to incorporate the business traveler into this. Councilmember Winholtz stated she would like the Community Promotions Committee to brainstorm and bring suggestions to the City Council. No action was taken on this item. ADJOURNMENT The meeting adjourned at 9:57 p.m. Recorded by: Bndgett Bauer City Clerk 13 ® City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life. The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING — MAY 24, 2004 CLOSED SESSION — MAY 24, 2004 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA CS-1 GOVERNMENT CODE SECTION 54956.9(C): CONFERENCE ® WITH LEGAL COUNSEL DUE TO ANTICIPATED LITIGATION. Initiation of An Administrative Appeal exists based upon existing facts and the advice of legal counsel as to one (1) matter: CS-2 City of Morro Bay vs. Federal Emergency Management Agency TRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property as to two (2) parcels. Property: 220 Atascadero Road Negotiating Parties: The City of Morro Bay Negotiations: Sale Terms and Conditions. Property: Embarcadero & Harbor Negotiating Parties: Hartzell & City of Morro Bay Negotiations: Purchase Terms and Conditions. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ® ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. ® PUBLIC SESSION — MAY 24, 2004 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCILMEMBERS ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period, the following rules shall be followed: • When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments are to be limited to three minutes. • .All remarks shall be addressed to Council, as a whole, and not to any ® individual member thereof. • The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or staff. • Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering. • Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting. • Your participation in City Council meetings is welcome and your courtesy will be appreciated. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 772-6205. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS 2 ® A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES FOR THE REGULAR MEETINGS ON MAY 10, 2004; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 INVESTMENT REPORT — APRIL 2004; (FINANCE) RECOMMENDATION: Receive report for information. A-3 RESOLUTION NO. 35-04 AUTHORIZING FINANCE DIRECTOR TO SIGN MUTUAL SHARING OF DATA AGREEMENT FOR BUSINESS LICENSE INFORMATION WITH CALIFORNIA FRANCHISE TAX BOARD; (FINANCE) RECOMMENDATION: Adopt Resolution No. 35-04. A4 RESOLUTION NO. 36-04 APPROVING MORRO BAY GARBAGE SERVICE INTERIM YEAR RATE ADJUSTMENT APPLICATION REQUESTING AN is INCREASE TO SOLID WASTE COLLECTION RATES; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 36-04. A-5 TOURISM STUDY SELECTION COMMITTEE RECOMMENDED REVIEW PROCESS; (PUBLIC SERVICES) RECOMMENDATION: Direct staff to form an advisory committee to review tourism study proposals and recommend a tourism/marketing consultant to the City Council. A-6 ADOPTION OF MITIGATED NEGATIVE DECLARATION FOR WATERFRONT BOARDWALK PROJECT; (PUBLIC SERVICES) RECOMMENDATION: Approve the Final Mitigated Negative Declaration for the project. A-7 RESOLUTION NO. 37-04 AMENDING CITY COUNCIL'S POLICIES AND PROCEDURES REGARDING SPEAKER SIGN -IN GUIDELINES DURING PUBLIC COMMENT AND PUBLIC HEARINGS; (CITY ATTORNEY) ® RECOMMENDATION: Adopt Resolution No. 37-04. 3 ® A-8 RESOLUTION NO. 38-04 APPROVING ASSIGNMENT OF LEASE AGREEMENT FOR LEASE SITE 50-51/50W-51 W (495 EMBARCADERO) FROM ASSOCIATED PACIFIC CONSTRUCTORS INC. TO REG. WHIBLEY AS AN INDIVIDUAL; (HARBOR) RECOMMENDATION: Adopt Resolution No. 38-04. A-9 RESOLUTION NO. 39-04 APPROVING A SUBLEASE AGREEMENT WITH TROY LEAGE ON LEASE SITE 122W-123W (HARBOR HUT - 1205 EMBARCADERO) FOR OPERATION OF LIL HUT TAKE OUT FOOD RESTAURANT ON A PORTION OF THE SITE; (HARBOR) RECOMMENDATION: Adopt Resolution No. 39-04. B. PUBLIC HEARINGS REPORTS & APPEARANCES B-1 ORDINANCE NO. 502 AMENDING SECTION 2.28.120(D) OF CHAPTER 2.28 OF THE MORRO BAY MUNICIPAL CODE - FIRST READING/ INTRODUCTION; (CITY ATTORNEY) RECOMMENDATION: Approve first reading and introduction of Ordinance No. 502. ® B-2 RESOLUTION NO. 40-04 APPROVING THE ENGINEERS REPORT AND DECLARING THE CITY'S INTENTION TO LEVY THE ANNUAL ASSESSMENT FOR THE MAINTENANCE OF THE CLOISTER'S PARK AND OPEN SPACE; (RECREATION & PARKS) C RECOMMENDATION: Adopt Resolution No. 40-04. B-3 RESOLUTION NO. 41-04 APPROVING THE ENGINEERS REPORT AND DECLARING THE CITY'S INTENTION TO LEVY THE ANNUAL ASSESSMENT FOR THE MAINTENANCE OF NORTH POINT NATURAL AREA; (RECREATION & PARKS) RECOMMENDATION: Adopt Resolution No. 41-04. C. UNFINISHED BUSINESS CA REPORT AND RECOMMENDATIONS OF THE EMERGENCY SERVICES AD -HOC COMMITTEE ON FUTURE SERVICE NEEDS; (FIRE) RECOMMENDATION: Receive report for information. 13 ® D. NEW BUSINESS D-I RESOLUTION NO. 42-04 ADOPTING POLICY REQUIRING THE FINANCE DEPARTMENT TO PROVIDE THE CITY COUNCIL WITH THE BUDGET DOCUMENT AT LEAST SEVEN DAYS BEFORE THE FIRST BUDGET MEETING; (CITY COUNCIL) RECOMMENDATION: Adopt Resolution No. 42-04. D-2 DISCUSSION ON STREAMING THE CITY COUNCIL MEETING VIDEO ON THE INTERNET,- (CITY COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. D-3 DISCUSSION ON INCREASING SEWER RATES; (CITY COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. D-4 DISCUSSION ON MORRO BAY SENIOR INSURANCE; (CITY COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. ® E. ADJOURNMENT C THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TIME SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 772-6200 FOR FURTHER INFORMATION. COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST AT CITY HALL, LIBRARY, AND MILLS STATIONERY. IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. F] MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION — MAY 24, 2004 ® CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Yates called the meeting to order at 5:00 p.m. PRESENT: William Yates Mayor Dave Elliott Councilmember William Peirce Councilmember Janice Peters Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix City Manager Robert Schultz City Attorney CLOSED SESSION MOTION: Councilmember Peirce moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Peters and unanimously carried. (5-0) Mayor Yates read the Closed Session Statement. CS-1 GOVERNMENT CODE SECTION_ 54956.9(C); CONFERENCE is LITIGATION. LEGAL COUNSEL DUE TO ANTICIPATED LITIGATION. Initiation of An Administrative Appeal exists based upon existing facts and the advice of legal counsel as to one (1) matter: • City of Morro Bay vs. Federal Emergency Management Agency CS-2 GOVERNMENT CODE SECTION 54956.8; REAL PROPERTY TRANSACTIONS. Instructing City's real property negotiator regarding. the price and terms of payment for the purchase, sale, exchange, or lease of real property as to two (2) parcels. • Property: 220 Atascadero Road Negotiating Parties: The City of Morro Bay Negotiations: Sale Terms and Conditions. Property: Embarcadero & Harbor Negotiating Parties: Hartzell & City of Morro Bay Negotiations: Purchase Terms and Conditions. The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:50 p.m. MOTION: Councilmember Peirce moved the meeting be adjourned. The motion was ® seconded by Councilmember Peters and unanimously carried. (5-0) The meeting adjourned at 5:50 p.m. El 1 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 24, 2004 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Yates called the meeting to order at 6:00 p.m PRESENT: William Yates Mayor Dave Elliott Councilmember William Peirce Councilmember Janice Peters Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix Robert Schultz Bridgett Bauer Bill Boucher Janeen Burlingame Rick Algert Bruce Ambo John DeRohan Mike Pond Jim Koser Andrea Lueker City Manager City Attorney City Clerk Capital Project Manager Management Analyst Harbor Director Public Services Director Police Chief Fire Chief Finance Director Recreation & Parks Director ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR'S REPORTS & ANNOUNCEMENTS CLOSED SESSION REPORT - City Attorney Robert Schultz reported the City Council met in Closed Session, and no reportable action under the Brown Act was taken. PUBLIC COMMENT Ken Vesterfelt stated public safety should stay intact within the budget. Mr. Vesterfelt also announced his candidacy for City Council. Peggy Lipe commended the City for placement of the recycled rubber sidewalk modules. Betty Forsythe, Friends of the Library, announced the summer programs at the library. Hershel Parker stated the snowy plover issue is not just about dogs. He said the decision by State Parks to ban dogs was a relief to many elderly people. Mr. Parker stated there should be dogcatchers in the surrounding area of the rock. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 24, 2004 Roger Ewing addressed Item D-4 (Discussion of Mono Bay Senior Insurance) and encouraged the City's support in assisting the seniors with their insurance payment. Beth Salzberg, representative of the Seniors Center, stated they raise money in various ways to assist various organizations. She requested assistance from the City to assist with their insurance payment. Eleanor Walt, representative of the Seniors Center, also requested assistance from the City to assist with their insurance payment. Frank Devine stated he would be pursuing a resolution to the safety hazard regarding the drainage problem on Juniper Avenue. He requested the City Council place this issue on the agenda for discussion. David Nelson agreed the City should help the seniors with their insurance. He said Duke should clear the whole debt with the City. Mr. Nelson stated the Cloisters Subdivision was approved with the knowledge of an assessment district. ® Melody DeMeritt, Public Works Advisory Board Member, addressed Item A-4 .(Resolution No. 36-04 Approving Mono Bay Garbage Service Interim Year Rate Adjustment Application Requesting an Increase to Solid Waste Collection Rates) and asked why this item is being reviewed by the City Council prior to the review of the Public Works Advisory Board. As a resident, she would like to know why it is not a public hearing, and noted higher garbage rates should be placed on high trash users. C Kim Kimball, Executive Director of the Chamber of Commerce, gave an update on the 4a' of July festivities. Steve Mathieu, AGP Video, announced "Art in the Park" would be held this weekend. He addressed Item D-2 (Discussion on Streaming the City Council Meeting Video on the Internet) and stated he agrees with staff recommendation to not pursue it at this time; however, keep the door open and allow AGP Video the potential of bringing forward a proposal. Mayor Yates closed the hearing for public comment. DECLARATION OF FUTURE AGENDA ITEMS Councilmember Peters requested to agendize the discussion on campaign expenditure limits; Councilmember Winholtz expressed support for this item. 3 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 24, 2004 Mayor Yates requested to agendize the discussion on the Juniper Street drainage issue. Councilmember Winholtz requested to agendize the consideration of funds for Community Promotions. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES FOR THE REGULAR MEETINGS ON MAY 10, 2004; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 INVESTMENT REPORT — APRIL 2004; (FINANCE) RECOMMENDATION: Receive report for information. ® A-3 RESOLUTION NO. 35-04 AUTHORIZING FINANCE DIRECTOR TO SIGN MUTUAL SHARING OF DATA AGREEMENT FOR BUSINESS LICENSE INFORMATION WITH CALIFORNIA FRANCHISE TAX BOARD: (FINANCE) C� RECOMMENDATION: Adopt Resolution No. 35-04. A4 RESOLUTION NO. 36-04 APPROVING MORRO BAY GARBAGE SERVICE INTERIM YEAR RATE ADJUSTMENT APPLICATION REQUESTING AN INCREASE TO SOLID WASTE COLLECTION RATES; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 36-04. A-5 TOURISM STUDY SELECTION COMMITTEE RECOMMENDED REVIEW PROCESS; (PUBLIC SERVICES) RECOMMENDATION: Direct staff to form an advisory committee to review tourism study proposals and recommend a tourism/marketing consultant to the City Council. 4 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 24. 2004 A-6 ADOPTION OF MITIGATED NEGATIVE DECLARATION FOR WATERFRONT BOARDWALK PROJECT; (PUBLIC SERVICES) RECOMMENDATION: Approve the Final Mitigated Negative Declaration for the project. A-7 RESOLUTION NO. 37-04 AMENDING CITY COUNCIL'S POLICIES AND PROCEDURES REGARDING SPEAKER SIGN -IN GUIDELINES DURING PUBLIC COMMENT AND PUBLIC HEARINGS; (CITY ATTORNEY) RECOMMENDATION: Adopt Resolution No. 37-04. A-8 RESOLUTION NO. 38-04 APPROVING ASSIGNMENT OF LEASE AGREEMENT FOR LEASE SITE 50-51/50W-51 W (495 EMBARCADERO) FROM ASSOCIATED PACIFIC CONSTRUCTORS INC. TO REG. WHIBLEY AS AN INDIVIDUAL; (HARBOR) RECOMMENDATION: Adopt Resolution No. 38-04. ® A-9 RESOLUTION NO. 39-04 APPROVING A SUBLEASE AGREEMENT WITH TROY LEAGE ON LEASE SITE 122W-123W (HARBOR HUT - 1205 EMBARCADERO) FOR OPERATION OF LIL HUT TAKE OUT FOOD RESTAURANT ON A PORTION OF THE SITE; (HARBOR) RECOMMENDATION: Adopt Resolution No. 39-04. Councilmember Elliott pulled Item A-4 from the Consent Calendar; Councilmember Winholtz pulled Items A-5, A-6, A-7, A-8 and A-9. MOTION: Councilmember Peirce moved the City Council approve Items A-1, A-2 and A-3 of the Consent Calendar. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) A-4 RESOLUTION NO. 36-04 APPROVING MORRO BAY GARBAGE SERVICE INTERIM YEAR RATE ADJUSTMENT APPLICATION REQUESTING AN INCREASE TO SOLID WASTE COLLECTION RATES; (ADMINISTRATION) Councilmember Elliott stated the contract between Morro Bay Garbage and the City allows for a rate adjustment. E MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 24, 2004 MOTION: Councilmember Elliott moved the City Council approve Item A-4 of the Consent Calendar. The motion was seconded by Mayor Yates and carried unanimously. (5-0) A-5 TOURISM STUDY SELECTION COMMITTEE RECOMMENDED REVIEW PROCESS; (PUBLIC SERVICES) Councilmember Winholtz stated she supports providing an assessment of City opportunities, resources, constraints and limitations for developing a more significant visitor market appeal including both conventional tourist visitors and group meetings. Council expressed concern with having two members who are both in the hotel industry serving on the RFP Review Committee. MOTION: Mayor Yates moved the City Council approve Item A-5 of the Consent Calendar; and, direct staff to reselect another Community Promotions Committee Member who represents other than the hotel/motel industry. The motion was seconded by Councilmember Peirce and carried ® unanimously. (5-0) A-6 ADOPTION OF MITIGATED NEGATIVE DECLARATION FOR WATERFRONT BOARDWALK PROJECT; (PUBLIC SERVICES) Councilmember Winholtz requested staff clarification on the scope of work on this project. Capital Project Manager Bill Boucher stated this Mitigated Negative Declaration does not define the project itself. He said the project that will be proposed would go through the use permit process through the Planning Commission, and ultimately to the Coastal Commission. Councilmember Winholtz stated her concern with this approval is the City is not protecting those things that need to be protected. MOTION: Councilmember Elliott moved the City Council approve Item A-6 of the Consent Calendar. The motion was seconded by Councilmember Peirce and carried with Councilmember Winholtz voting no. (4-1) L' ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 24, 2004 A-7 RESOLUTION NO. 37-04 AMENDING CITY COUNCIL'S POLICIES AND PROCEDURES REGARDING SPEAKER SIGN -IN GUIDELINES DURING PUBLIC COMMENT AND PUBLIC HEARINGS; (CITY ATTORNEY) Councilmember Winholtz stated her intent was to receive written names and addresses from the public for Coastal Commission items. Councilmember Peirce stated there is concern of some citizens that writing their addresses would take away the confidentiality of where they live. Mayor Yates recommended changing the word "shall" to "request". Councilmember Peters suggested language change to "shall be requested to". She also suggested a sign -in sheet be placed at the back of the room. Staff was directed to make the language change to Resolution No. 37-04, and return to Council for approval. ® A-8 RESOLUTION NO. 38-04 APPROVING . ASSIGNMENT OF LEASE AGREEMENT FOR LEASE SITE 50-51/50W-51 W (495 EMBARCADERO) FROM ASSOCIATED PACIFIC CONSTRUCTORS INC. TO REG. WHIBLEY AS AN INDIVIDUAL; (HARBOR) Councilmember Winholtz expressed concern with splitting up the two properties. MOTION: Mayor Yates moved the City Council approve Item A-8 of the Consent Calendar. The motion was seconded by Councilmember Peirce and carried with Councilmember Winholtz voting no. (4-1) A-9 RESOLUTION NO. 39-04 APPROVING A SUBLEASE AGREEMENT WITH TROY LEAGE ON LEASE SITE 122W-123W (HARBOR HUT - 1205 EMBARCADERO) FOR OPERATION OF LIL HUT TAKE OUT FOOD RESTAURANT ON A PORTION OF THE SITE; (HARBOR) Councilmember Winholtz expressed concern with the tenant not following the contract with the City since they took over operation of the Lil Hut in February 2004 without Council approval. MOTION: Councilmember Elliott moved the City Council approve Item A-9 of the Consent Calendar. The motion was seconded by Councilmember Peters ® and carried unanimously. (5-0) 7 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 24, 2004 Mayor Yates called for a break at 7:05 p.m.; the meeting resumed at 7:15 p.m. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 ORDINANCE NO. 502 AMENDING SECTION 2.28.120(D) OF CHAPTER 2.28 OF THE MORRO BAY MUNICIPAL CODE - FIRST READING/ INTRODUCTION; (CITY ATTORNEY) City Attorney Robert Schultz stated during the joint City Council/Planning Commission meeting of December 1, 2003, the topic of the frequency of joint City Council/Planning Commission meetings was discussed. Thereafter, on January 12, 2004, the City Council directed staff to bring back an ordinance amendment to Section 2.28.020 to allow for annual meetings with the Planning Commission. Mr. Schultz recommended the City Council move for introduction and first reading of Ordinance No. 502, by number and title only, amending Morro Bay Municipal Code Section 2.28.020(D). Mayor Yates opened the hearing for public comment. ® Roger Ewing stated he supports having two joint meetings of the City Council and Planning Commission because of the great benefit to the public. Mayor Yates closed the public comment hearing. Councilmember Peirce stated he supports the ordinance amendment. He said another meeting could be scheduled if needed. Councilmember Peters agreed noting it was sometimes difficult meeting once a year. She said she would like to see an agenda for more productive meetings. Councilmember Winholtz stated she would prefer to maintain the,two joint meetings. Councilmember Elliott stated the two bodies should meet more often, perhaps quarterly. He said the City should establish dates for two meetings per year. Mayor Yates stated he supports the amendment. 0 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 24. 2004 MOTION: Councilmember Peters moved the City Council approve Ordinance No. 502 for first reading and introduction by amending Section2.28.120(D) of Chapter 2.28 of the Morro Bay Municipal Code, with the amendment that the City Council and Planning Commission will meet twice annually; and, the City Clerk shall in January of each year bring forth an agenda item to the City Council to schedule two joint meetings. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) City Manager Robert Hendrix read Ordinance No. 502 by number and title only. B-2 RESOLUTION NO. 40-04 APPROVING THE ENGINEERS REPORT AND DECLARING THE CITY'S INTENTION TO LEVY THE ANNUAL ASSESSMENT FOR THE MAINTENANCE OF THE CLOISTER'S PARK AND OPEN SPACE; (RECREATION & PARKS) Recreation & Parks Director Andrea Lueker stated as part of the annual assessment process, staff s required to provide an Engineers Report, which is an estimate of costs for the maintenance of the Cloisters Park and. Open Space for fiscal year 2004/05. The cost ® estimates are based on the maintenance standards currently adhered to in the existing parks within Morro Bay and included in the Flat Rate Manual for Parks Maintenance, as well as maintenance costs incurred to date. Based on the Engineers Report, which estimates the annual costs of maintaining the Cloisters Park and Open Space for the upcoming year, the fiscal impact is estimated at $148,944. These costs will be offset by the collection of an assessment for the same amount from the parcel owners in the Cloisters Subdivision. However, it is noted in the staff report that to maintain the area to the current standard, additional funds are necessary. Ms. Lueker recommended the City Council adopt Resolution No. 40-04 declaring the intent to levy the annual assessment for the maintenance of the Cloisters Park and Open Space and approving the Engineers Report. L Mayor Yates opened the hearing for public comment. David Nelson expressed support for keeping up the maintenance of this park. John Laufler stated this assessment district has legal problems. He said this was a temporary assessment while the Cloister's was built and was to be funded through the general fund. He requested the Council oppose this district; or a lawsuit will be pursued. Roger Ewing stated this assessment was set by contract, and was willingly signed by the property owners for the right to live there. 6 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 24.2004 Rodger Anderson stated he was on the City Council when this assessment district was voted in. He said the cost -sharing proposal seems like a fair way to go. John Barta stated these are public parks that benefit everyone, and everyone should share the expense of the park. Stan House stated the alternatives are to cut back on the maintenance of the park or pull money from the general fund. He said a deal is a deal, and the City should maintain this assessment district. Mayor Yates closed the public comment hearing. Councilmember Peirce stated the park would not be maintained at the level it is today without the assessment. He said if Council approved anything but Alternative II (Cost Transfer); the City would not be keeping their promise to the homeowners that the City would maintain the park in the future. Councilmember Peters stated it's the principle of signing the agreement with the ® understanding that it was in perpetuity not a short-term agreement. She said she would be in support if 100% of the homeowners found an alternative plan. Mayor Yates stated it would take 100% of the homeowners to change this contract. He said he doesn't like the idea of reducing services at the other parks to maintain the current level of service at Cloisters. Mayor Yates stated he does not support assessment districts because they benefit the whole community. Councilmember Winholtz stated she supports Alternative II (Cost Transfer). Councilmember Elliott stated he does not support this assessment district. MOTION: Councilmember Peters moved the City Council adopt Resolution No. 40-04 declaring the intent to levy the annual assessment for the maintenance of the Cloisters Park and Open Space and approving the Engineers Report. The motion was seconded by Councilmember Winholtz and carried with Councilmember Elliott and Mayor Yates voting no. (3-2) MOTION: Councilmember Peirce moved the City Council direct staff to implement Alternative II (Cost Transfer) in the funding of the maintenance of the Cloisters Park and Open Space. The motion was seconded by Councilmember Peters and carried with Councilmember Winholtz voting ® no. (4-1) 10 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 24, 2004 B-3 RESOLUTION NO. 41-04 APPROVING THE ENGINEERS REPORT AND DECLARING THE CITY'S INTENTION TO LEVY THE ANNUAL ASSESSMENT FOR THE MAINTENANCE OF NORTH POINT NATURAL AREA; (RECREATION & PARKS) Recreation & Parks Director Andrea Lueker stated as part of the annual assessment process, staff is required to provide an Engineers Report, which is an estimate of costs for maintenance of the North Point Natural Area. The cost estimates are based on the maintenance standards currently adhered to in the existing parks within Morro Bay and included in the Flat Rate Manual for Parks Maintenance, as well as maintenance costs from the current fiscal year. The estimate for the maintenance of the North Point Natural Area is $5,645 or $564.50 per parcel for the fiscal year 2004/05. Ms. Lueker recommended the City Council adopt Resolution No. 41-04 declaring the intent to levy the annual assessment for the maintenance of the North Point Natural Area and approving the Engineers Report. Mayor Yates opened the hearing for public comment; there being no comments, Mayor is Yates closed the public comment hearing. MOTION: Councilmember Peters moved the City Council adopt Resolution No. 41- 04 declaring the intent to levy the annual assessment for the maintenance of the North Point Natural Area and approving the Engineers Report. The motion was seconded by Councilmember Winholtz and carried with Councilmember Elliott and Mayor Yates voting no. (3-2) Mayor Yates called for a break at 8:40 p.m.; the meeting resumed at 8:55 p.m. C. UNFINISHED BUSINESS C-I REPORT AND RECOMMENDATIONS OF THE EMERGENCY SERVICES AD -HOC COMMITTEE ON FUTURE SERVICE NEEDS; (FIRE) Stan House, Chairman of the Ad -Hoc Emergency Services Committee reported on the goals of the Committee. Fire Chief Mike Pond stated Jim Hunt of Hunt and Associates, began research for a document to assist the City of Morro Bay in identifying fire and emergency service needs related to the Duke Power Plant and impacts of the construction of a new facility. This plan eventually became the basis for a document now called the Morro Bay Fire Department 5 ® Year Strategic Plan. A draft of this plan was presented to the Ad -Hoc Emergency Services 11 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 242 2004 Committee for review in March 2004. The Committee found that it included many of the same conclusions reached by the Committee and received support for adoption. The Ad - Hoc Emergency Services recommended the adoption of the Morro Bay Fire Department 5 Year Strategic Plan as written by Hunt and Associates. This plan will guide the Fire Department with stated objectives and recommendations to be accomplished over the next five years; and, direct staff to hold two community workshops, one during the day and one in the evening, in conjunction with the Emergency Services Committee Workshops that will provide information to the public and allow feedback regarding response times, staffing levels, fire stations locations, funding, and fire safe engineering. Councilmember Peirce stated the City should educate the public so they understand what needs to be done. He said the City has the busiest single fire station in two counties, and the number of simultaneous calls is growing. Councilmember Peirce stated he supports the concept of the City having two fire stations because he feels everyone in the community deserves equal protection of their lives. Councilmember Peters stated it is important for the community to be informed on this issue. She said the issue is not where to locate another fire station, but how to fund the support ® staff, and the community should be a part of that decision. Councilmember Peters stated public workshops would be vital to this whole situation to have the community on board and decide what they want. ,]1 Councilmember Winholtz requested information from the Fire Chief on the '`other' calls, other than medical, that the Fire Department is called out on. She also asked about the jurisdiction of the Morro Bay Fire Department. Councilmember Elliott stated this is not an issue to be avoided. He said five minutes is too long to wait for the arrival of fire personnel in an emergency. Councilmember Elliott expressed full support of two fire facilities with staffing to do the job that needs to be done. Mayor Yates stated he is supportive of accepting the report, endorsing the workshops, and also agendizing the funding source. MOTION: Councilmember Peters moved the City Council accept the Morro Bay Fire Department 5 Year Strategic Plan written by Hunt and Associates, and endorsing the public workshops. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) 12 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 242 2004 MOTION: Councilmember Peirce moved the City Council inform the Ad -Hoc Emergency Services Committee and staff that preferences are for two fire stations (north and south) with minimum funding of four personnel on each shift; and, direct staff to bring back information on implementing a second fire station by July 12, 2004. The motion was seconded by Mayor Yates and carried unanimously. (5-0) D. NEW BUSINESS D-1 RESOLUTION NO. 42-04 ADOPTING POLICY REQUIRING THE FINANCE DEPARTMENT TO PROVIDE THE CITY COUNCIL WITH THE BUDGET DOCUMENT AT LEAST SEVEN DAYS BEFORE THE FIRST BUDGET MEETING; (CITY COUNCIL) Mayor Yates stated the City Council needs some time in order to effectively study the budget document. This year Council received the budget document three days prior to the budget hearing, which was not enough time to study, digest and reflect on the budget. Mayor Yates submitted that Council needs at least one week in order to fully explore a ® proposed budget; therefore, he recommended the City Council adopt Resolution No. 42- 04 adopting a policy requiring the Finance Department to provide the City Council with the budget document at least seven days before the first budget meeting. MOTION: Mayor Yates moved the City Council adopt Resolution No. 42-04 adopting policy requiring the Finance Department to provide the City Council with the budget document at least seven days before the first budget meeting. The motion was seconded by Councilmember Peters and carried unanimously. (5-0) D-2 DISCUSSION ON STREAMING THE CITY COUNCIL MEETING VIDEO ON THE INTERNET; (CITY COUNCIL) Councilmember Peirce requested this item under Future Agenda Items at the May 10, 2004 City Council meeting. He said his intent is for all citizens to be able to watch the City Council meetings on their computers. Based on a memorandum received from AGP Video, he suggests the City wait to see what AGP Video comes up with to do this economically. No further action was taken on this item. 1 LJ 13 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 24, 2004 D-3 DISCUSSION ON INCREASING SEWER RATES; (CITY COUNCIL) Councilmember Winholtz requested this item under Future Agenda Items at the May 10, 2004 City Council meeting. She stated this item should be postponed for one month so it will coincide with other issues the City Council will be reviewing. No action was taken on this item. D4 DISCUSSION ON MORRO BAY SENIOR INSURANCE; (CITY COUNCIL) Mayor Yates stated in a January letter to the Recreation and Parks Department, Morro Bay Senior Citizens, Inc. requested the City's help with their insurance premium. At the May 6'h budget meeting, a representative spoke to the City Council expressing frustration that the City had not addressed the problem. Mayor Yates stated at that meeting he promised the Seniors' representative that the City Council would address it; consequently this agenda item. Due to Councilmember Elliott's contribution of $2,000 for the Morro Bay Senior's ® Insurance, this item is moot. E. ADJOURNMENT The meeting adjourned at 10:18 p.m. Recorded by: Bridgett Bauer City Clerk U 14 NOTICE OF BUDGET WORKSHOP NOTICE IS HEREBY GIVEN that the Morro Bay City Council will be holding a Budget Workshop on Thursday, May 20, 2004 at 6:00 a.m. to be held in the Community Center Multi Purpose Room, 1001 Kennedy Way, Morro Bay, California. The City Council will be reviewing the proposed budget for fiscal year 2004-2005, and reviewing the policy relating to budget resolution in regard to authority to transfer appropriations. ® DATED: May 17, 2004 I ® MINUTES - MORRO BAY CITY COUNCIL BUDGET WORKSHOP — MAY 20. 2004 MORRO BAY COMMUNITY CENTER - 6:00 P.M. Mayor Yates called the meeting to order at 6:00 p.m PRESENT: William Yates Mayor Dave Elliott Councilmember William Peirce Councilmember Janice Peters Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix City Manager Jim Koser Finance Director MOTION: Councilmember Elliott moved the City Council approve the budget as proposed by staff; direct the City Manager to work with each department head for ways to reduce their individual budgets, and if possible, increase revenues, and to report back to the City Council within six months; and, all vacant personnel positions are to be brought before the City Council to determine if they should be filled during this budget cycle. The motion ® was seconded by Councilmember Peters and carried with Mayor Yates voting no. (4-1) The meeting adjourned at 8:30 p.m. 2 ® NOTICE OF SPECIAL MEETING NOTICE IS HEREBY GIVEN that the Morro Bay City Council will be holding a Special Closed Session Meeting on Tuesday, May 18, 2004 at 5:00 a.m. to be held in the City Hall Conference Room, 595 Harbor Street, Morro Bay, California. Item: u The City Council will be discussing the following Closed Session GOVERNMENT CODE SECTION 54956.9(C); CONFERENCE LITIGATION. Initiation of legal action exists based upon existing facts and the advice of legal counsel as to one (1) matter: City of Morro Bay vs. California Department of Parks and Recreation DATED: May 17, 2004 Bridgett B er, City Clerk n LJ ® City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life. The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING — MAY 10, 2004 CLOSED SESSION — MAY 10, 2004 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA CS-1 GOVERNMENT CODE SECTION 54956.9(A); PENDING LITIGATION. ® Conference with Legal Counsel Regarding Pending Litigation: Skaff vs. City of Morro Bay; USDC 02-6790 CS-2 GOVERNMENT CODE SECTION 54956.8; REAL PROPERTY TRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property as to one (1) parcel. Property: Embarcadero & Harbor Negotiating Parties: Hartzell & City Negotiations: Purchase Terms and Conditions. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. 11 ® PUBLIC SESSION — MAY 10, 2004 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCILMEMBERS ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period. the following rules shall be followed: • When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments are to be limited to three minutes. ® • All remarks shall be addressed to Council, as a whole, and not to any individual member thereof. • The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or staff. • Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering. • Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting. • Your participation in City Council meetings is welcome and your courtesy will be appreciated. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 772-6205. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS 11 2 ® A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A -I APPROVAL OF MINUTES FOR THE REGULAR MEETING ON APRIL 26, 2004; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 APPROVAL OF AMENDMENT TO THE COOPERATIVE AGREEMENT WITH SAN LUIS OBISPO COUNCIL OF GOVERNMENTS FOR THE URBAN STATE HIGHWAY CAPITAL IMPROVEMENT PROGRAM; (PUBLIC SERVICES) RECOMMENDATION: Approve the amendment to the Cooperative Agreement. A-3 APPROVAL TO BEGIN FIRE CAPTAIN RECRUITMENT; (FIRE) RECOMMENDATION: Authorize the recruitment for the currently vacant Fire Captain/Paramedic position and for the anticipated vacancy in October due to retirement of a long-term Fire Captain. A4 DESIGNATION OF COUNCILMEMBER JANICE PETERS AS THE VOTING is DELEGATE DURING THE LOCAL LEGISLATIVE ACTION DAYS; (ADMINISTRATION) RECOMMENDATION: Designate Councilmember Peters as the Voting Delegate during the Local Legislative Action Days. B. PUBLIC HEARINGS. REPORTS & APPEARANCES —NONE. C. UNFINISHED BUSINESS C-1 RESOLUTION NO. 34-04 ADOPTING SPECIAL ENCRAOCHMENT PERMIT POLICIES; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 34-04. C-2 DISCUSSION OF REORGANIZATION OF FACILITIES DIVISION FROM THE RECREATION & PARKS DEPARTMENT TO THE PUBLIC SERVICES DEPARTMENT; (ADMINISTRATION) RECOMMENDATION: Discuss and direct staff accordingly. E 11 C-3 APPROVAL OF POLICY RELATING TO BUDGET RESOLUTION IN REGARD TO AUTHORITY TO TRANSFER APPROPRIATIONS; (CITY ATTORNEY) RECOMMENDATION: Discuss and direct staff accordingly. C4 DISCUSSION AND APPROVAL OF 4T" OF JULY PERMIT CONDITIONS; (CITY ATTORNEY) RECOMMENDATION: Approve the Temporary Event Conditions for the 4`h of July Fireworks Show. D. NEW BUSINESS D-I DISCUSSION OF USING THE FRONT STREET PARKING LOT OR ANOTHER LOCATION FOR LIMITED RV PARKING DURING THE SUMMER MONTHS; (HARBOR) RECOMMENDATION: Discuss and direct staff accordingly. E. ADJOURNMENT THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TIME SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 772-6200 FOR FURTHER INFORMATION. COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST AT CITY HALL, LIBRARY, AND MILLS STATIONERY. IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. 9 ® MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION — MAY 10, 2004 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Yates called the meeting to order at 5:00 p.m PRESENT: William Yates Mayor Dave Elliott Councilmember William Peirce Councilmember Janice Peters Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix City Manager Robert Schultz City Attorney CLOSED SESSION MOTION: Councilmember Peirce moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Peters and unanimously carried. (5-0) Mayor Yates read the Closed Session Statement. ® CS-1 GOVERNMENT CODE SECTION 54956.9(A); Conference with Legal Counsel Regarding Pending CS-2 Skaff vs. City of Morro Bay; USDC 02-6790 TRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property as to one (1) parcel. Property: Embarcadero & Harbor Negotiating Parties: Hartzell & City Negotiations: Purchase Terms and Conditions. The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:53 p.m. MOTION: Councilmember Peirce moved the meeting be adjourned. The motion was seconded by Councilmember Winholtz and unanimously carried. (5-0) ,1 The meeting adjourned at 5:53 p.m. Cl ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 10, 2004 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Yates called the meeting to order at 6:00 p.m. PRESENT: William Yates Mayor Dave Elliott Councilmember William Peirce Councilmember Janice Peters Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix Robert Schultz Bridgett Bauer Rick Algert Bruce Ambo Bill Boucher Frank Cunningham John DeRohan Mike Pond Jim Koser Andrea Lueker u City Manager City Attorney City Clerk Harbor Director Public Services Director Capital Projects Manager City Engineer Police Chief Fire Chief Finance Director Recreation & Parks Director ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR'S REPORTS & ANNOUNCEMENTS CLOSED SESSION REPORT - City Attorney Robert Schultz reported the City Council met in Closed Session, and no reportable action under the Brown Act was taken. PUBLIC COMMENT The following people requested the City Council continue their consideration of an off - leash dog park in Morro Bay: Jim Kosvanec, Gena Marie Gone, Anita Ayoob, Virginia Hannigan, Barbara Good, Kim Bird, Ronnie Smith, Jane von Keohe, Joe Hoeflich, Suzy Corriea, Angela Ludy, Luanne Fosse, and Jeff Bird. Hershel Parker stated the Chamber of Commerce has not made their books available to the public. He suggested the City stop giving the Chamber of Commerce money, and use this money for other benefits of the City. 11 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —MAY 10, 2004 Lynda Merrill stated the City desperately needs a new fire station. She said instead of a fire station, the City has used its reserve fund to purchase property. Ms. Merrill addressed Item C-2 (Discussion of Reorganization of Facilities Division from the Recreation & Parks Department to the Public Services Department) and asked why the City is spending time and money on this issue and stated this is Council's way of micromanaging. She referred to Item C-3 (Approval of Policy Relating to Budget Resolution in Regard to Authority to Transfer Appropriations) and requested Council think carefully before making a decision because it could have long-term and unknown consequences. Ms. Merrill addressed Item C4 (Discussion and Approval of 4'h of July Permit Conditions) and stated the City will need to address State Parks and the Audobon Society regarding the protection of the Snowy Plover. Leabah Winter, Member of the Parks & Recreation Commission, expressed opposition to the reorganization of the City's Facilities Division. Roger Ewing addressed Item C-2 stating there is no reason to reorganize the City's departments, and micro -management is not needed. He also addressed Item D-I (Discussion of Using the Front Street Parking Lot.or Another Location for Limited RV Parking During The Summer Months) expressing his concern with liability. • Andy Hamp addressed Item D-1 stating City RV parking will interfere with privately owned RV parks.. He said City parks would fill before private parks because of their location. Mr. Hamp stated establishing overnight RV parking will set a precedent and will be difficult to contain. Doug Claussen concurred with Mr. Hamp's comments on City RV parking. Dannie Tope stated the Chamber of Commerce is funded through membership. Stan House stated he also agrees with comments made on RV parking. He said the Recreation & Parks Committee would be reviewing the dog park issue at their next meeting. Melody DeMeritt, Public Works Advisory Board Member, addressed Item C-1 (Resolution No. 34-04 Adopting Special Encroachment Permit Policies) stating the Board discussed safety and access issues relating to easements. She said there are feeder streets by Del Mar School that causes people to walk in the street, and perhaps the City can make a couple of these blocks a priority to increase the ability to walk off the street. Angela Ludy referred to Item C-2 and stated Council should utilize the Recreation & Parks Commission for their input. 11 3 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 10, 2004 Ken Vesterfelt stated the City should support local businesses such as the private RV parks. He also expressed gratitude to those who supported the Annual Car Show. Bill Davies stated a list of unreinforced masonry buildings in Morro Bay should be available to the public. Paul Twedt stated additional signage in a dog park acknowledging there is a nearby residential area would be a good compromise. Mayor Yates closed the hearing for public comment. Mayor Yates called for a break at 7:22 p.m.; the meeting resumed at 7:50 p.m. DECLARATION OF FUTURE AGENDA ITEMS Councilmember Winholtz requested to agendize the discussion of raising sewer rates. Councilmember Peirce requested to agendize the consideration of an ordinance on panhandling; Councilmember Peters concurred. City Attorney Robert Schultz stated he ® would look into the legality of this issue. Councilmember Peirce requested to agendize the discussion of streaming televised meetings onto the internet; Councilmember Peters concurred. Mayor Yates requested to agendize the consideration of a policy requiring the Finance Department to provide the City Council with the budget document at least seven days before the first budget meeting. Mayor Yates requested to agendize the discussion of the City of Morro Bay Senior insurance problem; Councilmember Peters concurred. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A -I APPROVAL OF MINUTES FOR THE REGULAR MEETING ON APRIL 26, 2004; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. 1, ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 10, 2004 A-2 APPROVAL OF AMENDMENT TO THE COOPERATIVE AGREEMENT WITH SAN LUIS OBISPO COUNCIL OF GOVERNMENTS FOR THE URBAN STATE HIGHWAY CAPITAL IMPROVEMENT PROGRAM; (PUBLIC SERVICES) RECOMMENDATION: Approve the amendment to the Cooperative Agreement. A-3 APPROVAL TO BEGIN FIRE CAPTAIN RECRUITMENT; (FIRE) RECOMMENDATION: Authorize the recruitment for the currently vacant Fire Captain/Paramedic position and for the anticipated vacancy in October due to retirement of a long-term Fire Captain. A-4 DESIGNATION OF COUNCILMEMBER JANICE PETERS AS THE VOTING DELEGATE DURING THE LOCAL LEGISLATIVE ACTION DAYS; (ADMINISTRATION) RECOMMENDATION: Designate Councilmember Peters as the Voting Delegate during the Local Legislative Action Days. ® MOTION: Councilmember Peirce moved the City Council approve the Consent Calendar. The motion was seconded by Councilmember Peters and carried unanimously. (5-0) B. PUBLIC HEARINGS, REPORTS & APPEARANCES —None. C. UNFINISHED BUSINESS C-1 RESOLUTION NO. 34-04 ADOPTING SPECIAL ENCROACHMENT PERMIT POLICIES; (PUBLIC SERVICES) City Engineer Frank Cunningham stated the vast majority of the City's street right-of-way are dedicated or granted easements. It is generally accepted by cities that the property owners have partial use of the easement, as long as it does not hinder, damage, or otherwise create a hazard to the city or utility companies ability to utilize the easement. This is why sending out the informational flyer "Safety Alert" was a critical element in reaffirming the City's intended uses of our right-of-way easement. The ultimate goal is to maintain a minimal community path in lieu of sidewalk, and utilizing off-street parking where is reasonably warranted and where there is enough right-of-way. The special encroachment permit is a formal agreement and is designed for the discretionary review and conditional approval of the property owner's minor use of the right-of-way. The special encroachment permit identifies all of the property owner's private improvements such as non-standard ® driveways, retaining walls, and fences that may be located in the right-of-way. The City's 5 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 10, 2004 review of these permits is to make sure that these private improvements do not hinder, damage or creates hazards for the public intended use, does not interfere with any City or utility planned improvement projects, and meets our ultimate goals. Mr. Cunningham recommended the City Council approve Resolution No. 34-04 adopting special encroachment permit policies. Councilmember Elliott stated community paths already exist within the City's ordinances and they just need to be enforced. He said the City should focus on streets and right-of- ways that will facilitate public parking and pedestrian access. Councilmember Winholtz suggested a language change to the resolution. Councilmember Peters stated the City should prioritize the areas that really need to have a public walkway such as around schools. MOTION: Councilmember Peirce moved the City Council adopt amended Resolution No. 34-04 identifying private encroachment permitting within the City's right-of-way easements. The motion was seconded by Councilmember ® Peters and carried unanimously. (5-0) C-2 DISCUSSION OF REORGANIZATION OF FACILITIES DIVISION FROM THE RECREATION & PARKS DEPARTMENT TO THE PUBLIC SERVICES DEPARTMENT; (ADMINISTRATION) City Manager Robert Hendrix stated the City Council directed staff to report on the value of separating the Facilities Division from the Department of Recreation & Parks and assign it to the Department of Public Services. Mr. Hendrix identified some of the issues involved in reorganization and relocation of staff, and recommended the City Council discuss this issue and direct staff accordingly. The City Council was not in support of this reorganization. Mayor Yates stated the structure of the City comes under the Council's purview. This item was tabled. 11 M ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 10, 2004 C-3 APPROVAL OF POLICY RELATING TO BUDGET RESOLUTION IN REGARD TO AUTHORITY TO TRANSFER APPROPRIATIONS; (CITY ATTORNEY) City Attorney Robert Schultz stated the City budget, including proposed revenue and expenditure levels for all City funds, is presented and adopted by the City Council. By law, expenditures shall not exceed revenues and available resources in the adopted budget. Therefore, the adopted budget serves as the annual financial plan for the City. This financial plan sets the annual allocation of available resources based on the goals, objectives, and the level of services as determined by the Council. The level of authority granted to the City Manager to transfer appropriations is set forth in ordinances and policies adopted by the Council. The ordinances and policies should make a clear distinction between what is the level of control and what is merely needed for information. The City budget control is maintained at the departmental level. The City Manager has the authority to approve appropriation transfers between programs or departments. Without a budget amendment, total expenditures of a particular fund may in no case exceed that which is appropriated by the City Council. Budget accountability rests primarily with the operating departments of the City. Mr. Schultz recommended the City Council direct staff to amend the budget resolution accordingly. ® Councilmember Peirce stated the concern is when an emergency comes up; the City Council need to be in the loop before the replacement funds are depleted. Councilmember Elliott stated the City Council allocates funds through the budget process, and should be made aware of and approve any change to that approved budget allocation. Mayor Yates suggested amendments to the budget resolution, and asked for Council's support in sending this resolution back to the City Attorney for revisions in order to allow Council to approve line item transfers. No further action was taken on this item. C-4 DISCUSSION AND APPROVAL OF 4' OF JULY PERMIT CONDITIONS; (CITY ATTORNEY) City Attorney Robert Schultz stated it has been a number of years since the fireworks were first moved from the high school to the Morro Bay waterfront location. The barge fireworks launch location that was eventually chosen at that time was in part due to a tremendous amount of input and advice not to launch in the immediate vicinity of Morro Rock or on the Sand Spit. Prior to last year's fireworks show, the Chamber decided to reinvestigate an alternate launch site closer to Morro Rock. Unfortunately, even trying to investigate an alternative site to make absolutely certain that environmental issues are adequately analyzed ® creates a tremendous amount of controversy. After last year's fireworks show, the Chamber ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 10, 2004 of Commerce, in consultation with the City, decided to do a "Section 7 Consultation' through the US Coast Guard marine event permit. Unfortunately, in mid -April the Coast Guard determined that no marine event permit would be needed for the fireworks show since the event would not introduce extra or unusual hazards to the safety of life on the navigable waters. In addition, Coastal Commission staff recently sent the Chamber and the City a correspondence stating that a Coastal Development Permit is required for the fireworks show. Mr. Schultz stated he has written the Coastal Commission and have yet to receive a response. Until a different legal interpretation is provided the City, it is recommended that we do not require the Chamber to file for a Coastal Development Permit. MOTION: Councilmember Peirce moved the City Council approve the Temporary Event Conditions for the 4ih of July Fireworks Show. The motion was seconded by Councilmember Elliott and carried unanimously. (5-0) Mayor Yates called for a break at 9:05 p.m.; the meeting resumed at 9:15 p.m. D. NEW BUSINESS ® D-1 DISCUSSION OF USING THE FRONT STREET PARKING LOT OR ANOTHER LOCATION FOR LIMITED RV PARKING DURING THE SUMMER MONTHS; (HARBOR) Harbor. Director Rick Algert stated the City has some areas where temporary arrangements may be made by the City Council adopting a resolution designating the area for overnight parking. It is assumed that the City Council desires to consider this only as a temporary use, with a minimum of changes or development costs. It is estimated that signage and the installation of an iron ranger could be done in any location for between $1,000 and $3,000. If the City Council desires to pursue this program, it is recommended that the daily rate be higher than other RV parks to avoid competition. It is very hard to estimate how much revenue such a program might bring in or what the demand would be. Mr. Algert recommended the City Council discuss and direct staff accordingly. Mayor Yates stated based on the comments received from the park owners, perhaps this is not a good idea. Councilmember Elliott stated he is opposed to this concept because it is in direct competition with the private sector. r Councilmember Peters stated perhaps it would be wise to wait and see how the summer ® goes before putting money and time into it. P MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 10, 2004 Councilmember Peirce stated there is a lot of merit to say this would be difficult; let's see what the summer brings. No further action was taken on this item. ADJOURNMENT The meeting adjourned at 9:27 p.m. Recorded by: Bridgett Baaher City Clerk E E Ll NOTICE OF PUBLIC BUDGET WORKSHOP ` NOTICE IS HEREBY GIVEN that the Morro Bay City Council will be holding a Public Budget Workshop Meeting on Thursday, May 6, 2004 at 6:00 p.m. to be held in the Community Center Multipurpose Room, 1001 Kennedy Way, Morro Bay, California. The City Council will be reviewing the proposed budget for Fiscal Year 2004/2005. r DATED: April 29, 2004 - Q6., /&�� Ja Boucher, Deputy City Clerk C ® City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to die preservation and enhancement of the quality oflife. The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING — APRIL 26, 2004 CLOSED SESSION — APRIL 26, 2004 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA CS-1 GOVERNMENT CODE SECTION 54956.9(C); Conference with Legal ® Counsel due to anticipated litigation - Initiation of An Administrative Appeal exists based upon existing facts and the advice of legal counsel as to one (1) matter: City of Morro Bay vs. Federal Emergency Management Agency IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. Is ® PUBLIC SESSION — APRIL 26, 2004 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCILMEMBERS ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period, the following rules shall be followed: • When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments are to be limited to three minutes. • All remarks shall be addressed to Council, as a whole, and not to any ® individual member thereof. • The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or staff. • Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering. • Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting. • Your participation in City Council meetings is welcome and your courtesy will be appreciated. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 772-6205. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are Is approved without discussion. 2 A-1 APPROVAL OF MINUTES FOR THE REGULAR MEETINGS ON APRIL 12, ® 2004; (ADMINISTRATION) RECOMMENDATI0N: Approve minutes as submitted A-2 CASH & INVESTMENT REPORT FEBRUARY AND MARCH, 2004 (FINANCE) RECOMMENDATION: Receive report for information A-3 PROCLAMATION OF THE CITY OF MORRO BAY DECLARING MAY AS "MORRO BAY VOLUNTEER MONTH" (RECREATION AND PARKS) RECOMMENDATION: Adopt Proclamation A-4 SECOND READING AND ADOPTION OF ORDINANCE 501 AMENDING THE LOCAL COASTAL PROGRAM AND ZONING ORDINANCE RELATING TO SECONDARY UNITS, GUESTHOUSES AND SATELLITE DISH ANTENNAS (PUBLIC SERVICES) RECOMMENDATION: Adopt Ordinance 501 A-5 RESOLUTION 33-04 ESTABLISHING POLICY FOR MANAGEMENT OF ® CAPITAL IMPROVEMENT PROJECTS (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution 33-04 A-6 RESOLUTION 30-04 TO AUTHORIZE AND APPROVE SELF-INSURANCE OF WORKERS' COMPENSATION FOR EMPLOYEES THROUGH THE SELF- INSURANCE AUTHORITY AND LOSS POOLING PROGRAM OF CALIFORNIA JOINT POWERS INSURANCE AUTHORITY (ADMINISTRATION) RECOMMENDATI0N: Adopt Resolution 30-04 A-7 RESOLUTION 32-04 CELEBRATING THE TROLLEY'S TENTH ANNIVERSARY OF OPERATION (ADMINISTRATION) RECOMMENDATION: Adopt Resolution 32-04 A-8 RESOLUTION 27-04 APPROVING APPLICATION FOR LAND AND WATER CONSERVATION FUND GRANT FUNDS FOR THE DEL MAR PARK TENNIS COURT PROJECT (RECREATION AND PARKS) ® RECOMMENDATION: Adopt Resolution 27-04 3 ® A-9 ALLOCATION OF FUNDS FROM WATER REVENUE FUND RESERVE TO CONTINUE FINANCING OF THE APPROVED RETROFIT REBATE PROGRAM (PUBLIC SERVICES) RECOMMENDATION: Allocate funds A-10 RESOLUTION 31-04 TO AUTHORIZE AGREEMENT WITH THE CENTRAL COAST FISHERIES/CABLE LIAISON COMMITTEE FOR A $400,000 GRANT TO PURCHASE AN ICE MAKING MACHINE (HARBOR) RECOMMENDATION: Adopt Resolution 31-04 B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 RESOLUTION 28-04 DIRECTING THE PREPARATION OF AN ENGINEER'S REPORT FOR LEVY OF THE ANNUAL ASSESSMENT FOR THE CLOISTERS PARK AND OPEN SPACE LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT (RECREATION AND PARKS) RECOMMENDATION: Adopt Resolution 28-04 ® B-2 RESOLUTION 29-04 DIRECTING THE PREPARATION OF AN ENGINEER'S REPORT FOR LEVY OF THE ANNUAL ASSESSMENT FOR NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT (RECREATION AND PARKS) RECOMMENDATION: Adopt Resolution 29-04 C. UNFINISHED BUSINESS There are no unfinished business items. D. NEW BUSINESS D-1 DISCUSSION OF RECORDKEEPING POLICIES (COUNCILMEMBER WINHOLTZ) RECOMMENDATION: Discuss and direct staff accordingly El ® D-2 DISCUSSION OF REORGANIZATION OF FACILITIES DIVISION FROM THE RECREATION & PARKS DEPARTMENT TO THE PUBLIC SERVICES DEPARTMENT (MAYOR YATES) RECOMMENDATION: Discuss and direct staff accordingly D-3 DISCUSSION OF CITY'S NOTICING POLICIES WHEN PROPOSED PROJECTS MAY HAVE AN IMPACT TO RESIDENCES (MAYOR YATES) RECOMMENDATION: Discuss and direct staff accordingly D-4 CONSIDERATION OF. SHORT-TERM FIRE STATION RECOVERY/REPAIR ALTERNATIVES (this item has been pulled) D-5 SIGN ORDINANCE CONCEPT PRESENTATION (this item has been pulled) E. ADJOURNMENT THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO ® THE DATE AND TIME SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 772-6200 FOR FURTHER INFORMATION. COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST AT CITY HALL, LIBRARY, AND MILLS STATIONERY. IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. 5 MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION — APRIL 26, 2004 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Yates called the meeting to order at 5:00 p.m PRESENT: William Yates Mayor Dave Elliott Councilmember William Peirce Councilmember Janice Peters Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix City Manager Robert Schultz City Attorney Mike Pond Interim Fire Chief Frank Cunningham City Engineer CLOSED SESSION MOTION: Councilmember Peirce moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Peters and unanimously carried. (5-0) ® Mayor Yates read the Closed Session Statement. CS-1 GOVERNMENT CODE SECTION 54956.9(C); Conference with Legal Counsel due to anticipated litigation - Initiation of An Administrative Appeal exists based upon existing facts and the advice of legal counsel as to one (1) matter: City of Morro Bay vs. Federal Emergency Management Agency The meeting adjourned to Closed Session at 5:02 p.m. and returned to regular session at 5:25 p.m. MOTION: Councilmember Elliott moved the meeting be adjourned. The motion was seconded by Councilmember Peters and unanimously carried. (5-0) The meeting adjourned at 5:25p.m. E C C MINUTES — MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 26, 2004 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Yates called the meeting to order at 6:00 p.m PRESENT: William Yates Mayor Dave Elliott Councilmember William Peirce Councilmember Janice Peters Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix Robert Schultz Jamie Boucher Rick Algert Bruce Ambo Mike Pond Jim Koser John DeRohan Andrea Lueker Bill Boucher Janeen Burlingame Mike Prater ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR'S REPORTS & ANNOUNCEMENTS City Manager City Attorney Deputy City Clerk Harbor Director Public Services Director Interim Fire Chief Finance Director Police Chief Recreation & Parks Director Capital Projects Manager Management Analyst Associate Planner CLOSED SESSION REPORT - City Attorney Robert Schultz reported the City Council met in Closed Session to discuss the anticipated administrative appeal against FEMA. The Council moved by motion that staff file an administrative appeal based on FEMA's determination in regards to the damage to the fire station caused by the December earthquake. PUBLIC COMMENT Rodger Anderson wished Council luck as they prepared for next week's budget hearings. He also requested that Council declare their support for the California Conservation Corp who is currently in danger of being shut down. PA 11 MINUTES — MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 26, 2004 Dannie Tope thanked the City for the downtown lights. She also reported on the success of the Ride to the Rock 43, a fundraiser held at Tidelands Park benefiting Camp Hapitok. Ed Dumond voiced his frustration over the special encroachment permit situation and the wait he has to endure. He also asked where the City is on the Chamber of Commerce audit. Robert Dixon invited everyone to the San Luis Obispo County Airport to view the B17 and B24 bombers that will be on display the weekend of May 8a' and 9i°. Kim Kimball, Executive Director of the Chamber of Commerce, addressed the Chamber's audit and stated that the audit should have been completed and that the accountant would be contacting the City by May 151. She also noted the Tall Ship Irving Johnson would be arriving Thursday morning and will be holding tours. Ms. Kimball stated the 4a' of July Committee is continuing to accept sponsors and donations for the event. She said the Chamber's move to their new office located at 845 Embarcadero has been quite a success, and their traffic has tripled since the move. Jerry Rioux, Executive Director of the County Housing Trust Fund, encouraged the Council to include their non-profit group in the upcoming budget process when providing ® to charitable organizations. He said their group was created in an effort to increase the amount of affordable housing in San Luis Obispo County. Melody DeMeritt encouraged the citizens of Morro Bay to visit the Tall Ship Irving Johnson. She expressed concern with how a project can get to the Coastal Commission, noting it seems obvious that it should be stopped at the Planning Commission and/or City Council level. Ms. DeMeritt also noted that she went to the last Planning Commission meeting and the doors were locked and she was unable to get in. Herschel Parker addressed Council about their stand on the Snowy Plover issue and wondered how the City could hire the Pacific Legal Foundation. Leabah Winter questioned the benefit of moving the facilities division from the Recreation & Parks Department to the Public Services Department, and hopes that there will be no further reorganization of the department. Brenda Agee Smiley concurred with the Coastal Commission's vote on the Harbor View project stating large out of scale projects are inappropriate for Morro Bay. Angela Ludy, Recreation & Parks Commission Chairman, thanked everyone for their participation in last Friday's Arbor Day/Earth Day festivities. She also spoke about the potential reorganization of the facilities division and urged Council to include the Recreation & Parks Commission in the decision making process before making any final is decision. 3 MINUTES — MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 26, 2004 Stan House thanked those responsible for putting on the Arbor Day festivities. He also said he was personally offended with some of the actions at the last Planning Commission meeting, noting the meeting had to be stopped because people were yelling from the back of the room. Mr. House stated there is a way to get your point across without creating that kind of hostility. He also voiced his concern with the Coastal Commission and their ability to be fair in their determinations. Roger Ewing congratulated Bill Boucher and the Public Services Department for the downtown improvements with the new lighting fixtures. He also referred to Item D-2 (Discussion of Reorganization of Facilities Division From the Recreation & Parks Department to the Public Services Department) stating "if it isn't broken, don't fix it"; Recreation & Parks is dong a great job and Public Services is extremely busy and doesn't need the added responsibility and pressure. Mayor Yates closed the hearing for public comment. DECLARATION OF FUTURE AGENDA ITEMS Councilmember Peirce requested to agendize discussion on the possibility of using the ® Front Street parking lot or another location for limited RV parking during the summer since the State Park has been closed. Mayor Yates requested a resolution supporting the continuation of the California Conservation Corp. Councilmember Winholtz requested a report from the City Attorney regarding the status and legality of the parking -in -lieu program. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES FOR THE REGULAR MEETINGS ON APRIL 12, 2004; (ADMINISTRATION) RECOMMENDATION: Approve minutes as submitted A-2 CASH & INVESTMENT REPORT — FEBRUARY AND MARCH, 2004; (FINANCE) ® RECOMMENDATION: Receive report for information 13 MINUTES — MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 26, 2004 11 A-3 PROCLAMATION OF THE CITY OF MORRO BAY DECLARING MAY AS "MORRO BAY VOLUNTEER MONTH'; (RECREATION AND PARKS) RECOMMENDATION: Adopt Proclamation A-4 SECOND READING AND ADOPTION OF ORDINANCE 501 AMENDING THE LOCAL COASTAL PROGRAM AND ZONING ORDINANCE RELATING TO SECONDARY UNITS, GUESTHOUSES AND SATELLITE DISH ANTENNAS; (PUBLIC SERVICES) RECOMMENDATION: Adopt Ordinance 501 A-5 RESOLUTION 33-04 ESTABLISHING POLICY FOR MANAGEMENT OF CAPITAL IMPROVEMENT PROJECTS; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution 33-04 A-6 RESOLUTION 30-04 TO AUTHORIZE AND APPROVE SELF-INSURANCE OF WORKERS' COMPENSATION FOR EMPLOYEES THROUGH THE SELF- INSURANCE AUTHORITY AND LOSS POOLING PROGRAM OF CALIFORNIA JOINT POWERS INSURANCE AUTHORITY; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution 30-04 A-7 RESOLUTION 32-04 CELEBRATING THE TROLLEY'S TENTH ANNIVERSARY OF OPERATION; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution 32-04 A-8 RESOLUTION 27-04 APPROVING APPLICATION FOR LAND AND WATER CONSERVATION FUND GRANT FUNDS FOR THE DEL MAR PARK TENNIS COURT PROJECT; (RECREATION AND PARKS) RECOMMENDATION: Adopt Resolution 27-04 A-9 ALLOCATION OF FUNDS FROM WATER REVENUE FUND RESERVE TO CONTINUE FINANCING THE APPROVED RETROFIT REBATE PROGRAM; (PUBLIC SERVICES) RECOMMENDATION: Allocate funds LI R 1 MINUTES — MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 26, 2004 A-10 RESOLUTION 31-04 TO AUTHORIZE AGREEMENT WITH THE CENTRAL COAST FISHERIES/CABLE LIAISON COMMITTEE FOR A $400,000 GRANT TO PURCHASE AN ICE MAKING MACHINE; (HARBOR) RECOMMENDATION: Adopt Resolution 31-04 Councilmember Peters pulled Item A-3 from the Consent Calendar; and Councilmember Winholtz pulled Item A-9. MOTION: Councilmember Peirce moved the City Council approve the Consent Calendar with the exception of Items A-3 and A-9. The motion was seconded by Councilmember Peters and carried unanimously. (5-0) A-3 PROCLAMATION OF THE CITY OF MORRO BAY DECLARING MAY AS "MORRO BAY VOLUNTEER MONTH'; (RECREATION AND PARKS) Councilmember Peters stated this City has an incredible spirit of voluntarism and wanted to take this time to thank all those volunteers who make Morro Bay what it is. ® MOTION: Councilmember Peters moved the City Council approve Item A-3 of the Consent Calendar. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) C A-9 ALLOCATION OF FUNDS FROM WATER REVENUE FUND RESERVE TO CONTINUE FINANCING THE APPROVED RETROFIT REBATE PROGRAM; (PUBLIC SERVICES) Councilmember Winholtz addressed this item for public awareness, and stated this $100 rebate program exists. MOTION: Councilmember Winholtz moved the City Council approve Item A-9 of the Consent Calendar. The motion was seconded by Councilmember Peters and carried unanimously. (5-0) 6 `0 MINUTES — MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 26, 2004 B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-I RESOLUTION 28-04 DIRECTING THE PREPARATION OF AN ENGINEER'S REPORT FOR LEVY OF THE ANNUAL ASSESSMENT FOR THE CLOISTERS PARK AND OPEN SPACE LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT (RECREATION AND PARKS) Recreation & Parks Director Andrea Lueker stated on July 8, 1996, the City Council accepted lots 121 and 122 of the Cloisters Subdivision that equal 34 acres of open space and organized park. Prior to the acceptance of the final map, an assessment district was formed to cover the cost of maintenance of the parkland and open space. Prior to the acceptance of the final map and pursuant to the conditions of approval, an assessment district was formed to cover the cost of maintenance of the parkland and open space. The assessment district formation proceedings began in August 1996 and concluded with the final public hearing for the formation on September 23, 1996, which levied the annual assessment of $148,944 for the maintenance of the 34 acres of park and open space. Each year, the City must hold a series of three public hearings to confirm the levy of the assessment for the upcoming fiscal year. Ms. Lueker recommended the City Council adopt Resolution 28-04 ordering the preparation of an Engineer's Report detailing the expenses projected for fiscal year 2004-05 for the maintenance of the Cloisters Park and ® Open Space. Mayor Yates opened the hearing for public comment. John Lauffer expressed support for the discontinuance of this assessment district, and urged the City Council to not support the assessment by adoption of the resolution. He said he began researching the legality of this special assessment district approximately one year ago and feels that the assessment was levied improperly. Roger Ewing expressed support for the assessment district stating this is based on the history of the project. He said the residents of the Cloisters Subdivision have always known there would be an assessment fee and they have knowingly purchased their property with that understanding. Mr. Ewing encouraged these citizens to abide by their contracts. Mayor Yates closed the public comment hearing. Councilmember Peirce stated he was part of the two -person committee who met with some residents of the Cloisters Subdivision, and unfortunately, they were unable to come up with a solution to the assessment district. He said he is unwilling to give up on the district until there is a plan to fall back on. Councilmember Peirce stated he does not believe in assessment districts, however, with the current budget situation, he would be voting in favor of the assessment this year. 7 11 MINUTES — MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 26, 2004 Councilmember Peters stated she knows that the committee made a good effort in trying to come up with a solution to the assessment even though unsuccessful. She also agrees that the contracts.signed by the owners were signed in good faith. Councilmember Peters stated the City couldn't afford to do away with the assessment district at this time. Mayor Yates stated he also does not philosophically believe in assessment districts. Councilmember Elliott stated he would like to remove the fifth paragraph of the Resolution noting "100% of the owners" is misleading, as the "owners" in this case was just one developer. He said he feels the residents of the Cloisters Subdivision are being penalized because they can afford this tax. Councilmember Elliott stated this park is a benefit to the entire City. Councilmember Peirce stated he feels that with the bare bones budget they anticipate this year, that if the assessment were abolished, then the City would be facing layoffs. Mayor Yates stated he also feels that the fifth paragraph of the Resolution is misleading. He said it infers that many homeowners voted unanimously when in reality it was probably less than five homeowners. ® MOTION: Councilmember Peters moved the City Council adopt Resolution 28-04 ordering the preparation of an Engineer's Report detailing the expenses projected for fiscal year 2004-05 for the maintenance of the Cloisters Park and Open Space. The motion was seconded by Councilmember Peirce and carried with Councilmember Elliott and Mayor Yates voting no. (3-2) B-2 RESOLUTION 29-04 DIRECTING THE PREPARATION OF AN ENGINEER'S REPORT FOR LEVY OF THE ANNUAL ASSESSMENT FOR NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT (RECREATION AND PARKS) Recreation & Parks Director Andrea Lueker stated on June 27, 1994, the City accepted Lot 11 of the North Point Subdivision that equal 1.3 acres of natural area. On December % 1996, the City Council ordered the formation of the North Point Landscaping and Lighting Maintenance Assessment District with an annual assessment of $5,645. Each year, the City must hold a series of the public hearings to confirm the levy of the assessment in the upcoming fiscal year. Ms. Lueker recommended the City Council adopt Resolution 29-04 ordering the preparation of an Engineer's Report detailing the expenses projected for fiscal year 2004-05 for the maintenance of the North Point Natural Area. Mayor Yates opened the hearing for public comment; there being none, the public comment ® period was closed. 0 11 MINUTES — MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 26, 2004 Councilmember Winholtz stated she is concerned that this assessment district does not honor the irrigation that they are supposed to have on the retaining wall along the back of the parking lot and the street. She said she would like staff to write a letter requiring them to fulfill their obligations. Councilmember Elliott stated he believes this assessment district is also unfair. He said these owners only pay half as much as the owners at Cloisters Subdivision for maintenance of a much smaller piece of land. Councilmember Peters stated that each of these property owners gave their approval on the district. She also feels that being able to live in this area is an advantage, which legitimizes the assessment of the fees. Mayor Yates again challenged the voting procedure by the property owners; stating the next time these issues come to Council, he would like to see a report stating, by name, which of the 100% of the voting owners are. MOTION: Councilmember Peters moved the City Council adopt Resolution 29-04 ordering the preparation of an Engineer's Report detailing the expenses ® projected for fiscal year 2004-05 for the maintenance of the North Point Natural Area. The motion was seconded by Councilmember Peirce and carried with Councilmember Elliott and Mayor Yates voting no. (3-2) C. UNFINISHED BUSINESS —None. D. NEW BUSINESS D-I DISCUSSION OF RECORDKEEPING POLICIES Councilmember Winholtz requested the Council discuss the City's current sign -in procedures during Public Comment and Public Hearing items, especially when there is a chance that these items could go before the Coastal Commission. She said she would like to see a sheet available at the podium where speakers could print their name and address prior to speaking on public hearings on coastal jurisdiction. Councilmember Winholtz stated this would give the City an automatic record that would also make it easier on staff. Councilmember Peters stated she likes the idea, and feels it could be an advantage for issues like Coastal Commission noticing, as well as helping the City Clerk. Mayor Yates stated he feels the policy would be redundant as speakers already state their name. u u MINUTES — MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 26, 2004 Councilmember Elliott stated he doesn't feel the City can require a speaker to fill out this form. MOTION: Councilmember Winholtz moved the City Council request staff to come back with an amendment to the Council Policies and Procedures reflecting the intent of this report. The motion was seconded by Councilmember Peters and carried unanimously. (5-0) D-2 DISCUSSION OF REORGANIZATION OF FACILITIES DIVISION FROM THE RECREATION & PARKS DEPARTMENT TO THE PUBLIC SERVICES DEPARTMENT Mayor Yates stated he brought this item forward for discussion to see if it still makes sense to keep facilities management under the Recreation & Parks Department. In the 1980's, Public Works used to house the Facilities Division at which point it was slowly moved over to Recreation & Parks. It seems to him that it is more logical to have the Facilities Division under the direction of the Public Services Department. Councilmember Peters stated she uses the City's facilities quite a bit and feels that the facility division works very efficiently the way it is right now and sees no reason to change it. Mayor Yates stated he is most concerned with facility maintenance, not facility reservations and usage. He said it would make more sense to be housed under Public Services as the expertise of codes, engineering, etc. are found there. Councilmember Peirce stated his main concern is with building maintenance as well. He said due to the fact that larger scale maintenance projects become multiple jurisdictional, he feels they should run the same way as capital projects. Councilmember Peirce stated he would be interested in finding out how much time is spent on these more significant projects. Councilmember Elliott stated he would like to see a report from staff on this issue. Mayor Yates stated he would like to see a staff report brought back that reflects the division of labor amongst the two departments. Councilmember Winholtz stated she doesn't see the need to move the division as it is currently working well. 10 l MINUTES — MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 26, 2004 MOTION: Mayor Yates moved the City Council direct the City Manager to bring back a report regarding facilities management under the Recreation & Parks Department versus the Public Services Department. The motion was seconded by Councilmember Elliott and carried with Councilmember Peters and Councilmember Winholtz voting no. (3-2) D-3 DISCUSSION OF CITY'S NOTICING POLICIES WHEN PROPOSED PROJECTS MAY HAVE AN IMPACT TO RESIDENCES Mayor Yates brought this item forward as a result of the lack of noticing to the Island Street residents regarding the proposed Del Mar Dog Park. Mayor Yates requested staff come back with a report regarding policies on noticing homeowners or business owners when there is going to be a major change adjacent to their properties. Council concurred with this request. Councilmember Peters stated she would like to add that a definition of what types of projects that necessitate this kind of noticing be included in the report. ® MOTION: Mayor Yates moved the City Council direct staff to bring back a report and proposed policy on noticing affected property owners of City generated projects. The motion was seconded by Councilmember Peters and carried unanimously. (5-0) ADJOURNMENT The meeting adjourned at 9:03 p.m. Recorded by: l'e7Bouc�er Clerk 40 11 ® REVISED, D-4 ADDED City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life. The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING — APRIL 12, 2004 PUBLIC SESSION — APRIL 12, 2004 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ® ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCILMEMBERS ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period, the following rules shall be followed: • When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments are to be limited to three minutes. • All remarks shall be addressed to Council, as a whole, and not to any individual member thereof. • The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or staff. • Please refrain from public displays or outbursts such as unsolicited applause, ® comments or cheering. ® • Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting. • Your participation in City Council meetings is welcome and your courtesy will be appreciated. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 772-6205. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 PROCLAMATION DECLARING APRIL 2004 AS "MONTH OF CHILD" RECOMMENDATION: Adopt Proclamation. ® A-2 PROCLAMATION DECLARING APRIL 23, 2004 AS "ARBOR DAY" RECOMMENDATION: Adopt Proclamation. A-3 APPROVAL OF MINUTES FOR THE REGULAR MEETING ON MARCH 8, 2004 RECOMMENDATION: Approve as submitted. A-4 RESOLUTION NO. 19-04 RECITING THE FACT OF THE SPECIAL MUNICIPAL ELECTION HELD ON MARCH 2, 2004 AND DECLARING THE RESULTS AND SUCH OTHER MATTERS AS PROVIDED BY LAW RECOMMENDATION: Adopt Resolution 19-04. A-5 RESOLUTION NO. 21-04 ADOPTING AMENDMENTS AND ADDITIONS TO THE CITY OF MORRO BAY PERSONNEL RULES AND REGULATIONS AND RESCINDING RULES AND REGULATIONS IN CONFLICT THEREWITH RECOMMENDATION: Adopt Resolution 21-04. ® A-6 RESOLUTION NO. 20-04 APPROVING AUDIT CONTRACT FOR WASTEWATER TREATMENT PLANT FUND RECOMMENDATION: Adopt Resolution 20-04. A-7 RESOLUTION NO. 22-04 APPROVING THE APPLICATION FOR GRANT FUNDS FOR THE PER CAPITA GRANT PROGRAM E RECOMMENDATION: Adopt Resolution 22-04. A-8 RESOLUTION NO. 23-04 AUTHORIZING ASSIGNMENT OF LEASE AGREEMENT FOR LEASE SITES 87-88/87W-88W (OUTRIGGER RESTAURANT) FROM GEORGE LEAGE TO VIOLET LEAGE RECOMMENDATION: Adopt Resolution 23-04. A-9 RESOLUTION 24-04 AUTHORIZING EXECUTION OF A ONE-YEAR LEASE AGREEMENT WITH MORRO BAY COMMERCIAL FISHERMEN'S ORGANIZATION FOR THE USE OF LEASE SITE 130W-132W (OLD DRISCOLL'S DOCK) RECOMMENDATION: Adopt Resolution 24-04. A-10 RESOLUTION 25-04 AUTHORIZING EXECUTION OF A ONE-YEAR LEASE WITH JIM SILVA AND DAVID HAWORTH FOR THE USE OF LEASE SITE 133W (OLD DRISCOLL'S FISH MARKET) RECOMMENDATION: Adopt Resolution 25-04. A-11 RESOLUTION 26-04 AUTHORIZING ASSIGNMENT OF 1/3 INTEREST IN LEASE SITE 110-112 (GAFCO) FROM CHARLIE OGLE TO GEORGE LEAGE IN ADDITION TO A 5-YEAR EXTENSION OF SAID LEASE. RECOMMENDATION: Adopt Resolution 26-04. B. PUBLIC HEARINGS, REPORTS & APPEARANCES B-I ORDINANCE NO. 501 AMENDING THE LOCAL COASTAL PROGRAM AND ZONING ORDINANCE RELATING TO SECONDARY UNITS, GUESTHOUSES AND SATELLITE DISH ANTENNAS — FIRST READING AND INTRODUCTION RECOMMENDATION: Open for public hearing; adopt Ordinance 501 for first reading and introduction. 3 B-2 APPROVAL OF THE MASTER PLAN AMENDMENT TO DEL MAR PARK FOR AN OFF -LEASH DOG AREA RECOMMENDATION: Approve the Del Mar park Master Plan revision to include and off -leash dog area. C. UNFINISHED BUSINESS C-1 Proposed Process Implementing City Council Policy Direction Regarding Administration of Capital Projects RECOMMENDATION: Consider and approve the team project management approach. D. NEW BUSINESS D-1 APPROVAL OF SITE SELECTION AND FEASIBILITY STUDY FOR A COMMUNITY POOL RECOMMENDATION: Approve recommendation for the contracting of a feasibility study for a community pool on the 220 Atascadero Road site. is D-2 DISCUSSION OF POLICY ALLOWING A FIVE -PERCENT ADVANTAGE TO CONTRACTORS LOCATED WITHIN -THE CITY OF MORRO BAY RECOMMENDATION: Discuss and direct staff accordingly. D-3 DISCUSSION OF SPECIAL ENCROACHMENT PERMITS POLICY RECOMMENDATION: Discuss and direct staff accordingly. ADDED D4 Discussion of Council Position on County Library's Proposed ''% Cent Sales Tax Initiative RECOMMENDATION: Discuss and direct staff accordingly. E. ADJOURNMENT THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TIME SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 772-6200 FOR FURTHER INFORMATION. ® COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS 2 ® AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND (� AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST AT CITY HALL, LIBRARY, AND MILLS STATIONERY. 11 E IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. G MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 12, 2004 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Yates called the meeting to order at 6:05 p.m PRESENT: William Yates Mayor Dave Elliott Councilmember William Peirce Councilmember Janice Peters Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix Jamie Boucher Rick Algert Bruce Ambo Jim Koser John DeRohan Andrea Lueker Bill Boucher Mike Prater Heather Salyer -Frith Steve Knuckles City Manager Deputy City Clerk Harbor Director Public Services Director Finance Director Police Chief Recreation & Parks Director Capital Projects Manager Associate Planner Recreation Supervisor - Youth Services Captain/Paramedic ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR'S REPORTS & ANNOUNCEMENTS CLOSED SESSION REPORT — There was no closed session this evening. PUBLIC COMMENT Brian Reynolds, Library Director for the County of San Luis Obispo, spoke regarding the Library Funding Measure. He wanted to ask for Council's support or at least their neutrality regarding bringing this ballot measure to the voters. Joan Solu, citizen of Morro Bay, spoke in favor of the pool feasibility study. She and others are very interested in Morro Bay again having an aquatics facility and supports its placement at 220 Atascadero Road. Bill Woodson, citizen of Morro Bay, also requests Council's yes vote on the pool feasibility study. He feels that aquatics cuts across all age groups and suggests potential 40 funding sources such as selling city owned property, our excess water or voting on a bond MINUTES — MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 12, 2004 ® issue. Mr. Woodson also requested that when the RFP for the potential hotel/conference center site (Anthony's) becomes a reality, that a public committee be formed to review the RFP to ensure its inclusion of important issues. He would like to be a member of that committee. Finally, he congratulated the City on the new streetlights on Main Street and Morro Bay Blvd. He encouraged the City to'investigate the potential of putting utilities underground in the downtown area. Pricilla Cole of the Sandpiper Keystone Inn wanted to ensure that First Responder Needs are the first priority of the City. She also commented on the Market project stating she would prefer the City sell the property rather than build on it. She said the City's solvency is a fast priority and also feels that the competition could hurt some of the smaller businesses in town. Herschel Parker spoke on tourism and the plovers. He feels that City Council is being very short sighted in their treatment of this issue. James Clinton spoke on the pool feasibility proposal. He introduced a local resident, Tom Haney, ex -swimming coach of Stanford University. Tom Haney wanted to offer his expertise with the new pool as he has had a lot of experience in building and managing pools. He said that pools are not only for recreation ® but should also be for young people to get involved and compete. Lindsay Ayotte, Island Street resident, spoke on the dog park issue. She is adamantly opposed to placing the Off -Leash Dog Park in the proposed location at Del Mar Park. The proposed park would create distracting noise, is located too close to homes, and takes too much of the parkland away from park users. Pat Ayotte, owner of 410, 420 and 411 Island, spoke to the dog park issue as well. He was frustrated at the fact that none of the Island Street residents were noticed of this proposed project. He is also concerned with the dog park's maintenance, its location to the wetlands, and questions whether or not an EIR impact report has been done. He is also concerned with the numbers of dogs that might utilize the park at any given time and thinks there could be upwards of 30-40 dogs at a time. Ken Vesterfelt, spoke on behalf of the Morro Bay Car Show and wanted to thank the community for their support in supplying the show with over 170 needed trophies. Julian Moreland, a dog lover and Island Street resident, requested the Council reconsider the placement of the dog park right behind her house. She is a shift worker who often needs to sleep during the day. The proximity of the park to her home would disturb her ability to sleep. Sara McCandliss, citizen of Morro Bay, requested Council do everything that they can to is find places for dogs to run; it's part of a dog and owner's health to allow this activity. 2 E MINUTES — MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 12, 2004 She also encouraged Council to stand firm on their position with State Parks in recapturing our beaches. Nicole Nix, 411 Island, is a dog owner. The proposed park is in her front yard. There is a noise issue, a territorial issue, and a distraction issue. Please reconsider the location away from Del Mar Park. Stan House, citizen of Morro Bay, spoke on the proposed '/4 cent sales tax benefiting the county libraries. Would like to see the City come out against this. The City has a lot of issues facing them right now; in fact the City might need to develop a sales tax initiative themselves in an effort to raise money for such things as a new Fire Department building. Rachel Ayotte, student at Del Mar Elementary and Island Street resident, spoke against the location of the dog park. She is concerned about the cleanliness of the park which will impact kids ability to play there. Parks are for people, not dogs. Betty Ayotte, Island Street resident, spoke against the dog park. She also read a letter from Jeanie McIntosh, another Island Street resident who was unable to attend the meeting. Jeannie was concerned with the noise issue; dog fights issue; with dog feces washing into the nearby stream; and wondered if the volleyball court would have to be ® moved. Betty reiterated that parks are for people. Allison Graves, 430 Island, also spoke out against the proposed dog park location. She has young children who sleep during the day and is concerned with the noise. She recently bought her home there because of the peaceful location. She is also concerned that the dog park would smell. Jeremiah O'Brien, President of the Commercial Fisherman's Association of Morro Bay, wished to thank Council for giving them the opportunity to take over the Driscoll lease site. He also wanted to show his support for the proposed pool and its location even though a fire department is needed first. Jim Wood, citizen of Morro Bay, wanted to give his support to item A-9; to support item A-10 and wanted to encourage Council not to support the '/4 cent sales tax initiative — why pay'people to do what is already being done by our local Friends of the Library. In fact, he would encourage the City to take the library back and operate it. Mayor Yates closed the hearing for public comment. DECLARATION OF FUTURE AGENDA ITEMS Councilmember Winholtz requested an informational item be placed on the agenda on ® how written records of public hearing speakers are kept. 3 MINUTES — MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 12, 2004 Mayor Yates requested an item be placed on the agenda to discuss the concept of moving the Facilities Division from the Recreation & Parks Department to the Public Services Department. Mayor Yates requested an item be placed on the agenda to discuss the City's noticing policies when proposed projects may have an impact to residences. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 PROCLAMATION DECLARING APRIL 2004 AS "MONTH OF CHILD" RECOMMENDATION: Adopt Proclamation. A-2 PROCLAMATION DECLARING APRIL 23, 2004 AS "ARBOR DAY" RECOM114ENDATION: Adopt Proclamation. A-3 APPROVAL OF MINUTES FOR THE REGULAR MEETING ON MARCH 8, 2004 RECOMMENDATION: Approve as submitted. A-4 RESOLUTION NO. 19-04 RECITING THE FACT OF THE SPECIAL MUNICIPAL ELECTION HELD ON MARCH 2, 2004 AND DECLARING THE RESULTS AND SUCH OTHER MATTERS AS PROVIDED BY LAW RECOMMENDATION: Adopt Resolution 19-04. A-5 RESOLUTION NO. 21-04 ADOPTING AMENDMENTS AND ADDITIONS TO THE CITY OF MORRO BAY PERSONNEL RULES AND REGULATIONS AND RESCINDING RULES AND REGULATIONS IN CONFLICT THEREWITH RECOMMENDATION: Adopt Resolution 21-04. A-6 RESOLUTION NO. 20-04 APPROVING AUDIT CONTRACT FOR WASTEWATER TREATMENT PLANT FUND RECOMMENDATION: Adopt Resolution 20-04. C! 0 C MINUTES — MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 12, 2004 A-7 RESOLUTION NO. 22-04 APPROVING THE APPLICATION FOR GRANT FUNDS FOR THE PER CAPITA GRANT PROGRAM RECOMMENDATION: Adopt Resolution 22-04. A-8 RESOLUTION NO. 23-04 AUTHORIZING ASSIGNMENT OF LEASE AGREEMENT FOR LEASE SITES 87-88/87W-88W (OUTRIGGER RESTAURANT) FROM GEORGE LEAGE TO VIOLET LEAGE RECOMMENDATION: Adopt Resolution 23-04. A-9 RESOLUTION 24-04 AUTHORIZING EXECUTION OF A ONE-YEAR LEASE AGREEMENT WITH MORRO BAY COMMERCIAL FISHERMEN'S ORGANIZATION FOR THE USE OF LEASE SITE 130W-132W (OLD DRISCOLL'S DOCK) RECOMMENDATION: Adopt Resolution 24-04. A-10 RESOLUTION 25-04 AUTHORIZING EXECUTION OF A ONE-YEAR LEASE WITH JIM SILVA AND DAVID HAWORTH FOR THE USE OF LEASE SITE 133W (OLD DRISCOLL'S FISH MARKET) RECOMMENDATION: Adopt Resolution 25-04. A-11 RESOLUTION 26-04 AUTHORIZING ASSIGNMENT OF 1/3 INTEREST IN LEASE SITE 110-112 (GAFCO) FROM CHARLIE OGLE TO GEORGE LEAGE IN ADDITION TO A 5-YEAR EXTENSION OF SAID LEASE. RECOMMENDATION:Adopt Resolution 26-04. Mayor Yates pulled Item A-1 from the Consent Calendar in order to make a presentation. Councilmember Winholtz pulled Items A-5, A-8, A-9 and A-11 from the Consent Calendar. MOTION: Councilmember Peirce moved the City Council approve Items A-1, A-2, A-3, A-4, A-6, A-7, & A-10 of the Consent Calendar. The motion was seconded by Councilmember Peters and carried unanimously. (5-0) A-1 PROCLAMATION DECLARING APRIL 2004 AS "MONTH OF CHILD" Mayor, Council and Harbor Director Rick Algert were presented with drawings by the children of Kid's Club to celebrate the "Month of the Child". u 11 MINUTES — MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 12, 2004 A-5 RESOLUTION NO. 21-04 ADOPTING AMENDMENTS AND ADDITIONS TO THE CITY OF MORRO BAY PERSONNEL RULES AND REGULATIONS AND RESCINDING RULES AND REGULATIONS IN CONFLICT THEREWITH MOTION: Council Member Elliott moved that Item A-5 be moved to the end of the meeting for a more in-depth discussion. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) Councilmember Winholtz voiced some concerns to City Manager Bob Hendrix and Personnel Officer Ardith Davis over some training issues as well as specific wording issues. MOTION: Council Member Peirce moved the City Council approve Item A-5 of the Consent Calendar. The motion was seconded by Council Member Peters and carried unanimously. (5-0) A-8 RESOLUTION NO. 23-04 AUTHORIZING ASSIGNMENT OF LEASE AGREEMENT FOR LEASE SITES 87-88/87W-88W (OUTRIGGER RESTAURANT) FROM GEORGE LEAGE TO VIOLET LEAGE Councilmember Winholtz questioned the verbiage in the discussion paragraph of the staff report "(or at least nearly complete)". She would like that section deleted from the report. She then asked that the record reflect that she doesn't like that section of the report. MOTION: Councilmember Winholtz moved the City Council approve Item A-8 of the Consent Calendar. The motion was seconded by Councilmember Elliott and carried unanimously. (5-0) A-9 RESOLUTION 24-04 AUTHORIZING EXECUTION OF A ONE-YEAR LEASE AGREEMENT WITH MORRO BAY COMMERCIAL FISHERMEN'S ORGANIZATION FOR THE USE OF LEASE SITE 130W-132W (OLD DRISCOLL'S DOCK) Councilmember Winholtz asked who receives the monies gathered from the berthing of commercial vessels. Harbor Director Rick Algert responded that the City leases the entire dock to the Commercial Fisherman's Association so that all revenues from the dock go to the lessee. Councilmember Winholtz asked what the money collected is being used for. Mr. Algert responded that the monies are being used to offset day-to-day operating expenses. Councilmember Winholtz also questioned the "Restrictions and Permitted Uses — d. Waste Water" in the report. In other leases, other restricted items include pollution control; she feels the leases are inconsistent with each other. 11 MINUTES — MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 12, 2004 MOTION: Councilmember Winholtz moved the City Council approve Item A-9 of the Consent Calendar. The motion was seconded by Councilmember Elliott and carried unanimously. (5-0) A-11 RESOLUTION 26-04 AUTHORIZING ASSIGNMENT OF 1/3 INTEREST IN LEASE SITE 110-112 (GAFCO) FROM CHARLIE OGLE TO GEORGE LEAGE IN ADDITION TO A 5-YEAR EXTENSION OF SAID LEASE. Councilmember Winholtz is very supportive of the first half of the resolution but not the second half. MOTION: Councilmember Winholtz moved the City Council approve the Assignment of the Lease Site but not the Lease Extension of Item A -I I of the Consent Calendar. The motion died for lack of a second. Councilmember Elliott responded that he feels the time is minimal and shouldn't be an issue. MOTION: Councilmember Elliott moved the City Council approve Item A-11 of the Consent Calendar. The motion was seconded by Councilmember Peirce and carried with Councilmember Winholtz voting no. (4-1) ® B. PUBLIC HEARINGS, REPORTS & APPEARANCES B-1 ORDINANCE NO. 501 AMENDING THE LOCAL COASTAL PROGRAM AND ZONING ORDINANCE RELATING TO SECONDARY UNITS, GUESTHOUSES AND SATELLITE DISH ANTENNAS — FIRST READING AND INTRODUCTION Associate Planner Mike Prater stated that the report is a result of a Council request from last summer that Planning bring a second unit and satellite dish ordinance back; a guest house regulation has been added to the ordinance. Mayor Yates opened the hearing for public comment. There were no comments and Mayor Yates closed the hearing to the public. Consensus of the City Council was to support this Ordinance. MOTION: Councilmember Peters moved the City Council accept the Planning Commission's recommendation to adopt Ordinance No. 501; approve the First Reading and Introduction of Ordinance No. 501 by number and title only; and, continue this matter to the regular meeting of April 26, 2004 to conduct the second reading and adoption of Ordinance No. 501. The ® motion was seconded by Councilmember Peirce and carried unanimously. (5-0) 7 MINUTES — MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 12, 2004 ® B-2 APPROVAL OF THE MASTER PLAN AMENDMENT TO DEL MAR PARK FOR AN OFF -LEASH DOG AREA Recreation & Parks Director Andrea Lueker stated that the issue of an Off -Leash Dog Park has been discussed and prioritized for several years. A dog park sub -committee was formed to investigate a location. After a Public Hearing at the Recreation & Parks Commission meeting in November 2003 and a City Council meeting in November 2003, Del Mar Park was selected as the most feasible site. The dog park sub -committee was reconvened and recommended that the Master Plan revision begin in order to utilize the site. In her report to Council, Ms. Lueker also addressed some of the concerns voiced by the residents in attendance. She has observed at the El Chorro Dog Park that the noise from the animals is minimal — when dogs play together they tend not to bark. The Public Services Department reviewed the location and has no concerns with regard to run-off to the creek. In addition, the park will not impact the volleyball court at all. She also addressed the potential of dogfights. If the park were approved, a list of strict rules would be implemented that have proven successful at the El Chorro Dog Park; one of which would prohibit aggressive dogs from attending. Ms. Lueker recommended that City Council approve the Del Mar Park Master Plan revision to include an off -leash dog area. Mayor Yates opened the hearing for public comment. ® Jim Wood, citizen of Morro Bay, is not in favor of the location of the park. It is too close to the creek as well as to residences. He feels that dog owners should be able to use the beach to walk/run their dogs. Mayor Yates closed the hearing to the public. Councilmember Peirce asked how far the park would be from the Island Street homes. He cannot support the proposed location due to proximity to houses. Notice should have been given to residences. The City needs to look for another location. Councilmember Winholtz felt that if the homes and dog park are closer than 50 feet from the creek that there could be environmental issues. She was also concerned that the residences were never notified of the proposed park. She is in favor of a dog park; just objects to its location due to its proximity to the residences. She appreciates the time and effort the committee has put into this project and hopes that they will continue to meet and bring back a better location. Councilmember Elliott feels that the Island Street neighborhood should have been noticed. He also wondered why the specific location at Del Mar Park? And were there any other locations looked at? He feels that taking away such a large part of the park will be taking away from kids play space. He cannot support the location of the park due to ® its proximity to the residences. 0 MINUTES — MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 12, 2004 ® Mayor Yates is supportive of the dog park in concept but feels that the neighbors were there first and as such, their needs should be considered first. He cannot support the location of the park. Councilmember Peters was concerned that the park won't. be accessible to the handicapped. She agrees that dog owners who will use the park will self -police themselves. She proposed that the one larger park be split into two smaller parks: a small dog park and a large dog park, each located closer to each parking lot and farther away from the residences and allowing easier access to users. MOTION: Mayor Yates moved the City Council 1) reject the proposed off -leash dog park as proposed; 2) reaffirm support for an off -leash dog park; and, 3) support the off -leash dog park committee's efforts and encourage them to continue their work to find another suitable site away from residences. The motion was seconded by Councilmember Elliott and carried unanimously. (5-0) C. UNFINISHED BUSINESS C-I PROPOSED PROCESS IMPLEMENTING CITY COUNCIL POLICY DIRECTION REGARDING ADMINISTRATION OF CAPITAL PROJECTS ® Capital Projects Manager Bill Boucher proposed an approach to Capital Improvement Project management through a management team concept. The management team would .meet to develop project scopes and additional budget estimates before a project is submitted to the City Council for funding. This team would most likely be comprised of the Capital Project Manager, City Engineer, Chief Building Inspector, Planning Manager, Facilities Superintendent and representative(s) of the sponsoring department. It is envisioned that this approach should cut down on the risks of unexpected costs as well as provide a single unified approach to project development and project management. By utilizing professionals in their own fields who specialize in the various aspects of capital projects, cost overruns and time delays should be kept to a minimum. Mr. Boucher recommends the City Council consider this matter and direct staff to implement the proposed team project management proposal outlined in the staff report. rl U Councilmember Elliott feels that missing in the equation of the RFP process is that in the past, no existing conditions of wherever/whatever the project is. i.e.: type and age of building, location of project, etc... has been taken into consideration. An RFP needs to go out that allows contractors advance knowledge of any potential problems so that change orders can't drive the cost of the project up. The City needs honest and reliable bids based on all information available. He would like to see initial work and assessment be prepared by the professionals in Public Services who have the expertise and then go out to the other departments for their help with the particulars if necessary. 0 MINUTES — MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 12, 2004 ® Councilmember Winholtz concurs with the problems we have with the RFP's and does support the team concept. She feels that the staff report acknowledges that there will be a project manager who will do the initial evaluation before entering into the team situation, which Mr. Boucher acknowledged as true. Councilmember Peters also likes the team concept as it ensures that things don't fall through the cracks. She thinks the staff report defines a small workable committee. She also concurs that RFP's should go out with all information available so as to cut down on the cost overruns. Councilmember Peirce also feels the team concept is a good approach as long as there is a point person and we are able to get realistic costs for any individual project. Mayor Yates likes the team approach but at the same time wants to ensure accountability of who is in charge. He would like to see a staff report that reflects project accountability and management flow followed by a resolution, which would make it an official City policy. Mayor Yates requested and received a definition of capital improvement projects, which is a project that requires formal competitive bidding of a project of over $100,000. ® Mayor Yates requested that the definition's dollar amount be moved down to 525,000. MOTION: Mayor Yates moved the City Council approve the team management concept along with an amended capital improvement project management policy to include accountability and responsibility with a resolution memorializing the same. For the purposes of capital project management policies, this would apply to capital projects over 525,000. This amended item will be brought back to the April 26, 2004 council meeting. The motion was seconded by Councilmember Peters and carried unanimously. (5-0) D. NEW BUSINESS D-1 APPROVAL OF SITE SELECTION AND FEASIBILITY STUDY FOR A COMMUNITY POOL Recreation & Parks Director, Andrea Lueker, gave some history on Morro Bay's swimming pool status. In June 1999 the swimming pool that the City of Morro Bay along with Morro Bay High School operated was closed and then later physically removed due to water quality issues. In March 2001, developing a feasibility plan for a community pool became an important City goal. In September 2002, City Council approved the funding of a feasibility study with a $15,000 cap. Since that time, the Recreation & Parks Commission has spent a substantial amount of time reviewing a ® number of potential sites and came up with the two best alternatives: 220 Atascadero Road and Morro Bay High School. A feasibility study needs to be prepared in order to 10 MINUTES — MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 12, 2004 ® determine information as to the types of amenities needed and/or wanted in a community pool. Design and space requirements, estimated construction costs, estimated revenue generation and operating expenditures would also be addressed. In addition, should the project be approved and be ready to fund, grant applications will be looked at much more favorably if the feasibility study is completed. Ms. Lueker recommends that the City Council contract for a feasibility study for a community pool on the 220 Atascadero Road site. Councilmember Peters asked whether or not a selection of a site is necessary in order to complete the feasibility study. Ms. Lueker answered no; however, it does "give more bang for your buck". Without a site, you lose the ability to review construction costs, as they would vary too widely amongst different sites. Councilmember Peters' concern is based on the potential need to sell the property at 220 Atascadero Road. She next wondered if we could do this feasibility study on two sites and was answered that the study might be too watered down to be of any use. Councilmember Winholtz wondered if the site vs. pool costs could be separated. Mayor Yates supports the feasibility study on one location only; if not 220 Atascadero Road, then to send the item back for a new location. ® Councilmember Elliott questioned the projected uses of the pool. He is concerned that with the many entities interested in a community swimming pool, the citizens of Morro Bay might lose out on swimming time as that time could go to other organizations. Councilmember Peirce wants to go along with the feasibility study but is concerned that with the current economic situation, the 220 Atascadero Road will need to be sold. He would like to see other recommendations for sites. In addition, he would like to see the Recreation & Parks Commission investigate the annual costs to run a pool. Mayor Yates made the suggestion that Council discuss other potential sites for the pool Councilmember Peters loves the location; it is ideal. Unfortunately it is valuable and the City might have to sell it. The City currently has a need for a new Fire Station and that has to be a priority. She suggested waiting until the City knows more about the Fire Station situation. Councilmember Elliott figures that this type of construction has to go to a bond measure. That being said, a location must be defined and the 220 Atascadero Road is the only location. He doesn't like comparing the needs for a pool and the needs for a fire station. He lends his support to the feasibility study, attaching it to 220 Atascadero Road and seeing if the public is in support of it. ® Councilmember Peirce agrees with Councilmember Elliott's remarks other than we may need to sell the property and tying the pool to it may not be possible. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 12, 2004 ® Mayor Yates is in favor of selling 220 Atascadero Road. However, if Council wants to tie the pool to the property, he will back it; but, if it is selected as the pool site, he wants to ensure that the property will not be sold. Councilmember Winholtz is concerned about the budget and doesn't feel right about making these kinds of monetary decisions without knowing the budget situation. Mr. Hendrix brought up the fact that the site at Morro Bay High School is the 2"d alternative for the pool. Recreation & Parks Director Lueker said that in her initial discussions with the pool committee, that the school district is not interested in owning a pool at this time, but that they might entertain a notion of a City owned pool on their school site. Ms. Lueker also reiterated that an ironclad contract would have to be put into place that would stipulate percentage and times of usage. MOTION: Councilmember Peters moved the City Council approve the feasibility study at the Morro Bay High School site. The motion was seconded by Councilmember Peirce. Councilmember Elliott responded that there was no way he could commit that kind of money without questions being answered by the school district. ® Councilmember Peters withdrew her motion and Councilmember Peirce withdrew his second. 11 MOTION: Councilmember Peirce moved that the Recreation & Parks Director is directed reopen negotiations with the School District and begin initial discussions with Morro Bay High School and SLCUSD to see if there is an avenue we can pursue to have a swimming pool on school property. The motion was seconded by Councilmember Peters and carried unanimously. (5-0) D-2 DISCUSSION OF POLICY ALLOWING A FIVE -PERCENT ADVANTAGE TO CONTRACTORS LOCATED WITHIN THE CITY OF MORRO BAY Mayor Yates brought this item up for discussion in hopes of allowing local contractors the 5% advantage when bidding (formally and informally) on City projects that our local vendors already receive. Councilmember Elliot was concerned that although he supports the concept, it might be necessary to receive a legal opinion on this matter. Councilmember Peters thinks that other City's use of crediting back sales tax to the contractor might be away around a potential legal issue. , 12 MINUTES — MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 12, 2004 ® MOTION: Mayor Yates moved the City Council direct the City Attorney to research and bring back a legal opinion on the ability to award local contractors a 5% advantage. The motion was seconded by Councilmember Elliott and carried unanimously. (5-0) D-3 DISCUSSION OF SPECIAL ENCROACHMENT PERMITS POLICY Mayor Yates brought this item forward and requested the City Manager give Council some history on the issue. Mr. Hendrix stated that City Council has taken 2 prior actions of which the effect has been to disallow staffs ability to issue permits under the set of current circumstances. As such, we have encountered difficulties in ongoing projects where these encroachment permits are not allowed to be issued. Mayor Yates asks that Council rescind their previous motions and have staff bring back a new policy that will allow permits. Councilmember Elliott wished that common sense could be used in dealing with this issue.. The City has to stop giving encroachment permits to expand someone's house or yard during a construction or remodeling project. Councilmember Peters says the Council needs to clarify the goals of what Council is isasking staff to protect; which are 1) keeping parking; 2) pedestrian access availability, and, 3) safety vehicle accessibility. And staff must be given some leeway, as each case is different. Councilmember Winholtz agrees with Councilmember Peters. Councilmember Peirce agrees that each project needs to be looked at on a case -by -case basis, while using a common sense approach. MOTION: Mayor Yates moved the City Council rescind the previous two motions regarding special encroachment permits and direct staff to bring back, within 45 days, a policy incorporating the Council's stated goals. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) D-4 DISCUSSION OF COUNCIL POSITION ON COUNTY LIBRARY'S PROPOSED %< CENT SALES TAX INITIATIVE Councilmember Peters brought this item up due to the fact the Library system is requesting a %< cent sales tax be placed on the ballot and the money would go directly to the local County libraries. The Morro Bay library was funded directly by the Friends of the Library organization; they have already raised additional funding to add to the ® building, and are very active in supporting our library. To have a sales tax like this when we so desperately need a fire station would be devastating to our community. 13 MINUTES — MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 12, 2004 ® Councilmember Peters proposed that Council contact the Board of Supervisors stating our position that if the '/4 cent sales tax were approved, that it would not be specific to libraries. Mayor Yates opposes all tax increases; but, if a majority of Council supports a general tax to support the library, he will write the letter. Councilmember Winholtz is leaning towards supporting the %< cent sales tax go towards the library because it doesn't hurt anybody and could help our own local library in increased supplies as well as additional hours of operation. Councilmember Peters feels that the County hasn't been responsive to the needs of our local library. If passed, there is no guarantee how this money will be spent. She would like to see a letter written to the Board of Supervisors opposing this tax. Councilmember Peirce feels the City has too many other places our tax dollars need to go so he can't support the tax increase strictly for the libraries' use. He could potentially support a general tax. Councilmember Elliott stated the City owns the land and building and we have an involved Friends of the Library organization that we don't need this tax. He is opposed to it. He also feels that there are many more items needed in the City. He would even ® like to see making our library our own locally run library. Mayor Yates questioned the Council as to their support of a general tax. Councilmember Peirce doesn't feel that a sales tax in Morro Bay would pass; however, he feels a County wide general sales tax might pass. Councilmember Peters agrees; she cannot support a library only sales tax but could support a countywide general sales tax going to the ballot. Councilmember Elliott feels that if any County sales tax initiative were passed and monies collected, that the City of Morro Bay would continue to come out on "the short end of the stick". He cannot support any tax increase at this time MOTION: Councilmember Peters moved the City Council write a letter to the Board of Supervisors opposing to the County Library Sales Tax Increase Ballot Measure. The motion was seconded by Councilmember Elliott and carried with Councilmember Winholtz voting no. (4-1) The meeting adjourned at 10:59 p.m. Recorded by: ®Jamic Boucher Deputy City Clerk 14 ® Revised NOTICE OF SPECIAL MEETING NOTICE IS HEREBY GIVEN that the Morro Bay City Council will be holding a Special Closed Session Meeting on Monday, March 29, 2004 at 5:00 p.m. to be held in the City Hall Conference Room, 595 Harbor Street, Morro Bay, California. The City Council will be discussing: 1. GOVERNMENT CODE SECTION 54956.9(C); CONFERENCE WITH LEGAL COUNSEL DUE TO ANTICIPATED LITIGATION. Initiation of litigation exists based upon existing facts and the advice of legal counsel as to one (1) matter: City of Morro Bay vs. California State Parks and California Coastal Commission. ® ADDED: GOVERNMENT CODE SECTION 54956.8; REAL PROPETY TRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property as to one (1) parcel: 220 Atascadero Road The City Council will adjourn to open session to conduct a Joint City CounciUPlanning Commission meeting beginning at 6:00 p.m. and will be held at the Veterans' Memorial Building, 209 Surf Street, Morro Bay, California. The City Council will be meeting with the Planning Commission to discuss various topics. DATED: March 23, 2004 Ja 'e Boucher, Deputy City Clerk �, atopq` ® �'k` ["I 11 CITY OF MORRO BAY CITY COUNCIL/ PLANNING COMMISSION JOINT MEETING AGENDA Veterans' Memorial Building Joint Meeting 6:00 p.m. William Yates. Mayor Janice Peters, Vice -Mayor Dave Elliott, Council Member Bill Peirce, Council Member Betty Winholtz, Council Member CALL JOINT MEETING TO ORDER II. PLEDGE OF ALLEGIANCE III. ROLL CALL IV. ACCEPTANCE OF AGENDA V. WRITTEN COMMUNICATIONS 209 Surf Street, Morro Bay Monday, March 29, 2004 Ken Vesterfelt, Chairperson Don Doubledee, Vice -Chair John Barta, Commissioner Steve Carnes, Commissioner Sarah McCandliss, Commissioner VI. PRESENTATIONS Informational presentations are made to the Commission by individuals, groups or organizations, which are of a civic nature and relate to public planning issues that warrant a longer time than Oral Communications will provide. Based on the presentation received, any Planning Commissioner may declare the matter as a future agenda item in accordance with the General Rules and Procedures. Presentations should normally be limited to 15-20 minutes. None VII. ORAL COMMUNICATIONS: Members of the audience wishing to address the City Council and/or Commission on matters other than scheduled hearing items may do so when recognized by the Chairman; by standing and stating their name and address. Comments should be limited to three minutes. VIII. DUTIES AND RESPONSIBILITIES Pursuant to the Municipal Code Section 2.28.120 D., the Planning Commission shall meet with City Council twice each year to discuss proposed policies, programs, goals and objectives, budgeting, future planning, or any other planning matter requiring joint deliberation. Discussion Items Source of request is indicated in parenthesis at the end of each item. 1. Encroachment Permits clarification of City Council's action on February 23, 2004 (Staff) 2. Unreinforced Masonry Structures (URMS)(Planning Commission) 3. General Plan/Zoning Ordinance concurrent submittal to the Coastal Commission (Planning Commission) 4. Date for Sign Ordinance Presentation by the Planning Commission (Planning Commission) 5. Variance discretion (Councilperson Winholtz) 6. "Fishing village" or "small town atmosphere" size and bulk issues.(Councilperson W inholtz) 7. Other items that Council and Planning Commission members may wish to discuss I\. FUTURE AGENDA ITEMS X. ADJOURN CITY COUNCIL Adjourn to regularly scheduled City Council meeting at the Veterans Hall, 209 Surf Street, on Monday, April 12, 2004, at 6:00 p.m. U. ADJOURN PLANNING COMMISSION Adjourn to the next regularly scheduled Planning Commission meeting at the Veterans Hall, 209 Surf Street, on Monday, April 5, 2004, at 6:00 p.m. City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life. The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING — MARCH 8, 2004 CLOSED SESSION — MARCH 8, 2004 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA ® CS-1 GOVERNMENT CODE SECTION 54956.9(A); Conference with Legal Counsel regarding pending litigation - Brian Blanchard vs. City of Morro Bay, WCAB No. GRO 24526, 27, 28, 29 CS-2 GOVERNMENT CODE SECTION 54956.8, REAL PROPERTY TRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property as to one (1) parcel: • Pro e : Water Outfall Line Easement. Negotiating Parties: Duke Energy and the City of Morro Bay. Negotiations: Renegotiation and extension of terms and conditions of lease agreement. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. 11 PUBLIC SESSION — MARCH 8, 2004 ® VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCILMEMBERS ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period. the following rules shall be followed: • When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments are to be limited to three minutes. • All remarks shall be addressed to Council, as a whole, and not to any ® individual member thereof. • The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or staff. • Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering. • Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting. • Your participation in City Council meetings is welcome and your courtesy will be appreciated. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 772-6205. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS u A. CONSENT CALENDAR ® Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A -I PROCLAMATION COMMENDING AND HONORING POLICE CHIEF JOSEPH LOVEN ON HIS RETIREMENT; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. A-2 APPROVAL OF MINUTES FOR THE REGULAR MEETING ON FEBRUARY 23, 2004; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-3 CASH & INVESTMENT REPORT — JANUARY 2004; (FINANCE) RECOMMENDATION: Receive report for information. A-4 APPROVAL OF CITY PROJECT BIDDER'S LIST; (PUBLIC SERVICES) RECOMMENDATION: Approve the initial bidder's list. ® A-5 AWARD OF REQUEST FOR PROPOSAL CONTRACT FOR OPERATION AND MANAGEMENT OF MORRO BAY DIAL -A -RIDE AND TROLLEY SERVICES TO MV TRANSPORTATION; (ADMINISTRATION) RECOMMENDATION: Award Request for Proposal to MV Transportation. A-6 STATUS OF CURRENT EMPLOYEE VACANCIES, AND REQUEST FOR AUTHORIZATION TO RECRUIT FOR POLICE COMMANDER; (ADMINISTRATION) RECOMMENDATION: Receive the status of the current employee vacancies; and authorize the recruitment for the vacant Police Commander position. A-7 NOTICE OF COMPLETION FOR MONTE YOUNG PLAYGROUND PROJECT; (RECREATION & PARKS) RECOMMENDATION: Accept the Monte Young Playground Project as completed by Brinar Construction. A-8 CANCELLATION OF MARCH 22, 2004 CITY COUNCIL MEETING; (ADMINISTRATION) RECOMMENDATION: Cancel the March 22, 2004 City Council meeting. 3 ® A-9 PROCLAMATION DECLARING THE MONTH OF APRIL 2004 AS "FAIR HOUSING MONTH"; (PUBLIC SERVICES) RECOMMENDATION: Adopt Proclamation. A-10 RESOLUTION NO. 18-04 AUTHORIZING AGREEMENT TO TERMINATE _LEASE FOR LEASE SITES 129W-133W (DRISCOLL'S WHARF) AND PURCHASE EQUIPMENT; (HARBOR) RECOMMENDATION: Adopt Resolution No. 18-04. B. PUBLIC HEARINGS, REPORTS & APPEARANCES B-1 POTENTIAL TOURIST DEVELOPMENT AT THE EMBARCADERO MARKET STREET SITE AND ASSESSMENT OF MORRO BAY TOURISM MARKETING INFRASTRUCTURE; (PUBLIC SERVICES) RECOMMENDATION: Receive presentation, and direct staff accordingly. C. UNFINISHED BUSINESS C-1 REPORT ON COST OF PORTABLE POTTIES; (ADMINISTRATION) ® RECOMMENDATION: Discuss and direct staff accordingly. D. NEW BUSINESS D-1 COUNCILMEMBER REQUEST TO DISCUSS POLICY ON RETROFITTING BUILDINGS FOR EARTHQUAKE SAFETY; (CITY COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. D-2 COUNCILMEMBER REQUEST TO DISCUSS LACK OF RECYCLING ON CITY STREETS; (CITY COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. D-3 COUNCILMEMBER REQUEST TO DISCUSS PROCEDURE FOR APPEALS; (CITY COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. C 0 D4 COUNCILMEMBER REQUEST TO DISCUSS PUBLIC OUTREACH AND ® NOTICING; (CITY COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. E. ADJOURNMENT THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TIME SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 772-6200 FOR FURTHER INFORMATION. COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND ® AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST AT CITY HALL, LIBRARY, AND MILLS STATIONERY. Cl IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. 5 MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION —MARCH 8, 2004 ® CITY HALL CONFERENCE ROOM - 5:00 P.M. Vice -Mayor Peirce called the meeting to order at 5:00 p.m. PRESENT: William Peirce Vice -Mayor Dave Elliott Councilmember Janice Peters Councilmember Betty Winholtz Councilmember ABSENT: STAFF: CLOSED SESSION William Yates Robert Hendrix Robert Schultz Mayor City Manager City Attorney MOTION: Councilmember Winholtz moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Peters and unanimously carved. (4-0) Vice -Mayor Peirce read the Closed Session Statement. isCS-1GOVERNMENT CODE SECTION 54956.9(A); Conference with Legal Counsel regarding pending litigation - Brian Blanchard vs. City of Morro Bay, WCAB No. GRO 24526, 27, 28, 29 CS-2 GOVERNMENT CODE SECTION 54956.8. REAL PROPERTY TRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property as to one (1) parcel: • Property: Water Outfall Line Easement. Negotiating Parties: Duke Energy and the City of Morro Bay. Negotiations: Renegotiation and extension of terms and conditions of lease agreement. The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:50 p.m. MOTION: Councilmember Elliott moved the meeting be adjourned. The motion was seconded by Councilmember Peters and unanimously carried. (4-0) The meeting adjourned at 5:50 p.m. 2, 1 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 8.2004 ® VETERANS MEMORIAL HALL - 6:00 P.M. Vice -Mayor Peirce called the meeting to order at 6:00 p.m. PRESENT: William Peirce Vice -Mayor Dave Elliott Councilmember Janice Peters Councilmember Betty Winholtz Councilmember ABSENT: William Yates Mayor STAFF: Robert Hendrix City Manager Robert Schultz City Attorney Bridgett Bauer City Clerk Rick Algert Harbor Director Bruce Ambo Public Services Director Janeen Burlingame Management Analyst Mike Pond Interim Fire Chief Jim Koser Finance Director John DeRohan Acting Police Chief Joe Woods Acting Recreation & Parks Director ® ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR'S REPORTS & ANNOUNCEMENTS CLOSED SESSION REPORT - City Attorney Robert Schultz reported the City Council met in Closed Session, and no reportable action under the Brown Act was taken. PUBLIC COMMENT Juliana Epperly requested Council support for approval on easement permits for The Fuel Dock (aka HJ Saloon) in order to upgrade their benches. Lee Greenawalt announced there would be a dedication celebration to introduce the Estero Community Garden on Saturday, March 200' Jim Wood expressed his support for Item A-10 (Resolution Authorizing Agreement To Terminate Lease For Lease Sites 129W-133W (Driscoll's Wharf) And Purchase Equipment). Dan Hoffman stated the haul -out facilities in the City are closing which will be a revenue loss for the City. He requested the City Council support maintaining these facilities ® through the affordability of haul -out for the fishermen, sailors and recreational boaters that come into the harbor. 2 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 8, 2004 Jeremiah O'Brien requested Council's support on Item A-10. He said due to health problems, Mr. Driscoll has requested the Commercial Fishermen's Organization (CFO) acquire this site, and he is willing to turn over the lease to the City at a reasonable price. Mr. O'Brien stated the CFO is interested in the ice facility, the hoist area and the working area of the dock. He requested the City's support in maintaining the operation of this dock. Linna Thomas addressed Item D-1 (Councilmember Request To Discuss Policy On Retrofitting Buildings For Earthquake Safety) stating her building is a URM building. She reviewed the cost of upgrading the eight URM buildings in the City, and the financial burden it would cause the property owners. Ms. Thomas stated the current policy adopted by the City Council in December 1995 is responsible and appropriate for Morro Bay. Nick Franco, State Parks, stated they will not proceed on the campground project until the Coastal Commission has their hearing. He said the signs relating to the snowy plovers state the dates February 1 — September 30 will be changed to state March 1 — September 30. Mr. Franco stated their staff would continue to work with City staff and update the City Council. ® Frank DeVine addressed the slide and erosion hazard on Juniper Street stating this problem needs to be addressed with the property owners. He said there are other alternatives such as eminent domain and easements can be placed on the respective properties to facilitate the necessary infrastructure required. He said his neighbors would contact City officials either in writing or through their attorneys. Hershel Parker addressed the snowy plover situation. Kurk Najarian addressed Item D-1 and the cost of bringing URM buildings up to code. He said the owners would not be able to recapture the cost through their tenants rent. He said it would be a major hardship to retrofit these buildings. Craig Barbie addressed Item A-10 stating there are people who will buy docks, clean them out and shut the dock down which is a concern to local fishermen. He urged the City Council to approve Item A-10. John Lindsay stated Mr. Driscoll is forced to sell his business due to health problems. He said Mr. Driscoll reinvested a significant amount into this dock and upgraded the lease site. Mr. Lindsay stated if the Commercial Fishermen's Association were allowed to take over this lease site, it would help maintain the charm and heritage of Morro Bay as a fishing village. ® Bill Mickelson addressed Item D-1 stating it would be very difficult to afford to bring URM buildings up to code. 3` Ll MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 8, 2004 Ed Ewing stated the beaches belong to everybody, and the snowy plovers should be able to adjust to the area. He said this issue is a mismanaged plan. Louise Tucker addressed Item A-10 and requested Council accept Mr. Driscoll's offer. She said he has worked very hard and his health is such that he needs to be relieved of this responsibility. Ken Vesterfelt stated addressed Item D-2 (Councilmember Request To Discuss Lack Of Recycling On City Streets) stating the Car Show promotes recycling. He said even with the placement of recycle containers, people use them for trash, which contaminates the recyclables. Don Wooley addressed Item D-1 stating he purchased a URM building in town in 1999 on the basis of Council's ruling in 1995 not to proceed with retrofitting until the state required the upgrade. He said older concrete buildings are more dangerous than URM buildings. Jody Giannini requested Council support on Item A-10. He said it is a real asset to the community, and good for everybody. is Stan House expressed support for Item A-10. He said the snowy plover nesting period is the same each year, and the fencing has been extended greatly. Mr. House stated there are 17 State beaches in the Bay Area that are open to dogs. John Barta stated Measure F received fewer votes than signatures collected on the qualified petitions. He suggested those opposed to the system get involved in the process. Tom Laurie addressed the Duke Energy outfall lease noting it is a public document and should be discussed in a public forum. Nelson Sullivan stated he would like to speak without being monitored. He said he should have been arrested by federal enforcement since he was on federal property when arrested. Vice -Mayor Peirce closed the hearing for public comment. Vice -Mayor Peirce called for a break at 7:03 p.m.; the meeting resumed at 7:15 p.m. DECLARATION OF FUTURE AGENDA ITEMS — None. C 2 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 8, 2004 A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A -I PROCLAMATION COMMENDING AND HONORING POLICE CHIEF JOSEPH LOVEN ON HIS RETIREMENT; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. A-2 APPROVAL OF MINUTES FOR THE REGULAR MEETING ON FEBRUARY 23, 2004; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-3 CASH & INVESTMENT REPORT — JANUARY 2004; (FINANCE) RECOMMENDATION: Receive report for information. ® A4 APPROVAL OF CITY PROJECT BIDDER'S LIST; (PUBLIC SERVICES) RECOMMENDATION: Approve the initial bidder's list. C, A-5 AWARD OF REQUEST FOR PROPOSAL CONTRACT FOR OPERATION AND MANAGEMENT OF MORRO BAY DIAL -A -RIDE AND TROLLEY SERVICES TO MV TRANSPORTATION; (ADMINISTRATION) RECOMMENDATION: Award Request for Proposal to MV Transportation. A-6 STATUS OF CURRENT EMPLOYEE VACANCIES, AND REQUEST FOR AUTHORIZATION TO RECRUIT FOR POLICE COMMANDER; (ADMINISTRATION) RECOMMENDATION: Receive the status of the current employee vacancies; and authorize the recruitment for the vacant Police Commander position. A-7 NOTICE OF COMPLETION FOR MONTE YOUNG PLAYGROUND PROJECT; (RECREATION & PARKS) RECOMMENDATION: Accept the Monte Young Playground Project as completed by Brinar Construction. 5 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 8, 2004 A-8 CANCELLATION OF MARCH 22, 2004 CITY COUNCIL MEETING; (ADMINISTRATION) RECOMMENDATION: Cancel the March 22, 2004 City Council meeting. A-9 PROCLAMATION DECLARING THE MONTH OF APRIL 2004 AS "FAIR HOUSING MONTH'; (PUBLIC SERVICES) RECOMMENDATION: Adopt Proclamation. A-10 RESOLUTION NO. 18-04 AUTHORIZING AGREEMENT TO TERMINATE LEASE FOR LEASE SITES 129W-133W (DRISCOLL'S WHARF) AND PURCHASE EQUIPMENT; (HARBOR) RECOMMENDATION: Adopt Resolution No. 18-04. Vice -Mayor Peirce pulled Item A-1 in order to make a presentation to Police Chief Joseph Loven. ® MOTION: Councilmember Elliott moved the City Council approve Item A-1 of the Consent Calendar. The motion was seconded by Councilmember Winholtz and carved unanimously. (4-0) Councilmember Winholtz pulled Items A-5, A-8 and A-10 from the Consent Calendar. MOTION: Councilmember Peters moved the City Council approve the Consent Calendar with the exception of Items A-5, A-8 and A-10. The motion was seconded by Councilmember Winholtz and carried unanimously. (4-0) A-5 AWARD OF REQUEST FOR PROPOSAL CONTRACT FOR OPERATION AND MANAGEMENT OF MORRO BAY DIAL -A -RIDE AND TROLLEY SERVICES TO MV TRANSPORTATION; (ADMINISTRATION) Councilmember Winholtz asked for clarification on the drivers' pay rates. City Manager Robert Hendrix responded that prior to MV Transportation receiving their first contract with the City, they had guaranteed existing drivers who worked for Laidlaw with the same pay rate. MOTION: Councilmember Winholtz moved the City Council approve Item A-5 of the Consent Calendar. The motion was seconded by Councilmember ® Peters and carried unanimously. (4-0) 3 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 8, 2004 ® A-8 CANCELLATION OF MARCH 22, 2004 CITY COUNCIL MEETING; (ADMINISTRATION) Councilmember Winholtz stated she would like to hold the City Council meeting on March 22nd to discuss items that may not require action by the Council. Vice -Mayor Peirce, Councilmember Peters and Councilmember Elliott stated they would like to hold the next Council meeting when there is a full Council. MOTION: Councilmember Peters moved the City Council approve Item A-8 of the Consent Calendar. The motion was seconded by Councilmember Elliott and carried with Councilmember Winholtz voting no. (3-1) A-10 RESOLUTION NO. 18-04 AUTHORIZING AGREEMENT TO TERMINATE LEASE FOR LEASE SITES 129W-133W (DRISCOLL'S WHARF) AND PURCHASE EQUIPMENT; (HARBOR) Councilmember Winholtz asked about the lease sites and what takes place on each site. Harbor Director Rick Algert clarified the use of each lease site directly involved with this agreement. ® MOTION: Councilmember Winholtz moved the City Council approve Item A-10 of the Consent Calendar. The motion was seconded by Councilmember Elliott and carried unanimously. (4-0) B. PUBLIC HEARINGS, REPORTS & APPEARANCES B-1 POTENTIAL TOURIST DEVELOPMENT AT THE EMBARCADERO MARKET STREET SITE AND ASSESSMENT OF MORRO BAY TOURISM MARKETING INFRASTRUCTURE; (PUBLIC SERVICES) City Manager Robert Hendrix stated the City has acquired property known as the Embarcadero-Market Avenue site. The City sought assistance in finding the best way to engage the private sector in finding a development approach that most closely approaches the objectives of a) being self sufficient to the extent that it does not create new costs to be home out of current City revenues; b) creates a new City amenity to serve the needs of those needing hotel/meeting facility resources; and c) provide this new resource in a way that expands City visitation beyond traditional weekend/high season recreational visits. The report and presentation will provide recommendations for approaching the private sector regarding the physical development of the site and for conducting further research into the Morro Bay Tourism Marketing Infrastructure. Mr. Hendrix recommended the City Council a) approve the Request for Proposal (RFP) for both the Embarcadero- Market Avenue site and the Assessment of Morro Bay Tourism Marketing Infrastructure ® with any associated amendments; b) direct staff to make changes as necessary and publish the RFP's; and c) direct staff to return to the City Council with specific recommendations for the makeup and organization of proposed review committees. 7 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 8, 2004 Allan Kotin from Allan D. Kotin & Associates stated the key objectives for this meeting is to inform the public of the progress to date; identify major elements of the Request for Proposal (RFP) to be distributed; review the need for the tourist assessment study and how that need is addressed by the proposed RFP; and provide direction to staff for any follow-up in accomplishing these objectives. Mr. Kotin stated this is the beginning of the process, and nothing decided is irrevocable. He said the Council and the public would have a chance to review responses to RFP's before a selection is made. John Kaliski from Urban Studio -LA reviewed potential tourist development designs to be located at the Embarcadero Market Street site. He provided all design and cost estimates, and identified key advantages and disadvantages of each design. James Regan from James Regan and Associates reviewed the tourist assessment, the fiscal impact and preparation of the tourist assessment RFP. Vice -Mayor Peirce opened the hearing for public comment. Roger Ewing stated this proposed development would do nothing to enhance the quality of ® life that a lot of people have come to Morro Bay to appreciate. He said people want to maintain the laid back small town community. He said the City's infrastructure should be a priority, and a large hotel and convention center should be a long-term consideration. A] Hoyt stated tourism is a fact of life of Morro Bay. He said he is a retired architect, and representing a group that may respond to the RFP. Louise Tucker stated as a realtor, she tried to sell this property to an investor for this same purpose. She said she believes the City needs a convention center. Jeremy Beater stated there is a need for a convention center in the county. He said public input would be beneficial to a project such as this in order to bring something enriching to the quality of life in Morro Bay. Stan House stated paying consultants to research this proposed development is fruitless. He said the City should sell the property and put the money towards building a new fire station.,, Melody DeMeritt stated there are other priorities needed in the City such as a fire station, pool, and improved infrastructure. She said a conference center is usually preferred in a larger city or highly developed resort area that Morro Bay is not. Ms. DeMeritt stated the City Council should refer back to the RUDAT study acknowledging what people really want in the City. n U MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 8, 2004 Ed Biaggini stated he would like the City to appoint an ad -hoc committee to see if the City wants to move forward with the RFP process. He said the proposed development has too much meeting space for the number of rooms planned. Mr. Biaggini stated the Inn at Morro Bay presently runs a 90% occupancy rate. He said this proposed development would take away from existing businesses. Vice -Mayor Peirce closed the public comment hearing. Councilmember Elliott stated the City's infrastructure has been properly tended to. He said this type of facility has nothing to do with current hotel and restaurant business. Councilmember Elliott stated a conference center might invite people to return to Morro Bay for vacations. He said a project such as this would allow Morro Bay to remain as it is. Councilmember Winholtz stated a tourism RFP should be performed, however a hotel RFP should not be done until the City knows its tourism base and what potential there might be. She said more public input is needed for a development such as this. Councilmember Peters stated there are issues such as transportation that could be a problem for a large conference center. She said the City has other priorities to consider such as a ® new firehouse before a decision is made on this valuable property. Councilmember Peters stated the City should also consider this property for the parking it provides, or is that the best use for the property. She said a conference center could lend to small groups such as the Bird Festival. Councilmember Peters stated a marketing RFP would be a good idea and would give an objective view at what the City's marketing strategy could be. She said the City needs to get its money out of this property, and should perhaps pursue renting it in the interim. CJ Vice -Mayor Peirce stated he would like to see plans that could support a conference center with a minimum number of rooms. He said the only way the City will know if there is interest in a project such as this, is by sending out an RFP. Vice -Mayor Peirce stated he is in support of sending out an RFP for marketing study. MOTION: Councilmember Winholtz moved the City Council approve the Request for Proposal for the Assessment of Morro Bay Tourism Marketing Infrastructure with any associated amendments. The motion was seconded by Councilmember Peters. Councilmember Elliott stated he is not in support of this motion because it would be an extreme waste of staff time because a tourism study would not provide the information needed for this property. 6 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 8, 2004 Councilmember Peters stated a tourism study RFP would give a more universal look at where Morro Bay stands in the tourism market that the City would benefit in knowing. She said this study should be performed prior to a hotel study in order to make the appropriate decision. Vice -Mayor Peirce stated the City should know what the potential is for this property. Councilmember Winholtz stated the City should have support from the community on the idea of the development for this property prior to going out with RFP's. Councilmember Elliott said he supports going out with both RFP's or not wasting time on it at all. Councilmember Peters stated it is important to find out the potential for this property, and if takes both RFP's to do that, she will be in support of that. Councilmember Peters withdrew her second to the motion. The motion dies for lack of a second. ® MOTION: Councilmember Elliott moved the City Council approve the Request for Proposal (RFP) for both the Embarcadero-Market Avenue site and the Assessment of Morro Bay Tourism Marketing Infrastructure with any associated amendments. The motion was seconded by Councilmember Peters and carried with Councilmember Winholtz voting no. (3-1) E Vice -Mayor Peirce called for a break at 9:08 p.m.; the meeting resumed at 9:25 p.m. C. UNFINISHED BUSINESS C-1 REPORT ON COST OF PORTABLE POTTIES; (ADMINISTRATION) City Manager Robert Hendrix stated the City Council on October 27, 2003, requested staff research the purchase or lease of restroom sites in the downtown area. On November 24, 2003, the Council considered a preliminary list of sites. No specific action was taken regarding a restroom site at that time. Council did request that staff provide some information on the availability and cost of portable restrooms at a future meeting. Mr. Hendrix stated the variety and cost of pre -manufactured and portable restrooms is quite extensive. Mr. Hendrix recommended the City Council consider the information provided in the staff report, and provide direction to staff. 10 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 8, 2004 MOTION: Councilmember Peters moved the City Council direct staff to reinvestigate the Legends property, and contact the Chamber of Commerce and Downtown Merchants Association on site possibilities. The motion was seconded by Councilmember Winholtz and carried unanimously. (4-0) D. NEW BUSINESS D-1 COUNCILMEMBER REQUEST TO DISCUSS POLICY ON RETROFITTING BUILDINGS FOR EARTHQUAKE SAFETY; (CITY COUNCIL) Councilmember Peters stated she brought this item forward based on the article in The Tribune on which cities had retrofit requirements in place, and also the Planning Commission discussion that this might be something that should be reviewed again in light of the recent earthquake. She said she knew the cost of retrofitting a building is insurmountable for a small business, and she was hoping there was some way of helping with costs on a long-term basis. Councilmember Elliott stated if the City is going to mandate retrofitting, the City should pay for it. He said comparable to the damage in other cities, the damage in Morro Bay ® was minimal. Vice -Mayor Peirce stated since Morro Bay received minimal damage, he would rather not create a problem where we do not have a solution. No action was taken on this item. D-2 COUNCILMEMBER REQUEST TO DISCUSS LACK OF RECYCLING ON CITY STREETS; (CITY COUNCIL) Councilmember Winholtz stated the people of Morro Bay were one of the earliest and continues to be one of the most productive recyclers in the County. This is mainly due to our curbside recycling and household hazardous recycling center. There is one area, in which the City lags behind, and that is street and event recycling. Councilmember Winholtz stated she would like to see a comprehensive plan of where the trash bins are, where the recycling bins are, where we are lacking, and fill in the gaps. The IWMA is supportive in placing recycle containers downtown and in the parks. She said she would like to see a refundable deposit in the contract with event sponsors to guarantee recycling pick up just as garbage pick up is guaranteed; and, an internal policy for City events to have recycling containers present. Councilmember Elliott addressed concern with an increase in rates, and also mentioned ® that garbage ends up in recycle bins that cause the material to not be recyclable. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 8, 2004 Councilmember Peters stated there is a potential for educating people. She said we should try it and be specific about what is allowed in the containers. MOTION: Councilmember Winholtz moved the City Council direct staff to report on recycling at City permitted and City sponsored events. The motion was seconded by Councilmember Peters and carried unanimously. (4-0) D-3 COUNCILMEMBER REQUEST TO DISCUSS PROCEDURE FOR APPEALS; (CITY COUNCIL) Councilmember Winholtz stated the City Council receives appeals from the Planning Commission, and yet does not have a written policy about noticing the applicant or the steps involved in a hearing. The procedure the Council has used this past year has been consistent and clear; however, since it is not written, the details can and have varied from mayor to mayor. In addition, noticing the applicant as to when the hearing will occur and what procedure can be expected has not been consistent. Councilmember Winholtz proposed the City Council ask staff to put in writing the procedure followed by Council this year including applicable state required deadlines and designated contact person who shall notify the applicant when the hearing has been scheduled, and that it be made ® available to applicants when they file appeals. City Manager Robert Hendrix stated the City Council Policies and Procedures includes how a public hearing will be conducted, and an appeal is a public hearing. Vice -Mayor Peirce clarified that Councilmember Winholtz is requesting a handout to give to appellants in order to know of the process. No action was taken on this item. D-4 COUNCILMEMBER REQUEST TO DISCUSS PUBLIC OUTREACH AND NOTICING; (CITY COUNCIL) Councilmember Winholtz stated over the years, the City has kept the public informed through various methods and for various reasons. At one time there was an annual newsletter. Currently, notices go out in water bills regarding certain topics. Water bills are a money saving way to notify half to two thirds of the residents. Rightfully, the other residents feel "out of the loop." Councilmember Winholtz stated she would like to discuss a better way in communicating and attracting people. Councilmember Elliott stated this is a small community and can be handled in the local newspaper. He said the City does not have the budget to prepare and mail out a newsletter, and has done an excellent job in noticing the public. 12 u E MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 8.2004 Councilmember Peters stated hearings should be noticed in other ways than the water bill since not everyone receives a bill. Vice -Mayor Peirce stated there are various ways to obtain information on what is going on in the City without extra expense. Councilmember Winholtz stated she will bring this up at budget review. No action was taken on this item. Pei maagILIzlhgi in The meeting adjourned at 10:29 p.m. Recorded by: Bridgen Bauer City Clerk )Saµx t/ 13 ® City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life. The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING — FEBRUARY 23, 2004 VETERANS MEMORIAL HALL - 4:00 P.M. 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCILMEMBERS ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT PUBLIC COMMENT PERIOD - Members of the audience wishing to address the ® Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period, the -following rules shall be followed: • When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments are to be limited to three minutes. • All remarks shall be addressed to Council, as a whole, and not to any individual member thereof. • The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or staff. • Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering. • Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting. • Your°participation in City Council meetings is welcome and your courtesy will be appreciated. ® In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 772-6205. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES FOR THE REGULAR MEETING ON FEBRUARY 9, 2004; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 AUTHORIZATION FOR ATTENDANCE AT THE C-MANC ANNUAL MEETING IN WASHINGTON, DC; (HARBOR) RECOMMENDATION: Approve travel expenses from Harbor Department funds for a two -person delegation to attend C-MANC's Washington Week meetings. ® A-3 RESOLUTION NO. 13-04 DESIGNATING AUTHORIZED AGENTS FOR CITY WITH STATE OFFICE OF EMERGENCY SERVICES; (CITY ATTORNEY) Ej RECOMMENDATION: Adopt Resolution No. 13-04. B. PUBLIC HEARINGS, REPORTS & APPEARANCES B-I APPEAL OF PLANNING COMMISSION ACTION TO MODIFY A CONDITION OF APPROVAL ON TRACT 2285 - COLMER TRACT; (PUBLIC SERVICES) RECOMMENDATION: Uphold the decision of the Planning Commission and deny the appeal. B-2 CONTINUED PUBLIC HEARING ON THE GENERAL PLAN/LOCAL COASTAL PLAN UPDATE; (PUBLIC SERVICES) RECOMMENDATION: Open the public hearing; direct staff to return with General Plan/Local Coastal Plan map amendments that are consistent with existing land uses and the designations in the February 2004 draft; consider adopting Resolution No. 17-04 taking final action to approve the update and direct staff to forward the update to the California Coastal Commission for certification. 2 L1 C. UNFINISHED BUSINESS C-1 RESOLUTION NO. 16-04 OF COUNCIL POLICY ON REPORTING TO COUNCIL ON CAPITOL IMPROVEMENT PROJECT BUDGET OVERRUNS; (COUNCIL) RECOMMENDATION: Adopt Resolution No. 16-04. C-2 DISCUSSION OF POLICY REGARDING TRANSFER OF BUDGET LINE ITEMS FROM ONE LINE ITEM TO ANOTHER; (COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. C-3 COUNCIL DISCUSSION OF BUDGET POLICIES AND PROCEDURES; (COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. C-4 INFORMATIONAL ITEM ON BUDGET REPORTING; (COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. C-5 DISCUSSION OF RELATIONSHIP ISSUES WITH STATE PARKS REGARDING THEIR OPERATION OF LOCAL FACILITIES AND STATE PARK CAMPGROUND PROJECT; (COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. C-6 REPORT ON COST OF PORTABLE POTTIES; (ADMINISTRATION) RECOMMENDATION: Discuss and direct staff accordingly. D. NEW BUSINESS D-1 RESOLUTION NO. 15-04 AUTHORIZING APPLICATION FOR GRANT TO PURCHASE AND INSTALL AN ICE -MAKING MACHINE ON LEASE SITE 129W; (HARBOR) RECOMMENDATION: Adopt Resolution No. 15-04. D-2 CONSIDERATION OF SITE SELECTION AND FEASIBILITY STUDY FOR A COMMUNITY POOL; (RECREATION & PARKS) RECOMMENDATION: Approve the recommendation from the Recreation and Parks Commission regarding site selection and allow staff to contract for a feasibility study specific to the site selected. 3 D-3 DISCUSSION OF PLACING ALL CITY CAPITAL IMPROVEMENT ® PROJECTS UNDER THE PURVIEW OF THE PUBLIC SERVICES DEPARTMENT; (COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. D-4 DISCUSSION OF POLICY REGARDING "SPECIAL ENCROACHMENTS" IN RESIDENTIAL AREAS; (COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. D-5 DISCUSSION OF POLICY ALLOWING A FIVE -PERCENT ADVANTAGE TO CONTRACTORS LOCATED WITHIN THE CITY OF MORRO BAY; (COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. E. ADJOURNMENT THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TIME SET FOR THE MEETING. PLEASE REFER TO THE ® AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 772-6200 FOR FURTHER INFORMATION. E COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST AT CITY HALL, LIBRARY, AND MILLS STATIONERY. IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. 13 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — FEBRUARY 23, 2004 VETERANS MEMORIAL HALL - 4:00 P.M. Mayor Yates called the meeting to order at 6:00 p.m PRESENT: William Yates Mayor Dave Elliott Councilmember William Peirce Councilmember Janice Peters Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix Robert Schultz Bridgett Bauer Rick Algert Bruce Ambo Bill Boucher Greig Cummings Steve Knuckles Jim Koser Joe Loven Andrea Lueker City Manager City Attorney City Clerk Harbor Director Public Services Director Capital Projects Manager Planning Manager Fire Captain Finance Director Police Chief Recreation & Parks Director ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR'S REPORTS & ANNOUNCEMENTS CLOSED SESSION REPORT — There was no Closed Session report. PUBLIC COMMENT Candice Vittitow offered the website (www.cpr.ca.gov) as a new way to communicate with the governor about the budget. She also addressed Measure F stating the residents of Morro Bay are concerned with the City's economy. Ms. Vittitow requested everyone respect the picket lines of our local grocery stores. Dannie Rodgers -Tope stated the New Times article referring that Chamber of Commerce funds were used to promote the opposition of Measure F was incorrect. She also referred to the City street lighting project and noted this project is to encourage tourists and guests of the City to have a pedestrian -friendly environment. Ms. Tope said the City needs a revenue source to make it through the difficult budgetary times, and we need to work together and not divide because division means more conflict. MINUTES - MORRO BAY CITY COUNCIL is REGULAR MEETING — FEBRUARY 23, 2004 Bill Quigley referred to Measure F stating the citizens should have a representative council person who knows its residents and their issues. Mr. Quigley stated the Morro Bay Crossroad newsletter is insulting. Roxanne Mancini addressed Item D-2 (Consideration of Site Selection and Feasibility Study For a Community Pool) stating the 220 Atascadero Road site is ideal for a community pool because of its easy accessibility. She said a City pool should be kept separate from the school district. Jack Hansen asked for an update on the skating rink. He said Measure F is going to cost the City, and asked if there is a way the proponents can pay for the City expenses. Roger Ewing referred to the Sun -Bulletin article on the Mayor's "State of the City Address", and stated this should be made at a public meeting. Nelson Sullivan stated because the police and fire departments support the Council, he believes the Council has something to do with his arrest. He said the Crossroads newsletter is libel against him. is Roger Smiley stated proponents of Measure F are called political extremists on the website saveyourvote.com and in the newsletter Crossroads. He asked how much authority does the Mayor and Council have over their appointed boards and commissions. n U Melanie DeMeritt expressed concern with the last Planning Commission meeting and the granting of a variance. She said the City is building big block houses that move into setbacks that the City has declared. Ms. DeMeritt stated the City should value the town the way the citizens want it to be. Hershel Parker stated he is concerned the Council is being short-sighted in the delisting of the snowy plovers. He said the City should be friendly to its citizens along with its visitors. Mr. Parker stated Morro Bay could attract tourists without being a place where every square foot is built out, and where they prefer dogs on the dunes instead of a bird sanctuarv. Frank DeVine stated North Morro Bay has been mismanaged and unrepresentated from the rest of the City. He said North Main Street should be restricted to commercial or industrial development and not housing. Mr. DeVine requested the City Council stop the gross negligence of properly addressing dangerous public safety issues in North Morro Bay. 2 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — FEBRUARY 23, 2004 Joan Solo addressed Item D-2 stating there are concerns about locating a pool at the high school. She said the 220 Atascadero Road site is the only feasible location for a community pool. Barry Dorfman stated his focus is not on the Chamber of Commerce but the City's allocated funds to the Chamber. He also noted there is no written contract between the City and the Visitors Center. Ed Dumong expressed concern with the intersection of Radcliffe and Main Street. He also requested information on the removal of trees on Quintana Road. Mr. Dumong addressed the encroachment issue, and asked why permits continue to be issued. Daniel Hoffman stated an expenditure of funds once allocated under any contract and approved is an authorized expenditure. He said Measure F is taking the right away from citizens to vote. Brenda Agee Smiley stated it is a citizens right to put an issue on the ballot. She said the citizens of Morro Bay need to take back control of city government. ® John Barta stated the proponents of Measure F are trying to confuse the voters of Morro Bay by focusing on issues other than the facts of Measure F. He said Measure F is about taking away the power of the vote of the people. 11 Jeremiah O'Brien stated Morro Bay is the nicest town around. He said he hopes Measure F is the tempest in the teapot, and he does not understand why the City should be divided. Lynda Merrill stated she supports the feasibility study for a community pool at 220 Atascadero Road. She also addressed Item D-3 (Discussion Of Placing All City Capital Improvement Projects Under The Purview Of The Public Services Department) stating the Capital Projects Manager has enough to do. Ms. Merrill requested clarification on Item D-5 (Discussion Of Policy Allowing A Five -Percent Advantage To Contractors Located Within The City Of Morro Bay). She also addressed a website provided by opponents of Measure F that has content that allows subscribers to listen to proponents' conversations. Don Boatman stated the Crossroads newsletter has many inaccuracies, and distorts the truth. Jack McCurdy addressed the fiscal mismanagement of funds by the City to the Visitors Center. RI MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — FEBRUARY 23, 2004 Nancy Barta stated the citizens have the right to elect their City Council. She said she is offended by the false accusations made about the Crossroads newsletter. Stan House shared information he obtained on cities with districts. Juliana Epperly stated she is not in support of Measure F because it will affect her business. Cathy Novak stated she supports a community pool. Steve Mathieu thanked those who named AGP Video "Business of the Year". John Lomison, Treasurer for the Chamber of Commerce, stated the IRS 990 form shows accountability. Mandy Davis stated it should be a standard operational procedure to request an accountability of the funds paid by the City to the Chamber of Commerce. ® Mayor Yates closed the hearing for public comment. DECLARATION OF FUTURE AGENDA ITEMS Councilmember Winholtz requested to agendize the discussion on: 1) public outreach; 2) lack of recycling on city streets; and 3) procedure for appeals. Councilmember Peters requested to agendize the discussion on the policy on retrofitting buildings for earthquake safety. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES FOR THE REGULAR MEETING ON FEBRUARY 9. 2004; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. 4 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — FEBRUARY 23, 2004 A-2 AUTHORIZATION FOR ATTENDANCE AT THE C-MANC ANNUAL MEETING IN WASHINGTON, DC; (HARBOR) RECOMMENDATION: Approve travel expenses from Harbor Department funds for a two -person delegation to attend C-MANC's Washington Week meetings. A-3 RESOLUTION NO. 13-04 DESIGNATING AUTHORIZED AGENTS FOR CITY WITH STATE OFFICE OF EMERGENCY SERVICES; (CITY ATTORNEY) RECOMMENDATION: Adopt Resolution No. 13-04. Councilmember Peters pulled Item A-2 of the Consent Calendar. MOTION: Councilmember Peirce moved the City Council approve Items A-1 and A- 3 of the Consent Calendar. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) A-2 AUTHORIZATION FOR ATTENDANCE AT THE C-MANC ANNUAL ® MEETING IN WASHINGTON, DC; (HARBOR) Councilmember Peters stated dredging of our harbor is not in the President's budget for next year, and she said it is important to send representatives of the City to lobby for this funding. Councilmember Winholtz expressed concern with sending two representatives since in the past the City has sent one representative. Councilmember Peters stated the more people who go to represent the City, the more people you would reach to get the message of the importance of this funding. MOTION: Councilmember Peters moved the City Council approve Item A-2 of the Consent Calendar. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) Mayor Yates called for a break at 5:50 p.m.; the meeting resumed at 6:10 p.m. 11 5 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — FEBRUARY 23, 2004 B. PUBLIC HEARINGS, REPORTS & APPEARANCES B-1 APPEAL OF PLANNING COMMISSION ACTION TO MODIFY A CONDITION OF APPROVAL ON TRACT 2285 - COLMER TRACT; (PUBLIC SERVICES) Planning Manager Greig Cummings stated this public hearing item is to consider an appeal filed by an aggrieved person of the Planning Commission's decision to modify a condition of approval for Tract 2285. The amended condition allowed bonding for the three affordable units required for Tract 2285 and allowed the units to be built within three years of the final occupancy of the last three houses in the tract. The affordable units would need to be completed for the bond to be released. The appellant is dissatisfied that the project proponent is permitted to bond for the completion as a guarantee rather than construct the affordable units prior to final approval. If the City Council overturns the decision of the Planning Commission and denies the proposed bonding, then the project proponent would have to complete the construction of the affordable units prior to the final occupancy clearance for the last three houses in Tract 2285. Mr. Cummings recommended the City Council uphold the decision of the Planning Commission and deny the appeal. ® Mayor Yates opened the hearing for public comment. Grant Crowl, appellant, stated his grounds for the appeal is the Planning Commission went against the rulings of the City Council and approved giving Mr. Colmer a bond in lieu of finishing the three affordable homes as per his agreement to obtain permits to build his track of thirty luxury homes on Main, Morro, South and Olive Streets. He said he heard the City Council make it very clear to Mr. Colmer that he must finish all three affordable homes before or at the same finish date as the thirty luxury homes, or the certificate of occupancy on ihree of the luxury homes would be held until such time as the affordable homes would be finished and ready for occupancy. Mr. Crowl also stated Mr. Colmer will be demolishing an "already" affordable home in order to build the three he is required to build. This is a loss of one that will only net the City two affordable homes when in fact the City should be gaining three. Mr. Crowl stated his requested relief is that the City Council makes Mr. Colmer follow through with his agreement. Since the three affordable homes will not be finished on time, the City should hold the Certificate of Occupancy on the three luxury homes until the three affordable homes are completed and livable. Wayne Colmer, applicant, stated his request is reasonable. He said when his project was approved, he under -estimated the length of time it would take to locate a property to build three affordable houses. There were complicated street design issues and a number of redesigns to build on this property, which delayed the process. He said he has provided the City with sufficient guarantees that three affordable houses will be built. Mr. Colmer stated ® he is providing a completion bond in the amount of $400,000 per house to build homes that 0 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — FEBRUARY 23, 2004 will be sold for $219,000. Approval of the modification will allow the homes at Morro Coves to be occupied when finished; otherwise, they will sit vacant for a number of months. He said the community will receive no benefit by having unoccupied homes at Morro Cove until the houses at the Sunset Avenue property are completed. Ray McKelligott stated this property was originally zoned for commercial use until a group of citizens requested it be zoned for residential use. He said Mr. Colmer should have planned the first three units at Morro Cove to be affordable houses. Mr. McKelligott requested Council uphold the appeal. James Pauley stated affordable housing is an addition to the community and the City should move ahead with it. Brenda Agee Smiley stated Mr. Colmer made a promise to provide affordable housing over 3 years ago, and because he hasn't found the right property is not the City's fault. She said her concern is that he is leveling an already existing affordable home, and replacing with three affordable homes, which only supplies the City with two affordable homes. Ms. Smiley requested the City Council uphold the appeal. ® Ken Vesterfelt stated this development has been a business deal with the City for many years. He said holding up someone's permit is not going to allow people to come in and spend their money in this City. Gary Christiansen stated affordable housing should be a high priority. He said the applicant's request is reasonable. Wayne Colmer, applicant, stated he sought an affordable housing site since the approval of Tract 2285. Grant Crowl, appellant, stated he is against the delayed time frame to provide affordable housing. Mayor Yates closed the public comment hearing. Mayor Yates stated he is inclined to deny the appeal because Mr. Colmer has bought the property to build the affordable units. Councilmember Elliott stated his greatest concern is when someone makes a commitment and promise, they should uphold that promise. He is opposed to the requested timeframe and is inclined to uphold the appeal. 7 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — FEBRUARY 23, 2004 Councilmember Winholtz stated she also supports upholding the appeal partly in support of the previous City Council who approved this project. Councilmember Peters stated Morro Cove was allowed to be built all at once instead of phasing. She also said three of the houses at Morro Cove could be rented until the affordable houses are available. Councilmember Peirce stated he is also concerned with the timeframe to provide affordable houses and will uphold the appeal. MOTION: Councilmember Peters moved the City Council uphold the appeal of the Planning Commission action to modify. a Condition of Approval on Tract 2285. The motion was seconded by Councilmember Winholtz and carried with Mayor Yates voting no. (4-1) B-2 CONTINUED PUBLIC HEARING ON THE GENERAL PLAN/LOCAL COASTAL PLAN UPDATE; (PUBLIC SERVICES) ® Planning Manager Greig Cummings stated the entire draft of the updated General Plan/Local Coastal Plan dated February 2004 is before the City Council for review. This draft contains highlighted and strikethrough text to indicate the changes made since the November 17, 2003 draft. If the Council concurs with the suggested changes to the text, it is recommended that the policy document be approved. Amendments to the General Plan/Local Coastal Plan map will be considered by the City Council at upcoming meetings to allow the Council to focus on specific areas where map amendments are proposed. The proposed map amendments would bring the existing land uses in conformance with the General Plan/Local Coastal Plan land use designations. Mr. Cummings recommended the City Council open the public hearing; direct staff to return with General Plan/Local Coastal Plan map amendments that are consistent with existing land uses and the designations in the February 2004 draft; consider adopting Resolution No. 17-04 taking final action to approve the update and direct staff to forward the update to the California Coastal Commission for certification. Mayor Yates opened the hearing for public comment. Ray McKelligott stated the section on mobile homes should be deleted from the General Plan. Jack McCurdy stated this is almost a new -document that has not been reviewed by the public. He said procedural and substantive review is needed through public workshops. 3 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — FEBRUARY 23, 2004 Brenda Agee Smiley stated the Coastal Commission is very concerned with what is going on in Morro Bay including this update. She said the General Plan/Local Coastal Plan update promotes things that the residents of Morro Bay do not want in our small town atmosphere. Ms. Smiley urged the City Council to not approve Resolution No. 17-04, and return it to the Planning Commission for re -writing and full citizen input. John Barta stated public input was readily available at the Planning Commission meetings. James Pauley stated it makes sense to allow for public comment on this document. Mayor Yates closed the public comment hearing. Councilmember Peters stated there was public comment that went to the consultant's who prepared the first draft of the update. She said this document includes the original public input, the Planning Commission's input, and the comments that came to the Planning Commission that have all been incorporated and added into the update. Councilmember Peters stated there has been a lot of work put into this document and she does not support is the idea of starting all over again. Councilmember Winholtz stated the City has done a poor job in soliciting input on this document. She said there has been one public hearing in the past year, and there has been no public input on the substance of this document. Councilmember Winholtz stated she does not support approving this document tonight, and another public workshop should be scheduled. Councilmember Peirce stated he does not believe there will ever be the amount of public input that some would like to give on this document. He said there has been a tremendous amount of information and only a selected group of people who have commented on its content. Councilmember Elliott stated there has been a lot of review and input on this document. He said not many people will go to all of the board meetings to go through the review process, and will wait until it comes to the City Council meetings to comment. Councilmember Elliott stated this process should be finalized so it can be forwarded to the Coastal Commission. Mayor Yates called for a break at 9:14 p.m.; the meeting resumed at 9:28 p.m. Councilmember Peters reviewed suggested amendments to the General Plan/Local ® Coastal Plan. W ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 23, 2004 Councilmember Winholtz reviewed suggested amendments to the General Plan/Local Coastal Plan. She also requested Resolution No. 17-04 be amended by removing the July 2Is' date from the third paragraph. MOTION: Councilmember Elliott moved the City Council adopt amended Resolution No. 17-04 taking fmal action to approve the General Plan/Local Coastal Plan update with corrections, and direct staff to forward the update to the California Coastal Commission for certification. The motion was seconded by Councilmember Peirce and carried with Councilmember Winholtz voting no. (4-1) C. UNFINISHED BUSINESS C-1 RESOLUTION NO. 16-04 OF COUNCIL POLICY ON REPORTING TO COUNCIL ON CAPITOL IMPROVEMENT PROJECT BUDGET OVERRUNS: (COUNCIL) ® Mayor Yates stated this item is to create a policy whereas staff will report to Council on Capital Improvement Project budget overruns. Councilmember Winholtz requested clarification on paragraph 4 of Resolution No. 16-04. Mayor Yates amended paragraph 4 of Resolution No. 16-04 to read: "Whereas, the City Council wants to be informed of any overruns and direct where financial transfers will occur". Councilmember Elliott stated staff should take into consideration the nature of the location and adjacent properties, age of the facility and condition of the grounds when budgeting for a Capital Improvement Project. MOTION: Councilmember Elliott moved the City Council adopt Resolution No. 16-04 as amended approving Council policy on reporting to Council on capitol improvement project budget overruns. The motion was seconded by Councilmember Peters and carried unanimously. (5-0) C-2 DISCUSSION OF POLICY REGARDING TRANSFER OF BUDGET LINE ITEMS FROM ONE LINE ITEM TO ANOTHER; (COUNCIL) Mayor Yates stated this policy would give the City Council the authority to transfer budget ® line items from one line item to another. IN ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 23, 2004 Councilmember Elliott stated the City Council should have the authority to delineate budget transfers on special line item accounts that were specifically set-up by the Council. Councilmember Peirce stated he would like to ensure that staff only budgets what is needed and not over budget for contingencies. Councilmember Peters stated she would like to be assured that money that is unspent in an account at the end of the budget year be maintained and not spent because it is there. MOTION: Mayor Yates moved the City Council direct the City Attorney to come back with recommendations on budget line item transfers and a recommendation for resolution on authorization for the City Manager regarding budget transfers. The motion was seconded by Councilmember Elliott and carried with Councilmember Winholtz voting no. (4-1) C-3 COUNCIL DISCUSSION OF BUDGET POLICIES AND PROCEDURES; (COUNCIL) is No action was taken on this item. C-4 INFORMATIONAL ITEM ON BUDGET REPORTING; (COUNCIL) Councilmember Winholtz stated she requested this item on the agenda because a resident expressed concern about the accounting of $150,000 expenditure in this year's budget. The expenditure goes to the Morro Bay Visitor's Center at the Chamber of Commerce. MOTION: Councilmember Winholtz moved the City Council direct the City Attorney to draft a Memorandum of Understanding between the City of Morro Bay and the Chamber of Commerce effective for the next budget year. The motion was seconded by Councilmember Peters and carried with Mayor Yates voting no. (4-1) C-5 DISCUSSION OF RELATIONSHIP ISSUES WITH STATE PARKS REGARDING THEIR OPERATION OF LOCAL FACILITIES AND STATE PARK CAMPGROUND PROJECT; (COUNCIL) Councilmember Elliott stated he requested this item on the agenda to have a discussion of whether or not the Council wishes to proceed with an investigation of the State Parks recent actions as it effects the City residents, visitors, and revenues. n U MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — FEBRUARY 23, 2004 City Attorney Robert Schultz gave an update on the State Parks Campground Project. MOTION: Mayor Yates moved the City Council direct staff to no longer provide State Parks with boat rides to the sand spit. The motion was seconded by Councilmember Elliott and carried with Councilmember Winholtz voting no. (4-1) C-6 REPORT ON COST OF PORTABLE POTTIES; (ADMINISTRATION) This item was continued to the March 8, 2004 City Council meeting. D. NEW BUSINESS D-1 RESOLUTION NO. 15-04 AUTHORIZING APPLICATION FOR GRANT TO PURCHASE AND INSTALL AN ICE -MAKING MACHINE ON LEASE SITE 129W; (HARBOR) Harbor Director Rick Algert stated ice supply to fishing vessels is a critical service for ® the commercial fishing industry. Currently, ice is supplied at two sites in the harbor by delivery of large block ice from Oceano Ice Company. Locally, the block ice is ground prior to delivery in the vessels. Oceano Ice Company has notified these two sites that they are converting to a different ice making system and within the near future will no longer sell block ice. There is no other economically feasible alternative for purchasing block ice, potentially leaving the harbor without ice service. Staff has been working with the Liaison Committee for several years to investigate means to procure and install an ice -making machine in Morro Bay Harbor. The Liaison Committee funded $25,000 for preliminary engineering and permitting of an ice -making machine at the Driscoll's Wharf site in 2002. The project is to replace the existing icehouse on Lease Site 129W with a new ice making machine and bin storage/delivery facility. Mr. Algert recommended the City Council adopt Resolution No. 15-04 authorizing application for a grant with the Central California Joint Cable/Fisheries Liaison Committee for the purchase of an ice - making machine. MOTION: Councilmember Peters moved the City Council adopt Resolution No. 15-04 authorizing application for a grant with the Central California Joint Cable/Fisheries Liaison Committee for the purchase of an ice -making machine. The motion was ,seconded by Councilmember Elliott and carried unanimously. (5-0) 12 MINUTES - MORRO BAY CITY COUNCIL is REGULAR MEETING — FEBRUARY 23, 2004 D-2 CONSIDERATION OF SITE SELECTION AND FEASIBILITY STUDY FOR A COMMUNITY POOL; (RECREATION & PARKS) This item was continued to a City Council meeting in April 2004. D-3 DISCUSSION OF PLACING ALL CITY CAPITAL IMPROVEMENT PROJECTS UNDER THE PURVIEW OF THE PUBLIC SERVICES DEPARTMENT; (COUNCIL) Mayor Yates stated he requested this item in order to open discussion on placing all City Capital Improvement Projects under the purview of the Public Services Department. He said he is proposing this change in order to streamline the process and provide more accurate information on these projects. Councilmember Winholtz stated her concerns are with work overload on Public Services staff, and requested to receive input from staff. Councilmember Elliott stated the Public Services Department has the expertise on managing ® capital projects; however, it is up to the City Manager to give direction to staff. He said he supports the concept of this proposal. Councilmember Peirce stated he is concerned with the workload being placed on Public Services, but he is willing to try it. Councilmember Peters stated the City Manager should discuss this with staff and report back to Council with a presentation on how it will work. MOTION: Councilmember Elliott moved the City Council direct that Capital Improvement Projects are under the purview of the Public Services Department. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) D-4 DISCUSSION OF POLICY REGARDING "SPECIAL ENCROACHMENTS" IN RESIDENTIAL AREAS; (COUNCIL) Councilmember Elliott stated the problem of private encroachment on public property still exists. He said when he first brought this issue to Council's attention, his intent was that a resolution be passed that prohibited anything in the public right-of-way except those encroachments that were meant for public parking or pedestrian walkway. 13 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — FEBRUARY 23, 2004 Councilmember Peirce stated he has no problem with staff taking each request separately; however, there should be a mechanism for special circumstances. Councilmember Peters stated there should be a sunset placed on encroachments. She said enforcement is important because it involves a safety issue. Councilmember Winholtz stated parking is needed on the streets, and perhaps the City should be more conservative with encroachment permits. She said she would like to maintain the current policy and leave some flexibility. Councilmember Elliott stated the City will be involved in lawsuits if there is an accident on a private property encroachment. MOTION: Councilmember Elliott moved the City Council direct to eliminate staff issued special encroachment permits, and encroachment permits should only be allowed for on -street public property. The motion was seconded by Councilmember Peters and carried with Councilmember Winholtz voting no. (4-1) ® D-5 DISCUSSION OF POLICY ALLOWING A FIVE -PERCENT ADVANTAGE TO CONTRACTORS LOCATED WITHIN THE CITY OF MORRO BAY; (COUNCIL) This item was continued to a future City Council meeting. ADJOURNMENT The meeting adjourned at 11:04 p.m. Recorded by: / Bridgett Bauer City Clerk 14 ® City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of lifer The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING - FEBRUARY 9, 2004 CLOSED SESSION - FEBRUARY 9, 2004 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA CS-1 GOVERNMENT CODE SECTION 54956.9(A); CONFERENCE WITH ® LEGAL COUNSEL REGARDING PENDING LITIGATION Skaff vs. City of Morro Bay, USDC 02-6790 IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. CJ ® PUBLIC SESSION — FEBRUARY 9, 2004 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCILMEMBERS ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period, the following rules shall be followed: • When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments are to be limited to three minutes. ® • All remarks shall be addressed to Council, as a whole, and not to any individual member thereof. • The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or staff. • Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering. • Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting. • Your participation in City Council meetings is welcome and your courtesy will be appreciated. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 772-6205. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS Ll 2 ® A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 PROCLAMATION DECLARING SPAY DAY USA; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. A-2 APPROVAL OF MINUTES FOR THE REGULAR MEETINGS ON JANUARY 12. 2004 AND JANUARY 26, 2004, AND SPECIAL MEETING ON JANUARY 22, 2004; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-3 CASH & INVESTMENT REPORTS — NOVEMBER AND DECEMBER 2003; (FINANCE) RECOMMENDATION: Receive report for information. A-4 RESOLUTION NO. I1-04 APPROVING MID -YEAR BUDGET ADJUSTMENT; (FINANCE) ® RECOMMENDATION: Adopt Resolution No. 11-04. A-5 FORMATION OF AN AFFORDABLE HOUSING LOAN COMMITTEE; (PUBLIC SERVICES) RECOMMENDATION: Approve an Affordable Housing Loan Committee, in order to show readiness to implement a Housing Rehabilitation Program. A-6 AWARD OF CONTRACT FOR COMMUNITY DEVELOPMENT BLOCK GRANT CONSULTANT SERVICES; (PUBLIC SERVICES) RECOMMENDATION: Award the contract to California Engineering Company, contingent upon award of the Community Development Block Grant funds. A-7 RESOLUTION NO. 05-04 APPROVING COMMUNITY DEVELOPMENT BLOCK GRANT RELOCATION ASSISTANCE PLAN; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 05-04. ® A-8 REPORT ON STATUS OF RECORDS MANAGEMENT SOFTWARE PROGRAM AND CITY POLICY BOOK; (ADMINISTRATION) RECOMMENDATION: Receive report for information. A-9 RESOLUTION NO. 07-04 AMENDING SUMMER STREET WORK PROHIBITION TO INCLUDE TEN DAYS BEFORE CHRISTMAS AND HEAVY TOURIST IMPACT WEEKENDS; (MAYOR YATES) RECOMMENDATION: Adopt Resolution No. 07-04. A-10 RESOLUTION NO. 08-04 CREATING A POLICY FOR A ONE -WEEK NOTIFICATION TO BUSINESSES AND RESIDENTS PRIOR TO THE BEGINNING OF STREET WORK; (MAYOR YATES) RECOMMENDATION: Adopt Resolution No. 08-04. A-11 RESOLUTION NO. 09-04 DECLARING MORRO BAY AS A "BUSINESS FRIENDLY CITY'; (MAYOR YATES) RECOMMENDATION: Adopt Resolution No. 09-04. ® A-12 ADOPTION OF ORDINANCE NO. 500 ADDING A SECTION TO CHAPTER 3.08 OF THE MORRO BAY MUNICIPAL CODE TO PROVIDE FOR INFORMAL BIDDING PROCEDURES; (CITY ATTORNEY) RECOMMENDATION: Adopt Ordinance No. 500. A-13 RESOLUTION NO. 12-04 APPROVING USE AGREEMENT WITH SAN LUIS COASTAL UNIFIED SCHOOL DISTRICT; (RECREATION & PARKS) RECOMMENDATION: Adopt Resolution No. 12-04. A-14 APPROVAL OF MAYOR'S LETTER TO CAL TRANS REGARDING HIGHWAY 41 - ATASCADERO ROAD INTERSECTION; (CITY COUNCIL) RECOMMENDATION: Approve draft letter to Cal Trans regarding the Highway 41-Atascadero Road intersection. A-15 AMENDMENT TO JOB TITLE AND JOB SPECIFICATION -POLICE LIEUTENANT TO POLICE COMMANDER; (POLICE) RECOMMENDATION: Approve amendment to job title and specifications from Police Lieutenant to Police Commander. 13 • B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 RESOLUTION NO. 10-04 AUTHORIZING AN APPLICATION FOR GRANT FUNDING FROM THE GENERAL ALLOCATION OF THE COMMUNITY DEVELOPMENT BLOCK GRANT; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 10-04. B-2 PUBLIC HEARING ON MEASURE F — AN INITIATIVE MEASURE TO REPLACE CITYWIDE COUNCIL ELECTIONS WITH DISTRICT ELECTIONS; (CITY COUNCIL) RECOMMENDATION: Open hearing for public testimony. C. UNFINISHED BUSINESS C-1 REPORT ON COST OF PORTABLE POTTIES; (ADMINISTRATION) RECOMMENDATION: Receive report and provide direction as necessary. C-2 DISCUSSION OF FUNDING FOR FIRE DEPARTMENT TENT; (MAYOR YATES) is RECOMMENDATION: Discuss and direct staff accordingly. C-3 DISCUSSION OF RELATIONSHIP ISSUES WITH STATE PARKS INCLUDING THEIR OPERATION OF LOCAL FACILITIES; (CITY COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. D. NEW BUSINESS D-1 DRAFT RESOLUTION OF COUNCIL POLICY ON REPORTING TO COUNCIL ON CAPITOL IMPROVEMENT PROJECT BUDGET OVERRUNS: (MAYOR YATES) RECOMMENDATION: Discuss and direct staff accordingly. D-2 DISCUSSION OF POLICY REGARDING TRANSFER OF BUDGET LINE ITEMS FROM ONE LINE ITEM TO ANOTHER; (MAYOR YATES) RECOMMENDATION: Discuss and direct staff accordingly. C] 5 ® D-3 STATUS REPORT ON MORRO BAY FIRE STATION NO. 1; (FACILITIES) RECOMMENDATION: Receive report for information. r vale l 04" Vi�lrr THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TIME SET FOR THE MEETING. PLEASE REFER TO.THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 772-6200 FOR FURTHER INFORMATION. COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST AT CITY HALL, LIBRARY, AND MILLS STATIONERY. IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF ® YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. 1 0 ® MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION — FEBRUARY 9, 2004 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Yates called the meeting to order at 5:00 p.m PRESENT: William Yates Mayor Dave Elliott Councilmember William Peirce Councilmember Janice Peters Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix City Manager Robert Schultz City Attorney CLOSED SESSION MOTION: Councilmember Peirce moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Peters and unanimously carried. (5-0) Mayor Yates read the Closed Session Statement. ® CS-1 GOVERNMENT CODE SECTION 54956.9(A); CONFERENCE WITH LEGAL COUNSEL REGARDING PENDING LITIGATION Skaff vs. City of Morro Bay, USDC 02-6790 The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:20 p.m. MOTION: Councilmember Peirce moved the meeting be adjourned. The motion was seconded by Councilmember Peters and unanimously carried. (5-0) The meeting adjourned at 5:20 p.m. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 9, 2004 VETERANS MEMORIAL HALL - 6:00 P.M. C1 Mayor Yates called the meeting to order at 6:00 p.m PRESENT: William Yates Mayor Dave Elliott Councilmember William Peirce Councilmember Janice Peters Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix Robert Schultz Bridgett Bauer Rick Algert Bruce Ambo Frank Cunningham Joan Drake Clyde Ganes Mike Pond Jun Koser Joe Loven Andrea Lueker Joe Woods City Manager City Attorney City Clerk Harbor Director Public Services Director City Engineer Public Services, Admin Technician Building Official Interim Fire Chief Finance Director Police Chief Recreation & Parks Director Facilities Superintendent ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR'S REPORTS & ANNOUNCEMENTS CLOSED SESSION REPORT - City Attorney Robert Schultz reported the City Council met in Closed Session, and no reportable action under the Brown Act was taken. PUBLIC COMMENT Juliana Epperly shared pictures of the benches she has proposed for Morro Bay Boulevard. Suedene Walker, past Executive Director for the Chamber of Commerce, stated the Chamber of Commerce accounting system has two separate accounts: one for the Chamber of Commerce and one for the Visitor Center. Mandy Davis requested the City consider placing a traffic -slowing device on the 200 block of Main Street. She said that numerous animals have been hit due to accelerated speeds. 2 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 9, 2004 Doris Murray asked why the Measure F issue is on the agenda. Brenda Agee -Smiley stated Barry Dorfman is in the hospital and Jack McCurdy will read his statement. Jack McCurdy read a statement from Dr. Dorfman regarding the Chamber of Commerce accounting. Hershel Parker addressed the City's legal representation of the Pacific Legal Foundation (PLF) and the protection of the snowy plover. He said the long-term agenda of the PLF is to protect the rights of beachfront property owners. Mr. Parker stated as a Morro Bay taxpayer he is humiliated and outraged that his tax dollars are being used for the reckless power block that is being shared with the PLF. David Nelson stated he does not understand why the City cannot provide a cross -out version of the public review draft of the General Plan. He also said the City is not complying with Measure P (Advisory Vote on the Morro Bay Power Plant). ® Grant Crowl expressed opposition to the City Council holding a public hearing on Measure F. He said the City Council is using taxpayer money unjustly to televise coverage to provide their side of the issue. Nelson Sullivan stated having Measure F on the agenda is negative, and the City Council should speak at the podium like the rest of the audience. He also noted a development is being proposed for the Tri-W property: Phil Hill stated an audit of the Chamber of Commerce accounting is a good idea. Don Boatman stated he demands a full accounting of the money that the City has given away with no accountability over the last few years. He said this money should come back to the city taxpayers. Jack Hansen expressed concern over the negative attitude being displayed at this meeting. Ken Vesterfelt stated the next Cruisin' Car Show is sold out with over 460 cars being displayed. Lawrence McKay stated he is proud of his City and those who represent the City ® Garry Johnson stated he is proud of his City and the services they provide. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 9, 2004 John Barta, Member of the Planning Commission, stated the numbers that were derived in the General Plan includes the number of vacant lots as well as density in zoning. Lynda Merrill stated she thought watching over the snowy plover was to be non- controversial. She also said she is opposed to the Measure F hearing which should have a neutral moderator. Hank Roth expressed appreciation for what the City Council does. Ed Sylvester asked why the snowy plovers have to be protected when in the 1950's people used to drive on the beach. Mayor Yates closed the hearing for public comment. DECLARATION OF FUTURE AGENDA ITEMS - None. A. CONSENT CALENDAR ® Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 PROCLAMATION DECLARING SPAY DAY USA; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. A-2 APPROVAL OF MINUTES FOR THE REGULAR MEETINGS ON JANUARY 12, 2004 AND JANUARY 26, 2004, AND SPECIAL MEETING ON JANUARY 22, 2004; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-3 CASH & INVESTMENT REPORTS — NOVEMBER AND DECEMBER 2003; (FINANCE) RECOMMENDATION: Receive report for information. A-4 RESOLUTION NO. 11-04 APPROVING MID -YEAR BUDGET ADJUSTMENT; (FINANCE) RECOMMENDATION: Adopt Resolution No. 11-04. I, ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - FEBRUARY 9, 2004 A-5 FORMATION OF AN AFFORDABLE HOUSING LOAN COMMITTEE; (PUBLIC SERVICES) RECOMMENDATION: Approve an Affordable Housing Loan Committee, in order to show readiness to implement a Housing Rehabilitation Program. A-6 AWARD OF CONTRACT FOR COMMUNITY DEVELOPMENT BLOCK GRANT CONSULTANT SERVICES; (PUBLIC SERVICES) RECOMMENDATION: Award the contract to California Engineering Company, contingent upon award of the Community Development Block Grant funds. A-7 RESOLUTION NO. 05-04 APPROVING COMMUNITY DEVELOPMENT BLOCK GRANT RELOCATION ASSISTANCE PLAN; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 05-04. ® A-8 REPORT ON STATUS OF RECORDS MANAGEMENT SOFTWARE PROGRAM AND CITY POLICY BOOK; (ADMINISTRATION) RECOMMENDATION: Receive report for information. A-9 RESOLUTION NO. 07-04 AMENDING SUMMER STREET WORK PROHIBITION TO INCLUDE TEN DAYS BEFORE CHRISTMAS AND HEAVY TOURIST IMPACT WEEKENDS; (MAYOR YATES) RECOMMENDATION: Adopt Resolution No. 07-04. A-10 RESOLUTION NO. 08-04 CREATING A POLICY FOR A ONE -WEEK NOTIFICATION TO BUSINESSES AND RESIDENTS PRIOR TO THE BEGINNING OF STREET WORK; (MAYOR YATES) RECOMMENDATION: Adopt Resolution No. 08-04. A-11 RESOLUTION NO. 09-04 DECLARING MORRO BAY AS A "BUSINESS FRIENDLY CITY'; (MAYOR YATES) RECOMMENDATION: Adopt Resolution No. 09-04. C] 5 I'] MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 9, 2004 A-12 ADOPTION OF ORDINANCE NO. 500 ADDING A SECTION TO CHAPTER 3.08 OF THE MORRO BAY MUNICIPAL CODE TO PROVIDE FOR INFORMAL BIDDING PROCEDURES; (CITY ATTORNEY) RECOMMENDATION: Adopt Ordinance No. 500. A-13 RESOLUTION NO. 12-04 APPROVING USE AGREEMENT WITH SAN LUIS COASTAL UNIFIED SCHOOL DISTRICT; (RECREATION & PARKS) RECOMMENDATION: Adopt Resolution No. 12-04. A-14 APPROVAL OF MAYOR'S LETTER TO CAL TRANS REGARDING HIGHWAY 41 - ATASCADERO ROAD INTERSECTION; (CITY COUNCIL) RECOMMENDATION: Approve draft letter to Cal Trans regarding the Highway 41-Atascadero Road intersection. A-15 AMENDMENT TO JOB TITLE AND JOB SPECIFICATION -POLICE LIEUTENANT TO POLICE COMMANDER; (POLICE) RECOMMENDATION: Approve amendment to job title and specifications from Police Lieutenant to Police Commander. Councilmember Peters pulled Item A-1 from the Consent Calendar; Councilmember Winholtz pulled Items A-9, A-14 and A-15. MOTION: Councilmember Peirce moved the City Council approve the Consent Calendar with exception of Items A-1, A-9, A-14 and A-15. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) A-] PROCLAMATION DECLARING SPAY DAY USA; (ADMINISTRATION) Councilmember Peters announced this item for public information, and noted the importance of spaying/neutering of pets. MOTION: Councilmember Peters moved the City Council approve Item A-1 of the Consent Calendar. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) 3 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 9, 2004 A-9 RESOLUTION NO. 07-04 AMENDING SUMMER STREET WORK PROHIBITION TO INCLUDE TEN DAYS BEFORE CHRISTMAS AND HEAVY TOURIST IMPACT WEEKENDS; (MAYOR YATES) Councilmember Winholtz expressed concern with putting in the number of days on this resolution. MOTION: Councilmember Peirce moved the City Council approve Item A-9 of the Consent Calendar. The motion was seconded by Councilmember Elliott and carried unanimously. (5-0) A-14 APPROVAL OF MAYOR'S LETTER TO CAL TRANS REGARDING HIGHWAY 41 - ATASCADERO ROAD INTERSECTION; (CITY COUNCIL) Councilmember Winholtz expressed support for approval of this letter. MOTION: Councilmember Winholtz moved the City Council approve Item A-14 of the Consent Calendar. The motion was seconded by Councilmember ® Peirce and carried unanimously. (5-0) A, 15 AMENDMENT TO JOB TITLE AND JOB SPECIFICATION - POLICE LIEUTENANT TO POLICE COMMANDER; (POLICE) Councilmember Winholtz stated she does not support the change in job title because it could transpire into a request for increase in salary. MOTION: Councilmember Elliott moved the City Council approve Item A-15 of the Consent Calendar. The motion was seconded by Councilmember Peirce and carried with Councilmember Winholtz voting no. (4-1) Mayor Yates called for a break at 7:15 p.m.; the meeting resumed at 7:35 p.m. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 RESOLUTION NO. 10-04 AUTHORIZING AN APPLICATION FOR GRANT FUNDING FROM THE GENERAL ALLOCATION OF THE COMMUNITY DEVELOPMENT BLOCK GRANT; (PUBLIC SERVICES) Public Services Director Bruce Ambo stated the State of California's Department of Housing and Community Development (HCD) has issued a Notice of Funding ® Availability under the 2003-2004 CDBG General Allocation. The Department will make 7 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 9, 2004 $27 million available in the form of grants to small cities and counties for CDBG eligible activities such as housing, public works and community facilities. The CDBG Program is a competitive funding program. Mr. Ambo stated the general age of structures gives an indication of the quality of a city's housing stock. About 16% of the housing units in Morro Bay have been built since 1990 and are in sound condition. Conversely, one - quarter of the housing stock is more than about 40 years old. Many of these units may be in need of some rehabilitation. The City is applying for up to $500,000, which can be used to create a housing rehabilitation program. The program will provide no -interest loans to owner -occupied households and low -interest loans to renter -occupied households within the targeted -income group. Funding for this program may be available through the CDBG General Allocation. The application for this grant is due February 13, 2004; awards will be announced by April 30, 2004; and funds will be available 60-90 days later, if not earlier. Mr. Ambo recommended the City Council: 1) open the hearing for public comment; 2) adopt Resolution No. 10-04 approving an Application for Funding in the amount of $330,605 and the Execution of a Grant Agreement and any amendments thereto from the General Allocation of the State CDBG Program; 3) allocate $10,000 ® from previous CDBG program income as the local working capital; and 4) direct staff to return with a resolution amending the Master Fee Schedule for affordable housing fee waivers. C, J Mayor Yates opened the hearing for public comment. Hank Roth expressed support for application for funding through CDBG in order for homeowner's to obtain low -interest loans to upgrade their homes. Mayor Yates closed the public comment hearing. MOTION: Councilmember Peirce moved the City Council adopt Resolution No. 10-04 approving an Application for Funding in the amount of $330,605 and the Execution of a Grant Agreement and any amendments thereto from the General Allocation of the State CDBG Program; allocate $10,000 from previous CDBG program income as the local working capital; and, direct staff to return with a resolution amending the Master Fee Schedule for affordable housing fee waivers. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) 0 E Cl MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 9, 2004 B-2 PUBLIC HEARING ON MEASURE F — AN INITIATIVE MEASURE TO REPLACE CITYWIDE COUNCIL ELECTIONS WITH DISTRICT ELECTIONS; (CITY COUNCIL) Mayor Yates invited the public for their viewpoints on Measure F - An Initiative Measure To Replace Citywide Council Elections With District Elections. Mayor Yates opened the hearing for public comment. The following people spoke in support of Measure F: David Nelson, Brenda Agee - Smiley, Nelson Sullivan, Hershel Parker, Roger Ewing, Mandy Davis, Doris Murray, Bill Quigley, Bill Davies, Christine Granados, Roger Smiley, Beverly Abbey, Phil Hill, Art Stansbury, Grant Crowl, Don Boatman, George Contento, Norman Risch, Lynda Merrill, and Betty Winholtz. The following people spoke in opposition of Measure F: Kim Kimball, Lawrence McKay, Janice House, John Baker, Joy Gadbois, Stan House, Margaret O'Neal, Juliana Epperly, Jim Wood, Phil Johnson, Hank Roth, Jack Hansen, Garry Johnson, Ed Sylvester, Nancy Barta, Dick Sylvester, Robert Fiore, John Barta, Nancy Johnson, Linda Donnelly, Ed Dumong, Ken Vesterfelt, John Lomison, Janice Peters, Bill Peirce, Dave Elliott, and William Yates. Melody DeMeritt and Kim Valois commented on Measure F with no opinion in support or opposition of the measure. Mayor Yates closed the public comment hearing. No further action was taken on this item. Mayor Yates called for a break at 9:25 p.m.; the meeting resumed at 9:39 p.m. C. UNFINISHED BUSINESS C-1 REPORT ON COST OF PORTABLE POTTIES; (ADMINISTRATION) This item was continued to the February 23, 2004 City Council meeting. G'] ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 9, 2004 C-2 DISCUSSION OF FUNDING FOR FIRE DEPARTMENT TENT; (MAYOR YATES) City Manager Robert Hendrix stated funding for the Fire Department tent is coming out of the department's operating budget, and the City expects to be reimbursed in the short run for these operating expenses. He said at year-end, there would be an adjustment to the budget to reflect the expenditures and the revenue to offset them. Mayor Yates stated the tent at the Fire Department is a result of the earthquake and is an emergency expense.. The Fire Department will not be able to take this unforeseen emergency expense from their operating budget and maintain services without cutting something else from the operating budget. Mayor Yates stated emergency reserves were designed to take care of urgent, unforeseen expenses like this. No action was taken on this item. C-3 DISCUSSION OF RELATIONSHIP ISSUES WITH STATE PARKS INCLUDING THEIR OPERATION OF LOCAL FACILITIES; (CITY ® COUNCIL) This item was continued to the February 23, 2004 City Council meeting. D. NEW BUSINESS D-1 DRAFT RESOLUTION OF COUNCIL POLICY ON REPORTING TO COUNCIL ON CAPITOL IMPROVEMENT PROJECT BUDGET OVERRUNS; (MAYOR YATES) This item was continued to the February 23, 2004 City Council meeting. D-2 DISCUSSION OF POLICY REGARDING TRANSFER OF BUDGET LINE ITEMS FROM ONE LINE ITEM TO ANOTHER; (MAYOR YATES) This item was continued to the February 23, 2004 City Council meeting. D-3 STATUS REPORT ON MORRO BAY FIRE STATION NO. 1; (FACILITIES) Facilities Superintendent Joe Woods stated the Fire Station Improvements Project (CIP 82-06) began with the City Council allocating $86,000 for improvements to Mono Bay Fire Station No. 1. Improvements included engine bay re -roof, replacement of windows, ® lighting and electrical, remodel of locker room, bathroom, shower, sleeping quarters, 10 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 9, 2004 enclosed carport with roll -up door, and secured lot with fencing. During the process of CIP 82-06, the San Simeon Earthquake hit on December 22, 2003. As a result, staff was in a position to reevaluate the fire station engine bay and decided to contract with Applied Engineering for the structural analysis. Applied Engineering has determined that the engine bay can be retrofitted and the cost is estimated at $300,000. As of now, CIP #82-06 is on hold and the fire station engine bay is non -operational. Mr. Woods recommended the City Council consider this matter and direct staff accordingly. Councilmember Peters stated an investigation of interim solutions should be explored. Councilmember Peirce stated the City should do away with the tents housing the engines. He said Council should direct staff to discontinue working on the capital project, and figure out how to finance a fire station. Councilmember Elliott stated due to the response time, the City needs two fire stations. He said the City should consider the acre lot in Cloisters Subdivision as an alternate site. Councilmember Winholtz stated she agrees with Council comments. ® Mayor Yates stated staff should consider all possible alternatives in order to have the fire station back in running order. MOTION: Councilmember Winholtz moved the City Council moved the City Council cancel the Fire Station Improvement Project (CIP #82-06) in the amount of $60,414. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) The City Council also directed staff to report -back on alternatives relating to the repair and replacement of the fire station. ADJOURNMENT The meeting adjourned at 10:55 pm Recorded by: Bridgett Bauer City Clerk E ® City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life. The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING — JANUARY 26, 2004 CLOSED SESSION — JANUARY 26, 2004 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA CS-1 GOVERNMENT CODE SECTION 54956.8, REAL PROPERTY TRANSACTIONS. -- Instructing City's real property negotiator regarding the ® price and terms of payment for the purchase, sale, exchange, or lease of real property as to two (2) parcels. Property: 220 Atascadero Road Negotiating Parties: Don and Mary Puett and City of Morro Bay Negotiations: Lease Terms and Conditions and/or Voluntary Sale Property: Lease Site 129W-133W Negotiating Parties: Gerry Driscoll and City of Morro Bay Negotiations: Lease Terms and Conditions and/or Voluntary Sale IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. PUBLIC SESSION — JANUARY 26, 2004 ® VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCILMEMBERS ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period, the following rules shall be followed: • When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments are to be limited to three minutes. • All remarks shall be addressed to Council, as a whole, and not to any individual member thereof. • The Council respectfully requests that you refrain from making slanderous, ® profane or personal remarks against any elected official, commission and/or staff. • Please refrain from public displays'or outbursts such as unsolicited applause, comments or cheering. • Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting. • Your participation in City Council meetings is welcome and your courtesy will be appreciated. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 772-6205. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A -I PROCLAMATION COMMENDING FIRE CHIEF JEFFREY F. JONES ON HIS ® TWENTY-FOUR YEARS OF SERVICE TO THE CITY OF MORRO BAY; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. u A-2 APPROVAL OF MINUTES FOR THE REGULAR MEETING ON JANUARY 12, 2004; (ADMINISTRATION) RECOMMENDATION: This item has been pulled from the agenda. A-3 CASH & INVESTMENT REPORTS — NOVEMBER AND DECEMBER 2003; (FINANCE) RECOMMENDATION: Receive report for information. A-4 RESOLUTION NO. 05-04 APPROVING COMMUNITY DEVELOPMENT BLOCK GRANT RELOCATION ASSISTANCE PLAN; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 05-04. A-5 REPORT ON STATUS OF RECORDS MANAGEMENT SOFTWARE PROGRAM AND CITY POLICY BOOK; (ADMINISTRATION) RECOMMENDATION: Receive report for information. A-6 RESOLUTION NO. 07-04 AMENDING SUMMER STREET WORK PROHIBITION TO INCLUDE TEN DAYS BEFORE CHRISTMAS AND HEAVY TOURIST IMPACT WEEKENDS; (MAYOR YATES) RECOMMENDATION: Adopt Resolution No. 07-04. A-7 RESOLUTION NO. 08-04 CREATING A POLICY FOR A ONE -WEEK NOTIFICATION TO BUSINESSES AND RESIDENTS PRIOR TO THE BEGINNING OF STREET WORK; (MAYOR YATES) RECOMMENDATION: Adopt Resolution No. 08-04. A-8 RESOLUTION NO. 09-04 DECLARING MORRO BAY AS A 'BUSINESS FRIENDLY CITY'; (MAYOR YATES) RECOMMENDATION: Adopt Resolution No. 09-04. A-9 ADOPTION OF ORDINANCE NO. 500 ADDING A SECTION TO CHAPTER 3.08 OF THE MORRO BAY MUNICIPAL CODE TO PROVIDE FOR INFORMAL BIDDING PROCEDURES; (CITY ATTORNEY) RECOMMENDATION: Adopt Ordinance No. 500. 3 B. PUBLIC HEARINGS. REPORTS & APPEARANCES ® B-I CONCEPT PLAN APPROVAL FOR GALLEY LEASE SITE PROJECT LOCATED AT 899 EMBARCADERO; (PUBLIC SERVICES) RECOMMENDATION: Approve the Concept Plan for Conditional Use Permit 25- 03 based on the findings and conditions adopted by the Planning Commission at their January 5, 2004 hearing. B-2 CONCEPT PLAN APPROVAL FOR OTTER ROCK LATERAL ACCESS PROJECT LOCATED AT 845 & 885 EMBCARCADERO: (PUBLIC SERVICES) RECOMMENDATION: Approve the Concept Plan for Conditional Use Permit 28- 02 based on the findings and conditions adopted by the Planning Commission at their November 17, 2003 hearing. B-3 GENERAL PLAN/COASTAL LAND USE PLAN UPDATE; (PUBLIC SERVICES) RECOMMENDATION: Receive public testimony, review the preface and introduction of the General Plan/Local Coastal Plan Update; and, consider continuing the review of the remaining portions of the plan update to February 23, 2004, with final action possibly on March 8, 2004. ® B4 RESOLUTION NO. 04-04 APPROVING COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM INCOME REUSE PLAN; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 04-04. B-5 RESOLUTION NO. 03-04 APPROVING COMMUNITY DEVELOPMENT BLOCK GRANT HOUSING REHABILITATION PROGRAM GUIDELINES; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 03-04. B-6 RESOLUTION NO. 06-04 APPROVING THE 2003 ANNUAL WATER PROGRESS REPORT AND ADOPTING A WATER ALLOCATION PROGRAM FOR 2004; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 06-04. C. UNFINISHED BUSINESS C-1 REPORT ON CAPITAL PROJECTS COSTS FOR POLICE BUILDING REMODEL AND PUBLIC'SERVICES BUILDING; (FINANCE) ® RECOMMENDATION: Receive report and provide direction as necessary. I, C-2 REPORT ON COST OF PORTABLE POTTIES; (ADMINISTRATION) ® RECOMMENDATION: Receive report and provide direction as necessary. D. NEW BUSINESS D-I DISCUSSION OF TROLLEY USE POLICY; (MAYOR YATES) RECOMMENDATION: Discuss and direct staff accordingly. D-2 FISCAL YEAR 2003-2004 MID -YEAR BUDGET REPORT; (FINANCE) RECOMMENDATION: Discuss and direct staff accordingly. D-3 DISCUSSION OF FUNDING FOR FIRE DEPARTMENT TENT: (MAYOR YATES) RECOMMENDATION: Discuss and direct staff accordingly. E. ADJOURNMENT THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO ® THE DATE AND TIME SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 772-6200 FOR FURTHER INFORMATION. 1 COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST AT CITY HALL, LIBRARY, AND MILLS STATIONERY. IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. 5 ® MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION — JANUARY 26, 2004 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Yates called the meeting to order at 5:00 p.m PRESENT: William Yates Mayor Dave Elliott Councilmember William Peirce Councilmember Janice Peters Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix City Manager Robert Schultz City Attorney CLOSED SESSION MOTION: Councilmember Peirce moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Peters and unanimously carried. (5-0) Mayor Yates read the Closed Session Statement. CS-1 GOVERNMENT CODE SECTION 54956.8; REAL PROPERTY TRANSACTIONS. -- Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property as to two (2) parcels. • Property: 220 Atascadero Road Negotiating Parties: Don and Mary Puett and City of Mono Bay Negotiations: Lease Terms and Conditions and/or Voluntary Sale • Property: Lease Site 129W-133W Negotiating Parties: Gerry Driscoll and City of Mono Bay Negotiations: Lease Terms and Conditions and/or Voluntary Sale The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:50 p.m. MOTION: Councilmember Peirce moved the meeting be adjourned. The motion was seconded by Councilmember Winholtz and unanimously carried. (5-0) The meeting adjourned at 5:50 p.m. 11 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 26, 2004 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Yates called the meeting to order at 6:00 p.m PRESENT: William Yates Mayor Dave Elliott Councilmember William Peirce Councilmember Janice Peters Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix Robert Schultz Bridgett Bauer Rick Algert Bruce Ambo Greig Cummings Frank Cunningham Joan Drake Clyde Ganes Gary Kaiser Mike Pond Jim Koser Joe Loven Andrea Lueker City Manager City Attorney City Clerk Harbor Director Public Services Director Planning Manager City Engineer Public Services, Admin Technician Building Official Senior Planner Acting Fire Chief Finance Director Police Chief Recreation & Parks Director ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR'S REPORTS & ANNOUNCEMENTS CLOSED SESSION REPORT - City Attorney Robert Schultz reported the City Council met in Closed Session, and no reportable action under the Brown Act was taken. PUBLIC COMMENT Freeman Hall stated as he led a nature walk along the Cloisters Subdivision path, he found that 4/10 of an acre of willow trees were cut down. He addressed the number of birds that are housed by these trees, and said this was a serious mistake made on the part of the City. Kim Kimball. Executive Director of the Chamber of Commerce. stated the 2004 Bird Festival held in Morro Bay was a huge success. She also noted the City representation at the Orange County Trade Show was successful in sharing the beauty of our City through brochures and inviting tourists to our community. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 26.2004 Julianna Epperly, owner of Crystal4U.com, volunteered to look into obtaining benches with donor plaques that can be placed on Morro Bay Boulevard. She said her mother, owner of Morro Bay Mud Fudge, is willing to purchase the first two benches. Melody DeMeritt addressed the Harbor Tract Neighborhood where the open space property near her residence is marked for potential plans for 61 homes to be built. She asked when plans for this open space property would be available for public review. Ms. DeMeritt also asked what is happening with the Tri-W property. Betty Forsythe, Friends of the Library, shared flowers to thank those who support the "Love Your Library" expansion project. Nelson Sullivan expressed support for Item A-8 (Resolution No. 09-04 Declaring Morro Bay as a "Business Friendly City"). He addressed his case relating to his arrest on October 30, 2003 when obtaining signatures on the petition relating to Measure F in front of the post office. Andrea Miller stated she was contracted by a group of Morro Bay citizens to create a map ® of proposed district boundaries relating to Measure F. She explained her methods in dividing the City into five districts. Mandy Davis handed out packets to Council including a petition relating to the removal of Phil Hill, Manager of the Fisherman's Market in Morro Bay. Lisa Mane also acknowledged Phil Hill, Manager of the Fisherman's Market and how helpful he was to the merchants. Barry Dorfman urged the City to not use City funds to oppose Measure F through payment to the Chamber of Commerce. David Nelson requested the City provide a strike out version of the General Plan to assist the public with their review of the Plan at public workshops. Nancy Castle shared the Morro Bay Historical Society tenth anniversary t-shirts; and noted the next meeting is scheduled for Sunday, January 31, 2004. Norman Risch requested the City contact CalTrans relating to the flashing light at the intersection of Highway 41 and Main Street. Colleen Johnson also requested a strike out version of the General Plan to assist the ® public in their review of the Plan. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 26, 2004 John Barta announced Jazz Festival tickets are available for purchase. Mayor Yates closed the hearing for public comment. DECLARATION OF FUTURE AGENDA ITEMS Mayor Yates requested staff draft a letter to CalTrans regarding the flashing light at the Highway 41/Main Street intersection for Council review at the February 9, 2004 City Council meeting. Councilmember Peters requested to agendize a public hearing on Measure F for the February 9, 2004 City Council meeting; Mayor Yates supported her request. Councilmember Winholtz requested to agendize an informational item on budget reporting, and noted she will provide a report. Mayor Yates called for a break at 7:09 p.m.; the meeting resumed at 7:25 p.m. ® A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 PROCLAMATION COMMENDING FIRE CHIEF JEFFREY F. JONES ON HIS TWENTY-FOUR YEARS OF SERVICE TO THE CITY OF MORRO BAY:_ (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. A-2 APPROVAL OF MINUTES FOR THE REGULAR MEETING ON JANUARY 12. 2004; (ADMINISTRATION) RECOMMENDATION: This item has been pulled from the agenda. A-3 CASH & INVESTMENT REPORTS — NOVEMBER AND DECEMBER 2003; (FINANCE) RECOMMENDATION: Receive report for information. 0 0 u 11 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 26, 2004 A-4 RESOLUTION NO. 05-04 APPROVING COMMUNITY DEVELOPMENT BLOCK GRANT RELOCATION ASSISTANCE PLAN; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 05-04. A-5 REPORT ON STATUS OF RECORDS MANAGEMENT SOFTWARE PROGRAM AND CITY POLICY BOOK; (ADMINISTRATION) RECOMMENDATION: Receive report for information. A-6 RESOLUTION NO. 07-04 AMENDING SUMMER STREET WORK PROHIBITION TO INCLUDE TEN DAYS BEFORE CHRISTMAS AND HEAVY TOURIST IMPACT WEEKENDS; (MAYOR YATES) RECOMMENDATION: Adopt Resolution No. 07-04. A-7 RESOLUTION NO. 08-04 CREATING A POLICY FOR A ONE -WEEK NOTIFICATION TO BUSINESSES AND RESIDENTS PRIOR TO THE BEGINNING OF STREET WORK; (MAYOR YATES) RECOMMENDATION: Adopt Resolution No. 08-04. A-8 RESOLUTION NO. 09-04 DECLARING MORRO BAY AS A 'BUSINESS FRIENDLY CITY"; (MAYOR YATES) RECOMMENDATION: Adopt Resolution No. 09-04. A-9 ADOPTION OF ORDINANCE NO. 500 ADDING A SECTION TO CHAPTER 3.08 OF THE MORRO BAY MUNICIPAL CODE TO PROVIDE FOR INFORMAL BIDDING PROCEDURES; (CITY ATTORNEY) RECOMMENDATION: Adopt Ordinance No. 500. Mayor Yates pulled Item A-] from the Consent Calendar. MOTION: Councilmember Peirce moved the City Council approve Item A-1 of the Consent Calendar. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) 5 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 26, 2004 A-1 PROCLAMATION COMMENDING FIRE CHIEF JEFFREY F. JONES ON HIS TWENTY-FOUR YEARS OF SERVICE TO THE CITY OF MORRO BAY; (ADMINISTRATION) Mayor Yates presented Fire Chief Jeff Jones with a plaque and the proclamation commending his 24 years of service to the City of Morro Bay. The remainder of the Consent Calendar was continued to the February 9, 2004 City Council meeting. B. PUBLIC HEARINGS, REPORTS & APPEARANCES B-I CONCEPT PLAN APPROVAL FOR GALLEY LEASE SITE PROJECT LOCATED AT 899 EMBARCADERO; (PUBLIC SERVICES) Planning Manager Greig Cummings stated the project is a quality development that will much improve the Embarcadero. The applicant is proposing to remove the existing structures on the site consisting of a restaurant, retail shop and residence. The new development will consist of a new but smaller restaurant, some retail area and eight inn units ® on the second floor. Most of the parking along Harbor Street will be retained. Those spaces are located partially on the lease site and on the street right-of-way. The proposed project will be consistent with the General Plan and Local Coastal Program, Waterfront Design Guidelines and requirements for projects in the Planned Development district. Mr. Cummings recommended the City Council approve the Concept Plan for Conditional Use Permit 25-03 based on the findings and conditions adopted by the Planning Commission at their January 5, 2004 hearing. Mayor Yates opened the hearing for public comment. Steven Puglisi, project architect, reviewed the project and some modifications, such as covering the corridor on the second level where the hotel rooms are located. Rodger Anderson, applicant, addressed the dock that was located near the business. The following people expressed support for the Galley Lease Site Project: Arby Kitzman, Stan House, and Jim Wood. Mayor Yates closed the public comment hearing. Consensus of the City Council was in support of this project. C, J Z MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 26, 2004 Councilmember Winholtz requested the neighboring businesses and residences be notified of the pile driving during construction. MOTION: Councilmember Elliott moved the City Council approve the Concept Plan for Conditional Use Permit 25-03 based on the findings and conditions adopted by the Planning Commission at their January 5, 2004 hearing. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) B-2 CONCEPT PLAN APPROVAL FOR OTTER ROCK LATERAL ACCESS PROJECT LOCATED AT 845 & 885 EMBCARCADERO; (PUBLIC SERVICES) Planning Manager Greig Cummings stated as a condition of a previous approval and for the lease site agreement, the applicant was required to provide a public eight lateral access along the west side of the lease site within two years of the completion of an accessway on adjacent sites. Now that the applicant obtained the lease on both sites and has improved the site to the south (The Boatyard), he has now applied for the permit to allow the construction of the accessway. Mr. Cummings recommended the City Council approve the Concept Plan ® for Conditional Use Permit 28-02 based on the findings and conditions adopted by the Planning Commission at their November 17, 2003 hearing with the addition of Conditions 22 and 23. Mayor Yates opened the hearing for public comment. John Barta stated the addition to the dining area was not part of the Planning Commission approval of this Plan. Mayor Yates closed the public comment hearing. Consensus of the City Council was in support of this project. Councilmember Winholtz stated she would like to condition the biological study to include an otter watch to take place during construction. MOTION: Councilmember Elliott moved the City Council approve the Concept Plan for Conditional Use Permit 28-02 based on the findings and conditions adopted by the Planning Commission at their November 17, 2003 hearing with the addition of Conditions 22 and 23. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) 7 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 26. 2004 B-3 GENERAL PLAN/COASTAL LAND USE PLAN UPDATE; (PUBLIC SERVICES) Planning Manager Greig Cummings stated the update to the General Plan/Coastal Land Use Plan was started in 1998. The purpose of the update was to merge the two documents because they were essentially the same from a substantive policy standpoint, with minor variations that led to confusion when reading both documents. An initial draft of the plan was prepared by the City's consultant, Crawford Multari and Clark, and published in August 2000. Along with the consultant's draft, a Policy Changes Matrix was prepared to assist in reviewing the changes to the policies. The matrix indicated changes to the objectives and policies between the existing General Plan and Local Coastal Plan and the consultant's draft. Mr. Cummings recommended the City Council receive public testimony, review the preface and introduction of the General Plan/Local Coastal Plan Update; and, consider continuing the review of the remaining portions of the plan update to February 23, 2004, with final action possibly on March 8, 2004. Mayor Yates opened the hearing for public comment John Barta read the vision of the Planning Commission on the General Plan/Local ® Coastal Plan, and encouraged the public to read this document. Norman Risch stated the update has fewer pages which reflects that the clear definitions of what is appropriate for the City has been removed making it easier for developers to do as they wish. Ken Vesterfelt stated there are dates on the Duke Energy Modernization Project that are not correct in the update. Nancy Castle suggested using the term "coastal town' in place of "fishing village" in the update. Mayor Yates closed the public comment hearing. Councilmember Peirce stated he is pleased with the Plan at this point. Councilmember Peters reviewed suggested amendments to the Plan. Mayor Yates stated he supports the document as it is because of all of the work that has taken place with the exception of grammatical corrections. 0 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 26, 2004 Councilmember Winholtz stated there has only been one recent public hearing before the Planning Commission on this document, and it needs more public input. She addressed a letter from Patty Dunton of the Salinian Nation requesting to add a sentence to the introduction relating to the Salinian history; Council agreed to add this sentence to the introduction. Councilmember Elliott expressed support for the work that has been done thus far on the Plan. Mayor Yates continued this item to the February 23, 2004 City Council meeting. B4 RESOLUTION NO. 04-04 APPROVING COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM INCOME REUSE PLAN; (PUBLIC SERVICES) Public Services Director Bruce Ambo stated the City of Morro Bay is applying to obtain funds from the Department of Housing and Community Development through the Community Development Block Grant Program (CDBG). In accordance with the State requirements, the City is required to maintain and update a Program Income Reuse Plan (CDBG Income Plan). The purpose of the plan is to establish guidelines on the policies ® and procedures for the administration and utilization of program income received by the City of Morro Bay as a result of activities funded under the State Community Development Block Grant Program. These statutory and regulatory sections permit a unit of local government to retain program income for CDBG-eligible community development activities. Under federal guidelines adopted by the State of California's CDBG program, local governments are permitted to retain program income so long as the local government has received advance approval from the state of a local plan that will govem the expenditure of the program income. Mr. Ambo recommended the City Council open a public hearing and receive comments; adopt Resolution No. 04-04 approving the CDBG Program Income Reuse Plan; and, direct staff to forward the Plan to the State for approval. C, Mayor Yates opened the hearing for public comment; there being no comments, Mayor Yates closed the public comment hearing. . MOTION: Councilmember Peters moved the City Council adopt Resolution No. 04-04 approving the Community Development Block Grant Program Income Reuse Plan; and, direct staff to forward the Plan to the State for approval. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) 0 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 26, 2004 B-5 RESOLUTION NO. 03-04 APPROVING COMMUNITY DEVELOPMENT BLOCK GRANT HOUSING REHABILITATION PROGRAM GUIDELINES; (PUBLIC SERVICES) Public Services Director Bruce Ambo stated the City of Morro Bay is applying to obtain funds from the Department of Housing and Community Development through the Community Development Block Grant (CDBG). In accordance with the State requirements, the City is required to maintain and update the Housing Rehabilitation Program Guidelines. Mr. Ambo recommended the City Council open a public hearing and receive comments; and, adopt Resolution No. 03-04 approving the CDBG Housing Rehabilitation Program Guidelines. Mayor Yates opened the hearing for public comment; there being no comments, Mayor Yates closed the public comment hearing. MOTION: Councilmember Elliott moved the City Council adopt Resolution No. 03-04 approving the CDBG Housing Rehabilitation Program Guidelines. The motion was seconded by Councilmember Peters and carried unanimously. (5-0) ® B-6 RESOLUTION NO. 06-04 APPROVING THE 2003 ANNUAL WATER PROGRESS REPORT AND ADOPTING A WATER ALLOCATION PROGRAM FOR 2004; (PUBLIC SERVICES) Planning Manager Greig Cummings stated the Planning Commission during their regular meeting of January 5, 2004 reviewed the annual water report presented by staff as required by Section 13.20.060 of the Morro Bay Municipal Code. The Planning Commission approved a motion to recommend adoption of staffs recommendation in the Planning Commission staff report dated December 31, 2002 to provide a water allocation of 100 water equivalency units; the same allocation that was approved in 2003. Mr. Cummings recommended the City Council adopt Resolution No. 06-04 approving the 2003 Annual Water Progress Report and adopting a Water Allocation Program for 2004; and further recommended the City Council provide direction to modify Section 13.20.060 of the Morro Bay Municipal Code to revise and update the water reporting system with the assistance and recommendations of the Public Works Advisory Board and Planning Commission. Mayor Yates opened the hearing for public comment; there being no comments, Mayor Yates closed the public comment hearing. Councilmember Winholtz addressed recommendation 92 and the allocation of unused ® water equivalency units. 10 10 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 26, 2004 MOTION: Councilmember Elliott moved the City Council adopt Resolution No. 06-04 approving the 2003 Annual Water Progress Report and adopting a Water Allocation Program for 2004; and further direct staff to modify Section 13.20.060 of the Morro Bay Municipal Code to revise and update the water reporting system with the assistance and recommendations of the Public Works Advisory Board and Planning Commission. The motion was seconded by Councilmember Peters and carried unanimously. (5-0) C. UNFINISHED BUSINESS C-1 REPORT ON CAPITAL PROJECTS COSTS FOR POLICE BUILDING REMODEL AND PUBLIC SERVICES BUILDING; (FINANCE) Finance Director Jim Koser stated on October 27, 2003, the City Council received an initial report from the City Manager about Capital Improvement Projects and particularly how staff deals with projects that exceed their revenues and City Council approved budgets. Staff made several attempts to be responsive by presenting reports both on and. off the agenda regarding Capital Projects accounting practices. Mr. Koser stated Capital Projects are ® usually projects involving significant economic investments and often are related to infrastructure or the acquisition of Capital Assets. Capital Projects frequently include construction and extensive design and planning, resulting in project durations extending over multiple fiscal years. The City Council Resolution adopting the annual budget includes language wherein the City Manager is authorized to transfer appropriations anywhere within the adopted budget so long as the total authorized appropriations are not exceeded. Otherwise. budgetary control is intended to be at the division level appropriations total for operating budgets and at the project level for capital improvement projects, with line item changes administratively reviewed and approved. The City Council authorizes and directs the transfer of the balances of projects approved in fiscal years 1995-96 through 2002-03, but not completed by June 30, 2003, to the Capital Improvement Project Fund for fiscal year 2003-04. Mr. Koser recommended the City Council accept this report and provide direction as necessary. The City Council received this report for information; no further action was taken on this item. C-2 REPORT ON COST OF PORTABLE POTTIES; (ADMINISTRATION) This item was continued to the February 9, 2004 City Council meeting. 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 26, 2004 D. NEW BUSINESS D-I DISCUSSION OF TROLLEY USE POLICY; (MAYOR YATES) MOTION: Councilmember Peirce moved the City Council approve the use of the trolley for the February 14, 2004 History Day Parade. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) D-2 FISCAL YEAR 2003-2004 MID -YEAR BUDGET REPORT; (FINANCE) Finance Director Jim Koser stated as the City reaches the halfway point of the fiscal year, the City's traditional revenue sources, Transient Occupancy Taxes and City Sales and Use Taxes are both performing well, in comparison to last year. However, the City expects to lose $378,000 in Natural Gas franchise fees. That is a function of the fact the Morro Bay Power Plant has not been operating most of the year. The State's financial crisis has been passed on to local government and the City expects to lose roughly $125,000 in Property Taxes and $183,000 in Car taxes, (of which the City has already planned on losing $175,000). The City is also losing on a continuing basis a portion of its property taxes in the Education Revenue Augmentation Funds (ERAF) shift. ® Although the City did not budget for this money, knowing it was not forthcoming, the City already lost $297,674 to ERAF this year, before the added loss of $125,000. Over the course of the past ten years, the State has taken ERAF from the City taxpayers. The City has lost $6,261,285 in the ERAF shift since it began. In addition to the _projected revenue losses, the City Council has taken certain other actions, since the budget was adopted that have increased, appropriations in the General Fund by $87,931. Mr. Koser recommended the City Council take the following action: C] 1) Take action to actively educate the public on the Voter Initiative to be placed on the November 2004 ballot because its purpose is to require a vote of the people before that State can take local dollars and re -direct them to the State coffers. Until that happens, cutting local revenues to pay State expenses is the easiest and least politically risky solution to the State's structural budget problems. 2) Direct staff to require an evaluation of any position that becomes vacant. Criteria can be developed to rank the position's value to the organization, whether the work can be done by delegation to several other current employees, whether we can get along without the position for a set period of time. Examine whether the City needs to continue programs that ought to be funded by other sources. 12 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 26. 2004 3) Using an orderly process, evaluate the fee structure employed by all of the City's departments. The City Council recognizes that some services provided by City staff are of benefit to individuals, while others are of value to the entire community. 4) Direct staff whether or not to fund items subject to reconsideration, as shown in this staff report. 5) Direct staff to prepare a Supplemental Appropriation Resolution to modify the budgets as recommended. 6) Develop contingent ways to address the City's long-term fiscal health; for example consider the following: A) Impose across the board budget cuts that require equal sacrifice by all departments whenever possible. B) Consider canceling or postponing some Capital Improvement Projects until a later date; and, return the funding of cancelled projects back to the ® fund that made the initial cash allocation. C) Reduce the hours that offices are open to allow current work to get accomplished more rapidly. 11 Mayor Yates stated it appears staff recommendation 41 is self-explanatory, and hopes there is a consensus in support from Council. In discussing staff recommendation #2, Councilmember Peirce recommended staff provide the City Council with an evaluation on positions that become open, and then Council should make the determination if that position should be filled immediately or placed on hold. MOTION: Councilmember Elliott moved the City Council direct staff to provide the City Council with an evaluation on any position that becomes vacant, and return to the City Council for a final decision. The motion was seconded by Councilmember Peters and carried with Councilmember Winholtz voting no. (4-1) Mayor Yates addressed staff recommendation #3 noting City staff already has the ability to report to Council that the City is losing money for particular services and request a fee c increase. 13 ® MINUTES. - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 26, 2004 MOTION: Councilmember Elliott moved the City Council not allocate the Potential Expenditures resulting from future City Council direction including: 1) San Simeon Earthquake Public Infrastructure in the amount of $75,150; 2) Skate Rink Site Preparation in the amount of $129,500; 3) Tourism Marketing Study for the Seibert property in the amount of $25,000; and 4) Total Potential Addition Costs in the amount of $229,650. The motion was seconded by Councilmember Peirce and carried with Councilmember Peters voting no. (4-I) Mayor Yates addressed staff recommendation #5 noting that staff will be preparing a Supplemental Appropriation Resolution to modify the budget and bringing it back to Council. The City Council discussed staff recommendation #6(A), and amended it to state: "Impose across the board budget cuts that require sacrifice by all departments. whenever possible." Councilmember Peters suggested Council add 6(D) to state: "Provide incentive to City employees to submit cost saving ideas." She said this would allow employees to share ® suggestions on how to save the City money, and award the employee with a percentage of the annual savings. u Councilmember Elliott agreed to add 6(D) as follows: "Encourage the City Manager to solicit information from employees where budget cutting can be made, and provide some reasonable incentive to do so." MOTION: Councilmember Elliott moved the City Council approve staff recommendations number 6(A) with amendment, (B) and add (D) relating to a employee incentive program. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) MOTION: Councilmember Elliott moved the City Council deny staff recommendation 6(C). The motion was seconded by Mayor Yates and carried with Councilmember Winholtz voting no. (4-1) 14 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 26, 2004 D-3 DISCUSSION OF FUNDING FOR FIRE DEPARTMENT TENT; (MAYOR YATES) This item was continued to the February 9, 2004 City Council meeting. ADJOURNMENT The meeting adjourned at 11:00 p.m. Recorded by: Bridgett Bauer City Clerk u C, J 15 . ® NOTICE OF SPECIAL, CITY'COUNCIL MEETING NOTICE IS HEREBY GIVEN that the Morro Bay City Council will be holding a Special Meeting on Thursday, January 22, 2004 at 6:00 a.m. to be held in the Community Center Multi Purpose Room, 1001 Kennedy Way, Morro Bay, California. The City Council will be interviewing applicants for vacancies on the City's Planning Commission, Recreation & Parks Commission, and Public ® Works Advisory Board. DATED: January 16, 2004 Bridgett B er, City Clerk 11 ® MINUTES - MORRO BAY CITY COUNCIL SPECIAL MEETING — JANUARY 22. 2004; 6:00 P.M. COMMUNITY CENTER MULTI PURPOSE ROOM Mayor Yates called the meeting to order at 6:00 p.m PRESENT: William Yates Mayor David Elliott Councilmember William Peirce Councilmember Janice Peters Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix City Manager The City Council held interviews to fill vacancies on the City's Planning Commission. Recreation & Parks Commission, and Public Works Advisory Board. The following action was taken: PLANNING COMMISSION MOTION: Mayor Yates moved the City Council appoint John Barta to serve a four- year term on the Planning Commission. The motion was seconded by Councilmember Elliott and carried with Councilmember Peters and Councilmember Winholtz voting no. (3-2) Mayor Yates called for a break at 6:45 p.m.; the meeting resumed at 7:00 p.m. PUBLIC WORKS ADVISORY BOARD MOTION: Councilmember Peirce moved the City Council appoint Vicki Landis. Barry Dorfman and Brad Valois to each serve four-year terms on the Public Works Advisory Board. The motion was seconded by Councilmember Elliott and carried unanimously. (5-0) Mayor Yates called for a break at 7:45 p.m.; the meeting resumed at 7:55 p.m. RECREATION & PARKS COMMISSION MOTION: Councilmember Peters moved the City Council appoint Stan House and Angela Ludy to each serve four-year terms on the Recreation & Parks Commission. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) is ADJOURNMENT - The meeting adjourned at 8:25 p.m. ® NOTICE OF SPECIAL CLOSED SESSION MEETING NOTICE IS HEREBY GIVEN that the Morro Bay City Council will be holding a Special Closed Session Meeting on Tuesday, January 20, 2004 at 5:30 p.m. to be held in the City Hall Conference Room, 595 Harbor Street, Morro Bay, California. The City Council will be discussing: GOVERNMENT CODE SECTION 54957; PERSONNEL ISSUES. Discussions regarding Personnel Issues including one (1) public employee regarding evaluation, specifically the City Manager. ® DATED: January 16, 2004 Bridgett B er, City Clerk ® City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life. The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the'needs of the public. REGULAR MEETING — JANUARY 12, 2004 CLOSED SESSION — JANUARY 12, 2004 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA ® CS-1 GOVERNMENT CODE SECTION 54956.9(A); CONFERENCE WITH LEGAL COUNSEL REGARDING PENDING LITIGATION Skaff vs. City of Morro Bay; USDC 02-6790 IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. PUBLIC SESSION — JANUARY 12, 2004 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCILMEMBERS ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period, the following rules shall be followed: • When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments are to be limited to three minutes. • All remarks shall be addressed to Council, as a whole, and not to any individual member thereof. ® • The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or staff. • Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering. • Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting. • Your participation in City Council meetings is welcome and your courtesy will be appreciated. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 772-6205. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. 2 A -I APPROVAL OF MINUTES FOR THE REGULAR MEETING ON DECEMBER 8, 2003, AND EMERGENCY MEETING ON DECEMBER 22, 2003; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 RESOLUTION NO. 01-04 ADOPTING CITY OF MORRO BAY INVESTMENT POLICY AND AUTHORIZING CITY TREASURER TO CARRY OUT SUBJECT POLICY ON BEHALF OF THE CITY COUNCIL; (FINANCE) RECOMMENDATION: Adopt Resolution No. 01-04. A-3 ADOPTION OF ORDINANCE NO. 499 REPEALING, AMENDING AND REENACTING CHAPTER 5.32 OF THE MORRO BAY MUNICIPAL CODE — MOBILEHOME AND RECREATIONAL VEHICLE PARK RENT STABILIZATION; (CITY ATTORNEY) RECOMMENDATION: Adopt Ordinance No. 499. A-4 AWARD OF CONTRACT FOR QUINTANA PLACE WATERLINE REPLACEMENT PROJECT; (PUBLIC SERVICES) ® RECOMMENDATION: Award the project contract to D-KAL Engineering Contractors in the amount of $59,767.50. 11 A-5 AWARD OF CONTRACT FOR PREPARATION OF SEWER SYSTEM MASTER PLAN UPDATE; (PUBLIC SERVICES) RECOMMENDATION: Award the contract to John L. Wallace and Associates and allocate an additional $15,000 from un-obligated sewer fund reserves for extra work. A-6 AWARD OF CONTRACT FOR BID PROPOSAL MB-2003-WW5 FOR PRIMARY CLARIFIER DRIVE UNIT REPLACEMENT; (PUBLIC SERVICES) RECOMMENDATION: Award the project contract to Kawaeh Construction Company in the amount of $44,382.00. A-7 STATUS REPORT ON THE MORRO BAY PHOTOVOLTAIC PROJECT; (RECREATION & PARKS) RECOMMENDATION: Receive report for information. 3 A-8 PROCLAMATION EXPRESSING GRATITUDE AND APPRECIATION TO RICHARD HUNTINGTON FOR HIS 38 YEARS OF DEDICATED SERVICE TO THE COMMUNITY; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 PUBLIC HEARING ON CLOSEOUT OF CDBG ECONOMIC DEVELOPMENT ALLOCATION PLANNING AND TECHNICAL ASSISTANCE GRANT # 01- EDBG-805, INFRASTRUCTURE REQUIREMENT AND FUNDING RELATED TO SEAFOOD PROCESSING FACILITY; (HARBOR) RECOMMENDATION: Authorize staff to submit the report with a final letter to Community Development Block Grant to closeout the grant. B-2 CONDITIONAL APPROVAL TO SUBDIVIDE A 12,016 SQUARE FOOT PARCEL CONTAINING TWO DUPLEXES INTO FOUR NEW PARCELS EACH CONTAINING A SINGLE-FAMILY RESIDENCE, UNDER THE PROVISIONS FOR COMMUNITY HOUSING PROJECTS; TTM 02-03/CUP 26-03 & CDP 36-03R; SITE LOCATION: 1898, 1890, 1900 & 1910 HILL STREET; (PUBLIC SERVICES) ® RECOMMENDATION: Approve Tentative Tract Map 02-03, Conditional Use Permit No. 26-03 and Coastal Development Permit No. 36-03R as approved by the Planning Commission and subject to the Conditions of Approval. Ll B-3 RESOLUTION NO. 02-04 ADOPTING THE UNIFORM CONSTRUCTION COST ACCOUNTING PROCEDURES; AND ORDINANCE NO. 500 ADDING A SECTION TO CHAPTER 3.08 TO PROVIDE FOR INFORMAL BIDDING PROCEDURES (FIRST READING/INTRODUCTION) RECOMMENDATION: Adopt Resolution No. 02-04; and approve first reading and introduction of Ordinance No. 500 by number and title only. C. UNFINISHED BUSINESS C-1 UPDATE ON LOCAL EMERGENCY RELATING TO THE SAN SIMEON EARTHQUAKE; (FIRE) RECOMMENDATION: Receive report for information. n ® NEW BUSINESS D-1 FREQUENCY OF JOINT CITY COUNCIL/PLANNING COMMISSION MEETINGS; (PUBLIC SERVICES) RECOMMENDATION: Discuss and direct staff accordingly. D-2 FORMAT AND DATE FOR ANNEXATION WORKSHOP; (PUBLIC SERVICES) RECOMMENDATION: Discuss and direct staff accordingly. E. ADJOURNMENT THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TIME SET FOR THE MEETING. PLEASE REFER TO THE ® AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 772-6200 FOR FURTHER INFORMATION. COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST AT CITY HALL, LIBRARY, AND MILLS STATIONERY. IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. 5 ® MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION — JANUARY 12.2004 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Yates called the meeting to order at 5:00 p.m PRESENT: William Yates Mayor Dave Elliott Councilmember William Peirce Councilmember Janice Peters Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix City Manager Robert Schultz City Attorney CLOSED SESSION MOTION: Councilmember Peters moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Peirce and unanimously carried. (5-0) Mayor Yates read the Closed Session Statement. ® CS-1 GOVERNMENT CODE SECTION 54956.9(A); CONFERENCE WITH LEGAL COUNSEL REGARDING PENDING LITIGATION Skaff vs. City of Morro Bay; USDC 02-6790 The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:25 p.m. MOTION: Councilmember Winholtz moved the meeting be adjourned. The motion was seconded by Councilmember Elliott and unanimously carried. (5-0) The meeting adjourned at 5:25 p.m. 11 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 12, 2004 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Yates called the meeting to order at 6:00 p.m PRESENT: William Yates Mayor Dave Elliott Councilmember William Peirce Councilmember Janice Peters Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix Robert Schultz Bridgett Bauer Rick Algert Bruce Ambo Bill Boucher Frank Cunningham Clyde Ganes Gary Kaiser Bruce Keogh Steve Knuckles ® Mike Pond Jim Koser Joe Loven Andrea Lueker ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE City Manager City Attorney City Clerk Harbor Director Public Services Director Capital Projects Manager City Engineer Building Official Senior Planner Wastewater Treatment Manager Fire Captain Acting Fire Chief Finance Director Police Chief Recreation & Parks Director PLEDGE OF ALLEGIANCE MAYOR'S REPORTS & ANNOUNCEMENTS CLOSED SESSION REPORT - City Attorney Robert Schultz reported the City Council met in Closed Session, and no reportable action under the Brown Act was taken. PUBLIC COMMENT David Nelson addressed the fiscal responsibility of the City relating to funding paid to consultants on various projects, and the procrastination of funds due the City by Duke Energy. Tom Laurie shared a picture of a museum in London on the River Thames that is a converted energy plant. Ed Dumong requested public support to reinstate local fisheries. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 12, 2004 Colleen Johnson also discussed eco-tourism and how a museum would be a better use than a power plant for Morro Bay. Barry Dorfman addressed an insert placed in the Chamber of Commerce newsletter relating to the proposed initiative on districting, and noted the same access should have been made to others. Stan House stated the State Parks Campground Reservation web site states there are no campsites available in Morro Bay. He also requested information on the closure of the gate at Morro Rock and the snowy plover delisting issues. Brenda Agee -Smiley stated there are six advisory board openings and applications are available and due to the City by Friday January 16w. Jim Wood shared a historical article with Council on what the City can do to attract people to the City. Mayor Yates closed the hearing for public comment. ® DECLARATION OF FUTURE AGENDA ITEMS Councilmember Peters requested to agendize discussion on the use of the trolley for the History Day Parade. Councilmember Winholtz requested to agendize discussion on meeting the Low/ Moderate Housing Requirements. Councilmember Elliott requested to agendize discussion on the relationship issues with State Parks regarding their operation of local facilities. Councilmember Elliott requested to agendize discussion on the policy on reporting to Council on Capitol Improvement Project Budget Overruns. Councilmember Elliott requested to agendize discussion on encroachments on public property. Councilmember Elliott requested to agendize discussion on the e-mail policy for Council communicating with residents and/or staff. Mayor Yates requested to agendize the review of a draft resolution requiring the Finance Department to inform Council on Capitol Improvement Project Overruns, and a reporting ® policy on where the funds are coming from. 3 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 12, 2004 Mayor Yates requested to agendize discussion on amending the summer street work prohibition to include the ten days before Christmas and other heavy tourist weekends. Mayor Yates requested to agendize discussion on creating a policy for a one -week notification to businesses and residents prior to the beginning of street work. Mayor Yates requested to agendize a resolution declaring Morro Bay a "Business Friendly City". Mayor Yates requested to agendize discussion on placing all Capital Improvement Projects under the purview of the Public Services Department - Capital Projects Manager. Mayor Yates requested to agendize the status of the Records Management Software Program And City Policy Book. Mayor Yates requested to agendize discussion on Earthquake Recovery Funding. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES FOR THE REGULAR MEETING ON DECEMBER 8, 2003, AND EMERGENCY MEETING ON DECEMBER 22, 2003; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 RESOLUTION NO. 01-04 ADOPTING CITY OF MORRO BAY INVESTMENT POLICY AND AUTHORIZING CITY TREASURER TO CARRY OUT SUBJECT POLICY ON BEHALF OF THE CITY COUNCIL; (FINANCE) RECOMMENDATION: Adopt Resolution No. 01-04. A-3 ADOPTION OF ORDINANCE NO. 499 REPEALING, AMENDING AND REENACTING CHAPTER 5.32 OF THE MORRO BAY MUNICIPAL CODE — MOBILEHOME AND RECREATIONAL VEHICLE PARK RENT STABILIZATION; (CITY ATTORNEY) RECOMMENDATION: Adopt Ordinance No. 499. u C! 2 El Ll MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 12, 2004 A4 AWARD OF CONTRACT FOR QUINTANA PLACE WATERLINE REPLACEMENT PROJECT; (PUBLIC SERVICES) RECOMMENDATION: Award the project contract to D-KAL Engineering Contractors in the amount of $59,767.50. A-5 AWARD OF CONTRACT FOR PREPARATION OF SEWER SYSTEM MASTER PLAN UPDATE; (PUBLIC SERVICES) RECOMMENDATION: Award the contract to John L. Wallace and Associates and allocate an additional $15,000 from un-obligated sewer fund reserves for extra work. A-6 AWARD OF CONTRACT FOR BID PROPOSAL MB-2003-WW5 FOR PRIMARY CLARIFIER DRIVE UNIT REPLACEMENT; (PUBLIC SERVICES) RECOMMENDATION: Award the project contract to Kawaeh Construction Company in the amount of $44,382.00. A-7 STATUS REPORT ON THE MORRO BAY PHOTOVOLTAIC PROJECT; (RECREATION & PARKS) RECOMMENDATION: Receive report for information. A-8 PROCLAMATION EXPRESSING GRATITUDE AND APPRECIATION TO RICHARD HUNTINGTON FOR HIS 38 YEARS OF DEDICATED SERVICE TO THE COMMUNITY; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. Councilmember Winholtz pulled Item A-4 from the Consent Calendar; and Councilmember Elliott pulled Items A-5 and A-7. MOTION: Councilmember Peirce moved the City Council approve the Consent Calendar with the exception of Items A-4, A-5 and A-7. The motion was seconded by Councilmember Peters and carried unanimously. (5-0) A-4 AWARD OF CONTRACT FOR QUINTANA PLACE WATERLINE REPLACEMENT PROJECT; (PUBLIC SERVICES) Councilmember Winholtz expressed concern with traffic control for this project. 5 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 12, 2004 MOTION: Councilmember Winholtz moved the City Council approve Item A-4 of the Consent Calendar. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) A-5 AWARD OF CONTRACT FOR PREPARATION OF SEWER SYSTEM MASTER PLAN UPDATE; (PUBLIC SERVICES) Councilmember Elliott stated the City has efficient staff members within the City who are capable of preparing this update in-house. MOTION: Mayor Yates moved the City Council not approve Item A-5 of the Consent Calendar. The motion was seconded by Councilmember Elliott. Councilmember Winholtz requested hear from the consultant on their expertise Bruce Tenaka of John L. Wallace and Associates gave a brief explanation on their firm's capabilities on analyzing the system capabilities and would provide basic service scopes to the City within 7 to 8 months. ® Councilmember Peters requested to hear from staff. Bruce Keogh, Wastewater Treatment Plant Manager, stated the City would receive a better product within a shorter time frame if they contracted with John L. Wallace and Associates. He said the City is capable of metering the different units; however, it would create a burden on staff by pulling people away from other tasks. Mayor Yates withdrew his motion; Councilmember Elliott withdrew his second. MOTION: Mayor Yates moved the City Council approve Item A-5 of the Consent Calendar. The motion was seconded by Councilmember Winholtz and carried with Mayor Yates and Councilmember Elliott voting no. (3-2) A-7 STATUS REPORT ON THE MORRO BAY PHOTOVOLTAIC PROJECT; (RECREATION & PARKS) Councilmember Elliott stated his concern with this project is that a section of the roof will have to be replaced on the Community Center, when the building is not very old. MOTION: Councilmember Peirce moved the City Council approve Item A-7 of the Consent Calendar. The motion was seconded by Councilmember Peters ® and carried with Councilmember Elliott voting no. (4-1) G9 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 12, 2004 Mayor Yates called for a break at 7:28 p.m.; the meeting resumed at 7:38 p.m. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 PUBLIC HEARING ON CLOSEOUT OF CDBG ECONOMIC DEVELOPMENT ALLOCATION PLANNING AND TECHNICAL ASSISTANCE GRANT # 01- EDBG-805, INFRASTRUCTURE REQUIREMENT AND FUNDING RELATED TO SEAFOOD PROCESSING FACILITY; (HARBOR) Harbor Director Rick Algert stated Community Development Block Grant (CDBG) funds are provided to benefit primarily persons of low -moderate income through housing construction, public works, economic development loans or infrastructure, and planning/technical assistance. In 1992, the City received a CDBG Planning and Technical Assistance grant to study ways to retain and enhance the seafood processing industry in Morro Bay and to recommend locations and methods to accomplish those actions. That study recommended the City focus its effort at the City -owned property on Lease Sites 129W-133W (then operated as Cordero Winston's Seafood, currently known as Driscoll's Wharf) and to work with the then tenant, Cordero Winston, on redeveloping the site with a ® CDBG infrastructure development grant. Unfortunately, shortly thereafter Cordero Winston went bankrupt. The City received a $200,000 Coastal Resources Agency. grant and executed a repair/improvement project on the dock at 129W-133W in the late 1990's and eventually found a new tenant, "Driscoll's Wharf, to take over dock operations. A new short-term lease for Lease Site 129W-133W was executed with Gerry Driscoll, dba Driscoll's Wharf in 1999. Gerry Driscoll put forward a concept proposal for a major redevelopment to build a custom pack tuna cannery on the dock and surrounding property. Based on this proposal, City staff approached CDBG to apply for another Planning and Technical Assistance Grant to study what infrastructure would be needed for Mr. Driscoll's redevelopment and to complete the CDBG grant application for up to $500,000 in infrastructure improvements. In 2001 the City Council authorized application for the grant and the City was awarded Planning and Technical Assistance Grant 901-EDBG-805 for $35,000 to complete the above stated work. Mr. Algert recommended the City Council hold a public hearing to obtain input of the final report entitled City of Morro Bay Infrastructure and Fish Processing Facility, and authorize staff to submit the report with a final closeout letter to CDBG to closeout the grant. u Mayor Yates opened the hearing for public comment. Mark Quisenberry, Commercial Fisherman, stated there needs to be a certain amount of tonnage and dollar amount coming through the port to help secure dredging funds. He said the deep -water complex has allowed for the best fishing in years. 7 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 12. 2004 Stan House thanked the Harbor Director for his hard work on this project. He said he hopes enough money can be spent to keep this fleet going because without it we can lose a lot of culture and history in our community. Mayor Yates closed the public comment hearing. MOTION: Councilmember Elliott moved the City Council authorize staff to submit the report with a final closeout letter to Community Development Block Grant to closeout the grant. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) B-2 CONDITIONAL APPROVAL TO SUBDIVIDE A 122016 SQUARE FOOT PARCEL CONTAINING TWO DUPLEXES INTO FOUR NEW PARCELS EACH CONTAINING A SINGLE-FAMILY RESIDENCE, UNDER THE PROVISIONS FOR COMMUNITY HOUSING PROJECTS; TTM 02-03/CUP 26-03 & CDP 36-03R; SITE LOCATION: 1898, 1890, 1900 & 1910 HILL STREET; (PUBLIC SERVICES) Senior Planner Gary Kaiser stated in December 2002, the Planning Commission approved a ® Conditional Use Permit and Coastal Development Permit for a 6-unit residential development on the subject site. The approval included a Tentative Parcel Map to divide the site into three residential parcels. One of these parcels was to be larger than the others to contain four of the residential units as rentals. The other two residential units would each be on separate small lots pursuant to the City's provisions for Community Housing Projects. The approved project is currently under construction at the intersection of Hill and Mimosa Streets. In December 2003, the Planning Commission approved a modification to the project that would allow for the creation of six parcels rather than three, so that each of the residential units could be on a separate parcel. A Tentative Tract Map was therefore approved in lieu of the Tentative Parcel Map. Under the City's Subdivision Ordinance, the Planning Commission has jurisdiction to approve Tentative Parcel Maps but does not have final decision -making authority on Tentative Tract Maps. Hence, the project now requires City Council approval. The approval of the Tentative Tract Map would modify the ownership pattern within the project but it would not physically alter the project compared to that which has already been approved by the City and that are currently under construction. No changes to the approved Conditional Use Permit and Coastal Development Permit are therefore necessary. Mr. Kaiser recommended the City Council reaffirm the Planning Commission's decision and conditionally approve the project by adopting the findings of approval, including those pertaining to the use of the Mitigated Negative Declaration previously prepared for the project pursuant to the California Environmental Quality Act (CEQA); and, approve Tentative Tract Map 02-03, Conditional Use Permit 26-03, and Coastal Development Permit 36-03R, as approved by the Planning ® Commission and subject to the conditions of approval 3 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 12, 2004 Mayor Yates opened the hearing for public comment. David Nelson stated this project is proposing to take four rental units that provide affordable housing and replace it with six private houses. He said it is inappropriate to crowd six expensive houses on a lot and take away the affordable housing. Ruel Czach, applicant, stated this project does provide four town houses to rent. He said the issue that slows down the building of condominiums and apartments is based on increasing liability insurance premiums. Mr. Czach stated the project also provides private and public open space. Mayor Yates closed the public comment hearing. MOTION: Councilmember Elliott moved the City Council reaffirm the Planning Commission's decision and conditionally approve the project by adopting the findings of approval, including those pertaining to the use of the Mitigated Negative Declaration previously prepared for the project pursuant to the California Environmental Quality Act (CEQA); and, approve Tentative Tract ® Map 02-03, Conditional Use Permit 26-03, and Coastal Development Permit 36-03R, as approved by the Planning Commission and subject to the conditions of approval. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) B-3 RESOLUTION NO. 02-04 ADOPTING THE UNIFORM CONSTRUCTION COST ACCOUNTING PROCEDURES; AND ORDINANCE NO. 500 ADDING A SECTION TO CHAPTER 3.08 TO PROVIDE FOR INFORMAL BIDDING PROCEDURES (FIRST READING/INTRODUCTION) City Attorney Robert Schultz stated as a general law City, the City of Morro Bay is currently subject to the provisions of Sections 20160-20175 of the Public Contract Code, which govern how and when contracts for public projects are to be advertised, bid and awarded. The City can chose to adopt more restrictive provisions, but no less restrictive than in State Law. One of the State Code restrictions currently governing the City is the requirement that all public project work valued at $5,000 or more must be publicly bid. This requirement, which has been in effect since the early 1980's, restricts the City's ability to move quickly on smaller projects and imposes complex procedures and processes that are out of proportion to the value of the contracted work. The Public Contract Code provides a method to both raise the ceiling to $25,000 on the value of work that the City's own forces can perform, as well as simplify the bidding procedures for contracts valued at less than $100,000. To be able to use this method, the City must adopt an approved accounting ® procedure applicable to projects performed by City forces: the Uniform Construction Cost ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 12, 2004 Accounting Procedures as set forth in the Uniform Public Construction Cost Accounting Act. Mr. Schultz recommended the City Council adopt the Uniform Construction Cost Accounting Procedures (UCCAP) in accordance with the Public Contract Code by adopting Resolution No. 02-04 electing to become subject to the UCCAP; and move for introduction and first reading of Informal Bidding Ordinance No. 500, by title and number only. MOTION: Councilmember Peters moved the City Council adopt the Uniform Construction Cost Accounting Procedures (UCCAP) in accordance with the Public Contract Code by adopting Resolution No. 02-04 electing to become subject to the UCCAP. The motion was seconded by Councilmember Elliott and carried unanimously. (5-0) Mayor Yates opened the hearing for public comment; there being no comments Mayor Yates closed the public comment hearing. MOTION: Councilmember Peirce moved the City Council approve Ordinance No. 500 for first reading and introduction adding a section to Chapter 3.08 of the Morro Bay Municipal Code to provide informal bidding procedures on public projects under the Uniform Public Construction Cost Accounting ® Act. The motion was seconded by Councilmember Peters and carried unanimously. (5-0) City Attorney Robert Schultz read Ordinance No. 500 by title and number only. Mayor Yates called for a break at 9:35 p.m.; the meeting resumed at 9:42 p.m. C. UNFINISHED BUSINESS C-1 UPDATE ON LOCAL EMERGENCY RELATING TO THE SAN SIMEON EARTHQUAKE; (FIRE) Acting Fire Chief Mike Pond stated in the two weeks following the earthquake, damaged facilities and structures continue to be discovered. Although the immediate emergency is over, both the assessment and mitigation phases continue. Damage assessment teams from the Federal Emergency Management Agency (FEMA) and County Office of Emergency Services continue to work in Morro Bay. These teams are documenting all damage to public infrastructure as well as private residences and commercial structures. The earthquake has not been declared a federal disaster, but FEMA continues to document damage and total losses. Currently, personnel are monitoring the settling which has occurred on the Embarcadero and at the bridge approach on Morro Bay Boulevard at Highway 1, and on South Bay Boulevard at the Chorro Creek Bridge. ® Conditions at Fire Station 53, located at 715 Harbor Street continue to be monitored. 10 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 12, 2004 A Professional Engineer conducted an evaluation of the station prior to the earthquake. This engineer has reevaluated the station after the earthquake noting substantial damage. He advised not keeping fire apparatus in the building. This was an informational item, and no action was taken by the City Council. D. NEW BUSINESS D-I FREQUENCY OF JOINT CITY COUNCIL/PLANNING COMMISSION MEETINGS; (PUBLIC SERVICES) Planning Manager Greig Cummings stated during the joint City Council/Planning Commission meeting of December 1, 2003, the topic of the frequency of joint City Council/ Planning Commission meetings was discussed. There was no clear directing resulting from the discussion except to have the next meeting in March 2004. Section 2.28.020 of the Morro Bay Municipal Code under "Duties and Responsibilities of the Planning Commission' states: "Meet with the City Council in April and October of each year to discuss proposed policies, programs, goals and objectives, budgeting, future planning, or ® any other planning matter requiring joint deliberation". Mr. Cummings recommended the City Council direct staff to bring back an ordinance amendment for the ordinance section to read: "Meet with the City Council in March of each year to discuss proposed policies, programs, goals and objectives, budgeting, future planning, or any other planning matter requiring joint deliberation'. He added if the City Council or Planning Commission wishes to meet more often during a year, then the additional meeting(s) can be arranged between the two bodies, which does not need to be in the ordinance. '- MOTION: Mayor Yates moved the City Council direct staff to bring back an ordinance amendment to Section 2.28.020 of the Morro Bay Municipal Code as follows: "Meet with the City Council annually to discuss proposed policies, programs, goals and objectives, budgeting, future planning, or any other planning matter requiring joint deliberation'. The motion was seconded by Councilmember Peirce. Councilmember Peirce added Council should review at the beginning of each year the months that include five Mondays. VOTE: The motion carried with Councilmember Winholtz voting no. (4-1) I1 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 12, 2004 MOTION: Mayor Yates moved the City Council direct staff to bring back a resolution informing the City Council in January of each year of the required meeting of that year, the months that contain five Mondays, and scheduling for said meetings. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) D-2 FORMAT AND DATE FOR ANNEXATION WORKSHOP; (PUBLIC SERVICES) Planning Manager Greig Cummings stated during the joint City Council/Planning Commission meeting of December 1, 2003, the topic of an annexation workshop was discussed. There was no clear direction resulting from the discussion and it was decided to bring the question of format to Council at this meeting. Staff is suggesting that there not be any detailed discussion of annexation at the workshop but rather an opportunity for the public to express their views on the issue without any potential discussion brought up by staff about the process of annexation, its impacts to services, community character or any other issues. If the City Council determines from the workshop that more information is needed from staff, then it can be provided at future workshops if they are ® desired. Mr. Cummings recommended to the City Council that the format be an open microphone with no preliminary discussion from the Planning Commission or staff. There would be no response at the meeting to the individual comments. The goal is to allow the public an opportunity to offer their views without any interference. The Planning Commission can then consider the issue of annexation at their next regularly scheduled meeting and report their conclusions to the City Council. As to the date of the workshop, the next fifth Monday is March 29, 2004. If that is considered too far into the future, then a special meeting can be held in February on a Wednesday. Council requested the Planning Commission schedule a presentation on land annexation to educate the public, Council and Commissioners. No further action was taken on this item. ADJOURNMENT The meeting adjourned at 9:26 p.m. Recorded by fBriridgettnBaikr City Clerk 12