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HomeMy WebLinkAboutJanuary - December0 CITY OF MORRO BAY CITY COUNCIL MEETING AGENDA NOTICE OF CANCELED MEE' TO HONOR THE HOLIDAY SEASON TFIE REGULAR CITY COUNCIL MEETING SCHEDULED FOR MONDAY, DECEMBER 26, 2005 HAS BEEN CANCELED The next regularly scheduled meeting will be held on Monday, January 9, 2006, 6:00 p.m., Veterans Hall. ® City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and entrancement 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 12, 2005 CLOSED SESSION — DECEMBER 12, 2005 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA CS-1 GOVERNMENT CODE SECTION 54956.8sREAL PROPERTY TRANSACTIONS. Instructing City's real property negotiators regarding the price and terms of payment for the purchase, sale, exchange, or lease of real ® property. • Property: One Acre Land at the Comer of Jacinto Street and SR1 Negotiating Parties: City.and Keyoto-Morro Bay, Inc. Negotiations: Sale Terms CS-2 THIS ITEM HAS BEEN WITHDRAWN CS-3 GOVERNMENT CODE SECTION 54957, PERSONNEL ISSUES.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. I] PUBLIC SESSION — DECEMBER 12, 2005 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 NOVEMBER 14, 2005 CITY COUNCIL ® MEETING; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 LETTER REGARDING SB 153 (CHESBRO) CALIFORNIA CLEAN WATER, ® SAFE NEIGHBORHOOD PARKS, AND -COASTAL PROTECTION ACT OF 2006; (CITY ATTORNEY) RECOMMENDATION: Approve as submitted. A-3 PROPOSAL TO USE PARK -IN -LIEU FUNDS TO PURCHASE REPLACEMENT LIGHTS AT KEISER PARK; (RECREATION & PARKS) RECOMMENDATION: Approve use of up to $13,000 of park -in -lieu funds to replace the parking lot lights at Lila Keiser Park. A4 RESOLUTION NO. 45-05 ADOPTING AMENDMENTS TO LEASES FOR LEASE SITE 89-89W AND 90-90W LOCATED AT 875 EMBARCADERO; (HARBOR) RECOMMENDATION: Adopt Resolution No. 45-05. A-5 RESOLUTION NO. 46-05 APPROVAL OF ASSIGNMENT OF LEASE SITE 89/89W LOCATED AT 845 EMBARCADERO; (HARBOR) RECOMMENDATION: Adopt Resolution No. 46-05. A-6 PROPOSED RECLASSIFICATION OF ADMINISTRATIVE TECHNICIAN ® TO GRANTS/DEPARTMENT COORDINATOR; (ADMINISTRATION) RECOMMENDATION: Adopt the proposed Housing Programs Coordinator specifications and authorize reclassification of the Public Services Administrative Technician to Housing Programs Coordinator. A-7 ACCEPTANCE 'OF RESIGNATION BY COMMUNITY PROMOTIONS COMMITTEE MEMBER; (ADMINISTRATION) RECOMMENDATION: Accept Notice of Resignation. A-8 LETTER TO CALIFORNIA DEPARTMENT OF FISH & GAME REGARDING FLOOD CONTROL AND CREEK MAINTENANCE; (PUBLIC SERVICES) RECOMMENDATION: Authorize the Mayor to sign the letter regarding concerns with flood control and creek maintenance. B. PUBLIC HEARINGS. REPORTS & APPEARANCES — NONE. 11 W C. UNFINISHED BUSINESS ® C-I CONSIDERATION OF PUBLIC EDUCATION REGARDING RESIDENT SURVEY AND FUTURE CONSIDERATION OF A COMPREHENSIVE CITY REVENUE PROGRAM; (ADMINISTRATION) RECOMMENDATION: Approve moving forward with a comprehensive public education and community outreach program about the City's fiscal situation. C-2 DISCUSSION ON COUNCIL REVIEW OF CITY EMPLOYMENT VACANCIES; (ADMINISTRATION) RECOMMENDATION: Consider current and projected position vacancies; authorize filling the newest dispatch vacancy; authorize filling the Finance Director position when it becomes vacant; and consider action on the projected Recreation & Parks position. C-3 ESTABLISH CITY COUNCIL MEETING SCHEDULE FOR THE 2006 CALENDAR YEAR; (ADMINISTRATION) RECOMMENDATION: Discuss and direct staff accordingly. C4 CONSIDERATION OF PROPOSED BY-LAWS FOR THE COMMUNITY PROMOTIONS COMMITTEE; (ADMINISTRATION) ® RECOMMENDATION: Approve the amended Community Promotions Committee by-laws, and refer to the City Attorney for inclusion in the Advisory Committee handbook. 2 C-5 GRANT -FUNDED DIRECTIONAL SIGNAGE INSTALLATION PROGRAM; (PUBLIC SERVICES) RECOMMENDATION: Consider and approve the sign materials, provide direction on sign locations, and authorize the expenditure of past Community Development Block Grant program income funds for the installation of directional signage. D. NEW BUSINESS D-I APPROVE ADVERTISING SCHEDULE AND SET MEETING DATE FOR THE PURPOSE OF INTERVIEWING CANDIDATES TO FILL VACANCIES ON ADVISORY COMMITTEES AND RELATED GROUPS; (ADMINISTRATION) RECOMMENDATION: Set a date and time to interview applicants for vacancies on City Commission and Advisory Boards. 4 D-2 REPORT AND PRELIMINARY RECOMMENDATIONS OF THE PUBLIC WORKS ADVISORY BOARD REGARDING UNDERGROUND UTILITY DISTRICT 97 — ® PROPOSED; (PUBLIC SERVICES) RECOMMENDATION: This item has been pulled from the agenda. D-3 DISCUSSION OF RESIDENTIAL VACATION RENTAL AND TRANSIENT OCCUPANCY TAX REGULATIONS; (CITY ATTORNEY) RECOMMENDATION: Direct the City Attorney to add language to the Morro Bay Municipal Code requiring vacation rentals to obtain a short-term lodging permit; and, Council should consider whether to include a voluntary surcharge to help promote tourism. D4 REVIEW OF ANNUAL WATER REPORT REQUIREMENTS (MORRO BAY MUNICIPAL CODE CHAPTER 13.20 — WATER; (CITY ATTORNEY) RECOMMENDATION: Direct the City Attorney to delete Morro Bay Municipal Code Sections 13.20.030 to 13.20.060 related to the annual water report and replace them with an applicable procedure. 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. C'I 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. W MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION — DECEMBER 12, 2005 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Peters called the meeting to order at 5:00 p.m. PRESENT: Janice Peters Mayor STAFF CLOSED SESSION Thad Baxley Melody DeMeritt William Peirce Betty Winholtz Robert Hendrix Robert Schultz Councilmember Councilmember Councilmember Councilmember City Manager City Attorney MOTION: Councilmember Peirce moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Baxley and unanimously carried. (5-0) Mayor Peters read the Closed Session Statement. CS-1 GOVERNMENT CODE SECTION 54956.8; REAL PROPERTY TRANSACTIONS. Instructing City's real property negotiators regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property. Property: One Acre Land at the Comer of Jacinto Street and SRI Negotiating Parties: City and Keyoto-Morro Bay, Inc. Negotiations: Sale Terms 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 Baxley moved the meeting be adjourned. The motion was seconded by Councilmember Peirce and unanimously carried. (5-0) The meeting adjourned at 5:50 p.m. 11 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — DECEMBER 12, 2005 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Peters called the meeting to order at 6:00 p.m PRESENT: Janice Peters Mayor Thad Baxley Councilmember Melody DeMeritt Councilmember William Peirce Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix Andrea Lueker Robert Schultz Bridgett Bauer Rick Algert Bruce Ambo John DeRohan Mike Pond Jim Koser City Manager Assistant City Manager City Attorney City Clerk Harbor Director Public Services Director Police Chief - Fire Chief Finance 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 Ric Deschler addressed Item C-1 (Consideration of Public Education Regarding Resident Survey and Future Consideration of a Comprehensive City Revenue Program) and expressed concern with the lack of information provided to the public regarding this issue. Bill Davies thanked the City for their efforts. He said he supports raising the City's sales tax base. Kim Kimball thanked those who participated in the Lighted Boat Parade and Caroling Cop Cars events. She expressed support for Item A-5 (Resolution No. 46-05 Approval Of Assignment of Lease Site 89/89W Located at 845 Embarcadero. Ms Kimball also addressed Item C-5 (Grant -Funded Directional Signage Installation Program) and thanked the Public Services Director for making this program happen. She also 11 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — DECEMBER 12, 2005 announced an economic forum will be held in Morro Bay on July 14, 2006. Ms. Kimball stated AGP Video has installed the eye in the sky that can be viewed on Morrobay.org. Keith Taylor, Friends of the Fire Department, thanked those who assisted in the Christmas Tree Lighting at City Park. Richard Sidowski asked for a moment of silence for Tukki Williams who will be executed in San Francisco. Marla Bruton addressed the approval of the lease with Duke Energy, and asked if Duke has submitted the $1.5 million promised upon signing of this lease. Joey Racano stated Mayor Peters has a conflict of interest in her involvement with the Winter Bird Festival by signing the lease with Duke Energy. He said approval of this lease shows the City does not support the estuary or the snowy plover. Roger Ewing addressed Item D-4 (Review of Annual Water Report Requirements; Morro Bay Municipal Code Chapter 13.20) and encouraged the City Council to not approve to ® remove the water supply report from the agenda. He also referred to Item C-1 and stated a consultant is not necessary to show the City how to run a campaign to raise money through a City tax. Alex Beattie addressed the recent grant received by the City for tennis courts, and stated the City does not need more tennis courts and suggested the City solicit public input on this item. Ken Vesterfelt expressed support for Item A-3 (Proposal to Use Park -In -Lieu Funds to Purchase Replacement Lights at Keiser Park). He also stated an initiative should be considered that states a council member who runs for the mayor's seat, and has a remaining two-year term on council, should give up their seat on council. Mayor Peters closed the hearing for public comment. DECLARATION OF FUTURE AGENDA ITEMS Councilmember DeMeritt requested to agendize discussion on the usage of City tennis courts; Councilmember Winholtz & Mayor Peters concurred. She also requested to agendize discussion on the participation in the Clean Cities Coalition — no staff report required. t ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — DECEMBER 12, 2005 Councilmember Peirce requested to agendize discussion on Council's relationship with community businesses — no staff report required. Councilmember Winholtz requested to agendize the following: 1) discussion on affordable and sustainable housing at the first meeting in January - Councilmember DeMeritt and Mayor Peters concurred; 2) discussion on the letter received from the Harbor Advisory Board regarding annexation — no staff report required; and 3) discussion on agenda items for the joint meeting with Planning Commission on February 6, 2006. 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 NOVEMBER 14, 2005 CITY COUNCIL MEETING; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. ® A-2 LETTER REGARDING SB 153 (CHESBRO) CALIFORNIA CLEAN WATER, SAFE NEIGHBORHOOD PARKS, AND COASTAL PROTECTION ACT OF 2006; (CITY ATTORNEY) RECOMMENDATION: Approve as submitted. A-3 PROPOSAL TO USE PARK -IN -LIEU FUNDS TO PURCHASE REPLACEMENT LIGHTS AT KEISER PARK; (RECREATION & PARKS) RECOMMENDATION: Approve use of up to $13,000 of park-in-tieu funds to replace the parking lot tights at Lila Keiser Park. A4 RESOLUTION NO. 45-05 ADOPTING AMENDMENTS TO LEASES FOR LEASE SITE 89-89W AND 90-90W LOCATED AT 875 EMBARCADERO; (HARBOR) RECOMMENDATION: Adopt Resolution No. 45-05. A-5 RESOLUTION NO. 46-05 APPROVAL OF ASSIGNMENT OF LEASE SITE 89/89W LOCATED AT 845 EMBARCADERO; (HARBOR) ® RECOMMENDATION: Adopt Resolution No. 46-05. 4 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — DECEMBER 12, 2005 A-6 PROPOSED RECLASSIFICATION OF ADMINISTRATIVE TECHNICIAN TO GRANTS/DEPARTMENT COORDINATOR; (ADMINISTRATION) RECOMMENDATION: Adopt the proposed Housing Programs Coordinator specifications and authorize reclassification of the Public Services Administrative Technician to Housing Programs Coordinator. A-7 ACCEPTANCE OF RESIGNATION BY COMMUNITY PROMOTIONS COMMITTEE MEMBER; (ADMINISTRATION) RECOMMENDATION: Accept Notice of Resignation. A-8 LETTER TO CALIFORNIA DEPARTMENT OF FISH & GAME REGARDING FLOOD CONTROL AND CREEK MAINTENANCE; (PUBLIC SERVICES) RECOMMENDATION: Authorize the Mayor to sign the letter regarding concerns with flood control and creek maintenance. ® Councilmember DeMeritt pulled Items A -I and A-6 from the Consent Calendar; Councilmember Winholtz pulled Items A-3, A-4 and A-5; and Mayor Peters pulled Item A-8. MOTION: Councilmember Winholtz moved the City Council approve Items A-2 and A-7 on the Consent Calendar. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) A-1 APPROVAL OF MINUTES FOR THE NOVEMBER 14, 2005 CITY COUNCIL MEETING; (ADMINISTRATION) Councilmember DeMeritt requested a correction be made to the minutes of November 14, 2005 City Council meeting, page 7, last paragraph; Council concurred. MOTION: Councilmember DeMeritt moved the City Council approve Item A -I of the Consent Calendar as amended. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) 5 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — DECEMBER 12, 2005 A-3 PROPOSAL TO USE PARK -IN -LIEU FUNDS TO PURCHASE REPLACEMENT LIGHTS AT KEISER PARK; (RECREATION & PARKS) Councilmember Winholtz requested clarification on the upgrades of Lila Keiser Park and Del Mar Park. Assistant City Manager Andrea Lueker reviewed the upgrades that are being performed at both Lila Keiser and Del Mar Parks. MOTION: Councilmember Winholtz moved the City Council approve Item A-3 of the Consent Calendar. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) A-4 RESOLUTION NO. 45-05 ADOPTING AMENDMENTS TO LEASES FOR LEASE SITE 89-89W AND 90-90W LOCATED AT 875 EMBARCADERO; (HARBOR) Councilmember Winholtz referred to the Visitors Center building and how the City has encouraged them to adopt a more nautical theme. ® MOTION: Councilmember Winholtz moved the City Council approve Item A-4 of the Consent Calendar. The motion was seconded by Councilmember Peirce and carved unanimously. (5-0) A-5 RESOLUTION NO. 46-05 APPROVAL OF ASSIGNMENT OF LEASE SITE 89/89W LOCATED AT 845 EMBARCADERO; (HARBOR) Councilmember DeMeritt asked what constitutes mixed -use on the Embarcadero. Harbor Director Rick Algert responded mixed -use on the Embarcadero refers to different types of businesses at one location. MOTION: Councilmember Winholtz moved the City Council approve Item A-5 of the Consent Calendar. The motion was seconded by Mayor Peters and carried unanimously. (5-0) A-6 PROPOSED RECLASSIFICATION OF ADMINISTRATIVE TECHNICIAN TO GRANTS/DEPARTMENT COORDINATOR; (ADMINISTRATION) Councilmember DeMeritt stated this job classification includes a 27% increase in income; however, the salary and benefits will be paid out of CDBG funds and not the general fund. C ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — DECEMBER 12, 2005 MOTION: Councilmember DeMeritt moved the City Council approve Item A-6 of the Consent Calendar. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) A-8 LETTER TO CALIFORNIA DEPARTMENT OF FISH & GAME REGARDING FLOOD CONTROL AND CREEK MAINTENANCE; (PUBLIC SERVICES) Mayor Peters pulled this item for public information, and requested a copy of this letter be sent to our legislators. MOTION: Councilmember Peters moved the City Council approve Item A-8 of the Consent Calendar. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) B. PUBLIC HEARINGS. REPORTS & APPEARANCES — NONE. C. UNFINISHED BUSINESS ® C-1 CONSIDERATION OF PUBLIC EDUCATION REGARDING RESIDENT SURVEY AND FUTURE CONSIDERATION OF A COMPREHENSIVE CITY REVENUE PROGRAM; (ADMINISTRATION) City Manager Robert Hendrix stated in light of the significant fiscal challenges facing the City, the City Council directed staff to contract with the Lew Edwards Group to conduct a statistically valid survey of city voters and to report regarding the feasibility of a future revenue measure. If feasible, staff was directed to return with an item for Council consideration that included an action plan, schedule and budget for proceeding with the next step of initiating a public information program, preparing for a possible revenue ballot measure in 2006. While the analysis concluded that a general-purpose sales tax ballot measure is feasible, it also concluded that its success depends upon an effective public education and community outreach program. Staff is convinced that the proposed work -scope, budget and recommended professional assistance provide the essential elements for conducting an effective program. Mr. Hendrix recommended the City Council receive the presentation by Catherine Lew of the Lew Edwards Group regarding experiences in other cities with general revenue measures; authorize a mid -year adjustment to the budget from the unreserved General Fund balance to fund an effective program; and, authorize the City Manager to enter into an agreement with the Lew Edwards Group for professional assistance in conducting an effective program. The City Council received a PowerPoint presentation by Catherine Lew of the Lew ® Edwards Group on the Morro Bay Finance Measure Feasibility. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — DECEMBER 12, 2005 Councilmember DeMeritt stated she wants to pursue this ballot measure; however, she does not want to expend funds that the City does not have to pay for a consultant. She said this money could pay for a couple of positions in this City. Councilmember DeMeritt stated the City should consider placing this initiative on the June ballot. She said the community is aware that the sales tax is going to increase Countywide. Councilmember Peirce stated he is enthused with the results of the survey; however, he has some reservation with the cost for a consultant. Councilmember Winholtz stated she is in favor of pursuing this initiative without a consultant and with the use of volunteers as a campaign group. She said this community is unique in that we were the only City in the County that approved the library and the GE -free elements initiatives. Councilmember Baxley stated this is a small amount of money to invest for this type of accomplishment, and he would prefer to re-evaluate when the City receives the mid -year budget review in January. ® Mayor Peters stated even without a consultant the City would have to pay to promote this initiative. MOTION: Councilmember Baxley moved the City Council approve the authorization of a mid -year adjustment to the budget from the unreserved General Fund balance to fund an effective program; and, authorize the City Manager to enter into an agreement with the Lew Edwards Group for professional assistance in conducting an effective program. The motion was seconded by Councilmember Peirce and carried with Councilmember DeMeritt and Councilmember Winholtz voting no. (3-2) Mayor Peters called for a break at 7:58 p.m.; the meeting resumed at 8:10 p.m. C-2 DISCUSSION ON COUNCIL REVIEW OF CITY EMPLOYMENT VACANCIES; (ADMINISTRATION) City Manager Robert Hendrix stated along with adoption of the budget last June, vacant permanent positions were "frozen". Under the freeze, authorization from the City Council is needed before recruitment can be initiated and the position filled. The City Council later followed up with a decision that provided authority to re -fill any police officer vacancies occurring during the budget year. In your most recent meeting, the City ® Council requested that information be provided on current and projected staff vacancies MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — DECEMBER 12, 2005 subject to the "freeze". Active recruitments are now underway for a police officer vacancy and for one of the vacant dispatcher positions. City Council approval is still required for authority to fill the second dispatch vacancy. Mr. Hendrix recommended the City Council consider the current and projected position vacancies; authorize filling the newest dispatch vacancy; authorize filling the Finance Director position when it becomes vacant; and consider action on the projected Recreation & Parks position. MOTION: Councilmember Peirce moved the City Council authorize recruitment for Finance Director with a one -month transition period; and fill the Parks Maintenance II (1/2 time) position. The motion was seconded by Councilmember Baxley and carried unanimously. (5-0) C-3 ESTABLISH CITY COUNCIL MEETING SCHEDULE FOR THE 2006 CALENDAR YEAR; (ADMINISTRATION) City Manager Robert Hendrix stated staff is requesting the City Council consider adopting a planned schedule of meetings for the 2006 calendar year. The resulting schedule will call out the planned meeting dates for the year. Historically, while the City ® Council has cancelled and added meetings as needed, it has also generally cancelled a meeting in either late June or early July and the second meeting in November. Mr. Hendrix recommended the City Council approve a firm City Council meeting schedule for the 2006 calendar year, consistent with Resolution No. 56-03; consider cancellation of none, any or all of the following regular meetings: February 13, June 12, June 26, July 10, July 24, and November 27; consider scheduling special meetings for fifth Mondays which are January 30, July 31, and October 30; and, approve the result of these decisions as the City Council regular meeting calendar for calendar 2006. 11 MOTION: Councilmember DeMeritt moved the City Council approve the City Council meeting schedule canceling the July 24 and November 27, 2006 regular City Council meetings; reserving July 31 and October 30, 2006 for special meetings; scheduling the February 13, 2006 meeting on February 14, 2006; and, scheduling the joint City Council/Planning Commission meeting on February 6, 2006. The motion was seconded by Councilmember Baxley and carried unanimously. (5-0) E ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — DECEMBER 12, 2005 E C4 CONSIDERATION OF PROPOSED BY-LAWS FOR THE COMMUNITY PROMOTIONS COMMITTEE; (ADMINISTRATION) City Manager Robert Hendrix stated earlier the City Council met with the Community Promotions Committee to discuss the role of the Committee. As a follow-up to that discussion, the Promotions Committee considered on its October agenda amendments to the Committee's by-laws related to the issue previously discussed with the City Council. The Committee adopted the amended by-laws and requested City staff to forward them to the City Council for consideration and approval. If the City Council approves the changes to the by-laws, it is recommended they be approved by motion and referred to the City Attorney so he may include them in the Advisory Group Handbook. Mr. Hendrix recommended the City Council approve the amended Community Promotions Committee by-laws, and refer to the City Attorney for inclusion in the Advisory Committee handbook. The City Council amended the proposed by-laws as follows: ...Annually, each committee member will be required to familiarize themselves with the operation of the Visitor Center by volunteering four - hours per year on a weekend or summer day. MOTION: Councilmember Peirce moved the City Council approve the proposed Community Promotions Committee by-laws as amended by the City Council. The motion was seconded by Councilmember DeMeritt and carved unanimously. (5-0) C-5 GRANT -FUNDED DIRECTIONAL SIGNAGE INSTALLATION PROGRAM; (PUBLIC SERVICES) Public Services Director Bruce Ambo stated in 2004, the Community Promotions Committee, Chamber of Commerce and several other interested businesses and residents developed a package of recommendations for eliminating obsolete or confusing sign text and updating directions on the signage. Staff completed the changes to the existing signage and returned with an option to study the development of a directional signage program to strengthen community identity and help visitors find their way into and around town. On October 25, 2004 the City Council authorized staff to develop the directional signage program using CDBG program income funds from previous projects. On May 23, 2005, the City Council approved the signage program, selected the sign design, authorized staff to solicit proposals for two entry and two directional signs, and directed staff to return with revised locations for sign installations. Mr. Ambo recommended the City Council consider and approve the sign materials, provide direction 10 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — DECEMBER 12, 2005 on sign locations, and authorize the expenditure of past Community Development Block Grant program income funds for the installation of directional signage. MOTION: Councilmember Winholtz moved the City Council approve to retain the entrance sign at Morro Bay Boulevard and Quintana Road; replace the sign at Yerba Buena and Highway One to a high -density urethane foam sign; place eight or more directional signs in the downtown area and two highway signs all made of the "fossil' sign product. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) D. NEW BUSINESS D-1 APPROVE ADVERTISING SCHEDULE AND SET MEETING DATE FOR THE PURPOSE OF INTERVIEWING CANDIDATES TO FILL VACANCIES ON ADVISORY COMMITTEES AND RELATED GROUPS; (ADMINISTRATION) City Manager Robert Hendrix stated the City Council is requested to set a date to ® interview applicants for upcoming vacancies on City Commissions and Advisory Boards. It is also requested the City Council include in their interviews the Morro Bay Power Plant (MBPP) Ad -Hoc Committee. The MBPP Ad -Hoc Committee is charged with assessing redevelopment of the property and seeking funding sources to pursue appropriate future uses. The Ad -Hoc Committee, consisting of two Council Members at this point, has decided to expand to 14 members in January by added 12 members of the community. The Ad -Hoc Committee requests that the City Council include the following in the advertisement that is currently being prepared for the other vacant Commission and Advisory Board vacancies. Mr. Hendrix recommended the City Council set a date to interview applicants for upcoming vacancies on City Commissions and Advisory Boards, including the MBPP Ad -Hoc Committee, and approve the advertisement of these vacancies. MOTION: Councilmember Baxley moved the City Council approve the advertising dates for December 28, 2005 and January 4, 2006; deadline to receive applications are set for January 13, 2006; and, interview dates are January 18, 2006 for commission and advisory board vacancies, and January 25, 2006 for the Morro Bay Power Plant Ad -Hoc Committee. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) 11 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — DECEMBER 12, 2005 D-2 REPORT AND PRELIMINARY RECOMMENDATIONS OF THE PUBLIC WORKS ADVISORY BOARD REGARDING UNDERGROUND UTILITY DISTRICT #7 — PROPOSED; (PUBLIC SERVICES) This item was pulled from the agenda D-3 DISCUSSION OF RESIDENTIAL VACATION RENTAL AND TRANSIENT .00CUPANCY TAX REGULATIONS; (CITY ATTORNEY) City Attorney Robert Schultz stated Mayor Peters brought this item forth as a Future Agenda Item to discuss the lost Transient Occupancy Tax (TOT) from vacation rentals in the City. He said his office researched various other cities and has found that some tourist beach communities have a permit application process that requires all persons renting a residential unit for a term of 30 days or less to apply for and obtain a permit. Unfortunately, the City of Morro Bay does not have such a requirement, and therefore, may be losing TOT revenues. Mr. Schultz stated it is his recommendation that the City Council approves to add language to the Morro Bay Municipal Code requiring vacation rentals to obtain a short-term lodging permit. In addition, Mr. Schultz, through his ® research, came across a unique surcharge that may raise revenue to promote tourism. It basically allows a hotel operator to establish a rent surcharge in an amount not to exceed $.50 per night. The full amount of the surcharges collected is then paid to a non-profit chamber of commerce, non-profit visitor's bureau or other non-profit organization dedicated to the promotion of tourism in the City. Mr. Schultz recommended the City Council direct his office to add language to the Morro Bay Municipal Code requiring vacation rentals to obtain a short-term lodging permit; and, Council should consider whether to include a voluntary surcharge to help promote tourism. MOTION: Councilmember Peirce moved the City Council direct the City Attorney to draft a business license and transient occupancy permit mechanism for vacation rentals. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) D-4 REVIEW OF ANNUAL WATER REPORT REQUIREMENTS (MORRO BAY MUNICIPAL CODE CHAPTER 13.20 — WATER; (CITY ATTORNEY) City Attorney Robert Schultz stated pursuant to Morro Bay Municipal Code Sections 13.20.030 to 13.20.060, the Planning Director is required to prepare an annual water report and present it at a planning commission meeting and at a City Council meeting. The main purpose of the report is to describe what uses received water equivalency allocations in the past year and to make a recommendation for the next year. Section ® 13.20.030 to 13.20.060 was enacted in 1985 when Morro Bay had a limited amount of 12 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — DECEMBER 12, 2005 water resources. Today those water restrictions no longer exist. Based upon the current status of our water resources, the time it takes staff to prepare the annual water report, and the time to prepare and attend two public hearings, staff has requested the City Attorney to prepare this matter for the Council's consideration. Mr. Schultz recommended the City Council direct his office to prepare an amendment thereby deleting Sections 13.20.030 to 13.20.060 of the Morro Bay Municipal Code. In its place, the City Attorney recommended that an annual water report still be prepared that describes the amount of water usage for the year and the number of permits issues, but that no public hearing be required unless ordered by the City Council. MOTION: Councilmember DeMeritt moved the City Council amend Morro Bay Municipal Code Sections 13.20.030 to 13.20.060 by placing the annual water report on Consent Calendar, and send a summary out in the next month's water bills. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) ADJOURNMENT ® The meeting adjourned at 10:19 p.m. Recorded by: &A�e\&Xp� Bridgett Bauer City Clerk l 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 - NOVEMBER 28, 2005 THIS MEETING HAS BEEN CANCELED. 11 ® NOTICE OF SPECIAL MEETING NOTICE IS HEREBY GIVEN that the Morro Bay City Council will be holding a Special Meeting on Thursday, November 17, 2005 at 5:30 p.m. to be held in the Community Center Multi Purpose Room located at 1001 Kennedy Way, Morro Bay, California. The City Council will be previewing the agenda for the Morro Bay/Cayucos Sanitary District Joint Powers Authority meeting as follows: A. CONSENT CALENDAR 1. Minutes of October 20, 2005 Meeting— Recommend approve. 2. Wastewater Treatment Plant Operations Report through September 2005 (Keogh) - recommend receive and file. 3. Financial Status Report as of September 2005 (Koser) — recommend receive and file. B. UNFINISHED BUSINESS 1. Status Report on the Full Secondary WWTP Upgrade 91/2 Year Time Schedule (Keogh) — recommend receive and file C. NEW BUSINESS ® 1. Invoice for First Quarter of FY 2005 — 2006 (Koser) — recommend approve 2. Invoice for Fourth Quarter FY 2004 — 2005 (Koser) — recommend approve 3. Consideration to Issue Request for Proposal (RFP) for Facility Master Plan for W WTP upgrade (Keogh) — recommend approve 4. Schedule Next Joint Meeting and Agenda Items The City Council will adjourn to the Morro Bay/Cayucos Sanitary District Joint Powers Authority meeting that will begin at 7:00 p.m., and will be held in the Community Center Multi Purpose Room located at 1001 Kennedy Way, Morro Bay, California. 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. DATED: November 9, 2005 ® Bridgett Muer, 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 — NOVEMBER 14, 2005 CLOSED SESSION — NOVEMBER 14, 2005 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 e : 845 Embarcadero, Lease Site 89/89W. Negotiating.Parties: Joseph Steinmann and City of Morro Bay. Negotiations: Lease Terms and Conditions. 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. ® PUBLIC SESSION — NOVEMBER 14, 2005 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 OCTOBER 24, 2005 CITY COUNCIL MEETING; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 RESOLUTION NO. 42-05 ADOPTING COMPREHENSIVE CITY E-MAIL POLICY; (CITY ATTORNEY) RECOMMENDATION: Adopt Resolution No. 42-05. A-3 NOTICE OF COMPLETION OF BLANCA TANK REPLACEMENT PROJECT; (PUBLIC SERVICES) RECOMMENDATION: Accept the Project as completed by Wysong Construction Company, and authorize the filing of the Notice of Completion. A4 AWARD OF CONTRACT FOR CITY DOCK ICE PLANT REPLACEMENT; (I IARBOR) RECOMMENDATION: Award bid to Associated Pacific Constructors, Inc. in the amount of $138,000.00. ® A-5 RESOLUTION NO. 43-05 AUTHORIZING SUBMITTAL OF A RURAL TRANSIT FUND GRANT APPLICATION; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 43-05. A-6 PROPOSED BY-LAWS FOR THE COMMUNITY PROMOTIONS COMMITTEE; (ADMINISTRATION) RECOMMENDATION: Approve the amended by-laws for the Community Promotions Committee. A-7 PROCLAMATION CONGRATULATING THE ECONOMIC OPPORTUNITY COMMISSION ON ITS 40TH ANNIVERSARY; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 RESOLUTION NO. 44-05 APPROVING AGREEMENT TO LEASE AND LEASE AGREEMENT BETWEEN DUKE ENERGY AND CITY OF MORRO BAY; (CITY ATTORNEY) RECOMMENDATION: Adopt Resolution No. 44-05. 3 ® C. UNFINISHED BUSINESS C-1 REVIEW OF GRANT FUNDED DIRECTIONAL SIGNAGE INSTALLATION PROGRAM; (PUBLIC SERVICES) RECOMMENDATION: Consider and approve the sign materials, provide direction on sign locations, and authorize the expenditure of past Community Development Block Grant program income funds for the installation of the directional signs. D. NEW BUSINESS D-I PRESENTATION ON COOPERATIVE HOUSING; (CITY COUNCIL) RECOMMENDATION: Receive presentation, and discuss what steps the City can take with community partners to address the housing crisis in Morro Bay. D-2 DISCUSSION ON COUNCIL REVIEW OF CITY EMPLOYMENT VACANCIES; (CITY COUNCIL) RECOMMENDATION: Authorize filling the newest dispatch vacancy, the Finance Director position when it becomes vacant; consider action on the projected Recreation & Parks position, and further direct staff accordingly. ® D-3 CITY COUNCIL MEETING SCHEDULE FOR THE 2006 CALENDAR YEAR; (ADMINISTRATION) RECOMMENDATION: Consider the meeting schedule for the 2006 calendar year, 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. 11 ® MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION —NOVEMBER 14, 2005 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Peters 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 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 Baxley and unanimously carried. (5-0) Mayor Peters 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 : 845 Embarcadero, Lease Site 89/89W. Ne og tiating Parties: Joseph Steinmann and City of Morro Bay. Negotiations: Lease Terms and Conditions. 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 5:45 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 5:45 p.m. LI C C� MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — NOVEMBER 14, 2005 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Peters called the meeting to order at 6:00 p.m. PRESENT: Janice Peters Mayor Thad Baxley Melody DeMeritt William Peirce Betty Winholtz STAFF: Robert Hendrix Andrea Lueker Robert Schultz Bridgett Bauer Rick Algert Bruce Ambo Frank Cunningham John DeRohan Mike Pond Jim Koser ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR'S REPORTS & ANNOUNCEMENTS Councilmember Councilmember Councilmember Councilmember City Manager Assistant City Manager City Attorney City Clerk Harbor Director Public Services Director City Engineer Police Chief Fire Chief Finance Director 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 annual Thanksgiving Dinner hosted by the Rotary Club and Peace Officers Association would take place at the Community Center from 1-3 pm; also meals can be delivered. He also stated the Caroling Cop Car and Christmas Trolley will be driving throughout the City on December 5`" — 7'". Mr. Roth noted a scam has been reported regarding pharmaceuticals, and urged citizens not to give out private information over the telephone. Ric Deschler requested the City provide the results of the survey performed regarding an initiative on tax increases to the public. 2 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — NOVEMBER 14, 2005 Kim Kimball stated the recent Central Coast Guide is available. She also noted that next year the Morro Bay Chamber of Commerce would be celebrating its 50"' year anniversary. Ms. Kimball also announced the Lighted Boat Parade would take place on December 3rd Jim Nance addressed how money has changed the character of Morro Bay. Betty Forsythe announced the sixth annual Books, Things and Collectibles sale will be held on Saturday, November 19'h from 11 am — 4 pm at the library. Ed Biaggini addressed Item A-6 (Proposed By -Laws For The Community Promotions Committee) and requested the City Council approve the by-laws as presented. Ray McKelligott stated there is a safety problem with the driveway leading to the Blue Heron Mobile Home Park, and requested the City paint white lines on either side of the driveway for better visibility. Bruce Gibson announced the Vision 2050 workshop would be held on Saturday, November 19`s from 8:30 am — 1:00 pm at the Morro Bay Veterans Building. ® Bill Davies reviewed past measures voted on by the citizens of Morro Bay regarding the Duke Energy Power Plant and its site. Keith Taylor (Friends of the Morro Bay Fire Department) announced a raffle would be held at the Christmas Tree Lighting in support of the Fire Department. Ken Vesterfelt reviewed the Police Department statistics, and asked that the police department be brought back to the 1964 standards. Lynda Merrill addressed the demise of Jane Marketello who was involved in City issues. Bill Woodson stated there is funding through the San Luis Obispo Council of Governments for a Class I Community Path in Morro Bay. He also suggested using volunteers to clean the creek beds in Morro Bay. Susan Heinemann expressed concern with the lack of public knowledge on City budgetary issues. David Nelson expressed opposition to the lease agreement with Duke Energy. He also agreed the walking path on State Park Road needs improvement. Mr. Nelson stated the survey that was recently performed was a waste of taxpayer's money. He also addressed ® the fine paid by Duke Energy for pollution created by the plant. 3 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — NOVEMBER 14, 2005 John Barta announced the Merchants Street Faire would be held on Sunday, November 27th from 9:00 am — 4:00 pm. Mayor Peters closed the hearing for public comment. DECLARATION OF FUTURE AGENDA ITEMS Councilmember Winholtz requested to agendize the review of the Morro Bay State Park Circulation Plan and City Bikeway Plan; Mayor Peters and Councilmember DeMeritt concurred. Councilmember DeMeritt requested to agendize sending a letter of support for SB 153 (California Clean Water, Safe Neighborhood Parks, and Coastal Protection Act of 2006); Mayor Peters and Councilmember Winholtz concurred. Mayor Peters called for a break at 7:04 p.m.; the meeting resumed at 7:15 p.m. A. CONSENT CALENDAR Is Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. CJ A-1 APPROVAL OF MINUTES FOR THE OCTOBER 24, 2005 CITY COUNCIL MEETING; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 RESOLUTION NO. 42-05 ADOPTING COMPREHENSIVE CITY E-MAIL POLICY; (CITY ATTORNEY) RECOMMENDATION: Adopt Resolution No. 42-05. A-3 NOTICE OF COMPLETION OF BLANCA TANK REPLACEMENT PROJECT; (PUBLIC SERVICES) RECOMMENDATION: Accept the Project as completed by Wysong Construction Company, and authorize the filing of the Notice of Completion. M ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — NOVEMBER 14, 2005 A-4 AWARD OF CONTRACT FOR CITY DOCK ICE PLANT REPLACEMENT; (HARBOR) RECOMMENDATION: Award bid to Associated Pacific Constructors, Inc. in the amount of $138,000.00. A-5 RESOLUTION NO. 43-05 AUTHORIZING SUBMITTAL OF A RURAL TRANSIT FUND GRANT APPLICATION; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 43-05. A-6 PROPOSED BY-LAWS FOR THE COMMUNITY PROMOTIONS COMMITTEE; (ADMINISTRATION) RECOMMENDATION: Approve the amended by-laws for the Community Promotions Committee. A-7 PROCLAMATION CONGRATULATING THE ECONOMIC OPPORTUNITY ® COMMISSION ON ITS 40TH ANNIVERSARY; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. u Mayor Peters pulled Item A-1 from the Consent Calendar; Councilmember Winholtz pulled Items A4 and A-6. MOTION: Councilmember DeMeritt moved the City Council approve the Consent Calendar with the exception of Items A-1, A4 and A-6. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) A-1 APPROVAL OF MINUTES FOR THE OCTOBER 24, 2005 CITY COUNCIL MEETING; (ADMINISTRATION) Mayor Peters referred to page 6, line 1 of the minutes and requested an amendment to her comment. MOTION: Mayor Peirce moved the City Council approve Item A-1 of the Consent Calendar as amended. The motion was seconded by Councilmember Baxley and carried unanimously. (5-0) 5 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — NOVEMBER 14, 2005 A-4 AWARD OF CONTRACT FOR CITY DOCK ICE PLANT REPLACEMENT; (HARBOR) Councilmember Winholtz asked why there was such a discrepancy in the bids received for the project. She also asked about the original bid referenced in the staff report. Harbor Director Rick Algert responded he thought it was the discrepancy was unusual but they are a qualified bidder. Mr. Algert also noted originally the budget for this project was estimated at $180,000, and the original bids came in at $300,000, which was rejected. The project was redesigned and placed for a re -bid in which Associated Pacific came in with the lowest bid. MOTION: Councilmember Winholtz moved the City Council approve Item A4 of the Consent Calendar. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) A-6 PROPOSED BY-LAWS FOR THE COMMUNITY PROMOTIONS COMMITTEE; (ADMINISTRATION) ® MOTION: Mayor Peters moved the City Council continue Item A-6 to the December 12, 2005 City Council meeting. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 RESOLUTION NO. 44-05 APPROVING AGREEMENT TO LEASE AND LEASE AGREEMENT BETWEEN DUKE ENERGY AND CITY OF MORRO BAY; (CITY ATTORNEY) City Attorney Robert Schultz stated although the City does not have regulatory authority over the Power Plant, it does administer the Outfall Lease. The heated discharge water from the Power Plant is pumped through subterranean pipes that traverse City - administered property, which is subject to the Public Trust for Commerce, Navigation and Fisheries. The heated water is then discharged into Estero Bay through a discharge canal located at the base of Morro Rock. The City also uses the outfall discharge system for brine discharge from its desalination facility. The City administers the Public Trust lands as the trustee for the State of California, which conveyed the Public Trust lands first to the County of San Luis Obispo and then to the City upon its incorporation. As administrators of public trust lands, the City is required to manage tidelands through statute and implementation of the Public Trust Doctrine. Uses on public trust lands must serve statewide, as opposed to purely local, public purposes. The existing Outfall Lease ® was entered into between the County and PG&E on November 15, 1954, and expired on 11 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — NO VEMBER 14, 2005 November 15, 2004. With the expiration of the Outfall Lease in November 2004, staff has negotiated a new Outfall Lease Agreement and is presenting the Agreement to Lease and Outfall Lease to Council for approval and execution. Mr. Schultz recommended the City Council adopt Resolution No. 44-05 authorizing the execution of the Agreement to Lease and Outfall Lease between the City and Duke Energy. Mayor Peters opened the hearing for public comment. The following people expressed support for the Agreement to Lease and Outfall Lease between the City and Duke Energy: Randy Hickock, Ken Vesterfelt, Ed Ewing, Dannie Tope, Dan Glessman, Stan House, Bill Woodson, Bob Dixon, Hal Tune, Jeremiah O'Brien, John Barta, Rodger Anderson, Dan Reddell, John Lomison, Lenny McKay, and Nancy Johnson. The following people expressed opposition to signing the Agreement to Lease and Outfall Lease between the City and Duke Energy: Andrew Christie, Jiro Nance, Michael Durick, Noah Smukler, Peter Risley, Richard Sidowski, Marla Bruton, Joey Racano, David Weisman, Roy Kline, Nelson Sullivan, Grant Crowell, David Nelson, Daniella Amon, Bonnie Phillips, and Roger Ewing. ® Bill Quigley requested Council obtain expert help and be cautious in making this decision. Burt Whitley asked why there is no cost of living inflation with this 50-year lease. Mayor Peters closed the public comment hearing. Councilmember Winholtz stated she has a difficult time approving a lease that offers less than what was proposed during the Memorandum of Understanding discussions in 2000. She said it is not to the benefit of the City's future or the future of the youth of Mono Bay to sell out for 1.5 million dollars. Councilmember Winholtz stated there are no guarantees with this agreement, and she would rather not sign the lease at this time and wait to see what happens with the sale of the plant. Councilmember Baxley stated the lease has been drawn up and negotiated for some time, and he supports the lease agreement. Councilmember DeMeritt stated from 1954 until 1998, when Duke Energy bought the power plant, this City received nothing from the power plant. She said this City could survive today without any revenue from the power plant. Councilmember DeMeritt noted the Harbor Department has never received a dime from the power plant, and ® they've survived. She said the City received $6.5 million during the two-year so-called `] MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — NOVEMBER 14, 2005 energy crisis and used it to purchase property and hire consultants. Councilmember DeMeritt stated by policy the City had to put the $1 million payment from Duke into Reserves. She said none of it could serve a public need this year. Councilmember DeMeritt noted that the money was such a small amount that it could only pay the salaries of top department heads for one year. She said the City didn't have problems until Duke Energy entered the picture. Councilmember Peirce stated if there is no natural gas left, by law the power plant would be removed. He said the City has made a profit on the properties bought and sold. Councilmember Peirce stated he is in support of executing the lease.. Mayor Peters stated in the early 1990's the City's finances were difficult and there were layoffs that took place. She said the City went through very difficult negotiations when Duke Energy first came to the City, and a staff member worked very hard and obtained advantages that we would not have otherwise. Mayor Peters stated this is a solid agreement for the City, and based on a conversation with the CEC, this is going to be a power plant for another two years and the City has no control on who Duke Energy sells this power plant to. ® MOTION: Councilmember Baxley moved the City Council adopt Resolution No. 44- 05 authorizing the execution of the Agreement to Lease and Outfall Lease between the City and Duke Energy. The motion was seconded by Councilmember Peirce and carried on the following roll -call vote: AYES: Baxley, Peirce, Peters NOES: DeMeritt, Winholtz ABSENT: None C. UNFINISHED BUSINESS C-1 REVIEW OF GRANT FUNDED DIRECTIONAL SIGNAGE INSTALLATION PROGRAM; (PUBLIC SERVICES) MOTION: Mayor Peters moved the City Council continue Item C-1 to the December 12, 2005 City Council meeting. The motion was seconded by Councilmember Baxley and carried unanimously. (5-0) 9 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — NOVEMBER 14, 2005 D. NEW BUSINESS D-1 PRESENTATION ON COOPERATIVE HOUSING; (CITY COUNCIL) Councilmember Winholtz stated in 2002, the Regional Housing Needs Plan prepared by the San Luis Obispo Council of Governments adopted numerical targets for" the development of housing units in the state -mandated Housing Element update that each of the seven incorporated cities and the County of San Luis Obispo are to accomplish within a specified period of time. Though the City has zoned for the appropriate quantity of housing required by the State, the City is not fulfilling the lower -end categories of affordability. Councilmember Winholtz introduced Jerry Rioux of the San Luis Obispo County Housing Trust Fund, and Mikel Robertson of the SLO Green Build Program who presented Council with possibilities and opportunities as to what is going on in the County, State and Country regarding affordable and sustainable housing. Mr. Rioux's presentation included such options as community land triists, and Mr. Robertson's presentation included the Green Builder Guidelines and Memorandum of.Understandings with the County's cities. This was an informational item, and no action was taken. ® D-2 DISCUSSION ON COUNCIL REVIEW OF CITY EMPLOYMENT VACANCIES; (CITY COUNCIL) El City Manager Robert Hendrix reported along with adoption of the budget last June, vacant permanent positions were "frozen". Under the freeze, authorization from the City Council is needed before recruitment can be initiated and the position filled. The City Council later followed up with a decision that provided authority to re -fill any police officer vacancies occurring during the budget year. In your most recent meeting, the City Council requested that I provide information on current and projected staff vacancies subject to the "freeze". Active recruitments are now underway for a police officer vacancy and for one of the vacant dispatcher positions. City Council approval is still required for authority to fill the second dispatch vacancy. Mr. Hendrix recommended the City Council consider the current and projected position vacancies; authorize filling the newest dispatch vacancy; authorize filling the Finance Director position when it becomes vacant; and consider action on the projected Recreation & Parks half-time parks position. MOTION: Councilmember Peirce moved the City Council direct staff to fill the vacant dispatch position. The motion was seconded by Councilmember Baxley and carried unanimously. (5-0) 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — NOVEMBER 14, 2005 MOTION: Councilmember Peirce moved the City Council continue discussion on the remainder City employment vacancies at the December 12, 2005 City Council meeting. The motion was seconded by Councilmember Baxley and carried unanimously. (5-0) D-3 CITY COUNCIL MEETING SCHEDULE FOR THE 2006 CALENDAR YEAR; (ADMINISTRATION) MOTION: Councilmember Baxley moved the City Council continue Item D-3 to the December 12, 2005 City Council meeting. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) ADJOURNMENT The meeting adjourned at 10:51 p.m. (Recorded by: ® Bridgett Bauer City Clerk C [to] 4 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 24, 2005 CLOSED SESSION — OCTOBER 24, 2005 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 negotiators regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property. • Property: One Acre Land at the Corner of Jacinto Street and SRI Negotiating Parties: City and Keyoto-Morro Bay, Inc. Negotiations: Sale Terms CS-2 GOVERNMENT CODE SECTION 54957; PERSONNEL ISSUES. Discussions regarding Personnel Issues including one (2) public employees regarding evaluation, specifically the City Manager and City Attorney. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. 1J PUBLIC SESSION — OCTOBER 24, 2005 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 OF SEPTEMBER 26, 2005 AND OCTOBER 10, 2005; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 INVESTMENT REPORT - AUGUST 2005; (FINANCE) RECOMMENDATION: Receive report for information. A-3 QUARTERLY BUDGET STATUS REPORT; (FINANCE) RECOMMENDATION: Receive report for information. A4 APPROVAL OF 2020 VISION REPORT FINAL VERSION; (ADMINISTRATION) RECOMMENDATION: Approve the final version of the 2020 Vision Report with amendments. A-5 RESOLUTION NO.39-05 ADOPTING COMPREHENSIVE CITY E-MAIL POLICY; (CITY ATTORNEY) RECOMMENDATION: This item has been pulled from the agenda. ® A-6 CANCELLATION OF THE NOVEMBER 28, 2005 CITY COUNCIL MEETING; (ADMINISTRATION) RECOMMENDATION: Cancel the November 28, 2005 City Council meeting. A-7 RESOLUTION NO.40-05 ADOPTING AMENDMENTS TO LEASES FOR LEASE SITE 89-89W AND 90-90W LOCATED AT 875 EMBARCADERO. (HARBOR) RECOMMENDATION: Adopt Resolution No. 40-05. A-8 RESOLUTION NO.41-05 ADOPTING ASSIGNMENT OF LEASE AGREEMENT FOR LEASE SITE 96-96W LOCATED AT 945 EMBARCADERO; (HARBOR) RECOMMENDATION: Adopt Resolution No. 41-05. A-9 PROCLAMATION DECLARING OCTOBER 2005 AS "FILIPINO HISTORY MONTH'; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. 11 3 B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 APPEAL OF A PLANNING COMMISSION APPROVAL WITH CONDITIONS OF AN EXPANSION TO A NON -CONFORMING SINGLE- FAMILY RESIDENCE LOCATED AT 450 TAHITI STREET; (PUBLIC SERVICES) RECOMMENDATION: Consider the issues raised in the appeal and approve the appeal, modifying the Planning Commission conditions to allow the expansion, or provide further direction to staff. B-2 PUBLIC HEARING ON FUNDING FOR THE PURCHASE AND ALTERNATIVE USES FOR THE DUKE ENERGY POWER PLANT SITE; (CITY ATTORNEY) RECOMMENDATION: Receive power point presentation and public comment, and direct staff accordingly. C. UNFINISHED BUSINESS C-1 STATUS REPORT ON DIRECTIONAL SIGNS PROGRAM; (PUBLIC SERVICES) ® RECOMMENDATION: Consider . and approve the sign materials, provide direction on sign locations, and authorize the expenditure of past Community Development Block Grant program income funds for the installation of the directional signs. D. NEW BUSINESS D-I REPORT ON LEGAL NOTICING METHODS; (CITY ATTORNEY) RECOMMENDATION: Direct staff to inform applicants to exclusively work with SLOCO DATA INC. in the preparation and mailings of all notices. 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. 11 let MINUTES - MORRO BAY CITY COUNCIL 16 CLOSED SESSION — OCTOBER 24, 2005 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Peters 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 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 Peters read the Closed Session Statement. CS-1 TRANSACTIONS. Instructing City's real property negotiators regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property. • Property: One Acre Land at the Comer of Jacinto Street and SRI Negotiating Parties: City and Keyoto-Morro Bay, Inc. Negotiations: Sale Terms CS-2 GOVERNMENT CODE SECTION 54957, PERSONNEL ISSUES. Discussions regarding Personnel Issues including one (2) public employees regarding evaluation, specifically the City Manager and City Attorney. The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:55 p.m. MOTION: Councilmember Peirce moved the meeting be adjourned. The motion was seconded by Councilmember Baxley and unanimously carried. (5-0) The meeting adjourned at 5:55 p.m. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 24, 2005 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Peters called the meeting to order at 6:00 p.m. PRESENT: Janice Peters Mayor Thad Baxley . Councilmember Melody DeMeritt Councilmember William Peirce Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix City Manager Andrea Lueker Assistant 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 Mike Prater Senior Planner Jim Koser Finance 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 Kim Kimball stated if the City does not sign the outfall lease, someone else will and the City will not receive the revenue. She requested the Council consider the economy of the City by signing the lease. Hank Roth announced the next Neighborhood Watch informational meeting will be held on October 26, 2005 at 6:00 p.m. Keith Taylor stated the Morro Bay Fire Department Open House was a huge success. Jessica Bream addressed Item A-4 of the Consent Calendar (Approval of the 2020 Vision Report Final Version), and stated the Vision 2020 Committee unanimously approved the Environmental Issue in the report. She expressed concern with some of the proposed ® amendments made to this report. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 24, 2005 Bruce Gibson with the County Planning Commission stated a Community 2050 Workshop would be held on November 19'h in Morro Bay. He said participants of this workshop would be able to vote on various issues concerning the County. Mr. Gibson stated the overall message of this workshop is the importance of regional interaction. Ric Deschler stated the Vision 2020 Committee report should represent the committee's work on community goals. Steve St. Clair stated City bed tax should be .used to present events such as the Harbor Festival. Ed Dumong stated the Fish & Game Commission's Marine Protection Act would put fishermen out of business. He said sea otters are wiping out the clam population in the bay. Mr. Dumong stated if a lease is not signed with Duke Energy, the property should be given back to the Indians. Ed Sylvester addressed the proposed boardwalk, which will take away 33 parking spaces on is the Embarcadero. He asked if the City would pay the in -lieu parking fees for the loss of these parking spaces. 11 Phil Hill stated the Vision 2020 Committee worked hard to prepare a visionary report for Morro Bay, and Council should not amend it. Ken Vesterfelt stated the Cruisin' Morro Bay Car Show distributed $19,800 in funds equally to the Police Explorers, Chamber of Commerce and the Rotary Club. He said it would be prudent for the City to spend more time on improving City services such as the Police and Fire Departments. Mayor Peters closed the hearing for public comment. DECLARATION OF FUTURE AGENDA ITEMS Councilmember Peirce requested the discussion on Council's review of City employment vacancies; Councilmember Baxley and Councilmember DeMeritt concurred. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. t] ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 24, 2005 A-1 APPROVAL OF MINUTES FOR THE REGULAR MEETINGS OF SEPTEMBER 26, 2005 AND OCTOBER 10, 2005; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 INVESTMENT REPORT - AUGUST 2605; (FINANCE) RECOMMENDATION: Receive report for information. A-3 QUARTERLY BUDGET STATUS REPORT; (FINANCE) RECOMMENDATION: Receive report for information. A-4 APPROVAL OF 2020 VISION REPORT FINAL VERSION; (ADMINISTRATION) RECOMMENDATION: Approve the final version of the 2020 Vision Report with amendments. ® A-5 RESOLUTION NO. 39-05 ADOPTING COMPREHENSIVE CITY E-MAIL POLICY; (CITY ATTORNEY) RECOMMENDATION: This item has been pulled from the agenda. A-6 CANCELLATION OF THE NOVEMBER 28, 2005 CITY COUNCIL MEETING; (ADMINISTRATION) RECOMMENDATION: Cancel the November 28, 2005 City Council meeting. A-7 RESOLUTION NO.40-05 ADOPTING AMENDMENTS TO LEASES FOR LEASE SITE 89-89W AND 90-90W LOCATED AT 875 EMBARCADERO; (HARBOR) RECOMMENDATION: Adopt Resolution No. 40-05. A-8 RESOLUTION NO. 41-05 ADOPTING ASSIGNMENT OF LEASE AGREEMENT FOR LEASE SITE 96-96W LOCATED AT 945 EMBARCADERO; (HARBOR) RECOMMENDATION: Adopt Resolution No. 41-05. Ll 0 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 24, 2005 A-9 PROCLAMATION DECLARING OCTOBER 2005 AS "FILIPINO HISTORY MONTH"; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. Councilmember Winholtz pulled Items A-1, A-3, A-4, A-6, A-7 and A-8 from the Consent Calendar. MOTION: Councilmember Winholtz moved the City Council approve Items A-2 and A-9 of the Consent Calendar. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) A-1 APPROVAL OF MINUTES FOR THE REGULAR MEETINGS OF SEPTEMBER 26, 2005 AND OCTOBER 10, 2005; (ADMINISTRATION) Councilmember Winholtz pulled the minutes of the October 10, 2005 City Council meeting, and requested an addition to page 8 referring to Council's discussion on the annexation issue. Is MOTION: Councilmember Peirce moved the City Council approve Item A-1 of the Consent Calendar as amended. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) A-3 QUARTERLY BUDGET STATUS REPORT; (FINANCE) Councilmember Winholtz asked if rates had been increased for the Kids Club program. Assistant City Manager Andrea Lueker responded rates have been increased for Kids Club and the revenue has exceeded what was generated last year at this time. Council requested a quarterly budget report to show the rise and fall of revenue sources. MOTION: Councilmember Winholtz moved the City Council approve Item A-3 of the Consent Calendar. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) A4 APPROVAL OF 2020 VISION REPORT FINAL VERSION; (ADMINISTRATION) Councilmember Winholtz expressed concern on the amendments made to the Vision 2020 report based on the public comments on this issue. 11 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 24, 2005 Mayor Peters clarified the Residents section was removed at the Council's previous direction. The suggested amendments move the goals included in that section to other sections, and in some cases combine them with duplicate goals already contained in those sections. Councilmember DeMeritt expressed concern that some of the suggested amendments were made without public review. MOTION: Councilmember Baxley moved the City Council approve Item A-4 of the Consent Calendar. The motion was seconded by Councilmember Winholtz and carried with Councilmember DeMeritt voting no. (4-1) A-6 CANCELLATION OF THE NOVEMBER 28, 2005 CITY COUNCIL MEETING; (ADMINISTRATION) Councilmember Winholtz stated she would like to schedule a joint meeting with the Planning Commission on this date. ® MOTION:. Councilmember Winholtz moved the City Council schedule a joint City Council/Planning Commission meeting for November 28, 2005. The motion was seconded by Mayor Peters and failed with Councilmember Baxley, Councilmember DeMeritt and Councilmember Peirce voting no. (2-3) MOTION: Councilmember DeMeritt moved the City Council cancel the regularly scheduled City Council meeting of November 28, 2005. The motion was seconded by Councilmember Peirce and carried with Mayor Peters and Councilmember Winholtz voting no. (3-2) A-7 RESOLUTION NO.40-05 ADOPTING AMENDMENTS TO LEASES FOR LEASE SITE 89-89W AND 90-90W LOCATED AT 875 EMBARCADERO; (HARBOR) Councilmember Winholtz expressed opposition to listing the Morro Bay Visitor Center as a marine -related use in order to be in compliance with the provisions of the lease. Councilmember DeMeritt stated Council should consider this issue in Closed Session. MOTION: Councilmember DeMeritt 'moved the City Council refer Item A-7 of the Consent Calendar to the Closed Session Agenda of November 14, 2005. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) rl ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 24, 2005 A-8 RESOLUTION NO.41-05 ADOPTING ASSIGNMENT OF LEASE AGREEMENT FOR LEASE SITE 96-96W LOCATED AT 945 EMBARCADERO; (HARBOR) Councilmember Winholtz pulled this item to congratulate the new owner of the Whale's Tail. MOTION: Councilmember Winholtz moved the City Council approve Item A-8 of the Consent Calendar. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) Mayor Peters called for a break at 7:15 p.m.; the meeting resumed at 7:25 p.m. B. PUBLIC HEARINGS, REPORTS & APPEARANCES B-I APPEAL OF A PLANNING COMMISSION APPROVAL WITH CONDITIONS OF AN EXPANSION TO A NON -CONFORMING SINGLE-FAMILY RESIDENCE LOCATED AT 450 TAHITI STREET; (PUBLIC SERVICES) Senior Planner Mike Prater stated the applicant proposes to remodel the existing fast floor is residence by converting the bedroom back into a one -car 266 square foot garage and expand a first floor bedroom by 37 square feet. The applicant also proposes to add a second floor addition of 888 square feet. The residence will result in a two-story structure with a 1,801 square foot living area and a one -car garage, which would produce an 81% increase to the floor area. A Conditional Use Permit is required for expansions to non -conforming structures -that exceed 25% of the existing floor area. The residence is non -conforming because it did not provide the two enclosed parking spaces required for a single-family dwelling over 1,000 square feet in living area. The Planning Commission considered the application at their August 15, 2005 meeting, where adding a condition to construct a standard side -by -side two -car garage approved the project. The applicant is requesting the City Council either approve the original proposal or consider allowing a tandem -parking layout. Mr. Prater recommended the City Council consider the issues raised in the appeal and approve the appeal, modifying the Planning Commission conditions to allow the expansion, or provide further direction to staff. C Garth Kornreich, agent for applicant/appellant, stated his client contends that by adding a . side -by -side garage will push the living space upstairs and will completely remodel the house by moving rooms around to areas they prefer not to have on the second floor, as well as not being feasible. The applicant is requesting the City Council either approve the original proposal or consider allowing a tandem -parking layout. VA ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 24, 2005 Mayor Peters opened the hearing for public comment. Colby Crotzer stated the City Council is responsible for building a livable City. He said this house sits on a narrow street, and the impact of parking on the encroachment will make this street less livable. Dorothy Cutter agreed with Mr. Crotzer, and stated a four -bedroom house should have a two -car garage. ' Mayor Peters closed the public comment hearing. Councilmember DeMeritt stated a four -bedroom house should have a two -car garage. She said this is a beautiful design but needs to be in another neighborhood. Councilmember DeMeritt stated this is a very narrow street and parking is a concern. She stated she supports denial of the appeal. Councilmember Peirce stated this house presently has three bedrooms, and the applicant is is trying to legitimize the house by making the illegal garage legal. He said there is space for three cars at this time, and with the neighboring houses built to those same standards, he supports the appeal. Councilmember Winholtz stated this is a beautiful project, however, she understands that Council needs to consider the future of this neighborhood. She said she could consider the idea of tandem parking. Councilmember Baxley stated the owner knew this was an illegal, non -conforming house when it was purchased. He said a four -bedroom house needs a two -car garage, and he supports denial of the appeal. Mayor Peters stated most of the larger houses on this street have single car garages. She said she supports the project with tandem parking and a paved area in front of the house for parking. MOTION: Councilmember DeMeritt moved the City Council deny the appeal and uphold the Planning Commission's decision on this project. The motion was seconded by Councilmember Winholtz and carried with Councilmember Peirce and Mayor Peters voting no. (3-2) Mayor Peters called for a break at 7:49 p.m.; the meeting resumed at 7:59 p.m. C 0 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 24, 2005 B-2 PUBLIC HEARING ON FUNDING FOR THE PURCHASE AND ALTERNATIVE USES FOR THE DUKE ENERGY POWER PLANT SITE; (CITY ATTORNEY) City Attorney Robert Schultz showed a PowerPoint presentation on alternative uses for the Duke Energy Power Plant site for Council review. He said the power plant holds three separate possibilities; such as, the power plant continues to operate as a peak plant; the modernization project goes forward; or the power plant is decommissioned. Mr. Schultz reviewed the various financial aspects of the sale of the power plant. He recommended the Council appoint an ad -hoc committee of two Council Members to meet with the City Attorney and develop a strategic team to research and analyze the potential funding mechanisms available to decommission the Morro Bay Power Plant. Mayor Peters opened the hearing for public comment. The following people expressed their ideas to the City Council on alternative uses for the Duke Energy Power Plant property: Dexter Rickets, Sue Andrews, Abe Perlstein, Joey Racano, Roy Kline, Joan Carter, Felix Rusnak, Marla Bruton, Richard Sadowski, Gene Doughty, Colleen ® Johnson, Leslie Smith, Larry Newland, Brian, Seo, Hale Tune, Peter Risley Bill Martony, Nelson Sullivan, Judy Vick, Ryan LaPort, Ken Smokoska, Joe Wallich, Tobey Crockett, David Weisman, Noah Smukler, Patti Dunton, John Barta, Pam Heatherington, Andrew Christie, Jono Kinkade, David Nelson, Monique Nelson, Phil Hill, Ken Winters, Rachel Aljilani, Colby Crotzer, Luke Politte, Nancy Castle, Jamie Irons, Dan Berman, Shoosh Crotzer, Christine Sanchez and Paul Twedt, Jr. The following were ideas on alternative uses for the Duke Energy Power Plant property: marine biology center, marine museum, aquarium, IMAX theater, wind power generating facility, eco-tourism uses, convention center, tourist destination, maritime museum, observatory, environmental and educational uses, cultural center, maintain power plant, phase out the outfall lease, mixed use public space, new type of power plant with renewable sources of energy, Community Choice Aggregation, solar power facility, synthetic tide pool museum, extension of the bike trail, farmers market, resting places on this property should be seen as culturally sensitive property, research center in collaboration with Cal Poly, Cuesta College and National Estuary Program, marine and wildlife rehabilitation center, bio-diesel, solar, wind, wave power uses, new modem power plant with campus like setting, and ocean thermal plant. Mayor Peters closed the public comment hearing. 11 0J ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 24, 2005 Councilmember DeMeritt offered to serve on an ad -hoc committee to meet with the City Attorney and develop a strategic team to research and analyze the potential funding mechanisms available to decommission the Morro Bay Power Plant; Councilmember Baxley was also nominated to serve on this committee. MOTION: Councilmember DeMeritt moved the City Council appoint Councilmember Baxley and herself to serve on an ad -hoc committee to meet with the City Attorney and develop a strategic team to research and analyze the potential funding mechanisms available to decommission the Morro Bay Power Plant. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) C. UNFINISHED BUSINESS C-I STATUS REPORT ON DIRECTIONAL SIGNS PROGRAM; (PUBLIC SERVICES) This item was continued to the November 14, 2005_ City Council meeting. D. NEW BUSINESS ® D-I REPORT ON LEGAL NOTICING METHODS; (CITY ATTORNEY) E Senior Planner Mike Prater stated on September 26, 2005, the City Council directed staff to research the various methods and options regarding noticing procedures for development proposals. The current practice is to allow the applicant to prepare the radius map and mailing list with the submittal, which is then spot-checked when the application is submitted, and later checked again by the planner when reviewing the entire application. In addition to the mailed notices, each site is posted with the project description, schematic plan or map of the proposal, and the date of the hearing. There are also several unofficial forms of noticing that occur on tentative agendas, Planning Commission tracking sheets, and a listing of projects on Planning Commission agendas that have been submitted for administrative approval. Other methods of official mailed noticing generally include the use of data service providers. Staff has compared sample sets of labels from four various sources that compile information on property owners and current residents within the required radius for a given project that include our current GIS system, title companies, and field checks. Sample results indicate that other than the staff generated maps and lists, that SLOCO DATA, INC. provides the most accurate labels and has built-in a process for obtaining the most current information with a daily update from the County Assessor and Recorder's office along with a mailing service. Mr. Prater recommended the City Council direct staff to inform applicants to exclusively work with SLOCO DATA INC. in the preparation and mailings of all notices. 10 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 24, 2005 MOTION: Councilmember Winholtz moved the City Council direct staff to require applicants to exclusively work with SLOCO DATA INC. and City Staff in the preparation and mailings of all notices. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) ADJOURNMENT - 10:32 p.m. Recorded by: Bndgett Bauer City Clerk C C ® NOTICE OF SPECIAL MEETING NOTICE IS HEREBY GIVEN that the Morro Bay City Council will be holding a Special Meeting on Thursday, October 20, 2005 at 5:00 p.m. to be held in the Veterans' Memorial Building, 209 Surf Street, Morro Bay, California. The City Council will be previewing the agenda for the Morro Bay/Cayucos Sanitary District Joint Powers Authority meeting as follows: A. CONSENT CALENDAR 1. Minutes of September 8, 2005 Meeting - Recommend approve. 2. Minutes of September 29, 2005 WWTP (JPA) Technical Advisory Committee Meeting - Recommend approve. B. UNFINISHED BUSINESS 1. Consideration to Approve FY 2005-2006 Budget (Connelly) 2. Status Report on the Full Secondary WWTP Upgrade 9 0 Year Compliance Schedule (Keogh) C. NEW BUSINESS 1. Report from WWTP (JPA) Technical Advisory Committee on WWTP ® Upgrade (Keogh Verbal) 2. Schedule Next Joint Meeting and Agenda Items The. City Council will adjourn to the Morro Bay/Cayucos Sanitary District Joint Powers Authority meeting that will begin at 7:00 p.m., and will be held in the Cayucos Veteran's Hat] at Ocean Ave. and Cayucos Dr. (at Ocean Front St.), Cayucos, CA 93430 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. DATED: October 17, 2005 C' J ® City ®i 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 10, 2005 CLOSED SESSION — OCTOBER 10, 2005 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA ® CS-1 GOVERNMENT CODE SECTION 54957; PERSONNEL ISSUES. Discussions regarding Personnel Issues including one (2) public employees regarding evaluation, specifically the City Manager and City Attorney. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. ® PUBLIC SESSION — OCTOBER 10, 2005 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 ® 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 ENVIRONMENTAL REVIEW AND PROJECT CONDITIONS FOR 516 SHASTA AVENUE; (PUBLIC SERVICES) RECOMMENDATION: Adopt the Mitigated Negative Declaration, and approve the project with conditions. A-2 ACCEPTANCE OF LETTER OF RESIGNATION FROM PUBLIC WORKS ADVISORY BOARD MEMBER; (ADMINISTRATION) RECOMMENDATION: Accept letter of resignation. B. PUBLIC HEARINGS, REPORTS & APPEARANCES —NONE. C. UNFINISHED BUSINESS C-I UPDATE AND DISCUSSION ON CURRENT STATUS OF MTBE CONTAMINATION AT 1840 MAIN STREET; (CITY ATTORNEY) ® RECOMMENDATION: Receive presentation for information. C-2 CONSIDERATION OF FINAL VERSION OF THE 20-20 VISION REPORT; (ADMINISTRATION) RECOMMENDATION: Discuss and direct staff accordingly. C-3 REPORT ON ALTERNATIVES FOR COMPLETING A PARKING MANAGEMENT PLAN; (PUBLIC SERVICES) RECOMMENDATION: Consider and approve the work program for developing a Parking Management Plan. C4 REPORT ON BACK BAY ISSUES; (HARBOR) RECOMMENDATION: Discuss and direct staff accordingly. C-5 DISCUSSION OF ANNEXATION PROCESS PERTAINING TO THE BACK BAY; (PUBLIC SERVICES) RECOMMENDATION: Consider annexation alternatives when the Local Agency Formation Commission conducts their Sphere of Influence and ® Municipal Service Review for the City within the next six months. 3 ® C-6 PROPOSAL FOR COMPREHENSIVE CITY E-MAIL POLICY; (CITY ATTORNEY) RECOMMENDATION: Discuss and direct staff accordingly. C D. NEW BUSINESS D-1 DISCUSSION ON STRUCTURING A TOWN HALL MEETING; (CITY COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. D-2 REVIEW PROJECT PRIORITIES FOR TRANSPORTATION ACT FUNDED PROJECTS; (CITY COUNCIL) RECOMMENDATION: Receive report for information. D-3 REPORT ON ADVISORY BOARD MEMBER (ADMINISTRATION) RECOMMENDATION: Discuss and direct staff accordingly. �U7falU:7►1VIt1►fIY ATTENDANCE; 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 10, 2005 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Peters 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 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 Peters read the Closed Session Statement. ® CS-1 GOVERNMENT CODE SECTION 54957; PERSONNEL ISSUES. Discussions regarding Personnel Issues including one (2) public employees regarding evaluation, specifically the City Manager and 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 Baxley and unanimously carried. (5-0) The meeting adjourned at 5:50 p.m. C ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 10, 2005 VETERANS MEMORIAL HALL - 6:00 P.M. E Mayor Peters called the meeting to order at 6:00 p.m. PRESENT: Janice Peters Mayor Thad Baxley Councilmember Melody DeMeritt Councilmember William Peirce Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix Andrea Lueker Robert Schultz Bridgett Bauer Rick Algert Bruce Ambo Bill Boucher Frank Cunningham Tim Olivas Mike Pond Jim Koser City Manager Assistant City Manager City Attorney City Clerk Harbor Director Public Services Director Capital Projects Manager City Engineer Acting Police Chief Fire Chief Finance 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 addressed the closure of the Duke Energy Power Plant, and requested the City Council include the community in discussions relating to this property: Jack McCurdy, Peter Risley, Hershel Parker, Joan Carter, Andrew Christie, Abe Perlstein, Eric Greening, Henrietta Groot, Ann Reeves, Roger Ewing, David Nelson and Judy Vick. The following people expressed support for the annexation of the back bay: Roger Ewing, Vincent McNamara, Corey Wade, Quill Chase, and Christian Beetle. Hershel Parker expressed opposition to the City renewing the outfall lease with Duke Energy without knowing who might purchase the plant. He said the City might profit ® from revenue with eco-tourism at this site. 2 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 10, 2005 Keith Taylor, Friends of the Morro Bay Fire Department, encouraged the public to attend the open house at the Fire Station on October 22"d Joe Wallach referred to Section 17.18.180 of the Zoning Ordinance (update) regarding standards for recreational vehicle (RV) parks. He said the update to this ordinance includes a 38% increase in density of already over -crowded RV parks. Mr. Wallock stated this amendment to the City codes could include impacts on traffic, visual quality and some environmental impacts. Eric Greening addressed affordable housing and noted that people that do not drive should not have to pay for parking and subsidize those who do drive. Phil Hill addressed the importance of the Boatyard, and stated the winter weather storms could create damage to boats in the harbor. He also noted all of the birds he witnessed while paddling in the bay, and how sad that it will soon be hunting season in the back bay. ® Ed Ewing stated the power plant has helped this community financially. He said tax dollars should not be used to buy the power plant property. Mr. Ewing stated the best way to fmd out what the community wants is to place it before the people to vote on. David Nelson addressed the Duke Energy Power Plant closure, and asked if the City has all of the guarantees of the MOU to vote for the outfall lease, which is killing the estuary. Jamie Irons stated he is an employee with Duke Energy. He said there is a considerable voice in support of the plant, and requested the City be more responsible by looking into the co -existing of a power plant. Mayor Peters closed the hearing for public comment. 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 DeMeritt requested to revisit the use of new revenues policy and adding a sense of priorities during the mid -budget review; Councilmember Winholtz concurred. Councilmember DeMeritt also requested to agendize a public hearing on funding for the purchase and alternative uses for the Duke Energy Power Plant site; Councilmember Winholtz and Mayor Peters concurred. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 10, 2005 Councilmember Winholtz requested to agendize the cancellation of the November 28, 2005 City Council meeting; Councilmember Baxley and Mayor 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-1 APPROVAL OF ENVIRONMENTAL REVIEW AND PROJECT CONDITIONS FOR 516 SHASTA AVENUE; (PUBLIC SERVICES) RECOMMENDATION: Adopt the Mitigated Negative Declaration, and approve the project with conditions. A-2 ACCEPTANCE OF LETTER OF RESIGNATION FROM PUBLIC WORKS ADVISORY BOARD MEMBER; (ADMINISTRATION) RECOMMENDATION: Accept letter of resignation. Councilmember Winholtz pulled Item A-1 of the Consent Calendar. ® MOTION: Councilmember Winholtz moved the City Council approve Item A-2 of the Consent Calendar. The motion was seconded by Councitmember Peirce and carried unanimously. (5-0) A-1 APPROVAL OF ENVIRONMENTAL REVIEW AND PROJECT CONDITIONS FOR 516 SHASTA AVENUE; (PUBLIC SERVICES) Councihnember Winholtz asked for clarification on the Summary of Required Mitigation Measures (Land Use/Planning), relating to restrictions on the footprint proposed by the project in perpetuity. She noted that other projects had a deed restriction of 30 years instead of in perpetuity. Public Services Director Bruce Ambo responded that the findings of the conditions of approval of this site embrace the findings approved by the City Council. MOTION: Councilmember Winholtz moved the City Council approve the Environmental Review and Project Conditions for 516 Shasta Avenue with a change to the Mitigated Measures that the applicant shall deed restrict the units fronting on Shasta Avenue to remain one-story residential structures, of the same footprint proposed by this project for thirty (30) years. The motion was seconded by Councilmember Peirce and carried ® with Councilmember Baxley voting no. (4-1) 0 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 10, 2005 B. PUBLIC HEARINGS, REPORTS & APPEARANCES — NONE C. UNFINISHED BUSINESS CA UPDATE AND DISCUSSION ON CURRENT STATUS OF MTBE CONTAMINATION AT 1840 MAIN STREET; (CITY ATTORNEY) The City Council received a presentation from Curt Stanley of Shell Global Solutions, Inc. along with Gary Beckett and Tom Kem on the MtBE incident and the resolution process. This was an informational item; no action was taken. C-2 CONSIDERATION OF FINAL VERSION OF THE 20-20 VISION REPORT; (ADMINISTRATION) This item was continued to the October 24, 2005 City Council meeting. ® C-3 REPORT ON ALTERNATIVES FOR COMPLETING A PARKING MANAGEMENT PLAN; (PUBLIC SERVICES) Public Services Director Bruce Ambo stated the purpose of this discussion is to establish a work program for a process that includes the analysis of a number of factors that influence parking and circulation on the Embarcadero, in downtown and possibly other areas of the community. 'In order to conduct a meaningful analysis of the parking situation on the Embarcadero and downtown, it will be necessary to study these areas during their peak season, which is next.summer. The objective of this analysis is to get a clear understanding about how the areas perform during our critical times and identify opportunities and constraints to maximizing the efficiency of the parking and circulation systems. Mr. Ambo recommended the City Council consider and approve this work program for developing a Parking Management Plan, and: allocate funds for the Parking Management Plan and the Embarcadero Circulation Plan from the Parking In -Lieu fund; and, provide direction to staff on the overall work program and the review process of the individual subcomponents of the program. Councilmember Baxley stated the City should move forward with one-way circulation on the Embareadero; Councilmember DeMeritt concurred. Councilmember DeMeritt stated while serving on the Public Works Advisory Board, she received a draft Parking Management Plan dated 1992, and it still has not been adopted as ® a final plan. She said in this draft plan, it is stated that parking in -lieu fees are based on land cost, cost of design, cost of improvements and administrative costs. 0 ® ,MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 10, 2005 Mayor Peters stated why should one establishment pay for parking, when other establishments are benefiting from the same customers. Based on this, Mayor Peters stated she would like Council to review the parking in -lieu value for one business vs. another, and perhaps level the playing field and amend the zoning ordinance. Councilmember Winholtz stated she supports moving forward with the circulation on the Embarcadero. She said she would like a Parking Management Plan for the whole City. MOTION: Councilmember Baxley moved the City Council direct staff to return to the December 12, 2005 City Council meeting with a public hearing on circulation/partial one-way Embarcadero traffic pattern, that would include delivery and loading options, cost, and length of time to complete. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) MOTION: Mayor Peters moved the City Council direct staff to return to the December 12, 2005 City Council meeting with a public hearing on parking ® regulations in the proposed zoning ordinance. The motion was seconded by Councilmember Baxley and carried with Councilmember DeMeritt and Councilmember Winholtz voting no. (3-2) MOTION: Mayor Peters moved the City Council continue discussion on the Parking Management Plan funding to the December 12, 2005 City Council meeting. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) C-4 REPORT ON BACK BAY ISSUES; (HARBOR) Harbor Director Rick Algert stated the Harbor Advisory Board reviewed the issue of abandoned vessels in the bay and boats illegally moored in windy cove just south of the city limits in the Fish & Game Morro Bay Wildlife Area. The Harbor Advisory Board recommended the City Council write a letter to Fish & Game about the problems in the back bay area, contact the National Estuary Program about the Board's concerns and ask if any grant money is available, and to notify Fish & Game in the letter that they will be billed for any future City costs associated with sunken/abandoned vessels from that area. The Fish & Game Department had begun an enforcement program for the windy cove illegal moorings and that funds had tentatively been identified to reimburse the Fish & Game Department for that program. The Regional Water Quality Control Board is finalizing their Supplemental Environmental Program with the California Men's Colony ® to provide approximately $80,000 in fund to the Morro Bay National Estuary Program to G1 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 10, 2005 reimburse the Fish & Game Department and the City of Morro Bay Harbor Department for costs associated with removing illegally moored vessels and abandoned vessels/mooring gear and tackle from the Morro Bay Wildlife Area. Mr. Algert recommended the City Council consider the recommendation of the Harbor Advisory Board and direct staff accordingly. MOTION: Mayor Peters moved the City Council send a letter to California Department of Fish & Game on back bay management issues, and also notify Fish & Game in the letter that they will be billed for any future City costs associated with sunken/abandoned vessels from that area. The motion was seconded by Councilmember Wihholtz and carried unanimously. (5-0) C-5 DISCUSSION OF ANNEXATION PROCESS PERTAINING TO THE BACK BAY; (PUBLIC SERVICES) Public Services Director Bruce Ambo stated on September 12, 2005 the City Council directed that the topic of "annexation of the back bay" be placed on a future Council ® agenda. State Law first regulated annexation in California in 1963 when Local Agency Formation Commission's (LAFCO) were established to "discourage urban sprawl and encourage the orderly formation and development of local governmental agencies based upon local conditions and circumstances." LAFCO staff has indicated the annexation process for the back bay area would take between three to six months. The process includes a resolution of application from the City, pre -zoning the area which also makes the City the lead agency for CEQA, submittal of the application and fees to LAFCO, a negotiated tax agreement between the City and County, a LAFCO hearing, and a conducting authority hearing (protest hearing). The Sphere of Influence/Municipal Service Review process takes between three to twelve months depending on the complexity of the issues. LAFCO is the lead agency for the Sphere of Influence/Municipal Service Review, and this would be the first step towards annexation. LAFCO staff intends to begin the City of Morro Bay Sphere of Influence/Municipal Service Review following completion of the City of San Luis Obispo's that is currently underway. Mr. Ambo recommended that further consideration of annexation alternatives be taken up with the Sphere of Influence/Municipal Service Review process when it begins within the next six months. E Consensus of the Council was to consider annexation alternatives when the Local Agency Formation Commission conducts their Sphere of Influence and Municipal Service Review for the City within the next six months. `1 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING = OCTOBER 10, 2005 The City Council had a discussion on sending a letter to the Fish & Game Commission, as well as requesting the Harbor Advisory Board to discuss the management of the back bay; and, how the City can take control of the annexation through discussions with the State Lands Commission. No further action was taken on this item. C-6 PROPOSAL FOR COMPREHENSIVE CITY E-MAIL POLICY; (CITY ATTORNEY) City Attorney Robert Schultz stated the Public Records Act states, "'Public Record' includes any writing containing information relating to the conduct of the public's business prepared, owned, used or retained by any state or local agency regardless of physical form of characteristics." In 2002, the Legislature amended the definition of "writing" in the Public Records Act to include electronic communications. The legislative history states, in part, that the statute was necessary because ''....a municipality can claim that e-mail and other electronic correspondence such as facsimiles are not 'records' or 'writings' and therefore avoid disclosure under the Public Records Act." Mr. Schultz stated that most ® cities have adopted e-mail policies to help avoid disputes over whether it is subject to disclosure. The City's current e-mail policy does not explain in enough detail how City officials and employees should handle e-mail; therefore, he has revised the City's Policies and Procedures (Section 4.5) for Council's consideration. Mr. Schultz stated with Council's approval of these revisions, he will return with a resolution amending the City's e-mail policy at the October 24, 2005 City Council meeting. 11 MOTION: Councilmember Peirce moved the City Council direct the City Attorney to return with a resolution adopting revisions to the City's Comprehensive City E-Mail Policy at the October 24, 2005 City Council meeting. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) Mayor Peters called for a break at 9:45 p.m.; the meeting resumed at 9:55 p.m. D. NEW BUSINESS D-1 DISCUSSION ON STRUCTURING A TOWN HALL MEETING; (CITY COUNCIL) Mayor Peters stated during her campaign she stated she would hold one or two town hall meetings per year. 91 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 10, 2005 The City Council scheduled a town hall meeting for January 30, 2006. No further action was taken on this item. D-2 REVIEW PROJECT PRIORITIES FOR TRANSPORTATION ACT FUNDED PROJECTS; (CITY COUNCIL) Capital Projects Manager Bill Boucher stated on October 9, 1995, the City Council adopted Resolution No. 119-95 that set priorities for pursuit of street and transportation - related projects based on the then -available funding and staff constraints. During that time and subsequently, staff was working with the San Luis Obispo Council of Governments (SLOCOG) to place most, or all, of the projects identified in our adopted planning policies, most particularly the Circulation Element to the General Plan adopted in 1988, onto a regional listing so that if and when grant funding became available, we would be in a position for funding. On April 6, 2005 the SLOCOG Board approved a document called "Vision 2025, the Regional Transportation Plan for San Luis Obispo County", also known as the "RTP". In that document was a compilation of all the projects we had asked SLOCOG to include for grant consideration over the years. As ® SLOCOG Board representative for our community, Councilmember Winholtz has suggested that now would be an appropriate time for the City Council to look at the listings and determine whether changes are warranted. Mr. Boucher stated if there are specific projects the Council would like to be removed from the RTP, staff should be directed to return with recommendations of processes that may be needed to amend the planning policies. Similarly, should the Council wish to place projects in priority order, staff will return with such a listing for consideration. The City Council made the following prioritized list: s unrankec unrankec unrankec Morro Bay Blvd./Quintana Rd Roundabout Main/Raddiffe Improvements Relocate Embarcadero Main St. Widening Morro Bay Blvd Widening Main/Quintana Sight Distance unranked South St. Extension' = to be eliminated upon cer0cation of 2004 Grculation Element 0 C 1 Cl MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 10, 2005 unranked unranked unranked unranked unranked unranked completed SLO County Non -Motorized Transportation Provram Harborwalk Gateway Improvements N. Main Beautification State Park Multi -Use Path Lateral Access Improvements Downtown Class 2 Improvements North Embarcadero, Class 2 Morro Rock/Coleman Improvements Morro Creek Multi -Use Morro Strand Multi -Use Beach Tract Class 2 Quintana Road Class 2 MB-Ca ucos Connector MOTION: - Councilmember Winholtz moved the City Council re -prioritize the lists of Transportation Act Funded Projects funded by San Luis Obispo Council of Governments as discussed by the City Council, and forward this information to San Luis Obispo Council of Governments staff. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) D-3 REPORT ON ADVISORY BOARD MEMBER ATTENDANCE; (ADMINISTRATION) City Manager Robert Hendrix reported to Council on Advisory Board members who have four or more absences during the calendar year. This is consistent with the adopted policy of the Council. Council may, at its discretion, remove members with four or more absences in a calendar year. The City is also carrying vacancies through to the end of this fiscal year. Mr. Hendrix recommended the City Council review the absences on the various City Advisory Boards, and direct staff accordingly. MOTION: Mayor Peters moved the City Council direct staff to send a letter to board members with four absences in one year stating any further absences will result in immediate resignation; and, send a letter to those with three absences notifying them that they are approaching automatic removal from their respective Board. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) 10 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 10, 2005 ADJOURNMENT The meeting adjourned at 10:43 p.m. Recorded by: Bridgett Bauer City Clerk 11 ® City ®f 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 26, 2005 CLOSED SESSION — SEPTEMBER 26, 2005 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA CS-1 GOVERNMENT CODE SECTION 54957.6 CONFERENCE WITH ® LABOR NEGOTIATOR. Conference with the City Manager, the City's Designated Representative, for the purpose of reviewing the City's position regarding salaries, salary schedules, or compensation paid in the form of fringe benefits, and giving instruction to the Designated Representative. CS-2 GOVERNMENT CODE SECTION 54957; PERSONNEL ISSUES. Discussions regarding Personnel Issues including one (1) public employee regarding evaluation, specifically the City Manager. CS-3 TRANSACTIONS. Instructing City's real property negotiators regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property. • Property: Lease Site: Outfall Line Negotiating Parties: City and Duke Energy Negotiations: Lease Terms and Conditions IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. 11 ® PUBLIC SESSION - SEPTEMBER 26, 2005 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 SEPTEMBER 12, 2005 REGULAR CITY COUNCIL MEETING; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 RESOLUTION NO. 37-05 IMPLEMENTING PARKING IN -LIEU FEES; (CITY ATTORNEY) RECOMMENDATION: Adopt Resolution No. 37-05. A-3 STATUS REPORT ON CBDG GRANT FOR NORTH MORRO BAY FIRE STATION REHABILITATION; (FIRE) RECOMMENDATION: Receive report for information. A-4 RESOLUTION NO. 36-05 APPROVING ASSIGNMENT OF A 1/3 INTEREST IN THE LEASE AGREEMENT FOR LEASE SITE 53-56/53W-56W, LOCATED AT 501 EMBARCADERO; (HARBOR) RECOMMENDATION: Adopt Resolution No. 36-05. A-5 HURRICANE KATRINA RELIEF RESOLUTION; (CITY ATTORNEY) ® RECOMMENDATION: Adopt Resolution No. 38-05. A-6 PROCLAMATION DECLARING FIRE PREVENTION WEEK; (FIRE) RECOMMENDATION: Adopt Proclamation. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-I PUBLIC HEARING ON CREEK CLEARANCE COSTS; (PUBLIC SERVICES) RECOMMENDATION: Discuss and direct staff accordingly. . B-2 DISCUSS, FURTHER DEFINE AND CLARIFY INSURANCE NEEDS AND COSTS TO BE RECOVERED FOR SPECIAL EVENTS; (ADMINISTRATION) RECOMMENDATION: Discuss and direct staff accordingly. B-3 PRESENTATION ON BIO-DIESEL FUEL ALTERNATIVE; (HARBOR) RECOMMENDATION: Receive presentation for information. 3 ® C. UNFINISHED BUSINESS C-1 REPORT AND DISCUSSION ON RECREATION AND PARKS COMMISSION LETTER REGARDING THE BUDGET; (ADMINISTRATION) RECOMMENDATION: Discuss and direct staff accordingly. C-2 REVIEW OF CITY ATTORNEY MEMO TO PLANNING COMMISSION ON DETERMINATION OF COMMON OPEN SPACE REQUIREMENTS; (CITY ATTORNEY) RECOMMENDATION: Discuss and direct staff accordingly. C-3 REPORT ON LEGAL REQUIREMENTS FOR NOTICING; (CITY ATTORNEY) RECOMMENDATION: Discuss and direct staff accordingly. C-4 REPORT AND DISCUSSION ON AGENDA PLANNING; (ADMINISTRATION) RECOMMENDATION: Adopt an Agenda -Planning Guide. • D. NEW BUSINESS D-I REPORT ON BACK BAY ISSUES; (HARBOR) RECOMMENDATION: Discuss and direct staff accordingly. D-2 DISCUSSION ON ANNEXATION PROCESS; (PUBLIC SERVICES) RECOMMENDATION: Consider annexation alternatives when Local Agency Formation Commission staff conducts their Sphere of Influence and Municipal Service Review for the City within the next six months. 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 — SEPTEMBER 26, 2005 ® CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Peters 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 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 Peters read the Closed Session Statement. CS-1 GOVERNMENT CODE SECTION 54957.6; CONFERENCE WITH ® LABOR NEGOTIATOR. Conference with the City Manager, the City's Designated Representative, for the purpose of reviewing the City's position regarding salaries, salary schedules, or compensation paid in the form of fringe benefits, and giving instruction to the Designated Representative. CS-2 GOVERNMENT CODE SECTION 54957; PERSONNEL ISSUES. Discussions regarding Personnel Issues including one (1) public employee regarding evaluation, specifically the City Manager. CS-3 GOVERNMENT CODE SECTION 54956.8, REAL PROPERTY TRANSACTIONS. Instructing City's real property negotiators regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property. • Property: Lease Site: Outfall Line Negotiating Parties: City and Duke Energy Negotiations: Lease Terms and Conditions The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 6:00 p.m. MOTION: Councilmember Peirce moved the meeting be adjourned. The motion was ® seconded by Councilmember DeMeritt and unanimously carried. (5-0) The meeting adjourned at 6:00 p.m. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 26, 2005 ® VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Peters called the meeting to order at 6:10 p.m. PRESENT: Janice Peters Mayor Thad Baxley. Councilmember Melody DeMeritt Councilmember William Peirce Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix City Manager Andrea Lueker Assistant City Manager Robert Schultz City Attorney, Bridgett Bauer City Clerk Rick Algert Harbor Director Bruce Ambo Public Services Director } Frank Cunningham City Engineer John DeRohan Police Chief Dave Phillips Maintenance Supervisor Mike Pond Fire Chief Jim Koser Finance 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 Greg Smith, State Department of Parks and Recreation, gave an update for the Department stating the temporary fences on Morro Strand State Beach would be removed; the asphalt at the south end of Morro Strand State Beach is being restored; and paving is taking place in the State Park. Betty Forsythe gave an update on Friends of the Library progress. Hank Roth announced there would be a Neighborhood Watch meeting on September 28's, and the program will be on City Emergency Services. Keith Taylor, Friends of Morro Bay Fire Department; -,gave an update on this weekend's fire calls. 2 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 26, 2005 Sam Gilstrap addressed Item A-2 (Resolution No. 37-05 Implementing Parking In -Lieu Fees) stating a $20,000 increase in parking in -lieu fee could cause adverse affects on local businesses and the revitalization of the downtown area. Marla Bruton expressed concern with the project at Quintana Road and Main Street. Richard Sadowski expressed concern with the reclamation discharge into the estuary. Suzie Schultz announced the annual Harbor Festival would be held this weekend. John Weiss addressed the challenges of insurance and City fees for special events, and requested Council consideration in this matter. Roger Ewing stated the International Skateboard Slolam Competition was held in Mono Bay last weekend; he- said this event should have been publicized. He said the Community Promotions Committee should review eco-tourism. Mr. Ewing also thanked Councilmember Baxley for requesting to agendize the annexation of the back bay item. Lynda Merrill addressed the parking in -lieu fee item and fees for special events. She also ® stated she has heard complaints about the survey that is taking place on revenue and noted perhaps the questions could be less difficult to answer. Mayor Peters closed the hearing for public comment. Mayor Peters called for a break at 6:50 p.m.; the meeting resumed at 7:05 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 SEPTEMBER 12, 2005 REGULAR CITY COUNCIL MEETING; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 RESOLUTION NO. 37-05 IMPLEMENTING PARKING IN -LIEU FEES; (CITY ATTORNEY) 0 RECOMMENDATION: Adopt Resolution No. 37-05. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 26, 2005 A-3 STATUS REPORT ON CBDG GRANT FOR NORTH MORRO BAY FIRE STATION REHABILITATION; (FIRE) RECOMMENDATION: Receive report for information. A-4 RESOLUTION NO. 36-05 APPROVING ASSIGNMENT OF A 1/3 INTEREST IN THE LEASE AGREEMENT FOR LEASE SITE 53-56/53W-56W, LOCATED AT 501 EMBARCADERO; (HARBOR) RECOMMENDATION: Adopt Resolution No. 36-05. A-5 HURRICANE KATRINA RELIEF RESOLUTION; (CITY ATTORNEY) RECOMMENDATION: Adopt Resolution No. 38-05. A-6 PROCLAMATION DECLARING FIRE PREVENTION WEEK; (FIRE) RECOMMENDATION: Adopt Proclamation. ® Councilmember Peirce pulled Item A-2 from the Consent Calendar; Councilmember DeMeritt pulled item A-3; and Mayor Peters pulled Item A-6. MOTION: Councilmember Winholtz moved the City Council approve Items A-1, A- 4 and A-5 of the Consent Calendar. The motion was seconded by Councilmember Baxley and carried unanimously. (5-0) A-2 RESOLUTION NO. 37-05 IMPLEMENTING PARKING IN -LIEU FEES; (CITY ATTORNEY) Councilmember Peirce stated he pulled this item because he is not in support of Resolution No. 37-05. Councilmember Baxley stated he has concern with the $20,000 in -lieu fee being a little high, and could cause developers not to be able to afford to build in Morro Bay; he suggested lowering the fee to $15,000. Councilmember DeMeritt addressed the number of new commercial buildings that remain vacant. She said the $20,000 in -lieu fee would allow the City to do something about parking; however, eliminating the parking in -lieu fee could place the responsibility on the builders for providing parking. ® Councilmember Winholtz stated she supports the $20,000 in -lieu fee; however, she has concern with using these funds to hire a consultant. 2 11 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 26, 2005 Mayor Peters stated she supports lowering the parking in -lieu fee to $15,000. MOTION: Councilmember Baxley moved the City Council approve Item A-2 of the Consent Calendar with the amendment amending the parking in -lieu fee to $15,000. The motion was seconded by Councilmember Winholtz and carried with Councilmember DeMeritt and Councilmember Peirce voting no. (3-2) A-3 STATUS REPORT ON CBDG GRANT FOR NORTH MORRO BAY FIRE STATION REHABILITATION; (FIRE) Councilmember DeMeritt stated the City has received CDBG grant funding for the North Morro Bay Fire Station rehabilitation for $500,000; however there is a $1,000,000 shortfall. She suggested funds from the sale of the Cloister's property should be dedicated to this project until the CDBG funds come through. MOTION: Councilmember Peirce moved the City Council approve Item A-3 of the Consent Calendar. The motion was seconded by Councilmember Baxley and carried unanimously. (5-0) is A-6 PROCLAMATION DECLARING FIRE PREVENTION WEEK; (FIRE) Mayor Peters pulled this item for public awareness. MOTION: Mayor Peters moved the City Council approve Item A-6 of the Consent Calendar. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 PUBLIC HEARING ON CREEK CLEARANCE COSTS; (PUBLIC SERVICES) City Engineer Frank Cunningham stated in October 1988, the City of Morro Bay and California Department of Fish & Game (F&G) entered into a Memorandum of Understanding (MOU) to allow City crews to routinely perform creek maintenance under certain conditions and make payment of the associated fees set by F&G. Since then, the City has been maintaining proper creek flows by removing vegetation and debris that accumulates in the creeks. City staff has not routinely acquired permission to enter these creeks, which are mostly on private property. Many. citizens have grown accustom to the City providing this service and have complained when the service is delayed or reduced. The City typically utilizes inexpensive, trained crews from California Department of is recently' and then submits quarterly reports identifying the location and description of the recently completed work, and pays the required fees to F&G as specified in the MOU. On July 9, 2001, the City received a letter from F&G stating the MOU had expired. Staff MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 26, 2005 has been pursuing the new required "Streambed Alteration Permit" -from F&G. This permit process requires the preparation of a Biological Resource Survey Report,. Initial Study/Environmental Documents, and Creek Maintenance and Management Plan prior to submitting the permit application to F&G. The F&G permit application was submitted on May 5, 2005, and the City has yet to receive approval of this permit that would allow routine creek maintenance. Mr. Cunningham recommended the City Council review, discuss and direct staff accordingly. Mayor Peters opened the hearing for public comment. Ken Winters stated his Mobilehome was damaged in the 1995 flood and he is quite concerned with further damage. He said Mobilehome parks provide the only affordable housing in the City, and the majority of tenants are on fixed incomes and cannot afford to pay fees for cleaning the creeks. Mr. Winters urged the City Council to consider all aspects of this project. Mayor Peters closed the public comment hearing Councilmember Winholtz stated the City should pursue a grant for this project. She said ® clearing the creeks should be something the City does without charging the neighboring residents. Councilmember Baxley stated the City should maintain the creeks, and find some way to have the City reimbursed for this service. Councilmember DeMeritt stated the City should consider grant funding or other alternatives rather than charging homeowners. Councilmember Peirce stated this is a process that should not involve the homeowners, and the City should find some way to assist in the funding. Mayor Peters stated this is something the City should do for the community MOTION: Councilmember DeMeritt moved the City Council direct staff' to return with stream maintenance cost estimates; information on cost impacts to property owners and other residents; feasibility recommendations on alternative approaches; and, recommendation on creative ways to fund the work program through grants, countywide funding for creek maintenance or other sources. The motion was seconded by Councilmember Winholtz. Councilmember Baxley stated he would like the motion to include the informal process. ® Mayor Peters stated she would like the motion to include the investigation of cost recovery. MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — SEPTEMBER 26, 2005 VOTE: The motion carried with Councilmember Baxley and Mayor Peters voting no. (3-2) B-2 DISCUSS, FURTHER DEFINE AND CLARIFY INSURANCE NEEDS AND COSTS TO BE RECOVERED FOR SPECIAL EVENTS; (ADMINISTRATION) City Manager Robert Hendrix stated prior to the adoption of the fiscal year 2005/2006 budget, the City Council indicated that cost recovery was of the utmost priority. As a result, the City began looking at the direct cost of events and included those costs with the conditions of approval. The first event considered in this manner was the July 4t° event. Following receipt of the conditions of approval for the July 4's event, the coordinator met with the Department Head Team and reviewed costs and determined where volunteers and volunteer services could be substituted to reduce expenditures. A number of special events are held in the City each year, and are coordinated by a variety of types of groups. In 2002, the Recreation and Parks Commission spent several meetings reviewing permit fees and then forwarded updated fee recommendations to the City Council, who adopted the updated fees in August 2002. When an entity, individual or group desires to conduct a special event on public property, they are generally required to complete a use permit. Mr. Hendrix recommended the City Council review the staff ® report and direct staff accordingly. Mayor Peters opened the hearing for public comment. Kim Kimball, Chamber of Commerce CEO, stated Rotary International meets the insurance requirements for special events. Gretchen Hambrade, Girl Scouts of America, stated with the assistance of Harbor Festival, their non-profit organization is running the carnival, and they will benefit from the profits if the fees are lowered. David Owens, President of Harbor Festival, Inc., stated private security cost is as much as the Police Explorers and their supervisor. He requested the Council consider co- sponsoring this event. Mayor Peters closed the public comment hearing. Council considered the reduction in fees and not charging for items the City already owns. MOTION: Councilmember DeMeritt moved the City Council co-sponsor the Harbor Festival and forgive no more than $4,000 in City support costs this year, and transition to full City cost recovery in future years. The motion was seconded by Councilmember Winholtz. 7 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — SEPTEMBER 26, 2005 Councilmember Baxley stated the City is not fiscally capable to support this motion. Councilmember Peirce stated this will set precedent, and if the City is going to co- sponsor this event then it should also co-sponsor other events in the City. Councilmember DeMeritt stated the $4,000 will not only assist the Harbor Festival, but also the other participating non-profit groups. Councilmember DeMeritt called the question. VOTE: The motion carried with Councilmember Baxley and Councilmember Peirce voting no. (3-2) B-3 PRESENTATION ON BIO-DIESEL FUEL ALTERNATIVE; (HARBOR) Council received a presentation on a bio-diesel fuel alternative by Luke Politte of AgriFuels. Mayor Peters opened the hearing for public comment. ® Ed Ewing stated commercial fishermen would consider using the 20% fuel alternative, which would not erode the hoses and clog the filters of their tanks. Mayor Peters closed the public comment hearing. This was an informational item, and no action was taken. Mayor Peters called for a break at 9:55 p.m.; the meeting resumed at 10:05 p.m. C. UNFINISHED BUSINESS C-I REPORT AND DISCUSSION ON RECREATION AND PARKS COMMISSION LETTER REGARDING THE BUDGET; (ADMINISTRATION) City Manager Robert Hendrix stated the City Council requested that he provide a response and comment regarding the letter approved by the Recreation & Parks Commission regarding the adopted fiscal 2005-2006 Budget. The Commission requested a change in the placement of expense for a portion of management costs in the budget. The issue is related to the adding of Human Resources/Risk Management duties to the Recreation & Parks Director responsibilities. The Recreation & Parks Commission requested that some $59,000 be added to the appropriations of the Recreation & Parks Administration budget or other Recreation & Parks budget for the purpose of funding ® additional programming. The source for this additional funding is intended to come from reduced expense for salaries and benefits for the Recreation & Parks Director. The Recreation & Parks Commission further suggests shifting those reduced costs to the City D MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — SEPTEMBER 26, 2005 Manager budget and paying them within that budget. Mr. Hendrix recommended the City Council acknowledge the perspective of the Recreation & Parks Commission on the budget; agree to make the budget changes in the next fiscal year; continue to implement the organizational change consolidating the duties and responsibilities of Human Resources/Risk Management and Recreation & Parks Director as Assistant City Manager. MOTION: Mayor Peters moved the City Council acknowledge the perspective of the Recreation & Parks Commission on the budget; agree to make the budget changes in the next fiscal year; continue to implement the organizational change consolidating the duties and responsibilities of Human Resources/Risk Management and Recreation & Parks Director as Assistant City Manager. The motion was seconded by Councilmember Baxley and carried unanimously. (5-0) C-2 REVIEW OF CITY ATTORNEY MEMO TO PLANNING COMMISSION ON DETERMINATION OF COMMON OPEN SPACE REQUIREMENTS; (CITY ATTORNEY) ® Councilmember Winholtz requested this item under Future Agenda Items at the July 11, 2005 City Council meeting. The City Attorney reviewed the memorandum from staff to the Planning Commission dated May 16, 2005 regarding the Commission's interpretation and guidelines on common open space in community housing projects, and Exhibit A attached thereto. The Planning Commission is authorized to read, interpret, and apply the City's planning and zoning codes, regulations, plan policies, specifications, and other technical materials. However, the concern lies in the adoption of Exhibit A, in which the Planning Commission overstepped its duties and responsibilities by not just interpreting the City's zoning code, but also added new and different requirements that do not presently exist in the zoning code. MOTION: Councilmember DeMeritt moved the City Council adopt Conditions 4 & 5 on Exhibit "A" of the Open Space Requirements. The motion was seconded by Councilmember Winholtz. Councilmember Peirce stated Condition 4 is not needed and could be eliminated from these requirements. Councilmember Baxley agreed that Condition #4 is not necessary, and what needs to be done is to not add to the Planning Commission's workload. Councilmember Winholtz stated there are certain rules in the City's zoning code that ® should be abided by and this reinforces the open space requirements. E MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — SEPTEMBER 26, 2005 Mayor Peters stated there have been community housing projects that have already been approved with small spaces, and she does not want to separate this discussion from the full context of the City's subdivision requirements. Councilmember DeMeritt called the question. VOTE: The motion failed with Councilmember Baxley, Councilmember Peirce and Mayor Peters voting no. (2-3) C-3 REPORT ON LEGAL - REQUIREMENTS FOR NOTICING; (CITY ATTORNEY) City Attorney Robert Schultz stated at the City Council's August 8, 2005 meeting, Councilmember Winholtz brought forward a discussion item regarding the City's policy on noticing requirements for various City meetings. Mr. Schultz reviewed the City's noticing requirements, and stated the current procedures used for noticing meets the requirements. He recommended the City Council discuss the City's ordinances and policies relating to noticing requirements for development projects, and direct staff accordingly. ® MOTION: Councilmember Peirce moved the City Council direct staff to bring back suggestions for the mailing of legal noticing cards. The motion was seconded by Councilmember Baxley and carried unanimously. (5-0) C-4 REPORT AND DISCUSSION ON AGENDA PLANNING; (ADMINISTRATION) City Manager Robert Hendrix stated on June 5-7, 2005, Councilmember DeMeritt attended a CJPIA City Council Academy. At that meeting, she received an "Agenda Planning Guide" used by the City of Laguna Niguel in which Council Members from that city cited it as saving their city time and money. Mr. Hendrix prepared a similar guide for Morro Bay, and recommended the City Council review and adopts this planning guide. MOTION: Councilmember Winholtz moved the City Council adopt the Agenda Planning Guide. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) D. NEW BUSINESS D-1 REPORT ON BACK BAY ISSUES; (HARBOR) ® This item was continued to the October 10, 2005 City Council meeting. 10 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — SEPTEMBER 26, 2005 D-2 DISCUSSION ON ANNEXATION PROCESS; (PUBLIC SERVICES) This item was continued to the October 10. 2005 City Council meeting. ADJOURNMENT The meeting adjourned at 10:55 p.m. Recorded by: Bridgett Bauer City Clerk r 11 ® City ®f Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of l fe 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 12, 2005 CLOSED SESSION — SEPTEMBER 12, 2005 CITY HALL CONFERENCE ROOM — 4:30 P.M. 595 HARBOR ST., MORRO BAY, CA CS-1 GOVERNMENT CODE SECTION 54956.9. 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. e Parties: City of Mono Bay and Martony/Pekarek Issue: Breach of Lease Agreement for Lease Site 35W-36W. 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: 714 Embarcadero and 781 Market Avenue IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. 11 ® PUBLIC SESSION — SEPTEMBER 12, 2005 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE ORALLEGIANCE 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-1 APPROVAL OF MINUTES FOR THE AUGUST 22, 2005 REGULAR CITY COUNCIL MEETING; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 INVESTMENT REPORTS FOR JUNE AND JULY 2005; (FINANCE) RECOMMENDATION: Receive for information. A-3 RESOLUTION NO.32-05 ESTABLISHING ANNUAL PROPOSITION 4 APPROPRIATION LIMIT FOR FISCAL YEAR 2005-2006; (FINANCE) RECOMMENDATION: Adopt Resolution No. 32-05. A-4 RESOLUTION NO. 34-05 APPROVING A NEW TWENTY-YEAR LEASE AGREEMENT FOR LEASE SITE 110W-112W (LOCATED AT 1185 EMBARCADERO) BETWEEN THE CITY OF MORRO BAY AND GAFCO, INC.; (HARBOR) ® RECOMMENDATION: Adopt Resolution No. 34-05. A-5 RESOLUTION NO. 35-05 APPROVING A SUBLEASE AGREEMENT FOR A PORTION OF LEASE SITE 124-127/124W-127W (LOCATED AT 1215 EMBARCADERO) BETWEEN VIRG'S FISH'N, INC. AND LEONARD GENTIEU; (HARBOR) RECOMMENDATION: Adopt Resolution No. 35-05. A-6 PROCLAMATION DECLARING SEPTEMBER 26-OCTOBER I, 2005 AS "SEA OTTER AWARENESS WEEK"; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. A-7 PROCLAMATION DECLARING SEPTEMBER 16, 2005 AS "STEPFAMILY DAY"'; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. 11 3 ® B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 RESOLUTION NO. 33-05 ACCEPTING SUPPLEMENTAL LAW ENFORCEMENT SERVICES FUND STATE COPS GRANT; (POLICE) RECOMMENDATION: Adopt Resolution No. 33-05. B-2 CONTINUED PUBLIC HEARING ON THE APPEAL OF THE PLANNING COMMISSION DENIAL OF A COMMUNITY HOUSING PROJECT PROPOSED AT 516 SHASTA AVENUE; (PUBLIC SERVICES) RECOMMENDATION: Uphold, the Planning Commission's determination and deny the appeal; or, approve the appeal, reversing the Planning Commission findings for denial and conditionally approve the project with changes. B-3 DISCUSSION ON PARKING IN -LIEU FEES; (FINANCE) RECOMMENDATION: Discuss and direct staff accordingly. C. UNFINISHED BUSINESS CA REPORT ON LEGAL REQUIREMENTS FOR NOTICING; (CITY ATTORNEY) RECOMMENDATION: Discuss and direct staff accordingly. D. NEW BUSINESS D-I STAFF RECOMMENDATIONS REGARDING USE OF NEW REVENUES; (FINANCE) RECOMMENDATION: Discuss and direct staff accordingly. D-2 REPORT AND RECOMMENDATION TO RE -FILL POLICE OFFICER VACANCIES; (POLICE) RECOMMENDATION: Authorize refilling Police Officer vacancies as they occur through the remainder of the fiscal year. D-3 REVIEW OF CITY ATTORNEY MEMORANDUM TO THE PLANNING COMMISSION ON DETERMINATION OF COMMON OPEN SPACE REQUIREMENTS; (CITY ATTORNEY) RECOMMENDATION: Discuss and direct staff accordingly. 0 4 ® D4 REPORT AND DISCUSSION ON RECREATION & PARKS COMMISSION LETTER REGARDING THE BUDGET; (ADMIMSTRATION) C RECOMMENDATION: Discuss and direct staff accordingly. D-5 REPORT AND DISCUSSION ON AGENDA PLANNING GUIDE; (CITY COUNCIL) RECOMMENDATION: Adopt an Agenda -Planning Guide. ADDED AGENDA ITEM: (The City Council may only discuss this item if it determines by 4/5 vote that there is a need for immediate action which cannot reasonably wait for the next regularly scheduled meeting.) ADDED AGENDA ITEM # 1: DISCUSSION OF LOCAL DISASTER RELIEF AND RECOVERY EFFORTS RELATED TO HURRICAN KATRINA; (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 ® NOTICE OF SPECIAL MEETING NOTICE IS HEREBY GIVEN that the Morro Bay City Council will be holding a Special Meeting on Thursday, September 8, 2005 at 5:00 a.m. to be held in the Veterans' Memorial Building, 209 Surf Street, Morro Bay, California. The City Council will be previewing the agenda for the Morro Bay/Cayucos Sanitary District Joint Powers Authority meeting as follows: A. CONSENT CALENDAR 1. Minutes of August 11, 2005 Meeting— Recommend approve. 2. Minutes of August 25, '2005 WWTP Technical Advisory Committee — Recommend Approve B. 1. Consideration to Approve FY 05-06 Budget 2. Status Report on the Full Secondary WWTP Upgrade 91/2 Year Time Schedule C. NEW BUSINESS 1. Report from the WWTP (JPA) Subcommittee 2. Schedule Neat Joint Meeting and Agenda Items E The City Council will adjourn to the Morro Bay/Cayucos Sanitary District Joint Powers Authority meeting that will begin at 7:00 p.m., and will be held in the Veterans' Memorial Building, 209 Surf Street, Morro Bay, California. 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. DATED: September 1, 2005 Bridgett B er, City Clerk C� MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION — SEPTEMBER 12, 2005 CITY HALL CONFERENCE ROOM — 4:30 P.M. Mayor Peters called the meeting to order at 4:30 p.m. PRESENT: STAFF: CLOSED SESSION Janice Peters Thad Baxley Melody DeMeritt William Peirce Betty Winholtz Robert Hendrix Robert Schultz Mayor Councilmember Councitmember Councilmember Councilmember City Manager City Attorney MOTION: Councilmember Peirce moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Baxley and unanimously carried. (5-0) Mayor Peters read the Closed Session Statement. ® CS-1 GOVERNMENT CODE SECTION 54956.9; 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. • Parties: City of Morro Bay and Martony/Pekarek Issue: Breach of Lease Agreement for Lease Site 35W-36W. 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: 714 Embarcadero and 781 Market Avenue The meeting adjourned to Closed Session at 4:30 p.m. and returned to regular session at 5:40 p.m. MOTION: Councilmember Winholtz moved the meeting be adjourned. The motion was seconded by Councilmember Baxley and unanimously carried. (5-0) The meeting adjourned at 5:40 p.m. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 12, 2005 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Peters called the meeting to order at 6:00 p.m PRESENT: Janice Peters Mayor Thad Baxley Councilmember Melody DeMeritt Councilmember William Peirce Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix Andrea Lueker Robert Schultz Bridgett Bauer Rick Algert Bruce Ambo John DeRohan Mike Pond Mike Prater Jim Koser City Manager Assistant City Manager City Attorney City Clerk Harbor Director Public Services Director Police Chief Fire Chief Senior Planner Finance 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. Mayor Peters requested to add an item to the agenda by 4/5 vote to discuss local disaster relief and recovery efforts related to Hurricane Katrina. MOTION: Councilmember Winholtz moved the City Council add the discussion of local disaster relief and recovery efforts related to Hurricane Katrina to the public hearing portion of this agenda The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) PUBLIC COMMENT Barry Dorfman addressed Item D4 (Report and Discussion on Recreation & Parks Commission Letter Regarding the Budget) stating the Recreation & Parks Commission letter addresses the importance to accurately reflect where the funding is coming from for the Recreation & Parks Director's. new position as Assistant City Manager so the public will better understand. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 12, 2005 Lynda Merrill shared pictures of the men and women who volunteer their time by providing meals through Meals on Wheels, and food from local markets for people in need ages 55 and older. David Owens, President of the Harbor Festival, addressed the benefits in revenue the Harbor Festival brings to the City, and the proposed costs for City services rendered at this year's Harbor Festival. Roger Ewing expressed his admiration for the rock sculpture on Morro Bay Boulevard. He also requested the City consider extending the city limits to include all of the back bay. Frank DeVine agreed the City should consider extending the city limits to include the estuary shore to shore as far south as possible. He said the Central Coast Chapter of the California Woodcarver's Guild would be holding an event on September 24 h and 25`s at the Cayucos Veterans' Hall. ® Suzie Schultz, Executive Director of the Harbor Festival, stated CJ Chenier and the Red Hot Louisiana Band will be performing at the Festival on Saturday, and this band should be recognized when considering Hurricane Katrina. 11 Stan House stated the City should assist, in waiving fees for the Harbor Festival and other events that bring people to the City. Mayor Peters closed the hearing for public comment. DECLARATION OF FUTURE AGENDA ITEMS Mayor Peters requested a discussion on insurance needs and costs to be recovered for special events; Councilmember DeMeritt and Councilmember Peirce concurred. Councilmember Baxley requested a discussion on an annexation process; Councilmember DeMeritt and Councilmember Winholtz concurred. Councilmember Winholtz requested the review of San Luis Obispo Council of Governments projects; Councilmember Baxley and Mayor Peters concurred. 3 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 12, 2005 Councilmember DeMeritt requested the consideration of placing an item on the agenda taking up the issue of forming an Ad -Hoc Committee for the purpose of organizing an on -going Environmental Committee, and noted a staff report is not necessary; 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 AUGUST 22, 2005 REGULAR CITY COUNCIL MEETING; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 INVESTMENT REPORTS FOR JUNE AND JULY 2005; (FINANCE) RECOMMENDATION: Receive for information. ® A-3 RESOLUTION NO.32-05 ESTABLISHING ANNUAL PROPOSITION 4 APPROPRIATION LIMIT FOR FISCAL YEAR 2005-2006; (FINANCE) RECOMMENDATION: Adopt Resolution No. 32-05. A-4 RESOLUTION NO. 34-05 APPROVING A NEW TWENTY-YEAR LEASE AGREEMENT FOR LEASE SITE 110W-112W (LOCATED AT 1185 EMBARCADERO) BETWEEN THE CITY OF MORRO BAY AND GAFCO, INC.; (HARBOR) RECOMMENDATION: Adopt Resolution No. 34-05. A-5 RESOLUTION NO. 35-05 APPROVING A SUBLEASE AGREEMENT FOR A PORTION OF LEASE SITE 124-127/124W-127W (LOCATED AT 1215 EMBARCADERO) BETWEEN VIRG'S FISH'N, INC. AND LEONARD GENTIEU; (HARBOR) RECOMMENDATION: Adopt Resolution No. 35-05. 11 2 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 12, 2005 A-6 PROCLAMATION DECLARING SEPTEMBER 26—OCTOBER 1, 2005 AS "SEA OTTER AWARENESS WEEK"; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. A-7 PROCLAMATION DECLARING SEPTEMBER 16, 2005 AS "STEPFAMILY DAY" "; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. Councilmember Winholtz pulled Items A-1, A-3, A-4 and A-5 from the Consent Calendar; Mayor Peters pulled Items A-6 and A-7. MOTION: Councilmember Winholtz moved the City Council approve Item A-2 of the Consent Calendar. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) A-1 APPROVAL OF MINUTES FOR THE AUGUST 22, 2005 REGULAR CITY COUNCIL MEETING; (ADMINISTRATION) Councilmember Winholtz requested a correction be made on page 7 of the August 22, 2005 City Council minutes; Council concurred. MOTION: Councilmember Winholtz moved the City Council approve Item A-1 of the Consent Calendar as amended. The motion was seconded by Councilmember Baxley and carried unanimously. (5-0) A-3 RESOLUTION NO. 32-05 ESTABLISHING ANNUAL PROPOSITION 4 APPROPRIATION LIMIT FOR FISCAL YEAR 2005-2006; (FINANCE) Councilmember Winholtz expressed concern with the discrepancy of this report stating it does not reflect the accuracy of the City. Finance Director Jim Koser clarified how the appropriation limit was determined. MOTION: Councilmember Peirce moved the City Council approve Item A-3 of the Consent Calendar. The motion was seconded by Councilmember Baxley and carried unanimously. (5-0) 5 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 12, 2005 A4 RESOLUTION NO. 34-05 APPROVING A NEW TWENTY-YEAR LEASE AGREEMENT FOR LEASE SITE IIOW-112W (LOCATED AT 1185 EMBARCADERO) BETWEEN THE CITY OF MORRO BAY AND GAFCO, INC.; (HARBOR) Councilmember Winholtz asked if the parking should be expanded with the proposed expansion of the restaurant. Harbor Director Rick Algert responded the project is in the conceptual phase, and parking will be discussed in the future. Councilmember Winholtz stated the annual minimum rent should be increased with a new lease. MOTION: Councilmember Baxley moved the City Council approve Item A-4 of the Consent Calendar. The motion was seconded by Councilmember Peirce and carried with Councilmember Winholtz voting no. (4-1) A-5 RESOLUTION NO. 35-05 APPROVING A SUBLEASE AGREEMENT FOR A PORTION OF LEASE SITE 124-127/124W-127W (LOCATED AT 1215 EMBARCADERO) BETWEEN VIRG'S FISH'N, INC. AND LEONARD GENTIEU; (HARBOR) ® Councilmember Winholtz stated the Harbor Director previously answered her questions on this item. MOTION: Councilmember Winholtz moved the City Council approve Item A-5 of the Consent Calendar. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) A-6 PROCLAMATION DECLARING SEPTEMBER 26—OCTOBER 1, 2005 AS "SEA OTTER AWARENESS WEEK"; (ADMINISTRATION) Mayor Peters addressed this item for public information. MOTION: Mayor Peters moved the City Council approve Item A-6 of the Consent Calendar. The motion was seconded by Councilmember Baxley and carried unanimously. (5-0) A-7 PROCLAMATION DECLARING SEPTEMBER 16, 2005 AS "STEPFAMILY DAY"'; (ADMINISTRATION) Mayor Peters addressed this item for public information. 0 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 12, 2005 MOTION: Mayor Peters moved the City Council approve Item A-7 of the Consent Calendar. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) Mayor Peters called for a break at 6:57 p.m.; the meeting resumed at 7:10 p.m. B. PUBLIC HEARINGS, REPORTS & APPEARANCES B-1 RESOLUTION NO. 33-05 ACCEPTING SUPPLEMENTAL LAW ENFORCEMENT SERVICES FUND STATE COPS GRANT; (POLICE) Police Chief John DeRohan stated since 1996-1997, the Citizen's 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." 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. Legislation requires an annual report be prepared in September to the City Council on ® how the 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 hold a public hearing and adopts Resolution No. 33-05 accepting $100,000 from the State of California Citizens Option for Public Safety Program. Mayor Peters opened the hearing for public comment; there being no comments, Mayor Peters closed the public comment hearing. Councilmember DeMeritt referred to the allocation of the funds, and suggested adjusting the allocations and place more money in personnel over -time so to assist with events such as the Harbor Festival. Councilmember Peirce stated the gas line runs the emergency generator when the power goes out, which is a necessity. He also said these funds are not a part of the General Fund. Councilmember Winholtz stated a School Resource Officer is needed at the high school, and thought some of these funds could go towards that. She also agreed that some of the funds could be used to assist the Harbor Festival. Mayor Peters stated the fence replacement seems it could be superfluous, but it houses ® safety equipment. She said the Harbor Festival is a separate issue. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 12, 2005 MOTION: Councilmember Baxley moved the City Council adopt Resolution No. 33-05 accepting $100,000 from the State of California Citizens Option for Public Safety Program. The motion was seconded by Councilmember Peirce and carried with Councilmember DeMeritt voting no. (4-1) B-2 CONTINUED PUBLIC HEARING ON THE APPEAL OF THE PLANNING COMMISSION DENIAL OF A COMMUNITY HOUSING PROJECT PROPOSED AT 516 SHASTA AVENUE; (PUBLIC SERVICES) Senior Planner Mike Prater stated at the August 8, 2005 meeting, the City Council continued this public hearing to the September 12, 2005 Council meeting. The applicant/appellant was invited to return with a revised project addressing the items discussed by the City Council. The motion directed staff to explore options with the applicant that would preserve the neighborhood character, potentially reducing the size of Unit D, and find other ways to approve the project without the need for a variance. The applicant/appellant is requesting approval of a Tentative Tract Map, Conditional Use Permit, Coastal Development Permit and setback Variances to subdivide two existing ® parcels creating four parcels and thereby a four -unit community housing project. Currently three existing residential emits exist; two detached houses are located on one parcel and one house and detached garage on the other adjoining parcel. The applicant proposes to demolish the detached garage and construct a new fourth residential unit and create a total of four lots through the community housing project regulations. Mr. Prater recommended the City Council uphold the Planning Commission's determination and deny the appeal; or, approve the appeal, reversing the Planning Commission findings for denial and conditionally approve the project with changes. George Contento, applicant/appellant, stated he does not understand the open space issue since there are several other community housing projects that have similar open space areas. He said there are benefits for affordable housing with a larger project. Mr. Contento stated the planning of this project tried to incorporate the character of the older buildings, and he is willing to place a height limit on the two front houses for a period of time. He said a benefit of this project is the two back units will be listed at below the medium price for Morro Bay, which makes the units more affordable. Mayor Peters opened the hearing for public comment. Roger Ewing and Frank Devine expressed support for this project. Mayor Peters closed the public comment hearing. El ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 12, 2005 Councilmember Winholtz stated she supports this project because of the retention of the character of the neighborhood. She said she also supports deed restricting the height of the two front units. Councilmember Baxley stated this project has too many variance requests, and he cannot approve it. Councilmember DeMeritt stated she could forgive the variance requests because of the preservation of three units. She said the two front houses should be deed restricted, and she favors this project because of the built in affordability of the two front houses. Councilmember Peirce stated the nature of the design of this project offers affordability. He said the variances will not harm the neighborhood, and he supports the project. Mayor Peters stated the house requiring the variances is proposed at 1,640 square feet, and should have useable space. She said because of the request for community housing and a lot split, she believes there should be conformance with the lot size by reducing the square footage of the new unit. Mayor Peters stated she couldn't support this project as ® proposed. MOTION: Councilmember DeMerift moved the City Council approve the appeal and reverse the Planning Commission's findings for denial of this project, and conditionally approve the project with the change that the two front units will be deed restricted in height limit to be single level homes. The motion was seconded by Councilmember Winholtz. Councilmember Peirce stated he is going to oppose this motion unless the applicant goes with Option 2 in the staff report. VOTE: The motion failed with Councilmember Baxley, Councilmember Peirce and Mayor Peters voting no. (2-3) MOTION: Mayor Peters moved the City Council approve Option 2 of the staff report as follows: 1) Approve the project with changes; 2) Unit D shall be reduced in size to meet the setbacks; 3) Council accepts the open space as presented not including the driveways or parking areas, and allow the non- conforming setbacks for the pre-existing structures to remain because the proposal does not extend, worsen or otherwise substantially exasperate the level of nonconformance; 4) Council will allow variances for the older structures from the new property lines due to the unique combination of difficult circumstances that complicate the design by virtue of the existing ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 12, 2005 improvements, such that, it is not feasibly possible to satisfy the project objectives and at the same time bring the site into conformance with zoning regulations. Because the existing residences would essentially have to be totally rebuilt to comply with the setback requirement, destroying the neighborhood character; and 5) Restrictions to the existing units will be placed on the project that limits the footprints to what is proposed and maximum -building heights for the front units limited to single -story to preserve the neighborhood character. The motion was seconded by Councilmember Peirce and carried with Councilmember Winholtz voting no. (4-1) Mayor Peters called for a break at 9:04 p.m.; the meeting resumed at 9:15 p.m. B-3 DISCUSSION ON PARKING IN -LIEU FEES; (FINANCE) City Attorney Robert Schultz stated the City's Parking In -Lieu Fund was established in 1988 to.provide increased business opportunities along the community's waterfront. Rather than providing on -site parking, owners were allowed to pay the City a fee in the amount of $4,000 per required on -site parking space, thereby increasing the area available for business development. Monies accumulated in the fund are to be used solely for the purpose of improving public parking availability, as the Municipal Code specifically states that Parking In -Lieu fees shall be used for planning, design, acquisition or lease of land and development/redevelopment of public parking facilities. Mr. Schultz recommended the City Council receive this report and provide direction to staff. Mayor Peters opened the hearing for public comment. Rodger Anderson suggested Council raise the parking in -lieu fee across the board. He said this fee should not be a revenue source. Mr. Anderson also suggested placing parking meters in the key areas of the City. John Barta discussed the different types of businesses and how the parking in -lieu fee is paid by some but not other businesses. He also stated that new businesses are not coming to Morro Bay because of the exorbitant fees required to start a business. Frank DeVine stated the intent of the parking in -lieu fee is to provide off -site parking. He said the discrepancy of valuation and actual cost demonstrates why the City is in budget crisis and has a lack of parking. Mr. DeVine stated the taxpayers deserve better than what has been received through this dysfunctional program. Priscilla Ko requested Council take action by increasing the parking in -lieu fees. She said ® abolishing the current fees would not serve the best interest of the City. 10 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 12, 2005 Bob Tefft stated the City is obligating itself to provide facilities without providing the funds to build them.. He said the fees should be increased across the board. Mr. Tefft stated the parking in -lieu program is essential to redevelopment of the downtown and the continued development of the Embarcadero. George Contento stated the parking in -lieu fund is a voluntary welfare program. He said in -lieu fees should be set at market value, otherwise, anything short of market value results in parking shortage and an expensive welfare program. Mr. Contento stated Morro Bay is the only town on the North Coast with an in -lieu program, and he believes it should be terminated. Roger Ewing stated the in -lieu parking fee should be higher than $4,000 per space, and should be set across the board at $25,000 per space with an increase each year. Mayor Peters closed the public comment hearing. MOTION: Mayor Peters moved the City Council direct staff to investigate the cost ® for a consultant to draft a Parking Management Plan, and return to Council for review. The motion was seconded by Councilmember Baxley and carried unanimously. (5-0) C Mayor Peters stated it is time to consider placing parking meters in town to form a source of revenue. She said the funds in the parking in -lieu fund would not be enough to build a parking structure. Councilmember Baxley stated Council should increase the parking in -lieu fee in order to be able to afford to build a parking structure. Councilmember DeMeritt stated the City should be charging at least $20,000 per parking space in order to build a parking structure. MOTION: Councilmember Baxley moved the City Council set In -Lieu Parking Fees at $20,000 per parking space. The motion was seconded by Councilmember DeMeritt and carried with Mayor Peters and Councilmember Peirce voting no. (3-2) 11 MINUTES - MORRO BAY CITY COUNCIL 46 REGULAR MEETING — SEPTEMBER 12, 2005 B4 DISCUSSION OF LOCAL DISASTER RELIEF AND RECOVERY EFFORTS RELATED TO HURRICANE KATRINA; (CITY COUNCIL) Mayor Peters stated there would be an event at City Park on Friday, September 16'h in order to collect funding or items needed to support the victims of Hurricane Katrina. Mayor Peters opened the hearing for public comment. Penny Harrington shared a list of needed items to assist the New Orleans Police Department, and stated more funding is needed to assist in costs including shipping costs. Lynda Merrill shared an audiotape from an employee of a police department addressing what assistance is needed. Ann Reeves stated she is packing toiletries and labeling them for men/women. Ray McKelligott stated the police in New Orleans desperately need our help. ® Suzie Schultz stated the Harbor Festival is set up as a non-profit and can help in any way possible. E Mayor Peters closed the public comment hearing. Mayor Peters stated there is a young mother who will be volunteering in the Gulf, and requested a fee waiver for her children attending Kids Club while she's gone. Councilmember Winholtz stated she would like to see our Police Department help support the New Orleans Police Department with a donation of some sort. She also suggested Council consider supporting this crisis with contingency funds. Council offered $125 each in contingency funds less Councilmember DeMeritt because she waived her contingency funds. MOTION: Councilmember Peirce moved the City Council direct staff to send $500 in City Council discretionary funds to the New Orleans Police Department; bring back a resolution for Hurricane Katrina Relief for Council approval; and allow volunteers to access City programs as available. The motion was seconded by Councilmember Winholtz and carved unanimously. (5-0) 12 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — SEPTEMBER 12, 2005 C. UNFINISHED BUSINESS C-1 REPORT ON LEGAL REQUIREMENTS FOR NOTICING; (CITY ATTORNEY) This item was continued to the September 26, 2005 City Council meeting. D. NEW BUSINESS D-1 STAFF RECOMMENDATIONS REGARDING USE OF NEW REVENUES; (FINANCE) Finance Director Jim Koser stated the budget estimates for revenues are based upon the best available historical data, along with any other current factors that may impact the projections. New revenue is the money the City receives that is either due to a favorable variance in the actual revenue receipts or was never envisioned and not included in the budget, at the time it was developed. The goal is to end the year with actual revenues equal to the total revenues budgeted. In the past decade, the City has had extended ® periods of enhanced revenues, due to healthy basic economic circumstances, with high levels of visitor activity. The outcome of this past budget was an 11% reduction in the budget from the prior year, yet a shortfall of $306,000 remained in the adopted budget. This projected shortfall will reduce General Fund Reserves below one million dollars by June 30, 2006. Mr. Koser stated it is strongly recommended that any new revenues be used to restore reserves in the General Fund, in order to cope with future challenges. It would be prudent to develop a plan or policy for new revenues that includes some significant effort to restore reserves. By addressing the issue before new revenues have been received, will allow the City Council to decide the issue with less pressure and with more planning than simply reacting to a favorable change in finances, without thorough analysis. Mr. Koser stated it would be helpful if a formal policy or philosophical consensus ofthe .City Council could be achieved. LE MOTION: Mayor Peters moved the City Council direct staff that all new revenue received this fiscal year be placed in the reserves until they are up to 25%. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) 13 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 12, 2005 D-2 REPORT AND RECOMMENDATION TO RE -FILL POLICE OFFICER VACANCIES; (POLICE) Police Chief John DeRohan stated the Police Department recently received the resignation of a permanent sworn position, which creates a vacancy in.the Department. Staff is requesting authority to fill this vacancy through an in-house appointment of a grant -funded police officer. It is the past practice of the City to move the grant -funded officers to permanent general fund positions as vacancies occur. This change would be accomplished immediately and avoid costs for recruiting, testing, hiring, initial training and equipment expenses. Currently all positions are frozen as a part of the action taken in adopting the budget, and Chief DeRohan requested authority to re -hire when future vacancies occur in sworn positions within this fiscal year. MOTION: Councilmember Winholtz moved the City Council direct staff to fill the vacancy with the grant officer position; and, all other vacancies go before Council. The motion was seconded by Councilmember DeMeritt. MOTION: Councilmember Baxley moved the City Council go beyond 11:00 p.m. ® The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) VOTE: The motion failed with Councilmember Baxley, Councilmember Peirce and Mayor Peters voting no. (2-3) MOTION: Councilmember Baxley moved the City Council authorize staff to refill the police officer vacancies as they occur through the remainder of the fiscal year; and, authorize staff to fill the police officer vacancy created by the resignation of Officer John Taylor to be filled in-house, appointing grant funded officer, Leslie Daily to the permanent position. The motion was seconded by Councilmember Peirce and carried with Councilmember DeMeritt and Councilmember Winholtz voting no. (3-2) D-3 REVIEW OF CITY ATTORNEY MEMORANDUM TO THE PLANNING COMMISSION ON DETERMINATION OF COMMON OPEN SPACE REQUIREMENTS; (CITY ATTORNEY) This item was continued to the September 26, 2005 City Council meeting. 11 14 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 12, 2005 D-4 REPORT AND DISCUSSION ON RECREATION & PARKS COMMISSION LETTER REGARDING THE BUDGET; (ADMINISTRATION) This item was continued to the September 26, 2005 City Council meeting. D-5 REPORT AND DISCUSSION ON AGENDA PLANNING GUIDE; (CITY COUNCIL) This item was continued to the September 26, 2005 City Council meeting. ADJOURNMENT The meeting adjourned at 11:04 p.m. Recorded -by: �- ® Bridgett Bauer City Clerk 1 15 ® 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 22, 2005 CLOSED SESSION — AUGUST 22, 2005 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA CS-1 GOVERNMENT CODE SECTION 54957.6: CONFERENCE WITH LABOR NEGOTIATOR. Conference with the City Manager, the City's ® Designated Representative, for the purpose of reviewing the City's position regarding salaries, salary schedules, or compensation paid in the form of fringe benefits, and giving instruction to the Designated Representative. CS-2 GOVERNMENT CODE SECTION 54956.9: 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. • Parties: City of Mono Bay and Martony/Pekarek Issue: Breach of Lease Agreement for Lease Site 35W-36W. CS-3 GOVERNMENT CODE SECTION 54956.9(a): CONFERENCE WITH LEGAL COUNSEL REGARDING PENDING LITIGATION. STATUS REPORT ON ALL PENDING L/TrGATION. This is a report on status and no action may be taken on any matter not specifically listed. Council may request a specific matter be agendized in the future for action. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ® ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. PUBLIC SESSION — AUGUST 22, 2005 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. AA APPROVAL OF MINUTES FOR THE JULY 25, 2005 AND AUGUST 8, 2005 ® REGULAR CITY COUNCIL MEETINGS; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. 2 A-2 ACCEPTANCE OF LETTER OF RESIGNATION FROM COMMUNITY ® PROMOTIONS COMMITTEE MEMBER MEREDITH BATES; (ADMINISTRATION) RECOMMENDATION: Receive and accept the letter of resignation, and authorize the City Clerk to proceed with advertising the vacancy. A-3 PROPOSED BUDGET ADJUSTMENT PROVIDING FOR HALF-TIME CRIME PREVENTION COORDINATOR POSITION IN THE POLICE DEPARTMENT; (ADMINISTRATION) RECOMMENDATION: Approve budget adjustment providing for half-time Crime Prevention Coordinator position in the Police Department. A1I DESIGNATION OF VOTING DELEGATE FOR 2005 LEAGUE OF CALIFORNIA CITIES ANNUAL CONFERENCE; (ADMINISTRATION) RECOMMENDATION: Designate voting delegate for the 2005 League of California Cities Annual Conference Business Meeting. B. PUBLIC HEARINGS, REPORTS & APPEARANCES —NONE. C. UNFINISHED BUSINESS ® C-I REPORT AND UPDATE OF PLANNING DIVISION WORK PROGRAM; (PUBLIC SERVICES) RECOMMENDATION: Provide direction for shifting the priorities of the Advanced Planning Work Program. C-2 REPORT ON COMPENSATION POLICY FOR CITY "AT WILL" EMPLOYEES; (ADMINISTRATION) RECOMMENDATION: Receive report for information. C-3 REPORT ON ALTERNATIVE ROLE FOR COMMUNITY PROMOTIONS COMMITTEE; (ADMINISTRATION) RECOMMENDATION: Receive report, discuss and direct staff accordingly. C4 REPORT ON SPENDING OPERATIONS OF THE CHAMBER OF COMMERCE VISITOR'S CENTER; (ADMINISTRATION) RECOMMENDATION: Receive report for information. 9 C-5 REPORT ON REDUCING THE SIZE OF VARIOUS ADVISORY BOARDS; ® (ADMINISTRATION) RECOMMENDATION: Receive report, discuss and direct staff accordingly. C-6 REPORT ON ISSUES RELATED TO CREATING AN AD HOC ADVISORY COMMITTEE ON ENVIRONMENTAL ISSUES; (ADMINISTRATION) RECOMMENDATION: Receive report, discuss and direct staff accordingly. C-7 REPORT AND CONTINUED DISCUSSION OF PROS AND CONS OF REDEVELOPMENT AGENCY FORMATION; (PUBLIC SERVICES) RECOMMENDATION: Provide direction to either continuing further research on development, or deferring further action by receiving and filing the report. D. NEW BUSINESS D-I REPORT AND DISCUSSION OF DEVELOPMENT IMPACT FEE PROGRAM; (ADMINISTRATION) RECOMMENDATION: Discuss the requirements and implications of implementing new development impact fees, and direct staff accordingly. ® D-2 REPORT ON LEGAL REQUIREMENTS FOR NOTICING; (CITY ATTORNEY) RECOMMENDATION: Receive report, 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 22, 2005 CITY HALL CONFERENCE ROOM - 5:00 P.M. El 11 Mayor Peters called the meeting to order at 5:00 p.m. PRESENT: Janice Peters Mayor STAFF: CLOSED SESSION Thad Baxley .Melody DeMeritt William Peirce Betty Winholtz Robert Hendrix Robert Schultz Councilmember Councilmember Councilmember Councilmember City Manager City Attorney MOTION: Councilmember Baxley moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Peirce and unanimously carried. (3-0) Councilmember DeMeritt and Councilmember Winholtz arrive. Mayor Peters read the Closed Session Statement. CS-1 GOVERNMENT CODE SECTION 54957.6; CONFERENCE WITH LABOR NEGOTIATOR. Conference with the City Manager, the City's Designated Representative, for the purpose of reviewing the City's position regarding salaries, salary schedules, or. compensation paid in the form of fringe benefits, and giving instruction to the Designated Representative. CS-2 GOVERNMENT CODE SECTION 54956.9; 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. Parties: City of Mono Bay and Martony/Pekarek Issue: Breach of Lease Agreement for Lease Site 35W-36W. CS-3 GOVERNMENT CODE SECTION 54956.9(a): CONFERENCE WITH LEGAL COUNSEL REGARDING PENDING LITIGATION. • STATUS REPORT ON ALL PENDrNG LITIGATION. This is a report on status and no action may be taken on any matter not specifically listed. Council may request a specific matter be agendized in the future for action. ® Mayor Peters departs the meeting. The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:50 p.m. MOTION: Councilmember Baxley moved • the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Peirce and unanimously carried. (4-0) The meeting adjourned at 5:50 p.m. 11 2 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 22, 2005 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Peters called the meeting to order at 6:00 p.m. PRESENT: Janice Peters Mayor Thad Baxley Councilmember Melody DeMeritt Councilmember William Peirce Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix Andrea Lueker Robert Schultz Bridgett Bauer Rick Algert Bruce Ambo John DeRohan Mike Pond Jim Koser City Manager Assistant City Manager City Attorney City Clerk Harbor Director Public Services Director Police Chief Fire Chief Finance 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 expressed support for Item C-6 (Report on Issues Related to Creating an Ad Hoc Advisory Committee on Environmental Issues): Hershel Parker, Noah Smukler, Joan Carter, Luke Politte, Lynda Merrill, Richard Sodowski, Marla Bruton, Mandy Davis and Matthew Fleming. Betty Forsythe defined what a "Helping Hand" is, and how this program can help the community. David Nelson stated it would be fiscally irresponsible to hire a consultant to perform a survey on potential City revenues. He said these funds should go towards the City's infrastructure or building a waterfront boardwalk. Phil Hill thanked Council for their efforts with the Fish & Game Commission. He also Is expressed the need for a boatyard in Morro Bay. 3 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 22, 2005 Richard Sodowski expressed concern with a hazardous waste spill in the Lompoc area that damaged our coast. Marla Bruton thanked the City for their efforts at the MB/CSD JPA meeting. She said she was at the Fish & Game Commission meeting, and they were in violation of the Brown Act. Mandy Davis thanked Council for their efforts at the Fish & Game Commission meeting. She did express concern with the boat ride provided to the Fish & Game Commissioners that included supporters of hunting in the bay. Nancy Castle thanked those who assisted and donated towards the dinner hosted for the Fish & Game Commission. Ken Vesterfelt requested discussion on facility fees that are charged to non-profit groups for events held in the City. Lynda Merrill addressed Item C-2 (Report on Compensation Policy For City "At Will' ® Employees) stating some changes are needed on the benefit packages for these employees. She also addressed Item C-5 (Report on Reducing the Size of Various Advisory Boards) and requested the Council maintain the present size of the boards. Ms. Merrill stated tourists should know that there is seasonal duck hunting. Mayor Peters closed the hearing for public comment DECLARATION OF FUTURE AGENDA ITEMS Councilmember DeMeritt requested a power point presentation on bio-diesel fuels. She also requested discussion on the letter received from the Recreation & Parks Commission regarding a budget item; Mayor Peters and Councilmember Winholtz concurred. Mayor Peters requested the discussion on structuring an annual town hall meeting; Councilmember Winholtz concurred. Mayor Peters called for a break at 7:00 p.m.; the meeting resumed at 7:10 p.m. U 4 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 22, 2005 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 JULY 25, 2005 AND AUGUST 8, 2005 REGULAR CITY COUNCIL MEETINGS; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 ACCEPTANCE OF LETTER OF RESIGNATION FROM COMMUNITY PROMOTIONS COMMITTEE MEMBER MEREDITH BATES; (ADMINISTRATION) RECOMMENDATION: Receive and accept the letter of resignation, and authorize the City Clerk to proceed with advertising the vacancy. A-3 PROPOSED BUDGET ADJUSTMENT PROVIDING FOR HALF-TIME is DEPARTMENT; PREVENTION COORDINATOR POSITION IN THE POLICE DEPARTMENT; (ADMINISTRATION) l RECOMMENDATION: Approve budget adjustment providing for half-time Crime Prevention Coordinator position in the Police Department. A4 DESIGNATION OF VOTING DELEGATE FOR 2005 LEAGUE OF CALIFORNIA CITIES ANNUAL CONFERENCE; (ADMINISTRATION) RECOMMENDATION: Designate voting delegate for the 2005 League of California Cities Annual Conference Business Meeting. Mayor Peters pulled Item A-2 from the Consent Calendar; and Councilmember Winholtz pulled Item A-3. MOTION: Councilmember Winholtz moved the City Council approve Items A-1 and A-4 of the Consent Calendar. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) W MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — AUGUST 22, 2005 A-2 ACCEPTANCE OF LETTER OF RESIGNATION FROM COMMUNITY PROMOTIONS COMMITTEE MEMBER MEREDITH BATES; (ADMINISTRATION) Mayor Peters recognized the efforts of Community Promotions Committee Member Meredith Bates, and also Public Works Advisory Board Member John Lemons. MOTION: Councilmember Peirce moved the City Council approve Item A-2 of the Consent Calendar. The motion was seconded by Councilmember Baxley and carried unanimously. (5-0) A-3 PROPOSED BUDGET ADJUSTMENT PROVIDING FOR HALF-TIME CRIME PREVENTION COORDINATOR POSITION IN THE POLICE DEPARTMENT; (ADMINISTRATION) Councilmember Winholtz stated she would be voting in opposition to this item unless appropriate funding has been designated for this position. ® MOTION: Councilmember Peirce moved the City Council approve Item A-3 of the Consent Calendar. The motion was seconded by Councilmember Baxley and carried with Councilmember Winholtz.voting no. (4-1) B. PUBLIC HEARINGS, REPORTS & APPEARANCES — NONE. C. UNFINISHED BUSINESS CA REPORT AND UPDATE OF PLANNING DIVISION WORK PROGRAM; (PUBLIC SERVICES) Public Services Director Bruce Ambo stated on July 11, 2005, the City Council established a temporary freeze on all new additions to the Planning Division work program until the division is fully staffed, and moved the update to the Subdivision Ordinance and Local CEQA guidelines sooner in the work program. This action was intended to hold the line from falling further behind on nearly every aspect of Planning Division operations until an additional planner could come on board and become familiar with the planning framework in the community, which is estimated to be near the beginning of next year. On July 25, 2005, the City Council added several Future Agenda Items for discussion: 1) Private Open Space Requirements; 2) Private Property Tree Regulations; And, 3) Vacation Rental Ordinance. On April 25, 2005, the Council added another item on "Cooperative Housing" that was inadvertently omitted from the work ® program, which has since been added to the end of the list. If the new Future Agenda T ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 22, 2005 Items are added to the end of the Advanced Planning Work Program, it is quite likely these items would not be taken up until 2007 and 2008. Council asked for the referral of Planning Commission's letter relating to private open space. Councilmember Winholtz stated she would bring forward the tree regulation after consulting with the City Attorney. Mayor Peters stated she would research the vacation rental ordinance. Council also requested a presentation on cooperative housing. No further action was taken on this item. C-2 REPORT ON COMPENSATION POLICY FOR CITY "AT WILL" EMPLOYEES; (ADMINISTRATION) City Manager Robert Hendrix stated during the July 25, 2005 Council meeting, the City Council requested information about policy governing the compensation of the City Executives who are "at -will" employees. They are hired based on individual employment contracts, and each is appointed by the City Manager per City ordinance. The contracts each had an initial four-year term, renewable for two-year terms. The other "at will" employees in the City structure are the City Manager and the CityAttorney, ® who each has an individual contract and are appointed by the City Council. The current policy governing executive compensation was adopted by the City Council on November 18, 2003. This action created a single range or "band" that formed the bounds for compensating all of the Department Heads. The band is adjusted based upon general cost of living adjustments adopted for the management group of the City through collective bargaining. While some executive contracts were executed prior to the Council's action, all are subject to the current compensation policy. Mr.Hendrix recommended the City Council receive this report for information. Council concurred that they should receive the department head contracts for review. MOTION: Councilmember Winholtz moved the City Council be noticed sixty (60) days in advance of a department head contract renewal, and Council will receive copies of contracts upon final negotiations. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) C-3 REPORT ON ALTERNATIVE ROLE FOR COMMUNITY PROMOTIONS COMM=E; (ADMINISTRATION) City Manager Robert Hendrix stated the City Council requested a discussion about assigning alternative responsibilities to the Community Promotions Committee. The Community Promotions Committee scheduled a meeting for August 1, 2005 to consider ® the ideas of the Council. Formal changes to the role or make-up of the Community 7 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 22, 2005 Promotions Committee would best be accomplished by the City Council approving changes to the Committee by-laws. Mr. Hendrix recommended the City Council review the information provided, consider comments and ideas of the Community Promotions Committee, and provide direction to staff regarding the future role of the Committee. Councilmember Peirce stated the promotional items could be expanded, and an over -haul of the monthly meeting agenda should take place. He suggested a report be prepared for Council on how to energize the Committee. Councilmember DeMeritt stated events should be advertised showing tourists what there is to do in Morro Bay. Councilmember Winholtz stated she would like to have a staff person responsible for promoting the City. Councilmember Baxley stated Council should discuss this with the Community Promotions Committee. ® Mayor Peters stated she would like to make recommendations on how the Committee should function. The City Council scheduled a joint meeting with the Community Promotions Committee at its next regular meeting scheduled for September 15, 2005. C4 REPORT ON SPENDING OPERATIONS OF THE CHAMBER OF COMMERCE VISITOR'S CENTER; (ADMINISTRATION) City Manager Robert Hendrix stated the City Council requested a report about the operation of the Visitor Center and its relationship with the City. Currently, the City has an agreement with the Chamber of Commerce to operate the Visitor Center. The agreement was approved as to form by the City Council on August 23, 2004. In it, the Chamber is broadly responsible for the operation of the Center. Payment is made on a monthly basis from the Contract Services budget. The total annual appropriation is $146,515. The Visitor Center occasionally submits expenses for reimbursement to the City for promotional activities, which are paid out of the Community Promotions Committee budget. Mr. Hendrix recommended the City Council receive this report for information. Councilmember DeMeritt stated she would like to see the expense reports of the Visitor Center. 8 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — AUGUST 22, 2005 MOTION: Mayor Peters moved the City Council requests a monthly report from the Visitors Center including the following expenses: rent, utilities, phone, salaries, postage, supplies, copies, community promotion expenses, and miscellaneous expenses. The motion was seconded by Councihnember DeMeritt and carried unanimously. (5-0) C-5 REPORT ON REDUCING THE SIZE OF VARIOUS ADVISORY BOARDS; (ADMINISTRATION) City Manager Robert Hendrix stated the City Council requested a discussion about the size of its four current official Advisory Boards, which include the Recreation & Parks Commission, Public Works Advisory Board, Harbor Advisory Board and the Community Promotions Committee. These groups assist with advice and recommendations to the City Council on policy matters of importance to the City. These groups are permanent and as such are subject to the provisions of the Brown Act. The members of these groups are appointed by the City Council. The task of finding, interviewing and selecting residents who are ready, willing and able to serve in a community this size is a continuing challenge. The City now has three vacancies on the committees. The City Council has ® asked to consider a change in the size of the groups over time bringing them, through attrition down to five from seven members. Should the City Council desire.to make this change, it would be appropriate to direct staff to bring back amended committee by-laws for consideration. The proposed by-laws would provide for reduction in the size of the groups through attrition or when current terms expire. Mr. Hendrix recommended the City Council discuss this issue, and direct staff accordingly. Council maintained the size of the advisory boards, and directed staff to postpone advertising current vacancies until January 2006. Mayor Peters called for a break at 8:50 p.m.; the meeting resumed at 8:55 p.m. C-6 REPORT ON ISSUES RELATED TO CREATING AN AD HOC ADVISORY COMMITTEE ON ENVIRONMENTAL ISSUES; (ADMINISTRATION) City Manager Robert Hendrix stated the City Council has requested a discussion about establishing an "ad hoc" committee on environmental issues. Councilmember DeMeritt stated this commission would focus on specific tasks such as investigate and formulate recommendations for cost-effective environmental ideas for the City; increase community -wide awareness and education about conservation; provide input to the Council on various conservation plans; investigate and apply for funding opportunities; and generate possible programs for the community to promote eco-tourism. E MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 22, 2005 Councilmember DeMeritt stated she would like this committee to focus on preserving, enhancing, promoting and educating the public about our environment. She stated she would form an ad -hoc committee, and report back to Council. No further action was taken on this item. C-7 REPORT AND CONTINUED DISCUSSION OF PROS AND CONS OF REDEVELOPMENT AGENCY FORMATION; (PUBLIC SERVICES) Public Services Director Bruce Ambo stated on July 25, 2005, the City Council received a presentation on the topic redevelopment by urban Futures, Inc. Following the close of the public comment period and the Council discussion, Council directed staff to return with a report on the pros and cons of forming a Redevelopment Agency. One of the major advantages of redevelopment is that it provides full time emphasis on redevelopment and economic development. The primary purpose of redevelopment is to eliminate blight by stimulating economic development through private property investments that increase the property tax base. Twenty percent of the tax increment generated in the redevelopment area must be spent on affordable housing on a citywide ® basis. On the "Con" side, taxing entities, primarily the school district and the County, stand to loose potential tax increment that is generated in the redevelopment area because the base tax year is frozen for the life of the agency. This tax increment is ultimately redistributed at an inflated rate when the agency sunsets. Mr. Ambo recommended the City Council provide direction to either continuing further research on redevelopment, or deferring further action by receiving and filing the report. Council concurred to continue consideration of this item to January 2006 during the mid- year budget review. No further action was taken on this item. D. NEW BUSINESS D-I REPORT AND DISCUSSION OF DEVELOPMENT IMPACT FEE PROGRAM; (ADMINISTRATION) City Manager Robert Hendrix stated that Councilmember DeMeritt had requested a discussion about imposition of Development Impact Fees. These fees can be legally assessed against new development to help pay for capital costs of many different programs. The capital costs must be specifically related to the impacts of the new development. In order for any such fee to be levied, the City must first demonstrate that ® it has a long-range capital plan. This plan must include a cost estimate for future capital W11 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 22, 2005 projects in the community. The City must also analyze future capital costs in the community and associate them to specific impacts of development, showing a nexus between the new development and the future capital need. The relationship is essential to having a valid impact fee. The task of completing these studies is complex even in a larger jurisdiction where detailed capital plans are already in place. Tackling this program in Morro Bay could be quite expensive. The expense should be weighed against the future value of the fee. In making this comparison, the City should consider how significant future development in this City will be, assuming the City boundaries remain fixed and that there is relatively little open land within the City. Mr. Hendrix recommended the City Council discuss the requirements and implications of implementing new development impact fees and direct staff accordingly. Council concurred to continue consideration of this item to January 2006 during the mid- year budget review. No further action was taken on this item. D-2 REPORT ON LEGAL REQUIREMENTS 'FOR NOTICING; (CITY ® ATTORNEY) This item was continued to the September 12, 2005 City Council meeting. ADJOURNMENT The meeting adjourned at 10:12 p.m. Recorded by: Bndgett Bauer City Clerk it ® NOTICE OF SPECIAL MEETING NOTICE IS HEREBY GIVEN that the Morro Bay City Council will be holding a Special Meeting on Thursday, August 11, 2005 at 5:00 p.m. to be held in the Community Center Multi Purpose Room, 1001 Kennedy Way, Morro Bay, California. The City Council will be previewing the agenda for the Morro Bay/Cayucos Sanitary District Joint Powers Authority meeting as follows: A. CONSENT CALENDAR 1. Minutes of May 19, 2005 Meeting - Recommend approval. 2. Minutes of May 26, 2005 WWTP Upgrade Subcommittee - Recommend approve. 3. Wastewater Treatment Plant (WWTP) Operations Report through June 30, 2005 (Keogh) — Recommend, receive and file. 4. Financial Status Report as of May 31, 2005 (Koser) — Recommend, receive and file. B. UNFINISHED BUSINESS 1. Consideration to Approve FY 05-06 Budget 2. Status Report on the Full Secondary WWTP Upgrade 91/2 Year Time Schedule (Keogh) ® C. NEW BUSINESS 1. Update on the Preparation for Request for Proposal (RFP) for Facility Master Plan foi WWTP Upgrade (Keogh) 2. Consideration of Whether or Not to Record Depreciation Expense Within the FY 05-06 Budget (Gibeaut) 3. Consideration of Whether or Not to Establish a Capital Outlay Fund for Replacement of WWTP Facilities, in Accordance with Sections G and I(15) of the Joint Powers Agreement (Gibeaut) 4. Discussion About Designation of an Official Spokesperson for Media and Public Contact Purposes Concerning the WWTP Upgrade Project (Enns Verbal) 5. Discussion About the Possibility of Contracting or Hire of a Public Information Officer for the WWTP Upgrade Project (Gibeaut) 6. Discussion About the Possibility of Contracting for Services of a Schedule Coordinator for WWTP Upgrade (Erns) 7. Schedule Next Joint Meeting and Agenda Items The City Council will adjourn to the Morro Bay/Cayucos Sanitary District Joint Powers Authority meeting that will begin at 7:00 p.m., and will be held at the Cayucos Elementary School, 301 Cayucos Drive, Cayucos, California 93430 11 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. DATED: August 8, 2005 1"mmm"N' 11 2 6 Cityof Morro Bay y 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 8, 2005 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 REPORT REQUESTING AUTHORITY TO COMMENCE LITIGATION RE: LEASE SITE 35W-36W (CITY ATTORNEY) RECOMMENDATION: Authorize litigation to ensure removal of the Tenants' improvements (docks) on Lease Site 35W-36W. A-2 ACCEPTANCE OF OFFER OF DEDICATION OF NON -POTABLE IRRIGATION WELL AND APPROVAL OF OPERATING AGREEMENT (PUBLIC SERVICES) ® RECOMMENDATION: Accept offer of dedication of non -potable irrigation well and approve operating agreement. CJ A-3 A) ORDINANCE NO. 511 ADOPTING AMENDMENTS TO TITLE 17 OF THE MORRO BAY MUNICIPAL CODE UPDATING THE ZONING ORDINANCE, LOCAL COASTAL PROGRAM, ENVIRONMENTAL DOCUMENTS AND COASTAL IMPLEMENTATION PLAN (SECOND READING/ADOPTION\ ; B) ORDINANCE NO. 512 ADOPTING AMENDMENTS TO TITLE 17 OF THE MORRO BAY MUNICIPAL CODE UPDATING THE SIGN ORDINANCE, ENVIRONMENTAL DOCUMENTS AND COASTAL IMPLEMENTATION PLAN (SECOND READING/ADOPTION) AND, C) ORDINANCE NO. 513 ADOPTING ZONING MAP AMENDMENTS THAT CORRESPOND TO AMENDMENTS TO TITLE 17 OF THE MORRO BAY MUNICIPAL CODE UPDATING THE ZONING ORDINANCE,. LOCAL COASTAL PROGRAM, ENVIRONMENTAL DOCUMENTS AND COASTAL IMPLEMENTATION PLAN; (SECOND READING/ADOPTION) (PUBLIC SERVICES) RECOMMENDATION: Approve the second reading and adopt Ordinance Nos. 511, 512, and 513. 2 A-4 PROCLAMATION DECLARING AUGUST 20, 2005 "SAN LUIS OBISPO ® COUNTY AIRPORT DAY" (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. A-5 GRANT OF ACCESS EASEMENT TO 460 CHORRO CREEK ROAD (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution 31-05 granting an additional 4-foot easement for ingress and egress from Chorro Creek Road across City owned property to property located at 460 Chorro Creek Road. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 PUBLIC HEARING ON THE APPEAL OF THE PLANNING COMMISSION DENIAL OF A COMMUNITY HOUSING PROJECT PROPOSED AT 516 SHASTA AVENUE (PUBLIC SERVICES) RECOMMENDATION: Consider the issue raised in appeal and either uphold the Planning Commission's determination and deny the appeal or approve the appeal, reversing the Planning Commission's findings for denial and take final action. ® B-2 PUBLIC HEARING ON CONSIDERATION OF MIXED USE PROJECT AT 555 MAIN STREET (PUBLIC SERVICES) RECOMMENDATION: Conditionally approve the project. B-3 PUBLIC HEARING ON CONTINUING CONSIDERATION OF THE APPROVAL OF SEVEN -LOT SUBDIVISION WITH THE EXISTING CHURCH RETAINED ON THE REMAINDER PARCEL (PUBLIC SERVICES) RECOMMENDATION: Consider the offer of a pedestrian corridor and conditionally approve the project. C. UNFINISHED BUSINESS C-I REPORT AND DISCUSSION ON FORMULATING AN E-MAIL POLICY (CITY ATTORNEY) RECOMMENDATION: Discuss and direct staff to bring back for adoption a comprehensive e-mail policy.' 3 C-2 REPORT AND RECOMMENDATIONS ON USING PROFESSIONAL ® SURVEY TECHNIQUES TO GUIDE DECISIONS ON NEW REVENUE PROGRAM (ADMINISTRATION) RECOMMENDATION: Proceed with phase one of the project and baring back an appropriate budget adjustment with the mid -year budget report. C-3 CONTINUING UPDATE ON PLANNING DIVISION WORK PROGRAM (PUBLIC SERVICES) RECOMMENDATION: Provide direction for shifting the priorities of the advanced Planning Work Program in response to recently added work items. D. NEW BUSINESS D-1 REPORT ON ISSUES RELATED TO CREATING AN AD HOC ADVISORY COMMITTEE ON ENVIRONMENTAL ISSUES (ADMINSITRATION RECOMMENDATION: Direct staff accordingly. D-2 REPORT ON ALTERNATIVE ROLE FOR COMMUNITY PROMOTIONS ® COMMITTEE (ADMINISTRATION) RECOMMENDATION: Consider comments and ideas of the Community Promotions Committee and provide direction to staff regarding the future role of the Committee. D-3 REPORT ON CHANGING THE SIZE OF SELECTED ADVISORY BOARDS (ADMINISTRATION) RECOMMENDATION: Consider direction to staff to bring back modified Committee By-laws for Council adoption. D-4 REPORT ON FEASIBILITY OF ADDING AN EVENT COORDINATOR POSITION IN THE HARBOR DEPARTMENT (HARBOR) RECOMMENDATION: Review department analysis and do not proceed with consideration of the concept at this time. D-5 REPORT ON COMPENSATION POLICY FOR CITY "AT WILL" EMPLOYEES (ADMINISTRATION RECOMMENDATION: Receive information and file. al D-6 REPORT ON OPERATIONS OF THE VISITOR'S CENTER 6 (ADMINISTRATION) RECOMMENDATION: Receive information and file. E. ADJOURNMENT THIS AGENDA IS SUBJECT TO AN1IENDMENT 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. LJ 5 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 8, 2005 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Peters called the meeting to order at 6:00 p.m. PRESENT: Janice Peters Mayor Thad Baxley Councilmember Melody DeMeritt Councilmember William Peirce Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix Andrea Lueker Robert Schultz Bridgett Bauer Rick Algert Bruce Ambo Bill Boucher Frank Cunningham John DeRohan Steve Knuckles ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR'S REPORTS & ANNOUNCEMENTS CLOSED SESSION REPORT - None. PUBLIC COMMENT City Manager Assistant City Manager City Attorney City Clerk Harbor Director Public Services Director Capital Projects Manager City Engineer Police Chief Acting Fire Chief The following people addressed Item D-2 (Report on Alternative Role for Community Promotions Committee), and requested the City Council maintain the Community Promotions Committee: Ed Biaggini, Dannie Tope, David Weisman, Meredith Bates, Joan Solu, Norm MacTaggart and Ken Vesterfelt. The following people addressed Item D-3 (Report on Changing the Size of Selected Advisory Boards), and requested the City Council maintain the current seven -member. advisory boards: Ed Biaggini, Ray McKelligott, Roger Ewing and Frank DeVine. John Biondi and Rob Boone complained about a TKD employee advertising on the Embarcadero and telling people to go downtown for shopping. E ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 8, 2005 Dorothy Cutter requested the City Council pull Item A-1 (Report Requesting Authority to Commence Litigation Re: Lease Site 35W-36W) for further discussion on this lease. John Barta addressed Item A-3 (Ordinances Adopting Amendments to the Zoning Ordinance) stating the Planning Commission should be reviewing amendments to the Sign Ordinance prior to Council's approval, which is a substantial procedural problem. He also thanked the Morro Bay Police Department for their good will and support during the Merchants' Street Faire. Mr. Barta expressed dismay for the lack of appreciation for the time he put into the first major visitor website for the City. Wanda Durrick stated the City received a grant to improve signage within the City, and asked when those signs would be posted. Betty Forsythe announced the Friends of the Library would be sponsoring an event "Help with Planting at the Morro Bay Library" on August 22"a John Sorgenfrei, Tom Jones & Associates, reviewed Visitor Serving website statistics for Council and public information. ® Ray McKelligott stated the Community Promotions Committee should be working on events that will attract people to come to the City. Roger Ewing addressed Item A-2 (Acceptance of Offer of Dedication of Non -Potable Irrigation Well and Approval of Operating Agreement), and requested Council not approve this agreement for a private party to use the City water well. Frank Devine raised caution about the City considering a long-term debt program (Redevelopment Agency). Meredith Bates addressed the community liaison employee with the police department stating this position helps educate people on elder abuse and needs to be maintained Lynda Merrill shared photos of people riding on the trolley and enjoying the City. Mayor Peters closed the hearing for public comment. DECLARATION OF FUTURE AGENDA ITEMS Councilmember DeMeritt requested the consideration on use of an agenda planning device, noting she would write the staff report; (Councilmember Winholtz and Mayor ® Peters concurred). jl MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — AUGUST 8, 2005 Councilmember DeMeritt requested the discussion on development impact fees, noting information has already been provided and a cover memo is all that is needed from staff, (Councilmember Winholtz and Mayor 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-1 REPORT REQUESTING AUTHORITY TO COMMENCE LITIGATION RE: LEASE SITE 35W-36W (CITY ATTORNEY) RECOMMENDATION: Authorize litigation to ensure removal of the Tenants' improvements (docks) on Lease Site 35W-36W. A-2 ACCEPTANCE OF OFFER OF DEDICATION OF NON -POTABLE IRRIGATION WELL AND APPROVAL OF OPERATING AGREEMENT (PUBLIC SERVICES) is RECOMMENDATION: Accept offer of dedication of non -potable irrigation well and approve operating agreement. A-3 A) ORDINANCE NO. 511 ADOPTING AMENDMENTS TO TITLE 17 OF THE MORRO BAY MUNICIPAL CODE UPDATING THE ZONING ORDINANCE, LOCAL COASTAL PROGRAM, ENVIRONMENTAL DOCUMENTS AND COASTAL IMPLEMENTATION PLAN (SECOND READING/ADOPTION); B) ORDINANCE NO. 512 ADOPTING AMENDMENTS TO TITLE 17 OF THE MORRO BAY MUNICIPAL CODE UPDATING THE SIGN ORDINANCE, ENVIRONMENTAL DOCUMENTS AND COASTAL IMPLEMENTATION PLAN (SECOND READING/ADOPTION) AND, C) ORDINANCE NO. 513 ADOPTING ZONING MAP AMENDMENTS THAT CORRESPOND TO AMENDMENTS TO TITLE 17 OF THE MORRO BAY MUNICIPAL CODE UPDATING THE ZONING ORDINANCE, LOCAL COASTAL PROGRAM, ENVIRONMENTAL DOCUMENTS AND COASTAL IMPLEMENTATION PLAN; (SECOND READING/ADOPTION) (PUBLIC SERVICES) RECOMMENDATION: Approve the second reading and adopt Ordinance Nos. 511, 512, and 513. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 8, 2005 A4 PROCLAMATION DECLARING AUGUST 20, 2005 "SAN LUIS OBISPO COUNTY AIRPORT DAY" (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. A-5 GRANT OF ACCESS EASEMENT TO 460 CHORRO CREEK ROAD (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution 31-05 granting an additional 4-foot easement for ingress and egress from Chorro Creek Road across City owned property to property located at 460 Chorro Creek Road. Mayor Peters pulled Items A-1 and A-4 from the Consent Calendar; Councilmember DeMeritt pulled Item A-2; and, Councilmember Winholtz pulled Item A-3. 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) ® A-1 REPORT REQUESTING AUTHORITY TO COMMENCE LITIGATION RE: LEASE SITE 35W-36W (CITY ATTORNEY) MOTION: Mayor Peters moved the City Council continue this item to a future Closed Session agenda. The motion was seconded by Councilmember Baxley and carried unanimously. (5-0) A-2 ACCEPTANCE OF OFFER OF DEDICATION OF NON -POTABLE IRRIGATION WELL AND APPROVAL OF OPERATING AGREEMENT (PUBLIC SERVICES) Councilmember DeMeritt expressed opposition to this offer because the City does not need this well, and should not go through the time and expense of maintaining it for private use. MOTION: Councilmember DeMeritt moved the City Council reject the offer and agreement of dedication of a 'non -potable irrigation well located at 221/223 Atascadero Road, Morro Bay, California. The motion was seconded by Councilmember Winboltz and carried unanimously. (5-0) C�� MINUTES - MORRO BAY CITY COUNCIL toREGULAR MEETING — AUGUST 8, 2005 A-3 A) ORDINANCE NO. 511 ADOPTING AMENDMENTS TO TITLE 17 OF THE MORRO BAY MUNICIPAL CODE UPDATING THE ZONING ORDINANCE, LOCAL COASTAL PROGRAM, ENVIRONMENTAL DOCUMENTS AND COASTAL IMPLEMENTATION PLAN (SECOND READING/ADOPTION); B) ORDINANCE NO. 512 ADOPTING AMENDMENTS TO TITLE 17 OF THE MORRO BAY MUNICIPAL CODE UPDATING THE SIGN ORDINANCE, ENVIRONMENTAL DOCUMENTS AND COASTAL IMPLEMENTATION PLAN (SECOND READING/ADOPTION) AND, C) ORDINANCE NO. 513 ADOPTING ZONING MAP AMENDMENTS THAT CORRESPOND TO AMENDMENTS TO TITLE 17 OF THE MORRO BAY MUNICIPAL CODE UPDATING THE ZONING ORDINANCE, LOCAL COASTAL PROGRAM, ENVIRONMENTAL DOCUMENTS AND COASTAL IMPLEMENTATION PLAN; (SECOND READING/ADOPTION) (PUBLIC SERVICES) Councilmember Winholtz expressed opposition to the adoption of these ordinances because she finds them to be incomplete. MOTION: Councilmember Baxley moved the City Council approve Item A-3 of the ® Consent Calendar. The motion was seconded by Mayor Peters and carried with Councilmember Winholtz voting no. (4-1) A-4 PROCLAMATION DECLARING AUGUST 20, 2005 "SAN LUIS OBISPO COUNTY AIRPORT DAY" (ADMINISTRATION) Mayor Peters pulled this item for public awareness. MOTION: Councilmember Winholtz moved the City Council approve Item A4 of the Consent Calendar. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) Mayor Peters called for a break at 7:10 p.m.; the meeting resumed at 7:20 p.m. B. PUBLIC HEARINGS, REPORTS & APPEARANCES B-1 PUBLIC HEARING ON THE APPEAL OF THE PLANNING COMMISSION DENIAL OF A COMMUNITY HOUSING PROJECT PROPOSED AT 516 SHASTA AVENUE (PUBLIC SERVICES) Senior Planner Mike Prater stated the applicant/appellant is requesting approval of a Tentative Tract Map, Conditional Use Permit, Coastal Development Permit and setback ® Variances to subdivide two existing parcels creating four parcels and thereby a four -unit 5 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 8, 2005 community housing project. Currently, three existing residential units exist; two detached houses are located on one parcel and one house and detached garage on the other adjoining parcel. The applicant proposes to demolish the detached garage and construct a new fourth residential unit and create a total of four lots through the community housing project regulations. The Planning Commission considered the application at their June 6, 2005 meeting, where they denied the project based on the lack of common useable open space and project not meeting the test to grant the variances. The applicant has appealed this decision to the City Council for final consideration. Mr. Prater recommended the City Council consider the issue raised in appeal and either uphold the Planning Commission's determination and deny the appeal or approve the appeal, reversing the Planning Commission's findings for denial and take final action. George Contento, applicant/appellant, stated the City has approved various other projects over a period of years that provided similar open space layouts. He said the proposed variance does not constitute a granting of special privilege because the project is attempting to incorporate a new residence into an existing complex of three residences. Mr. Contento stated this is a unique project that will not necessarily set a precedent, except to allow flexibility for other projects that attempt to maintain the eclectic.character is garages Morro Bay's neighborhoods. He said the current plan best accommodates the new garages and backup space, and presents the best possible scenario. Mr. Contento stated this project would be entirely legal as condominiums. Mayor Peters opened the hearing for public comment. Frank DeVine and Michael Durrick expressed support for this project. Mayor Peters closed the public comment hearing. Councilmember Winholtz stated she would like to require the front two units to have a restricted height limit which would allow some height benefits for the back units. She said she supports the variance vs. the zero lot line because it allows the back lot to not grab from the other two lots. Councilmember Winholtz stated she otherwise supports the project. Councilmember Baxley stated he supports the findings with the exception of finding #2, stating there is a way for the applicant to impose affordable housing to get away from the variances, which he would like to see approved. Councilmember DeMeritt stated she is most concerned with the preservation of the character of the town, and would like to deed restrict the front houses so that they can be ® maintained as single -story housing. She said she likes the creativeness of the project, the 0 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST S, 2005 big open space in the middle, the preservation of the front two units, and the attempt the applicant has made to make the two front units look similar, the front setbacks with yards, and lessening the size of the driveway in order to add landscaping that will benefit the neighborhood. Councilmember Peirce stated he likes the concept of this project, and that the project lends to affordable housing. He said he concurs that a deed restriction should be placed on the two front houses to maintain them as single -story residences. Mayor Peters stated by reducing the size of the unit on the smallest lot would be an easier fix rather than requesting a variance. She said the applicant should address issues such as a deed restriction on the front units or affordable housing before this project can be approved. MOTION: Mayor Peters moved the City Council continue this public hearing to the September 12, 2005 Council meeting. The Appellant is invited to return with a revised project addressing the items discussed by the City Council. The motion was seconded by Councilmember Baxley and carried ® unanimously. (5-0) Mayor Peters called for a break at 8:30 p.m.; the meeting resumed at 8:38 p.m. B-2 PUBLIC HEARING ON CONSIDERATION OF MIXED USE PROJECT AT 555 MAIN STREET (PUBLIC SERVICES) Senior Planner Mike Prater stated the applicant is requesting approval of a Tentative Tract Map, Conditional Use Permit and Coastal Development Permit to subdivide the westerly lots into five parcels for a Community Housing Project with exceptions to common open space. The proposed project will also develop the easterly lots with commercial buildings that have at least 25 percent commercial mix in conjunction with a total of 14 one -bedroom apartment units. The applicant wishes to provide affordable housing under SB 1818 to qualify for a density bonus and concessions. On July 11, 2005, the City Council denied a similar project without prejudice that provided only 10.4 percent commercial use within the mixed -use portion of the project. The City Council provided feedback to the applicant that suggested a project could be found consistent with General Plan/Local Coastal Plan with a mix of commercial to residential of at least 25 percent commercial that modified the middle of the complex by reducing the number of residential units and/or increasing commercial on the ground floor. The project requires the City Council to decide if the configuration and amount is adequate to be consistent with the ordinance and compatible with the neighborhood. The City Council ® suggested at least 25 percent commercial would be adequate but needed to see how more 7 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 8, 2005 commercial and/or less apartments would affect the project. The Council also suggested the single-family side of the project was satisfactory with the changes proposed by the applicant and found the benefits offered by the project adequately outweighs the exceptions requested. Mr. Prater recommended the City Council conditionally approve the project. George Garcia, representing the applicant/appellant, stated the applicant has proposed adding seven conditions of approval relating to the commercial units for the project that would demonstrate a reasonable attempt to market the commercial units for lease; the primary uses will be given to visitor -serving. He said the applicant also proposes a 24 month period, starting at building permit submittal, to find prospective tenants for the commercial units before submitting documentation to Public Services illustrating his efforts to fill the units thereby allowing the developer the option to convert the commercial units to residential use if all reasonable attempts have been made resulting in failure to find tenants. Mayor Peters opened the hearing for public comment. ® Margarite Bader, Co -Chairman of the Work Force Housing Coalition, requested the City Council approve the project as proposed without the additional commercial units in order to provide affordable housing. Trudy Jarret, President of the League of Women Voters, stated the League supports and encourages the City Council to approve this project as presented with affordable housing. Norm MacTaggart stated he opposes this project because the parking does not meet the standards. He said he would like to see guarantees that this project will be built to meet all City standards and codes. Ron Reisner stated this project does meet all City zoning requirements, and Council should approve this project. Priscilla Ko stated standards of conditions should be clear and concise for proper enforcement. She said the City should make it clear that the two affordable units should be handicap accessible. Brian Holden requested Council consider this project for the sake of the working class housing. Natalie Tartaglia stated all previous owners of this property like this project. E MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — AUGUST 8, 2005 Ken Vesterfelt expressed support for this project. Michael Coss, applicant, stated this project originally was planned for work force and affordable housing which is a benefit to the City. Roy Kline stated this is zoned MCR (Mixed Commercial/Residential) and should maintain the commercial uses. Mayor Peters closed the public comment hearing. Councilmember DeMeritt stated the south elevation of this project does not lend to the vision of a commercial use. She said the conditions of approval should state the construction of the structure should commence 24-months from issuance of the permits. Councilmember DeMeritt expressed concern with mixed -use building number 3 which looks more like a residential building rather than commercial. Councilmember Peirce stated if a building is going to be rented as a commercial use, then it should look like a commercial building. He said he does not see the eventuality of ® converting all the commercial uses to residential. Councilmember Winholtz stated the 25% commercial use is a concession to this project; she said it should be at least 50% commercial use. She expressed concern with the reduced -sized parking spaces. Councilmember Winholtz stated she approves of the one - bedroom and affordable housing units. Councilmember Baxley stated the 25% commercial ratio is reasonable. He said with the changes made, this project should be approved. Mayor Peters stated this is an attractive mixed -use project. She said the proposed start date is standard operating procedures for commercial space. Mayor Peters stated the applicant has addressed Council's concerns, and it is time to approve this project. MOTION: Councilmember Winholtz moved the City Council conditionally approve the mixed -use project at 555 Main Street as presented. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) j ij ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —AUGUST 8, 2005 B-3 PUBLIC HEARING ON CONTINUING CONSIDERATION OF THE APPROVAL OF SEVEN -LOT SUBDIVISION WITH THE EXISTING CHURCH RETAINED ON THE REMAINDER PARCEL (PUBLIC SERVICES) Councilmember Winholtz stepped down from this item due to her participation in the Estero Bay United Methodist Church. Senior Planner Mike Prater stated the City Council continued the public hearing regarding the seven -lot subdivision with the existing church retained on the remainder parcel to the August 8, 2005 meeting. The Council moved to have Sequoia Street blocked off with a Knox box for emergency access and allow the use of a hammerhead instead of a cul-de-sac. The Council accepted the other conditions added by the Planning Commission. The applicants have revised their proposal to include a pedestrian corridor as the public scenic open space necessary to meet the subdivision ordinance for creating smaller clustered lots in the RA zone district. Mr. Prater recommended the City Council consider the offer of a pedestrian corridor and conditionally approve the project. ® Pamela Jardine, representing the applicant, reviewed the details of the project as it relates to Council's comments at the July 11, 2005 meeting. She said the applicants have revised their proposal to include a pedestrian corridor as the public scenic open space necessary to meet the subdivision ordinance for creating smaller clustered lots in the RA zone district. Mayor Peters opened the hearing for public comment. Hilary Saner stated there are mandates of the Church to maintain an attractive open space on this property. She said the Church government would not allow any further subdivision of this property. Ms. Saner stated the Church is also committed to maintain the community garden. Mayor Peters closed the public comment hearing. Councilmember Peirce stated the applicant has addressed the concerns of the Council, and this project is worth moving forward. Councilmember DeMeritt stated the community garden beautifies this area, which sits on a large piece of land. Councilmember Baxley stated he would like a sidewalk on either side of the hammerhead ® to allow for pedestrians; otherwise, he supports the project. 10 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 8, 2005 Mayor Peters stated she supports this project as presented. She said she likes that the community garden will be there in perpetuity. MOTION: Councilmember Peirce moved the City Council conditionally approve the seven -lot subdivision with the existing church retained on the remainder parcel and providing a public easement as presented. The motion was seconded by Councilmember DeMeritt and carried with Councilmember Winholtz abstaining. (4-0-1) Mayor Peters called for a break at 10:12 p.m.; the meeting resumed at 10:17 p.m. C. UNFINISHED BUSINESS C-I REPORT AND DISCUSSION ON FORMULATING AN E-MAIL POLICY (CITY ATTORNEY) MOTION: Councilmember Winholtz moved the City Council direct staff to prepare a ® draft comprehensive e-mail policy for Council review. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) C C-2 REPORT AND RECOMMENDATIONS ON USING PROFESSIONAL SURVEY TECHNIQUES TO GUIDE DECISIONS ON NEW REVENUE PROGRAM (ADMINISTRATION) City Manager Robert Hendrix stated during the July 25, 2005 meeting, the City Council discussed the matter of surveying as an initial step toward a decision on one or more revenue proposals. The cost estimate has been reduced to reflect only tasks associated with reaching a tentative conclusion on the viability of a revenue measure, beyond that point additional costs would be necessary. Mr. Hendrix recommended the City Council authorize staff to proceed with phase -one of the project and to bring back an appropriate budget adjustment with the mid -year budget report. Mayor Peters stated it is important to perform the survey in order to know what our community wants, so she supports going forward with the survey. Councilmember Peirce stated he supports the survey so the City knows what the community wants. 11 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 8, 2005 Councilmember DeMeritt stated money does not need to be spent to find out what our City needs. She said there are Cal Poly students in marketing or statistics that have performed phone surveys for free. Councilmember Winholtz stated if the City were more flush she would be in full support; at this point she is tom between going with a professional survey or another less expensive approach. Councilmember Baxley stated a survey is needed to find out what the citizens want before it is placed on a ballot. MOTION: Councilmember Baxley moved the City Council authorize the City Manager to proceed with phase one of the project, and bring back an appropriate budget adjustment with the mid -year budget report. The motion was seconded by Councilmember Peirce and carried with Councilmember DeMeritt voting no. (4-1) C-3 CONTINUING UPDATE ON PLANNING DIVISION WORK PROGRAM ® (PUBLIC SERVICES) This item was continued to the August 22, 2005 City Council meeting. D. NEW BUSINESS D-I REPORT ON ISSUES RELATED TO CREATING AN AD HOC ADVISORY COMMITTEE ON ENVIRONMENTAL ISSUES (ADMINSITRATION) This item was continued to the August 22, 2005 City Council meeting. D-2 REPORT ON ALTERNATIVE ROLE FOR COMMUNITY PROMOTIONS COMMITTEE (ADMINISTRATION) This item was continued to the August 22, 2005 City Council meeting. D-3 REPORT ON CHANGING THE SIZE OF SELECTED ADVISORY BOARDS; (ADMINISTRATION) This item was continued to the August 22, 2005 City Council meeting. 12 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —AUGUST 8, 2005 D-4 REPORT ON FEASIBILITY OF ADDING AN EVENT COORDINATOR POSITION IN THE HARBOR DEPARTMENT (HARBOR) MOTION: Councilmember Peirce moved the City Council authorize the half-time Crime Prevention Officer position in the Police Department, and direct staff to return to Council with a budget adjustment providing for this position. The motion was seconded by Councilmember Baxley and carried unanimously. (5-0) D-5 REPORT ON COMPENSATION POLICY FOR CITY "AT WILL" EMPLOYEES (ADMINISTRATION) This item was continued to the August 22, 2005 City Council meeting. D-6 REPORT ON OPERATIONS OF THE VISITOR'S CENTER (ADMINISTRATION) This item was continued to the August 22, 2005 City Council meeting. �►1U171lkh The meeting adjourned at 10:52 p.m. Recorded by: Bridgett Bauer City Clerk E 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 — JULY 25, 2005 CLOSED SESSION — JULY 25, 2005 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA ® CS-1 GOVERNMENT CODE SECTION 54956.9; 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. • Parties: City of Morro Bay and Martony/Pekarek Issue: Breach of Lease Agreement for Lease Site 35W-36W. CS-2 GOVERNMENT CODE SECTION 54957.6; CONFERENCE WITH LABOR NEGOTIATOR. Conference with the City Manager, the City's Designated Representative, for the purpose of reviewing the City's position regarding salaries, salary schedules, or compensation paid in the form of fringe benefits, and giving instruction to the Designated Representative. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ® ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. ® PUBLIC SESSION — JULY 25, 2005 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. 0 ® A-1 MINUTES FOR THE JULY 11, 2005 REGULAR MEETING; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 RATIFICATION OF PUBLIC SERVICES DIRECTOR'S LETTER REGARDING DRAFT ENVIRONMENTAL IMPACT STUDY FOR SAN LUIS DRAINAGE FEATURE RE-EVALUATION; (PUBLIC SERVICES) RECOMMENDATION: Ratify the letter sent to. the U.S. Department of the Interior - Bureau of Reclamation regarding the Draft Environmental Impact Study for the San Luis Drainage Feature Re -Evaluation. B. PUBLIC HEARINGS, REPORTS & APPEARANCES B-I DISCUSSION AND PRESENTATION ON COMMUNITY REDEVELOPMENT AGENCY FORMATION; (PUBLIC SERVICES) RECOMMENDATION: Receive presentation by Urban Futures, Inc. on Community Redevelopment Agency Formation. B-2 A) ORDINANCE NO. 511 ADOPTING AMENDMENTS TO TITLE 17 OF THE ® MORRO BAY MUNICIPAL CODE UPDATING THE ZONING ORDINANCE, LOCAL COASTAL PROGRAM, ENVIRONMENTAL DOCUMENTS AND COASTAL IMPLEMENTATION PLAN (FIRST READING/ INTRODUCTION); B) ORDINANCE NO. 512 ADOPTING AMENDMENTS TO TITLE 17 OF THE MORRO BAY MUNICIPAL CODE UPDATING THE SIGN ORDINANCE, ENVIRONMENTAL DOCUMENTS AND COASTAL IMPLEMENTATION PLAN (FIRST READINGIINTRODUCTION) AND, C) ORDINANCE NO. 513 ADOPTING ZONING MAP AMENDMENTS THAT CORRESPOND TO AMENDMENTS TO TITLE 17 OF THE MORRO BAY MUNICIPAL CODE UPDATING THE ZONING ORDINANCE, LOCAL COASTAL - PROGRAM, ENVIRONMENTAL DOCUMENTS AND COASTAL IMPLEMENTATION PLAN; (FIRST READING/INTRODUCTION) ; (PUBLIC SERVICES) RECOMMENDATION: Approve first reading and introduction of Ordinance Nos. 511, 512 and 513. B-3 AUTHORIZATION TO SEEK BIDS FOR THE SALE OF CITY -OWNED REAL PROPERTY LOCATED AT CORAL/SAN JACINTO, LOT 124, TRACT 1996, MORRO BAY, CALIFORNIA; (CITY ATTORNEY) RECOMMENDATION: Authorize staff to seek bids to sell the real property . located at the SEC Coral/San Jacinto Street in Morro Bay. 3 ® C. UNFINISHED BUSINESS C-1 CONSIDERATION OF PROJECT REGARDING NEW REVENUE PROGRAMS; (ADMINISTRATION) RECOMMENDATION: Discuss and direct staff accordingly. D. NEW BUSINESS D-1 DISCUSSION ON FORMULATING AN E-MAIL POLICY; (CITY COUNCIL) RECOMMENDATION: Discuss and direct staff to bring back for adoption a comprehensive e-mail policy. 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. rd MINUTES - MORRO BAY CITY COUNCIL ® CLOSED SESSION — JULY 25, 2005 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Peters 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 Hendrix City Manager Robert Schultz City Attorney Andrea Lueker Assistant City Manager Rick Algert Harbor Director CLOSED SESSION MOTION: Councilmember Baxley moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Winholtz and unanimously carried. (5-0) Mayor Peters read the Closed Session Statement. ® CS-1 GOVERNMENT CODE SECTION 54956.9. 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. • Parties: City of Morro Bay and Martony/Pekarek Issue: Breach of Lease Agreement for Lease Site 35 W-36W. LABOR NEGOTIATOR. Conference with the City Manager, the City's Designated Representative, for the purpose of reviewing the City's position regarding salaries, salary schedules, or compensation paid in the form of fringe benefits, and giving instruction to the Designated Representative. The meeting adjourned to Closed Session at 5:02 p.m. and returned to regular session at 5:58 p.m. MOTION: Councilmember Baxley moved the meeting be adjourned. The motion was seconded by Councilmember Winholtz and unanimously carried. (5-0) The meeting adjourned at 5:58 p.m. M MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — JULY 25, 2005 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Peters called the meeting to order at 6:10 p.m. PRESENT: Janice Peters Mayor Thad Baxley Councilmember Melody DeMeritt Councilmember William Peirce Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix Robert Schultz Jamie Boucher Rick Algert Bruce Ambo John DeRohan Mike Pond Mike Prater City Manager City Attorney Deputy City Clerk Harbor Director Public Services Director Police Chief Fire Chief Senior 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 took the following action on Item CS-1: MOTION: Councilmember Baxley moved that this item be brought back to the August 8, 2005 City Council meeting to request report on topic of litigation. The motion was seconded by Councilmember Peirce and carried with Councilmember Winholtz voting no. (4-1) There was no reportable action under the Brown Act taken on Item CS-2. PUBLIC COMMENT Steve Mathieu encouraged the City to figure out how to accommodate groups wishing to use City public facilities for yearly/quarterly/monthly meetings. He said these groups are spending and will continue to spend money in Morro Bay and he hopes we can be more accommodating. Hank Roth spoke on behalf of a benefit that will take place on Tuesday, July 26, 2005 at Taco Temple for a local resident, Rusty Clark, who has been diagnosed with cancer. ® Jack McCurdy spoke in favor of alternative technologies for Power Plant cooling systems. MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — JULY 25, 2005 Louise Barkas thanked City staff for listening to her concerns regarding a weed abatement problem in her neighborhood. Betty Forsythe re -enforced the "Helping Hands Concept" in Morro Bay. She said volunteers are needed to help with a book sale and planting projects at the library. Nancy Castle spoke on behalf of the quarterly Historical Society meetings, the next of which is a pot luck being held on August 7, 2005 at the Episcopal Church. She said the next speaker would be long time local farmer, Pat Nagano. Roy Kline expressed concern with the perceived compromises made to the developer on the Alder Street project. Frank Devine stated he objects to some of the changes being made to the Zoning Ordinance and General Plan. He feels these changes remove too much public input from commercial development and re -development projects. Mandy Davis suggested that based on the recommendations of the 20/20 Vision draft, the ® City should consider forming an Ad Hoc Environmental Advisory Committee. Ed Biaginni, Chairman of the Community Promotions Committee, updated Council on the last Community Promotions meeting. He said the Committee approved a survey that will be conducted throughout the summer at the Visitor's Center. Mr. Biaggini stated he hopes the City will have a special meeting to discuss Council's attempt at changing the face of their committee. Lynda Merrill expressed support for Item A-2 (Ratification of Public Services Director's Letter Regarding Draft Environmental Impact Study for San Luis Drainage Feature Re - Evaluation). She also expressed concern with the Zoning Ordinance and the Administrative Permits. Ms. Merrill stated she would like to see the monies from the sale of the property at Coral/San Jacinto go towards opening a North Morro Bay Fire Station. Ken Vesterfelt expressed how impressed he was at all the tourist activity over the weekend. Mayor Peters closed the hearing for public comment. DECLARATION OF FUTURE AGENDA ITEMS Councilmember DeMeritt requested a report on the operations of the Visitor's Center. ® Councilmember Winholtz requested that the Proposed Ordinance Regulating Trees on Private Property be brought back for discussion. MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — JULY 25, 2005 Councilmember Peirce requested a staff report studying ideas on how to facilitate out of area users use of City Facilities in order to encourage groups traveling to and staying in our City. Mayor Peters requested a report on issues related to creating an Ad Hoc Advisory Committee on Environmental Issues. Mayor Peters requested a report on changing the size of selected Advisory Boards. Councilmember Peirce requested bringing back a review of the Embarcadero Circulation Traffic Pattern. 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 JULY 11, 2005 REGULAR MEETING; ® (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 RATIFICATION OF PUBLIC SERVICES DIRECTOR'S LETTER REGARDING DRAFT ENVIRONMENTAL IMPACT STUDY FOR SAN LUIS DRAINAGE FEATURE RE-EVALUATION; (PUBLIC SERVICES) RECOMMENDATION: Ratify the letter sent to the U.S. Department of the Interior - Bureau of Reclamation regarding the Draft Environmental Impact Study for the San Luis Drainage Feature Re -Evaluation. Councilmember Winholtz pulled Item A-2 from the Consent Calendar. MOTION: Councilmember DeMeritt moved the City Council approve Item A-1 of the Consent Calendar. The motion was seconded by Councilmember Baxley and carried unanimously. (5-0) D11 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — JULY 25, 2005 A-2 RATIFICATION OF PUBLIC SERVICES DIRECTOR'S LETTER REGARDING DRAFT ENVIRONMENTAL IMPACT STUDY FOR SAN LUIS DRAINAGE FEATURE RE-EVALUATION; (PUBLIC SERVICES) Councilmember Winholtz suggested we approve the letter as written and send it off; and, in addition, staff writes a letter on behalf of the City Council that states their objection to its use as well. Mayor Peters asked if it would be advantageous to partner such a letter with the County. MOTION: Councilmember Winholtz moved that the City Council ratify the letter sent to the US Department of the Interior -Bureau of Reclamation as well as have the Mayor prepare and send an additional letter directly from the City Council stating their objection with the Ocean Disposal Alternative for San Luis Drainage Feature Re -Evaluation. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) B. . PUBLIC HEARINGS, REPORTS & APPEARANCES ® B-1 DISCUSSION AND PRESENTATION ON COMMUNITY REDEVELOPMENT AGENCY FORMATION; (PUBLIC SERVICES) John Huffman, Executive Vice President and Richard Tillberg, Vice President of Urban Futures, Inc. gave a power point presentation on Redevelopment Agencies. Their presentation focused on the following points: 1) information about their business; 2) Central Coast cities utilizing their services; 3) Redevelopment permitting points; 4) Redevelopment requirements; 5) issues that Redevelopment can address; 6) concerns about Redevelopment; and, 7) how Redevelopment can be funded. Mayor Peters opened the hearing for public comment. Frank Devine admitted to little personal experience with Redevelopment Agencies however he has concerns which are based on the way he perceives the agency in San Jose has been administered. His concerns focus on the economics and the potential controversy surrounding that. Mayor Peters closed the public comment hearing City Manager Robert Hendrix responded that this presentation was an introductory discussion and noted that much more public discussion on the subject would be necessary in ® order to make any decisions. And because this is an Economic Development Policy, that these discussions should be held at the City Council level. 5 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — JULY 25, 2005 Councilmember Winholtz suggested that this item be continued to the next meeting in order to get feedback from the public who may be watching as well as for Council to contact agencies in order to get their Redevelopment Agency history. She wanted to gain as much information without having to add to staff workload. Councilmember Peirce stated that staff would be needed to help with possible funding issues. Councilmember DeMeritt is veryenthusiastic about this concept. She likes the fact that its long term and that is a way to stop "the state takeaways" as well as to be able to keep the money local. MOTION: Councilmember DeMeritt directed staff to investigate the pros and cons of the establishment of a Redevelopment Agency and report on how the City can fund agency formation. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) B-2 A) ORDINANCE NO. 511 ADOPTING AMENDMENTS TO TITLE 17 OF THE ® MORRO BAY MUNICIPAL CODE UPDATING THE ZONING ORDINANCE, LOCAL COASTAL PROGRAM, ENVIRONMENTAL DOCUMENTS AND COASTAL IMPLEMENTATION PLAN (FIRST READING/ INTRODUCTION); B) ORDINANCE NO. 512 ADOPTING AMENDMENTS TO TITLE 17 OF THE MORRO BAY MUNICIPAL CODE UPDATING THE SIGN ORDINANCE, ENVIRONMENTAL DOCUMENTS AND COASTAL IMPLEMENTATION PLAN (FIRST READING/INTRODUCTION) AND, C) ORDINANCE NO. 513 ADOPTING ZONING MAP AMENDMENTS THAT. CORRESPOND TO AMENDMENTS TO TITLE 17 OF THE MORRO BAY MUNICIPAL CODE UPDATING THE ZONING ORDINANCE, LOCAL COASTAL PROGRAM, ENVIRONMENTAL DOCUMENTS AND COASTAL. IMPLEMENTATION PLAN; (FIRST READING/INTRODUCTION) ; (PUBLIC SERVICES) Senior Planner Mike Prater stated the City Council has worked through the entire Planning Commission Addendum and the July 2004 Public Review Draft of the proposed Zoning Ordinance. Although the City has approached the end of a long, deliberative, and participative process in amending the Zoning Ordinance at the local level, continued focus towards this end will enable the process to continue through the Coastal Commission review, which is expected to require up to a year. Following Coastal Commission review, the process of responding to their comments and suggestions will begin anew with the public review process at our local level. Mr. Prater recommended the City Council open the public hearing for review of the draft Zoning Ordinance and Zoning Map; take public ® testimony; consider adopting Ordinance Nos. 511, 512, and 513 taking final action to approve the Zoning Text Amendments, Zoning Map Amendments, and the Sign Ordinance 0 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — JULY 25, 2005 update; and, direct staff to forward the update along with the General Plan/Local Coastal Plan to the California Coastal Commission for certification. MOTION: Councilmember DeMeritt moved to elevate the live/work category to a Conditional Use Permit process. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) Mayor Peters opened the hearing for public comment. Roy Kline stated he feels that this Council majority has now re -interpreted the General Plan and Zoning Ordinances to mean something far different then what they were originally intended for. He doesn't believe that Council should have the right to be able to take a C-1 zoned lot and allow MCR Residential projects to be built on them where the residential portion is greater than 50% of the project. Frank Devine stated he feels that the Commercial District downtown spaces will become more residential in nature, which will push parking out to the streets. He feels the need for more businesses downtown, not more residences. He requests that Council not submit the ® Zoning Ordinances as currently written to the Coastal Commission. Mayor Peters closed the public comment hearing. MOTION: Councilmember Baxley moved to approve the Negative Declaration, adopt Ordinance No. 511, Ordinance 512 and Ordinance 513, approve the zoning text amendments, the zoning map amendments and the sign ordinance update and direct staff to forward the update along with the General Plan to the California Coastal Commission for certification and that the Ordinances be read by title and number only. The motion was seconded by Councilmember Peirce. and carried unanimously. (5-0) B-3 AUTHORIZATION TO SEEK BIDS FOR THE SALE OF CITY -OWNED REAL PROPERTY LOCATED AT CORAUSAN JACINTO, LOT 124, TRACT 1996, MORRO BAY, CALIFORNIA; (CITY ATTORNEY) City Attorney Robert Schultz stated 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. Pursuant to Section 3 742 1, the City Council adopted Resolution No. 30-05 of intention to sell the real property at the SEC Coral/San Jacinto Street. The purpose of this public hearing is to allow for any person to protest the proposed sale. The protest may be written and delivered to the clerk of the legislative body or made orally at ® the meeting considering the final action (Government Code Section 37424.) If the City receives any protests, the City Council may overrule the protests by a four -fifths vote of its members, and may proceed with the sale. If the City Council authorizes staff to seek 7 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — JULY 25, 2005 bids, it will do so. If any bids are received, they will be brought to the City Council in Closed Session to instruct the real property negotiator. If negotiations are successful, any final sale will have to be approved in Open Session. Mr. Schultz recommended the City Council authorize staff to seek bids for the sale of real property located at SEC Coral/San Jacinto Street, Morro Bay, California. Mayor Peters opened the hearing for public comment. Graham Paske stated he encourages the sale of the property as the -money can go towards a North Morro Bay Fire Department. Mayor Peters closed the public comment hearing. Councilmember DeMeritt expressed concern with being able to protect the trees on this property. She is also concerned with North Morro Bay having a fire station, and would like to see at least a staffed engine and a paramedic unit. Councilmember DeMeritt stated she would like to ensure some of the funds from the potential sale be used for the refurbishing of a north station and not just help repair the Harbor Street station. ® Councilmember Winholtz read a letter written by Jim Nance that recommended the City hold a community public workshop addressing multiple questions he has before putting the lot up for sale. MOTION: Councilmember DeMeritt moved to authorize staff to seek bids to sell the real property located at the SEC Coral/San Jacinto Street in Morro Bay. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) C. UNFINISHED BUSINESS C-1 CONSIDERATION OF PROJECT REGARDING NEW REVENUE PROGRAMS; (ADMINISTRATION) City Manager Robert Hendrix stated the City Council has expressed interest in moving forward with a revenue program to fund the Fire Department. At the same time, the City Council recently expressed interest in the general sales tax revenue measure being discussed around the county. The Council also expressed interest in several other revenue generating ideas including forming a redevelopment district. The main purpose of this report is to gauge the City Council's desire to actually move forward in a coordinated fashion on revenue for fire department operating costs (either special tax or ® benefit assessment) and on a general revenue program in the form of a sales tax measure. All of the issues need to be analyzed and considered in a coordinated way because each will have an affect on the others. Mr. Hendrix recommended the City Council discuss the MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — JULY 25, 2005 issues involved in implementing revenue alternatives, and direct the City Manager to secure the expert support needed to analyze these concepts and advise on their feasibility. He further recommended the City Council authorize this project; the preliminary estimate of cost is $50,000. Mayor Peters acknowledged the need to narrow our choices to what we think is appropriate and would give us the best financial response. She said the City should choose to use the professional approach, which could narrow the choices that they survey. Councilmember Peirce stated the City should use professionals to determine which avenue is the direction the City should take. Mayor Peters stated the City should start this educational process right away if we are to be successful in the November 2006 ballot. She said the City should perform a professional, comprehensive survey in order to determine what needs the public -feel strongly about and would be willing to support. Councilmember DeMeritt stated she has concern on where the money for this project will Is surveys from. She said she thinks that Cal Poly interns can be used as a resource to perform the surveys and/or marketing rather than hiring a professional company, and also feels it's important that we follow the County on this. ❑' Councilmember Peirce stated he agrees that we can be reasonably sure that we will need to attempt to raise the sales tax, following the lead of the County. He also said he is concerned with spending that much money when we don't know where it's going to come from, especially when it's a gamble at best. Councilmember Winholtz stated she is open to discussion on the topic but is sensitive to spending this kind of money especially with our current budget situation. Councilmember Baxley stated he feels the City Manger should come back with a proposal with where the money would come from and additional information on what the consultant would do and how much it would cost. He said he feels we need to do something and this seems the best way to do it. Mayor Peters stated this is putting out money, but the only way to get more income is to increase something somewhere. She said it is important to join this County -wide effort, and she feels getting a firm that's an expert in this area would take us further and be more technically beneficial. V, MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — JULY 25, 2005 MOTION: Councilmember Baxley moved the City Council direct staff to report and provide recommendations on using professional survey techniques to plan for new revenue programs. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) D. NEW BUSINESS D-1 DISCUSSION ON FORMULATING AN E-MAIL POLICY; (CITY COUNCIL) ACTION: This item was continued to the August 8, 2005 City Council meeting. P ope1I:7.IuIDI►YY The meeting adjourned at 10:40pm Recorded by: Jamie Boucher Deputy City Clerk C 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 — JULY 11, 2005 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 he 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 MINUTES FOR THE JUNE 27, 2005 REGULAR MEETING; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 AUTHORITY TO FILL VACANT POSITIONS ADOPTED WITH THE 2005- 2006 BUDGET; (ADMINISTRATION) RECOMMENDATION: Authorize filling the vacant positions included in the Fiscal Year 2005-2006 Budget. A-3 RESPONSE TO GRAND JURY FINAL REPORT ON CAYUCOS SANITARY ® DISTRICT AND MORRO BAY WASTEWATER TREATMENT PLANT; (PUBLIC SERVICES) E RECOMMENDATION: Receive report for information. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-I APPEAL OF PLANNING COMMISSION DENIAL OF A MIXED -USE AND FIVE LOT RESIDENTIAL COMMUNITY HOUSING PROJECT LOCATED AT 555 MAIN STREET; (PUBLIC SERVICES) RECOMMENDATION: Uphold the Planning Commission determination and deny the appeal; or, approve the appeal, reversing the Planning Commission findings for denial, and consider the project for final action. B-2 APPROVAL OF • SEVEN -LOT SUBDIVISION WITH THE EXISTING CHURCH RETAINED ON THE REMAINDER PARCEL; (PUBLIC SERVICES) RECOMMENDATION: Accept the recommendation of the Planning Commission, and adopt the Mitigated Negative Declaration, approve the Tract Map and Coastal Development Permit. F4 B-3 RESOLUTION NO. 30-05: INTENTION TO SELL CITY -OWNED REAL ® PROPERTY LOCATED AT CORAUSAN JACINTO, LOT 124, TRACT 1996, MORRO BAY, CALIFORNIA; (CITY ATTORNEY) RECOMMENDATION: Adopt Resolution No. 30-05. C. UNFINISHED BUSINESS —NONE. D. NEW BUSINESS D-I CONSIDERATION OF PROJECT REGARDING NEW REVENUE PROGRAMS; (ADMINISTRATION) RECOMMENDATION: Discuss the issues involved in implementing revenue alternatives, and direct the City Manager to secure the expert support needed to analyze these concepts and advise on their feasibility; also, authorize funding for this project in the amount of $50,000. D-2 REPORT ON PLANNING DIVISION WORKLOAD AND ADOPTION OF WORK PROGRAM; (PUBLIC SERVICES) RECOMMENDATION: Establish a temporary freeze on all new additions to the Planning Division work program until the division is fully staffed and new staff is familiar with the plans, policies and regulations; and, consider an isalternative work program when advanced planning activities resume that moves the Subdivision Ordinance and Local CEQA Guidelines up on the priority list. 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. 3 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — JULY 11, 2005 VETERANS MEMORIAL HALL - 6:00 P.M. El r�1 L IJ Mayor Peters called the meeting to order at 6:00 p.m. PRESENT: Janice Peters Mayor Thad Baxley Melody DeMeritt William Peirce Betty Winholtz STAFF: Robert Hendrix Andrea Lueker Robert Schultz Bridgett Bauer Rick Algert Bruce Ambo Frank Cunningham John DeRohan Bruce Keogh Jim Koser Mike Pond Mike Prater ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR'S REPORTS & ANNOUNCEMENTS CLOSED SESSION REPORT —NONE. Iawn 0celKi7kILVAwoII Councilmember Councilmember Councilmember Councilmember City Manager Assistant City Manager City Attorney City Clerk Harbor Director Public Services Director City Engineer Police Chief Wastewater Treatment Plant Manager Finance Director Fire Chief Senior Planner Karen Sweeney, Recreation & Parks Department, announced the results of the Rock to Pier Run. Betty Forsythe announced Christmas in July would be held at the library on July 16th to help support the Morro Bay Library. Louise Barkus expressed her support of the Morro Bay Fire Department, and requested the City take a stronger stand on weed abatement. Ann Reeves addressed health insurance for all Californians (SB 840). ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JULY 11, 2005 Lynda Merrill addressed Item D-1 (Consideration of Project Regarding New Revenue Programs) and requested information on funding. She also referred to Item D-2 (Report on Planning Division Workload and Adoption of Work Program) and requested Council use caution when reviewing this change in policy. David Nelson expressed concern with the approval of condominiums in a commercial district. He said he is also concerned that funding was not budgeted for the City's infrastructure. Mr. Nelson also expressed concern with the City's agreement with Duke Energy. Keith Taylor thanked Council for their support of the Fire Department. Roger Ewing addressed Item•D-1 stating until there is a balanced budget, Council should delay approving the hiring of a consultant. John Barta, Morro Bay Merchant's Association, addressed how the City benefits from the Merchants Street Faires. ® Ken Vesterfelt addressed the vehicle abatement program stating the problem is growing, and he requested the City Council consider funding for the removal of abandoned vehicles. He also reviewed the police department statistics over the weekend. Mayor Peters closed the hearing for public comment. DECLARATION OF FUTURE AGENDA ITEMS Councilmember Winholtz requested the discussion of the Planning Commission's determination on open space; Mayor Peters and Councilmember DeMeritt concurred. Councilmember Winholtz requested the consideration of a policy reviewing department head contracts; Mayor Peters and Councilmember DeMeritt concurred. Councilmember DeMeritt requested a public hearing on creek bed clearing; Mayor Peters and Councilmember Winholtz concurred. E MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — JULY 11, 2005 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 JUNE 27, 2005 REGULAR MEETING; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 AUTHORITY TO FILL VACANT POSITIONS ADOPTED WITH THE 2005- 2006 BUDGET; (ADMINISTRATION) RECOMMENDATION: Authorize filling the vacant positions included in the Fiscal Year 2005-2006 Budget. A-3 RESPONSE TO GRAND JURY FINAL REPORT ON CAYUCOS SANITARY DISTRICT AND MORRO BAY WASTEWATER TREATMENT PLANT; ® (PUBLIC SERVICES) t RECOMMENDATION: Receive report for information. Councilmember Winholtz pulled Item A-3 of the Consent Calendar. MOTION: Councilmember Peirce moved the City Council approve Items A-1 and A- 2 of the Consent Calendar. The motion was seconded by Councilmember Baxley and carried unanimously. (5-0) A-3 RESPONSE TO GRAND JURY FINAL REPORT ON CAYUCOS SANITARY DISTRICT AND MORRO BAY WASTEWATER TREATMENT PLANT; (PUBLIC SERVICES) Councilmember Winholtz asked if the City would receive the San Luis Obispo County responses to the findings and recommendations in the Grand Jury Final Report. She stated part of the findings was the fact that the City does distribute a million gallons of water into the ocean that could be reclaimed. Councilmember DeMeritt requested an update on the Wastewater Treatment Plant upgrade; Wastewater Treatment Plant Manager Bruce Keogh responded with information on the upgrade to the treatment plant. 3 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JULY 11, 2005 MOTION: Councilmember Winholtz moved the City Council approve Item A-3 of the Consent Calendar. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) Mayor Peters called for a break at 6:50 p.m.; the meeting resumed at 7:00 p.m. B. PUBLIC HEARINGS, REPORTS & APPEARANCES B-I APPEAL OF PLANNING COMMISSION DENIAL OF A MIXED -USE AND FIVE LOT RESIDENTIAL COMMUNITY HOUSING PROJECT LOCATED AT 555 MAIN STREET; (PUBLIC SERVICES) Senior Planner Mike Prater stated the applicant is requesting approval of a Tentative Tract Map, Conditional Use Permit and Coastal Development Permit to subdivide the westerly lots into five parcels for a Community Housing Project with exceptions to common open space. The proposed project will also develop the easterly lots with two commercial buildings totaling approximately 1,800 square feet along Main Street in conjunction with a total of 16 one -bedroom apartment units. The applicant wishes to ® provide affordable housing under SB 1818 to qualify for a density bonus and concessions. The applicant is proposing two affordable units at the Very -Low. Income Level, which qualifies the project for a density bonus for which they are entitled to a 32.5% density bonus, revised standards for the type and number of parking spaces, and two additional concessions or incentives from the City. The applicant submitted a letter describing the two concessions requested as: 1) a waiver of the common open space requirement; and 2) a waiver of the parking design standards. The project requires the City Council to decide if the uses proposed are consistent with the ordinance and compatible with the neighborhood. Mr. Prater recommended the City Council uphold the Planning Commission's determination and deny the appeal; or; approve the appeal, reversing the Planning Commission findings for denial and consider the rest of the project for final action. \JJ Mayor Peters opened the hearing for public comment. George Garcia, representing the applicant/appellant, reviewed the project overview, affordable housing incentives (SB 1818) and points of appeal. The following people expressed opposition to the Mixed -Use and Five Lot Residential Community Housing Project proposed at 555 Main Street: Roger Ewing, Priscilla Ko, Lynda Merrill, Norman MacTaggart, Dorothy Cutter, and George Contento. 4 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JULY 11, 2005 The following people expressed support for the Mixed -Use and Five Lot Residential Community Housing Project proposed at 555 Main Street: Louise Tucker and Ken Vesterfelt. George Garcia, representing the applicant/appellant, reviewed the parking requirements, density of the project, and the ratio of the residential/commercial mix.' Mayor Peters closed the public comment hearing. Councilmember Winholtz expressed concern with the removal of visitor -serving commercial uses. Councilmember Baxley stated the 10.4% ratio of commercial mix is too low. Councilmember DeMeritt stated she has concerns with the upstairs units, and the lack of •a baseline percentage for residential/commercial mix projects. MOTION: Councilmember DeMeritt moved the City Council uphold the Planning ® Commission's determination and deny the appeal without prejudice. The motion was seconded by Councilmember Winholtz. Councilmember Peirce stated he would prefer a 24% ratio of commercial/residential mix. Mayor Peters stated the ideal visitor -serving use would be motel rooms or a bed & breakfast. Councilmember Baxley stated he does not like the middle of the project where they are proposing 2-story single bedroom apartments, which is causing a problem with parking. He suggested reducing the floor space for that section of the project. VOTE: The motion carried with Councilmember Peirce voting no. (4-1). MOTION: Councilmember Baxley moved the City Council reduce the amount of square footage in the single bedroom apartments in the center of the complex to reach a 25% commercial ratio, and encourage Commercial Visitor Serving uses. The motion was seconded by Councilmember DeMeritt and carried with Councilmember Peirce and Mayor Peters voting no. (3-2) Mayor Peters called for a break at 8:32 p.m.; the meeting resumed at 8:48 p.m. C F7 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JULY 11, 2005 B-2 APPROVAL OF SEVEN -LOT SUBDIVISION WITH THE EXISTING CHURCH RETAINED ON THE REMAINDER PARCEL; (PUBLIC SERVICES) Councilmember Winholtz stepped down from this item due to her participation in the Estero Bay United Methodist Church. Senior Planner Mike Prater stated on June 6, 2005, the Planning Commission considered the subject Coastal Development Permit and Tract Map applications at a regularly scheduled public hearing. After considering public testimony, the Commission voted unanimously to tentatively approve a recommendation to the City Council to grant the applications and tract map, and directed staff to return with the necessary findings and conditions of approval. On June 20, 2005, the Planning Commission reviewed and approved the amended findings and conditions of approval. The purpose for the City Council's review of this project is that creating five or more parcels requires a Tract Map approval, which requires City Council action. This proposal would create seven parcels with one remainder parcel. After some discussion, the Planning Commission added the Conditions of Approval for the applicant to amend the Tract Map to include a cul-de-sac ® with parking and sidewalks to the residential parcels and require all parcels to be a minimum of 6,000 square feet in gross area. Mr. Prater recommended then City Council accept the recommendation of the Planning Commission and adopt the Mitigated Negative Declaration, approve the Tract Map, and Coastal Development Permit. Ch J Mayor Peters opened the hearing for public comment. Mike Armstrong, representing the applicant, reviewed the filing process and details of the project. He said the subdivision map before Council is a result of input from the City Public Services and Public Safety Departments. Mr. Armstrong stated the City Engineer would like the road extension and Public Safety would like access to the road, and the church would like to maintain their parking. Mr. Armstrong stated the result of these options was a Knox, box and gate at the end of parking lot, and a pedestrian walkway through the property. Pam Jardine, representing the applicant, recapped points discussed by the Planning Commission. Phyllis Borghart stated she is opposed to extending Sequoia Street due to liability purposes. 0 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JULY 11, 2005 Louise Tucker stated the plans are consistent with the neighborhood, and there is ample open space surrounding this project. She requested Council not extend Sequoia Street and take away the church parking lot. Sue Melvin expressed support for the Planning Commission's recommendations for this project, especially relating to the Sequoia Street extension. She said this street has been opened twice within the past 25 years, and has been closed due to traffic problems. Hilary Saner stated this project is good for the church community as well as the community as a whole. She said the plans submitted with the guidance of City staff reflect safety and improved access, which will benefit the community. Ms. Saner requested the City Council approve the clustering concept of this subdivision map. Mayor Peters closed the public comment hearing. Mayor Peters called for a break at 9:55 p.m.; the meeting resumed at 10:05 p.m. MOTION: "Mayor Peters moved the City Council continue to have Sequoia Street ® blocked off with a Knox box for emergency access. The motion was seconded by Councilmember DeMeritt and carried with Councilmember Winholtz abstaining. (4-0-1) MOTION: Councilmember Peirce moved the City Council allow the use of a hammerhead instead of a cul-de-sac. The motion was seconded by Councilmember DeMeritt and carried with Councilmember Winholtz abstaining.(4-0-1) MOTION: Councilmember Peirce moved the City Council continue the public hearing approving the seven -lot subdivision with the existing church retained on the remainder parcel to the August 8, 2005 City Council meeting. The motion was seconded by Councilmember DeMeritt and carried with Councilmember Winholtz abstaining. (4-0-1) B-3 RESOLUTION NO. 30-05: INTENTION TO SELL CITY -OWNED REAL PROPERTY LOCATED AT CORALSAN JACINTO, LOT 124, TRACT 1996, MORRO BAY, CALIFORNIA; (CITY ATTORNEY) City Attorney Robert Schultz stated the City obtained ownership of the property at the comer of Coral and San Jacinto Streets in September 1996. At the time of the dedication, the property was a possible site of an additional fire station. However, other alternative ® sites have been found and the City finds that it has no need for the above property; 7 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JULY 11, 2005 accordingly, the City would like to sell this 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 Resolution No. 30-05 is to allow for any person to protest the proposed sale. The protest may be written and delivered to the clerk of the legislative body or orally at the meeting considering the final action. If no protests are received, or if the legislative body overrules the protests by a 4/5 vote of its members, it may proceed with the sale. Mr. Schultz recommended the City Council adopt Resolution No. 30-05 regarding the City's intention to sell City - owned real property located at the comer of Coral and San Jacinto Streets. Mayor Peters opened the hearing for public comment; there being no comments, Mayor Peters closed the public comment hearing. Councilmember DeMeritt suggested amendments to the resolution (second Whereas) as follows: WHEREAS, said property was dedicated to the City as a possible site for a fire substation, any funds derived from the sale shall be dedicated to fire stations. She fiuther recommended removing the second sentence in this paragraph. is MOTION: Councilmember DeMeritt moved the City Council adopt Resolution No. 30-05 noticing the intention to sell city -owned real property located at Coral/San Jacinto, Lot 124, Tract 1996, Morro Bay, California as amended. The motion was seconded by Councilmember Peirce. Mr. Schultz recommended leaving in the second sentence, and adding Councilmember DeMeritt's recommended language at the end of the paragraph. Amended paragraph to read as follows: "WHEREAS, said property was dedicated to the City as a possible site for a fire substation. Subsequently, the City has determined that the property at SEC Coral/San Jacinto Street, Lot 124, Tract 1996, Morro Bay, California, for the common benefit of its citizens is not suited for a fire substation and better locations exist for a fire substation. Any funds derived from the sale shall be dedicated to fire stations; and". Councilmember DeMeritt amended her motion to reflect the City's Attorneys recommended language; and Councilmember Peirce amended his second to the motion. VOTE: The motion carried unanimously. (5-0) C ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JULY 11, 2005 C. UNFINISHED BUSINESS — NONE. D. NEW BUSINESS D-1 CONSIDERATION OF PROJECT REGARDING NEW REVENUE PROGRAMS; (ADMINISTRATION) This item was continued to the July 25, 2005 City Council meeting. D-2 REPORT ON PLANNING DIVISION WORKLOAD AND ADOPTION OF WORK PROGRAM; (PUBLIC SERVICES) Public Services Director Bruce Ambo stated due to the recent budgeting process, the Planning Manager has retired and there is a vacant Assistant/Associate Planner position, leaving only one planner to handle the majority of the Planning Division workload. Remaining staff from the Building, Public Works and Administrative divisions and the Director are also helping out with daily duties. The planning counter hours for public and applicant assistance has been cut back to four hours per day, four days a week, with no ® walk-in planning assistance available on Fridays. Planning Commission meetings have been reduced from twice a month to once a month due to the difficulty in getting the projects reviewed and the reports written with the heavy caseload of other activities including building plan checks, counter coverage, code enforcement, site inspections, and the advanced planning activities. There are 39 current planning applications submitted for review, in addition to the Advanced Planning Work Program items. Mr. Ambo recommended the City Council establish a temporary freeze on all new additions to the Planning Division work program until the division is fully staffed and new staff is familiar with the plans, policies and regulations; and, consider an alternative work program when advanced planning activities resume that moves the Subdivision Ordinance and Local CEQA Guidelines up on the priority list. MOTION: Councilmember Baxley moved the City Council as follows: 1) establish a temporary freeze on all new additions to the Planning Division work program until the division is frilly staffed and new staff is familiar with the plans, policies and regulations; and, 2) consider an alternative work program when advanced planning activities resume that moves the Subdivision Ordinance and the local CEQA guidelines up on the priority list with amendments to the priority list as discussed by Council. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) Lu ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JULY 11, 2005 ADJOURNMENT The meeting adjourned at 10:45 p.m. Recorded by: by: \ `Q....dC q I.OtI� Bridgett Boauer City Clerk El If 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 — JUNE 27, 2005 CLOSED SESSION — JUNE 27, 2005 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 negotiators regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property. • Property: Lease Site: Outfall Line Negotiating Parties: City and Duke Energy Negotiations: Lease Terms and Conditions Property: One Acre Land at the Comer of Jacinto Street and SRI Negotiating Parties: City and Keyoto-Morro Bay, Inc. Negotiations: Sale Terms CS-2 GOVERNMENT CODE SECTION 54957.6; CONFERENCE WITH LABOR NEGOTIATOR. Conference with the City Manager, the City's Designated Representative, for the purpose of reviewing the City's position regarding salaries, salary schedules, or compensation paid in the form of fringe benefits, and giving instruction to the Designated Representative. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. 11 ® PUBLIC SESSION — JUNE 27, 2005 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 HI PA ® 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 JUNE 13, 2005 REGULAR MEETING; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 INVESTMENT REPORT FOR MAY 2005; (FINANCE) RECOMMENDATION: Receive report for information. A-3 ORDINANCE NO. 510 AMENDING MORRO BAY MUNICIPAL CODE §8.16 REGARDING ESTABLISHING PROCEDURES FOR COLLECTION OF SOLID WASTE FEES FROM DELINQUENT RATE PAYERS - SECOND READING AND ADOPTION; (ADMINISTRATION) RECOMMENDATION: Approve second reading and adoption of Ordinance No. 510. B. PUBLIC HEARINGS. REPORTS & APPEARANCES ® B-1 RESOLUTION NO.27-05 DIRECTING THE LEVY OF THE ANNUAL ASSESSMENT FOR THE CLOISTERS LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT; (RECREATION & PARKS) RECOMMENDATION: Adopt Resolution No. 27-05. B-2 RESOLUTION NO. 28-05 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. 28-05 B-3 CONTINUATION OF BUDGET WORKSHOP OF JUNE 9, 2005 WITH REPORT IN RESPONSE TO CITY COUNCIL DIRECTIVES AND ACTIONS TO DATE; (FINANCE) RECOMMENDATION: Discuss and direct staff accordingly. is C. UNFINIS14IED BUSINESS ® C-1 RESOLUTION NO. 29-05 ADOPTING FISCAL YEAR 2005-2006 BUDGET AS AMENDED; (FINANCE) RECOMMENDATION: Adopt Resolution No. 29-05. C-2 REVIEW AND ADOPTION OF THE VISION 20/20 REPORT; . (ADMINISTRATION) RECOMMENDATION: Review and adopt Vision 20/20 Report. D. NEW BUSINESS D-1 CONSIDERATION OF UNITED NATIONS ENVIRONMENTAL PROGRAM "GREEN CITIES DECLARATION"; (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. 0 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 CLOSED SESSION — JUNE 27, 2005 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Peters called the meeting to order at 5:00 p.m PRESENT: Janice Peters Mayor Thad Baxley Councilmember Melody DeMeritt Councilmember William Peirce Councilmembcr Betty Winholtz Councilmember STAFF: Robert Hendrix City Manager Robert Schultz City Attorney CLOSED SESSION MOTION: Councilmember Peirce moved the meeting be adjoumed.to Closed Session. The motion was seconded by Councilmember Baxley and unanimously carried. (5-6) Mayor Peters read the Closed Session Statement. ® CS-1 GOVERNMENT CODE SECTION 54956.8; REAL PROPERTY TRANSACTIONS. Instructing City's real property negotiators regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property. • Property: Lease Site: Outfall Line CS-2 Negotiating Parties: City and Duke Energy Negotiations: Lease. Terms and Conditions Property: One Acre Land at the Corner of Jacinto Street and SRI Negotiating Parties: City and Keyoto-Morro Bay, Inc. Negotiations: Sale Terms NEGOTIATOR. Conference with the City Manager, the City's Designated Representative, for the purpose of reviewing the City's position regarding salaries, salary schedules, or compensation paid in the form of fringe benefits, and giving instruction to the Designated Representative. The meeting adjourned to Closed Session it 5:00 p.m. and returned to regular session at 6:00 p.m. MOTION: Councilmember Peirce moved the meeting be adjourned. The motion was seconded by Councilmember Baxley and unanimously carried. (5-0) 0 The meeting adjourned at 6:00 p.m. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 27, 2005 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Peters called the meeting to order at 6:00 p.m. PRESENT: Janice Peters Mayor Thad Baxley Councilmember Melody DeMeritt Councilmember William Peirce Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix City Manager Andrea Lueker Assistant City Manager Robert Schultz City Attorney Bridgett Bauer City Clerk Rick Algert Harbor Director Bruce Ambo Public Services Director Janeen Burlingame Management Analyst John DeRohan Police Chief Mike Pond Fire Chief Jim Koser Finance 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 on Item CS-1 (outfall line) and Item CS-2; Council did take action on Item CS-1 (One Acre Land at the Comer of Jacinto Street and SRI) by unanimously voting to bring forth a resolution to place this property for sale. PUBLIC COMMENT Candace Vittitow stated there would be a yard sale on Saturday July 2nd at King and Pacific Streets, and all proceeds will go towards the "Save the Park" fund. Ken Switrus requested citizens bring donations to the yard sale to help preserve the historic State Park. He also expressed concern with the planting of oak trees along the coastline. Dannie Tope thanked the public for their donations towards the 4'h of July festivities. She also stated the Tides Community Guide is helpful to both citizens and tourists and should be continued. 11J ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 27, 2005 John Bafford stated the Morro Bay Eagles Club would sponsor the annual Easter Egg Hunt next year. Betty Forsythe announced `Be a Helping Hand" volunteer group has been formed to support and promote community events. Karen Sweeney, Recreation & Parks Sports Supervisor, invited the community to upcoming City recreational activities. Lynda Merrill referred to the architectural review of the fire station reviewed by the Planning Commission, and asked Council to act on the improvement of this design. She also shared the 0 of July trolley routes. Brian Stacy expressed concern with the lack of access to public information that affects his fishing business. Roy Kline stated oak trees are found planted along the coastline ® Ed Ewing stated the Cable Liaison Committee office is open to the public, and meetings are publicly posted. He said the fishermen's storage is full and there is a waiting list. Ken Vesterfelt reviewed the police department calls over the weekend. Mandy Davis thanked the City for taking the position in writing a letter to the Department of Fish & Game regarding hunting in the back bay. She requested City representatives attend the Fish & Game meeting when it is in town. Ms. Davis also said she agrees with the Mayor's comments on the 20/20 Vision Report. Phil Hill expressed his respect of the integrity of the City Council and staff. Mayor Peters closed the hearing for public comment. DECLARATION OF FUTURE AGENDA ITEMS Councilmember DeMeritt requested a discussion on formulating an e-mail policy; Councilmember Winholtz and Councilmember Baxley concurred. Mayor Peters called for a break at 6:57 p.m.; the meeting resumed at 7:12 p.m. 3 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 27, 2005 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 JUKE 13, 2005 REGULAR MEETING; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 INVESTMENT REPORT FOR MAY 2005; (FINANCE) RECOMMENDATION: Receive report for information. A-3 ORDINANCE NO. 510 AMENDING MORRO BAY MUNICIPAL CODE §5.16 REGARDING ESTABLISHING PROCEDURES FOR COLLECTION OF SOLID WASTE FEES FROM DELINQUENT RATE PAYERS - SECOND READING AND ADOPTION; (ADMINISTRATION) is RECOMMENDATION: 'Approve second reading and adoption of Ordinance No. 510. MOTION: Councilmember Winholtz moved the City Council approve the Consent Calendar. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 RESOLUTION NO.27-05 DIRECTING THE LEVY OF THE ANNUAL ASSESSMENT FOR THE CLOISTERS LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT; (RECREATION & PARKS) Assistant City Manager Andrea Lueker stated at the May 23, 2005 City Council meeting, the Council adopted Resolution No. 23-05 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. The County Assessor will collect the assessment projected at $1,241.20 per assessable lot in the Cloisters subdivision. As part of the assessment process, the City ordered the preparation of an Engineer's report, adopted a resolution of intention to levy an assessment, set June 27, 2005 as the hearing date on the proposed levy of assessment, noticed all property owners on record via first class mail of the hearing, and published the notice in the local ® newspaper. The Council must hold a protest/public hearing before considering the levy of C! ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 27, 2005 the annual assessment. By adopting Resolution No. 27-05, $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 hold a public hearing on the annual levy of assessment for the Cloisters Landscaping and Lighting Maintenance Assessment District, and then adopt Resolution No. 27-05 confirming the levy of assessment for Fiscal Year 2005-06. Mayor Peters opened the hearing for public comment. Kerrigan Mayham read a letter from attorney John Belsher in support of the protest to the Cloisters Landscaping And Lighting Maintenance Assessment District. Steve Stevens expressed opposition to this annual assessment. He also read a statement from John Lauffer who also opposes this assessment. Freeman Hall expressed opposition to this annual assessment. Melanie Mayhashared pictures showing that the public at -large uses the Cloister's park. is Mayor Peters closed the public comment hearing. MOTION: Councilmember Baxley moved the City Council adopt Resolution No. 27-05 directing the levy of the annual assessment for the Cloisters Landscaping And Lighting Maintenance Assessment District. The motion was seconded by Councilmember Winholtz and carved unanimously. (5-0) B-2 RESOLUTION NO. 28-05 DIRECTING THE LEVY OF THE ANNUAL ASSESSMENT FOR THE NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT; (RECREATION & PARKS) Assistant City Manager Andrea Lueker stated at the May 23, 2005 City Council meeting, the Council adopted Resolution No. 24-05 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. As part of the assessment process, the City ordered the preparation of an Engineer's report, adopted a resolution of intention to levy an assessment, set June 27, 2005 as the hearing date on the proposed levy of assessment, noticed all property owners on record via first class mail of the hearing, and published the notice in the local ® newspaper. The Council must hold a protest/public hearing before considering the levy of ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 27, 2005 the annual assessment. By adopting Resolution No. 28-05, $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 hold a public hearing on the annual levy of assessment for the North Point Natural Area Landscaping and Lighting Maintenance Assessment District, and then adopt Resolution No. 28-05 confirming the levy of assessment for Fiscal Year 2005-06. Mayor Peters opened the hearing for public comment; there being no comments, Mayor Peters closed the public comment hearing. MOTION: Councilmember Baxley moved the City Council adopt Resolution No. 28-05 directing the levy of the annual assessment for the North Point Natural Area Landscaping and Lighting Maintenance Assessment District. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) B-3 CONTINUATION OF BUDGET WORKSHOP OF JUNE 9, 2005 WITH REPORT IN RESPONSE TO CITY COUNCIL DIRECTIVES AND ACTIONS TO DATE; (FINANCE) ® Finance Director Jim Koser stated on June 9, 2005, the City Council held its second public budget workshop and took the following action: 1) Directed that the savings generated at the May 16a' budget workshop be applied to restore the Fire Department staffing to the same level of staffing as is authorized for the current year. Further, any needed funds in addition to the savings were to be taken from elsewhere in the Fire Department budget; 2) Directed that staff find $12,000 to augment the AGP Video services contract and continue covering all Brown Act meetings in the City; 3) Directed staff to preserve General Fund reserves of $1,250,000 for the one upcoming fiscal year; and 4) Requested further information on several other issues for consideration, at this budget workshop and at future regular business meetings. Mr. Koser stated the General Fund is currently balanced without the use of one-time revenues; all other budgeted funds have been reviewed with no changes. He recommended the City Council receive the background information leading up to this point in budget development; continue the public hearing to provide any additional direction or action; and, direct staff with regard to this matter. Mayor Peters opened the hearing for public comment. LA MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — JUNE 27, 2005 Dan Glessman shared the General Fund Reserves trend at fiscal year end during the past five years. Lynda Merrill stated departments throughout the City are taking cuts. She requested the City Council examine all budget cuts and preserve the superior way of life throughout the various departments. Mary Sponhaltz, Police Department, stated there is no such call as a "throw away" call received by the Police Department. Mayor Peters closed the public comment hearing. Councilmember Baxley stated he is open to use "one-time funds" to save some Recreation & Parks and Police Department losses. MOTION: Councilmember Baxley moved the City Council agree to use "excess proceeds" from the sale of Flippo's Skate Harbor for restoration of Police positions, Recreation & Parks maintenance positions and part-time funds, or ® to increase the reserve. The motion was seconded by Councilmember Peirce. Councilmember DeMeritt stated she would like to put funds into the reserves, perhaps funding %z towards the two departments. VOTE: The motion carried with Councilmember DeMeritt and Councilmember Winholtz voting no. (3-2) Councilmember DeMeritt suggested cutting the police vehicle replacement for both fiscal years. Councilmember Peirce stated he would like to reinstate three police officer positions, but will support a motion to reinstate two officers. MOTION: Councilmember Peirce moved the City Council direct staff to use the proceeds from the sale of Flippo's Skate Harbor to reinstate one corporal and two police officer positions, in the amount of $261,205; and, to restore one Recreation & Parks Maintenance II Worker — Facilities position to full time; restore one Maintenance II Worker — Parks position to half time; and restore part-time funding for the Parks division in the amount of $20, 000 for a total cost of $60,300. The motion was seconded by Councilmember ® Baxley. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 27, 2005 Councilmember Winholtz stated she would not support the motion with more funding going to the Police Department rather than the Recreation & Parks budget. Councilmember DeMeritt stated she would support replacing two police officers, and three Recreation & Parks employees. VOTE: The motion carried with Councilmember DeMeritt and Councilmember Winholtz voting no. (3-2) Mayor Peters called for a break at 8:45 p.m.; the meeting resumed at 8:50 p.m. C. UNFINISHED BUSINESS C-1 RESOLUTION NO. 29-05 ADOPTING FISCAL YEAR 2005-2006 BUDGET AS AMENDED; (FINANCE) Finance Director Jim Koser stated the City Council held two public workshops. The first public workshop was held on the budget on May 16, 2005; the second workshop was held ® on June 9, 2005.' During the workshops, the City Council received input from citizens, staff and representatives from visitor promotion organizations. Adoption of the fiscal year 2005-06 Budget will establish the estimated revenue goals and expenditure limits for the upcoming fiscal year and implement the financial plan of the City. Mr. Koser recommended the City Council adopt Resolution No. 29-05, which formalizes adoption of the budget. C11 MOTION: Councilmember Winholtz moved the City Council direct the City Manager to meet with the bargaining units and the executive management including the City Manager and City Attorney requesting relief from Cost of Living Adjustments (COLA), the savings from which to be applied to restoration of positions. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) MOTION: Councilmember Baxley moved the City Council adopt Resolution No. 29-05 adopting Fiscal Year 2005-2006 Budget as amended. The motion was seconded. by Councilmember Peirce and carried with Councilmember DeMeritt and Councilmember Winholtz voting no. (3-2) N ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 27, 2005 C-2 REVIEW AND ADOPTION OF THE (ADMINISTRATION) VISION 20/20 REPORT; Mayor Peters thanked the Vision 20/20 Committee for their efforts in drafting this report. Council reviewed and made amendments to the Vision 20/20 draft report. MOTION: Councilmember Peirce moved the City Council accept the Vision 20/20 report as modified. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) D. NEW BUSINESS D-I CONSIDERATION OF UNITED NATIONS ENVIRONMENTAL PROGRAM "GREEN CITIES DECLARATION"; (CITY COUNCIL) City Manager Robert Hendrix stated at the June 13, 2005 City Council meeting, Councilmember DeMeritt requested staff provide a report on the "Green Cities Declaration" and "Urban Environmental Accords" approved by 50 mayors of the world's ® largest cities. The Mayors were attending a United Nations World Environmental Day Conference in San Francisco. The document included a set of 21 urban environmental accords. The accords were characterized as pointing the way to a cleaner, greener future for the planet's cities. The accords signers pledged to improve the environment of their cities in seven broad areas: energy, waste reduction, urban design, urban nature, transportation, environmental health and water. According to information about the conference, cities cover two percent of the world's surface, but accommodate 50 percent of the world's population. They consume almost three-quarters of the world's resources. The goal of the United Nations conference was to address in particular those environmental issues facing urban areas including foul air, inadequate and polluted water, traffic gridlock, rampant development, unreliable and unsustainable energy supplies, and toxic emissions. Mr. Hendrix recommended the City Council determine if the "Green Cities Declaration" is representative of City policy and if so, approve the Declaration by motion. In the alternative, the City Council could formulate its own specific action regarding the content of the urban environmental accords. MOTION: Councilmember Peirce moved the City Council send this item to the Public Works Advisory Board to evaluate the City's implementation of the Green Cities Declaration, and report back to the City Council. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) E ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 27, 2005 ADJOURNMENT The meeting adjourned at 9:58 p.m. Recorded by: Bridgett Bauer City Clerk L.� Ell 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 — JUNE 13, 2005 CLOSED SESSION — JUNE 13, 2005 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA CS-1 GOVERNMENT CODE SECTION 54957.6: CONFERENCE WITH is Designated NEGOTIATOR. Conference with the City Manager, the City's Designated Representative, for the purpose of reviewing the City's position regarding salaries, salary schedules, or compensation paid in the form of fringe benefits, and giving instruction to the Designated Representative. CS-2 GOVERNMENT CODE SECTION 54956.8: REAL PROPERTY TRANSACTIONS. Instructing City's real property negotiators regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property. • Property: Lease Site: Whale's Tail; Lease Site 96/96W Negotiating Parties: City and Larry and Ursula Davis Negotiations: Lease Terms and Conditions Property: Lease Site: Outfall Line Negotiating Parties: City and Duke Energy Negotiations: Lease Terms and Conditions IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. C�1 ®. PUBLIC SESSION —NNE 13, 2005 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. is • 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 1] A. CONSENT CALENDAR is Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 MINUTES FOR THE MAY 23, 2005 REGULAR MEETING, AND THE SPECIAL BUDGET WORKSHOP ON MAY 16, 2005; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 AWARD OF CONTRACT FOR PREPARATION OF CONSTRUCTION PLANS AND SPECIFICATIONS FOR HARBORWALK PROJECT; (PUBLIC SERVICES) RECOMMENDATION: Award the contract to RRM Design Group, and authorize the City Manager to execute pertinent contract documents. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 ORDINANCE NO. 510 AMENDING MORRO BAY MUNICIPAL CODE §8.16 REGARDING ESTABLISHING PROCEDURES FOR COLLECTION OF SOLID WASTE FEES FROM DELINQUENT RATE PAYERS - INTRODUCTION AND FIRST READING; (ADMINISTRATION) is No. Approve first reading and introduction of Ordinance No. 510. B-2 PUBLIC HEARING ON A PROPOSED MIXED -USE DEVELOPMENT LOCATED AT 600 MORRO BAY BOULEVARD; (PUBLIC SERVICES) RECOMMENDATION: Accept the recommendation of the Planning Commission and adopt the Mitigated Negative Declaration approving the Tract Map, Conditional Use Permit, Coastal Development Permit, and Parking Exception for this project. B-3 ORDINANCE NO. 509 EXTENDING AN URGENCY INTERIM ORDINANCE PROHIBITING THE ESTABLISHMENT OF MEDICAL MARIJUANA DISPENSARIES; (CITY ATTORNEY) RECOMMENDATION: Adopt Ordinance No. 509. C. UNFINISHED BUSINESS C-1 REVIEW AND ADOPTION OF THE VISION 20/20 REPORT; (CITY COUNCIL) ® RECOMMENDATION: Review and adopt Vision 20/20 Report. itl D. NEW BUSINESS ® D-1 COUNCIL MEMBER REQUEST TO AGENDIZE THE REVIEW OF A LETTER TO FISH & GAME REGARDING HUNTING IN THE BAY; (CITY COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. D-2 RESOLUTION NO. 26-05 ADOPTING PROPOSED LAY-OFF POLICY; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 26-05. D-3 ADOPTION OF REVISED FULL SECONDARY 9-1/2 YEAR TIMELINE DATED MAY 19, 2005, AND SUBMITTAL OF THE REVISED TIMELINE TO THE REGIONAL WATER QUALITY CONTROL BOARD; (PUBLIC SERVICES) RECOMMENDATION: Adopt the "Revised Full Secondary 9-1/2 Year Timeline — Dated May 19, 2005", and direct staff to submit the revised timeline to the Regional Water Quality Control Board. D-4 APPROVAL OF FISCAL YEAR 2005-2006 BUDGET FOR WASTEWATER TREATMENT PLANT; (PUBLIC SERVICES) ® RECOMMENDATION: Approve the Fiscal Year 2005-2006 Budget for the Wastewater Treatment Plant. 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. 13 MINUTES - MORRO BAY CITY COUNCIL ® CLOSED SESSION — JUNE 13, 2005 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Peters called the meeting to order at 5:00 p.m. PRESENT: Janice Peters Mayor STAFF CLOSED SESSION Thad Baxley Melody DeMeritt William Peirce Betty Winholtz Robert Hendrix Robert Schultz Councilmember Councilmember Councilmember Councilmember City Manager City Attorney MOTION: Councilmember Peirce moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember DeMeritt and unanimously carved. (5-0) Mayor Peters read the Closed Session Statement. ® CS -I GOVERNMENT CODE SECTION 54957.6; CONFERENCE WITH LABOR NEGOTIATOR. Conference with the City Manager, the City's Designated Representative, for the purpose of reviewing the City's position regarding salaries, salary schedules, or compensation paid in the form of fringe benefits, and giving instruction to the Designated Representative. CS-2 GOVERNMENT CODE SECTION 54956.8; REAL PROPERTY TRANSACTIONS. Instructing City's real property negotiators regarding the price and terns of payment for the purchase, sale, exchange, or lease of real property. Property: Lease Site: Whale's Tail; Lease Site 96/96W Negotiating Parties: City and Larry and Ursula Davis Negotiations: Lease Terms and Conditions Property: Lease Site: Outfall Line Negotiating Parties: City and Duke Energy Negotiations: Lease Terms and Conditions The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:55 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 5:55 p.m. Ei MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 13, 2005 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Peters called the meeting to order at 6:00 p.m. PRESENT: Janice Peters Mayor Thad Baxley Melody DeMeritt William Peirce Betty Winholtz STAFF: Robert Hendrix Andrea Lueker Robert Schultz Bridgett Bauer Bill Boucher Janeen Burlingame Rick Algert Bruce Ambo John DeRohan Mike Pond Mike Prater Bruce Keogh Jim Koser ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE Councilmember Councilmember Councilmember Councilmember City Manager Assistant City Manager City Attorney City Clerk Capital Projects Manager Management Analyst Harbor Director Public Services Director Police Chief Fire Chief Senior Planner Waste Water Treatment Plant Manager Finance 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 The following people expressed support for hunting in the back bay: Gene Jobe, Fred Harpster, Ken Fryer, Gary Owens, Fred Harpster, Jr., Mark Tognazzini, Dick Sylvester, Mark Van Wagoner, and Bill Cereghino. The following people expressed opposition to hunting in the back bay: Andrew Christie, Joan Carter, Mandy Davis, Frank DeVine, Lynda Merrill, Jack McCurdy, Kara Hagendom, Phil Hill, Sandra Beebe, Richard Boyd, and Roger Ewing. MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — JUNE 13, 2005 Joey Racano addressed Item D-3 (Adoption of Revised Full Secondary 9-1/2 Year Timeline Dated May 19, 2005, and Submittal of the Revised Timeline to the Regional Water Quality Control Board) stated secondary treatment is the mere minimum, and no less than full tertiary treatment should be considered. He also said the sub -committee meeting was held with no public notification, which makes taking action illegal. Candace Vittitow addressed the statistics of annual attendance of the Morro Bay State Park Campground for five years prior to its renovation. She said the Park has been removed from the reservation system for over two years. Ms. Vittitow addressed those who were and were not invited to the ribbon cutting of the State Park. Ken Switrus addressed the history of the Morro Bay State Park Campground, and noted the Park should be officially classified historic so they cannot destroy any more of the historic fabric of our State Park. Lynda Merrill stated the giant chessboard pieces need refurbishing and perhaps a volunteer could assist. Charles Reasor addressed the zoning ordinance review and stated not all Conditional Use Permits should be approved administratively. ® David Weisman addressed the economy brought into the city by hunters vs. non -hunters. Mayor Peters closed the hearing for public comment. Mayor Peters called for a break at 7:10 p.m.; the meeting resumed at 7:25 p.m. DECLARATION OF FUTURE AGENDA ITEMS Mayor Peters requested the consideration of a sales tax increase; Councilmember Baxley and Councilmember Winholtz concurred. Mayor Peters requested the discussion on zoning for medical marijuana dispensaries; Councilmember DeMeritt and Councilmember Winholtz concurred. Councilmember DeMeritt requested the consideration of the United Nations Environmental Program "Green Cities Declaration; Councilmember Winholtz and Mayor Peters concurred. 3 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — JUNE 13, 2005 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 MAY 23, 2005 REGULAR MEETING, AND THE SPECIAL BUDGET WORKSHOP ON MAY 16, 2005; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 AWARD OF CONTRACT FOR PREPARATION OF CONSTRUCTION PLANS AND SPECIFICATIONS FOR HARBORWALK PROJECT; (PUBLIC SERVICES) RECOMMENDATION: Award the contract to RRM Design Group, and authorize the City Manager to execute pertinent contract documents. Mayor Peters pulled Item A-2 from the Consent Calendar. MOTION: Councilmember Winholtz moved the City Council approve Item A-1 of ® the Consent Calendar. The motion was seconded by Councilmember Baxley and carved unanimously. (5-0) A-2 AWARD OF CONTRACT FOR PREPARATION OF CONSTRUCTION PLANS AND SPECIFICATIONS FOR HARBORWALK PROJECT; (PUBLIC SERVICES) Mayor Peters stated she would be stepping down on this item due to a conflict of interest. MOTION: Councilmember Peirce moved the City Council approve Item A-2 of the Consent Calendar. The motion was seconded by Councilmember Baxley and carried with Mayor Peters abstaining. (4-0-1) B. PUBLIC HEARINGS, REPORTS & APPEARANCES B-1 ORDINANCE NO. 510 AMENDING MORRO BAY MUNICIPAL CODE §8.16 REGARDING ESTABLISHING PROCEDURES FOR COLLECTION OF SOLID WASTE FEES FROM DELINQUENT RATE PAYERS - INTRODUCTION AND FIRST READING; (ADMINISTRATION) Management Analyst Janeen Burlingame stated at the City Council's May 9, 2005 meeting, the Council approved the recommendation by the Public Works Advisory Board ® to amend Morro Bay Municipal Code Section 8.16 to include provisions for collection of delinquent charges such as those established for San Luis Obispo and Los Osos. The proposed ordinance would amend the current Solid Waste section of the municipal code 4 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 13, 2005 and outline the process to collect solid waste fees from delinquent ratepayers through the lien process. The process involves the garbage company, once a year, to compile a list of property owners whose accounts are 120 days past due, send a certified letter to property owners with a delinquent account requesting payment by a certain date and notifying the City afterward of those whose accounts are still past due. The City Council will then adopt a resolution authorizing the County Assessor to assess the amounts due on delinquent accounts as liens against the properties. Ms. Burlingame recommended the City Council conduct a public hearing to consider Ordinance No. 510 establishing procedures for collection of solid waste fees from delinquent ratepayers and approve the first reading by title and number only. Mayor Peters opened the hearing for public comment; there being no comments, Mayor Peters closed the public comment hearing. Councilmember Winholtz suggested using language that is used by the City of San Luis Obispo in Morro Bay Municipal Code Section 8.04.070(D). MOTION: Councilmember Baxley moved the City Council approve Ordinance No. 510 establishing procedures for collection of solid waste fees from ® delinquent ratepayers and approve the first reading by title and number only. The motion was seconded by Councilmember Peirce and carried with Councilmember Winholtz voting no. (4-1) B-2 PUBLIC HEARING ON A PROPOSED MIXED -USE DEVELOPMENT LOCATED AT 600 MORRO BAY BOULEVARD; (PUBLIC SERVICES) Senior Planner Mike Prater stated on April 18, 2005, the Planning Commission considered the subject Coastal Development Permit and Parking Exception applications at a regularly scheduled public hearing. After considering public testimony, the Commission voted unanimously to approve the applications. The purpose of the City Council's review of this project is that creating five or more parcels requires a Tract Map approval, which requires Council action. The proposed development would consist of three commercial retail spaces separated by a walkway leading to an open courtyard area in the center of the project. All street frontages would have commercial uses on the ground floor, and residential uses would be situated to the rear of the commercial uses and on the second and partial third floors. The third floor would be set back from the abutting streets as to not be visible to the pedestrian. A subterranean parking garage would contain all of the required residential parking, including guest parking, but a parking exception is requested to allow the applicant to pay in lieu fees for the required commercial parking. The applicant also proposes to subdivide "airspaces" within the building such that the three commercial units and sixteen residential units would be ® separately owned condominiums with exterior spaces, including the courtyard and parking garage, owned in common. This project also includes an affordable component for two units at the moderate -income level. Mr. Prater recommended the City Council 5 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 13, 2005 accept the recommendation of the Planning Commission; adopt the Mitigated Negative Declaration; and, approve the Tract Map, Conditional Use Permit, Coastal Development Permit, and Parking Exception for this project. - Mayor Peters opened the hearing for public comment. Craig Smith, Architect/Agent for the Applicant, reviewed the 24,656 square foot mixed - use project with three commercial retail units on the ground floor and 16 residential units on the second floor and partial third floor. He said the 19 residential and commercial tenancies would be separately owned condominiums, with exterior spaces owned in common. Frank Devine stated the City's Zoning Ordinance states the purpose of the Central Business (C-1) zone is to designate and promote the orderly development of the business district as a central retail shopping facility for the primary market area. He said residential uses include apartments only, when secondary to commercial uses on the rear one half of the property or second story. Mr. DeVine stated this project is in violation of the C-1 zoning law, and approval of this project would set precedence for all future development in the C-1 zone. ® Ray McKelligott stated this is a good project but in the wrong location.. He said the residential portion of this project should be incidental in a commercial zone. Mr. McKelligott stated what the City needs is a good-sized commercial enterprise that will attract people and benefit the local retail shops, restaurants and motels. George Contento stated if this project is approved it would cause the downtown to be re- zoned to residential. He said the C-1 zone allows for residential uses only when secondary to commercial uses on the rear one-half of the property or second story. Mr. Contento stated this project is lacking eleven parking spaces and the required open space. He said if approved, it opens the market for residential uses on Morro Bay Boulevard. Tom Neffer stated this project would be out of place for downtown Morro Bay. Bonnie Lichtenstein requested the City Council not allow the cutting of trees in this. area. Roger Ewing expressed concern with the removal of trees, the high density, and the in - lieu parking fee paid by the applicant. He said he would like to see the whole ground floor used as commercial space. Roy Kline stated the Harbor View Project was denied because it didn't conform to the General Plan's commercial to residential mix, and Coastal Commission requirements. He said approval of this project might invalidate the denial of the Harbor View Project and would set precedence for all future development in the C-1 zone. Mr. Kline stated this project should be denied, as is, because it does not conform to the C-1 zoning requirements. 0 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 13, 2005 Craig Smith, Architect/Agent for the Applicant, reviewed and answered questions brought up by Public Comment. Mayor Peters closed the public comment hearing. Council discussed issues such as architectural design, trees, open space, zoning and in - lieu parking fees. MOTION: Councilmember Baxley moved the City Council accept the recommendation of the Planning Commission; adopt the Mitigated Negative Declaration; and, approve the Tract Map, Conditional Use Permit, and Coastal Development Permit; and that a Parking Exception be made requiring the eleven (11) parking spaces needed for commercial development be accepted as parking in -lieu fees, and that prior to the issuance of a building permit, the parking in -lieu fees shall be paid. The motion was seconded by Councilmember Peirce and failed with Councilmember DeMeritt, Councilmember Winholtz, and Mayor Peters voting no. (2-3) ® MOTION: Mayor Peters moved the City Council as follows: 1) accept the recommendation of the Planning Commission; 2) adopt the Mitigated Negative Declaration; 3) approve the Tract Map, Conditional Use Permit, and Coastal Development Permit; 4) that a Parking Exception be made requiring the eleven (11) parking spaces needed for commercial development be accepted as parking in -lieu fees, and that prior to the issuance of a building permit, the parking in -lieu fees shall be paid; 5) that two units shall be deed restricted for thirty (30) years at the moderate income level; and, 6) that the two trees on site will be preserved. The motion was seconded by Councilmember Baxley. The City Council discussed the mixed -use issues of the project. Councilmember. Baxley called the question. VOTE: The motion carried with Councilmember DeMeritt and Councilmember Winholtz voting no. (3-2) Mayor Peters called for a break at 10:10 p.m.; the meeting resumed at 10:20 p.m. 7 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 13, 2005 B-3 ORDINANCE NO. 509 EXTENDING AN URGENCY INTERIM ORDINANCE PROHIBITING THE ESTABLISHMENT " OF MEDICAL MARIJUANA DISPENSARIES; (CITY ATTORNEY) City Attorney Robert Schultz stated the Police Chief requested an Urgency Interim Ordinance prohibiting the establishment of medical marijuana dispensaries in Morro Bay. He said if the City Council desires to prevent such an establishment, it should adopt Interim Urgency Ordinance No. 509 which would extend the 45-day moratorium for an additional 10 months and 15 days on the establishment of medical marijuana dispensaries in the City of Morro Bay. Mayor Peters opened the hearing for public comment. Roger Ewing stated medical marijuana is used for pain and suffering, and he opposes this ordinance because the Supreme Court has made its determination. Frank DeVine stated medical marijuana does help people in pain Phil Hill stated medical marijuana helped his father who had cancer. ® Tom Neffer stated he supports the medical use of marijuana because it is the compassionate thing to do. Mayor Peters closed the public comment hearing. MOTION: Mayor Peters moved the City Council adopt Interim Urgency Ordinance No. 509 which would extend the 45-day moratorium for an additional 10 months and 15 days on the establishment of medical marijuana dispensaries in the City of Morro Bay. The motion was seconded by Councilmember Baxley and failed with Councilmember DeMeritt and Councilmember Winholtz voting no. (3-2) This motion failed because it did not receive the required 4/5 vote. C. UNFINISHED BUSINESS C-1 REVIEW AND ADOPTION OF THE VISION 20/20 REPORT; (CITY COUNCIL) This item was continued to the June 27, 2005 City Council meeting. 13 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — JUNE 13, 2005 D. NEW BUSINESS D-1 COUNCIL MEMBER REQUEST TO AGENDIZE THE REVIEW OF A LETTER TO FISH & GAME REGARDING HUNTING IN THE BAY; (CITY COUNCIL) Councilmember Winholtz stated several months ago the City Council considered whether to make comment to the California Department of Fish and Game regarding local waterfowl hunting regulations on the estuary. At that time the Council declined to offer comment, wanting evidence of support for a change in the regulations. Since that time, Council has received ongoing public comment and information regarding local hunting. The Fish and Game Commission is scheduled to meet on Friday, June 24 specifically to receive waterfowl recommendations. At their following meeting on August 19'h, the Commission is scheduled to meet in San Luis Obispo specifically to adopt waterfowl regulations. Councilmember Winholtz stated this is the only window of opportunity for Council to have any input this year, and recommended Council review the proposed letter to the Department of Fish and Game regarding waterfowl hunting regulations on the estuary. ® MOTION: Councilmember Baxley moved to send the revised letter to the Department of Fish and Game regarding waterfowl hunting regulations on the estuary. The motion was seconded by Councilmember DeMeritt and carried with Councilmember Peirce voting no. (4-1) D-2 RESOLUTION NO. 26-05 ADOPTING PROPOSED LAY-OFF POLICY; (ADMINISTRATION) City Manager Robert Hendrix stated the proposed City budget contains reductions in permanent City positions. The elimination of these positions may result in displacement or layoff of permanent City employees. Existing City policy is limited in its scope leaving matters of seniority and access to previously held positions, open to interpretation. The policy as proposed has been discussed with the employee organizations and no further objections remain to its content. Mr. Hendrix recommended the City Council adopt Resolution No. 26-05 adopting amendments and additions to the City of Morro Bay Personnel Rules and Regulations and Rescinding Rules and Regulations in conflict therewith. MOTION: Councilmember Peirce moved the City Council adopt Resolution No. 26- 05 adopting amendments and additions to the City of Morro Bay Personnel Rules and Regulations and Rescinding Rules and Regulations in conflict therewith. The motion was seconded by Councilmember Baxley ® and carried unanimously. (5-0) 0 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — JUNE 13, 2005 D-3 ADOPTION OF REVISED FULL SECONDARY 9-1/2 YEAR TIMELINE DATED MAY 19, 2005, AND SUBMITTAL OF THE REVISED TIMELINE TO THE REGIONAL WATER QUALITY CONTROL BOARD; (PUBLIC SERVICES) Wastewater Treatment Plant Manager Bruce Keogh stated at the May 19, 2005 JPA meeting, Carollo Engineers presented a revised timeline of 9-1/2 years for upgrading the Wastewater Treatment Plant to either full secondary treatment or partial tertiary treatment. Following Council and District Board discussion of the timeline, the Council and District Board were prepared to adopt the 9-1/2 year timeline. However, due to an administrative error in the preparation of the agenda for the May 19th meeting, the language "and consideration to adopt' had been inadvertently omitted from the agenda title. It was decided that the Council and District Board could not take action on this item, and following a brief discussion, the Council and District Board agreed to adopt the timeline at their next respective regular meetings. Following adoption of the timeline by the two bodies, the timeline will be submitted to the Regional Water Quality Control Board. Mr. Keogh recommended the City Council adopt the "Revised Full Secondary 9- 1/2 Year Timeline — dated May 19, 2005", and that the Council direct staff to submit the Revised Timeline to the Regional Water Quality Control Board. ® MOTION: Councilmember Baxley moved the City Council adopt the "Revised Full Secondary 9-1/2 Year Timeline — dated May 19, 2005", and .that the Council direct staff to submit the Revised Timeline to the Regional Water Quality Control Board. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) D-4 APPROVAL OF FISCAL YEAR 2005-2006 BUDGET FOR WASTEWATER TREATMENT PLANT; (PUBLIC SERVICES) This item was continued to the June 27, 2005 City Council meeting. ADJOURNMENT The meeting adjourned at 11:00 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. SPECIAL MEETING — JUNE 9, 2005 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER PLEDGE OF ALLEGIANCE EXPLANATION OF AGENDA PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on the City budget 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 one minute. • 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 anyelectedofficial, 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) 712-6205. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure ® accessibility to this meeting. ® STAFF COMMENTS ON BUDGET INCLUDING ISSUES PREVIOUSLY IDENTIFIED AND ANY NEW INFORMATION COUNCIL QUESTIONS AND DISCUSSION DIRECTION TO STAFF REGARDING COUNCIL PRIORITIES ON THE FOLLOWING AND OTHER ISSUES THAT MAY ARISE: • Fire Department Staffing • Police Department Staffing • Public Services Department Staffing • Recreation & Parks Department Staffing • Use of Profit from Sale of Flippo's • Harbor Department Considerations (Parking Lot; Transfer of Staff Position) • Promotion/Economic Development Structure • AGP Contract • Amount of Reserve to Maintain ® • Community Event Support or Cancellation (4th of July, Lighted Boat Parade, Easter Egg Hunt, Christmas Tree Lighting, City Parade, Etc.) ADJOURNMENT Ll 2 2 City of Morro Bay Morro Bay, CA 93442 • 805-772-6200 www.morro-bay.ca.us NOTICE OF SPECIAL MEETING NOTICE IS HEREBY GIVEN that the Morro Bay City Council will be holding a Special Meeting on Thursday, June 9, 2005 at 6:00 P.M. to be held in the Veterans' Memorial Building, 209 Surf Street, Morro Bay, California. The City Council will be discussing the Fiscal Year 2005/2006 Budget. 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. DATED: June 6, 2005 V. r Im7mr g:. FINANCE 595 Harbor Street ADi\11NISTRATION 595 Harbor Street FIRE DEPARTMENT 715 Harbor Street PUBLIC SERVICES 955 Shasta Street HARBOR DEPARTMENT 1275 Embarcadero Road CITY ATTORNEY 955 Shasta Avenue POLICE DEPARTMENT 850 Morro Bay Boulevard RECREATION AND PARKS 1001 Kennedy Way City of Morro Bay Morro Bay, CA 93442 • 805-772-6200 www.morro-bay.ca.us NOTICE OF SPECIAL MEETING NOTICE IS HEREBY GIVEN that the Morro Bay City Council will be holding a Special Meeting on Tuesday, June 7, 2005 at 6:00 p.m. to be held in the Veterans' Memorial Building, 209 Surf Street, Morro Bay, California. The City Council will be considering the Planning Commission ® recommendation on the proposed update to the Zoning Ordinance, Zoning Map and accompanying Negative Declaration. r❑ 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. DATED: June 1, 2005 Bridgett B er, City Clerk FINANCE 595 Harbor Street ADMINISTRATION 595 Harbor Street FIRE DEPARTMENT 715 Harbor Street PUBLIC SERVICES 955 Shasta Street HARBOR DEPARTMENT CITY ATTORNEY POLICE DEPARTMENT 1275 Ernbarcadero Road 955 Shasta Avenue 850 Morro Bay Boulevard RECREATION AND PARKS 1001 Kennedy Way ® 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. 0 CS-1 REGULAR MEETING — MAY 23, 2005 CLOSED SESSION — MAY 23, 2005 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA LABOR NEGOTIATOR. Conference with the City Manager, the City's Designated Representative, for the purpose of reviewing the City's position regarding salaries, salary schedules, or compensation paid in the form of fringe benefits, and giving instruction to the Designated Representative. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. ® PUBLIC SESSION — MAY 23, 2005 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 MINUTES FOR THE MAY 9, 2005 REGULAR MEETING, AND MARCH 30 AND MAY 4, 2005 ZONING ORDINANCE WORKSHOPS; (ADMINISTRATION/ PUBLIC SERVICES) RECOMMENDATION: Approve as submitted. A-2 CASH & INVESTMENT REPORT FOR APRIL 2005; (FINANCE) RECOMMENDATION: Receive report for information. A-3 ORDINANCE NO. 507 TO AMEND THE LOCAL COASTAL PROGRAM AND ZONING ORDINANCE (MBMC TITLE 17) RELATING TO THE SECOND DWELLING UNIT/GUEST HOUSE PROVISIONS WITHIN THE CITY LIMITS OF MORRO BAY -SECOND READING/ADOPTION; (PUBLIC SERVICES) RECOMMENDATION: Approve second reading and adoption of Ordinance No. 507. A-4 AUTHORIZATION TO FILE NOTICE OF COMPLETION FOR THE ROCK RESTROOM REPLACEMENT PROJECT; (PUBLIC SERVICES) RECOMMENDATION: Accept the Project as completed by Thiessen Construction, and authorize the filing of the Notice of Completion. A-5 ACCEPTANCE OF LETTER OF RESIGNATION FROM PARKS & RECREATION COMMISSIONER; (ADMINISTRATION) RECOMMENDATION: Accept letter of resignation, and authorize the City Clerk to advertise the vacancy on the Recreation & Parks Commission. A-6 PROCLAMATION DECLARING JUNE 6 & 7, 2005 AS "SPECIAL OLYMPICS — LAW ENFORCEMENT TORCH RUN DAYS'; (ADMINISTRATION) . RECOMMENDATION: Adopt Proclamation. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 RESOLUTION NO. 23-05 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) RECOMMENDATION: Adopt Resolution No. 23-05. ] N ® B-2 RESOLUTION NO. 24-05 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. 24-05. B-3 RESOLUTION NO. 25-05 AMENDING THE MASTER FEE SCHEDULE FOR KITCHEN USE FEES AND APPROVING THE KITCHEN USE POLICY CHANGES; (RECREATION & PARKS) RECOMMENDATION: Adopt Resolution No. 25-05. C. UNFINISHED BUSINESS C-1 CONSIDERATION OF DIRECTIONAL SIGNAGE PROGRAM; (PUBLIC SERVICES) RECOMMENDATION: Discuss and direct staff accordingly. D. NEW BUSINESS D-1 AUDIT REPORT FOR FISCAL YEAR 2003-2004; (FINANCE) ® RECOMMENDATION: Receive report from Auditor, and accept the Fiscal Year 2003-2004 Financial Audit Report. D-2 REVIEW OF THE CITY PRIVATE TREE ORDINANCE; (PUBLIC SERVICES) RECOMMENDATION: Discuss and direct staff accordingly. D-3 DISCUSSION ON SCHEDULING AN ADDITIONAL BUDGET WORKSHOP; (ADMINISTRATION) RECOMMENDATION: Discuss and direct staff accordingly. DA REVIEW OF COUNCIL DECISION TO SELL OLD TROLLEY; (CITY COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. E. ADJOURNMENT 4 ® 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. C 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 — MAY 23, 2005 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Peters 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 Hendrix City Manager Robert Schultz City Attorney C CLOSED SESSION MOTION: Councilmember Peirce moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Baxley and unanimously carried. (5-0) Mayor Peters read the Closed Session Statement. CS-1 LABOR NEGOTIATOR. Conference with the City Manager, the City's Designated Representative, for the purpose of reviewing the City's position regarding salaries, salary schedules, or compensation paid in the form of fringe benefits, and giving instruction to the Designated Representative. The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:30 p.m. MOTION: Councilmember Winholtz moved the meeting be adjourned. The motion was seconded by Councilmember DeMeritt and unanimously carried. (5-0) The meeting adjourned at 5:30 p.m. MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — MAY 23, 2005 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Peters called the meeting to order at 6:00 p.m. PRESENT: Janice Peters Mayor Thad Baxley Melody DeMeritt William Peirce Betty Winholtz STAFF: Robert Hendrix Robert Schultz Bridgett Bauer Rick Algert Bruce Ambo Bill Boucher Frank Cunningham John DeRohan Mike Pond Mike Prater Jim Koser Andrea Lueker ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR'S REPORTS & ANNOUNCEMENTS Councilmember Councilmember Councilmember Councilmember City Manager City Attorney City Clerk Harbor Director Public Services Director Capital ,Projects Manager City Engineer Police Chief Fire Chief Associate Planner Finance Director Recreation & Parks Director 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 Susan Heinemann expressed support for Item C-I (Consideration Of Directional Signage Program), and stated updating the signage is a positive move since the present directional signs are not tourist -friendly. Keith Taylor, Friends of the Fire Department, requested the City Council consider a benefit assessment district to help find the Fire Department. He also requested Council approve the latest deal with Duke Energy because it is as good as it is going to get. 11 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — MAY 23, 2005 Bob Tefft shared information from the 2002 United States Economic Census showing retail sales tax in San Luis Obispo and Santa Barbara Counties, and the transient occupancy tax trend in the State of California. He requested the City Council consider the importance of developing areas to benefit the economic future of the City. Heather Salyer -Frith addressed lay-offs and removal of programs in the City, and requested the Council consider the entire community when reviewing the budget. David Weisman reviewed the economic differences between hunters and those who come to the City to enjoy watching the wildlife, and noted tourists who come to enjoy the wildlife spend more money while visiting the City. Mandy Davis read a letter that referenced the change of regulations in regards to hunting in the back bay. Phil Hill stated his family is visiting and will be spending money in Mono Bay; his nephews however will not kayak while hunting is going on in the back bay. Frank DeVine apologized for a statement he made that was inaccurate. ® Ken Vesterfelt reported on police and fire activity in a 48-hour period. He also stated Mt. View School will be moving into the Mono Elementary School site. Jamie Irons requested Council use caution when considering budget cuts, especially when considering the police and fire services budgets. Dannie Tope requested Council maintain police and fire services in their budget review. David Nelson stated Duke Energy is misinforming the City, and noted the power plant is. a doomed plant. John Lauffer addressed the City's budget review. He said large across the board cuts penalize departments and their needed employees and programs. John Barta addressed Item A-3 (Ordinance No. 507 to Amend the Local Coastal Program and Zoning Ordinance (MBMC Title 17) Relating to the Second Dwelling Unit/Guest House Provisions Within the City Limits of Mono Bay -Second Reading/Adoption), and requested the City Council reconsider this matter. Roy Kline requested the City Council continue to hold public review and debate on mixed -use projects. He requested Council not change the proposal and quorum on ® Ordinance No. 507 (Secondary Units to Residential Homes) stating granny units will not preserve the neighborhoods or quality of life, especially in North Mono Bay. Mr. Kline referred to the project proposed for 600 Mono Bay Boulevard, and stated the commercial MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — MAY 23, 2005 percentage and residential mix should be reconsidered. He said he supports a 'tax increase to help maintain and fund the City's Fire and Police Departments. Mr. Kline stated the Planning Commission did a great job on the review of the project located at 555 Main Street. Lynda Merrill referred to Item A-3 and expressed support for secondary units to serve families who want to care for their loved ones. She stated she supports staff recommendations for Item B-3 (Resolution No. 25-05 Amending the Master Fee Schedule for Kitchen Use Fees and Approving the Kitchen Use Policy Changes). Ms. Merrill also referred to Item C-I and stated there is no time to deal with signage at this time. Joey Racano stated the community should be concerned with the City Council's leadership relating to the City's water quality. He also said he believes hunting is not compatible with the eco-tourism that Morro Bay has to offer. Came Filler stated Duke Energy was most -interested in negotiating with the City when money was flowing; she said the City should be future thinking and not coerced into agreeing to something that does not benefit the City. She also said her family was enjoying the bay on Christmas Day until they heard gunfire from hunting in the back bay. ® Mayor Peters closed the hearing for public comment. Mayor Peters called for a break at 7:05 p.m.; the meeting resumed at 7:20 p.m. DECLARATION OF FUTURE AGENDA ITEMS Councilmember Winholtz requested to agendize the review of a letter to Fish & Game regarding hunting in the bay; Councilmember DeMeritt 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 MINUTES FOR THE MAY 9, 2005 REGULAR MEETING, AND MARCH 30 AND MAY 4, 2005 ZONING ORDINANCE WORKSHOPS; (ADMINISTRATION/ PUBLIC SERVICES) RECOMMENDATION: Approve as submitted. A-2 CASH & INVESTMENT REPORT FOR APRIL 2005; (FINANCE) ® RECOMMENDATION: Receive report for information. 4 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — MAY 23, 2005 A-3 ORDINANCE NO. 507 TO AMEND THE LOCAL COASTAL PROGRAM AND ZONING ORDINANCE (MBMC TITLE 17) RELATING TO THE SECOND DWELLING UNIT/GUEST HOUSE PROVISIONS WITHIN THE CITY LIMITS OF MORRO BAY -SECOND READING/ADOPTION; (PUBLIC SERVICES) RECOMMENDATION: Approve second reading and adoption of Ordinance No. 507. A4 AUTHORIZATION TO FILE NOTICE OF COMPLETION FOR THE ROCK RESTROOM REPLACEMENT PROJECT; (PUBLIC SERVICES) RECOMMENDATION: Accept the Project as completed by Thiessen Construction, and authorize the filing of the Notice of Completion. A-5 ACCEPTANCE OF LETTER OF RESIGNATION FROM PARKS & RECREATION COMMISSIONER; (ADMINISTRATION) RECOMMENDATION: Accept letter of resignation, and authorize the City Clerk to advertise the vacancy on the Recreation & Parks Commission. ® A-6 PROCLAMATION DECLARING JUNE 6 & 7, 2005 AS "SPECIAL OLYMPICS — LAW ENFORCEMENT TORCH RUN DAYS"; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. Councilmember Peirce pulled Item A-3 from the Consent Calendar; Councilmember DeMeritt pulled Item A-5. MOTION: Councilmember Winholtz moved the City Council approve the Consent Calendar with the exception of Items A-3 and A-5. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) A-3 ORDINANCE NO. 507 TO AMEND THE LOCAL COASTAL PROGRAM AND ZONING ORDINANCE (MBMC TITLE 17) RELATING TO THE SECOND DWELLING UNIT/GUEST HOUSE PROVISIONS WITHIN THE CITY LIMITS OF MORRO BAY -SECOND READING/ADOPTION; (PUBLIC SERVICES) Councilmember Peirce pulled this item to express concern with Section F (No Parking in the Right -of -Way). Councilmember Baxley recommended adding the language from Section C to Section I for Is consistency; Council concurred. 5 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — MAY 23, 2005 MOTION: Councilmember Baxley moved the City Council approve Item A-3 of the Consent Calendar as amended. The motion was seconded by Councilmember DeMeritt and carried with Councilmember Peirce voting no. (4-1) A-5 ACCEPTANCE OF LETTER OF RESIGNATION FROM PARKS & RECREATION COMMISSIONER; (ADMINISTRATION) Councilmember DeMeritt pulled this item for public recognition of Angela Ludy and her role as Recreation & Parks Commission Chairperson. MOTION: Councilmember DeMeritt moved the City Council approve Item A-5 of the Consent Calendar. The motion was seconded by Councilmember Winholtz and carved unanimously. (5-0) B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 RESOLUTION NO. 23-05 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 on April 25, 2005, the City Council adopted Resolution No. 15-05, which initiated the proceedings to levy the annual assessment to fund the maintenance of the Cloisters Park and Open Space. Staff was also directed to have an Engineer's Report prepared detailing the estimated annual assessment for the parcel owners for fiscal year 2005/06. As part of the annual assessment process, staff is required to provide an Engineer's Report, which is an estimate of costs for maintenance of the Cloisters Park and Open Space. The costs 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. From July 1, 2004 through April 30, 2005 approximately $129,000 has been spent for maintenance. Ms. Lueker recommended the City Council adopt Resolution No. 23-05, which is the next and final step in the annual levy of assessment process, and is the protest hearing/public hearing after which the City Council actually orders the levy of assessment. Mayor Peters opened the hearing for public comment. John Lauffer requested the City Council not vote in support of this assessment district, or. hold off for a month until significant questions are answered. (Mr. Lauffer submitted these questions to the City Attorney). ® Mayor Peters closed the public comment hearing. C. MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — MAY 23, 2005 MOTION: Councilmember Winholtz moved the City Council adopt Resolution No. 23-05 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. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) B-2 RESOLUTION NO. 24-05 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 on April 25, 2005, the City Council adopted Resolution No. 16-05, which initiated the proceedings to levy the annual assessment to fund the maintenance of the North Point Natural Area. Staff was also directed to have an Engineer's Report prepared detailing the estimated annual assessment for the parcel owners for fiscal year 2005/06. As part of the annual assessment process, staff is required to provide an Engineer's 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 fiscal year 2005/06. Ms. Lueker recommended the City Council adopt Resolution No. 24-05, which is the next and final step in the annual levy of assessment process, and is the protest hearing/public hearing after which the City Council actually orders the levy of assessment. Mayor Peters opened the hearing for public comment; there being no comments, Mayor Peters closed the public comment hearing. MOTION: Councilmember Baxley moved the City Council adopt Resolution No. 24- 05 approving the Engineers Report and declaring the City's intention to levy the annual assessment for the maintenance of North Point Natural Area. The motion was seconded by Councilmember Winholtz and carved unanimously. (5-0) B-3 RESOLUTION NO. 25-05 AMENDING THE MASTER FEE SC14EDULE FOR KITCHEN USE FEES AND APPROVING THE KITCHEN USE POLICY CHANGES; (RECREATION & PARKS) Recreation & Parks Director Andrea Lueker stated currently the kitchen use fee is based on a per -use fee. The per -use fee allows an applicant to reserve the kitchen all day for one low fee. The potential revenue from a large one -day event ranges from $40041,000 ® while the revenue from a single kitchen rental is $22.50. The proposed kitchen fee amendment will increase the revenue generated by use of the kitchen while still keeping it available and affordable for the existing catering uses. Ms. Lueker recommended the 7 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — MAY 23, 2005 City Council adopt Resolution No. 25-05 which approves the kitchen use policy changes and amends the Master Fee Schedule for kitchen use fees for the Morro Bay Community Center and Veterans' Memorial Building. Mayor Peters opened the hearing for public comment; there being no comments, Mayor Peters closed the public comment hearing. MOTION: Councilmember Baxley moved the City Council adopt Resolution No. 25-05 approving the kitchen use policy changes and amending the Master Fee Schedule for kitchen use fees for the Morro Bay Community Center and Veterans' Memorial Building. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) C. UNFINISHED BUSINESS C-1 CONSIDERATION OF DIRECTIONAL SIGNAGE PROGRAM; (PUBLIC SERVICES) Public Services Director Bruce Ambo stated on October 25, 2004, the City Council authorized staff to begin development of a directional signage program. Business ® owners, residents and tourists alike have indicated that signage was underutilized, confusing and ineffective, especially to the unfamiliar traveler. The purpose of the directional signage program is to facilitate circulation around town by providing clear directions to various points of interest and attractions throughout the community. Funding for the directional signage program is from past Community Development Block Grant program income activities. These funds are generally intended to eliminate blight and stimulate economic development. Since full implementation of the entire signage program could easily cost over $200,000, staff has requested funding for the "Gateway" or freeway signage from CalTrans, and anticipates applying to the State Coastal Conservancy for "interpretive" signage when the Waterfront Boardwalk project is under construction. Mr. Ambo recommended the City Council: 1) consider and approve the directional signage program statement; 2) select a signage design theme; 3) determine a program of directional signage installations; 4) authorize staff to develop shop drawings for the sign and solicit requests for proposals for fabrication and installation of the signs and/or 5) provide further direction to staff. Terri Dunivant, Gaia Graphics, presented a variety of proposed directional signs. Council discussed preferred signs and locations where signs are needed. 2 8 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — MAY 23, 2005 MOTION: Councilmember DeMeritt moved the City Council: 1) approve the Directional Signage Program statement, principles, and the hierarchy of signage; 2) selected a signage design theme; 3) authorize staff to develop shop drawings and solicit requests for proposals for fabrication and installation of two entry signs and two directional signs; and 4) costs are not to exceed the Community Development Block Grant funding source. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) D. NEW BUSINESS D-1 AUDIT REPORT FOR FISCAL YEAR 2003-2004; (FINANCE) Finance Director Jim Koser stated each year the City is required to obtain the opinion of an independent Certified Public Accountant as to the accuracy of the financial statements prepared by City management. The firm of Butcher, Chambers, Cook and Pressley of Grover Beach, California prepared the fiscal year 2003-2004 financial audit report. This report represents the official statement of the financial condition of the City for the year ® ended June 30, 2004. Mr. Koser recommended the City Council receive a verbal report for auditor Steve Pressley, and accept the fiscal year 2003-2004 financial audit report. Steve Pressley, Butcher, Chambers, Cook and Pressley, reviewed the audit report for fiscal year 2003-2004. MOTION: Councilmember Peirce moved the City Council accept the fiscal year 2003-2004 financial audit report. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) D-2 REVIEW OF THE CITY PRIVATE TREE ORDINANCE; (PUBLIC SERVICES) Councilmember Winholtz stated the State Fish & Game identifies nesting season and protects active raptors' nests. To be consistent with our chosen designation as a Bird Sanctuary and as an agency of the State of California, the City of Morro Bay wants to follow and enforce State law and assist its residents in following State law and honoring what it professes to be, a Bird Sanctuary. Councilmember Winholtz recommended a section be added to the City's tree ordinance that states residents who anticipate cutting a tree(s) on private property must notify the appropriate City office in advance with written information from their arborist as to whether or not there is a nest and whether it is active. If there is a nest, City staff will instruct the owner as to what is required of them. If such ® information is not given and the tree is cut, a fine is levied against the property owner. In addition, if there was an active nest, then State law is enforced as to consequences. MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — MAY 23, 2005 Councilmember Winholtz also recommended all known arborists and tree cutters who work in the City are notified in writing as to this policy upon it becoming effective, and that residents be notified in writing as well through the water bill or other effective means. The City Council agreed to pursue an educational program with assistance from volunteers, and place a notice on water bills notifying residents of nesting season prior to the season. No further action was taken. D-3 DISCUSSION ON SCHEDULING AN ADDITIONAL BUDGET WORKSHOP; (ADMINISTRATION) No action was taken on this item. D-4 REVIEW OF COUNCIL DECISION TO SELL OLD TROLLEY; (CITY COUNCIL) Councilmember Peirce requested this item be placed on the agenda during Future Agenda Items on May 9, 2005. He said he would like to reconsider bringing the old trolley back ® because the two present trolleys are not reliable. Councilmember Baxley suggested keeping the old trolley for one year and then decide what to do with it. Councilmember DeMeritt suggested keeping the old trolley as a back up, and challenge the marketing aspect. MOTION: Councilmember Peirce moved the City Council defer selling the trolley; direct staff to promote this trolley; and, re-evaluate its progress in one year. The motion was seconded by Councilmember Baxley and carried unanimously. (5-0) ADJOURNMENT The meeting adjourned at 9:43 p.m. Recorded by: Bridgett Bauer ® City Clerk 10 NOTICE OF SPECIAL MEETING ® NOTICE IS HEREBY GIVEN that the Morro Bay City Council will be holding a Special Meeting on Thursday. May 19, 2005 at 5:00 p.m. to be held in the Community Center Multi Purpose Room, 1001 Kennedy Way, Morro Bay, California. The City Council will be previewing the agenda for the Morro Bay/Cayucos Sanitary District Joint Powers Authority meeting as follows: A. CONSENT CALENDAR 1. Minutes of April 6, 2005— Recommend approve. 2. Wastewater Treatment Plant (WWTP) Operations Report through March 2005 (Keogh)— Recommend: receive and file. 3. Financial Status Report as of March 31, 2005 (Koser) — Recommend: receive and file. B. UNFINISHED BUSINESS 1. Presentation of Independent Auditor's Report and Financial Statements For Fiscal Years Ended June 30, 2001, 2002, and 2003. (Bob Crosby, CPA of Crosby & Cindrich) 2. Plan of Action For Addressing FY 03 — 04 Financial Audit, FY 04 — 05 And Beyond (Koser) 3. Discussion, Review, and Consideration to Adopt the Revised Draft Time Schedule for WWTP Process Upgrades (Carollo Engineers /Keogh) ® C. NEW BUSINESS 1. Invoice for Third Quarter FY 2004 — 2005 (Koser) — Recommend approve. 2. Consideration of a 1-year Lease Agreement with Hanson Aggregates for the Lease site 150 Extension Area - (Algert) 3. Consideration to Renew Lease Agreement Between the City and District for Two Storage Areas Adjacent to the City's Maintenance Yard (Parcels 1 and 2). 4. Proposed WWTP Budget for FY 2005-2006 (Koser) 5. Schedule Next Joint Meeting and Agenda Items The City Council will adjourn to the Morro Bay/Cayucos Sanitary District Joint Powers Authority meeting that will begin at 7:00 p.m., and will be held in the Community Center Multi Purpose Room, 1001 Kennedy Way, Morro Bay, CA. 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. DATED: May 11, 2005 ® F�Y+a.� Mt L\1J awt ,,_ Bridgett BaUtr, City Clerk El City of Morro Bay Morro Bay, CA 93442 • 805-772-6200 wmv. morro-bay.ca. us NOTICE OF SPECIAL MEETING NOTICE IS HEREBY GIVEN that the Morro Bay City Council will be holding a Special Budget Workshop on Monday, May 16, 2005 at 6:00 p.m. to be held in the Community Center —Multi —Pufpese—Reem, 1� Yo^ edy Way Veterans' Memorial Building, 209 Surf Street, Morro Bay, California. The City Council will be discussing the Fiscal Year 2005/2006 Budget. 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. 'DATED: May 11, 2005 Bridgett 4uer, City Clerk FINANCE 595 Harbor Street ADMINISTRATION 595 Harbor Street FIRE DEPARTMENT 715 Harbor Sweet PUBLIC SERVICES 955 Shasta Street HARBOR DEPARTMENT CITY ATTORNEY POLICE DEPARTMENT 1275 Embarcadero Road 955 Shasta Avenue 850 Morro Bay Boulevard RECREATION AND PARKS 1001 Kennedy way ® MINUTES - MORRO BAY CITY COUNCIL SPECIAL BUDGET MEETING — MAY 16. 2005 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Peters called the meeting to order at 6:15 p.m. PRESENT: Janice Peters Mayor Thad Baxley Councilmember Melody DeMeritt Councilmember William Peirce Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix City Manager Robert Schultz City Attorney Bridgett Bauer City Clerk Finance Director Jim Koser reviewed the status of the fiscal year 2004/2005 budgets, and made recommendations for the fiscal year 2005/2007 budgets. PUBLIC COMMENT ® The following people expressed concern with the lay-off of Public Safety Employees: Rick Catlett, Mary Sponhaltz, Ron Burkhardt, Robert Root, Al Sengstock, Doug Hamp, Bill Olson, Joey Racano, Marla Buton, Richard Sodowski, Christine Linhares, Lanny McKay, Susan Ayres, Rick & Claire Grantham, Stan House, Jeff Jones, Ken Vesterfelt, Suzie Correa, Julie Burns, Nathan Ditmore, Janice House, Graham Paske, Keith Taylor, Rodger Anderson, Bryan Millard, Marc Godfrey, John Weiss, Mannie Silva, Mark Martin, Dave Elliott, Chuck Rose, Dan Reddell, Troy Leage, Fayla Chapman, Doug . Riddell, Ariane Leiter, Alex Finley, and Ted Miranda. John Barta addressed the appointment of a new Planning Commission and noted the City could save money by reigning in this Commission. Mickey Sheehan requested the City Council maintain the juvenile programs. Dan Glessman stated the City's department heads are. obtaining a 20% reduction in their budgets by cutting field personnel and supplies. He also stated that the seven highest paid employees are requesting a 9% wage increase Lynda Merrill stated she supports the City Manager's recommendation to balance the budget. C�� 0 ® John Lomison requested the City Council consider creating revenue, and do not think only of employee cuts. Ray Knox requested the City Council consider cutting other areas in the budget without eliminating positions. Ray McKelligott stated he supports the City Manager's recommendation to balance the budget. Dave Phillips stated millions of dollars are invested in the City's infrastructure that needs to be maintained. Mayor Peters closed the public comment hearing. Mayor Peters called for a break at 7:10 p.m.; the meeting resumed at 7:25 p.m. After discussing the various alternatives of achieving a balanced budget, the City Council gave staff the following direction: 1. Requests that staff consider a change in the level of City Reserves established by policy, and report back to the City Council on June 9, 2005. Proceeds of any reserve reduction to be applied to the budget. ® 2. Directed staff to apply the excess proceeds from sale of real property to the budget. 11 3. Directed staff to request the employee groups with contracts to reopen them for the purpose of eliminating agreed COLA's. Savings generated would be applied to budgets appropriate for the participating bargaining unit. 4. The Embarcadero parking lot was purchased with General Fund monies. Rental of the lot to either Harbor or the Parking In -Lieu Fund would he consistent with the principle of placing the expense where the benefit is achieved. $80,000 annually has been suggested but not confirmed as an appropriate amount. Determine the program impact of any charges on the Harbor fund. 5. Develop an analysis and parking proposal that describes areas to be paid parking, the method and amount of payment, projected gross revenue, . costs of implementation, administrative costs, and costs of enforcement. 6. The City Council asked that parking be an enforcement priority. Acknowledging the difficulties imposed by personnel reductions, the City Council asked that the Department examine the idea of using Community Volunteers to assist in the parking enforcement effort. N Is reduce The City Council directed staff to recast the Community Promotions budget to reduce funding for advertising by 50%. Funding for operational costs of the Visitors Center, and costs related to the Promotion website are to be preserved. 8. The City Council asked that staff move ahead with the analysis and related actions needed for formation of a Benefit Assessment District for fire services. Determining an assessment for the current three -person crew service level and for an augmented four -person, two station service level. 9. The City Council requested that staff bring back a proposal at the June 9, 2005 budget meeting, for increasing the budget of the Fire Department and the Police Department based on any savings achieved by implementing the other City Council proposals identified in the May 16, 2005 budget workshop. Adjournment The meeting adjourned at 10:08 p.m. Recorded by: ® Bridgett Bauer City Clerk 3 ® 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 9, 2005 CLOSED SESSION — MAY 9, 2005 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA CS-1 GOVERNMENT CODE SECTION 54957.6; CONFERENCE WITH .® LABOR NEGOTIATOR. Conference with the City Manager, the City's Designated Representative, for the purpose of reviewing the City's position regarding salaries, salary schedules, or compensation paid in the form of fringe benefits, and giving instruction to the Designated Representative. CS-2 GOVERNMENT CODE SECTION 54956.9(a): CONFERENCE WITH LEGAL COUNSEL REGARDING PENDING LITIGATION. • In Re Morro Bay Power Plant Project, 00-AFC-12 CS-3 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: Lease Site: Outfall Negotiating Parties: City and Duke Energy Negotiations: Lease Terms and Conditions IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. 11 PUBLIC SESSION — MAY 9, 2005 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 MINUTES FOR THE APRIL 25, 2005 REGULAR MEETING; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 RESOLUTION NO. 22-05 COMMENDING AND HONORING PERSONNEL OFFICERIRISK MANAGER ARDITH DAVIS ON HER RETIREMENT; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 22-05. A-3 RECOMMENDATION TO AMEND THE KITCHEN USE FEE AT THE MORRO BAY COMMUNITY CENTER AND VETERANS' MEMORIAL BUILDING; (RECREATION & PARKS) RECOMMENDATION: Approve the Kitchen Use Policy changes and amendment of the Kitchen Use Fees for the Morro Bay Community Center and Veteran's Memorial Building. A-4 APPROVAL OF TWO LETTERS IN SUPPORT OF COMMERCIAL FISHING: 1) TO DECLARE A DISASTER IN SALMON FISHERY; AND 2) TO COMMENT ON THE GROUNDFISH MANAGEMENT PLAN DRAFT is ENVIRONMENTAL IMPACT STATEMENT; (HARBOR) RECOMMENDATION: Approve two letters in support of Commercial Fishing. A-5 PROCLAMATION DECLARING MAY 21-25, 2005 AS "NATIONAL PUBLIC WORKS WEEK'; (PUBLIC SERVICES) RECOMMENDATION: Adopt Proclamation. A-6 PROCLAMATION DECLARING MAY 2005 AS "MOTORCYCLE AWARENESS MONTH'; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. B. PUBLIC HEARINGS REPORTS & APPEARANCES B-1 ORDINANCE NO. 507 TO AMEND THE LOCAL COASTAL PROGRAM AND ZONING ORDINANCE (MBMC TITLE 17) RELATING TO THE SECOND DWELLING UNIT/GUEST HOUSE PROVISIONS WITHIN THE CITY LIMITS OF MORRO BAY - INTRODUCTION AND FIRST READING; (PUBLIC SERVICES) RECOMMENDATION: Approve introduction and first reading of Ordinance No. 507 by number and title only. 3 ® B-2 CONSIDERATION OF THE VISION 20/20 REPORT AND RELATED COMMENTS; (ADMINISTRATION) RECOMMENDATION: Discuss and direct staff accordingly. C. UNFINISHED BUSINESS —NONE. D. NEW BUSINESS D-1 RESOLUTION NO. 19-05 APPROVING A 10-YEAR LEASE FOR MOORING ZONE A1-4 LOCATED OFFSHORE OF LEASE SITE 71-74/71 W-74W AT 699 EMBARCADERO; (HARBOR) RECOMMENDATION: Adopt Resolution No. 19-05. D-2 RESOLUTION NO. 20-05 APPROVING AN AMENDMENT TO THE LEASE AGREEMENT FOR LEASE SITE 37W LOCATED ADJACENT TO 261 MAIN STREET TO AUTHORIZE A TEN-YEAR LEASE EXTENSION; (HARBOR) RECOMMENDATION: Adopt Resolution No. 20-05. D-3 REVIEW OF PUBLIC WORKS ADVISORY BOARD RECOMMENDED is WASTE IN COLLECTION PROCEDURES FOR DELINQUENT SOLID WASTE ACCOUNTS; (ADMINISTRATION) RECOMMENDATION: Discuss and direct staff accordingly. D-4 CONSIDERATION OF COST -SAVING AND REVENUE ENHANCEMENT ALTERNATIVES FOR DIAL -A -RIDE; (ADMINISTRATION) RECOMMENDATION: Discuss and direct staff accordingly. D-5 ORDINANCE NO. 508 ADOPTING AN URGENCY INTERIM ORDINANCE PROHIBITING THE ESTABLISHMENT OF MEDICAL MARIJUANA DISPENSARIES; (CITY ATTORNEY) RECOMMENDATION: Adopt Ordinance No. 508. D-6 PLANNING DIVISION VACANCIES AND SERVICE REDUCTIONS; (PUBLIC SERVICES) RECOMMENDATION: Discuss and direct staff accordingly. 11 4 ® 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. C MINUTES - MORRO BAY CITY COUNCIL ® CLOSED SESSION — MAY 9, 2005 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Peters called the meeting to order at 5:00 p.m. PRESENT: Janice Peters Mayor STAFF: CLOSED SESSION Thad Baxley Melody DeMeritt William Peirce Betty Winholtz Robert Hendrix Robert Schultz Councilmember Councilmember Councilmember Councilmember City Manager City Attorney MOTION: Councilmember Peirce moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Baxley and unanimously carried. (5-0) Mayor Peters read the Closed Session Statement. CS -I GOVERNMENT CODE SECTION 54957.6; CONFERENCE WITH ® LABOR NEGOTIATOR. Conference with the City Manager, the City's Designated Representative, for the purpose of reviewing the City's position regarding salaries, salary schedules, or compensation paid in the form of fringe benefits, and giving instruction to the Designated Representative. CS-2 GOVERNMENT CODE SECTION 54956.9(a): CONFERENCE WITH LEGAL COUNSEL REGARDING PENDING LITIGATION. • In Re Morro Bay Power Plant Project, 00-AFC-12 CS-3 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: Lease Site: Outfall Negotiating Parties: City and Duke Energy Negotiations: Lease 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 Baxley and unanimously carried. (5-0) The meeting adjourned at 5:50 p.m. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 9, 2005 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Peters called the meeting to order at 6:00 p.m. PRESENT: Janice Peters Mayor Thad Baxley Melody DeMeritt William Peirce Betty Winholtz STAFF: Robert Hendrix Robert Schultz Jamie Boucher Rick Algert Bruce Ambo . Janeen Burlingame John DeRohan Mike Pond Mike Prater Jim Koser Andrea Lueker Councilmember Councilmember Councilmember Councilmember City Manager City Attorney Deputy City Clerk Harbor Director Public Services Director Management Analyst 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 Kim Kimball, Executive Director of the Chamber of Commerce, stated the 4`h of July festivities are moving forward with $12,000 raised to date. Susan Ayers stated the City should maintain the current Fire Department stafrmg levels for the health and safety of the citizens and tourists of Morro Bay. Mandy Davis stated the City is dependent on tourism, and tourist -season is also the beginning of hunting season. She said hunting in the back bay is not what a tourist driving along a scenic way wants to see. E 2 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 9, 2005 Roger Ewing stated he supports the across-the-board budget cuts proposed by staff. He said the City's crime rate has not changed for years, and it does not have the same crime rate as an urban area. Mr. Ewing also addressed Item D-5 (Ordinance No. 508 Adopting An Urgency Interim Ordinance Prohibiting The Establishment Of Medical Marijuana Dispensaries), and reminded Council that in 1996 the City Council unanimously supported Proposition 215, which gave California the right to dispense medical marijuana to patients who needed it. Ray McKelligott stated the current City Council should not be blamed for the present budget cuts. He said the higher paid employees should consider taking pay cuts in order to save police and fire jobs. Anne Reeves, Outreach Coordinator for Senior Nutrition Program, stated May is "Elder American Month". She said this non-profit organization is short on volunteers and funding, and requested public outreach for this important program. Lee Gill addressed the California Health Insurance Reliability Act (SB 840), stating the goal of SB 840 is to insure the overall health of California business and all Californians. He said SB 840 would provide fiscally sound and affordable health insurance coverage for all Californians, and would help control health care cost inflation. ® Phil Hill stated he has animosity towards the corporate Duke Energy Power Plant. He said if Duke Energy goes away it would be great for the community and the fisheries. Mr. Hill stated perhaps the Harbor Department could assist in the Boatyard dilemma since it provides service to the bay. He also read letters in opposition to hunting in the back bay. Richard Sodowski and Marla Britton expressed appreciation to City staff and the Mayor for being available to address public concerns. Ms. Britton also stated she found a baby owl who fell out of a tree in the State Park; she said the Pacific Wildlife Group came to the rescue and placed the baby owl back in the tree. Roy Vinio stated the Duke Energy Power Plant is not compatible with the largest monolithic on the Central Coast. He suggested replacing the power plant with a museum or leaving the site in its natural habitat. Mr. Vinio stated there is only one Morro Rock, but there are many power plants. Noah Smukler, representing the SLO Coastal Alliance, stated the Alliance has voted to recommend a total hunting ban in Morro Bay, and believe hunting is inconsistent with an acclaimed bird sanctuary of prime importance to migratory birds. He expressed support for the wild salmon fishery, and noted people can support this industry by avoiding farm fish. Mr. Smukler also expressed appreciation for the placement of solar panels at the ® Community Center. 3 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — MAY 9, 2005 David Nelson stated he has been opposed to the Duke Energy Power Plant Modernization Plan for many reasons. He said the City should withhold their support for this plant and re-evaluate it. Mr. Nelson stated there is evidence that the particulate matter will increase health hazards to the community. Jamie Irons stated the City's budget problems are not the responsibility of Duke Energy or the State Parks Renovation Project; however, the City should take responsibility for the present budgetary situation. Mr. Irons stated the City Council should participate in an independent budgetary class to make qualified decisions. Roy Kline addressed the campaign promises made by a candidate. He stated Duke Energy should pay the promised amount to the City. Mr. Kline stated hunting should be removed from the back bay. Frank DeVine stated the City should expand its limits to include the bird sanctuary in order to exclude hunting in the back bay. He expressed opposition to the review of proposed projects by anon -elected City official. Beverly Abbey expressed opposition to hunting in the back bay ® Ken Vesterfelt expressed concern with the budget cuts that may affect the Police Department. He said last weekend's Car Show was a great success, and gave thanks to the City for their participation. Susan Brown, Manager of Dial -A -Ride, addressed the proposed budget cuts on this service, and reiterated the concerns of the citizens who frequent this service. She said Saturday service is very important to many citizens including those who have no other transportation. Barbara Stickel, representing Morro Bay Commercial Fisherman's Association, expressed support for Item A4 (Approval of Two Letters In Support of Commercial Fishing: 1) To Declare A Disaster In Salmon Fishery; and 2) To Comment On The Ground fish Management Plan Draft Environmental Impact Statement). She also noted her husband supports duck hunting in the back bay. Joey Racano urged citizens to attend the Morro Bay/Cayucos Sanitary District Joint Powers Authority meeting on May 19, 2005 in order to support the removal of the secondary treatment waiver. Pat Mullen, representative of Duke Energy, stated it was phenomenal to see all the people in town during the Car Show. He explained the merger between Duke Energy and CINergy out of Cincinnati, which took place in order for Duke Energy to move forward ® during the current energy and budgetary situation. 0 E MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 9, 2005 Stan House expressed support for Item A-4 on tonight's agenda. He said the City's Fire Department is presently under -staffed especially when there are multiple subsequent calls. Mr. House stated the Ad -Hoc Emergency Services Committee recommended the implementation of a benefit assessment district to assist in funding for the Fire Department. He also expressed concern with the removal of the School Resource Officer at Morro Bay High School. Brandon McNamara expressed opposition adopting an Urgency Interim Ordinance marijuana dispensaries. with the adoption of Ordinance No. 508 prohibiting the establishment of medical Carl Garrity addressed the current budget crisis stating the blame can be placed on the voters for continually voting down any tax increases while insisting to maintain or improve City services; past administrations can be blamed for trying to maintain or improve services with no perceptible increase in revenue. He said the solution is to reduce services. Lynda Merrill addressed the budget stating she has not noticed any cuts to management pay or employee fringe benefits. She said she would like to see the City's advertising budget cut rather than employees, and scare tactics should not be used when addressing the budget. She also requested Morro Bay be proclaimed a "quiet zone" when it comes to motorcycles. Mayor Peters closed the hearing for public comment. DECLARATION OF FUTURE AGENDA ITEMS Councilmember Peirce requested to agendize the discussion on Council's decision to sell the old trolley; Councilmember Baxley concurred. Councilmember Winholtz requested to agendize the discussion of the City's private tree 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 MINUTES FOR THE APRIL 25, 2005 REGULAR MEETING; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. E MINUTES - MORRO BAY CITY COUNCIL is REGULAR MEETING — MAY 9, 2005 A-2 RESOLUTION NO. 22-05 COMMENDING AND HONORING PERSONNEL OFFICERIRISK MANAGER ARDITH DAVIS ON HER RETIREMENT; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 22-05. A-3 RECOMMENDATION TO AMEND THE KITCHEN USE FEE AT THE MORRO BAY COMMUNITY CENTER AND VETERANS' MEMORIAL BUILDING; (RECREATION & PARKS) RECOMMENDATION: Approve ' the Kitchen Use Policy changes and amendment of the Kitchen Use Fees for the Morro Bay Community Center and Veteran's Memorial Building. A-4 APPROVAL OF TWO LETTERS IN SUPPORT OF COMMERCIAL FISHING: 1) TO DECLARE A DISASTER IN SALMON FISHERY; AND 2) TO COMMENT ON THE GROUNDFISH MANAGEMENT PLAN DRAFT ENVIRONMENTAL IMPACT STATEMENT; (HARBOR) ® RECOMMENDATION: Approve two letters in support of Commercial Fishing. A-5 PROCLAMATION DECLARING MAY 21-25, 2005 AS "NATIONAL PUBLIC WORKS WEEK"; (PUBLIC SERVICES) RECOMMENDATION: Adopt Proclamation. A-6 PROCLAMATION DECLARING MAY 2005 AS "MOTORCYCLE AWARENESS MONTH'; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. Mayor Peters pulled Items A-2, A-5 and A-6 from the Consent Calendar; Councilmember Winholtz pulled Items A-1 and A-4. MOTION: Councilmember Winholtz moved the City Council approve Item A-3 of the Consent Calendar. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) A-1 MINUTES FOR THE APRIL 25, 2005 REGULAR MEETING; (ADMINISTRATION) Councilmember Winholtz made a correction to the motion on Item D4 from the April ® 25, 2005 minutes. 10 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 9, 2005 MOTION: Councilmember Winholtz moved the City Council approve Item A-1 of the Consent Calendar as amended. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) A-2 RESOLUTION NO. 22-05 COMMENDING AND HONORING PERSONNEL OFFICER/RISK MANAGER ARDITH DAVIS ON HER RETIREMENT; (ADMINISTRATION) Mayor Peters pulled this item in order to present Personnel Officer/Risk Manager Ardith Davis with plaques of commendation for her 30 years of service to the City of Morro Bay. MOTION: Councilmember Peirce moved the City Council approve Item A-2 of the Consent Calendar. The motion was seconded by Councilmember Baxley and carried unanimously. (5-0) A-4 APPROVAL OF TWO LETTERS IN SUPPORT OF COMMERCIAL FISHING: 1) TO DECLARE A DISASTER IN SALMON FISHERY; AND 2) TO COMMENT ON THE GROUNDFISH MANAGEMENT PLAN DRAFT ® ENVIRONMENTAL IMPACT STATEMENT; (HARBOR) Councilmember Winholtz asked if these letters would be sent to the federal legislators; Harbor Director Rick Algert responded affirmative. MOTION: Councilmember Winholtz moved the City Council approve Item AA of the Consent Calendar. The motion was seconded by Councilmember Baxley and carried unanimously. (5-0) A-5 PROCLAMATION DECLARING MAY 21-25, 2005 AS "NATIONAL PUBLIC WORKS WEEK'; (PUBLIC SERVICES) Mayor Peters pulled this item for public awareness on the efforts of the City's Public Service Department. MOTION: Mayor Peters moved the City Council approve Item A-5 of the Consent Calendar. The motion was seconded by Councilmember Baxley and carried unanimously. (5-0) A-6 PROCLAMATION DECLARING MAY 2005 AS "MOTORCYCLE AWARENESS MONTH"; (ADMINISTRATION) Mayor Peters pulled this item for public awareness on the safety of motorcycles on the road, ® and for all drivers to share the road with motorcycles. 7 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — MAY 9, 2005 MOTION: Mayor Peters moved the City Council approve Item A-6 of the Consent Calendar. The motion was seconded by Councilmember Baxley and carried unanimously. (5-0) Mayor Peters called for a break at 7:30 p.m.; the meeting resumed at 7:40 p.m. B. PUBLIC HEARINGS, REPORTS & APPEARANCES B-I ORDINANCE NO. 507 TO AMEND THE LOCAL COASTAL PROGRAM AND ZONING ORDINANCE (MBMC TITLE 17) RELATING TO THE SECOND DWELLING UNIT/GUEST HOUSE PROVISIONS WITHIN THE CITY LIMITS OF MORRO BAY - INTRODUCTION AND FIRST READING; (PUBLIC SERVICES) Associate Planner Mike Prater stated at the April 25, 2005 City Council meeting, staff was directed to bring back revised language as discussed and motioned by the Council. Mr. Prater recommended the City Council open the public hearing; accept the Planning Commission recommendation to adopt the proposed ordinance amendments with modifications directed at the April I and 25`h Council hearing that would allow for ministerial secondary dwelling units in residential zones; approve the Negative ® Declaration; approve the first reading and introduction of Ordinance No. 507 by motion; and, continue this matter to the May 23, 2005 City Council meeting to conduct the second reading and adoption of Ordinance No. 507. Mayor Peters opened the hearing for public comment. John Barta stated according to the ordinance as written, homeowners' homes that are located less than 30 feet to the front of the lot will not be allowed to build granny units; homeowners whose homes are more than 30 feet from the front of the lot will lose 25- 100% of your right to build a granny unit depending on different case scenario; and, those who have space for a driveway on the side of their house also have a 25-100% right to build a granny unit. Mr. Barta stated the community at -large would lose with the ordinance as written. David Nelson expressed concern with this ordinance noting that not all lots are conforming to allow a multiple family dwelling. He said he does not want his neighborhood to become "granny unit strip". Bob Tefft stated the City needs a balanced ordinance that creates neighborhood character that also allows auxiliary housing that is proportional. He requested Council support this ordinance. ® Lynda Merrill stated density of neighborhoods and quality of life should be considered in this ordinance. 8 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — MAY 9, 2005 Martin Mosaic stated compromise is necessary, and the size of the lot should be considered in this ordinance. He said parking is a problem regardless and requiring two extra spaces is unrealistic. Gary Ream stated a parking ordinance in residential areas should be considered restricting parking on the streets from 1:00 am. — 6:00 am., which will eliminate the parking problem. Mayor Peters closed the public comment hearing. Agreement of the majority City Council regarding Section C (Minimum or Maximum Floor Area) stating the maximum floor area of a second unit shall not exceed 900 square feet, or 50%, whichever is smaller of the existing or proposed living areas of the primary dwelling unit. Councilmember Winholtz expressed concern with going across the board with all zoning regulations. Consensus of the City Council regarding Section F (Parking) is to require one parking space per bedroom. MOTION: Councilmember Baxley moved the City Council approve the first reading ® and introduction of Ordinance No. 507 Amending the Local Coastal Program and Zoning Ordinance (MBMC Title 17) Relating to the Second Dwelling Unit/Guest House Provisions Within the City Limits of Morro Bay, with amendments to Sections C (Minimum or Maximum Floor Area) and F (Parking). The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) B-2 CONSIDERATION OF THE VISION 20/20 REPORT AND RELATED COMMENTS; (ADMINISTRATION) Vicki Landis, Chair of the Public Works Advisory Board, reviewed the Board's consideration of this draft report, and noted the Board has approved the visionary portion of this report. Gary Ream, Chair of the Vision 20/20 Committee, gave an overview of the Committee and Sub -Committees' review of the various aspects of this draft report. Bob TeM Chair of the Tourism Sub -Committee, stated the issues discussed were related to developing a superior product in order to make Morro Bay a desirable destination, and to market this vision. He said the priorities discussed were to tie the Embarcadero to the downtown area, with the Market Street property playing a key role; improved signage; and redevelopment in the downtown area to make it more attractive where locals and 0 tourists could intermingle MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — MAY 9, 2005 Robyn Smith,discussed her experience on the Vision 20/20 Committee, and requested Council's input on the draft report. Mandy Davis, Chair of the Environmental Sub -Committee, stated their review included sustainability issues, conservation and preservation issues, as well as educational issues. Bud Zeuschner stated he was the facilitator in this process. He said it was a rewarding experience for himself and those on the Committee. Mayor Peters opened the hearing for public comment; there being no public comments, Mayor Peters closed the public comment hearing. The City Council commended the Committee Members for their efforts in preparing this Vision 20/20 Draft Report. No further action was taken on this item. Mayor Peters called for a break at 9:00 p.m.; the meeting resumed at 9:10 p.m. C. UNFINISHED BUSINESS —NONE. ® D. NEW BUSINESS D-1 RESOLUTION NO. 19-05 APPROVING A 10-YEAR LEASE FOR MOORING ZONE A1-4 LOCATED OFFSHORE OF LEASE SITE 71-74/71 W-74W AT 699 EMBARCADERO; (HARBOR) Harbor Director Rick Algert stated the City has been leasing Mooring Zone A14 to Morro Bay Marina since 1991. Terms for the past leases have been set at five years. The main lease for Morro Bay Marina terminates in 2041. A 10-year lease on the mooring zone lease has been proposed in order to reduce the number of times the mooring zone lease will have to be renewed during the term of the main lease. A 10-year term for Mooring Zone Al-3 with the Morro Bay Yacht Club was approved in 2003. The proposed Mooring Zone lease agreement is based on the City's new Master Lease format and will take effect on July 1, 2005. The lease requires that all the moorings be maintained and inspected to meet City specifications every other year and that the City must approve any proposed changes to the mooring field. Mr. Algert recommended the City Council adopt Resolution No. 19-05 approving a 10-year lease agreement for Mooring Zone A1-4 with the Morro Bay Marina. MOTION: Councilmember Peirce moved the City Council adopt Resolution No. 19-05 approving a 10-year Lease Agreement for Mooring Zone A14 with the ® Morro Bay Marina. The motion was seconded by Councilmember Baxley and carried unanimously. (5-0) 10 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — MAY 9, 2005 D-2 RESOLUTION NO. 20-05 APPROVING AN AMENDMENT TO THE LEASE AGREEMENT FOR LEASE SITE 37W LOCATED ADJACENT TO 261 MAIN STREET TO AUTHORIZE A TEN-YEAR LEASE EXTENSION; (HARBOR) Harbor Director Rick Algert stated Lease Site 37W is a water lease site located south of the Tidelands Park area. The City's Lease Management Policy adopted in 2001 allows for consideration of lease extension with existing tenants when the tenant has a good history of performance and lease compliance and the improvements on the site are well maintained. The current tenants have held the lease agreement on this lease site since 1964 and have proven to be good tenants. They have a history of timely lease payments and are in compliance with all the terms of the lease agreement. Mr. Algert recommended the City Council adopt Resolution No. 20-05 approving Amendment #1 to the lease agreement for Lease Site 37W located adjacent to 261 Main Street. MOTION: Councilmember Baxley moved the City Council adopt Resolution No. 20-05 approving Amendment #1 to the Lease Agreement for Lease Site 37W located adjacent to 261 Main Street. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) D-3 REVIEW OF PUBLIC WORKS ADVISORY BOARD RECOMMENDED ® CHANGES IN COLLECTION PROCEDURES FOR DELINQUENT SOLID WASTE ACCOUNTS; (ADMINISTRATION) Management Analyst Janeen Burlingame stated in Morro Bay Garbage Service's (MBGS) recent Base Year Rate Adjustment Application submitted to the City in December 2004, General Manager Tom Martin brought to light an issue regarding bad debt expense as the cost for bad debt expense has risen dramatically over the past several years. In 2004, MBGS wrote off approximately $18,500 in accounts and only recovered approximately $7,500 in previously written off accounts, for a net write-off of $11,000. At the end of 2004, MBGS had a balance of approximately $24,000 in accounts that were over 90 days past due. While there is a collections person at MBGS who pursues the non -payers through phone calls, small claims court and a credit collection agency, these actions are time consuming and not always successful. The Public Works Advisory Board considered this item at its March 16, 2005 meeting, and after discussion, recommended the City Council amend Morro Bay Municipal Code Section 8.16 on Solid Waste Management to include provisions for collection of delinquent charges such as those in San Luis Obispo and Los Osos. Ms. Burlingame recommended the City Council approve the recommendations suggested by the Public Works Advisory Board. MOTION: Councilmember Peirce moved the City Council approve the recommendations suggested by the Public Works Advisory Board to amend Morro Bay Municipal Code Section 8.16 on Solid Waste ® Management to include provisions for collection of delinquent charges such as those in San Luis Obispo and Los Osos. The motion was seconded by Councilmember Baxley and carried unanimously. (5-0) 11 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — MAY 9, 2005 D4 CONSIDERATION OF COST -SAVING AND REVENUE ENHANCEMENT ALTERNATIVES FOR DIAL -A -RIDE; (ADMINISTRATION) Management Analyst Janeen Burlingame stated the City contracts with a private company to provide the Morro Bay Dial -A -Ride (MBDAR) service. The current fares are $1.00 for a regular one-way ride, $.75 for discount (seniors and mobility -impaired individuals) one-way ride, and children up to the age of 5 years ride free with a fare - paying adult. The last increase to fares occurred sometime around 1990. The Transit Development Plan, adopted in June 1999, recommended a quarter fare increase; however, the City Council did not adopt the fare recommendation at that time. Approximately 92% of funding for MBDAR comes from State Transportation Development Act funds. Rider fares and the general fund make up the remaining 8% of funding sources for DAR service. The need from the general fund to operate MBDAR has vaned over the years ranging from $0 to $47,000. Ms. Burlingame recommended the City Council review the information regarding MBDAR program cost saving and revenue enhancing altematives and take the following actions effective July 1, 2005; eliminate Saturday service; and, adopt the 1999 Transit Development Plan recommended fare structure, increasing fares by a quarter. MOTION: Councilmember Peirce moved the City Council: 1) maintain Saturday ® service with a $2.00 fare and no discounts; 2) increase the regular fare during the weekdays by $.50 ($1.50), and increase the discounted rate for seniors and mobility -impaired individuals during the weekdays by $.25 ($1.00); 3) provide a monthly pass at a rate to be determined; and 4) revisit this item in six months. The motion was seconded by Councilmember Baxley and carried unanimously. (5-0) D-5 ORDINANCE NO. 508 ADOPTING AN URGENCY INTERIM ORDINANCE PROHIBITING THE ESTABLISHMENT OF MEDICAL MARIJUANA DISPENSARIES; (CITY ATTORNEY) City Attorney Robert Schultz stated in November 1996, California voters passed the Compassionate Use Act (the "Act') of 1996, which protects patients, their primary caregivers, and physicians who prescribe marijuana for medical treatment, from criminal prosecution or sanction. In 2003, the State legislature adopted SB420 to clarify the scope and application of the Act and facilitate the prompt identification of qualified patients and their designated primary caregivers in order to avoid unnecessary arrest and prosecution of these individuals and provide needed guidance to law enforcement officers. The Federal Controlled Substances Act prohibits the possession, cultivation, and dispensing of marijuana, regardless of its purpose. There exists a conflict between California and Federal law regarding medical marijuana, and for this reason some cities in California have banned medical marijuana dispensaries, or have adopted moratoria prohibiting ® medical marijuana dispensaries until the law is settled. Currently pending before the United States Supreme Court is a California case (Ashcroft v. Raich) to decide whether Federal law takes precedence over California State law regarding medical marijuana and 12 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — MAY 9, 2005 whether or not medical marijuana users and distributors in California are violating Federal law. Mr. Schultz also noted that existing City zoning, health and safety laws do not provide for the location and/or regulation of medical marijuana dispensaries and such uses might be permissible without oversight in any zone that allows retail uses, drug stores, or medical uses. The Police Chief requested the preparation of an Urgency Interim Ordinance prohibiting the establishment of medical marijuana dispensaries in Morro Bay. Mr. Schultz stated if the City Council desires to prevent such establishment, it should adopt Urgency Interim Ordinance No. 508 to place a 45-day moratorium on the establishment of medical marijuana dispensaries in the City of Morro Bay. MOTION: Councilmember Peirce moved the City Council adopt Urgency Interim Ordinance No. 508 to place a 45-day moratorium on the establishment of medical marijuana dispensaries in the City of Morro Bay. The motion was seconded by Councilmember Baxley and carried with Councilmember DeMeritt voting no. (4-1) D-6 PLANNING DIVISION VACANCIES AND SERVICE REDUCTIONS; (PUBLIC SERVICES) ® Public Services Director Bruce Ambo stated the Planning Division is comprised of three professional planners with well-rounded experience. The division is currently handling 44 active planning cases, 12 advanced planning assignments, 55 building checks, counter coverage, and responds to every request for assistance from applicants and the public. The City Council instituted a hiring freeze when the fiscal year 2004/2005 budget was adopted. The policy set forth in the hiring freeze requires Council approval for the filling of any new or vacant positions while the freeze is in effect. The resignation of the Senior Planner technically creates a vacancy, and if the Associate Planner were promoted, there would still be a vacancy that staff is requesting authorization to fill. Mr. Ambo recommended the City Council consider the pending planning division vacancies and associated reductions in services; authorize staff to promote the Associate Planner to Senior Planner and begin recruitment of one staff position that may be filled at either the Associate Planner or Assistant Planner level; and/or authorize staff to institute reductions in planning services including substantially reduced counter and phone availability hours, reduced Planning Commission meetings, and defer all work on advanced planning studies and analyses until professional planning staff is added. 11 MOTION: Councilmember Winholtz moved the City Council go beyond 11:00 p.m. to finish this item. The motion was seconded by Councilmember Baxley and carried unanimously. (5-0) 13 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — MAY 9, 2005 MOTION: Mayor Peters moved the City Council: 1) authorize staff to advertise the position of Associate Planner; 2) authorize the promotion of the Associate Planner to Senior Planner; and, 3) direct staff to return to Council with a revised schedule for Public Services office hours and Planning Commission meeting schedule. The motion was seconded by Councilmember Peirce. After Council discussion on filling a vacant position during the current budget situation, Councilmember Peirce withdrew his second to the motion. The motion died for lack of a second. MOTION: Councilmember Winholtz moved the City Council authorize staff to institute reductions in planning services including substantially reduced counter and phone availability hours, reduced Planning Commission meetings, and defer all work on advanced planning studies and analyses until professional planning staff is added. The motion was seconded by Councilmember Baxley. Councilmember Peirce stated the motion should include the promotion of the Associate ® Planner to Senior Planner. Councilmember Winholtz did not agree to the amendment. Councilmember Baxley withdrew his second to the motion. The motion died for lack of a second. MOTION: Councilmember Baxley moved the City Council authorize the promotion of the Associate Planner to Senior Planner; and, authorize staff to institute reductions in planning services including substantially reduced counter and phone availability hours, reduced Planning Commission meetings, and defer all work on advanced planning studies and analyses until professional planning staff is added. The motion was seconded by Councilmember Peirce and carried with Mayor Peters and Councilmember Winholtz voting no. (3-2) MOTION: Councilmember Winholtz requested to reconsider Item D-5 (Ordinance No. 508 adopting an Urgency Interim Ordinance Prohibiting the Establishment of Medical Marijuana Dispensaries). The motion died for lack of a second. 1 14 ADJOURNMENT ® The meeting adjourned at 11:10 p.m. Recorded by: 1�0�1 e4e�, Jamie Boucher Deputy City Clerk E E 15 El City of Morro Bay Morro Bay, CA 93442 • 805-772-6200 www. morro-bay.ca. us NOTICE OF SPECIAL MEETING NOTICE IS HEREBY GIVEN that the Morro Bay City Council will be holding a Special Meeting on Wednesday, May 4, 2005 at 6:00 p.m. to be held in the Veterans' Memorial Building, 209 Surf Street, Morro Bay, California. The City Council will be considering the Planning Commission recommendation on the proposed update to the Zoning Ordinance, Zoning Map and accompanying Negative Declaration. DATED: April 28, 2005 FINANCE 595 Harbor Street City Clerk ADMINISTRATION 595 Harbor Street FIRE DEPARTMENT 715 Harbor Street PUBLIC SERVICES 955 Shasta Street HARBOR DEPARTMENT CITY ATTORNEY POLICE DEPARTMENT 1275 Embarcadero Road 955 Shasta Avenue 850 Morro Bay Boulevard RECREATION AND PARKS 1001 Kennedy way ® MINUTES - MORRO BAY CITY COUNCIL SPECIAL MEETING — MAY 4, 2005 VETERANS MEMORIAL HALL — 6:00 P.M. Mayor Peters called the meeting to order at 6:04 p.m. Councilmember DeMeritt led the Pledge of Allegiance. PRESENT:' Janice Peters Mayor Betty Winholtz Vice Mayor Thad Baxley Councilmember Melody DeMeritt Councilmember William Peirce Councilmember STAFF: Robert Hendrix City Manager Bruce Ambo Public Services Director Mike Prater Associate Planner Lynn Casassa Office Assistant IV Mayor Peters called for replies to written responses to previous comments; there were none. Addendum Ib. Mayor Peters called for comments; there were none. Addendum lc. Prater explained it was related to density on large parcels. Mayor Peters called for comments; there were none. Addendum 2 - Commercial and Mixed Use. It was agreed by consensus to support the proposed language. Discussion was heard about providing more than minimum noticing requirement for Mixed Use projects in the downtown area. Mayor Peters stressed the importance of letting the public know what is happening without involving additional staff time. Discussion was also heard about the difference in cost and time between processing administrative permits and those requiring public hearing. The small size of commercial spaces in mixed -use units in the downtown area was discussed. It was agreed to accept staffs proposal for administrative permit changes with Baxley, Peters and Peirce agreeing, and DeMeritt and Winholtz not agreeing. At page 4, number 2-a DeMeritt requested the deletion of `are separate.' Addendum 3 - Environmentally Sensitive Habitat. Ambo pointed out there were no proposed changes in this section. DeMeritt suggested the cross-references on page 5-5 be updated. Mayor Peters opened public hearing; no one came forward. DeMeritt asked why the section entitled `Restricted Area' had been deleted, and Prater said the language appeared under `Open Space.' Addendum 4 - Planned Development (PD) Overlay. Prater said since the section had been previously discussed in bits and pieces, it was presented here with the changes in a proposed final format. Mayor Peters called for questions; there were none, and she opened public hearing. I� Roger Ewing spoke against abolishment of PD Overlays. Ray McKelligott said if a rule didn't 1� require public benefit, it should be done away with. Dorothy Cutter said the most sensitive parts MINUTES — MORRO BAY CITY COUNCIL SPECIAL MEETING — MAY 4, 2005 of the City fall under PD Overlays; there was no original requirement for public benefit; and she encouraged the PD Overlays be left in place. Frank Devine said developers have abused PD Overlays in the past and stricter language is needed. Lynda Merrill said PD Overlays should be used sparingly. Roy Kline said PD Overlays shouldn't be eliminated. Alex Beattie was upset by the use of acronyms in staff communications with the public. He noted listening devices were not mentioned on the agenda nor had he seen them at the meeting; staff pointed them out to him immediately. Bob Tefft felt public benefits are often overlooked and suggested strengthening the link between public and private benefits. Mayor Peters closed public hearing. Discussion was heard as to whether significant changes affecting property owners should be made at this time. Prater said staff's recommendation is to strengthen current PD requirements. Discussion was heard as to the options Prater named as well as public vs. private benefits. Prater pointed out that sections g through j were added to help strengthen existing language. Ambo explained no changes were being made except that only those meeting the minimum lot requirement of .4 acres could participate. He further explained that the rights of those on less than .4 acres would be lost if this proposal was adopted. DeMeritt said she didn't like the idea of the word `deviations' because it may lead to the idea of exception or swapping. She said only the City, not developers, should select and enforce PD sites. Peirce asked Ambo to explain public benefits as part of the process. Ambo said staff s recommended option will mean more accountability and will set limits on exceptions as shown on ® page 2. Staff tried to quantify the public benefit which has never been attempted before. Discussion was heard as to the procedure for eliminating Zoning Ordinance sections and whether or not changes could occur en masse, none of which would affect the existing document going to the Coastal Commission. Mayor Peters asked Ambo to return to the next special meeting with that information. 1 MOTION: Winholtz, DeMeritt 2"d to eliminate Planned Development Overlays. Vote: 5-0. Mayor Peters declared a break, and the meeting resumed at 7:35. Hillsides - Coastal Bluffs, and Bayfront Bluffs. Prater reviewed the existing changes and said the proposed Hillside requirements would be used anywhere exceeding a 10% slope. The Mayor opened public comment. Dorothy Cutter said the bluff in south Morro Bay is not hard to locate and was concerned the regulations will become too lenient. Alex Beattie said the City must protect the bluffs. S. Marie Schnevzki suggested the rules not be changed and read aloud comments which Ambo pointed out were not prepared by staff. Frank Devine said he's not in favor of anything that would diminish the bluff. Bob Tefft said the bayfront bluff could be seen from the southernmost point of Tidelands Park. Ray McKelligott asked that bluff standards be left alone. Lynda Merrill, Roy Kline, and Nancy Kerr agreed with McKelligott. Peters closed public hearing and asked staff for a more precise definition of each category. 2 MINTUTES — MORRO BAY CITY COUNCIL SPECIAL MEETING — MAY 4, 2005 Prater said staff proposed two new names: Coastal Bluffs and Bayfront Bluffs, north and south of the power plant, respectively, and incorporating the new Hillside requirements wherever applicable, waterfront or not. He explained no names were previously designated for hillsides or bluffs. Discussion was heard as to the pros and cons of using conditional use permits (CUP). Discussion was heard regarding page II-9, paragraph F, sentence 2 of the draft document. Prater said `may' was used pursuant to Department of Fish & Game regulations. It was agreed by consensus that staff will come back with whether or not to change this to `shall.' Discussion was heard about preservation of the bluff buffer with Winholtz for it and Baxley and Pence against. Discussion was heard as to how hillsides are dealt with in the existing General Plan. Prater noted the consultant allowed for no inconsistencies between the proposed Zoning Ordinance and the General Plan. It was determined discrepancies will prevail along the waterfront without CUPS, and Prater offered to add discretionary review if the PD overlay was going to be removed. It was agreed to make Surf Street the southern boundary for the Coastal Bluffs area. It was agreed to make Surf Street the northern boundary for the Bayfront Bluffs. ® It was agreed to apply Hillside standards wherever a slope of ten percent or greater existed. At 9:03 p.m. Mayor Peters adjourned to the next regular meeting of May 9, 2005, and continued the Zoning Ordinance Draft review to the Special Council Meeting of June 7, 2005. ® 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 25, 2005 CLOSED SESSION — APRIL 25, 2005 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: 460 Chorro Creek Road ® Negotiating Parties: City and Lawrence & Pamela Flood Negotiations: Easement Agreement Property: Lease Site: Outfall Line Negotiating Parties: City and Duke Energy Negotiations: Lease Terms and Conditions CS-2 GOVERNMENT CODE SECTION 54956.9; 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. • Parties: City of Morro Bay and Duke Energy Issue: Filing of Unlawful Detainer Action to Evict Duke from the Out Fall Line. CS-3 GOVERNMENT CODE SECTION 54957.6: CONFERENCE WITH LABOR NEGOTIATOR Conference with City Manager, the City's Designated Representative, for the purpose of reviewing the City's position regarding the terms and compensation paid to employees and giving instructions to the Designated Representative. ® IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. PUBLIC SESSION — APRIL 25, 2005 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 MINUTES FOR THE APRIL 11, 2005 REGULAR MEETING; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 INVESTMENT REPORT FOR MARCH 2O05; (FINANCE) ® RECOMMENDATION: Receive for information. A-3 PROCLAMATION DECLARING MAY 2005 AS "MORRO BAY VOLUNTEER MONTH'; (RECREATION & PARKS) RECOMMENDATION: Adopt Proclamation. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 RESOLUTION NO. 15-05 INITIATING PROCEEDINGS TO LEVY THE ANNUAL ASSESSMENT FOR THE CLOISTERS LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT; (RECREATION & PARKS) RECOMMENDATION: Adopt Resolution No. 15-05. B-2 RESOLUTION NO. 16-05 INITIATING PROCEEDINGS TO LEVY THE ANNUAL ASSESSMENT FOR THE NORTH POINT LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT; (RECREATION & PARKS) ® RECOMMENDATION: Adopt Resolution No. 16-05. B-3 ORDINANCE NO. 507 TO AMEND THE LOCAL COASTAL PROGRAM AND ZONING ORDINANCE (MBMC TITLE 17) RELATING TO THE SECOND DWELLING UNIT/GUEST HOUSE PROVISIONS WITHIN THE CITY LIMITS OF MORRO BAY - INTRODUCTION AND FIRST READING; (PUBLIC SERVICES) RECOMMENDATION: Approve first reading and introduction of Ordinance No. 507. B4 REPORT ON PUBLIC SERVICES FEE STUDY, POTENIAL FEE ADJUSTMENTS AND COST RECOVERY ISSUES; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 18-05 approving changes to the Master Fee Schedule. C. UNFINISHED BUSINESS C-1 CONSIDERATION OF PUBLIC WORKSHOP ON DOWNTOWN DESIGN; (PUBLIC SERVICES) Is RECOMMENDATION: Discuss and direct staff accordingly. D. NEW BUSINESS D-I DISCUSSION ON COUNCIL PREPARATION FOR CAYUCOS SANITARY ® DISTRICT JOINT POWERS AUTHORITY MEETINGS; (CITY COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. D-2 RESOLUTION NO. 17-05 ADOPTING THE FISHERMEN'S DOCK LEASE RENEWAL AT LEASE SITE 130W-132W LOCATED AT 1235 EMBARCADERO; (HARBOR) RECOMMENDATION: Adopt Resolution No. 17-05. D-3 DISCUSSION ON THE FUTURE USE OF RECENTLY -VACATED CITY PROPERTY AT THE WESTERLY END OF TIDELANDS PARK: (RECREATION & PARKS) RECOMMENDATION: Discuss and direct staff accordingly. D-4 CONSIDERATION OF SENDING A. COUNCIL PERSON TO THE LEAGUE OF CALIFORNIA CITIES "ACTION DAYS'; (CITY COUNCIL) RECOMMENDATION: Consider sending Mayor Peters to the League of California Cities "Action Days" in Sacramento on May 11-12, 2005. D-5 DISCUSSION TO CONSIDER AND SCHEDULE ADDITIONAL BUDGET WORKSHOP; (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 IINtC17f0"grej A 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. C ® MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION — APRIL 25, 2005 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Peters 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 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 Peters 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: 460 Chorro Creek Road Negotiating Parties: City and Lawrence & Pamela Flood Negotiations: Easement Agreement Property: Lease Site: Outfall Line Negotiating Parties: City and Duke Energy Negotiations: Lease Terms and Conditions CS-2 GOVERNMENT CODE SECTION 54956.9; 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. Parties: City of Morro Bay and Duke Energy Issue: Filing of Unlawful Detainer Action to Evict Duke from the Out Fall Line. 11 ® CS-3 GOVERNMENT CODE SECTION 54957.6; CONFERENCE WITH LABOR NEGOTIATOR. Conference with City Manager, the City's Designated Representative, for the purpose of reviewing the City's position regarding the terms and compensation paid to employees and giving instructions to the Designated Representative. The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 6:00 p.m. MOTION: Councilmember Peirce moved the meeting be adjourned. The motion was seconded by Councilmember Baxley and unanimously carried. (5-0) The meeting adjourned at 6:00 p.m. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 25, 2005 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Peters called the meeting to order at 6:00 p.m PRESENT: Janice Peters Mayor Thad Baxley Councilmember Melody DeMeritt Councilmember William Peirce Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix Robert Schultz Bridgett Bauer Rick Algert Bruce Ambo Frank Cunningham Tim Olivas Mike Pond Mike Prater Bruce Keogh Jim Koser Andrea Lueker City Manager City Attorney City Clerk Harbor Director Public Services Director City Engineer Acting Police Chief Fire Chief Associate Planner 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 stated the next Neighborhood Watch informational meeting is scheduled for April 27`s; guest speakers are School Resource Officer Marc Godfrey who will speak on DARE and the Juvenile Diversion Program, and Hank Roth who will be speaking on crime prevention. Greg Smith, State Department of Parks and Recreation, gave an update on the renovation project in the Morro Bay State Parks Campground. He noted the campground would be open for Memorial Day weekend. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 25, 2005 Ken Vesterfelt stated the Morro Bay Car Show is sold out with over 500 cars participating. He said the abandoned car issue is growing, and he suggested a group be formed to address this issue. Mr. Vesterfelt sated the budget should be addressed as soon as possible, noting the safety of the City is in jeopardy and the citizens need to know what is going on. Dannie Tope, Member of the Merchants Association, stated affordable housing is needed for people who are employed in Morro Bay, and requested the City Council not alter the secondary housing ordinance. She noted a fund-raising effort would be held to collect funding for the 4`h of July fireworks and festivities, and donations are welcome. Ms. Tope addressed the budget and stated the City should not cut police and fire department funds. Keith Taylor, Friends of the Fire Department, thanked'Council for approving Phase I of the proposed fire station. Lynda Merrill expressed support for Item D-5 (Discussion to Consider and Schedule Additional Budget Workshop). She also announced for public information that a Special Council Meeting will be held on May 4`h to review the zoning ordinance. Betty Forsythe stated when remodeling her home she had to place a sidewalk in front of her home as a condition of her remodel; she said she is pleased with this condition. She also announced the Friends of the Library will be sponsoring an Arbor Day Celebration on April 29a'. Graham Phake, Reserve Firefighter, stated the Fire Department responded to three different calls yesterday at the same time requiring a paramedic at each call. Ann Marie Chancellor addressed Item B-3 (Ordinance No. 507 to Amend the Local Coastal Program and Zoning Ordinance Relating to the Second Dwelling Unit/Guest House Provisions Within the City Limits Of Morro Bay) stating affordable housing is needed in Morro Bay. Nancy Castle announced the Historical Society Quarterly Meeting would be held on Sunday, May ls`. Roy Kline stated when considering proposed projects, the Council should consider mixed -use commercial/residential uses. Frank DeVine submitted comments on the project located at 600 Morro Bay Boulevard to the City Council. He said to preserve fairness and equality of the process, preferential ® treatment for popular public figures should never be permitted. 2 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 25, 2005 Stan House expressed support for Item D-2 (Resolution No. 17-05 Adopting the Fishermen's Dock Lease Renewal at Lease Site 130W-132W Located at 1235 Embarcadero). Mayor Peters closed the hearing for public comment. DECLARATION OF FUTURE AGENDA ITEMS Councilmember Winholtz requested to agendize a roundtable discussion with City Council, Planning Commission and Planning staff on cooperative housing; Mayor Peters concurred. Councilmember DeMeritt requested to agendize: 1) a status report on a fire facility fee; 2) tracking on directional signage; and 3) review of the inventory on the commercial space along Highway 1/Quintana Road; Councilmember Peirce concurred. Mayor Peters requested to agendize: 1) letter ratifying the salmon fishery closures (Councilmember Winholtz concurred); and 2) the County -wide sales tax issue. ® 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 APRIL 11, 2005 REGULAR MEETING; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 INVESTMENT REPORT FOR MARCH 2O05; (FINANCE) RECOMMENDATION: Receive for information. A-3 PROCLAMATION DECLARING MAY 2005 AS "MORRO BAY VOLUNTEER MONTH'; (RECREATION & PARKS) RECOMMENDATION: Adopt Proclamation. Councilmember DeMeritt pulled Item A-2 of the Consent Calendar; Mayor Peters pulled Item A-3. 5 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — APRIL 25, 2005 MOTION: Councilmember Winholtz moved the City Council approve Item A-1 of the Consent Calendar. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) A-2 INVESTMENT REPORT FOR MARCH 2O05; (FINANCE) Councilmember DeMeritt requested staff clarification on the trends of the LAIF activity. Finance Director Jim Koser stated these are normal transactions that occur at this time of year in order to provide funding for planned budgeted expenses. 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-3 PROCLAMATION DECLARING MAY 2005 AS "MORRO BAY VOLUNTEER MONTH'; (RECREATION & PARKS) Mayor Peters pulled this item for public acknowledgement of Morro Bay's volunteers. ® MOTION: Mayor 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) Mayor Peters called for a break at 7:05 p.m.; the meeting resumed at 7:15 p.m. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 RESOLUTION NO. 15-05 INITIATING PROCEEDINGS TO LEVY THE ANNUAL ASSESSMENT FOR THE CLOISTERS LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT; (RECREATION & PARKS) Recreation & Parks Director Andrea Lueker stated on July 8, 1996, the City Council accepted lots 121 and 122 of the Cloisters Subdivision, 34 acres of open space and organized park. On September 23, 1996, the City Council adopted Resolution No. 69-96, which accepted the final map for Tract 1996 known as the Cloisters Subdivision, consisting of 124 lots. 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 formation on September 23, 1996, which levied the annual assessment of $148,944 for R ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 25, 2005 the maintenance of the 34 acres of park and open space. On January 26, 1998, the City Council adopted Resolution No. 10-98 which accepted the public improvements for Cloisters Tract 1996. Although the public improvements were completed, the developer was responsible for their maintenance for the one-year warranty period, with the City taking over the maintenance of the area on January 26, 1999. After the initial formation of the assessment district, each year beginning in April/May, the City must hold a series of three public hearings to confirm the levy of assessment for the upcoming fiscal year. The first public hearing initiates the annual levy process and directs the preparation of an Engineers Report, the second hearing approves the Engineer's Report and notices the intent to levy the assessment and the third public hearing actually levies the assessment for the upcoming fiscal year. The Cloisters Landscaping and Lighting Maintenance Assessment District is a separate fund from all other City funds and can only be expended for "improvements" authorized for the district. Once set, the annual assessment is transmitted to the County Auditor for recordation on the Council assessment role. The assessment amount will then appear each year on the parcel owners' property tax bill. In conformance with Proposition 218, "The Right to Vote on Taxes Act," passed in 1996 by the voters in the State of California, the Cloisters ® Landscaping and Lighting Maintenance Assessment District was approved by 100% of the owners for which the assessment is to be levied. All property owners were fully apprised of the costs and benefits associated with the district, prior to its approval by them. Ms. Lueker recommended the City Council adopt Resolution No. 15-05 ordering the preparation of an Engineer's Report detailing the expenses projected for Fiscal Year 2005-06 for the maintenance of the Cloisters Park and Open Space. 11 Mayor Peters opened the hearing for public comment. The following people expressed opposition to the adoption of Resolution No. 15-05 ordering the preparation of an Engineer's Report detailing the expenses projected for Fiscal Year 2005-06 for the maintenance of the Cloisters Park and Open Space: Kerrigan Mayhan; Melanie Mayhan, and John Lauffer. Lynda Merrill stated with the current budget situation, the Council should approve this assessment fee. Mayor Peters closed the public comment hearing. Consensus of Council is to continue levying the annual assessment of the Cloisters Landscaping and Lighting Maintenance Assessment District. 7 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — APRIL 25, 2005 MOTION: Councilmember Peirce moved the City Council adopt Resolution No. 15-05 ordering the preparation of an Engineer's Report detailing the expenses projected for Fiscal Year 2005-06 for the maintenance of the Cloisters Park and Open Space. The motion was seconded by Councilmember Baxley and carried unanimously. (5-0) B-2 RESOLUTION NO. 16-05 INITIATING PROCEEDINGS TO LEVY THE ANNUAL ASSESSMENT FOR THE NORTH POINT LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT; (RECREATION & PARKS) Recreation & Parks Director Andrea Lueker stated on June 27, 1994, the City Council accepted Lot I of the North Point Subdivision and accepted the final map for Tract 2110. As per the conditions of approval, a Landscaping and Lighting Maintenance Assessment District was formed for the ongoing maintenance of the 1.3-acre natural area. The area includes a non -irrigated meadow area, decomposed granite and asphalt walkways, a stairway/beach access, parking lot, drip irrigation system, public access signage and parking lot. On December 9, 1996, the City Council adopted Resolution No. 89-96 which ordered the formation of the North Point Landscaping and Lighting ® Maintenance Assessment District and confirmed the yearly assessment of $5,645. On January 13, 1997, the City Council adopted Resolution No. 01-97 which approved and accepted the on- and off -site improvements for Tract 2110. By adoption of Resolution No. 01-97, the City officially started the maintenance of the North Point Natural Area_ The North Point Natural Area Landscaping and Lighting Maintenance Assessment District is a separate fund from all other City funds and can only be expended for "improvements" authorized for the District. Once set, the annual assessment is transmitted to the County Auditor for recordation on the Council assessment role. The assessment amount will then appear each year on the parcel owners' property tax bill. In conformance with Proposition 218, "The Right to Vote on Taxes Act," passed in 1996 by the voters in the State of California, the North Point Natural Area Landscaping and Lighting Maintenance Assessment District was approved by 100% of the owners for which the assessment is to be levied. All property owners were fully apprised of the costs and benefits associated with the district, prior to its approval by them. Ms. Lueker recommended the City Council adopt Resolution No. 16-05 ordering the preparation of an Engineer's Report detailing the expenses projected for Fiscal Year 2005-06 for the maintenance of the North Point Natural Area. Mayor Peters opened the hearing for public comment. Lynda Merrill stated with the current budget situation, the Council should approve this assessment fee. n MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — APRIL 25, 2005 Mayor Peters closed the public comment hearing. MOTION: Councilmember Peirce moved the City Council adopt Resolution No. 16-05 ordering the preparation of an Engineer's Report detailing the expenses projected for Fiscal Year 2005-06 for the maintenance of the North Point Natural Area. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) B-3 ORDINANCE NO. 507 TO AMEND THE LOCAL COASTAL PROGRAM AND ZONING ORDINANCE (MBMC TITLE 17) RELATING TO THE SECOND DWELLING UNIT/GUEST HOUSE PROVISIONS WITHIN THE CITY LIMITS OF MORRO BAY - INTRODUCTION AND FIRST READING; (PUBLIC SERVICES) Associate Planner Mike Prater stated at the April 11, 2005 meeting, Council directed staff to bring back revised regulations regarding the maximum size of second dwelling units under two different processes that include ministerial approval by staff if all standards are met, and a Conditional Use Permit if the request is for a larger unit or parking exception. Council also directed staff to make minor editorial changes for clarification. Mr. Prater ® recommended the City Council: 1) open the hearing for public comment; 2) accept the Planning Commission recommendation to adopt the proposed ordinance amendments with modifications directed at the April I Ph meeting that would allow for ministerial secondary dwelling units in residential zones; 3) approve the Negative Declaration; 4) make a motion to approve the first reading and introduction of Ordinance No. 507 by number and title only; and 5) continue this matter to the regular meeting of May 9, 2005 to conduct the second reading and adoption of Ordinance No. 507. Mayor Peters opened the hearing for public comment. John Barta stated granny units do not cause the parking problem; and, higher density zones should be considered. Lynda Merrill stated this proposed ordinance is in keeping with citizens and neighborhoods good quality of life. She said this ordinance is fair and equitable adjustment to the current ordinance. Roy Kline stated North Morro Bay is already congested, and he supports maintaining the 30% lot coverage. Mayor Peters closed the public comment hearing. E ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 25, 2005 Councilmember Peirce stated parking would always be an issue. He said he sees no problem with having a granny unit if there is legitimate space and can provide parking. Councilmember Peirce stated he does not feel the 30% lot coverage is necessary. Councilmember Winholtz stated secondary units should maintain the 30% lot coverage. She said she is concerned with the inconsistencies in the zoning, which should be cleaned up; and, suggested removal of the CCR zone on Attachment 1. Councilmember Baxley stated the 30% lot coverage would severely restrict the small lots and small houses in the City; whereas, the 50% lot coverage would allow a dwelling that is half the size of the primary dwelling which meets the criteria. He suggested if someone wants a 900 square foot dwelling that would require an over-the-counter permit with a 50% limitation. If someone wants a dwelling that is larger than 900 square feet or 50% of the existing living areas of the primary living unit, then a Conditional Use Permit would be required with a review by the Planning Commission. Councilmember DeMeritt stated the City should preserve small older homes in the City; and the 50% rule would help restore smaller homes. Mayor Peters stated lot coverage would be based on zoning. She said she supports the 50% lot coverage, and noted the CC&R's should be left in. MOTION: Councilmember Baxley moved the City Council: 1) accept the Planning Commission's recommendations to adopt the proposed Ordinance No. 507 with the amendments made by the City Council at the April 11, 2005 meeting; 2) further amend Attachment 1, Section C to read "The maximum floor area of a second unit shall not exceed 900 square feet, or 50% of the existing or proposed living areas of the primary dwelling unit ...'; 3) approve the Negative Declaration; and, 4) return the introduction and first reading of Ordinance No. 507 to the May 9, 2005 City Council meeting. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) Mayor Peters called for a break at 8:15 p.m.; the meeting resumed at 8:25 p.m. B-4 REPORT ON PUBLIC SERVICES FEE STUDY, POTENIAL FEE ADJUSTMENTS AND COST RECOVERY ISSUES; (PUBLIC SERVICES) Public Services Director Bruce Ambo stated the City Council discussed this item in June, July and August 2004. There was concern among Council that the increases outlined in the fee study were substantial in many cases, and in a few cases overcharges were ® identified, and/or new fees were added that are not currently charged. A comparative I1. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 25, 2005 analysis of fees in other jurisdictions was conducted and found that the Morro Bay fees were in most cases considerably lower, and even if increased to the extent recommended by the consultant, would be on par with other similar jurisdictions. Staff was directed to reexamine the fees and return with a more limited program of potential fee increases in either fee amount or type of fee. On August 23, 2004, the Council increased seven key planning fees that generally accounts for about 80% of the workload. These fees include: 1) Conditional Use Permits; 2) Minor Use Permits; 3) Coastal Permits — Administrative; 4) Variance Applications; 5) Variances with other Permits; 6) Tentative Parcel Maps; and 7) Tentative Tract Maps. Increasing development fees places more of the cost burden on those directly benefiting from the development proposal and reduces the general public expense or subsidy. Funds currently subsidizing development review and related activities could be spent on other critical General Fund services including emergency services, recreation, road repair, transit, and the like. Nearly all of Morro Bay's fees are comparatively lower than similar jurisdictions, and with the fee increases, would be on par with other communities. Mr. Ambo recommended the City Council open the public hearing and receive input on the recommended Public Services fee increases; provide further direction on other fee increases or reductions deemed appropriate; and, adopt Resolution No.18-05 adopting changes to the Morro Bay Master Fee Schedule. ® Mayor Peters opened the hearing for public comment. 1 Cathy Novak requested the City Council proceed with caution when considering these fees. She noted there are some cases where a variance is due to location of the house. Ms. Novak requested Council do not go across the board with these fees. Mayor Peters closed the public comment hearing. Consensus of the City Council was to increase the appeal fee by 20% in order to maintain citizen participation. MOTION: Councilmember Winholtz moved the City Council adopt Resolution No. 18-05 approving the Public Services Master Fee Schedule with a 20% increase to the appeal fees. The motion was seconded by Councilmember DeMeritt and carried with Councilmember Baxley voting no. (4-1) 11 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — APRIL 25, 2005 C. UNFINISHED BUSINESS C-1 CONSIDERATION OF PUBLIC WORKSHOP ON DOWNTOWN DESIGN; (PUBLIC SERVICES) Public Services Director Bruce Ambo stated the topic of downtown development and visioning was originally raised on November 8, 2004 when the City Council added a future agenda item for discussion on the review process for mixed -use projects. Mixed - use projects are a key component and tool to revitalizing a community and strengthening its downtown. In an effort to avoid incrementally isolating certain portions of the codelpolicies without regard to other areas that may be affected, staff has provided the attached memo that identifies an opportunity to develop a long-term vision for the downtown area, which includes an emphasis and reliance on mixed -use projects. In many instances, the current code is a product of years of incremental amendments that have caused a ripple of unintended consequences in our regulatory framework. Other influences on downtown mixed -use projects involve zoning and development standards, affordable housing, parking provisions, economic development and redevelopment incentives, retail/commercial/residential mix, identity branding, and the like. Looking only at mixed -use projects without clear expectations on the overall context of downtown ® development may only get at part of the problems and could cause others to arise. Mr. Ambo recommended the City Council discuss this item and provide direction accordingly. 11 Councilmember DeMeritt stated she would like to encourage businesses in the downtown area that attract visitors, instead of service -oriented businesses. She said she is encouraged that downtown merchants want to enhance the downtown businesses. Councilmember DeMeritt stated a consultant is not necessary to assist in enhancing the downtown. Councilmember Peirce stated the City needs help with the design criteria of the downtown area. He said he would like to have another RUDAT study prepared. Councilmember Winholtz stated the merchants have an idea of what they would like to see in the downtown area, and the City should consider their ideas before a formal design is considered. Councilmember Baxley stated the City should tweak the developers in order to come up with a product that the City likes, and they pay for it. He said this should be done after the budget and zoning ordinance is approved. 12 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — APRIL 25, 2005 Mayor Peters stated bathrooms and parking are currently the most important issues in the downtown area. She said the parking in -lieu funds could be used for parking in downtown area. The City Council requested staff track this public workshop for September 2005. No further action was taken on this item. D. NEW BUSINESS D-1 DISCUSSION ON COUNCIL PREPARATION FOR CAYUCOS SANITARY DISTRICT JOINT POWERS AUTHORITY MEETINGS; (CITY COUNCIL) WWTP Manager Bruce Keogh stated at the April 11, 2005 City Council meeting, there was discussion concerning the issue of reviewing the Joint Powers Agreement (JPA) agenda packet at a City Council meeting prior to the next JPA meeting. This report deals with the preparation of the City Council for JPA meetings with the Cayucos Sanitary District. Per the JPA, the City and Council and the Sanitary District Board "shall regularly schedule joint meetings of their respective bodies at least quarterly to discuss ® and provide policy direction". Currently, JPA agenda packets are distributed two weeks prior to the JPA meeting. If Council Members have questions about items in the agenda packet, the Council Member can contact staff to request additional information. The City Council has not previously held a formal meeting to consider the JPA meeting agenda items prior to the actual meeting. The Council has occasionally met in Closed Session on specific issues prior to a JPA meeting. The Cayucos Sanitary District at present has no formal policy in place regarding meeting prior to the JPA meeting. However, the District does regularly meet to review and discuss the agenda packet. This is done to ensure that the Board members are prepared prior to attending the JPA meeting. This preparation has on many occasions allowed the District to present a unified voice related to decision at the joint meeting. In general, the District discusses the JPA agenda packet at their regularly scheduled meeting date. Sometimes the District will also schedule a special meeting just prior to the JPA meeting. Mr. Keogh recommended the City Council review the alternatives, and provide staff with direction for Council preparation for the JPA meetings with the Cayucos Sanitary District. Consensus of the City Council was to schedule a pre -meeting two hours prior to. the meeting with the Cayucos Sanitary District. No further action was taken on this item. 11 13 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 25, 2005 D-2 RESOLUTION NO. 17-05 ADOPTING THE FISHERMEN'S DOCK LEASE RENEWAL AT LEASE SITE 130W-132W LOCATED AT 1235 EMBARCADERO; (HARBOR) Harbor Director Rick Algert stated in early 2004, the City purchased the equipment/assets of Driscoll's Wharf Morro Bay on Lease Sites 129W-133W. On April 12, 2004, the City approved a one-year lease with the Morro Bay Commercial Fisherman's Organization (MBCFO) for operation of a community fish buying station on Lease Sites 130W-132W. Lease Site 129W is dedicated to development of an ice - making machine for the commercial fishing industry and Lease Site 133 W holds the fish market building, which was leased separately to another party. The MBCFO staff is proposing a continuation of the exiting operation on Lease Site 130W-132W. Ultimately, staff and MBCFO hope to work up a plan to pay the City's harbor fund back for the cost of the equipment/assets purchased in 2004 if this business arrangement is to continue into the long-range future. The MBCFO has done a good job operating the dock, but the uncertainties of the commercial fishing industry and the financial result of the first year do not merit any thing other than a carryover of existing terms at this time. Mr. Algert recommended the City Council adopt Resolution No. 17-05 authorizing the Mayor to execute a new lease agreement with the MBCFO to continue their operations at the ® Fisherman's Dock located at Lease Site 130W-132W, 1235 Embarcadero. MOTION: Councilmember Baxley moved the City Council Adopt Resolution No. 17- 05 approving the Fishermen's Dock Lease Renewal at Lease Site 130W- 132W located at 1235 Embarcadero. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) D-3 DISCUSSION ON THE FUTURE USE OF RECENTLY -VACATED CITY PROPERTY AT THE WESTERLY END OF TIDELANDS PARK; (RECREATION & PARKS) Recreation & Parks Director Andrea Lucker stated in 2002, City staff became aware that the Tidelands Park fence constructed at the time of the Tidelands Park boundary settlement agreement in the mid-1980's actually enclosed a small portion of City - managed Tidelands property. During the Tidelands Park boundary settlement negotiation in the early 1980's, the three property owners of the homes above the approximately 5,000 square feet of land in question desired to maintain use of the Tidelands in front of their homes for the life of the settlement agreement (25 years ending in 2008). It was detailed in the boundary settlement agreement that the City would construct the fence to enclose the 5,000 square feet and they were to sign a lease and pay a fixed rent of approximately $900 per year. Unfortunately, final execution of the leases and collection of rent did not occur. The City corresponded with the property owners and offered to ® recommend Council approval if they would pay back rent. Apparently, the property 14 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 25, 2005 ownership situation was a surprise to the property owners and they declined the City's offer. In July 2004, the property owners were sent a demand to vacate the property. The property has now been vacated and the City has constructed a new fence on the true boundary between the private upland parcels and the Tidelands. The old fence remains in place at this time so a difference may not have been noticed even by looking at the very southern comer of the boat launch ramp area. Ms. Lueker recommended the City Council direct staff to remove only the old fence and open the area to passive recreation, leaving the existing parking spaces and not completing any improvements to the area until funding becomes available. MOTION: Councilmember Peirce moved the City Council direct staff to remove only the old fence and open the area to passive recreation, leaving the existing parking spaces and not completing any improvements to the area until funding becomes available. The motion was seconded by Councilmember Baxley and carried with Councilmember Winholtz voting no. (4-1) D4 CONSIDERATION OF SENDING A COUNCIL PERSON TO THE LEAGUE OF CALIFORNIA CITIES "ACTION DAYS'; (CITY COUNCIL) ® MOTION: Councilmember Winholtz moved the City Council authorize Mayor Peter's attendance at the League of California Cities "Action Days". The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) D-5 DISCUSSION TO CONSIDER AND SCHEDULE ADDITIONAL BUDGET WORKSHOP; (CITY COUNCIL) The City Council scheduled a Budget Workshop for May 16, 2005 starting at 6:00 p.m. and to be held in the Community Center Multi -Purpose Room. ADJOURNMENT The meeting adjourned at 10:11 p.m. Recorded by: Bridgett Bauer City Clerk 11 15 ® 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 11, 2005 CLOSED SESSION — APRIL 11, 2005 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: Lease Site: Outfall Line Negotiating Parties: City and Duke Energy Negotiations: Lease Terms and Conditions CS-2 GOVERNMENT CODE SECTION 54956.9. 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. , • Parties: City of Morro Bay and Duke Energy Issue: Filing of Unlawful Detainer Action to Evict Duke from the OutFall Line. CS-3 GOVERNMENT CODE SECTION 54957.6; CONFERENCE WITH LABOR NEGOTIATOR. Conference with City Manager, the City's Designated Representative, for the purpose of reviewing the City's position regarding the terms and compensation paid to employees and giving instructions to the Designated Representative. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ® ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. ® PUBLIC SESSION — APRIL 11, 2005 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 MINUTES FOR THE MARCH 14, 2005 AND MARCH 28, 2005 REGULAR MEETINGS; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 RESOLUTION NO. 13-05 APPROVING ACCEPTANCE OF FINAL MAP FOR APPROVED FIVE -LOT RESIDENTIAL DEVELOPMENT LOCATED AT 2756 ALDER AVENUE; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 13-05. A-3 APPOINTMENT OF VOTING DELEGATES TO THE CALIFORNIA JOINT POWERS INSURANCE AUTHORITY; (ADMINISTRATION) RECOMMENDATION: Appoint Mayor Peters as the official representative of the City on the California Joint Powers Insurance Authority; and, appoint the City Manager, City Attorney and Finance Director as alternates. A-4 RESOLUTION NO. 14-05 APPROVING ASSIGNMENT OF THE LEASE AGREEMENT FOR LEASE SITE 52-52W (TENANT REG WHIBLEY, ASSOCIATED PACIFIC CONSTRUCTORS) AT 495 EMBARCADERO; (HARBOR) ® RECOMMENDATION: Adopt Resolution No. 14-05. A-5 PROCLAMATION DECLARING APRIL 29, 2005 AS "ARBOR DAY'; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. A-6 PROCLAMATION DECLARING APRIL 2005 AS "MONTH OF THE CHILD"; (RECREATION & PARKS) RECOMMENDATION: Adopt Proclamation. A-7 PROCLAMATION DECLARING APRIL 2005 AS "FINANCIAL LITERACY MONTH'; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. 11 3 ® B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-I RESOLUTION NO. 12-05 APPROVING HARBOR DEPARTMENT COST OF LIVING ADJUSTMENTS TO FEES AND SERVICE CHARGES; (HARBOR) RECOMMENDATION: Adopt Resolution No. 12-05. B-2 ORDINANCE NO. 507 AMENDING THE LOCAL COASTAL PROGRAM AND ZONING ORDINANCE (MORRO BAY MUNICIPAL CODE TITLE 17) RELATING TO THE SECOND DWELLING UNIT/GUEST HOUSE PROVISIONS WITHIN THE CITY LIMITS OF MORRO BAY - INTRODUCTION AND FIRST READING; (PUBLIC SERVICES) RECOMMENDATION: Approve first reading and introduction of Ordinance No. 507. B-3 APPEAL OF THE PLANNING COMMISSION'S DENIAL OF A SETBACK VARIANCE AT 3190 MAIN STREET; (PUBLIC SERVICES) RECOMMENDATION: Deny the appeal and uphold the Planning Commission's decision to deny the variance. B-4 PUBLIC HEARING ON PROPOSED UPDATE TO THE ZONING ® ORDINANCE, ZONING MAP AND ACCOMPANYING NEGATIVE DECLARATION; (PUBLIC SERVICES) RECOMMENDATION: Open the public hearing; identify suggested changes; and, continue the public hearing to a special meeting on a date to be determined by Council. C. UNFINISHED BUSINESS — NONE. D. NEW BUSINESS D-I REPORT FROM CONSULTANT PRESENTING FIRE STATION 53 DESIGN CONCEPT; (FIRE) RECOMMENDATION: Receive report from consultant; and, direct staff to proceed with the applications for permits and preparation for construction plans, specifications and estimates for the replacement apparatus bay based upon the wood -framed construction option and final design report. D-2 DISCUSSION OF COST -SAVING ALTERNATIVES FOR TROLLEY PROGRAM; (ADMINISTRATION) RECOMMENDATION: Discuss and direct staff accordingly. C! ® D-3 REPORT ON CREEK MAINTENANCE AND FLOOD PROTECTION; (PUBLIC SERVICES) RECOMMENDATION: Discuss and direct staff accordingly. D-4 CONSIDERATION OF PUBLIC WORKSHOP ON DOWNTOWN DESIGN; (PUBLIC SERVICES) RECOMMENDATION: Discuss and direct staff accordingly. D-5 APPROVAL OF SETTLEMENT AGREEMENT BETWEEN THE CITY OF MORRO BAY AND DAVID AND DIANA RAVINS; (CITY ATTORNEY) RECOMMENDATION: Approve the settlement agreement between the City and David and Diana Ravins. 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. 11 MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION — APRIL 11.2005 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Peters called the meeting to order at 5:00 p.m. PRESENT: Janice Peters Mayor ABSENT: STAFF CLOSED SESSION Thad Baxley Melody DeMeritt Betty Winholtz William Peirce Robert Hendrix Robert Schultz Councilmember Councilmember Councilmember Councilmember City Manager City Attorney MOTION: Councilmember Baxley moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Winholtz and unanimously carried. (4-0) Mayor Peters 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: Lease Site: Outfall Line Negotiating Parties: City and Duke Energy Negotiations: Lease Terms and Conditions CS-2 GOVERNMENT CODE SECTION 54956.9; 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. Parties: City of Morro Bay and Duke Energy Issue: Filing of Unlawful Detainer Action to Evict Duke from the OutFall Line. CS-3 GOVERNMENT CODE SECTION 54957.6; CONFERENCE WITH LABOR NEGOTIATOR Conference with City Manager, the City's Designated Representative, for the purpose of reviewing the City's position regarding the terms and compensation paid to employees and giving instructions to the Designated Representative. u The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:50 p.m. MOTION: Councilmember Baxley moved the meeting be adjourned. The motion was seconded by Councilmember DeMeritt and unanimously carried. (4-0) The meeting adjourned at 5:50 p.m. I] 11 Cl MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 11, 2005 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Peters called the meeting to order at 6:00 p.m PRESENT: Janice Peters Mayor Thad, Baxley Councilmember Melody DeMeritt Councilmember Betty Winholtz Councilmember ABSENT: William Peirce STAFF: Robert Hendrix Robert Schultz Bridgett Bauer Rick Algert Bruce Ambo Bill Boucher Janeen Burlingame Greig Cummings Frank Cunningham John DeRohan Mike Pond Mike Prater Jim Koser Andrea Lueker Councilmember City Manager City Attorney City Clerk Harbor Director Public Services Director Capital Projects Manager Management Analyst 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 took action on Items CS-1 and CS-2 relating to the Duke Energy Outfall Lease by directing staff to file an appeal with the Public Utilities Commission; no reportable action under the Brown Act was taken on Item CS-3. PUBLIC COMMENT Susan Heinemann announced the Annual Garden Tour and Festival would be held on April 24, 2005. Hank Roth stated the next Neighborhood Watch informational meeting will be held on April 27, 2005; Marc Godfrey, School Resource Officer will speak on the DARE Program and the Juvenile Diversion Program. t MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 11, 2005 Keith Taylor, Member of the Friends of the Morro Bay Fire Department, stated their organization is in support of building a complete new fire station. He suggested the City sell the property at San Jacinto and Highway One with the proceeds going towards a new fire station. Mr. Taylor stated the City should also set up a benefit assessment district to pay for the debt of the new fire station. He said this would give the citizens the services they need, and give the fire personnel a safe working environment. Roger Ewing requested the City publicly notice all meetings on bluff top restrictions. He also addressed Item D-4 (Consideration of Public Workshop on Downtown Design), and urged Council to not hire a consultant, and create a workshop for public input. Chuck Meissner referred to an article in The Tribune relating to Duke Energy. He said the outfall was used for half a century by PG&E free of rent. Mr. Meissner stated that a historical permanent free easement has been established. He requested the City Council restart negotiations with Duke Energy, and work towards reaching an equitable settlement. ® Joan Carter stated she is concerned with the City's budget, and requested the City obtain information from other cities with comparable logistics. She said the City Council needs sound and relevant information on which to act when reviewing the proposed budget in June. Jack McCurdy referred to a letter to Duke Energy from the City that states the City has an obligation and responsibility to properly manage and administer Tidelands Trust property that was granted to the City by the State. He said the administration of this public property should be consistent with the terms of the trust and State laws. Peter Risley stated the City's budget deficit is directly attributable to Duke Energy, which had agreed to the lease and backed out leaving the City holding an empty bag. He said CAPE is opposed to the outfall lease because of the long-term threat to the estuary. Mr. Risley stated the citizens of Morro Bay should pay close attention to what Duke Energy is up to, and how the City is trying to protect itself. Mandy Davis addressed information set forth by the Department of Fish & Game and two local hunting associations regarding hunting in the back bay. 11 Dan Hoffman addressed the State Park Marina, stating the marina takes in $25,000 per month; and the City has lost $500,000 — 750,000 in 20 years. He said the contract between the City and State Parks and their vendor states the docks will be maintained in good repair, and the docks are in disrepair. Mr. Hoffman stated State Parks is going to request an audit. He said the City should get rid of the vendor, and employ a City employee to maintain the docks. Bill Woodson stated the Planning Commission attended an informational planning workshop in San Luis Obispo. He asked how the solar panels are working at the Recreation & Parks Department, and stated solar power will be required by all utilities in the near future. Mr. Woodson referred to the Morro Bay/Cayucos Sanitary District JPA meeting, and asked about the consultants report on the plans for the extended secondary and tertiary treatment of the plant. He referred to the budget stating an organization chart is in order. Dave Nelson stated the City is selling the estuary to Duke Energy. He said the City would make more than $2 million per year without the power plant, and save the City from degradation of our environment. Roy Kline stated the outfall lease should not be free, and Duke Energy should pay its promised amount to the City. He said the City should not be in the position of Duke Energy's financial position. ® Joey Racano stated with the single pass cooling intake that should have been extinct a long time ago, Duke Energy sucks in and kills many of the estuary's sea creatures and countless larvae. He said Duke Energy's reluctance to upgrade to more modem technology should raise red flags in Morro Bay. Noah Smukler addressed enhancing the estuary and maintaining the lifestyle we have. He said he went on a tour of the City's Waste Water Treatment Plant that was very interesting. Mr. Smukler requested the City Council not be so hasty to sign a contract with Duke Energy. Cherie Neal stated the Duke Energy Power Plant should leave the City. She said the power plant is a relic for production of energy. Ms. Neal stated she is opposed to staffs recommended changes to the regulations on granny units. Mayor Peters closed the hearing for public comment. 5 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 11, 2005 DECLARATION OF FUTURE AGENDA ITEMS Councilmember Winholtz requested discussion on the Central American Fair Trade Agreement (CAFTA), and would suggest the City send a letter to our federal officials asking them to vote against the agreement due to its negative affects on local farms. Councilmember Baxley requested the discussion on Council preparation for Cayucos Sanitary District Joint Powers Authority Meetings; Mayor Peters and Councilmember DeMeritt concurred. Councilmember DeMeritt requested the discussion on City directional signs. Public Services Director Bruce Ambo stated staff is already scheduling this item for Council's review in the near future. 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 MARCH 14, 2005 AND MARCH 28, 2005 REGULAR MEETINGS; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 RESOLUTION NO. 13-05 APPROVING ACCEPTANCE OF FINAL MAP FOR APPROVED FIVE -LOT RESIDENTIAL DEVELOPMENT LOCATED AT 2756 ALDER AVENUE; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 13-05. A-3 APPOINTMENT OF VOTING DELEGATES TO THE CALIFORNIA JOINT POWERS INSURANCE AUTHORITY; (ADMINISTRATION) RECOMMENDATION: Appoint Mayor Peters as the official representative of the City on the California Joint Powers Insurance Authority; and, appoint the City Manager, City Attorney and Finance Director as alternates. Ci MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 11, 2005 A4 RESOLUTION NO. 14-05 APPROVING ASSIGNMENT OF THE LEASE AGREEMENT FOR LEASE SITE 52-52W (TENANT REG WHIBLEY, ASSOCIATED PACIFIC CONSTRUCTORS) AT 495 EMBARCADERO; (HARBOR) RECOMMENDATION: Adopt Resolution No. 14-05. A-5 PROCLAMATION DECLARING APRIL 29, 2005 AS "ARBOR DAY'; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. A-6 PROCLAMATION DECLARING APRIL 2005 AS "MONTH OF THE CHILD"; (RECREATION & PARKS) RECOMMENDATION: Adopt Proclamation. A-7 PROCLAMATION DECLARING APRIL 2005 AS "FINANCIAL LITERACY 46 MONTH'; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. Councilmember Winholtz pulled Items A -I and A-2 of the Consent Calendar; Mayor Peters pulled Items A-5 and A-6; and, Councilmember DeMeritt pulled Item A-7. MOTION: Councilmember Winholtz moved the City Council approve Items A-3 and A-4 of the Consent Calendar. The motion was seconded by Councilmember Baxley and carried unanimously. (4-0) A-1 MINUTES FOR THE MARCH 14, 2005 AND MARCH 8, 2005 REGULAR MEETINGS; (ADMINISTRATION) Councilmember Winholtz proposed an amendment on page 9 of the March 14, 2005; Council concurred. MOTION: Councilmember Winholtz moved the City Council approve Item A -I of the Consent Calendar as amended. The motion was seconded by Councilmember DeMeritt and carried unanimously. (4-0) 7 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 11, 2005 A-2 RESOLUTION NO. 13-05 APPROVING ACCEPTANCE OF FINAL MAP FOR APPROVED FIVE -LOT RESIDENTIAL DEVELOPMENT LOCATED AT 2756 ALDER AVENUE; (PUBLIC SERVICES) Councilmember Winholtz stated she would be voting yes under protest of this item because she feels it is not an acceptable project. She said this project is condemning people who are buying these houses to live on substandard lots. Councilmember DeMeritt concurred that she will also be voting yes under protest because it is not in compliance with the zoning ordinance. MOTION: Councilmember Baxley moved the City Council approve Item A-2 of the Consent Calendar. The motion was seconded by Mayor Peters and carried unanimously. (4-0) A-5 PROCLAMATION DECLARING APRIL 29, 2005 AS "ARBOR DAY'; (ADMINISTRATION) Mayor Peters pulled this item for public information. ® MOTION: Mayor Peters moved the City Council approve Item A-5 of the Consent Calendar. The motion was seconded by Councilmember Winholtz and carried unanimously. (4-0) A-6 PROCLAMATION DECLARING APRIL 2005 AS "MONTH OF THE CHILD"; (RECREATION & PARKS) Mayor Peters pulled this item for public information. MOTION: Mayor Peters moved the City Council approve Item A-6 of the Consent Calendar. The motion was seconded by Councilmember Winholtz and carried unanimously. (4-0) A-7 PROCLAMATION DECLARING APRIL 2005 AS "FINANCIAL LITERACY MONTH'; (ADMINISTRATION) Mayor Peters pulled this item for public information. MOTION: Councilmember DeMeritt moved the City Council approve Item A-7 of the Consent Calendar. The motion was seconded by Mayor Peters and carried unanimously. (4-0) 9 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 11, 2005 Mayor Peters called for a break at 7:20 p.m.; the meeting resumed at 7:30 p.m. B. PUBLIC HEARINGS, REPORTS & APPEARANCES B-I RESOLUTION NO. 12-05 APPROVING HARBOR DEPARTMENT COST OF LIVING ADJUSTMENTS TO FEES AND SERVICE CHARGES; (HARBOR) Harbor Director Rick Algert stated the majority of Harbor Department fees and service charges have not been adjusted since 1997-98. There were some adjustments made to Slip and Mooring fees in 2001 and a Wharf fee was added as a new fee in 1999. The Harbor Advisory Board recommended the City Council adopt the proposed fee schedule and recommended the fees be reviewed and adjusted annually. Mr. Algert recommended the City Council adopt Resolution No. 12-05 amending the City Master Fee Schedule/Harbor fee section to reflect increases in the cost of living index and yield an additional estimated $15,000 in fee revenues to the Harbor Fund. Mayor Peters opened the hearing for public comment; there being no comments, Mayor Peters closed the public comment hearing. ® Councilmember Winholtz suggested amendments to five of the Harbor fees; Council concurred. MOTION: Councilmember Winholtz moved the City Council adopt Resolution No. 12-05 amending the City Master Fee Schedule/Harbor fee section to reflect increases in the cost of living index and yield an additional estimated $15,000 in fee revenues to the Harbor Fund, and reflecting the changes made by the City Council. The motion was seconded by Councilmember DeMeritt and carried unanimously. (4-0) B-2 ORDINANCE NO. 507 AMENDING THE LOCAL COASTAL PROGRAM AND ZONING ORDINANCE (MORRO BAY MUNICIPAL CODE TITLE 17) RELATING TO THE SECOND DWELLING UNIT/GUEST HOUSE PROVISIONS WITHIN THE CITY LIMITS OF MORRO BAY - INTRODUCTION AND FIRST READING; (PUBLIC SERVICES) Associate Planner Mike Prater stated on February 14, 2005, the City Council enacted a 45-day moratorium on second dwelling units to allow the City time to develop more effective land use standards. On February 21, 2005, the Planning Commission held a public hearing to familiarize the Planning Commission and community with the current State and local regulatory framework, and take public testimony on the topic of second dwelling units. On March 7, 2005, staff sought policy direction from the Planning ® Commission on how best to achieve this objective. The Planning Commission provided L9 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 11, 2005 valuable feedback as to what the proposed ordinance should entail. Since meeting with the Planning Commission, staff has drafted an ordinance that satisfies Government Code Section 65852.2 in balance with local land use needs and objectives. The City Attorney has determined that the proposed amendments would satisfy the requirements of Assembly Bill 1866. Mr. Prater recommended the City Council: 1) open the hearing for public comment; 2) accept the Planning Commission recommendation to adopt the proposed ordinance amendments to allow for ministerial secondary dwelling units in residential zones; 3) approve the Negative Declaration; 4) make a motion to approve the first reading and introduction of Ordinance No. 507 by number and title only; and 5) continue this matter to the April 25, 2005 City Council meeting to conduct the second reading and adoption of Ordinance No. 507. Mayor Peters opened the hearing for public comment. David Nelson stated more common sense and flexibility is needed on this issue based on the individual lot size. He also said carports are ugly. ® John Barta referred to Government Code Section 65852.120 stating this is State law. He said based on this law, the increased floor area of an attached second unit shall not exceed 30%; and, the floor area of a detached second unit shall not exceed 1,200 square feet. u Chuck Reasor requested the City Council approve this ordinance as presented by the Planning Commission. He said there should be a limit on granny units based on the size of the lot. Roy Kline requested the City Council adopt the Planning Commission recommendations. Bob Tefft reviewed numerous granny unit ordinances throughout the State. He said parking is not currently allowed in the front yard setback in any area of the City. Mr. TeflR requested the Council also not allow tandem parking in the City. Mayor Peters closed the public comment hearing. Councilmember Winholtz stated she supports the flexibility of this Ordinance in that a second unit is based on the lot size. She said these secondary units should be geared for that population who cannot afford a full-sized house. 10 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 11, 2005 Councilmember Baxley stated the size of the lot would control the square footage of the second unit, and he could support the 50% or 1,200 square foot limit as determined by State law. Councilmember DeMeritt stated the language "shall not exceed" in the State law allows you to be under that amount of coverage within a reasonable limit. She said she does not support tandem parking. Mayor Peters suggested adding a condition that administrative permits would allow a 900 square foot maximum secondary unit, and a 1,200 square foot maximum secondary unit would be allowed with a Conditional Use Permit. She also stated parking should be provided, but not tandem parking. Consensus of Council was parking should be provided except tandem parking. MOTION: Councilmember Baxley moved the City Council continue this public hearing to the April 25, 2005 City Council meeting with amendments discussed by Council. The motion was seconded by Mayor Peters and ® carried with Councilmember Winholtz voting no. (3-1) E B-3 APPEAL OF THE PLANNING COMMISSION'S DENIAL OF A SETBACK VARIANCE AT 3190 MAIN STREET; (PUBLIC SERVICES) Planning Manager Greig Cummings stated on February 22, 2005, the Planning Commission heard this item after continuing the hearing from the February 7, 2005 meeting at the applicant's request. On a vote of 3-0, the Planning Commission approved the proposed development with some changes to the project as proposed by staff in the conditions of approval. In approving the project, the Planning Commission felt that the residential use was appropriate for this area of the MCR district. However, they did not agree that the findings could be made for the variance and therefore denied the variance request. The Planning Commission accepted staff s recommendation that the plans be redrawn to meet all setback requirements and approved by the Public Services Director. The proposed project consists of the demolition of an existing commercial building and the construction of three single-family dwellings on three individual lots. The project is within the MCR/R-4 zone, and the applicant requested a variance to the front setback for the garage and second story living area, and for the exterior side setback on Main Street for exterior stairs. The applicant has changed their request along with this appeal to ask only for a change in the front setback from 20 feet to 15 feet for the garage. Mr. Cummings recommended the City Council deny the appeal and uphold the Planning Commission decision to deny the variance. 11 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 11, 2005 Cathy Novak, representing the applicant/appellant, stated this project proposes to demolish an existing commercial building located on Main and Nassau Streets and construct three new single-family homes. She said the project has been modified since the Planning Commission hearing to eliminate the variance requests except for the garage setback. Ms. Novak stated the City's Zoning Ordinance requires a 20-foot setback for residential garages; in this case a special circumstance applies therefore, a variance is requested for the reduction to a 15-foot setback. Mayor Peters opened the hearing for public comment. Dave Nelson stated this commercial building has employed people and paid taxes to the City. He said the applicant wants to change this to strictly residential, which is not in the best interest of the City. Mr. Nelson requested Council uphold the Planning Commission's denial of this variance. Chuck Reasor urged Council uphold Planning Commission's denial of the variance. He said over the last ten years, the Planning Commission has maintained a variance as a right instead of a special circumstance. ® Roy Kline addressed parking regulations and stated he has had to remove vehicles parked in the street, which should be regulated throughout the City. Randy Watterworth, applicant/appellant, stated he has never asked for a special privilege in the ten years he has been building in Morro Bay. He requested the City Council consider approving the variance for this project. Mayor Peters closed the public comment hearing. Councilmember Baxley stated he supports upholding the variance based on the findings to support such variance. Councilmember Winholtz expressed concern with the corner unit and not placing the setback where it should be. She said she is also concerned with replacing the mixed -use commercial zone with residential units. Councilmember DeMeritt stated these homes are modest but have no character. She said she does not support setback reductions, and expressed concern with the lack of parking. Councilmember DeMeritt recommended placing a mixed -use project at this location. She said she supports upholding the Planning Commission's denial of this variance request. 12 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL I I, 2005 Mayor Peters stated the City should maintain the commercial pockets at street ends. She suggested extending the five-foot setback by placing the washer and dryer in the garage. Mayor Peters stated she supports upholding the Planning Commission's denial of this variance request. MOTION: Councilmember DeMeritt moved the City Council deny the appeal and uphold the Planning Commission decision to deny the variance of a setback at 3190 Main Street. The motion was seconded by Councilmember Winholtz and carried unanimously. (4-0) B-4 PUBLIC HEARING ON PROPOSED UPDATE TO THE ZONING ORDINANCE; ZONING MAP AND ACCOMPANYING NEGATIVE DECLARATION; (PUBLIC SERVICES) Public Services Director Bruce Ambo stated the City Council held public hearings on the update of the Zoning Ordinance, Zoning Map, and Environmental Document on January 25, February 14 and 28, and March 14, 28 and 30. At the March 30 special meeting, working from the Planning Commission Addendum dated December 17, 2004; the ® Council worked up to the Planned Development Overlay, and left off at the Division IV Regulations Applying in Some or All Districts. Staff was directed to analyze different approaches to the PD Zone regulations and return with recommendations. At this meeting, staff suggested Council discussion begin with the proposed changes to RM-A (R-3) and RM-B (R4) Zones, and then going over the Commercial/Mixed-Use District standards. Mr. Ambo recommended the City Council: 1) open the public hearing; b) identify suggested changes; and, 3) continue the public hearing to a special meeting on a date to be determined by Council. Mayor Peters opened the hearing for public comment. Robert Tefft stated the Planning Commission should review Conditional Use Permits, and bluff development standards should be maintained as currently written. Mayor Peters closed the public comment hearing. MOTION: Mayor Peters moved the City Council continue this public hearing on proposed update to the Zoning Ordinance, Zoning Map and accompanying Negative Declaration to May 4, 2005. The motion was seconded by Councilmember Winholtz and carried unanimously. (4-0) Mayor Peters called for a break at 9:20 p.m.; the meeting resumed at 9:30 p.m. 13 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 11, 2005 C. UNFINISHED BUSINESS — NONE. D. NEW BUSINESS D-I REPORT FROM CONSULTANT PRESENTING FIRE STATION 53 DESIGN CONCEPT; (FIRE) Capital Projects Manager Bill Boucher stated the San Simeon Earthquake rendered the Fire Department apparatus bay unusable and it has been cordoned off for almost 1-1/2 years, with fire vehicles and equipment housed in fabric tents. As part of the earthquake recovery efforts, the City secured a grant from the State Office of Emergency Services that will pay for 75% of the costs for a replacement apparatus bay, including design. The City contracted with the architectural firm of Fraser-Seiple of San Luis Obispo, to prepare a design for the building. They have completed the draft design report, including a site plan and proposed architectural style of the building, and seek City Council approval of the design concept and authorization to proceed with applications for needed permitting and preparation of construction plans and specifications. The replacement of the apparatus bay at Fire Station 53 involves placing a new equipment storage building, ® with a 50+ year expected service life, on property where a full replacement fire station can be -anticipated as a goal for the "relatively near" future. As such, placing the new building in a location where it would interfere with the eventual redevelopment of the property should be avoided. Staffs approach was to prepare a master site plan employing criteria set by Fire Department personnel and industry standards and place the apparatus bay where it would fit with both current and future sign configurations. Mr. Boucher recommended the City Council: 1) receive the consultant's presentation; and, 2) direct staff to proceed with the applications for permits and preparation of construction plans, specifications and estimates for the replacement apparatus bay based on the wood - framed construction option and final design report. 11 MOTION: Councilmember Winholtz moved the City Council direct staff to proceed with the applications for permits and preparation of construction plans, specifications and estimates for the replacement apparatus bay based on the wood -framed construction option and final design report. The motion was seconded by Councilmember DeMeritt and carried unanimously. (4-0) 14 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 11, 2005 D-2 DISCUSSION OF COST -SAVING ALTERNATIVES FOR TROLLEY PROGRAM; (ADMINISTRATION) Management Analyst Janeen Burlingame stated the trolley season operates over two fiscal years. Given the constrained budget situation facing the City for fiscal year 2005/06, changes made to the 2005 season would have impacts to both the current and next fiscal years. The currently adopted Transit Development Plan establishes a performance standard of 20 passengers per vehicle service hour for the trolley service. Since two routes were established in 2001, the trolley has achieved 14 passengers per vehicle service hour in 2004, 12 in 2003 and 14 in both 2002 and 2001; each year with different operating days and hours. Although the 2004 trolley season had the highest ridership since two routes were established in 2001, there has been a 38% increase in vehicle service hours between 2001 and 2004, but no increase in the number of passengers per vehicle hour being achieved. Additional days or hours over the years, has not translated into more passengers per vehicle service hour. Ms. Burlingame recommended the City Council: 1) start service on Memorial Day weekend (May 28); 2) eliminate service on Tuesdays, Wednesdays and Thursdays; 3) stop Monday service at 5:00 p.m.; 4) select the desired fare structure; and, 5) provide additional direction to staff ® regarding the 2005 season as necessary. MOTION: Councilmember Baxley moved the City Council direct staff to: 1) start service on Memorial Day weekend (May 28); 2) eliminate service on Tuesdays, Wednesdays and Thursdays; 3) stop Monday service at 5:00 p.m.; 4) administer the fee of .50 per ride and $1.00 per day; and, 5) surplus and sell the 1985 trolley. The motion was seconded by Councilmember DeMeritt and carried with Mayor Peters voting no. (3-1) D-3 REPORT ON CREEK MAINTENANCE AND FLOOD PROTECTION; (PUBLIC SERVICES) City Engineer Frank Cunningham stated in October 1988, the City of Morro Bay and California Department of Fish & Game entered into a Memorandum of Understanding (MOU) to allow City crews to routinely perform creek maintenance under certain conditions and make payment of the associated fees set by Fish & Game. Since then, the City has been maintaining proper creek flows by removing vegetation and debris that accumulates in the creeks. City staff has not routinely acquired permission to enter these creeks, which are mostly on private property. Many citizens have grown accustom to the City providing this service and have even complained when the service is delayed or reduced. The City typically utilizes inexpensive, trained crews from the California Department of Forestry and then submits quarterly reports identifying the location and description of the recently completed work, and pays the required fees to Fish & Game as 15 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 11, 2005 specified in the MOU. On July 9, 2001, the City received a letter from the Fish & Game Regional Manager stating the MOU had expired. Staff has been pursuing the new required "Streambed Alteration Permit" from Fish & Game. This permit process requires the preparation of a Biological Resource Survey Report, Initial Study/Environmental Documents, and Creek Maintenance and Management Plan prior to submitting the permit application to Fish & Game. The estimated cost of continuing to perform this creek maintenance service is expected to increase significantly as a result of the permit process and numerous permit conditions. Due to current budget shortfalls, City departments have been evaluating various operations and programs that have to compete for limited funds. Creek maintenance funding has typically been paid out of the Street Maintenance Fund. This fund as been reduced significantly over the past three years. Programs such as street repairs, sidewalk repairs, ADA compliance and street tree maintenance have all been reduced accordingly. In evaluating the creek maintenance program, other concerns began to surface in addition to cost recovery. Public safety is the City's highest priority and flooding prevention is critical. City liability, private property right -of -entry issues, and the sensitive environment of these creeks also require consideration. Mr. Cunningham recommended the City Council direct staff to study alternatives for minimizing City liability and recovering costs; meet with property owners along creeks and drainages to ® discuss options and receive input; report findings back to City Council; and/or provide further direction. MOTION: Mayor Peters moved the City Council: 1) direct staff to study alternatives for minimizing City liability and recovering costs; 2) meet with property owners along creeks and drainages to discuss options and receive input; and 3) report findings back to City Council and/or provide further direction. The motion was seconded by Councilmember Baxley and carried unanimously. (4-0) D-4 CONSIDERATION OF PUBLIC WORKSHOP ON DOWNTOWN DESIGN; (PUBLIC SERVICES) Public Services Director Bruce Ambo stated the topic of downtown development and visioning was originally raised on November 8, 2004, when the City Council added a future agenda item for discussion on the review process for mixed -use projects. Mixed - use projects are a key component and tool to revitalizing a community and strengthening its downtown. In many instances, the current code is a product of years of incremental amendments that have caused a ripple of unintended consequences in our regulatory framework. Other influences on downtown mixed -use projects involve zoning and development standards, affordable housing, parking provisions, economic development and redevelopment incentives, retaillcommercial/residential mix, and identity branding. is Mr. Ambo recommended the City Council discuss this item and direct staff accordingly 16 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 11, 2005 MOTION: Councilmember Winholtz moved the City Council continue this item to the April 25, 2005 City Council meeting. The motion was seconded by Councilmember DeMeritt and carried unanimously. (4-0) D-5 APPROVAL OF SETTLEMENT AGREEMENT BETWEEN THE CITY OF MORRO BAY AND DAVID AND DIANA RAVINS; (CITY ATTORNEY) City Attorney Robert Schultz reviewed the incident that took place outside the Morro Bay Harbor on August 15, 2000 wherein the two children of David and Diana Ravins drowned under a capsized boat captained by Antonio Alvarez. Mr. Schultz stated the reason the insurance carrier has decided to settle this case is due primarily to the fact that the legal action was filed in federal court instead of state court. The plaintiffs were able to file in federal court because the incident arose in navigable waters outside the City's jurisdiction. Since the action was filed in federal court, federal maritime law applied to this case as opposed to state law. Although the settlement agreement requires payment of $2,200,000.00, the City's insurance carver will reimburse the City. However, if the City Council does not approve the settlement agreement, the City would be responsible for all ® further legal fees and also for any damages awarded above $2,200,000.00 Mr. Schultz recommended the City Council approve the settlement agreement between the City and David and Diana Ravins. MOTION: Councilmember Baxley moved the City Council approve the settlement agreement between the City and David and Diana Ravins in the amount of $2,200,000.00. The motion was seconded by Councilmember DeMeritt and carried unanimously. (4-0) ADJOURNMENT The meeting adjourned at 10:59 pm Recorded by: Bridgett Brauer City Clerk r� L 17 NOTICE OF CONTINUED PUBLIC HEARING NOTICE IS HEREBY GIVEN that the Morro Bay City Council will be holding a Continued Public Hearing on Wednesday, March 30, 2005 at 6:00 a.m. to be held in the Veterans' Memorial Building, 209 Surf Street, Morro Bay, California. The City Council will be considering the following item: CONTINUED PUBLIC HEARING ON THE PROPOSED UPDATE TO THE ZONING ORDINANCE, ZONING MAP AND ACCOMPANYING NEGATIVE DECLARATION ® DATED: March 29, 2005 MINUTES — MORRO BAY CITY COUNCIL SPECIAL MEETING — MARCH 30, 2005 VETERANS MEMORIAL HALL — 6:00 P.M. Mayor Peters called the meeting to order at 6:05 p.m. Bruce Ambo led the Pledge of Allegiance. PRESENT: Janice Peters Mayor Thad Baxley Councilmember Melody DeMeritt Councilmember William Peirce Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix City Manager Bruce Ambo Public Services Director Mike Prater Associate Planner Joan Drake Administrative Technician Note: Technical changes will be reflected in the next City Council addendum. RM Zoning Designation is Peters established there was concensus to use the designation of RM. Peters opened the Public Hearing. Ray McKelligott suggested scrapping the RM and returning to R-1, R-2, R-3 and R-4. Peters closed the public hearing. Council directed staff to develop RM-A to represent the R-3 zone and RM-B to represent the R4 zone, using the original height, density and use limitations. Commercial/Mixed-Use District Councilmembers expressed concern over the 50 percent allowable space for residential use on the Embarcadero. Peters opened the Public Hearing. Bob Tefft agreed with Council's concern over the 50 percent figure and also suggested all "L" designations be changed to "C" (CUP). McKelligott suggested there be no residential use in any commercial zone. Roger Ewing agreed with those concerned about the 50 percent limitation and reminded Council the work on this document was done by the previous Planning Commission. Peters closed the Public Hearing and stated Council had received input from some members of the new Planning Commission. Winholtz and DeMeritt were in favor of elevating the review process for all mixed -use projects. Ambo stated that would be contrary to Smart Growth principals. There was discussion on ® strengthening the regulations. MINUTES — MORRO BAY CITY COUNCIL Is SPECIAL MEETING — MARCH 30, 2005 Staff was directed to come back with enforceable guidelines, rewording for CVS, and modifications to the L designations. Public Facilities District Peters opened the Public Hearing. There were no comments. Council agreed to accept the changes. Open Space and Parks Districts Peters opened the Public Hearing. Tefft stated the ESH must be addressed more thoroughly. Peters closed the Public Hearing. Council directed staff to use the original language for paragraph A and to change the review level for Golf Courses and Overnight RV Camping to C. Staff was asked to bring back the ESH standards. Agricultural District ® Peters opened the Public Hearing. There were no comments. Council was concerned over the percentage of lot coverage for residences and other buildings and asked staff to bring back language that would trigger public review. Planned Development Overlav Zone Peters opened the Public Hearing. McKelligott recommended getting rid of this zone. Teffl said if kept, changes were needed so it couldn't be used just to increase size or get something that wouldn't ordinarily be permitted. Peters closed the Public Hearing. Winholtz and McDermitt favored getting rid of the zone. Ambo stated this would be a major zoning change and was beyond the scope of this update project. Following discussion, Ambo suggested passing the current recommendations, then coming back with a mapping amendment and possibly looking into alternative regulatory approaches to the PD overlay. Peters suggested the concept of a "floating" zone. Council agreed to accept the tighter standards, but re -address the PD in the near future. McDermitt suggested visuals that show examples of public benefits. Council continued the project to the next Regular City Council Meeting on April I I, 2005, at which time it will set a specific date for further discussion. 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 — MARCH 28, 2005 CLOSED SESSION — MARCH 28, 2005 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: Lease Site 87-88/87W-88W/ 831 Embarcadero/Outrigger Restaurant Negotiating Parties: City and Violet League Negotiations: Lease Terms and Conditions CS-2 GOVERNMENT CODE SECTION 54956.9(a): CONFERENCE WITH LEGAL COUNSEL REGARDING PENDING LITIGATION. • Ravins vs. City of Morro Bay IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. 11 ® PUBLIC SESSION — MARCH 28, 2005 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. I•J • 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 CASH & INVESTMENT REPORT — FEBRUARY 2005; (FINANCE) RECOMMENDATION: Receive report for information. A-2 RESOLUTION NO. 11-05 ADOPTING THE MID -YEAR BUDGET ADJUSTMENTS AND POLICY ISSUES; (FINANCE) RECOMMENDATION: Adopt Resolution No. 11-05. A-3 REJECTION OF ICE -MAKING MACHINE BIDS; (HARBOR) RECOMMENDATION: Reject all bids, and direct staff to re -advertise the dock retrofit project. A-4 PROCLAMATION DECLARING APRIL 2005 AS "FAIR HOUSING MONTH'; (PUBLIC SERVICES) RECOMMENDATION: Adopt the Proclamation. B. PUBLIC HEARINGS, REPORTS & APPEARANCES B-1 CONTINUED PUBLIC HEARING OF A FIVE -LOT RESIDENTIAL COMMUNITY HOUSING AND MIXED -USE PROJECT PROPOSED AT 555 ® MAIN STREET; (PUBLIC SERVICES) RECOMMENDATION: Accept the Planning Commission's recommendation to conditionally approve the project. B-2 PUBLIC HEARING ON PROPOSED UPDATE TO THE ZONING ORDINANCE, ZONING MAP AND ACCOMPANYING NEGATIVE DECLARATION; (PUBLIC SERVICES) RECOMMENDATION: Receive public comment; identify suggested changes; and, continue public hearing to the April 11, 2005 City Council meeting, or determine a date for a special workshop to discuss this issue. B-3 ORDINANCE NO. 506 EXTENDING THE URGENCY INTERIM ORDINANCE PROHIBITING THE ISSUANCE OF PERMITS FOR SECONDARY DWELLING UNITS; (PUBLIC SERVICES) RECOMMENDATION: Adopt Ordinance No. 506. 11 K ® B-4 RESOLUTION NO. 12-05 APPROVING HARBOR DEPARTMENT COST OF LIVING ADJUSTMENTS TO FEES AND SERVICE CHARGES; (HARBOR) RECOMMENDATION: Adopt Resolution No. 12-05 amending the Harbor Fee Section of the City's Master Fee Schedule. B-5 CONSIDERATION OF LOT LINE ADJUSTMENT, CONDITIONAL USE PERMIT, COASTAL DEVELOPMENT PERMIT AND ROAD ABANDONMENT APPLICATIONS TO ALLOW RENOVATIONS AND A NEW 20,000 SQUARE FOOT RETAIL BUILDING AT 520 ATASCADERO ROAD - MINER'S HARDWARE; (PUBLIC SERVICES) RECOMMENDATION: Approve the conceptual plans based on the findings and conditions adopted by the Planning Commission. B-6 APPEAL OF PLANNING COMMISSION DECISION TO APPROVE A COASTAL DEVELOPMENT PERMIT FOR THREE NEW DUPLEX BUILDINGS AT 470-488 ROCKVIEW STREET; (PUBLIC SERVICES) RECOMMENDATION: 1) Add a condition that prohibits the use of retaining walls and fill outside the "footprint" of the proposed buildings; and 2) deny the appeal. ® C. UNFINISHED BUSINESS C-1 REVIEW OF ABANDONED BOAT ABATEMENT PROGRAM; (CITY COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. C-2 REVIEW OF ABANDONED VEHICLE ABATEMENT PROGRAM; (CITY COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. C-3 CONSIDERATION OF CREATING A CITY PUBLIC ART POLICY; (CITY COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. r] 0 ® D. NEW BUSINESS D-I STAFF REPORT ON STATUS OF THE DONATION OF THE ROCK SCULPTURE; (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. CJ 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 28, 2005 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Peters 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 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 Baxley and unanimously carried. (5-0) Mayor Peters 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: Lease Site 87-88/87W-88W/ 831 Embarcadero/Outrigger Restaurant Negotiating Parties: City and Violet League Negotiations: Lease Terms and Conditions CS-2 GOVERNMENT CODE SECTION 54956.9(a): CONFERENCE WITH LEGAL COUNSEL REGARDING PENDING LITIGATION. • Ravins vs. City of Morro Bay The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:25 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 5:25 p.m. l ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 28, 2005 VETERANS MEMORIAL HALL - 6:00 P.M. C 11 Mayor Peters called the meeting to order at 6:00 p.m. PRESENT: Janice Peters Mayor Thad Baxley Melody DeMeritt William Peirce Betty Winholtz STAFF: Robert Hendrix Robert Schultz Bridgett Bauer Rick Algert Bruce Ambo Bill Boucher Frank Cunningham John DeRohan Gary Kaiser Steve Knuckles Mike Prater Jim Koser ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR'S REPORTS & ANNOUNCEMENTS Councilmember Councilmember Councilmember Councilmember City Manager City Attorney City Clerk Harbor Director Public Services Director Capital Projects Manager City Engineer Police Chief Senior Planner Acting Fire Chief Associate Planner Finance Director 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 Dannie Tope stated her home has a granny unit, which houses her disabled father. She referred to the present budget crisis and stated the Police and Fire Departments should not be a part of the budget cuts in the City. Ms. Tope stated the perks of the City should be carefully considered. She said parking in -lieu fees should be raised, and parking meters should be considered. Gary Ream addressed Item D-1 (Staff Report on Status of the Donation of the Rock Sculpture) stating the 14' rock sculpture needs much open space and is too large for the triangle park. He said this proposed rock would have an adverse effect on the already difficult intersection. Mr. Ream stated a non-profit organization should contract to maintain this art piece 2 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 28, 2005 Joey Racano, Ocean Outfall Group, stated the Morro Bay Wastewater Treatment Plant and the Duke Energy outfall continues to be in violation of the 301(h) waiver. He said there would be a tour of the Wastewater Treatment Plant on April 8'h at 10:00 am and he invited the public to tour this plant. Dannie Nicholson, Pacific Wildlife Care, expressed concern with the hunting that takes place in the back bay. Susan Heineman stated the 19'h Annual Garden Tour and Festival is scheduled on April 24`h from 1-5 pm. She said the Estero Community Garden Outdoor Spring Feast is scheduled on April 3rd from 3-5 pm to raise money to build a retaining wall at the Estero Community Gardens. Ms. Heineman shared the Success Magazine that features Mayor Peters on the cover. She addressed the budget, and said employees' salaries, benefits and perks is the crux of the budget problems. The following Duke Energy employees urged the City Council to be supportive of ® entering an agreement with Duke Energy: Tom Lott, Ron Kemper, Barbara Engle, Mark Fitzpatrick, Beverly Gilbert, and Barry Lejoy. The following people expressed support for the rock sculpture donated by Dr. Botso Korishelli: David Peter, John Yaroslaski, Nancy Castle, James Maul, and Botso Korishelli. Frank DeVine read a story about the historic adobe homes in San Jose. He said Morro Bay is faced with losing the last of the little cottage homes that once was typical in our seaside village. Mr. DeVine stated the City should take action and increase public awareness by protecting 10-12 homes as historic landmarks. Ken Vesterfelt announced the 9`h Annual Cruisin' Morro Bay Car Show is on May 5-8; he said they are in need of trophy sponsors. Roger Ewing stated the proposed rock sculpture is too big for the proposed location, and the City should decline this gift. He also said the Duke Energy employees should not point the finger at the City, but the management of Duke Energy to maintain their jobs. Mandy Davis showed a picture of a dead bird found in the yard of a home on the bay. She said the Brandt geese have been in decline for years, and studies show this decline is at an all time low. Ms. Davis requested Council's support in stopping hunting in the ® estuary. 3 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 28, 2005 Roy Kline stated hunting should be all or nothing, and requested hunting be prohibited in the back bay. He addressed an article by a former commissioner regarding the restrictions on granny units. Ron Boone, owner of Southern Port Traders, stated the owner of TKD is selling product in front of his store and taking away business of his store; he asked if this is legal, and requested Council's support in stopping this action. Phil Hill stated hunting makes no money for the City. He also said the Duke Energy management is not to be trusted. Mayor Peters closed the hearing for public comment. DECLARATION OF FUTURE AGENDA ITEMS Councilmember DeMeritt requested discussion of a facility fee program to support fire services; Mayor Peters and Councilmem_ber Peirce 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 CASH & INVESTMENT REPORT— FEBRUARY 2005; (FINANCE) RECOMMENDATION: Receive report for information. A-2 RESOLUTION NO. 11-05 ADOPTING THE MID -YEAR BUDGET ADJUSTMENTS AND POLICY ISSUES; (FINANCE) RECOMMENDATION: Adopt Resolution No. 11-05. A-3 REJECTION OF ICE -MAKING MACHINE BIDS; (HARBOR) RECOMMENDATION: Reject all bids, and direct staff to re -advertise the dock retrofit project. 0 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 28, 2005 A4 PROCLAMATION DECLARING APRIL 2005 AS "FAIR HOUSING MONTH"; (PUBLIC SERVICES) RECOMMENDATION: Adopt the Proclamation. Councilmember DeMeritt pulled Item A-2 of the Consent Calendar. MOTION: Councilmember Baxley moved the City Council approve the Consent Calendar with the exception of Item A-2. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) A-2 RESOLUTION NO. 11-05 ADOPTING THE MID -YEAR BUDGET ADJUSTMENTS AND POLICY ISSUES; (FINANCE) Councilmember DeMeritt requested clarification on the impact of the mid -year budget adjustment relating to the replacement of the Police and Fire positions. She also referred to the positions placed under the Water Fund, and wanted to make sure that will not be a ® factor of rising water rates. Finance Director Jim Koser responded these positions would be vacant for the remainder of this budget year, so there will be no impact until the following budget year. He also stated the Water Fund usage is a short-term solution, and it should not impact water rates. Councilmember Winholtz asked about the damaged vehicle replacement equipment fund under the Police Department, and asked if this fund could be used to help reduce the amount lacking in the City Manager/City Attorney fund. MOTION: Councilmember Peirce moved the City Council approve Item A-2 of the Consent Calendar. The motion was seconded by Councilmember Baxley and carried with Councilmember DeMeritt and Councilmember Winholtz voting no. (3-2) Mayor Peters called for a break at 7:25 p.m.; the meeting resumed at 7:38 p.m. E 5 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 28, 2005 B. PUBLIC HEARINGS, REPORTS & APPEARANCES B-I CONTINUED PUBLIC HEARING OF A FIVE -LOT RESIDENTIAL COMMUNITY HOUSING AND MIXED -USE PROJECT PROPOSED AT 555 MAIN STREET; (PUBLIC SERVICES) Associate Planner Mike Prater stated the applicant is requesting approval of a Tentative Tract Map, Conditional Use Permit and Coastal Development Permit to subdivide the westerly lots into five parcels for a Community Housing Project with exceptions to setbacks and common.open space. The proposed project will also develop the easterly lots with two commercial buildings totaling approximately 1,800 square feet along Main Street in conjunction with a total of 16 one -bedroom apartment units. The applicant is requesting a joint use shared parking facility between the commercial office space and the apartments that would reduce the parking by 12 percent (4 spaces). On March 14, 2005, the City Council considered the application at their regularly scheduled public hearings. The City Council received public testimony, closed the public hearing and continued their discussion for the Tract Map, Conditional Use Permit and Coastal Development Permit for the project with direction for staff to bring back information ® regarding SB 1818. Mr. Prater recommended the City Council accept the Planning Commission's recommendation to conditionally approve the project. E George Garcia, representing the applicant, stated the two concessions the applicant is requesting based on SB 1818 are for the removal of an open space area, and the exception of parking. Mr. Garcia reviewed the project specifications, and addressed concerns of the Council. Mayor Peters opened the hearing for public comment. Frank DeVine stated there is still no open space being proposed for the community housing aspect of this project. He said the General Plan calls for maintaining the character of the surrounding area Mr. DeVine stated the applicant is proposing a Spanish style development that does not fit in with the unique fishing village that draws tourism. He said this is a classic reason why the City needs an architectural review committee. Mr. DeVine requested the City Council deny this project. Bob Teffl stated this project needs at least six exceptions from the Zoning Ordinance and Local Coastal Plan in order to be built to specification. He said according to State law, an affordable housing project that provides 10-20% of lower -income housing is eligible for one incentive. Mr. TefJi stated the applicant is giving no guarantees to the affordable housing aspect of this project. T ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 28, 2005 Roy Kline asked if the applicant has to rent one commercial space in this mixed -use commercial/residential project. Roger Ewing stated there has not been one citizen who has expressed support for this project. He said the City needs affordable housing, but not in the grand style that this project is presented. Mr. Ewing stated the citizens do not want a large project such as this. He said the betterment of parking needs to be considered, and this project adds to the parking problem in the City. Priscilla Ko stated parking in this area is very important, especially when there are special events and with the many tourists that stay in the State Park Campground. She said tourism is the City's economic development, and if this project is approved, parking will be very limited. Mayor Peters closed the public comment hearing. Councilmember DeMeritt stated this is a project that needs so much work, and the City should stand strong and tell the applicant to follow the rules and build a project that ® serves the community. She suggested the. City Council return this project to the Planning Commission and let them negotiate this project for it to make sense for the City and provides the applicant the concessions that are legal based on SB 1818. Councilmember Peirce stated based on staffs interpretation on concessions, he supports this project. Councilmember Baxley stated this project should be sent back to the Planning Commission for further review, and returned to Council with more clarification. Councilmember Winholtz stated ADA parking should be included in the plan. Mayor Peters stated Council should advise the applicant of the two concessions the City is willing to grant. She agrees there are too many unanswered questions to be able to move forward. MOTION: Councilmember DeMeritt moved the City Council forward this project to the Planning Commission for further review. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) Mayor Peters called for a break at 9:10 p.m.; the meeting resumed at 9:15 p.m. l 7 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 28, 2005 B-2 PUBLIC HEARING ON PROPOSED UPDATE TO THE ZONING ORDINANCE, ZONING MAP AND ACCOMPANYING NEGATIVE DECLARATION; (PUBLIC SERVICES) Mayor Peters opened the hearing for public comment; there being no comments, Mayor Peters closed the public comment hearing. MOTION: Councilmember Peirce moved the City Council continue the public hearing on the proposed update to the Zoning Ordinance, Zoning Map and Accompanying Negative Declaration to March 30, 2005. The motion was seconded by Councilmember Baxley and carried unanimously. (5-0) B-3 ORDINANCE NO. 506 EXTENDING THE URGENCY INTERIM ORDINANCE PROHIBITING THE ISSUANCE OF PERMITS FOR SECONDARY DWELLING UNITS; (PUBLIC SERVICES) City Attorney Robert Schultz stated on February 14, 2005, the City Council adopted Ordinance No. 505 prohibiting the issuance of permits for secondary dwelling units. ® Ordinance No. 505 was adopted by a 4/5 vote of the Council and is effective until March 31, 2005. Both statutory and case authority plainly support the legislative body's right to consider and enact a moratorium on secondary dwelling units while the City studies proposed general plan or zoning changes that might impact and affect the development standards for secondary dwelling units. Ordinance No. 505 may be extended for an additional period of 10 months and 15 days upon notice and public hearing. Additionally, ten days prior to the expiration of this -interim Urgency Ordinance, the Council must issue a report describing the measures taken to alleviate the conditions that led to the adoption of the Ordinance. Adoption of Ordinance No. 506 will continue to allow staff sufficient time to process the zoning ordinance amendments to the development standards for secondary dwelling units. The zoning amendments are scheduled for review by the City Council at their April 11, 2005 meeting. Mr. Schultz recommended the City Council adopt Ordinance No. 506 by title and number only. Mayor Peters opened the hearing for public comment. John Barta stated parking is not a problem caused by granny units. Roy Kline stated granny units would allow for the tenant and their guests to park on the street, which will cause overcrowding in the street. 0 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 28, 2005 Frank DeVine stated the existence of secondary units in our community does not insure that property values will go up. He said parking is a concern with secondary units especially in a lower density neighborhood. Ken Vesterfelt asked how many people have called to complain about granny units. Roger Ewing stated granny units should be maintained as a granny unit, and not used as a large rental. Mayor Peters closed the public comment hearing. MOTION: Councilmember Winholtz moved the City Council adopt Ordinance No. 506 extending the urgency interim ordinance prohibiting the issuance of permits for secondary dwelling units by title and number only. The motion was seconded by Councilmember Baxley and carried unanimously. (5-0) B4 RESOLUTION NO. 12-05 APPROVING HARBOR DEPARTMENT COST OF is LIVING ADJUSTMENTS TO FEES AND SERVICE CHARGES; (HARBOR) Mayor Peters opened the hearing for public comment; there being no comments, Mayor Peters closed the public comment hearing. This item was continued to the April 11, 2005 City Council meeting. B-5 CONSIDERATION OF LOT LINE ADJUSTMENT, CONDITIONAL USE PERMIT, COASTAL DEVELOPMENT PERMIT AND ROAD ABANDONMENT APPLICATIONS TO ALLOW RENOVATIONS AND A NEW 20,000 SQUARE FOOT RETAIL BUILDING AT 520 ATASCADERO ROAD - MINER'S HARDWARE; (PUBLIC SERVICES) Senior Planner Gary Kaiser stated on December 6, 2004, the Planning Commission considered concept plans for the proposed expansion and renovation project at a regularly scheduled public hearing. The proposed project is an allowable use and complies with all applicable development standards. The Planning Commission and City Council approval is required because the site is within a designated PD Overlay zone and in excess of one acre in size. After the Planning Commission and City Council have approved the project in concept, it must be brought back to the Planning Commission for precise plan approval. After considering public testimony and ensuing discussion, the Planning Commission voted unanimously to approve the project with specific direction as to the ® details/changes desired when the project returns for precise plan approval. The applicant 0 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 28, 2005 has since prepared revised plans, which raise no new significant issues and seem responsive to the Planning Commission directives. Mr. Kaiser recommended the City Council approve the conceptual plans received by the Public Services Department on March 10, 2005 and March 14, 2005, based on the findings and conditions adopted by the Planning Commission on December 6, 2004. Mayor Peters opened the hearing for public comment. Ken Vesterfelt expressed support for this project. Mayor Peters closed the public comment hearing. Consensus of Council was in support of this conceptual plan. MOTION: Councilmember Baxley moved the City Council approve the conceptual plans received by the Public Services Department on March 10, 2005 and March 14, 2005, based on the findings and conditions adopted by the is condition Commission on December 6, 2004, and with the removal of condition number 19. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) E B-6 APPEAL OF PLANNING COMMISSION DECISION TO APPROVE A COASTAL DEVELOPMENT PERMIT FOR THREE NEW DUPLEX BUILDINGS AT 470-488 ROCKVIEW STREET; (PUBLIC SERVICES) Senior Planner Gary Kaiser stated the Planning Commission held public hearings on January 3, 2005 and January 18, 2005 to consider the subject Coastal Development Permit. After public testimony and an ensuing dialogue, the Planning Commission voted unanimously to approve the project subject to certain conditions. The approval would have allowed the applicant to proceed with the construction of three duplex buildings on three existing lots for a total of six new residential units located on the south side of Rockview Street, between Hill and Sunset Streets. The appellant disagrees with staff and the Planning Commission with regard to: a) whether proposed grading is consistent with the Local Coastal Program's Hillside Development Policies; b) whether the proposed duplexes are compatible with their surroundings in terms of their bulk and scale; and c) whether the project's water use and parking requirements were accurately portrayed and fairly considered in the decision -making process. Mr. Kaiser recommended the City Council add a condition that prohibits the use of retaining walls and fill outside the footprint of the proposed buildings, and deny the appeal. 10 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 28, 2005 Mayor Peters opened the hearing for public comment. Ray McKelligott, appellant, stated he has filed this appeal so the project would be modified to address safety and visual resources, which are requirements of the General Plan. He said this structure should be built in accordance with the existing natural grade, unless alterations are made to the natural terrain. Mr. McKelligott stated flat land subdivision designs are unacceptable in a hillside setting. He said the report states that scenic and coastal areas should be visually compatible with the surrounding area. Mr. McKelligott stated this proposed project should be scaled back. He stated parking in this area is already a problem with a mobile home park next to it. Greg Ravatt, architect, stated this is a smaller structure than any in the surrounding area. He reviewed the specifics of the project in detail for Council's consideration. Mayor Peters closed the public comment hearing. Councilmember Winholtz stated she has concern that this project can be seen from Highway One. She said every level looks like cut and fill, which is against the General is Plan. Councilmember Baxley stated he likes the plan as proposed and supports denying the appeal. Councilmember DeMeritt stated grading should be kept to a minimum, and houses should be designed to fit the slope of the land. She said the hillside standards should be upheld. Councilmember Peirce stated it is not possible to build a house that is not going to be visible from Highway One and Highway 41. He said this project is superior to most of the houses on this hillside. Mayor Peters stated this project is very attractive, and it does conform to the slope as much as it can. MOTION: Councilmember Baxley moved the City Council deny the appeal of the Planning Commission decision to approve a Coastal Development Permit for three new duplex buildings at 470-488 Rockview Street. The motion was seconded by Councilmember Peirce and carried with Councilmember DeMeritt and Councilmember Winholtz voting no. (3-2) 11 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 28, 2005 IJ C. UNFINISHED BUSINESS C-1 REVIEW OF ABANDONED BOAT ABATEMENT PROGRAM; (CITY COUNCIL) MOTION: Mayor Peters moved the City Council forward the review of an Abandoned Boat Abatement Program to the Harbor Advisory Board. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) C-2 REVIEW OF ABANDONED VEHICLE ABATEMENT PROGRAM; (CITY COUNCIL) MOTION: Mayor Peters moved the City Council direct staff to prepare a staff report on the review of an Abandoned Vehicle Abatement Program. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5- 0) C-3 CONSIDERATION OF CREATING A CITY PUBLIC ART POLICY; (CITY COUNCIL) MOTION: Mayor Peters moved the City Council forward the review of creating a City Public Art Policy to the Recreation & Parks Commission. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) D. NEW BUSINESS D-1 STAFF REPORT ON STATUS OF THE DONATION OF THE ROCK SCULPTURE; (PUBLIC SERVICES) Capital Projects Manager Bill Boucher stated at the February 14, 2005 meeting, the City Council was presented a report addressing the size of the proposed entry rock sculpture and, after discussing matters such as maintenance activities and costs with the proposers, ultimately reaffirmed approval of the donation. Since that meeting, the City has continued to work with the proposers to assure the retention of adequate intersection sight distance and have received a letter of concern from a citizen. The purpose of this report is to provide the City Council and public with updated information on the status of the donation and installation of the sculpture. Mr. Boucher recommended the City Council consider this status report, and direct staff accordingly. 12 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 28, 2005 Councilmember Baxley stated the proposed sculpture should go where the Committee has suggested. Councilmember Winholtz stated City Park could have been a better location; however, since it is not meant for anything other than viewing, she agrees that Council has already accepted it and it should be placed where the Committee has proposed. Councilmember Peirce stated he also concurs with Councilmember Baxley. He said this sculpture is not meant to play on, and if placed in the wrong spot could become a liability. Councilmember DeMeritt stated this is a lovely gift; however, she is concerned with the location and site visibility. Mayor Peters stated this is a lovely gift, but she is also concerned with the proposed location. MOTION: Councilmember Baxley moved the City Council accept the donation of the ® rock sculpture; and, direct staff to proceed with the project and work with the group of donors on a maintenance program. The motion was seconded by Councilmember Peirce and carried with Mayor Peters and Councilmember DeMeritt voting no. (3-2) E. ADJOURNMENT The meeting adjourned at 10:55 p.m. Recorded by: Bridgett Bauer City Clerk C/J 13 El 11 City of Morro Bay Morro Bay, CA 93442 • 805-772-6200 wwxv.morro-bay.ca.us NOTICE OF SPECIAL MEETING NOTICE IS HEREBY GIVEN that the Morro Bay City Council will be holding a Special Meeting on Thursday, March 17, 2005 at 6:00 p.m. to be held in the Community Center Multi Purpose Room, 1001 Kennedy Way, Morro Bay, California. The City Council will be discussing services priorities for the proposed Fiscal Year 2005/2007 Budget. DATED: March 11, 2005 FINANCE 595 Harbor Street ADMINISTRATION 595 Harbor Street FIRE DEPARTMENT 715 Harbor Street PUBLIC SERVICES 955 Shasta Street HARBOR DEPARTMENT CITY ATTORNEY POLICE DEPARTMENT 1275 Embarcadero Road 955 Shasta Avenue 850 Morro Bay Boulevard RECREATION AND PARKS 1001 Kennedy Way ® 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 14, 2005 CLOSED SESSION — MARCH 14, 2005 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA CS-1 CONFERENCE WITH LABOR NEGOTIATOR: GOVERNMENT CODE ®' SECTION 54957.6: Conference with City Manager, the City's Designated Representative, for the purpose of reviewing the City's position regarding the terms and compensation paid to employees and giving instructions to the Designated Representative. CS-2 REAL PROPERTY TRANSACTIONS: GOVERNMENT CODE SECTION 54956.8: Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property. Property: Lease Site SW Tidelands Park Negotiating Parties: City and Richards & Kolb Negotiations; Lease terms Property: Lease Site l IOW- I 12W - Great American Fish Company. Negotiating Parties: City and George Leage Negotiations; Lease terms IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. r] L_ ® PUBLIC SESSION — MARCH 14, 2005 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 MINUTES FOR THE FEBRUARY 28, 2005 REGULAR MEETING; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 RESOLUTION NO. 10-05 IMPLEMENTING COUNCIL ADOPTED INCREASES TO POLICE DEPARTMENT FEES AND PARKING VIOLATIONS; (POLICE) RECOMMENDATION: Adopt Resolution No. 10-05. A-3 NOTICE OF COMPLETION OF THE PHOTOVOLTAIC PROJECT; (RECREATION & PARKS) RECOMMENDATION: Accept the Photovoltaic Energy Project as complete by Renewable Energy Concepts, and authorize the filing of the Notice of Completion. A4 PROCLAMATION DECLARING APRIL 16, 2005 AS "CLEAN UP MORRO BAY DAY'; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. ® B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-I RESOLUTION NO. 08-05 APPROVING AN APPLICATION, FUNDING AND EXECUTION OF A GRANT AGREEMENT FROM THE GENERAL ALLOCATION OF THE STATE CDBG PROGRAM; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 08-05. B-2 CONSIDERATION OF A FIVE -LOT RESIDENTIAL COMMUNITY HOUSING AND MIXED -USE PROJECT PROPOSED AT 555 MAIN STREET; (PUBLIC SERVICES) RECOMMENDATION: Accept the Planning Commission's recommendation to conditionally approve the project. B-3 PUBLIC HEARING ON PROPOSED UPDATE TO THE ZONING ORDINANCE, ZONING MAP AND ACCOMPANYING NEGATIVE DECLARATION; (PUBLIC SERVICES) RECOMMENDATION: Receive public comment; identify suggested changes; and, continue public hearing to the March 28, 2005 City Council meeting. ® C. UNFINISHED BUSINESS C-1 REVIEW OF ABANDONED BOAT ABATEMENT PROGRAM; (CITY COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. C-2 REVIEW OF ABANDONED VEHICLE ABATEMENT PROGRAM; (CITY COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. C-3 CONSIDERATION OF CREATING A CITY PUBLIC ART POLICY; (CITY COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. D. NEW BUSINESS D-1 RESOLUTION NO. 09-05 APPROVING A SUBLEASE FOR A PORTION OF LEASE SITE 67/67W, LOCATED AT 575 EMBARCADERO, BETWEEN YNEZ VIOLE-O'NEILL AND ROBERT AND DEBORAH BAIRD; ® (HARBOR) RECOMMENDATION: Adopt Resolution No. 09-05. D-2 RECOMMENDATIONS OF AD -HOC EMERGENCY SERVICES COMMITTEE REGARDING FIRE SERVICE CAPITAL AND OPERATIONS FUNDING; (FIRE) RECOMMENDATION: Receive report and recommendations of the Ad -Hoc Emergency Services Committee, 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. 4 MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION —MARCH 14, 2005 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Peters called the meeting to order at 5:00 p.m. PRESENT: STAFF: CLOSED SESSION Janice Peters Thad Baxley Melody DeMeritt William Peirce Betty Winholtz Robert Hendrix Robert Schultz Mayor Councilmember Councilmember Councilmember Councilmember City Manager City Attorney MOTION: Councilmember Peirce moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Baxley and unanimously carried. (5-0) Mayor Peters read the Closed Session Statement. ® CS-1 CONFERENCE WITH LABOR NEGOTIATOR; GOVERNMENT CODE SECTION 54957.6: Conference with City Manager, the City's Designated Representative, for the purpose of reviewing the City's position regarding the terms and compensation paid to employees and giving instructions to the, Designated Representative. CS-2 REAL PROPERTY TRANSACTIONS; GOVERNMENT CODE SECTION 54956.8: Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property. Property: Lease Site SW Tidelands Park Negotiating Parties: City and Richards & Kolb Negotiations; Lease terms Property: Lease Site 1 I OW- 112W - Great American Fish Company. Negotiating Parties: City and George Leage Negotiations; Lease terms The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:58 p.m. MOTION: Councilmember Peirce moved the meeting be adjourned. The motion was seconded by Councilmember Baxley and unanimously carried. (5-0) 0 The meeting adjourned at 5:58 p.m. E MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —MARCH 14, 2005 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Peters called the meeting to order at 6:00 p.m PRESENT: Janice Peters Mayor Thad Baxley Councilmember Melody DeMeritt Councilmember William Peirce Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix Robert Schultz Bridgett Bauer Rick Algert Bruce Ambo John DeRohan Joan Drake Mike Pond Mike Prater Jim Koser Andrea Lueker City Manager City Attorney City Clerk Harbor Director Public Services Director Police Chief Administrative Technician 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 Hank Roth announced the next Neighborhood Watch information meeting will be held on March 23`d, and the topic will be Community Oriented Policing and Problem Solving. The following people requested the City Council approve filling all Police Department positions in the upcoming budget: Paul Horton, Don Schelenberger, Bob Schwenoah, Ken Vesterfelt, Dale Reddell, and Todd Barnes. The following people requested the City Council approve filling all Fire Department positions in the upcoming budget: Keith Taylor, John Weiss, Lynda Merrill, Jeff Jones, Betty Forsythe, and Dale Reddell. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —MARCH 14, 2005 The following people requested the City Council maintain funding of the Community Promotions Committee, Chamber of Commerce and Visitor Center budgets: Ken Vesterfelt, Mary Hay, Mick Tyse, John Weiss, Jack Barrett, Pat Mullen, and Rhonda McPherson. Ray McKelligott addressed Item D-2 (Recommendations of Ad -Hoc Emergency Services Committee Regarding Fire Service Capital and Operations Funding) and stated the citizens should know what is in the report and a public hearing should be held before the City Council adopts this report. Todd Barnes addressed the limitation of hunting in the back bay, and requested the City be sensitive to those who live around the estuary when considering this issue. Mandy Davis addressed public safety issues with hunting in the back bay, and stated waiting for someone to be hurt or killed is not acceptable. Andrew Christie, representing the Sierra Club, addressed hunting in the back bay, and is requesting the Fish & Game Department adopt a resolution banning hunting in the ® estuary. John Barta stated the ban on secondary units could decrease property values by at least $100,000. He said the recommendation made by the Planning Commission could have the affect to make it impossible to build a secondary unit on every lot in town. Frank Devine addressed the disregard of the zoning law by the Planning Commission. He said North Morro Bay is continuing to be ignored with no effort to preserve the commercially zoned area on North Main Street. Mr. Devine stated mixed -use development is needed in this area of the City. Jack McCurdy stated PG&E and Duke Energy have entered into a contract wherein the existing plant will produce electricity, which will be bought by PG&E. He said CAPE is considering filing a request for review of this contract by the Public Utilities Commission. Mr. McCurdy stated CAPE wants to know what the impacts or financial benefits might be on the community. Dale Reddell stated the City could build revenue by renegotiating with Duke Energy, and also by making the building process easier. David Nelson stated the City should have a volunteer fire department to join with the City's existing Fire Department. He said the Chamber of Commerce and Visitor Center ® should have a matching fund to help advertise the City. t ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 14, 2005 Mayor Peters closed the hearing for public comment. Mayor Peters called for a break at 7:20 p.m.; the meeting resumed at 7:35 p.m. DECLARATION OF FUTURE AGENDA ITEMS Councilmember DeMeritt requested a staff report regarding discussion on downtown visioning opportunities; Councilmember Peirce and Mayor Peters concurred. Councilmember Winholtz requested the review of noticing requirements; Councilmember DeMeritt concurred. Mayor Peters requested a status report on the donation of the rock sculpture be agendized; Councilmember DeMeritt and Councilmember Baxley concurred. A. CONSENT CALENDAR ® Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. E A-1 MINUTES FOR THE FEBRUARY 28, 2005 REGULAR MEETING; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 RESOLUTION NO. 10-05 IMPLEMENTING COUNCIL ADOPTED INCREASES TO POLICE DEPARTMENT FEES AND PARKING VIOLATIONS; (POLICE) RECOMMENDATION: Adopt Resolution No. 10-05. A-3 NOTICE OF COMPLETION OF THE PHOTOVOLTAIC PROJECT; (RECREATION & PARKS) RECOMMENDATION: Accept the Photovoltaic Energy Project as complete by Renewable Energy Concepts, and authorize the filing of the Notice of Completion. 2 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —MARCH 14, 2005 A4 PROCLAMATION DECLARING APRIL 16, 2005 AS "CLEAN UP MORRO BAY DAY"; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. Councilmember Winholtz pulled Item A-2 from the Consent Calendar; Councilmember Peirce pulled Items A-3 and A-4. MOTION: Councilmember Baxley moved the City Council approve Item A-1 of the Consent Calendar. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) A-2 RESOLUTION NO. 10-05 IMPLEMENTING COUNCIL ADOPTED INCREASES TO POLICE DEPARTMENT FEES AND PARKING VIOLATIONS; (POLICE) Councilmember Winholtz pulled this item for clarification on Exhibit "A" relating to Support Services Clerk activity. Chief DeRohan responded the charge would be per hour ® for activities such as researching or copying a report or tapes. Councilmember Winholtz stated she would like to eliminate some of the parking fines that are not charged in any other city. Chief DeRohan clarified that these charges are specific to the California Vehicle Code, and some agencies label them differently. 11 MOTION: Councilmember Baxley moved the City Council approve Item A-2 of the Consent Calendar. The motion was seconded by Councilmember Peirce and carried with Councilmember DeMeritt and Councilmember Winholtz voting no. (3-2) A-3 NOTICE OF COMPLETION OF THE PHOTOVOLTAIC PROJECT; (RECREATION & PARKS) Councilmember Peirce addressed this item for -public information. MOTION: Councilmember Peirce moved the City Council approve Item A-3 of the Consent Calendar. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) 5 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 14, 2005 A4 PROCLAMATION DECLARING APRIL 16, 2005 AS "CLEAN UP MORRO. BAY DAY'; (ADMINISTRATION) Councilmember Peirce pulled this item for public information. MOTION: Mayor Peters moved the City Council approve Item A4 of the Consent Calendar. The motion was seconded by .Councilmember Peirce and carried unanimously. (5-0) . B. PUBLIC HEARINGS, REPORTS & APPEARANCES B-1 RESOLUTION NO. 08-05 APPROVING AN APPLICATION. FUNDING AND EXECUTION OF A GRANT AGREEMENT FROM THE GENERAL ALLOCATION OF THE STATE CDBG PROGRAM; (PUBLIC SERVICES) Public Services Director Bruce Ambo stated the City Council has made it a priority to have two fire stations in service. In addition to the main station at 715 Harbor Street, the City currently maintains a station at 460 Bonita Street in North Morro Bay. The station ® on Bonita Street does not conform to current building standards or essential services standards; it currently houses only apparatus and equipment and has not been staffed since approximately 1970. Bonita Street is located in a Targeted Income Group area, making this station eligible for Community Development Block Grant (CDBG) grant funding. To provide some idea of costs associated with reopening this fire station, staff requested Fraser Seiple Architects prepare a preliminary budget analysis to replace the structure. The estimate is $1,497,500 for a new 3,900 square -foot building. At the February 14, 2005 meeting, City Council authorized preparation of an application for a 3- year, $1,500,000 grant to fund a Fire Station Replacement Project. If granted, the City will be unable to apply for CDBG housing rehabilitation funding for the next three years. However, the City has received notification that $486,000 in HOME funding has been approved, which may be used for affordable housing rehabilitation anywhere in Morro Bay. The City is also eligible to apply for an additional $500,000 each year from HOME, and will apply for funding from Cal HOME to expand the program. Mr. Ambo recommended the City Council open the public hearing to receive comments; and, adopt Resolution No. 08-05 approving an Application for Funding in the amount of $1,500,000 and the Execution of a Grant Agreement and any amendments thereto from the General Allocation of the State CDBG Program. Mayor Peters opened the hearing for public comment. Stan House stated he supports this grant application, which will help fund the second fire ® station in North Morro Bay. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 14, 2005 David Nelson asked how this funding is earmarked. He said the Cloister property is a good location for a firehouse. Frank DeVine addressed a situation where a child stopped breathing in North Morro Bay and it seemed like forever before the Fire Department arrived. He said he supports a second fire station in North Morro Bay. Ken Vesterfelt stated a police officer was the first one to arrive at the incident described by Mr. DeVine, and issued resuscitation. Bill Martony stated $1.5 million should be used for a central fire station. Jeff Jones expressed support for this grant application. He said opening a second fire station is a capital improvement for the City. Mr. Jones stated a central station would leave out the south and north ends of the City. Mayor Peters closed the public comment hearing. ® Consensus of the City Council was in support of approving the Application for Funding, and the Execution of a Grant Agreement. MOTION: Councilmember Peirce moved the City Council adopt Resolution No. 08-05 approving an Application for Funding in the amount of $1,500,000 and the Execution of a Grant Agreement and any amendments thereto from the General Allocation of the State CDBG Program. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) B-2 CONSIDERATION OF A FIVE -LOT RESIDENTIAL COMMUNITY HOUSING AND MIXED -USE PROJECT PROPOSED AT 555 MAIN STREET; (PUBLIC SERVICES) Associate Planner Mike Prater stated the applicant is requesting approval of a Tentative Tract Map, Conditional Use Permit and Coastal Development Permit to subdivide the westerly lots into 5 parcels for a Community Housing Project with exceptions to setbacks and common open space. The proposed project will also develop the easterly lots with two commercial buildings totaling approximately 1,800 square feet along Main Street in conjunction with a total of 16 one -bedroom apartment units. A joint use shared parking facility between the commercial office space and the apartments is requested that would reduce the parking by 12% or 4 spaces. On January 3 and 18, 2005, the Planning Commission considered the application at their regularly scheduled public hearings. The ® Planning Commission received public testimony, closed the public hearing and took an ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —MARCH 14, 2005 action recommending approval of the Tract Map, Coastal Development Permit and Conditional Use Permit for the project. The Commission's action included concerns over setbacks, common space and parking as warranting discussion by the City Council. The project requires the City Council to decide if the uses proposed are consistent with the ordinance and compatible with the neighborhood. The City Council should also consider if the benefits offered by the project adequately outweighs the exceptions requested. Mr. Prater recommended the City Council accept the Planning Commission's recommendation to conditionally approve the project. George Garcia, representing the applicant, talked at length about the project and addressed concerns of the Council. Mayor Peters opened the hearing for public comment. Priscilla Ko stated this project is too dense and out of character for the neighborhood. She requested special conditions be applied to the project: 1) that construction hours be limited to Monday — Friday from 8:00 am to 5:00 p.m.; 2) construction vehicles are not to park on Main Street; and 3) dust control should be provided. ® Frank Devine stated he has a concern that the proposed office spaces will be converted over to residential. He said the City needs an architectural review board for projects such as this. Mr. Devine stated this project fails to provide continuous commercial frontage on Main Street. David Nelson stated he agrees that this project does not provide commercial use along Main Street. He asked where are all the cars are going to park. Mr. Nelson also expressed the importance of providing fine sprinklers in this project. Bill Martony expressed concern with the size of this project. He suggested open space could be provided on lot 5 as a central gathering place for the residents. Roger Ewing expressed opposition for this project. He said the quality of life has become more urbanized than intended. Mr. Ewing stated the bulk and size of the project goes against the neighborhood it is being proposed, and the parking is insufficient. Lynda Merrill expressed opposition to this project by stating the zoning ordinance states the City must protect public views and restore and enhance visual quality in visually degraded areas. She said the City must designate and promote the orderly development of the business district. n ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —MARCH 14, 2005 Roy Kline stated this project is not a public benefit to the City. He said this project is too large for what is being proposed, and has inadequate parking. Norm MacTaggart stated this project is too big and has inadequate parking. He said there needs to be open space where kids can play. George Garcia, representing the applicant, responded to the public's concerns. Mayor Peters closed the public comment hearing. Councilmember Baxley stated he likes the architecture of the project, with the single- family units on the west side of the property and the two mixed -use components on the east side of the property. He said he does not like the number of units proposed for the size of the lot. Councilmember Baxley stated he would like to see a redesign of this project and then further discussion of either the Planning Commission or City Council. Councilmember Winholtz stated she has concerns with the non-conformance of the setbacks. She said this project meets moderate income housing requirements, and she ® would like the housing units to meet low-income housing requirements. Councilmember Winholtz stated there is a lack of commerce in this commercial zone, and there are conflicts with available parking. She said for those reasons, she will not support this project. Councilmember Peirce stated this is an opportunity to bring more -affordable housing to the City, which may allow some who work in the City to also live here. He said does not agree with placing a heavy business district zone down to Driftwood Street. Councilmember Peirce stated he likes the fact that this project is not the typical "common box" project. He said there are apartments that do not provide common space. Councilmember Peirce stated he supports this project. Councilmember DeMeritt showed slides of some of the quaint houses in the area. She expressed her opposition to this project, stating the proposed rent is not considered low- income housing. Councilmember DeMeritt stated she would like the applicant to design a project within the setbacks. Mayor Peters stated she would rather have a private yard than a common yard for single- family residences. She said she is not opposed to allowing reduced setbacks because it would allow distinction to the home front. Mayor Peters stated she appreciates the fact that the applicant is providing workforce housing. She said office space should be encouraged, and she would like this commercial use to be in the front units. Mayor Peters stated she supports mixed -use parking. E ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —MARCH 14, 2005 MOTION: Councilmember Winholtz moved the City Council deny this project. The motion was seconded by Councilmember DeMeritt. City Attorney Robert Schultz addressed the specifications of Senate Bill 1818 (density bonuses for projects that provide lower income housing units). Councilmember DeMeritt withdrew her second to the motion. The motion died for lack of a second. MOTION: Councilmember Peirce moved the City Council continue the consideration of a Five -Lot Residential Community Housing and Mixed -Use Project proposed at 555 Main Street to the March 28, 2005 City Council meeting. The motion was seconded by Councilmember Baxley and carried with Councilmember Winholtz and Councilmember DeMeritt voting no. (3-2) B-3 PUBLIC HEARING ON PROPOSED UPDATE TO THE ZONING ORDINANCE, ZONING MAP AND ACCOMPANYING NEGATIVE ® DECLARATION; (PUBLIC SERVICES) Public Services Director Bruce Ambo stated at the February 28, 2005 meeting, the City Council completed their review up to the Industrial Zones (General and Coastal Dependent), and left off at the Public Facilities District. The R-3 and R-4 zones are proposed to be combined into a single Multi -Family Residential zone with a 25-foot height limitation. Formerly, allowable building heights in the R-4 zone would be reduced from 30 feet to 25 feet. Staff was directed to research compatibility standards for lowering building heights in areas that abut single family and duplex residential zones. Certain commercial uses were also added to the proposed RM District - Use Regulations. These uses are currently allowed in the R-3 and R-4 zones with a Conditional Use Permit (CUP), and would continue to be similarly allowed with a CUP in the RM District. Staff suggests the Council discussion begin with the proposed RM Zone compatibility standards and then finish the Commercial/Mixed-Use District by working from the Planning Commission addendum. Mr. Ambo recommended the City Council also cover the Commercial/Mixed Use District, Public Facilities District, Open Space District, Agricultural District, and Planned Development Overlay Zone. Mr. Ambo also recommended the City Council receive public comment, identify suggested changes, and continue the public hearing to the March 28 h City Council meeting. Mayor Peters opened the hearing for public comment. 11 10 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —MARCH 14, 2005 David Nelson stated this is a contentious complicated issue, and the City should take more time to work on it with the community and Planning Commission. He said the City does not need to have granny units on every house in the community, especially those that are built on small lots. Mr. Nelson stated he supports building homes on a second story above commercial buildings. Lynda Merrill stated she is proud to live in a land -efficient multi -family home. She said the property abutting her condominium is zoned R-3 and is proposed to be rezoned R-4 (RM), which would allow a 3-story building that would over -shadow her complex which would be unfair and unnecessary. Mayor Peters closed the public comment hearing. No action was taken on this item, and it was continued to the March 28, 2005 City Council meeting. Mayor Peters called for a break at 10:10 p.m.; the meeting resumed at 10:15 p.m. ® C. UNFINISHED BUSINESS C-1 REVIEW OF ABANDONED BOAT ABATEMENT PROGRAM; (CITY COUNCIL) This item was continued to the March 28, 2005 City Council meeting. C-2 REVIEW OF ABANDONED VEHICLE ABATEMENT PROGRAM; (CITY COUNCIL) This item was continued to the March 28, 2005 City Council meeting. C-3 CONSIDERATION OF CREATING A CITY PUBLIC ART POLICY; (CITY COUNCIL) This item was continued to the March 28, 2005 City Council meeting. 7 it ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 14, 2005 D. NEW BUSINESS D-I RESOLUTION NO. 09-05 APPROVING A SUBLEASE FOR A PORTION OF LEASE SITE 67/67W, LOCATED AT 575 EMBARCADERO, BETWEEN YNEZ VIOLE-O'NEILL AND ROBERT AND DEBORAH BAIRD. (HARBOR) Harbor Director Rick Algert stated the lessee (Ynez Viole-O'Neill) of Lease Site 67/67W has requested approval of a sublease agreement with Robert and Deborah Baird for the retail sales portion of Lease Site 67/67W located at 575 Embarcadero. The Bairds plan on operating a gift and home decor business on the site. The lease agreement for Lease Site 67/67W states that approval of an assignment or sublease cannot be unreasonably withheld. As all terms of the master lease are in compliance, Mr. Algert recommended the City Council adopt Resolution No. 09-05 approving a sublease agreement for a portion of Lease Site 67/67W. MOTION: Councilmember Baxley moved the City Council adopt Resolution No. 09- 95 approving a Sublease for a Portion of Lease Site 67/67W, located at Wr_ 575 Embarcadero, between Ynez Viole-O'Neill and Robert and Deborah Baird. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) D-2 RECOMMENDATIONS OF AD -HOC EMERGENCY SERVICES COMMITTEE REGARDING FIRE SERVICE CAPITAL AND OPERATIONS FUNDING; (FIRE) Stan House, Chairman of the Ad -Hoc Emergency Services Committee, reviewed the report on Fire Service Capital and Operations Funding. Councilmember Peirce thanked the Committee for an excellent job, and all the hard work put into this report. Councilmember DeMeritt stated a benefit assessment district is not unheard of. and because of the impact of this report on the community, this should be agendized as a public hearing. Councilmember Winholtz stated she supports the Ad -Hoc Emergency Services Committee recommendations #1, 2, and 6. She said she would like to receive and file this report, and obtain an appraisal on the San Jacinto property. Councilmember Winholtz stated she is opposed to a benefit assessment district because only property owners are ® allowed to vote. 12 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —MARCH 14, 2005 Councilmember Baxley stated he supports all recommendations made by the Ad -Hoc Emergency Services Committee. Mayor Peters stated the City has a need to get the Fire Department out of the tents and into a building. She said property owners have more at risk in property value, and the rest of the community would benefit from the paramedic support. MOTION: Councilmember Winholtz moved the City Council go beyond 11:00 p.m. The motion was seconded by Mayor Peters and carried with Councilmember Peirce voting no. (4-1) MOTION: Councilmember Baxley moved the City Council approve the following: 1) receive and file the Fire Services Survey information; 2) begin the process required to sell City property presently designated as a future fire station site, located on San Jacinto Street property; 3) establish a policy that the entire proceeds from the sale of the San Jacinto Street property be designated for construction of the replacement headquarters fire station; 4) ® begin the process to pursue the establishment of a benefit assessment district by directing staff to prepare a cost analysis; 5) recognize and encourage the Friends of the Firefighters; a new volunteer citizens group formed for the purpose of raising funds to promote increased fire services; and 6) disband the Ad -Hoc Emergency Services Committee. The motion was seconded by Councilmember Peirce and carried with Councilmember Winholtz voting no. (4-1) ADJOURNMENT The meeting adjourned at 11:05 p.m. Recorded by: Bridgett 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 — FEBRUARY 28, 2005 CLOSED SESSION — FEBRUARY 28, 2005 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 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. ® PUBLIC SESSION — FEBRUARY 28, 2005 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 MINUTES FOR THE FEBRUARY 14, 2005 REGULAR MEETING; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 INVESTMENT REPORT FOR JANUARY 2005; (FINANCE) RECOMMENDATION: Receive report for information. A-3 RESOLUTION NO.07-05 APPROVING THE RECREATION & PARKS COST OF SERVICES STUDY AND AMENDMENTS TO THE MASTER FEE SCHEDULE FOR FACILITY RENTAL FEES; (RECREATION & PARKS) RECOMMENDATION: Adopt Resolution No. 07-05. A-4 PROCLAMATION DECLARING MARCH 2O05 AS "AMERICAN RED CROSS MONTH'; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. B. PUBLIC HEARINGS, REPORTS & APPEARANCES B-I REVIEW AND CONSIDERATION OF CHANGES TO THE POLICE ® DEPARTMENT FEE SCHEDULE AND MASTER FEE SCHEDULE; (POLICE) RECOMMENDATION: Approve the recommended fee adjustments for the Police Department. E B-2 PUBLIC HEARING ON PROPOSED UPDATE TO THE ZONING ORDINANCE, ZONING MAP AND ACCOMPANYING NEGATIVE DECLARATION; (PUBLIC SERVICES) RECOMMENDATION: Receive public comment; identify suggested changes; and, continue public hearing to the March 14, 2005 City Council meeting. C. UNFINISHED BUSINESS — NONE. D. NEW BUSINESS D-1 REVIEW OF MID -YEAR BUDGET REPORT FOR FISCAL YEAR 2004-2005; (FINANCE) RECOMMENDATION: Approve the proposed changes to the adopted budget, and direct staff to draft a resolution formally authorizing modifications to the budget. ki ® D-2 RESOLUTION NO.06-05 APPROVING A SUBLEASE FOR A PORTION OF LEASE SITE 86/86W, LOCATED AT 801 EMBARCADERO, BETWEEN THE FISHBOWL RESTAURANT LLC AND RON BOONE; (HARBOR) RECOMMENDATION: Adopt Resolution No. 06-05. D-3 REVIEW OF ABANDONED BOAT ABATEMENT PROGRAM; (COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. DA REVIEW OF ABANDONED VEHICLE ABATEMENT PROGRAM; (COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. D-5 CONSIDERATION OF CREATING A CITY PUBLIC ART POLICY; (COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. D-6 RESCHEDULING BROWN ACT AND POLICIES AND PROCEDURES WORKSHOP; (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. 13 ® MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION — FEBRUARY 28, 2005 CITY HALL CONFERENCE ROOM - 5:00 P.M. 11 Mayor Peters 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 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 Baxley and unanimously carried. (5-0) Mayor Peters read the Closed Session Statement. CS-1 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. Ne otg iating 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 Peirce moved the meeting be adjourned. The motion was seconded by Councilmember Baxley and unanimously carved. (5-0) The meeting adjourned at 5:50 p.m. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 28, 2005 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Peters called the meeting to order at 6:00 p.m. PRESENT: Janice Peters Mayor Thad Baxley Councilmember Melody DeMeritt Councilmember William Peirce 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 Mike Pond Fire Chief Mike Prater Associate Planner 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. C PUBLIC COMMENT The following people addressed the City's current budget situation: Wanda Durick, Christine Presnall, Susan Heinemann, Jim Bianchi, Dan Glessman, Peter Risley, Chuck Meissnser, David Nelson, Bill Woodson, and Garry Johnson. Greg Smith, Superintendent of State Parks, gave an update on the Snowy Plover issue, and the State Park Campground renovation project, noting the park should be open by April 1, 2005. Phil Hill stated Mandy Davis has done a lot of good for the City, and expressed concern with an incident that involved Ms. Davis who is being harassed by the Black Brant Group. 2 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 28, 2005 Karen Hamon stated what Mandy Davis is trying to do is to save the estuary and its animals. She requested Council support the consideration of cutting back on hunting in the back bay. Susie Correa, Sheriff's Department, stated she is looking for support of the community for the Estero Bay Youth Coalition. Casey Chaffe stated she is involved with the Estero Bay Youth Coalition and encouraged representation from Morro Bay on this board, which benefits the youth in our community. Roger Castle stated he has been appointed as President of the Historical Society in Morro Bay, and invited the public to attend their meetings. David Nelson stated he saw the power plant in Moss Landing and stated it was not quiet; it's ugly and polluting. He said Council should visit this plant to see what it looks like prior to signing any agreements with Duke Energy. ® George Caravana expressed concern with the proposed zoning on Alder Street. He said commercial properties are allowed 30-foot height regulations, and the neighbors behind these properties are limited to 25 feet, which will lower the property values of the residences behind these buildings. Mandy Davis stated there should be respect for humanity and animals. She said she and others are trying to change the policies of Fish & Game as they relate to hunting, but they are handling it with respect. Ed Sylvester addressed regulations that are placed on commercial fishermen. Juliana Epperly addressed the identification of sources of E-Coli contamination in the shellfish growing areas of the Morro Bay Estuary. Colby Crotzer addressed protocol of the agenda, and also stated aggressive leadership is needed at this time. Ed Dumong stated he loves to go duck hunting in the back bay, and would like that the regulations will not change to the point where hunters cannot enjoy this sport. Alex Beattie stated tennis courts are not needed at Del Mar Park because they take up too much space, and a preferred use would be for walking dogs or a skate park. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 28, 2005 Brad Baker thanked the City for the stop signs at Estero and Anchor Streets, and the traffic has calmed down since their placement. Garry Johnson expressed concern with the safekeeping of the estuary with too many agencies involved. He also stated that neighbors should have been informed of the training exercise held by the SherifPs Department at Anthony's on Sunday. Mayor Peters closed the hearing for public comment. Mayor Peters called for a break at 7:35 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 MINUTES FOR THE FEBRUARY 14, 2005 REGULAR MEETING: (ADMINISTRATION) I RECOMMENDATION: Approve as submitted. A-2 INVESTMENT REPORT FOR JANUARY 2005; (FINANCE) RECOMMENDATION: Receive report for information. A-3 RESOLUTION NO. 07-05 APPROVING THE RECREATION & PARKS COST OF SERVICES STUDY AND AMENDMENTS TO THE MASTER FEE SCHEDULE FOR FACILITY RENTAL FEES; (RECREATION & PARKS) RECOMMENDATION: Adopt Resolution No. 07-05. A-4 PROCLAMATION DECLARING MARCH 2O05 AS "AMERICAN RED CROSS MONTH'; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. Councilmember DeMeritt pulled Item A-1 from the Consent Calendar; Councilmember Winholtz pulled Item A-3. 4 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 28. 2005 MOTION: Councilmember Baxley moved the City Council approve Items A-2 and A4 of the Consent Calendar. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) A-1 MINUTES FOR THE FEBRUARY 14, 2005 REGULAR MEETING; (ADMINISTRATION) Councilmember DeMeritt requested an addition be made to page 10, paragraph 2 as follows: "Council suggested that any discussion on connecting average heights with setbacks be tagged for discussion by the Planning Commission." MOTION: Councilmember DeMeritt moved the City Council approve Item A-1 of the Consent Calendar as amended. The motion was seconded by Councilmember Baxley and carried unanimously. (5-0) A-3 RESOLUTION NO. 07-05 APPROVING THE RECREATION & PARKS COST OF SERVICES STUDY AND AMENDMENTS TO THE MASTER FEE SCHEDULE FOR FACILITY RENTAL FEES; (RECREATION & PARKS) ® Councilmember Winholtz asked why the increase for adult basketball is so high, and expressed concern that people will go somewhere else. Recreation & Parks Director Andrea Lueker clarified that this fee is high because of the high gym rental rates. She said this fee has already been established. MOTION: Councilmember Winholtz moved the City Council approve Item A-3 of the Consent Calendar. The motion was seconded by Councilmember Baxley and carried unanimously. (5-0) B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 REVIEW AND CONSIDERATION OF CHANGES TO THE POLICE DEPARTMENT FEE SCHEDULE AND MASTER FEE SCHEDULE; (POLICE) Police Chief John DeRohan stated the Police Department fee schedule has not been updated in at least five years and the Morro Bay police fees are well below the County median of surveyed local police agencies. Some of the existing fees do not comply with current state law and as such it was necessary to review the current fees and adjust accordingly. The parking violation fees have not been adjusted in several years and the current parking violation amounts are so low they do not serve as a deterrent. The police is fees of seven other local agencies were reviewed and a median rate was calculated for 5 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 28, 2005 each fee category. Due to the police fee categories being the same with other agencies, paid time/fee studies by one agency would be applicable to others. Chief DeRohan recommended elevating most of the Police Department fees and all the parking violation fees to be in line with the County median and actual hourly costs of personnel. He said it should be noted that law violators, defense firms, and insurance companies pay most police fees and so there is little impact on general community members. Mayor Peters opened the hearing for public comment; there being no comments, Mayor Peters closed the public comment hearing. Councilmember Baxley stated he supports the proposed increase in these fees. Councilmember Winholtz stated she supports increases; however, she requested not all fees be raised so significantly (i.e. parking violations). She said she supports higher increases to fees that are issued for violations such as fire hydrant blockage and parking in a fire lane. Councilmember Peirce stated he would recommend charging $300 for both the vehicle ® abandonment and towing abandoned car violations. He said he supports a $40 fine for parking violations. Councilmember DeMeritt stated parking violation fines should not be so significant to discourage tourists from coming to the City. She said she supports maintaining higher fees for parking violations in fire lanes, handicap spaces, etc.; however, she would like to keep regular parking violations for people who are shopping and/or dining at a lower fine. Mayor Peters stated she supports the proposed increase in fees. She said other cities in the County are charging the higher fee for parking violations. MOTION: Councilmember Baxley moved the City Council approve the recommended fee schedule update and parking violation fees, with an amendment to vehicle abandonment on street and removal fee to $300, with staff to return with an implementing resolution for Council approval. The motion was seconded by Councilmember Peirce and carried with Councilmember DeMeritt and Councilmember Winholtz voting no. (3-2) CJ ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 28, 2005 B-2 PUBLIC HEARING ON PROPOSED UPDATE TO THE ZONING ORDINANCE, ZONING MAP AND ACCOMPANYING NEGATIVE DECLARATION; (PUBLIC SERVICES) Associate Planner Mike Prater stated public hearings on the update to the Zoning Ordinance, Zoning Map and Environmental Document were held on January 25, 2005 and February 14, 2005, and was continued to the Council meetings on February 28'". At the February 14°i hearing, the City Council finished the review of the Residential Districts, with the exception of Second Dwelling Unit provisions, which were referred to the Planning Commission. Changes to the Residential Development Standard for the RS- B District included changing the existing lot size to accommodate the Cloister's Subdivision, and correcting the side yard setback to five feet; and in the RM District the height limit was lowered to 25 feet and the rear set back was changed for consistency with the current procedure. Mr. Prater recommended the City Council open the hearing for public comment, identify suggested changes, and continue the public hearing to the March 14`h meeting. Mayor Peters opened the hearing for public comment. ® Dorothy Cutter requested the proposed mixed -use zoning be kept the way it is because it is in a residential neighborhood. She also addressed the PD Overlay and said it has been abused and it is a developer's gain; she requested Council do away with that and keep the standards the same. David Nelson expressed concern with the PD Overlay stating developers are gaining from this designation. He said the proposed designations have too many loopholes that may change the character of the City. Susan Heinemann shared the definition of a PD Overlay designation noting it is very vague. She said approximately 65% of the City is under a PD Overlay designation. Ms. Heinemann stated a PD Overlay gives a property owner a deviation in minimum lot area, yard setbacks, height limits and other physical dimensions. She suggested eliminating the PD Overlay designation. Alex Beattie stated a profit -maximizing developer would build the largest house to fit on a lot. He said if the City is serious about providing affordable housing, the maximum lot coverage should be reduced and setbacks should be increased. Bob Tefft stated it would be helpful if the agenda would reflect what sections of the ordinance will be reviewed. 11 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 28, 2005 Ed Dumong stated houses are being built so large that there are no yards for kids to play in. He also stated garages should be used to park cars and not used for storage. Mayor Peters closed the public comment hearing. Consensus of the Council was to maintain a 25-foot height limit in the R-4 zone. MOTION: Councilmember DeMeritt moved the City Council add language that any discussion on connecting average heights with setbacks be tagged for discussion by the Planning Commission. The motion was seconded by Mayor Peters and carried unanimously. (5-0) The City Council completed their review up to the Industrial Zones (General and Coastal Dependent), and will continue discussion on Mixed Use at the March 14, 2005 meeting. C. UNFINISHED BUSINESS — NONE. D. NEW BUSINESS ® D-1 REVIEW OF MID -YEAR BUDGET REPORT FOR FISCAL YEAR 2004-2005; (FINANCE) Finance Director Jim Koser stated the purpose of the mid -year budget report is to report on actual spending and revenue receipts in relation to the adopted budget and to consider any subsequent changes to the budget based upon staff requests and/or City Council actions taken since the budget was adopted. Last year at this time, the City Council gave direction to staff on their priorities, including the desire to avoid reductions in workforce. Staff presented a budget that was balanced in part by the one-time transfer of excess Insurance Fund reserves and through drawing down the General Fund's own reserves. Beginning two years ago, the City began to cutback in the supplies and services areas of the budget until they were to the minimum levels necessary to support operations. Also, beginning two years ago, the City Council imposed a hiring review process for any vacancies that occurred. This past year, the City Council elevated the process to a freeze on all non-public safety vacancies. Mr. Koser recommended the City Council provide direction on the proposed budget adjustments; the transfer of employee funding for the Utility Billing Clerk, the City Engineer and the Capital Projects Manager; direction on the current year's budget; and, direction to prepare the appropriate Council Resolution of Supplemental Appropriation to reflect their decisions. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 28, 2005 Councilmember Winholtz stated Council should make cuts and proposed to cut Council salaries back to the original salary. She said she supports saving on overtime pay by secretaries and/or office assistants not attending meetings and preparing action minutes. Councilmember Winholtz stated she does not support moving all three employees to the Water Fund. Councilmember DeMeritt stated she does not believe that saving a little here and there is going to resolve the deficit the City is facing. She said she favors salary reductions to save layoffs; and she would like the City Manager to direct the Community Promotions Committee to adjust their budget by 20%. Councilmember DeMeritt stated a policy is needed to direct staff that sales of real estate should go to the reserves. She said she supports the continuation of the hiring freeze in all departments; continue to cut expenses 20% across the board; employees to take compensation time instead of over time pay; and do away with contingency funds. Councilmember Peirce stated he does not believe that the Community Promotions Committee budget should be cut drastically. He said he supports the consideration of action minutes, and remove the unfunded positions from the budget. Councilmember ® Peirce stated citizens should be encouraged to buy locally. Il Mayor Peters stated Community Promotions Committee funds have already been designated. She said there is no way you can expect an employee to work overtime without being paid or receiving compensation time. Mayor Peters stated contingency funds could be cut but not removed because they are used for the good of the community. She said she supports action minutes, and removal of unfunded positions; however, she does not agree with Council giving up their salaries. Mayor Peters recommended the consideration of working shorter days. Councilmember Baxley stated one problem is there is a planned deficit placed by a previous City Council and this Council has to figure out how to get through the next four months. He said Council should accept the proposed changes in the staff report, including the three salaries proposed to move to the Water Fund. Councilmember Baxley stated a previous Council discussed going to action minutes and it was not approved. He said removing the four vacancies is fine for now; however, one or two of those positions may need to be reinstated in a year or two because that position may be needed in the City. 6 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — FEBRUARY 28, 2005 MOTION: Councilmember Baxley moved the City Council: 1) approve the changes to the adopted budget as proposed by staff; 2) approve moving specified allocated positions from the General Fund to the Water Fund, effective Januaryl, 2005; 3) eliminate four current vacant allocated positions from the budget; and 4) direct staff to return with a resolution formally authorizing these modifications to the budget. The motion was seconded by Councilmember Peirce and carved unanimously. (5-0) Mayor Peters called for a break at 10:05 p.m.; the meeting resumed at 10:15 p.m. D-2 RESOLUTION NO. 06-05 APPROVING A SUBLEASE FOR A PORTION OF LEASE SITE 86/86W, LOCATED AT 801 EMBARCADERO, BETWEEN THE FISHBOWL RESTAURANT LLC AND RON BOONE; (HARBOR) Harbor Director Rick Algert stated the manager of the Fishbowl LLC has requested approval of a sublease agreement for a portion of Lease Site 86/86W, located at 801 Embarcadero. City policy states that approval of an assignment or sublease cannot be unreasonably withheld. As all terms of the master lease are in compliance, Mr. Algert ® recommended the City Council approve the sublease for a portion of Lease Site 86/86W with the Fishbowl LLC and Ron Boone, doing business as Southern Port Traders. MOTION: Councilmember Winholtz moved the City Council adopt Resolution No. 06-05 approving a sublease agreement for a portion of Lease Site 86/86W, located at 801 Embarcadero, between the Fishbowl Restaurant LLC and Ron Boone. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) D-3 REVIEW OF ABANDONED BOAT ABATEMENT PROGRAM; (COUNCIL) This item was continued to the March 14, 2005 City Council meeting. D-4 REVIEW OF ABANDONED VEHICLE ABATEMENT PROGRAM; (COUNCIL) This item was continued to the March 14, 2005 City Council meeting. D-5 CONSIDERATION OF CREATING A CITY PUBLIC ART POLICY; (COUNCIL) This item was continued to the March 14, 2005 City Council meeting. 1 �J 10 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 28, 2005 D-6 RESCHEDULING BROWN ACT AND POLICIES AND PROCEDURES WORKSHOP; (CITY ATTORNEY) City Attorney Robert Schultz stated the City Council previously scheduled the Brown Act and Policies and Procedures Workshop for March 2, 2005. The City Council tentatively scheduled the Brown Act and Policies and Procedures Workshop for Monday, March 21, 2005 prior to the Planning Commission meeting starting at 5:00 p.m. ADJOURNMENT The meeting adjourned at 10:57 p.m. Recorded by: / 1 M &A►/ ® Bridgett Bauer City Clerk 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 — FEBRUARY 14, 2005 CLOSED SESSION — FEBRUARY 14, 2005 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA CS-1 GOVERNMENT CODE SECTION 54956.9; 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. • Parties: City of Morro Bay and Martony/Pekarek Issue: Breach of Lease Agreement for Lease Site 35W-36W. 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. • Property: One acre land at the corner of Jacinto Street and SRI Negotiating Parties: City and Keyoto-Morro Bay, Inc. Negotiations: Sale terms IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. CA ® PUBLIC SESSION — FEBRUARY 14, 2005 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 MINUTES FOR THE JANUARY 10, 2005 AND JANUARY 24, 2005 REGULAR MEETINGS; AND MINUTES FOR THE JANUARY 19, 2005, JANUARY 20, 2005, JANUARY 25, 2005 AND JANUARY 31, 2005 SPECIAL MEETINGS; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 AUTHORIZATION FOR ATTENDANCE AT THE C-MANC ANNUAL MEETING IN WASHINGTON D.C.; (HARBOR) RECOMMENDATION: Approve authorization for a two -person delegation to attend CMANC's Washington Week meetings that will be held March 7-10, 2005. A-3 STATUS REPORT ON CDBG FUNDING ACTIVITIES — POTENTIAL FOR FIRE STATION UPGRADE; (PUBLIC SERVICES) RECOMMENDATION: Receive report for information. A-4 PROCLAMATION DECLARING DESIGNATING TUESDAY, FEBRUARY 22, 2005, AS "SPAY DAY USA'; (ADMINISTRATION) ® RECOMMENDATION: Adopt Proclamation. B. PUBLIC HEARINGS. REPORTS & APPEARANCES C B-1 COST OF SERVICES STUDY FOR THE RECREATION AND PARKS DEPARTMENT AND RECOMMENDED MASTER FEE SCHEDULE ADJUSTMENTS FOR FACILITY USE FEES; (RECREATION & PARKS) RECOMMENDATION: Review and accept the Cost of Services Study, specifically the Detail of Recreation Services section that indicates the cost recovery goal for recreation services; and, approve the amended Facility Rental Fee section of the Master Fee Schedule. B-2 PUBLIC HEARING ON PROPOSED UPDATE TO THE ZONING ORDINANCE, ZONING MAP AND ACCOMPANYING NEGATIVE DECLARATION; (PUBLIC SERVICES) RECOMMENDATION: Receive public comment; identify suggested changes; and, continue public hearing to the February 28, 2005 City Council meeting. t ® C. UNFINISHED BUSINESS C-1 UPDATE ON EXPANSION OF TRANSIENT OCCUPANCY TAX TO APPLY TO STATE PARKS CAMPGROUNDS; (ADMINISTRATION) RECOMMENDATION: Take no further action in pursuit of this revenue concept at this time. D. NEW BUSINESS D-1 ADOPTION OF AN INTERIM ORDINANCE NO. 505 PROHIBITING THE ISSUANCE OF PERMITS FOR SECONDARY DWELLING UNITS; (CITY ATTORNEY) RECOMMENDATION: Adopt Interim Ordinance No. 505. D-2 RECONSIDERATION OF ROCK SCULPTURE PLACEMENT PROJECT; (PUBLIC SERVICES) RECOMMENDATION: Discuss and direct staff accordingly. D-3 REQUEST TO AGENDIZE DISCUSSION ON GARBAGE BILL DEBT COLLECTION ISSUES; (CITY COUNCIL) ® RECOMMENDATION: Receive report for information. 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 — FEBRUARY 14.2005 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Peters called the meeting to order at 5:10 p.m. PRESENT: Janice Peters Mayor STAFF CLOSED SESSION Thad Baxley Melody DeMeritt William Peirce Betty Winholtz Robert Hendrix Robert Schultz Councilmember Councilmember Councilmember Councilmember City Manager City Attorney MOTION: Councilmember Peirce moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Baxley and unanimously carried. (5-0) Mayor Peters read the Closed Session Statement. ® CS-1 GOVERNMENT CODE SECTION 54956.9; 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. • Parties: City of Morro Bay and Martony/Pekarek Issue: Breach of Lease Agreement for Lease Site 35W-36W. 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. Property: One acre land at the comer of Jacinto Street and SR Negotiating Parties: City and Keyoto-Morro Bay, Inc. Negotiations: Sale terms The meeting adjourned to Closed Session at 5:10 p.m. and returned to regular session at 5:55 p.m. MOTION: Councilmember DeMeritt moved the meeting be adjourned. The motion v was seconded by Councilmember Baxley and unanimously carried. (5-0) 0 The meeting adjourned at 5:55 p.m. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 14, 2005 VETERANS MEMORIAL HALL - 6:00 P.M. E Mayor Peters called the meeting to order at 6:00 p.m PRESENT: Janice Peters Mayor Thad Baxley Councilmember Melody DeMeritt Councilmember William Peirce Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix Robert Schultz Bridgett Bauer Rick Algert Bruce Ambo Bill Boucher Janeen Burlingame John DeRohan Joan Drake Mike Pond Mike Prater Jim Koser Andrea Lueker City Manager City Attorney City Clerk Harbor Director Public Services Director Capital Projects Manager Management Analyst Police Chief Administrative Assistant 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 Dan Glessman reviewed the City's General Fund stating the unrestricted reserves could be gone by the end of the year. He said the City should review the revenue and expense imbalance issues now, and not wait for the next budget. Mr. Glessman suggested the City Council direct the professionals employed by the City to devise a plan to reduce expenses. Hank Roth announced the Neighborhood Watch informational meeting will be held on February 23rd, and the topic will be on elder abuse. He also noted the citizens academy will start in March. 2 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 14, 2005 Lynn Shonauer, President of the Estero Bay Women's Club, presented artwork from schools throughout the County, and stated an award ceremony would be held on February 15'. Bill Martony addressed a car accident that occurred at a neighbor's house on Main Street. He stated this is a dangerous comer where several accidents have taken place, and requested the City consider a traffic speed barrier at this location. Michael Durick addressed public safety within the Fire Department, and said it should be clear that this City could ill -afford a second fire station in light of the present budget situation. Mr. Durick recommended Council place on hold the repairs to the current station's equipment bay, and instead exchange the property where the station sits and purchase a more centrally located fie station. Keith Taylor stated the Friends of the Fire Department will soon be filing for a non-profit license in order to hold educational and fund raising events to support our Fire Department. ® Betty Forsythe, Friends of the Library, reviewed upcoming projects that will be taking place at the library. Ann Reeves addressed the car accident on Main Street last week, and said something should be done to make this intersection safer. Barbara Brebes addressed the danger of car accidents by her house on Main Street, and requested the City place a traffic -calming device to slow cars down. Jack McCurdy stated CAPE's position is that the outfall lease between the City and Duke Energy should not be granted because it is grossly counterproductive to the City's best interest in promoting tourism and protecting the health of the estuary. He said the overriding issue is whether the City can legally accept lease terms proposed by Duke Energy that are far below market value which could violate terms of its agreement with the State Lands Commission to administer the tidelands lease and open the City to litigation. Mr. McCurdy stated Duke Energy has misled the public; claiming that a new plant would be smaller, cleaner and better when in fact it will be larger, dirtier and worse for marine life. Ll ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 14, 2005 Wanda Durick stated the City has been spending more money than taking in for the last two years. She recommended Council continue a freeze on hiring and place an immediate freeze on all discretionary spending; and, convene an emergency meeting to come up with a plan to fix our dire financial situation; and, post the budget on the City's web -site. Susan Heineman reviewed the budget stating in order to balance the 2004-2005 fiscal year budget, the City borrowed funds from the insurance fund where they were being reserved for future increases and scheduled retirement benefits such as PERS. She noted the City also borrowed funds from the reserve fund for the purchase of the Brannigan building. Ms. Heineman stated this money is important in maintaining a cushion for emergencies such as floods or earthquake. She said the City is spending more than it is taking in at this time, and would like to know how we are going to maintain the champagne dream of a new civic center, two staffed fire houses, and quality services for the citizens on a beer budget. Phil Hill addressed significant changes in the estuary due to current hunting regulations and said this issue should be reassessed for its negative impacts on public safety and well ® being of the animals. Mandy Davis addressed hunting in the back bay and read excerpts from a long-time local hunter in the local newspaper who is opposed to hunting in the bay under the current circumstances. Roy Vinio addressed Item D-1 (Adoption of an Interim Ordinance No. 505 Prohibiting the Issuance of Permits for Secondary Dwelling Units) stating he has spent in excess of $20,000 for a granny unit and is outraged that the City wants to place a moratorium on granny units. Stan House addressed a car accident by his daughter's house on Main Street between Olive and Piney Way, and noted traffic is going too fast on this portion of Main Street. He also addressed the budget crisis stating the City needs to stop spending money that is not coming in. Joey Racano stated the time has come to decide whether or not to resume the industrial exploitation of our coastal resources by renewing the Duke Power Plant's outfall lease. He also said it is time to change from burdening this slice of paradise with heavy industry that benefits but a few, to an eco-tourism based economy that will benefit everyone. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 14, 2005 James Maul addressed Item D-2 (Reconsideration of Rock Sculpture Placement Project) and asked why Council is considering the withdrawal of the sculpture since it has already been approved. He said this is an opportunity for the City to have a nice piece of natural art at the City entrance for little money. Dave Peter also expressed his support for the placement of the sculpture at the entrance of the City. He said fundraising is taking place to assist in the funding of this sculpture. Bernadette Pekarek stated the City should support Dr. Korishelli's proposed sculpture for the entrance of the City. Mayor Peters closed the hearing for public comment. Mayor Peters called for a break at 7:10 p.m.; the meeting resumed at 7:22 p.m. MOTION: Councilmember Winholtz moved the City Council agendize an urgency agenda item to stop all discretionary spending until the mid -year budget review. The motion was seconded by Councilmember DeMeritt and failed with Councilmember Baxley, Councilmember Peirce and Mayor Peters voting no. (3-2) ® DECLARATION OF FUTURE AGENDA ITEMS Councilmember Winholtz requested to agendize the discussion of creating a City Public Art Policy; Councilmember DeMeritt concurred. Councilmember . Winholtz also requested to agendize discussion on Council's position on the delisting of the snowy plover; Councilmember DeMeritt concurred. Mayor Peters requested to agendize the discussion of abandoned vehicle and boat removal. Mayor Peters also requested to agendize the discussion of each Councilmember taking a section of the budget for review. 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 JANUARY 10, 2005 AND JANUARY 24, 2005 REGULAR MEETINGS; AND MINUTES FOR THE JANUARY 19, 2005, JANUARY 20, 2005, JANUARY 25, 2005 AND JANUARY 31, 2005 SPECIAL MEETINGS; (ADMINISTRATION) ® RECOMMENDATION: Approve as submitted. 5 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —FEBRUARY 14, 2005 A-2 AUTHORIZATION FOR ATTENDANCE AT THE C-MANC ANNUAL MEETING IN WASHINGTON D.C.; (HARBOR) RECOMMENDATION: Approve authorization for a two -person delegation to attend CMANC's Washington Week meetings that will be held March 7-10, 2005. A-3 STATUS REPORT ON CDBG FUNDING ACTIVITIES — POTENTIAL FOR FIRE STATION UPGRADE; (PUBLIC SERVICES) RECOMMENDATION: Receive report for information. A-4 PROCLAMATION DECLARING DESIGNATING TUESDAY, FEBRUARY 22, 2005, AS "SPAY DAY USA'; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. ® Councilmember Winholtz pulled Items A-1 and A-3 from the Consent Calendar; Councilmember DeMeritt pulled Item A-2; and, Mayor Peters pulled Item A-4. 1 A-1 MINUTES FOR THE JANUARY 10, 2005 AND JANUARY 24, 2005 REGULAR MEETINGS; AND MINUTES FOR THE JANUARY 19, 2005, JANUARY 20, 2005, JANUARY 25, 2005 AND JANUARY 31, 2005 SPECIAL MEETINGS; (ADMINISTRATION) Councilmember Winholtz noted amendments to the minutes of the January 20 and 25, 2005 minutes, which are before Council for review. Council concurred with the amendments. MOTION: Councilmember DeMeritt moved the City Council approve Item A-1 of the Consent Calendar as amended. 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 D.C.; (HARBOR) Councilmember DeMeritt addressed this item for clarification that the expenses for this trip will be paid by the Joint Cable Fisheries Liaison Committee. 6l ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —FEBRUARY 14, 2005 MOTION: Councilmember Winholtz moved the City Council approve Item A-2 of the Consent Calendar. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) A-3 STATUS REPORT ON CDBG FUNDING ACTIVITIES — POTENTIAL FOR FIRE STATION UPGRADE; (PUBLIC SERVICES) Councilmember Winholtz asked for clarification of the funding for the fire station upgrade. Fire Chief Pond stated these CDBG funds would be helpful in opening the second fire station in north Morro Bay, and repair the existing station. He noted in researching property, there is no single property in the City that would adequately provide service to the City. MOTION: Councilmember Peirce moved the City Council approve Item A-3 of the Consent Calendar. The motion was seconded by Councilmember Baxley and carried unanimously. (5-0) A-4 PROCLAMATION DECLARING DESIGNATING TUESDAY, FEBRUARY ® 22, 2005, AS "SPAY DAY USA"; (ADMINISTRATION) Mayor Peters addressed this proclamation for public information. MOTION: Mayor Peters moved the City Council approve Item A-4 of the Consent Calendar. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 COST OF SERVICES STUDY FOR THE RECREATION AND PARKS DEPARTMENT AND RECOMMENDED MASTER FEE SCHEDULE ADJUSTMENTS FOR FACILITY USE FEES; (RECREATION & PARKS) Recreation & Parks Director Andrea Lueker stated in 1980, the City Council passed a policy that all recreation programs and services were to strive for self-sufficiency. Under that pricing policy, fees were determined by taking the direct cost of the program or service and adding a thirty-five percent multiplier to the direct costs to cover the indirect costs. In 1991, the Recreation & Parks Commission reviewed the past pricing policy and determined the formula should be reevaluated to find a potentially more accurate method of determining fees for programs and services. The 3-step method of evaluation involved determining the direct costs for staff, equipment, rentals and facilities/parks. Secondly, ® the Commission divided the programs and services into one of five cost recovery r MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 14, 2005 categories. The third step was to determine a cost recovery ratio/percentage of subsidy for each individual cost recovery category. In order to establish actual costs of each program or service, the Recreation & Parks Department conducted a time allocation study and from that derived a cost allocation. Every couple of years since the initial study, the department has updated the cost allocation numbers. Ms. Lueker recommended the City Council review and accepts the Cost of Services Study, specifically the Detail of Recreation Services section that indicates the cost recovery goal for recreation services. Ms. Lueker also recommended the City Council approve the amended Facility Rental Fee section of the Master Fee Schedule. Mayor Peters opened the hearing for public comment. Eric Johnson, Revenue & Cost Specialists, LLC, reviewed the Cost of Services Study. Bill Martony stated there is a land lease site at the south boat launch ramp that could be used as income property and a revenue builder for the City. Mayor Peters closed the public comment hearing. ® Councilmember Peirce stated he would support fee increases for facility uses by non- resident and non -charitable profit groups. Mayor Peters stated she agrees facility use fees should be increased for the non-resident, non -charitable and non-profit groups. Councilmember Winholtz addressed fees on teen events vs. costs for the teen center. Councilmember Baxley stated he also supports an increase in facility use fees; however, the City will not recover all of its costs through this program. Councilmember DeMeritt stated she supports healthier increases for facility uses by non- resident and non -charitable profit groups. MOTION: Councilmember Peirce moved the City Council accept the Cost of Services Study, and approve the changes to the Master Fee Schedule as proposed by staff and requested staff to return with an implementing resolution that addresses changes in the categories outlined by Council. The motion was seconded by Councilmember Baxley and carried unanimously. (5-0) 0 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 14, 2005 B-2 PUBLIC HEARING ON PROPOSED UPDATE TO THE ZONING ORDINANCE, ZONING MAP AND ACCOMPANYING NEGATIVE DECLARATION; (PUBLIC SERVICES) Associate Planner Mike Prater stated a public hearing on the update to the Zoning Ordinance, Zoning Map and Environmental Document was held on January 25, 2005, and was continued to the Council meetings on February 14ei and 28's. At the hearing, a presentation was given on the objectives of the update that include simplifying the ordinance, providing illustrative graphics, eliminating excessive cross-references, revising the Zoning Map with more readable colors and landform references, and implementing the goals and policies of the General Plan and Local Coastal Plan. Mr. Prater recommended the City Council open the public hearing; identify suggested changes; and, continue the public hearing to the February 28 h Council meeting. Mayor Peters opened the hearing for public comment. Lynda Merrill stated the consultant changed the zoning designations for residential areas, which is confusing to the layperson that is trying to understand the zoning ordinance. is She expressed concern with the proposed maximum building height changes from 25 to 30 feet plus increased density, which will allow for 3-story buildings. Ms. Merrill stated housing should be compatible with the surrounding neighborhoods. Alex Beebe stated the proposed changes appear they are for larger homes. He said Morro Bay is about its uniqueness and charm and not oppressively dense buildings. Bob TefR reviewed inconsistencies between densities specified in Section 17.06 and minimum lot sizes. Dorothy Cutter submitted her comments in writing and requested they become part of the official record. Bill Martony stated the big concern is the change in R-1 zoning and requested this designation remain the same. Nancy Kerr stated south Morro Bay has charm, openness and a small town feel mostly because the houses are varied in size and architectural style, and there is also a lot of vegetation attracting birds and butterflies. She stated the proposed zoning changes would destroy this unique area by allowing the building of big box houses. Mayor Peters closed the public comment hearing. C 0 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — FEBRUARY 14, 2005 The City Council reviewed Chapter 17.07 (Commercial District), Chapter 17.08 (Industrial District), Chapter 17.09 (Public Facilities District), Chapter 17.10 (Open Space District, Chapter 17.11 (Agricultural District), and Chapter 17.15 (Planned Development Overlay Zone). The City Council finished the review of the Residential Districts, with the exception of Second Dwelling Unit provisions, which were referred to the Planning Commission. Changes to the Residential Development Standards for the RS-B District included changing the existing lot size to accommodate the Cloisters Subdivision, and correcting the side yard setback to 5 feet; and in the RM District, the height limit was lowered to 25 feet and the rear set back was changed for consistency with the current procedure. Council suggested that any discussion on connecting average heights with setbacks be tagged for discussion by the Planning Commission. The balance of the review of the document was continued to the February 28, 2005 City Council meeting. C. UNFINISHED BUSINESS C-1 UPDATE ON EXPANSION OF TRANSIENT OCCUPANCY TAX TO APPLY ® TO STATE PARKS CAMPGROUNDS; (ADMINISTRATION) City Manager Robert Hendrix stated during the regular City Council meeting of October 11, 2004, the City Council requested that staff continue discussions with a potential legislative representative for the purpose of gaining an understanding of the legal and political barriers involved in obtaining legislation that would authorize the City of Morro Bay to charge Transient Occupancy Tax in the State Parks located within the City. Staff followed up on this issue, working with Amy Brown of the firm of Kahn, Scares & Conway, LLP. Ms. Brown was able to obtain informally a legal analysis of this issue, from State Legislative Counsel. In brief, Legislative Counsel is of the opinion that this legislative change involves the imposition of a new tax. As such, passage of the law would require two-thirds vote of the legislature. The two-thirds requirement makes the effort much more difficult. The costs of the effort could ultimately exceed the revenue gained. This is assuming the City continued a relationship with the legislative advocate on an on -going basis. In addition, it is not at all clear that the City could succeed in obtaining passage of the bill. Because of these difficulties and the potential expense involved, Mr. Hendrix recommended that the City Council take no further action in pursuit of this revenue concept at this time. MOTION: Councilmember Winholtz moved the City Council accept the report on expansion of transient occupancy tax to apply to State Parks campgrounds. The motion was seconded by Councilmember Peirce and carried ® unanimously. (5-0) 10 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 14, 2005 D. NEW BUSINESS D-1 ADOPTION OF AN INTERIM ORDINANCE NO. 505 PROHIBITING THE ISSUANCE OF PERMITS FOR SECONDARY DWELLING UNITS; (CITY ATTORNEY) City Attorney Robert Schultz stated on January 31, 2005, an urgency measure was determined necessary by the City Council based on the immediate threat to the public health, safety or welfare for the residents of Morro Bay if applications for secondary dwelling units were to continue to be processed. Both statutory and case authority support the legislative body's right to consider and enact a moratorium on secondary dwelling units while the City studies proposed general plan or zoning changes that might impact and effect the development standards for secondary dwelling units. If enacted, such an Interim Urgency Moratorium Ordinance would effectively prohibit the grant of any project entitlements, including building permits for secondary dwelling units. Such an ordinance must be adopted by a 4/5 vote of the Council and is effective immediately upon adoption. It would be valid for no more than 45 days from the date of enactment. It ® may be extended for an additional period of 10 months and 15 days upon notice and public hearing. A moratorium ordinance cannot be extended more than twice and cannot exceed a total of two years. Additionally, ten days prior to the expiration of this Interim Urgency Ordinance, the Council must issue a report describing the measures taken to alleviate the conditions that led to the adoption of the ordinance. Mr. Schultz recommended the City Council adopt Interim Ordinance No. 505. Councilmember Peirce stated this ordinance should not affect those who have already submitted plans and paid fees. He said the moratorium should not be longer than 45 days, and within that time period staff should come back to Council with some options. Councilmember DeMeritt stated perhaps instead of looking at the number of days in the process, the City should consider the steps in the process. She said the moratorium should be done within 45 days. Mayor Peters expressed concern with people who have already expended time and money into plans, and should be given a few days to submit their plans. Councilmember Winholtz disagreed stating if this does not take place immediately it will give people time to get their plans submitted. Councilmember Baxley stated permits should be granted to those who have submitted ® plans by today. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 14. 2005 MOTION: Councilmember Winholtz moved the City Council adopt Urgency Ordinance No. 505 prohibiting the issuance of land use development entitlements or land use permits for secondary dwelling units pending completion of studies and preparation of an update to the City's Zoning Ordinance Code. The motion was seconded by Councilmember DeMeritt and carved unanimously. (5-0) Mayor Peters called for a break at 9:04 p.m.; the meeting resumed at 9:14 p.m. D-2 RECONSIDERATION OF ROCK SCULPTURE PLACEMENT PROJECT; (PUBLIC SERVICES) Capital Projects Manager Bill Boucher stated at the July 24,•2004 meeting, the City Council adopted a motion accepting an offer by local artist Botso Koresheli for a completed rock sculpture placed at the community gateway intersection of Morro Bay Boulevard and Quintana Road. In the intervening months, the artist and his students have been proceeding along and obtaining donations and making arrangements with the quag ® in the Sierra Nevada foothills to prepare and deliver the rock to the site. On February 4 , the artists submitted the final engineered plan, soils report and latest photo of the rock from the quarry and informed us that the foundation was going to be installed in short order. The overall size of the rock is stated as somewhat less than 15 feet tall and 10-12 wide at its widest point. This size is significantly larger than that indicated on the original sketch prepared by the artist and presented to the Council but consistent with the height referenced in the proponent's document within the sight distance analysis section. It appears the actual size of the work is appreciably larger than many people had envisioned and that reconsideration of the matter is warranted. The size of the work would not restrict intersection sight distance to an unsafe degree. Whatever the size, it will be held back far enough from the intersection so as to allow for adequate safe stopping distance pursuant to our normal sight distance criteria. Mr. Boucher recommended the City Council consider this matter, and direct staff accordingly. Consensus of Council was to approve the sculpture with the condition that the project proponent will assist in maintenance and graffiti treatment. MOTION: Mayor Peters moved the City Council approve the rock sculpture with the agreement that the support group for this artwork will provide maintenance costs of maintaining the pumping systems and graffiti removal. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) 12 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 14, 2005 D-3 REQUEST TO AGENDIZE DISCUSSION ON GARBAGE BILL DEBT COLLECTION ISSUES; (CITY COUNCIL) City Manager Robert Hendrix stated Morro Bay Garbage Service (MBGS) General Manager, Tom Martin, brought to light an issue regarding bad debt expense as the cost for bad debt expense has risen dramatically over the past several years. In 2004, MBGS wrote off approximately $7,500 in previously written off accounts, for a net write off of $11,000. At the end of 2004, MBGS has a balance of approximately $24,000 in accounts that are over 90 days past due. While there is a collections person at MBGS who pursues the non -payers through phone calls, small claims court and a credit collection agency, these actions are time consuming and not always successful. Mr. Martin indicated cities like San Luis Obispo, Cayucos, Los Osos and Oceano have adopted a tax lien ordinance that has virtually eliminated bad debt expense. Mr. Hendrix recommended the City Council provide direction to staff with regard to policy pertaining to the garbage bill debt collection issue raised in the recent Base Year Rate Adjustment Application from MBGS. MOTION: Councilmember Peirce moved the City Council forward the consideration of the garbage bill debt collection issue to the Public Works Advisory ® Board and return with recommendations to the City Council. The motion was seconded by Councilmember Baxley and carried unanimously. (5-0) ADJOURNMENT The meeting adjourned at 11:00 p.m. Recorded by: Bridgett Bauer City Clerk 11 13 ® To members of the City Council These remarks are in reference to the proposed zoning ordinance and your meeting of Februaary 14th. I live in a neighborhood which is currently zoned R 1. The new ordinance will change this designation to units per acre. Since Morro Bay is make up of small lots and not acre lots, this change is very confusing. I would like the zoning to remain R1-single family. There are also changes to the setbacks and the lot coverage. This will have a very negative impact on the community. Imagine building your dream house and finding a new house next to you where you are looking at a solid wall or into the window next door. There has been a tendency for developers to build houses right to the limit and then ask for variances. We will soon have a city full of boxes with dark canyons between houses. WE DO NOT WANT THIS! The height limititation is currently 25' and most builders are building to the max. There should be a different way to figure the height which would encourage more interesting structures and not impact the neighboring views 100%. San Luis uses a system that figures height in relation to size. We could do the same. Then there is the PD overlay. The original intent of PD was to protect our most sensitive areas. Instead, it has been used to do just the opposite. PD is now an excuse to allow many variances which degrade the PD zone. PD should be done away with so it can no is longer be abused. Although this may not be pertinent for the upcoming meeting, I would like to see the bluff development standards stay the same. Changing them will only encouage greater development on our bluffs with no benefit to the city or the community. Please have very strong languge in the zoning ordinance about variances. We should do everything to discourage builders from designing structures that need a variance. These requests cost the city time and money for the planning department. If builders can not fit their structures on our small lots, there are other communities in this county that have larger lots and perhaps they should build there. Lastly, Morro Bay is a small community and we value the bit of open space we have around our houses and our views. Lets try and keep it that way. Respectfully, Dorothy Cutter 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. SPECIAL MEETING — JANUARY 31, 2005 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 ® SWEARING IN OF NEW PLANNING COMMISSION 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. JOINT MEETING WITH THE PLANNING COMMISSION THE CITY COUNCIL AND PLANNING COMMISSION WILL DISCUSS PROPOSED POLICIES, PROGRAMS, GOALS AND OBJECTIVES, BUDGETING, FUTURE PLANNING, OR ANY OTHER PLANNING MATTER REQUIRING JOINT DELIBERATION. 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. 11 n E 11 MINUTES — MORRO BAY CITY COUNCIL SPECIAL MEETING — JANUARY 31.2005 VETERANS MEMORIAL HALL — 6:00 P.M. Mayor Peters called the meeting to order at 6:00 p.m. CITY COUNCIL: PLANNING COMMISSION STAFF: Robert Hendrix Robert Schultz Bruce Ambo Bridgett Bauer Greig Cummings Gary Kaiser Mike Prater Lynn Casassa Janice Peters Mayor Betty Winholtz Councilmember William Peirce Councilmember Thad Baxley Councilmember Melody DeMerritt Councilmember Nancy Johnson, Sarah McCandliss, Bernie Melvin, Robert Tefft, Bill Woodson City Manager City Attorney Public Services Director City Clerk Planning Manager Senior Planner Associate Planner Office Assistant IV ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE SWEARING IN OF NEW PLANNING COMMISSION The new Planning Commissioners were swom in by City Clerk Bridgett Bauer. PUBLIC COMMENT PERIOD Rick Deschler announced the Friends of the Library booksale on February 5 from 10-3. Frank Devine said this was the best time for City Council to direct the Planning Commission. He said the parking in lieu program was dysfunctional and that the only areas excepted from strict enforcement should be waterfront, blufftop, and beachfront properties. He suggested resident -occupied projects be considered on a case -by -case basis. Roy Cline said granny units shouldn't be allowed in north Morro Bay due to lack of parking. MINUTES — MORRO BAY CITY COUNCIL SPECIAL MEETING — JANUARY 31, 2005 JOINT MEETING WITH THE PLANNING COMMISSION ® Chuck Reasor said granny units should not be allowed in north Morro Bay due to lack of parking and small lot size. He hopes the Council directs the Planning Commission to require lot size be over 5,000 sq ft minimum to allow granny units. Dan Gannon discussed CC&R's in the Beach Tract. He said Beachcomber and Sandalwood Streets cannot support higher density than that of existing homes. He requested a moratorium be put in place and the permit for the house in question in the Beach Tract be re -addressed in order to maintain harmony and dignity in this single family neighborhood. Robert Lyon also discussed the CC&R's for the Beach Tract. He said the City Council and Planning Commission are acquiescing to the State in allowing second units, but the control should be with the Planning Commission. He mentioned an incidence where a Realtor suggested a variance could be easily obtained. Hilary Saner spoke on behalf of Estero Bay United Methodist Church and the permits it seeks to subdivide a four acre parcel. She is glad for the direction City Council is providing to the Planning Commission as it may help break the logjam in which the permit is stuck. Susan Heinemann said the Planning Commission rules need to be changed. City Council should clear up the Planning Commission rules so the Council can focus on the budget: Wanda Dorrough asked that a freeze on all discretionary spending be put in place including ® all City Council accounts. Ken Vesterfelt said clarification of zoning and regulations will eliminate confusion Rob Schultz said there are no means for the City to enforce CC&R's as they are private agreements to which the City is not a party, including those existing prior to the City's incorporation. He said a permit cannot be revoked once issued. JOINT MEETING WITH THE PLANNING COMMISSION Mayor Peters suggested a mind -map approach to illustrate Planning Commission priorities. During discussion, the following prioritized outline was created and recorded as drawings by Mike Prater and Gary Kaiser. Copies of the six drawing are attached hereto and incorporated herein. The following outlines the discussion results. I. SECOND UNITS 1. DEVELOPMENT STANDARDS a. Location b. Parking c. Separation/Per Cent Main Residence d. Lot Size/Building Size e. Density/Infill f. Location/Zoning MINUTES — MORRO BAY CITY COUNCIL SPECIAL. MEETING — JANUARY 31, 2005 JOINT MEETING WITH THE PLANNING COMMISSION ® CUMULATIVE EFFECTS a. Character b. Location C. Infrastructure 3. PARKING a. Location b. Covered C. On -Street d. Tandem 4. AFFORDABLE HOUSING 5A. USE LIMITATIONS a. Deed Restrictions b. Enforcement C. Rental vs. Family d. Detached vs. Attached 5B. STATE LEGISLATION a. Education 6. CONVERSIONS a. Illegal b. Legal II. PARKING ® 1. N LIEU FEES a. Legal b. Need C. Cost d. Per Center Commercial -Residential 2. STANDARDS a. Shared (mixed) b. Tandem c Size 3. PARKING MANAGEMENT PLAN a. Demand Reduction b. Need C. Location i. Pedestrian Access 4. STREET PROFILE a. Driveways b. Bike conflicts 5A. PARKING STRUCTURE a. Location b. Cost 5B. PARKING METERS a. Revenues ® b. Cost 3 MINUTES — MORRO BAY CITY COUNCIL SPECIAL MEETING — JANUARY 31, 2005 JOINT MEETING WITH THE PLATNTNTING COMMISSION ® i. Enforcement C. Location III. DONNTONN 1-A. MIXED -USE a. Density b. Incentives c. Parking d. Per Cent Commercial - Residential C. Uses i. Outdoor Dining and Sales 1-B. RuDAT a. Embarcadero i. Signs ii. Funicular b. Old Towne Character i. Open Space a. Beautification C. Street Scape i. Furniture ii. Trees ® iv. Signs iv. Underground Utilities V. Design Guidelines a. Setbacks b. Height 2. ECONOMIC VITALITY a. Incentives 3. CIRCULATION a. Stop Signs b. Alternative Modes 4. PEDESTRIAN AMENITIES a. ADA b. Public Restrooms 5. UNREINFORCED MASO\TRY BUILDh\TGS (URM) IV. DENSITY 1. DEFINITION a. Public Benefit b. Desirability 2. LOCATION a. Zoning i. Lot Size ii. Transition ® b. Commercial -Residential 0 MINUTES — MORRO BAY CITY COUNCIL SPECIAL MEETING — JANUARY 31, 2005 JOINT MEETING WITH THE PLANNING COMMISSION ® 3. AFFORDABLE a. Density Bonus b. Community Housing 4. INFRASTRUCTURE a. Traffic/Circulation b. Cumulative C. Parking 5. MIXED -USE 6. AiNTNEXATION City Council approved the above prioritization by consensus. "Protect Morro Bay" was the fifth topic for discussion. City Council wanted the Planning Commission to be aware of what concepts the Council considers in protecting the future of Morro Bay. The list below was recorded by Gary Kaiser during Council's discussion and does not indicate prioritization. Plannine GP/LCP Long -Range Vision 2020 ® Variances Exceptions for Public Benefits Character Design Simplistic Application of Zoning Regulations Neighborhoods Housing Variety Following discussion, City Council agreed by consensus the accept the above list. Mayor Peters asked City Attorney Rob Schultz to describe how a moratorium works. Mr. Schultz summarized the timelines and procedures involved in a moratorium, and City Council agreed by consensus to proceed with a moratorium on granny units for which permits did not already exist. Public Services Director Bruce Ambo suggested a limited number of caucuses (open for public listening but not participating) be held at the Public Services office on Wednesdays to introduce new Planning Commissioners to the routines and procedures the Commission follows. Ambo also suggested and the Commission agreed to further caucuses which would be held prior to each Planning Commission meeting to allow Commissioners to ask technical questions. ADJOURNMENT MINUTES — MORRO BAY CITY COUNCIL SPECIAL MEETING — JANUARY 31, 2005 JOINT MEETING WITH THE PLANNING COMMISSION ® Mayor Peters adjourned the meeting at 9:30 a.m. Recorded by: ec /,G-f-o--v` Lynn ( asassa is S �� lt�v �'UN��1�45� �; �.��►1�CSQ5lC�1S_ .�i4��ii, �'1 . _ ��:�,� f ®- ,� �� ; � J . � ` � �� t- r— Z��i .`` l' II ___�_= ', �,•,� � .a r ® NOTICE OF SPECIAL CLOSED SESSION MEETING 11 11 NOTICE IS HEREBY GIVEN that the Mono Bay City Council will be holding a Special Closed Session Meeting on Tuesday, January 25, 2005 at 8:00 a.m. to be held in the City Hall Conference Room, 595 Harbor Street, Mono Bay, California. The City Council will be discussing: 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: Outfall Lease Negotiating Parties: Duke Energy and the City. Negotiations: Lease Terms and Conditions. DATED: January 12, 2005 .�1 ® MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION — JANUARY 25, 2005 CITY HALL CONFERENCE ROOM - 8:00 A.M. Mayor Peters called the meeting to order at 8:00 a.m. PRESENT: Janice Peters Mayor Thad Baxley Councilmember Melody DeMeritt Councilmember William Peirce 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 Peters 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. Neeotiating 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 8:00 a.m. and returned to regular session at 10:05 am. MOTION: Councilmember Baxley moved the meeting be adjourned. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) The meeting adjourned at 10:05 a.m. C ® 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 24, 2005 CLOSED SESSION — JANUARY 24, 2005 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA CS-1 CONFERENCE WITH LABOR NEGOTIATOR --GOVERNMENT CODE isSECTION 54957.6: Conference with City Manager, the City's Designated Representative, for the purpose of reviewing the City's position regarding the terms and compensation paid to employees and giving instructions to the Designated Representative. CS-2 CONFERENCE WITH LEGAL COUNSEL REGARDING PENDING LITIGATION — GOVERNMENT CODE SECTION 54956.9(a): Lauffer v. City of Morro Bay IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. ® PUBLIC SESSION — JANUARY 24, 2005 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 NVESTMENT REPORT FOR DECEMBER 2004; (FINANCE) RECOMMENDATION: Approve as submitted. A-2 LETTER IN OPPOSITION TO FEDERAL GOVERNMENT PROPOSED POLICY CHANGES ON DESIGNATION OF CRITICAL SALMON HABITAT; (HARBOR) RECOMMENDATION: Authorize staff to _correspond with National Marine Fisheries Service with suggested comments. A-3 AUTHORIZE INSTALLATION OF STOP SIGNS ON ESTERO AND FRESNO AVENUES AT THEIR ANCHOR STREET INTERSECTIONS; (PUBLIC SERVICES) RECOMMENDATION: Adopt resolution No. 05-05 and direct Police Department to notify the City Engineer on all accidents involving restricted intersection sight -distance. A-4 FINDINGS FOR DENIAL OF COMMUNITY HOUSING PROJECT LOCATED AT 585 MORRO AVENUE; (PUBLIC SERVICES) RECOMMENDATION: Adopt the Findings for Denial of Project. ® A-5 RESOLUTION NO. 04-05 APPROVING MORRO BAY GARBAGE SERVICE BASE YEAR RATE ADJUSTMENT APPLICATION REQUESTING AN INCREASE TO SOLID WASTE COLLECTION RATES; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 04-05. B. PUBLIC HEARINGS, REPORTS & APPEARANCES B-I RESOLUTION NO. 03-05 APPROVING THE CDBG PROGRAM INCOME REUSE PLAN; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 03-05. B-2 PUBLIC HEARING ON CITY BUDGET CUTTING PRIORITIES; (FINANCE) RECOMMENDATION: Receive the background information and open Public Hearing to receive citizen input on priorities. ® B-3 PUBLIC HEARING ON PROPOSED UPDATE TO THE ZONING ORDINANCE, ZONING MAP AND ACCOMPANYING NEGATIVE DECLARATION; (PUBLIC SERVICES) RECOMMENDATION: Receive presentation, open Public Hearing, note suggested changes and continue Public Hearing to the February 14 and February 28, 2005 Council meetings. C. UNFINISHED BUSINESS C-1 -ADDITIONAL INFORMATION REGARDING LIBRARY MATCHING DONATION OFFER; (FINANCE) RECOMMENDATION: Consider declining to match the donation offer due to the severe lack of funding forecast for the upcoming year. D. NEW BUSINESS D-1 REQUEST FOR DISCUSSION ON ELIMINATION OF WOOD BURNING FIREPLACES; (CITY COUNCIL) ® RECOMMENDATION: Discuss and direct staff accordingly. D-2 DISCUSSION ON TROLLEY USE FOR ANNUAL MORRO BAY PARADE; (CITY COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. D-3 DISCUSSION ON PRIVATE VIEW PROTECTION ORDINANCE; (CITY COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. D-4 SCHEDULING OF BROWN ACT AND POLICIES AND PROCEDURES WORKSHOP AND COUNCIL RETREAT; (ADMINISTRATION) RECOMMENTDATION: 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. ® MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION — JANUARY 24, 2005 CITY HALL CONFERENCE ROOM - 5:00 P.M. E Ll Mayor Peters called the meeting to order at 5:02 p.m PRESENT: Janice Peters Mayor Thad Baxley Councilmember Melody DeMeritt Councilmember Bill Peirce Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix City Manager Robert Schultz City Attorney Andrea Lueker Recreation & Parks Director Ardith Davis Personnel Officer/Risk Manager 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 Peters read the Closed Session Statement. CS-1 GOVERNi\IENT CODE SECTION 54957.6. CONFERENCE WITH LABOR NEGOTIATOR: Conference with City Manager; the City's Designated Representative, for the purpose of reviewing the City's position regarding the terms and compensation paid to employees and giving instructions to the Designated Representative. CS-2 GOVERiN`NIENT CODE SECTION 54956.9(a); CONFERENCE WITH LEGAL COUNSEL REGARDING PENDING LITIGATION: • Lauffer v. City of Morro Bay MOTION: Councilmember Peirce moved the meeting be adjourned. The motion was seconded by Councilmember Baxley and unanimously carried. (5-0) The meeting adjourned at 5:55 p.m. MINUTES — MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 24, 2005 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Peters called the meeting to order at 6:00 p.m PRESENT: Janice Peters Mayor Thad Baxley Councilmember Melody DeMeritt Councilmember Bill Peirce Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix Robert Schultz Jamie Boucher Rick Algert Bruce Ambo Mike Pond Jim Koser John DeRohan Andrea Lueker Greig Cummings Michael Prater Frank Cunningham Joan Drake Janeen Burlingame 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 Fire Chief Finance Director Police Chief Recreation & Parks Director Planning Manager Associate Planner City Engineer Administrative Technician Management Analyst 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 Herschel Parker requested that Council give no money to the Chamber of Commerce stating they need to draw their support from the local businesses only. Jude Long, Morro Bay Librarian, addressed Item C-1 (Additional Information Regarding Library Matching Donation Offer) and asked for Council's support in matching Mr. Lane's S 10,000 donation. E ® MINUTES — MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 24, 2005 Moe McGhee, Assistant Director of the County Library System; urged Council to set an example for the rest of the cities in the County and match Mr. Lanes' donation of S 10,000. Candace Vittitow promoted a new organization, "Save the Park" whose main purpose is Habitat Protection and Historic Restoration of the Morro Bay State Park. She said there would be a benefit dinner and silent auction on January 30, 2005 at the Morro Bay Grange Hall in support of this effort. Penny Harrington expressed support for Item A-3 (Authorize Installation of Stop Signs on Estero And Fresno Avenues at the Anchor Street Intersections) stating there have been at least three accidents involving overturned cars at her intersection, and requested Council's approval of the installation of the stop signs at these intersections. Norma Whiteman stated she assisted with the Morro Bay Winter Bird Festival and wanted to publicly thank the Morro Bay Recreation & Parks Department staff for their first class service and first-rate facilities during the festival. ® Rosalie Valvo addressed Item A-3 stating she liked the fact that there will be a stop or yield sign every two blocks in the affected areas which should slow cars down. She stated she would also like to encourage the City to look at stop signs in the Ridgeway area. Ms. Valvo thanked the City for their help with the Bird Festival. She also requested support for our local Morro Bay Library. Keith Taylor stated the City's first priority should be getting the two fire stations up and running because it is good insurance for the citizens of Morro Bay. He said the residents of Morro Bay deserve the best response time possible and the citizens should be willing to pay for that service. Jeremiah O'Brien. President of the Morro Bay Commercial Fisherman's Association, requested Council's support in approving Item A-2 (Letter in Opposition to Federal Government Proposed Policy .Changes on Designation of Critical Salmon Habitat), and encouraged the Council to forward the letter to the National Marine Fisheries Service. Barbara Stickel and Tom Roth, members of the Morro Bay Commercial Fisherman's Association, thanked the Council for their consideration of Item A-2. They encouraged Council to move forward and send the letter regarding critical salmon habitat to the National Marine Fisheries Service emphasizing the fact that it does affect Morro Bay and its fishermen. 3 ® MINUTES — MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 24, 2005 Chuck Meissner stated he feels that we got to be a city because of the power plant and we can become an even better city if we get together with Duke and build an even better power plant. He said with the new plant, it's his hope that Diablo Canyon can be shut down and the number of diesel trucks on the roads can be reduced. Curt Beebe stated he lives on the comer of Anchor and Fresno Streets, and wanted to thank City staff for studying the stop sign issue, especially at this intersection. Betty Forsythe spoke in favor of the library and encouraged Council to get to know their library. She also said that the monies for the carpet and painting have already been taken care of by the Friends of the Library. Ms. Forsythe stated she feels that safety should be our number one concern and doesn't feel our firefighters have proper response time. Dave Nelson stated the City will do fine without the power plant. He said he supports the ban on wood burning fireplaces on new houses. Mr. Nelson also stated he supports the City matching the library funds noting he has gone through the City's current budget and feels that the money is there. ® Mandy Davis addressed the issue of hunting in the back bay stating she understands Council's reason to defer on this issue; she has continued to do her research and wanted to let Council know that this item will be brought back and offered her services should anyone have any questions regarding her position. 11 Randy Facay thanked Council and staff for the stop signs being placed at Anchor and Estero Streets. He emphasized that residential speeding is the cause of the problem, and he hopes this will alleviate the problem. Ed Sylvester stated Duke Energy is vital to the City of Morro Bay. He made an analogy that if the City can do without Duke, it can also do without all of the trees that have recently cost the City a lot of money in lawsuits. Joey Racano expressed his views on the Morro Bay Estuary as a gold mine and the City needs to put an end to industrial exploitation. He said the City should drop the lawsuit against the environment and give up the 301 h sewage waiver. Kurt Miller requested the City consider repairing the Rock parking lot, noting the many potholes after a heavy rain. 0 ® MINUTES — MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 24, 2005 Garry Johnson stated he disagrees that the Duke power plant is damaging the estuary. He said he would like the City to look at stop signs at Beach and Main Street as it too is very dangerous. Mr. Johnson noted that Bill Thompson is putting forth legislature to take away social security funds from women because they live too long; he encourages everyone to contact their congressmen and write letters to make sure this doesn't happen. John Barta addressed Item D-3 (Discussion on Private View Protection Ordinance) and noted the boundaries of a home are up and down, not horizontal. He said if homeowners want "horizontal space' then they can attempt to get an easement from the neighboring homeowner for their airspace. Mr. Barta discouraged the City from going down this "slippery slope" as it would lead to nothing but endless complaints and lawsuits from disgruntled neighbors. Tom Myer requested the City focus their priorities on the children of Morro Bay. He said he would like to see a community swimming pool; he would like to see the City clean itself up by putting things like planter boxes downtown: and, he also feels this town needs an Architectural Review Committee. ® Hank Roth stated the Neighborhood Watch Program is sponsoring presentations on public safety on the 41h Wednesday of every month thru October with the first meeting being held on Thursday. January 271h. He said the City's Code Enforcement Officer, Al Sengstock, would be giving the presentation. Mayor Peters closed the hearing for public comment. DECLARATION OF FUTURE AGENDA ITEMS Mayor Peters requested to agendize the discussion on the garbage bill debt collection issue. Mayor Peters requested to agendize discussion on the potential of selling the Cloisters property and what legal issue we may encounter if we tried to do so. Mayor Peters brought up the necessity to replace Councilmember Elliott on the Ad Hoc Committee on the Waste Water Treatment Plant modifications. Councilmember Peirce volunteered to be a member of that committee. 5 ® MINUTES — MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 24, 2005 A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 INVESTMENT REPORT FOR DECEMBER 2004; (FINANCE) RECON MENDATION: Approve as submitted A-2 LETTER IN OPPOSITION TO FEDERAL GOVERNMENT PROPOSED POLICY CHANGES ON DESIGNATION OF CRITICAL SALMON HABITAT: (HARBOR) RECOi\UMENDATION: Authorize staff to correspond with National Dlarine Fisheries Service with suggested comments. A-3 AUTHORIZE INSTALLATION OF STOP SIGNS ON ESTERO AND FRESNO ® AVENUES AT THEIR ANCHOR STREET INTERSECTIONS; (PUBLIC SERVICES) RECONF%1ENDATION: Adopt resolution No. 05-05 and direct Police Department to notify the Cio, Engineer on all accidents involving restricted intersection sight -distance. A-4 FINDINGS FOR DENIAL OF COMMUNITY HOUSING PROJECT LOCATED AT 585 MORRO AVENUE; (PUBLIC SERVICES) RECOi\-EMENDATION: Adopt the Findings for Denial of Project. A-5 RESOLUTION NO. 04-05 APPROVING MORRO BAY GARBAGE SERVICE BASE YEAR RATE ADJUSTMENT APPLICATION REQUESTING AN INCREASE TO SOLID WASTE COLLECTION RATES: (ADMINISTRATION) RECON MENDATION: Adopt Resolution No. 04-05. Councilmember Winholtz pulled Items A-2, A-3 and A-5 from the Consent Calendar. MOTION: Councilmember Peirce moved the City Council approve Items A-1 and A- ® 4 of the Consent Calendar. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) 0 ® MINUTES — MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 24, 2005 A-2 LETTER IN OPPOSITION TO FEDERAL GOVERNMENT PROPOSED POLICY CHANGES ON DESIGNATION OF CRITICAL SALMON HABITAT; (HARBOR) Council was presented with an updated version of this letter and Councilmember Winholtz felt the changes in it strengthened the City's position. Mayor Peters and Councilmember DeMeritt concurred. MOTION: Councilmember Betty Winholtz moved the City Council approve Item A-2 of the Consent Calendar, and forward the letter to the National Marine Fisheries Service with the accepted revisions. The motion was seconded by Councilmember Baxley and carried unanimously. (5-0) A-3 AUTHORIZE INSTALLATION OF STOP SIGNS ON ESTERO AND FRESNO AVENUES AT THEIR ANCHOR STREET INTERSECTIONS; (PUBLIC SERVICES) Councilmember Winholtz asked why the Police Department's notification of traffic accidents in noted areas .was not included as a part of the resolution. Councilmember ® Peirce felt the addition of that into the resolution wasn't a necessity as it is already part of the public record thru the staff report. Mayor Peters used this time to recommend all drivers to slow down in the City's residential areas. 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) A-5 RESOLUTION NO. 04-05 APPROVING MORRO BAY GARBAGE SERVICE BASE YEAR RATE ADJUSTMENT APPLICATION REQUESTING AN INCREASE TO SOLID WASTE COLLECTION RATES: (ADMINISTRATION) Councilmember Winholtz stated she has a philosophical concern over this rate increase. She said she feels that it doesn't reward the low user enough and in fact the rate increase tends to equalize the low user with the regular user. City Manager Robert Hendrix noted this rate increase was a cost of living adjustment that Council obligated itself to when they entered into the original seven-year agreement. Tom Martin from the Garbage Company advised Council that the increases reflect the amounts allowed by contract; in prior years, the increases have been less than the allowed amount and this reflects an attempt to catch up. There was also a correction that needed to be made in Exhibit A to reflect the correct ® gallon waste container from 19 to 20 gallons. 7 ® MINUTES — MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 24, 2005 MOTION: Councilmember Baxley moved the City Council approve Item A-5 of the Consent Calendar. The motion was seconded by Councilmember Peirce and carved unanimously. (5-0) B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 RESOLUTION NO. 03-05 APPROVING THE CDBG PROGRAM INCOME REUSE PLAN; (PUBLIC SERVICES) Public Services Director Bruce Ambo stated in order for the City of Morro Bay to take advantage of the State CDBG loan program, we need to maintain and update our CDBG Program Income Reuse Plan. He said the City has 5330,000 in available loans for affordable housing rehabilitation projects to those qualified residents of Morro Bay to a maximum of $45,000/loan. Flyers and notices have been made available and to date we have many more applicants than monies available. Administrative Technician, Joan Drake added that by approving this plan, as the loans are paid off the City will generate program income which will give us more money to expand the program and be able to ® make additional loans to people down the list. Mayor Peters opened the hearing for public comment: there being no comments, Mayor Peters closed the hearing to the public. MOTION: Councilmember Barley moved the City Council adopt Resolution 03-05 approving the CDBG Program Income Reuse Plan. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) B-2 PUBLIC HEARING ON CITY BUDGET CUTTING PRIORITIES; (FINANCE) Mayor Peters stated this is an informational gathering item only, and that no decisions would be made at this time. She announced there would be a Budget Priority Setting Workshop on Tuesday, March 22, 2005, and the public is encouraged to attend this workshop. Finance Director Jim Koser reported that this process is intended to provide the Council with a mechanism to develop priorities for the next two-year budget cycle. Mayor Peters opened the hearing for public comment. 8 MINUTES — MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 24, 2005 Dan Glesmann stated he studied the budget and then met with Mr. Koser. His research shows that the General Fund pays out $150,000/month more than it takes in and he encouraged the City to reduce their spending now rather than waiting until the new budget cycle. Lynda Merrill made the following recommendations: 1) save money by dropping the lawsuit regarding the snowy plovers; 2) cut employees; 3) reduce department head pay; 4) stop the boardwalk project; 5) don't contract services out; 6) no more travel to conferences/workshops/seminars; 7) reduce monies to Community Promotions and the Visitor Center; 8) repair and rebuild the Fire Department; 9) raise money by selling properties starting with Brannigan's; and 10) adjust fees in the Planning Department. Joan Carter stated the City should sell property, especially the Brannigan property. She also said the City has too many law enforcement officers stating a $3,000,000 budget in the Police Department is too large for a small city like Morro Bay. Ed Sylvester stated he feels that going forward with the boardwalk project is ridiculous. He understands that grants will pay a big portion of the project but says that the City has ® to come up with the first million, which is unnecessary at this time. Joan Solu stated she wants to avoid any tax increases in an effort to raise money. She suggested: 1) asking the City's employees for cost savings measures and give them incentives to do so; 2) cut the budget before cutting services to the citizens; 3) sell surplus properties; and, 4) look into purchasing the property at Radcliffe and Main Streets which she thinks would be a perfect location for a centrally located Fire Department which would cut the need for a second station. CJ Jerry Crawford stated he would like the City to sell surplus property. He also said he wants a strong Police and Fire Department with a second fire station. • Mr. Crawford stated he does not want the City to raise taxes. Ken Vesterfelt stated he hopes we do not choose to cut into our public safety departments. He said he also hopes the City does not cut into the community promotions budget because he feels that those dollars bring in the tourists that we depend upon. David Nelson stated although he is very supportive and appreciative of our Police Department, he also feels that a $3,000,000 is excessive. He said he also feels employees should look at pay cuts across the board. E MINUTES — MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 24, 2005 Bob Tefft stated the City should put together a Citizen's Ad -Hoc Committee to help with and work with the Finance Department to look at the budget for places to make cuts in addition to finding potential revenue sources: Roy Kline stated the City should look at its employees and snake sure the City is getting the most "bang for their buck'. Nancy Johnson stated she appreciates the employees, and feels that the City's involvement with the League of California Cities conferences are important because it is where small cities get known and become candidates for potential grants. She said she also feels that the City should combine its Police and Fire Departments into one Public Safety Department and that those employees can be cross -trained. Ed Biaggini stated he agrees with Mayor Peters that the closure of Morro State Park has had a huge impact on lost local revenues. He said he also feels that if tourism is as important to the City as we say it is, then we can't think of decreasing monies to promotions, and in fact, should be promoting the City now more than ever. Mr. Biaggini stated tourism should be on the top of the City's priority list. ® Garry Johnson stated he would like to see the City get Duke Energy up and running. Mayor Peters closed the hearing to the public. No further discussion or action was taken on this item. B-3 PUBLIC HEARING ON PROPOSED UPDATE TO THE ZONING ORDINANCE. ZONING MAP AND ACCOMPANYING NEGATIVE DECLARATION: (PUBLIC SERVICES) Public Services Director Bruce Ambo introduced the consultant on the project, Michael Dyett. Mr. Dyett provided Council with a power point presentation reflecting the key changes to the City's zoning ordinance as well as the philosophical reasons for making those changes. Mr. Dyett emphasized that they attempted to provide the City with a much more user-friendly document. Mayor Peters opened the hearing for public comment. David Nelson stated it would be helpful if the City could formulate a 50-year plan and be consistent with its implementation. He expressed concern with what these new regulations could do with overlays. Mr. Nelson stated he feels that new projects that have been proposed and/or buildings started are "pushing the envelope" of what his vision of Morro Bay should look like. lul ® MINUTES — MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 24, 2005 Lynda Merrill stated she is aft -aid -e€ the paragraph entitled "Incentives Offered for Creative Design" should be removed from the Zoning Undate. She fears that the Planning Commission could have too much power to grant concessions to developers/builders. Bob Teri stated he feels there hasn't been adequate public comment on this document. He said the number one goal of the General Plan is "a sense of community supported by continuing small town character". Dr. Tefft stated he fears that in the new ordinance, there are no design guidelines for the Old Town District of Morro Bay, which is inconsistent with the General Plan. He also feels the design guidelines for mixed uses aren't clear enough. Chuck Reasor stated his recommendation is to send the document back to the new Planning Commission to get more public input and to go over it ` with a fine tooth comb". He said he is especially concerned with how granny units would be handled in the new document. Mayor Peters closed the public comment hearing. Councilmember DeMeritt stated she would like to send the document back to the Planning Commission for their analysis and have one final document come back for Council's ® review. Mayor Peters stated she is concerned there would be too much time lost if the document were sent back to the Planning Commission. She encouraged citizens, including the new Planning Commission, to review the proposed ordinance and participate in the public hearing process and/or submit questions for Council review. 11 The City Council discussed the proposed document going over it section by section, beginning with Chapter 17.01 and finishing with Chapter 17.07. The balance of the review of the document was continued to the February 14, 2005 City Council meeting. C. UNFINISHED BUSINESS C-1 ADDITIONAL INFORMATION REGARDING LIBRARY MATCHING DONATION OFFER; (FINANCE) Finance Director Jim Koser stated that Mr. Lane was not interested in the City's attempts to offer an in -kind service donation in lieu of the $10,000 donation that he requested. Mr. Lane reiterated his desire to see the City commit budget funds to the library on an annual basis. Due to the difficult financial situation that the City finds itself currently in, Mr. Koser recommends that the City Council decline the matching donation offer at this time. 11 ® MINUTES — MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 24, 2005 Councilmember Winholtz asked Jude Long of the Morro Bay Library, what she could do with this potential $23,000 donation. She answered that actually, since Mr. Lane's generous offer, others have come forward as well and the donation potential has reached 527,000. Unfortunately that money isn't enough to open an additional day; however, it would go a long way to upgrading the physical building, purchase additional materials, help with the operating budget, interior of the building (furnishings, tables, stacks), etc... Councilmember Baxley stated he would vote to decline the offer due to our current budget situation. Councilmember DeMeritt stated in times like these we need to save every dime that we can. She too, with regret, would vote to decline the offer at this time. Councilmember DetMeritt said that due to Mr. Lane's donation, people around the county are donating monies to county libraries and she wants to encourage this. Councilmember Peirce stated he applauds the Friends of the Library for putting up the money that they have. He too, with regret, has to agree that this is not the time to be donating money. ® Mayor Peters agreed with Council, and said she too has to vote to decline the offer. In addition, she said she doesn't like the precedent it might set with citizens donating money with the condition the City will match their donation. She said she does appreciate Mr. Lane's gesture and what it has accomplished locally and countywide with people becoming more aware of the needs of our local libraries. 11 MOTION: Councilmember Baxley moved the City Council, with regret, decline the matching donation that Mr. Lane offered and suggest Mayor Peters send Mr. Lane a letter thanking him for his generosity and explain the City's position on this issue. The motion was seconded by Councilmember Peirce and carried with Councilmember Winholtz voting no. (4-1) D. NEW BUSINESS D-1 REQUEST FOR DISCUSSION ON ELIMINATION OF WOOD BURNING FIREPLACES: (CITY COUNCIL) Mayor Peters brought this item forward due to a request by Robert Croyle, a resident of Morro Bay. She said she would like to see if Council thought this was an item that could be pursued by sending it to the Planning Commission for their investigation/review and recommendations. 12 ® MINUTES — MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 24, 2005 Councilmember Winholtz stated she would support a discussion at the Planning Commission level on this issue. City Manager Robert Hendrix stated the Air Pollution Control District's current rules of regulating wood burning fireplaces currently apply to remodels where fireplaces are involved and in new construction only. He said fireplaces in existence prior to 1994 were grandfathered in. Mr. Hendrix stated the crux of Mr. Croyle's letter requested a retrofit of all existing wood burning fireplaces, which is the one spot in the APCD ordinance that does not mandate an upgrade. Councilmember DeMeritt sympathizes with people who have neighbors with fireplaces like this. She said she also realizes that people often bum the wrong things in their fireplaces creating additional particulate matter. Councilmember DeMeritt stated she wouldn't mind having it discussed further but realizes that regulating this kind of a ban would be difficult. Councilmember Peirce stated if people are burning properly it isn't offensive. He said too many people bum trash, which creates a lot of smoke and odor. ® Council concurred that it was not feasible at this time to send this item to the Planning Commission but Mayor Peters wanted to emphasize to those citizens with wood burning fireplaces to be aware of the pollutants potentially caused by their burning as well as remind citizens it is against the law to burn trash in their fireplaces. No further action was taken on this item. D-2 DISCUSSION ON TROLLEY USE FOR ANNUAL MORRO BAY PARADE: (CITY COUNCIL) Mayor Peters brought this item forward as Parade Director Gary Ream requested the use of the trolley for the Annual Parade to carry Del Mar's 61h grade class. Cost issues are involved in the use of the trolley as the 6a' graders fall into the category of "renters" where the rental cost could run as high as $100. Councilmember DeMeritt stated she'xvould like to see a way for these students to be able to ride on the trolley in the parade, as she likes seeing students taking an active role in civic activities. Bob Teffl stood up in the audience and offered $100 so the students could participate in the parade and ride the trolley. 13 MINUTES — MORRO BAY CITY COUNCIL REGULAR MEETING—1ANUARY 24, 2005 MOTION: Councilmember Peirce moved the City Council accept Bob Tefft's donation of S 100 to rent the trolley for the 61h graders to ride in the parade. The motion was seconded by Councilmember Baxley and carried unanimously. (5-0) D-3 DISCUSSION ON PRIVATE VIEW PROTECTION ORDINANCE; (CITY COUNCIL) Mayor Peters stated residents regarding this matter have approached her. She said their concern is for view protection from the potential of both building obstructions and foliage obstructions. Mayor Peters stated if Council feels it is a matter worth pursuing, then it can be sent to the Planning Commission for their recommendations. Councilmember Peirce asked City Attorney Rob Schultz for his findings on this issue to date because in his opinion; this item will have a high potential for lawsuits. City Attorney Schultz stated he has briefly looked into this and said that the letters from ® Linda Stedjee asked for many more structural restrictions than other cities have adopted to date. In his research; he has found that there have been communities that have adopted view protection ordinances that deal primarily with the foliage issue and not structural issues. E Councilmember Peirce stated he is not supportive with going forward with this at this time. Both Councilmembers DeMeritt and Winholtz felt it was worthwhile to send this issue to the Planning Commission; Mayor Peters concurred. Councilmember Baxley stated he personally favors public view protection, but he does not support the City getting involved in private view protection. MOTION: Councilmember DeMeritt moved that this item be sent to the Planning Commission for their discussion and analysis of the legal, financial; and philosophical ramifications of such a view ordinance. The motion was seconded by Councilmember Winholtz and carried with Councilmember Peirce and Councilmember Baxley voting no. (3-2) 14 ® MINUTES — MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 24, 2005 D-4 SCHEDULING OF BROWN ACT AND POLICIES AND PROCEDURES WORKSHOP AND COUNCIL RETREAT, (ADMINISTRATION) City Attorney Rob Schultz requested that the scheduling of the Brown Act and Council Policies and Procedures Workshop portion of this item be continued to the January 31, 2005 combined City Council and Planning Commission meeting so that the new Planning Commissioners can be involved in the discussion: Council concurred. City Manager Bob Hendrix requested available dates of the Council so he can schedule the City Council retreat. It was decided that the retreat would be scheduled either on April 3 & % 2005 (first choice) or on April 15 & 16, 2005 (second choice). ADJOURNMENT The meeting adjourned at 10:50 p.m. ® Recorded by: l� Pam!Boucher Deputy City Clerk is 15 • NOTICE OF SPECIAL MEETING NOTICE IS HEREBY GIVEN that the Morro Bay City Council will be holding a Special Meeting on Wednesday, January 19, 2005 at 6:00 p.m. and Thursday, January 20, 2005 at 6:00 p.m. to be held in the Community Center Multi Purpose Room, 1001 Kennedy Way, Morro Bay, California. The City Council will be conducting interviews to fill vacancies on the Planning Commission, Public Works Advisory Board, Recreation & Parks Commission, Harbor Advisory Board, and Community Promotions Committee. ® DATED: January 12, 2005 Bridgett Ba r, City Clerk ® MINUTES — MORRO BAY CITY COUNCIL SPECIAL MEETING — JANUARY 19 & 20, 2005 COMMUNITY CENTER MULTI PURPOSE ROOM - 6:00 P.M. E C Mayor Peters called the meeting to order at 6:00 p.m. PRESENT: Janice Peters Mayor STAFF: PUBLIC COMMENT Thad Baxley Melody DeMeritt Bill Peirce Betty Winholtz Robert Hendrix Robert Schultz There was no public comment. REPORT Councilmember Councilmember Councilmember Councilmember City Manager City Attorney Interviews for Planning Commissioners were held on Wednesday, January 19, 2005. There were 16 applicants for 5 vacancies. Selection was by individual paper ballots which were handed out to Council members. Of the 16 applicants, 2 failed to appear leaving 14 applicants for consideration. Votes by paper ballot were tabulated. The following applicants were appointed to the Planning Commission: Nancy Johnson 4 year term Bernard Melvin 4 year term Bill Woodson 3 year term Sarah McCandless 2 year term Robert Tefft, MD 2 year term ADJOURNMENT The meeting adjourned at approximately 9 p.m. MINUTES — MORRO BAY CITY COUNCIL SPECIAL MEETING — JANUARY 19 & 20, 2005 Interviews for the Recreation & Park Commission, Public Works Advisory Board, Community Promotions Committee and Harbor Advisory Board were held on Thursday, January 20. 2005. There were 5 applicants to fill 3 vacancies on the Public Works Advisory Board. Votes by individual paper ballot were tabulated and the following applicants were appointed to the Public Works Advisory Board: Bob Croyle 4 year term Bill Olson 4 year term John Yaroslaski 4 year term There were 4 applicants to fill 3 vacancies on the Recreation & Parks Commission. Of those 4 applicants, only 3 appeared. MOTION: Councilmember Peirce moved that Johnny Munoz, Joan Solu and Leabah Winter be appointed to the Recreation & Parks Commission. The motion was seconded by Councilmember DeMeritt and unanimously carried.(5-0) There were 7 applicants to fill 4 vacancies on the Harbor Advisory Board. Votes by individual paper ballot were tabulated and the following applicants were appointed to the Harbor Advisory Board: Mandy Davis 4 year term Ric Deschler I year term Edwin Ewing 4 year term Jim Phillips 4 year term There were 5 applicants to fill 1 vacancy on the Community Promotions Committee. Of those 5 applicants, only 2 appeared. Votes by individual paper ballot were tabulated and the following applicant was appointed to the Community Promotions Committee: David Weisman 4 year term The meeting adjourned at 8:30 p.m. Recorded by: Jamre Boucher ® Deputy 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 10, 2005 CLOSED SESSION — JANUARY 10, 2005 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. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. Is ® PUBLIC SESSION — JANUARY 10, 2005 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 SPECIAL MEETING ON NOVEMBER 30, 2004 AND THE REGULAR MEETING ON DECEMBER 13, 2004; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 INVESTMENT REPORT FOR NOVEMBER 2004; (FINANCE) RECOMMENDATION: Receive report for information. A-3 RESOLUTION NO.01-05 ADOPTING INVESTMENT POLICY AND DELEGATING AUTHORITY TO CITY TREASURER TO INVEST IDLE FUNDS; (FINANCE) RECOMMENDATION: Adopt Resolution No. 01-05. A-4 RESOLUTION NO.02-05 ADOPTING BUDGET CALENDAR FOR 2005- 2007; (FINANCE) RECOMMENDATION: Adopt Resolution No. 02-05. A-5 APPROVAL OF SEWER MASTER PLAN CONTRACT AMENDMENT; ® (PUBLIC SERVICES) RECOMMENDATION: Approve an amendment to the subject contract, and allocate $30,000 from unobligated sewer fund reserves for extra work. 11 A-6 ACCEPTANCE OF RESIGNATION FROM PLANNING COMMISSIONER, COMMUNITY PROMOTIONS COMMITTEE MEMBER AND HARBOR ADVISORY BOARD MEMBER; (ADMINISTRATION) RECOMMENDATION: Accept letters of resignation. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-I APPEAL OF PLANNING COMMISSION APPROVAL OF COMMUNITY HOUSING PROJECT LOCATED AT 585 MORRO AVENUE; (PUBLIC SERVICES) RECOMMENDATION: Receive public testimony; deny the appeal, and uphold the Planning Commission's decision to conditionally approve the project. ki ® B-2 CONSIDERATION OF CONDITIONAL APPROVAL OF PROPOSED FIVE - LOT RESIDENTIAL COMMUNITY HOUSING PROJECT LOCATED AT 2756 ALDER AVENUE; (PUBLIC SERVICES) RECOMMENDATION: Receive public testimony, and uphold the Planning Commission's decision to conditionally approve the project. B-3 CONSIDERATION OF THE ANNUAL WATER REPORT; (PUBLIC SERVICES) RECOMMENDATION: Receive public testimony, and accept the Planning Commission's recommendation. C. UNFINISHED BUSINESS C-1 REPORT ON STATUS AND LEGALITY OF CITY'S PARKING IN -LIEU FUND; (CITY ATTORNEY) RECOMMENDATION: Discuss and direct staff accordingly. C-2 STATUS REPORT ON INFRASTRUCTURE BANK LOAN APPLICATION FOR JOINT CITY/UNITED STATES COAST GUARD OFFICE STRUCTURE; ® (HARBOR) RECOMMENDATION: Receive report for information. C-3 CONSIDERATION OF RESCHEDULING ADVISORY BOARD INTERVIEW DATES; (ADMINISTRATION) RECOMMENDATION: Discuss and direct staff accordingly. D. NEW BUSINESS D-I REPORT AND RECOMMENDATION TO ADDRESS INDIVIDUAL OFFER OF A CHALLENGE DONATION TO THE LIBRARY; (FINANCE) RECOMMENDATION: Discuss and direct staff accordingly. D-2 CONSIDERATION OF HUNTING REGULATIONS IN THE BACK BAY; (HARBOR) RECOMMENDATION: Discuss and direct staff accordingly. 11 1, ® D-3 DISCUSSION ON NEED FOR PUBLIC REVIEW AND A VISION FOR DEVELOPMENT IN THE CENTRAL BUSINESS DISTRICT ZONING AREA OF THE CITY; (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. 11 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 10, 2005 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Peters 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 Hendrix City Manager Robert Schultz City Attorney CLOSED SESSION MOTION: Mayor Peters moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Baxley and unanimously carried. (5-0) Mayor Peters 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. The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:12 p.m. MOTION: Councilmember Winholtz moved the meeting be adjourned. The motion was seconded by Councilmember Peirce and unanimously carried. (5-0) The meeting adjourned at 5:12 p.m. 11 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 10, 2005 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Peters called the meeting to order at 6:00 p.m. PRESENT: Janice Peters Mayor Thad Baxley Councilmember Melody DeMeritt Councilmember William Peirce 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 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 discussed the property located at 220 Atascadero Road. The City Council previously approved the sale of this property in the amount of $1,315,000, and that sale fell out of escrow; Council in closed session approved the sale to the second bidder for the same purchase price and terms. PUBLIC COMMENT Mandy Davis stated a petition has been circulated regarding back bay hunting regulations. She requested the City Council take a stand and write a letter to the Fish & Game Commission requesting regulations including minimizing hunting .during the months of November, December and January to two days per week and Sundays from 8:00 am. to sunset, and regulating the boundary areas for hunting. Keith Taylor stated funding for the City fire department should be a high priority, and requested the City Council open a second fire station to serve North Morro Bay. u 11 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 10, 2005 Gary Ream announced the second annual Morro Bay Parade along with a family fun zone is scheduled for February 19`s; all funds will be donated to the Friends of the Fire Department. He also stated the final report from the 20/20 Vision Committee is forthcoming. Jack McCurdy stated the City Council should support the fair and workable compromise suggested regarding hunting in the back bay. He said it is unacceptable to hunt birds in an area named a bird sanctuary. Mr. McCurdy stated tourists come to Morro Bay to enjoy the varied species of birds in the estuary. He said it would be a vast improvement to limit hunting during the winter months. Joan Carter stated she is appalled by hunting in the back bay, and asked how this can be enforced. Jim Nance stated the survey sent out by the Fire Department was very informative. He said Council should consider selling City property, reallocate City funds, and/or raise the transient occupancy tax in order to assist in funding for the Fire Department. ® Mark Tognazzini addressed Item D-2 (Consideration of Hunting Regulations in the Back Bay) stating the bay's safety record is outstanding. He said most sanctuaries and refuges would not exist without the contributions of hunters and their families. Mr. Tognazzini stated the Morro Bay Commercial Fishermen support continued access for all users of the bay waters including hunters. He requested the City Council support maintaining the bay hunting restrictions as written. David Nelson addressed Item D-1 (Report and Recommendation to Address Individual Offer of a Challenge Donation to the Library) and requested Council support in matching Mr. Lane's donation for library funding. He referred to the survey sent out by the Fire Department and said the City needs an ambulance rather than driving the fire trucks around town. Mr. Nelson addressed the money owed by Duke Energy noting the City is losing $20,000 per month on an aggrieved rent payment. Lionel Johnston stated the City's tree scape is diminishing and noted there are a variety of oak trees that would do well in Morro Bay. George Contento stated the in -lieu parking program has not followed the letter of the law. He said the City has artificially inflated land costs in the downtown and Embarcadero. Mr. Contento stated parking is being short changed in many ways in new developments. He suggested the City use the harbor fund surplus to purchase 60 spaces at the Brannigan's propterty. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 10, 2005 Bob Stafford, Department of Fish & Game, stated there is a lease with the DFG to hunt in the back bay with regulations. Dan Glesmann addressed the budget process noting the City has been balancing the budget by drawing on reserves. He said his concern is if the California economy turns down, there won't be sufficient reserves to provide vital services. Hershel Parker stated the November 2, 2004 election showed that the people of Morro Bay had decided that the previous City Council majority had gone too far in changing the rules to favor developers at the expense of ordinary taxpayers. He said the zoning ordinance indicates that the Planning Commission had itself been gutting the perfectly good ordinance certified in February 1997. Mr. Parker suggested the Council direct the new planning commission to work with the old ordinance. Henry Ponderelli, President of Morro Coast Audubon, stated they would like to see a protocol that is more aligned with the National Wildlife Refuges. He said their organization is working with the Black Brant Group in forming some positive changes to the hunting regulations in the back bay. ® Jim Bianchi addressed the budget process, and expressed concern that the City's expenditures are more than the reserves. He said the City should use the excellent resources through its department heads to find specific solutions to this budgetary problem. is Tom Laurie stated he is opposed to the City renewing its lease with Duke Energy in the matter of the outfall. He said the new lease contradicts and violates the intent of the City's Local Coastal Plan. Mr. Laurie stated the coastal dependent industrial zoning of the power plant property does not imply short-term use of an existing obsolete plant with a high probability of the abandonment of the plant. John Flaherty, owner of Central Coast Outdoors, stated his business takes visitors on the bay in kayaks. He said the tourists are amazed at the number of birds and are shocked that there is hunting allowed in the bay. Mr. Flaherty also expressed concern with the safety of people during hunting season. Brian Reynolds, Director of San Luis Obispo County Libraries, addressed Item D-1 and requested Council's consideration and support by matching Robert Lane's donation pledge. 11 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 10, 2005 Phil Hill addressed the Boatyard and requested the City Council appraise the 178 square foot triangle, and take the right action so the Boatyard can continue to function and serve the community. Betty Forsythe stated the community is part of making the library successful. She said the Friends of the Library are continuing efforts in enclosing the patio area. Kathleen Vanroman-Wells addressed the hypocrisy of specialty groups who fight commerce and yet require the same services as the working class. Frank DeVine requested that trees being planted in the downtown area be a flowering and fragrant species to enhance the area. He referred to derogatory comments made about him at a previous meeting, and he requested Council not take such comments to heart. Bob Tefft requested Council address the meaning and intent of the parking in -lieu program. He said the original intent of the law should be approached. John Barta stated the City was the recipient of a grant from the Coastal Conservancy to combine the City's Local Coastal Plan and General Plan and over a period of five years there were numerous public hearings to address this project. Greg Smith, State Parks Superintendent, stated the campground renovation should be complete by March or April. He thanked City staff for their efforts in assisting with flooding during the recent storms. Mr. Smith addressed the removal and replacement of trees in the campground, and also addressed other improvements being made. Charlie Palmer stated there are too many houses being built in the City, and he does not know how people obtained permits to build homes so closely together. Mayor Peters closed the hearing for public comment. Mayor Peters called for a break at 7:20 p.m.; the meeting resumed at 7:30 p.m. DECLARATION OF FUTURE AGENDA ITEMS Mayor Peters requested to agendize the discussion on wood burning fireplaces. Mayor Peters also requested to agendize discussion on the use of the trolley for.the annual parade. is MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 10, 2005 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 SPECIAL MEETING ON NOVEMBER 30, 2004 AND THE REGULAR MEETING ON DECEMBER 13, 2004; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 INVESTMENT REPORT FOR NOVEMBER 2004; (FINANCE) RECOMMENDATION: Receive report for information. A-3 RESOLUTION NO.01-05 ADOPTING INVESTMENT POLICY AND DELEGATING AUTHORITY TO CITY TREASURER TO INVEST IDLE FUNDS; (FINANCE) ® RECOMMENDATION: Adopt Resolution No. 01-05. A-4 RESOLUTION NO.02-05 ADOPTING BUDGET CALENDAR FOR 2005- 2007; (FINANCE) 49 RECOMMENDATION: Adopt Resolution No. 02-05. A-5 APPROVAL OF SEWER MASTER PLAN CONTRACT AMENDMENT; (PUBLIC SERVICES) RECOMMENDATION: Approve an amendment to the subject contract, and allocate $30,000 from unobligated sewer fund reserves for extra work. A-6 ACCEPTANCE OF RESIGNATION FROM PLANNING COMMISSIONER, COMMUNITY PROMOTIONS COMMITTEE MEMBER AND HARBOR ADVISORY BOARD MEMBER; (ADMINISTRATION) RECOMMENDATION: Accept letters of resignation. Councilmember Winholtz pulled Item A-1 of the Consent Calendar; Mayor Peters pulled Item A-6. 2 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 10, 2005 MOTION: Councilmember Peirce moved the City Council approve the Consent Calendar with the exception of Items A-1 and A-6. The motion was seconded by Councilmember Baxley and carried unanimously. (5-0) A-1 APPROVAL OF MINUTES FOR THE SPECIAL MEETING ON NOVEMBER 30, . 2004 AND THE REGULAR MEETING ON DECEMBER 13, 2004; (ADMINISTRATION) - Councilmember Winholtz submitted amendments to the minutes of November 30'h (page 4, paragraph 5); and, minutes of the December 13'h (page 5, paragraph 1). MOTION: Councilmember Winholtz moved the City Council approve Item A-1 of the Consent Calendar as amended. The motion was seconded by Councilmember Baxley and carried unanimously. (5-0) A-6 ACCEPTANCE OF RESIGNATION FROM PLANNING COMMISSIONER, COMMUNITY PROMOTIONS COMMITTEE MEMBER AND HARBOR ADVISORY BOARD MEMBER; (ADMINISTRATION) ® Mayor Peters recognized these Committee members for their service to the City. MOTION: Mayor Peters moved the City Council approve Item A-6 of the Consent Calendar. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) B. PUBLIC HEARINGS, REPORTS & APPEARANCES B-1 APPEAL OF PLANNING COMMISSION APPROVAL OF COMMUNITY HOUSING PROJECT LOCATED AT 585 MORRO AVENUE; (PUBLIC SERVICES) Planning Manager Greig Cummings stated the proposed project consist of four single family dwellings on four individual lots with open space easements of 1,000 square feet per residence. The project is within the Planned Development Overlay zone and the applicant requested a modification to the front setback to change it to 10 feet from 20 feet. The applicant also proposed to excavate the bluff face approximately 5 to 6 feet and place two story residences within the bluff buffer that would be 14 feet above the original bluff elevation. The applicant has indicated with the reduced front setback there is a more usable common open space area on the west side of the property; landscaping of the drainage way that extends to the Embarcadero is to be landscaped thus improving the is general appearance of the area; and, the applicant is proposing to landscape and maintain 7 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 10, 2005 the area between the property line and the street improvements. The appellant has indicated the grounds for the appeal include excavation of the bluff is not consistent with the Coastal Land Use Plan and General Plan; the height limit is 14 feet; with excavation, the developer is allowed to build five feet more for a total of 19 feet; one story now becomes two stories; and, the proposed benefit is not a greater than normal public benefit sufficient to allow.the front setback to be reduced from 10 feet to 20 feet. Mr. Cummings recommended the City Council consider the Zoning Ordinance provisions and the pertinent General Plan/Local Coastal Plan policy and determine if the Planning Commission's action to approve the project should be upheld or that the application should be denied, or provide direction to the applicant and/or staff to modify the project. Priscilla Ko, appellant, stated the excavation of the bluff is not consistent with the Coastal Land Use Plan and General Plan. She said the proposed building coverage is proposed at 73%. Ms. Ko stated this project is out of character with neighboring businesses and should not be permitted. She said the project would not substantially improve the visual quality of the bluff or the Embarcadero area, and should not be granted exceptions. Ms. Ko stated the benefit of this project,is not greater than normal. She requested the City Council deny the Planning Commission decision to approve this project. ® Michael Coss, applicant, stated the standards for bluff development also includes using step down development on the bluff. He'reviewed the project setbacks and noted the consistency of his proposed project and surrounding structures in the neighborhood. Mr. Coss stated he meets the open space requirements, however, he is proposing to offer open space on the bluff. He requested Council deny the appeal and uphold the Planning Commission's approval of this project. Mayor Peters opened the hearing for public comment Bob Tef : asked where the public benefit is in exchange for the exceptions requested for this project. Brian Holden stated the applicant lives locally and cares about Morro Bay. He said the applicant would do whatever he can to enhance the City and will provide housing. Dan Lapp stated this project would not have a lot of visibility because it is not on a corner. He said the applicant is providing ample parking, so that should not be a concern. Frank DeVine stated this is too much development for this site. He said approving this project could set a precedent in approving over -development of lots. Mr. DeVine stated he would like to see some public benefit come out of this project. N ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 10, 2005 Dorothy Cutter referred to planned development zoning, and stated properties such as this should be held to the highest of standards. She said this project is too large for the site and sets a bad precedent. Ken Vesterfelt stated Council should ask staff what the zoning requirements are for this property - Ray McKelligott stated grading is not allowed between the months of November and March. Mayor Peters closed the public comment hearing. Councilmember Winholtz stated she is uncomfortable with this project. She said she thought the original staff report identified the issues and presented a compromise on how this project should fit on the property. Councilmember Winholtz stated she supports upholding the appeal both for the setbacks and the bluff top excavation. Councilmember Baxley stated this project does not meet the City's Local Coastal Plan ® that does not allow excavation of the bluff top. He said this project does not provide public benefit and therefore should not receive benefits to the setbacks. L] Councilmember DeMeritt stated this project does not provide an architectural benefit to the City. She said this project is in the PD Overlay zone because it sits on the bluff, which is a sensitive area. Councilmember DeMeritt stated she does not feel this would provide community housing that could house the working class. She said she supports upholding the appeal. Councilmember Peirce stated he does not see the public benefit and therefore supports the appeal. Mayor Peters agreed there is no public benefit and she supports upholding the appeal. Councilmember Baxley stated the redesign of this project should consider the two points of appeal. MOTION: Councilmember Peirce moved the City Council tentatively upheld the appeal of the Planning Commission's approval of a Community Housing Project Located at 585 Morro Avenue. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) E ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 10, 2005 The City Council requested a redesign of this project go before the Planning Commission. B-2 CONSIDERATION OF CONDITIONAL APPROVAL OF PROPOSED FIVE - LOT RESIDENTIAL COMMUNITY HOUSING PROJECT LOCATED AT 2756 ALDER AVENUE; (PUBLIC SERVICES) Associate Planner Mike Prater stated the proposed project would be constructed in two phases. The first phase is under way to construct two of the single-family residential units on two of the three existing lots. This phase qualified for an administrative Coastal Development Permit. The second phase would reconfigure the existing three lots to create a five -unit community housing project. Each lot would be approximately 2,400 square feet with a 1,800 square foot residential unit, including a two -car garage. The project site size is approximately 11,991 square feet in area and zoned for multi -family residential development at a density of 1,800 square feet of gross area per unit, which equates to 6 units. The project will meet all development standards and will not be asking for any exceptions. On November 15, 2004, the Planning Commission considered the application at a regularly scheduled public hearing. The Planning Commission ® received public testimony, closed the public hearing and took an action recommending approval of the Tract Map, Coastal Development Permit and Conditional Use Permit for the project unanimously. The Commission's action included adding two conditions: 1) landscape and maintenance plan illustrating how the project's future homeowners will utilize the space as a common area while appearing to maintain the character of a single- family neighborhood; and 2) provide a Tract Map showing the 5,000 square feet of common open space as an easement. Mr. Prater recommended the City Council accept the Planning Commission's recommendation to conditionally approve the project. Ci Tim Moscardi, applicant, stated the project allows for six units, however, he is planning to build five. He reviewed an updated map for Council information including the open space per unit. Mr. Moscardi stated he is not requesting any variances for this project. Mayor Peters opened the hearing for public comment. Frank DeVine stated the only community housing aspect of this project is the sparse common open space area. He said parking standards should be raised before approving high -density projects. Mr. Devine stated the General Plan requires that the proposed development should match the development that already exists, and this proposed project is not in character with the neighborhood. He said this is too much building on this size property, and it should be reduced. 10 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 10, 2005 Susan Heinemann stated she is opposed to this 5-unit housing project. She said this development does not provide an ample common area, and thus does not meet the criteria for community housing. Ms. Heinemann requested Council return this project to the newly appointed Planning Commission for further review. Roy Kline stated he is opposed to this community housing project. He said this project would cram five 2-story houses on what are three parcels in a residential area, which is unacceptable. Mr. Kline stated these homes would be too expensive for low-income residents to afford. Ken Vesterfelt stated this applicant has the right to build on this property. He said property values are extremely high and difficult to build low-income housing. Dan Kaufman stated this project would improve the neighborhood. Frank Gilbert stated this project was proposed to have a positive impact on Morro Bay. Mayor Peters closed the public comment hearing. ® Councilmember Baxley stated this project meets all planning regulations and he supports the project. Councilmember Winholtz stated she would like to see six units built on the three lots that would provide affordable housing. She said it would be more physically responsible to place the garages facing Birch Street, which is a less busy street. Councilmember DeMeritt stated this area has small lots and she does not know why the City would want to take three small lots and turn them into six smaller lots. She said building a primary residence with a secondary unit would provide the affordable housing critically needed in the City. Councilmember DeMeritt stated the proposed common open space does not meet the criteria described in the code. Councilmember Peirce stated North Morro Bay use to be known as Del Mar, and it has unique lot sizes. He said affordable housing is needed, and these smaller houses will be more affordable than a larger house. Mayor Peters stated this neighborhood has a lot of variation in housing size because it is in transition. She said an apartment building would be denser than this project, and this project would benefit the neighborhood and support affordable housing. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 10, 2005 MOTION: Councilmember Baxley moved the City Council accept the Planning Commission recommendation to conditionally approve the five -lot residential community housing project located at 2756 Alder Avenue. The motion was seconded by Councilmember Peirce and carried with Councilmember DeMeritt and Councilmember Winholtz voting no. (3-2) Mayor Peters called for a break at 9:08 p.m.; the meeting resumed at 9:15 p.m. B-3 CONSIDERATION OF THE ANNUAL WATER REPORT; (PUBLIC SERVICES) Planning Manager Greig Cummings stated pursuant to Section 13.20.060 of the Morro Bay Municipal Code, the Annual Water Report has been prepared by the Public Services Department and reviewed by the Planning Commission, and their recommendation forwarded by this report to the City Council for consideration and adoption, after concluding a public hearing. This report describes the uses that have received water equivalency allocations in 2004, and provides staffs recommendation regarding the building allocation for residential units and the suggested mix of multi -family and single ® family residential units for 2005 as indicated in City Council Resolution No. 78-00. This resolution indicates that the City Council will continue to set an annual limit on residential units and their mix as set forth in Ordinance No. 266. Mr. Cummings stated the Planning Commission recommends, pursuant to the procedures established in Ordinance No. 266, that the City Council: 1) allocate the mix of residential units to 60 percent single-family and 40 percent multi -family units; and authorize the corresponding water equivalency allocation for residential uses at 100 water equivalency units; 2) process residential allocation limits on a fast -come, first -serve basis, based on the priorities contained in the current General Plan and Local Coastal Plan policies. Unused multiple family residential water equivalency units may be rolled over to single family dwellings after September 30, 2005; 3) authorize allocation of 130% of the residential water equivalency units to commercial and industrial projects, within the priority categories consistent with the current Local Coastal Plan and General Plan policies; and 4) roll any unused water allocations over to next year's allocations for 2006. Mayor Peters opened the hearing for public comment; there being no comments, Mayor Peters closed the public comment hearing. MOTION: Councilmember Peirce moved the City Council approve the Planning Commission recommendation, pursuant to the procedures established in Ordinance No. 266, as follows: 1) allocate the mix of residential units to 60 percent single-family and 40 percent multi -family units; and authorize ® the corresponding water equivalency allocation for residential uses at 100 12 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — JANUARY 10, 2005 water equivalency units; 2) process residential allocation limits on a first - come, first -serve basis, based on the priorities contained in the current General Plan and Local Coastal Plan policies. Unused multiple family residential water equivalency units may be rolled over to single family dwellings after September 30, 2005; 3) authorize allocation of 130% of the residential water equivalency units to commercial and industrial projects, within the priority categories consistent with the current Local Coastal Plan and General Plan policies; and 4) roll any unused water allocations over to next year's allocations for 2006. The motion was seconded by Councilmember Baxley and carried unanimously. (5-0) C. UNFINISHED BUSINESS C-1 REPORT ON STATUS AND LEGALITY OF CITY'S PARKING IN -LIEU FUND; (CITY ATTORNEY) This item was continued to a special meeting with the Planning Commission on January ® 31, 2005. C-2 STATUS REPORT ON INFRASTRUCTURE BANK LOAN APPLICATION FOR JOINT CITY/UNITED STATES COAST GUARD OFFICE STRUCTURE; (HARBOR) Harbor Director Rick Algert stated the City's Harbor Department is housed in a 1950's building that is substandard and insufficient for space requirements. The Harbor Department has a long history of searching for funds and a feasible site to provide modem office facilities dating back at least twenty years to a proposal to relocate to the south Rock parking lot area. That proposal was to be funded by a low interest loan from the Department of Boating and Waterways but the proposed site was not acceptable from a community planning perspective. In 1995, the Harbor Department spent a year on design and development of a replacement three-story harbor office at the current location. Cost estimates came in at almost $600,000 and the City Council declined to proceed due to financial constraints and concerns over long-term planning issues. In 1999, based on mutual interest from the USCG in improving their facility, the City Council authorized staff to work with the USCG on a proposed joint office concept on the site of the existing USCG and Harbor offices. The concept was to develop in partnership a facility that would house both functions and the first step for the USCG was a planning proposal that would have to be approved by USCG headquarters in Washington. In 2001, the planning proposal went to USCG headquarters recommending that the USCG enter into an agreement with the City on ® a joint use building. That planning proposal was sitting at USCG headquarters when 9/11 13 MINUTES - MORRO BAY CITY COUNCIL �. REGULAR MEETING — JANUARY 10, 2005 occurred. Since that time, the USCG has gone through reorganization into the Homeland Security Department and has only, shown intermittent interest or ability to move forward with the proposal. While this would seem to be an endorsement of continued work on the concept, the underlying currents have left City staff feeling that such a complex project is unlikely to receive a high priority at the USCG at this time. In addition, there are financing issues in the Harbor Fund. No action was taken on this item. C-3 CONSIDERATION OF RESCHEDULING ADVISORY BOARD INTERVIEW DATES; (ADMINISTRATION) MOTION: Councilmember Winholtz moved the City Council schedule the advisory board interviews for January 19 and 20, 2005. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) D. NEW BUSINESS isOF REPORT AND RECOMMENDATION TO ADDRESS INDIVIDUAL OFFER OF A CHALLENGE DONATION TO THE LIBRARY; (FINANCE) Finance Director Jim Koser stated the City Council received a letter from Mr. Robert Lane of Morro Bay offering to donate $10,000 to the Mono Bay Library, if the City would match it with an equal amount. Mr. Lane expressed a desire to see the City begin to participate financially in support of the local library. He noted Mr. Lane wishes to establish precedence of City financial support; with the expectation that it would continue into the future. His offer did not allow for the Friends of the Library or other organizations or individuals to pay a portion of the City's obligation. Councilmember Baxley stated he supports finding out if Mr. Lane will accept "in -kind" donations. Council concurred to wait to see if Mr. Lane will accept "in -kind" donations. No further action was taken on this item. 14 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 10, 2005 D-2 CONSIDERATION OF HUNTING REGULATIONS IN THE BACK BAY; (HARBOR) Harbor Director Rick Algert stated the State of California sets hunting and fishing regulations through the California Fish and Game Commission. Waterfowl hunting is currently allowed from approximately the beginning of November through the end of January and only in the Fish and Game managed area of the back bay, which is outside the City limits. The City cannot directly regulate waterfowl hunting on the bay. The Fish and Game Commission does review and re -set waterfowl regulations periodically. The City may provide written comments to the Fish and Game Commission at any time on setting waterfowl regulations in the area. Mayor Peters opened the hearing for public comment. Phil Hill stated he would be assisting in gathering signatures on the petition in opposition to back bay hunting. He said he lives on a boat in the bay, and when gunshots go off it makes everyone including the otters flinch. Mr. Hill stated compromise is a good thing. ® Abe Perlstein stated while taking pictures by the bay, he saw ducks and then heard shots fired 20-30 feet away from him. He said he would like to see a compromise downsizing the time and season for hunting. Mark Kennelly, California Waterfowl Association, stated the public has a right to hunt navigable waterways, and urged the City Council to oppose any new restrictions on waterfowl hunting. Gene Johe, President of the Black Brant Group, stated he has been hunting in the bay since 1948. He said it was suggested by the Department of Fish and Game years ago that the Black Brant Group educate hunters on the boundaries set for hunting in the back bay. Ed Dumong stated commercial fishermen are being closed down in the same way as the hunters, and he urged Council not to support placing restrictions on hunting. Mandy Davis reviewed a detailed map for Council information. She requested that the grass island shown on the map be eliminated completely from the restricted hunting area. Ms. Davis stated the restricted area is also a hub for recreational activities. She requested Council correspond with the Fish and Game Commission to recommend changes to their policies limiting hunting to two days per week plus Sunday, and removal of the grass island from the hunting boundaries. Mayor Peters closed the public comment hearing. 15 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 10, 2005 Councilmember Winholtz stated she could support forming a sub -committee to work with those who support and oppose hunting in order to form a compromise. Councilmember Baxley stated since the City does not have jurisdiction over this issue, he supports waiting until the Fish & Game Commission hears this issue. Councilmember DeMeritt stated she agrees to wait until the Fish and Game Commission hears this issue in August, and that the City should encourage the public to attend this meeting, which will be held in Morro Bay. She said hunting should not take place the same weekend as the Winter Bird Festival. Councilmember Peirce agreed that the public should be encouraged to attend the Fish and Game Commission meeting. He said being this is not within the City's jurisdiction, he is not ready to take a position at this time. Mayor Peters stated the bird sanctuary is within the City's jurisdiction, however, hunting in the back bay is not. She said as a City, it would not be appropriate to enter into this at Is this time. No action was taken on this item. D-3 DISCUSSION ON NEED FOR PUBLIC REVIEW AND A VISION FOR DEVELOPMENT IN THE CENTRAL BUSINESS DISTRICT ZONING AREA OF THE CITY; (PUBLIC SERVICES) This item was continued to a Special Meeting with the Planning Commission on January 31, 2005. ADJOURNMENT The meeting adjourned at 10:40 p.m. Recorded by: Bridgett Baddr City Clerk 1 16