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HomeMy WebLinkAboutJanuary - December0 O City of Morro Bay Morro Bay, CA 93442 (805) 772-6200 CITY OF MORRO BAY CITY COUNCIL NOTICE OF CANCELED MEETING THE REGULAR CITY COUNCIL MEETING SCHEDULED FOR MONDAY, DECEMBER 24, 2007 HAS BEEN CANCELED The next regularly scheduled meeting will be held on Monday, January 14, 2008, 6:00 p.m., Veterans Hall. FINANCE ADMINISTRATION FIRE DEPT. PUBLIC SERVICES 595Harbor Street 595 Harbor Street 715 Harbor Street 955 Shasta Avenue HARBOR DEPT. 1275 Embarcadero Road CITY ATTORNEY POLICE DEPT. RECREATION & PARKS 955 Shasta Avenue 870 Morro Bov Boulevard 1001 Kennedv War ® 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 — DECEMBER 10, 2007 CLOSED SESSION — DECEMBER 10, 2007 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 three (3) parcels. • Property: Lease Site: 30W-33W ® Negotiating Parties: Jay and Mereline Coakley and the City of Morro Bay Negotiations: Lease Terms and Conditions Property: Lease Site 34W Negotiating Parties: Norman Arnold and the City of Morro Bay Negotiations: Lease Terms and Conditions Property: Morro Bay Dunes. Negotiating Parties: Doug Claassen and City of Mono Bay. Negotiations: Lease Terms and Conditions. CS-2 GOVERNMENT CODE SECTION 54957; PERSONNEL ISSUES: Discussions regarding Personnel Issues including one (1) public employee regarding appointment, specifically the City Manager. CS-3 GOVERNMENT CODE SECTION 54957.6. CONFERENCE WITH LABOR NEGOTIATOR: Conference with City Attorney, the City's Designated Representative, for the purpose of reviewing the City's position regarding the terms and compensation paid to the City Manager and giving instructions to the Designated Representative. CS-4 GOVERNMENT CODE SECTION 54957; PERSONNEL ISSUES: Discussions regarding Personnel Issues including two (2) public employees regarding evaluation, specifically the City Attorney and Interim City Manager. ® IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. PUBLIC SESSION — DECEMBER 10, 2007 VETERANS MEMORIAL HALL - 6:00 P.M Is 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 13, 2007 CITY COUNCIL MEETING; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 RESOLUTION NO. 61-07 APPROVING AMENDMENT 91 TO THE LEASE AGREEMENT FOR LEASE SITE 34W LOCATED ADJACENT TO 225 MAIN ® STREET; (HARBOR) RECOMMENDATION: Adopt Resolution No. 61-07. A-3 RESOLUTION NO. 62-07 APPROVING SECOND AMENDMENT TO THE LEASE AGREEMENT FOR LEASE SITE 30W-33W LOCATED ADJACENT TO 201 MAIN STREET; (HARBOR) RECOMMENDATION: Adopt Resolution No. 62-07. A-4 RESOLUTION NO. 63-07 ACCEPTING DEDICATION OF RIGHT-OF-WAY OFFERED IN CONJUNCTION WITH A PROJECT LOCATED AT 461 PINEY WAY; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 63-07. A-5 AUTHORIZATION TO AMEND CONDITIONAL USE PERMIT CONDITIONS ON TRACT MAP 1996 AND ASSOCIATED PRECISE PLAN; (PUBLIC SERVICES) RECOMMENDATION: Authorize the removal of conditional of approval number 18 from Conditional Use Permit No. 28-90. A-6 ACCEPTANCE OF LETTER OF RESIGNATION FROM HARBOR ADVISORY BOARD MEMBER RODGER ANDERSON; (ADMINISTRATION) RECOMMENDATION: Accept letter of resignation. A-7 RESOLUTION NO. 60-07 OF INTENT TO PURCHASE THE FINANCIAL . SOFTWARE UPGRADE; (FINANCE) RECOMMENDATION: Adopt Resolution No. 60-07. B. ' PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 EXTENSION OF AN INTERIM URGENCY ORDINANCE PROHIBITING THE ESTABLISHMENT OF MEDICAL MARIJUANA DISPENSARIES; (CITY ATTORNEY) RECOMMENDATION: Adopt Interim Urgency Ordinance No. 536, which would extend for an additional one year to the moratorium on the establishment of a Medical Marijuana Dispensary in Morro Bay. B-2 CONTINUED PUBLIC HEARING ON A BED AND BREAKFAST/MIXED- USE PROJECT LOCATED AT-214 BEACH STREET; (PUBLIC SERVICES) RECOMMENDATION: Conditionally approve the project. 3 B-3 RECONSIDERATION OF CITY'S INVOLVEMENT IN THE BUSINESS ® IMPROVEMENT DISTRICT; (ADMINISTRATION) RECOMMENDATION: Consider information provided and advise staff on the current payment of $10,000 requested by the San Luis Obispo County Visitors and Conference Bureau for fiscal year 2007/2008. B-4 RECONSIDERATION OF PAYMENT TO THE VISITORS AND CONFERENCE BUREAU; (ADMINISTRATION) RECOMMENDATION: Consider the consent given to the County of San Luis Obispo to form the San Luis Obispo County Tourism Business Improvement District. C. UNFINISHED BUSINESS C-1 AUTHORIZATION FOR STAFF TO NEGOTIATE AND ENTER INTO AN AGREEMENT FOR AN ORGANIZATIONAL ANALYSIS OF THE CITY STRUCTURE; (CITY ATTORNEY) RECOMMENDATION: Review the two proposals, choose a firm, and authorize staff to negotiate and enter into an Agreement to perform an Organizational ® Analysis of the City structure. D. NEW BUSINESS 1 D-1 PROPOSAL TO AUTHORIZE STAFF TO NEGOTIATE AN AGREEMENT WITH A WEB DEVELOPMENT COMPANY TO UPDATE AND PROVIDE A NEW WEBSITE FOR THE CITY; (CITY COUNCIL) RECOMMENDATION: Review proposal and authorize staff to contract with a web development company to develop a new city website. D-2 REQUEST TO SOLE SOURCE A FIRE ENGINE REPLACEMENT; (FIRE) RECOMMENDATION: Authorize the sole source purchase of a 1,500 gpm Type I fire engine from Pierce Manufacturing in an amount not to exceed $445,000. D-3 AUTHORIZATION FOR FUNDING TO DEFEND LAWSUIT ENTITLED LINKER & PATTERSON VS. CITY OF MORRO BAY; (CITY ATTORNEY) RECOMMENDATION: Authorize $7,500 out of the Risk Management Fund to fund the defense of the stated lawsuit. 4 r!, E. ADJOURNMENT THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TIME SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 772-6200 FOR FURTHER INFORMATION. COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST AT CITY HALL, LIBRARY, AND MILLS STATIONERY. IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. 5 ® MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION — DECEMBER 10, 2007 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Peters called the meeting to order at 5:00 p.m PRESENT: Janice Peters Mayor Melody DeMeritt Councilmember Rick Grantham Councilmember William Peirce Councilmember Betty Winholtz Councilmember STAFF: Andrea Lueker Interim 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 Grantham and unanimously tamed. (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 three (3) parcels. Property: Lease Site: 30W-33W Negotiating Parties: Jay and Mereline Coakley and the City of Morro Bay Negotiations: Lease Terms and Conditions Property: Lease Site 34W Negotiating Parties: Norman Arnold and the City of Morro Bay Negotiations: Lease Terms and Conditions Property: Morro Bay Dunes. Negotiating Parties: Doug Claassen 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 appointment, specifically the City Manager. 11 CS-3 GOVERNMENT CODE SECTION 54957.6; CONFERENCE WITH LABOR NEGOTIATOR: Conference with City Attorney, the City's Designated Representative, for the purpose of reviewing the City's position regarding the terms and compensation paid to the City Manager and giving instructions to the Designated Representative. CS-4 GOVERNMENT CODE SECTION 54957, PERSONNEL ISSUES: Discussions regarding Personnel Issues including two (2) public employees regarding evaluation, specifically the City Attorney and Interim City Manager. The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:50 p.m. MOTION: Councilmember DeMeritt moved the meeting be adjourned. The motion was seconded by Councilmember Winholtz and unanimously carried. (5-0) The meeting adjourned at 5:50 p.m. 1 J n ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — DECEMBER 10, 2007 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Peters called the meeting to order at 6:00 p.m PRESENT: Janice Peters Mayor Melody DeMeritt Councilmember Rick Grantham Councilmember William Peirce Councilmember Betty Winholtz Councilmember STAFF: Andrea Lueker Interim City Manager Robert Schultz City Attorney Bridgett Bauer City Clerk Rick Algert Harbor Director Bruce Ambo Public Services Director Rob Livick City Engineer Tim Olivas Police Commander Mike Pond Fire Chief Mike Prater Planning Manager ® 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 Caroling Cop Cars and Christmas Trolley would be driving throughout town December 11— 13, 2007. Keith Taylor thanked those who participated in the ground breaking of the new Fire Station and the Christmas Tree Lighting celebration. Claire Grantham stated the City Thanksgiving Dinner was a successful event. She also requested everyone remember those who protect us in the City during the holiday season. Candy Botich addressed Item A-2 (Resolution No. 61-07 Approving Amendment #1 to the Lease Agreement for Lease Site 34W Located Adjacent to 225 Main Street) and requested Council change Amendment 91 to the Lease Agreement for the use of the parking spaces to coincide with the recorded deed restriction rather than the length of the lease. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — DECEMBER 10, 2007 Dannie Tope requested the City Council approve the extension of an interim urgency ordinance prohibiting the establishment of medical marijuana dispensaries in the City. She also stated the State Alcohol Beverage Control Board is sponsoring a four-hour course for restaurant or bar owners/managers and encouraged the City to consider this course for local businesses. Bill Black stated the City's police officers deserve a larger increase in pay. He also expressed concern with fast food restaurants that hose their parking lots down every morning. Walter Heath addressed SB 840 (Health Care for All) and requested the City Council re - endorse SB 840 in 2008. Dorothy Cutter requested the City Council pull Items A-2 and A-3 from the Consent Calendar and agendize them as public hearing items to allow for public comment. Guy Wallace, Central Coast Scottish Society, invited those interested in the Scottish heritage to attend a performance on Saturday, December 15's. ® Jack Barrett expressed concern that the Police Department has a lack of back up, and noted the police officers deserve a 15% pay increase in order to maintain its force. Ken Vesterfelt stated the Cruisin' Car Show Committee distributed $5,300 to each the Morro Bay Rotary Club, Police Explorers and Chamber of Commerce. He also expressed support for the City's Police Department. John Barta stated State Water reported San Luis Obispo County would be allocated 100% of its requested allocation in 2008. He referred to Item D-1 (Proposal to Authorize Staff to Negotiate an Agreement With a Web Development Company to Update and Provide a New Website for the City) and said there should be a public bid process for this endeavor. Bill Martony requested Item A-2 be rescheduled as a public hearing. He reviewed the parking problems and said there should be monthly reports and in-depth discussions on how to remedy this problem. Beverly Abbey expressed concern with littering along property by the high school owned by the school district and property along the Cloisters Subdivision that is contributing gross pollution to the creek banks and ocean. 4 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — DECEMBER 10, 2007 Jay Coakley addressed Item A-3 (Resolution No. 62-07 Approving Second Amendment to the Lease Agreement for Lease Site 30W-33W Located Adjacent to 201 Main Street) and said he will work with the neighbors on issues relating to the amendment of this lease agreement. Nancy Castle announced the Fundraiser Follies show that will benefit various events in the City; she requested acts to participate in this show. Mayor Peters closed the hearing for public comment. Mayor Peters called for a break at 7:15 p.m.; the meeting resumed at 7:20 p.m. DECLARATION OF FUTURE AGENDA ITEMS Councilmember Winholtz requested to agendize a discussion on SB 840 (Health Care for All) in February — (Councilmember Winholtz will prepare report); Councilmember DeMeritt and Mayor Peters concurred. ® Councilmember DeMeritt requested to agendize a discussion on a City policy on purchasing plastic bottles — (Councilmember DeMeritt will prepare report); Councilmember Winholtz and Mayor Peters concurred. Councilmember DeMeritt requested to agendize a discussion on the use of GEM Cars (student report). Councilmember DeMeritt requested to agendize a discussion on declaring Morro Bay as a homeport for the Lynx and Golden Hinde (Lynx/Hinde Group to do presentation). Mayor Peters requested to agendize a discussion on limiting chain stores on the Embarcadero and downtown area - (Mayor Peters will prepare report); Councilmember Grantham and Councilmember Winholtz concurred. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES FOR THE NOVEMBER 13, 2007 CITY COUNCIL MEETING; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — DECEMBER 10, 2007 A-2 RESOLUTION NO. 61-07 APPROVING AMENDMENT #1 TO THE LEASE AGREEMENT FOR LEASE SITE 34W LOCATED ADJACENT TO 225 MAIN STREET; (HARBOR) RECOMMENDATION: Adopt Resolution No. 61-07. A-3 RESOLUTION NO. 62-07 APPROVING SECOND AMENDMENT TO THE LEASE AGREEMENT FOR LEASE SITE 30W-33W LOCATED ADJACENT TO 201 MAIN STREET; (HARBOR) RECOMMENDATION: Adopt Resolution No. 62-07. AA RESOLUTION NO. 63-07 ACCEPTING DEDICATION OF RIGHT-OF-WAY OFFERED IN CONJUNCTION WITH A PROJECT LOCATED AT 461 PINEY WAY; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 63-07. ® A-5 AUTHORIZATION TO AMEND CONDITIONAL USE PERMIT CONDITIONS ON TRACT MAP 1996 AND ASSOCIATED PRECISE PLAN; (PUBLIC SERVICES) r RECOMMENDATION: Authorize the removal of conditional of approval number 18 from Conditional Use Permit No. 28-90. A-6 ACCEPTANCE OF LETTER OF RESIGNATION FROM HARBOR ADVISORY BOARD MEMBER RODGER ANDERSON; (ADMINISTRATION) RECOMMENDATION: Accept letter of resignation. A_-7 RESOLUTION NO. 60-07 OF INTENT TO PURCHASE THE FINANCIAL SOFTWARE UPGRADE; (FINANCE) RECOMMENDATION: Adopt Resolution No. 60-07. Councilmember Peirce pulled Items A-2 and A73 from the Consent Calendar; Councilmember DeMeritt pulled Item A-5. MOTION: Councilmember Peirce moved the City Council approve the Consent Calendar with the exception of Items A-2, A-3 and A-5. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) 0 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — DECEMBER 10, 2007 A-2 RESOLUTION NO. 61-07 APPROVING AMENDMENT 91 TO THE LEASE AGREEMENT FOR LEASE SITE 34W LOCATED ADJACENT TO 225 MAIN STREET; (HARBOR) Councilmember Peirce requested staff review this item for public information. Harbor Director Rick Algert reviewed the proposed amendment to the lease agreement for Lease Site 34W. Councilmember Winholtz proposed the following amendments to the lease agreement: (Rent) Item 4: Provide use of 5 parking spaces for the boat slip tenants dwing the term ef the leas . Also add the following language: "Lessee shall complete the following work by the dates shown at Lessee's sole cost and expense or Lessee shall be in material breach of the Lease and subject to any and all remedies allowed by the Lease or under law." Councilmember DeMeritt addressed concerns with surface waters that drain into the bay is through this lease site and recommended an oil silt separator be placed at this location. MOTION: Councilmember Winholtz moved the City Council approve Item A-2 of the Consent Calendar as amended. The motion was seconded by Councilmember Peirce and carried with Councilmember DeMeritt voting no. (4-1) A-3 RESOLUTION NO. 62-07 APPROVING SECOND AMENDMENT TO THE LEASE AGREEMENT FOR LEASE SITE 30W-33W LOCATED ADJACENT TO 201 MAIN STREET; (HARBOR) Councilmember Peirce requested staff review this item for public information. Harbor Director Rick Algert reviewed the proposed amendment to the lease agreement for Lease Site 30W-33W. Councilmember Winholtz proposed the following amendments to the lease agreement: 2(a) — By January 31, 2009, submit to the City Building Department plans for a new marine grade electrical system including sufficient pedestals and service for the 24 slips on the site.... 2(c) — By December 30, 204-3 2011 complete construction/installation of the new electrical system for the docks on the site. 7 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING - DECEMBER 10, 2007 MOTION: Councilmember Winholtz moved the City Council approve Item A-3 of the Consent Calendar as amended. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) A-5 AUTHORIZATION TO AMEND CONDITIONAL USE PERMIT CONDITIONS ON TRACT MAP 1996 AND ASSOCIATED PRECISE PLAN; (PUBLIC SERVICES) Councilmember DeMeritt asked if this is a normal procedure to remove a condition on a tract map. Public Services Manager Bruce Ambo stated this condition on Lot 24 was found to be unusual when the tract map was being recorded. City Attorney Robert Schultz stated the City would advise the Coastal Commission of this amendment. MOTION: Councilmember DeMeritt moved the City Council approve Item A-5 of the Consent Calendar. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 EXTENSION OF AN INTERIM URGENCY ORDINANCE PROHIBITING THE ESTABLISHMENT OF MEDICAL MARIJUANA DISPENSARIES; (CITY ATTORNEY) City Attorney Robert Schultz stated the City Council initially granted an Interim Urgency Ordinance for 45 days and then 10 months and 15 days and staff is now requesting the City Council hold a public hearing to extend the period in order for staff to develop regulations for Medical Marijuana Dispensaries. Mr. Schultz recommended the City Council adopt Interim Urgency Ordinance No. 536 which would extend the moratorium on the establishment of Medical Marijuana Dispensaries in the City of Morro Bay for an additional one-year. Mayor Peters opened the hearing for public comment; there were no comments, and Mayor Peters closed the public comment hearing. F? ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — DECEMBER 10, 2007 MOTION: Councilmember Winholtz moved the City Council adopt Interim Urgency Ordinance No. 536 extending the establishment of a Medical Marijuana Dispensary for a one (1) year period; and, direct the City Attorney to return with an update within six (6) months. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) B-2 CONTINUED PUBLIC HEARING ON A BED AND BREAKFAST/MDCED- USE PROJECT LOCATED AT 214 BEACH STREET; (PUBLIC SERVICES) Planning Manager Mike Prater stated this project was last reviewed by the City Council on June 25, 2007. The proposed project would remodel an existing commercial building into two new commercial spaces downstairs as retail and cafe, and occupy an area less than 125 square feet for sidewalk cafe purposes and construct a new two -car garage structure at the rear. The second floor space would include a bed and breakfast. style caretakers residential unit with a guest suite, this space would also allow office space for the caf6, and caretakers' quarters. The project would be grandfathered twelve parking spaces with the re -use of the building based on prior uses allowed and was recommended to make a payment of four spaces as in -lieu fees to meet the remaining peak demand ® needs. The revised project addresses the parking and safety concerns raised by adding four spaces at the rear of the site. The majority of the improvements attempt to address the safety concerns for ingress/egress to and from the site, and are derived from the traffic and parking study. Mr. Prater recommended the City Council conditionally approve the proposed project. Jenne Hamlet, applicant, answered questions from the City Council. Mayor Peters opened the hearing for public comment. Steve Semas stated the parking lot across the street from this proposed project is a private parking lot and has only enough parking spaces for his tenants use. He addressed the problems with traffic control on Beach Street and said in -lieu fees would not resolve the parking problem. Roger Ewing expressed concern that there is no visual information on this project. He said he is opposed to this project because it is zoned for visitor serving uses and not mixed -use, and noted this project would put the City at risk due to the location. Lanny McKay stated plans are always available for review at the Public Services Department. Mayor Peters closed the public comment hearing. 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — DECEMBER 10, 2007 After discussion, there was a majority Council consensus that street striping should be paid by the applicant; the requirement to post no parking signs for vehicles over 7 feet high on Market Street; investigate a flashing red light for pedestrian crossing; and require covered parking vs. a parking structure. Further discussion also revealed that the bedroom designed for the applicant's upstairs housing unit was not legally designed under the City's zoning codes. MOTION: Councilmember Peirce moved the City Council continue this item to allow for a redesign of the plan. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) B-3 RECONSIDERATION OF PAYMENT TO THE VISITORS AND CONFERENCE BUREAU; (ADMINISTRATION) Interim City Manager Andrea Lueker stated the City allocated $10,000 in the 2007/2008 fiscal year budget for membership payment to the County Visitors and Conference Bureau (VCB). As a result of the substantial change in the services/programs provide to the City by the VCB, staff felt it necessary to bring this issue before the City Council ® prior to final payment of the membership. Ms. Lueker recommended the City Council consider the information provided and advise staff on the current payment of $10,000 requested by the VCB for fiscal year 2007/2008. u Jonni Biaggini, Executive Director for the Visitors and Conference Bureau reviewed the benefits the City would receive at less than full funding. Mayor Peters opened the hearing for public comment. Ed Biaggini expressed support for continuing support of the Visitors and Conference Bureau. He read a letter from Stan Trapp of Marina Square who is also in support of the Visitors and Conference Bureau. Joan Solu expressed support for an increase in funding to the Visitors and Conference Bureau, and presented signed petitions of supporters for funding to the VCB. Mayor Peters closed the public comment hearing Councilmember Grantham stated the $10,000 for partial funding is a waste and should not be considered; the City should participate with full funding or not participate at all. He said it would be irresponsible to allocate additional funding without the advise of the City's Finance Director. 10 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — DECEMBER 10, 2007 Councilmember Peirce stated he supports funding the Visitors and Conference Bureau $20,000 for this year. He said the Community Promotions Committee could also be very effective in promoting tourism in the City. Councilmember Winholtz stated she could support funding an additional $10,000 for this year with no obligation for future participation. Councilmember DeMeritt stated she supports funding an additional $10,000 with the Visitors and Conference Bureau this year; however, the City needs to consider future participation in July 2008. Mayor Peters stated she has concern with the comparison of other cities representation with the Visitors and Conference Bureau. She said she did recognize the benefit of the VCB in filming in the area. Mayor Peters stated she could support funding an additional $10,000 for this year, and have the VCB review the fair share formula based on the percentage the transient occupancy tax represents of each city's total General Fund revenue. ® MOTION: Councilmember Peirce moved the City Council direct staff to fund an additional $10,000 to the County Visitors and Conference Bureau and submit the initial $10,000 previously allocated by Council; and, direct staff to return with where the money was funded at the mid -year budget review. The motion was seconded by Councilmember DeMeritt and carried with Councilmember Grantham voting no. (4-1) B4 RECONSIDERATION OF CITY'S INVOLVEMENT IN THE BUSINESS IMPROVEMENT DISTRICT; (ADMINISTRATION) Interim City Manager Andrea Lueker stated in July 2006, the County Board of Supervisors adopted a resolution taking the first step toward setting up a countywide Business Improvement District (BID) as a mechanism to raise money from the hospitality industry for promotion and marketing. After approval at the County level, the discussion shifted to the local City Councils. The Visitors and Conference Bureau (VCB) requested the Morro Bay City Council adopt a resolution giving consent to include the City of Morro Bay within the County BID. At the November 13, 2006 City Council meeting, the Council adopted Resolution No. 58-06 which conditionally granted consent to the County to form the San Luis Obispo County Tourism Business Improvement District. Ms. Lueker recommended the City Council reconsider the consent given to the County of San Luis Obispo to form the San Luis Obispo County Tourism Business Improvement District. E ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — DECEMBER 10, 2007 Jonni Biaggini, Executive Director for the Visitors and Conference Bureau reviewed the benefits of participation in the County Business Improvement District. She said the Resolution of Intention to form the Business Improvement District is scheduled for the January 29, 2008 Board of Supervisors meeting. Mayor Peters opened the hearing for public comment. Ed Biaggini stated transient occupancy tax is collected for the City's General Fund, and the Business Improvement District is where the businesses assess themselves. He said a petition was submitted last year in support of the Business Improvement District. Joan Solu expressed support for the Business Improvement District that will benefit the hospitality businesses in the City. Mayor Peters closed the public comment hearing. Mayor Peters stated a letter should be sent to the local businesses regarding the proposed Business Improvement District and comment prior to the next meeting. ® Councilmember Grantham stated he supports polling the businesses for their input. El Councilmember DeMeritt stated she supports increasing the transient occupancy tax that stays in the City that benefits the City's Community Promotions Committee and Visitors Center. Councilmember Peirce stated he would support a Business Improvement District if supported by the local businesses. Councilmember Winholtz stated a new survey of businesses should be performed. MOTION: Mayor Peters moved the City Council direct the Interim City Manager to send a letter to the local hotels and motels explaining the_curent situation and asking if they have a desire to rescind the resolution and to respond by January 5, 2008. The motion was seconded by Councilmember Peirce and carried with Councilmember DeMeritt voting no. (4-1) 12 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — DECEMBER 10, 2007 C. UNFINISHED BUSINESS C-1 AUTHORIZATION FOR STAFF TO NEGOTIATE AND ENTER INTO AN AGREEMENT FOR AN ORGANIZATIONAL ANALYSIS OF THE CITY STRUCTURE; (CITY ATTORNEY) City Attorney Robert Schultz stated the City Council requested a study be done that identifies opportunities for improvement at various levels within the City's organization. The scope of such a study would include an examination of processes and procedures, effectiveness and efficiency of service delivery, organizational design and staffing levels as well as other resources currently provided. At the November 13; 2007 meeting, the City Council reviewed the four proposals received for doing an organizational analysis and narrowed the selection to two proposals. Mr. Schultz recommended the City Council review the two remaining proposals, choose a firm, and authorize staff to negotiate and enter into an agreement to perform an organizational analysis of the City structure. Councilmember DeMeritt, Councilmember Peirce, Councilmember Winholtz and Mayor Peters agreed to choose Management Partners to perform an organizational analysis of the City structure ® Councilmember Grantham chose Springsted, Inc. 2 MOTION: Councilmember Peirce moved the City Council direct staff to enter into an agreement with Management Partners to perform an organizational analysis of the City structure at their reduced price of $68,800 with a 101/6 contingency. The motion was seconded by Councilmember Winholtz and carried with Councilmember Grantham voting no. (4-1) D. NEW BUSINESS D-1 PROPOSAL TO AUTHORIZE STAFF TO NEGOTIATE AN AGREEMENT WITH A WEB DEVELOPMENT COMPANY TO UPDATE AND PROVIDE A NEW WEBSITE FOR THE CITY; (CITY COUNCIL) Councilmember DeMeritt stated the City's website does not compare favorably with other municipal websites in the County or statewide. She noted the City needs to upgrade to remain competitive and to provide a professional and polished appearance. Councilmember DeMeritt stated the City should also provide a website that improves usability for residents of Morro Bay. She said new technology has made it possible to make websites that are internally easier to update. Councilmember DeMeritt recommended the City Council review the report provided and authorize staff to contract with a web development company to develop a new City website. 13 E MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — DECEMBER 10, 2007 MOTION: Councilmember DeMeritt moved the City Council authorize staff to send out a Request for Proposal to web development companies in order to provide a new website for the City. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) D-2 REQUEST TO SOLE SOURCE AFIRE ENGINE REPLACEMENT; (FIRE) Fire Chief Mike Pond requested the City Council consider authorization to bypass the bid process and enter into a contract with Pierce Manufacturing to purchase a new fire engine. He said the fire engines produced by Pierce Manufacturing are unique, and therefore, only available from one vendor. Chief Pond stated the adopted 2007/2008 budget includes Measure Q funding intended for the purchase of a new fire engine which will replace a twenty-four year old engine in the departments aging fleet. Chief Pond recommended the City Council authorize the sole source purchase of a 1,500 gpm Type I fire engine from Pierce Manufacturing in an amount not to exceed $445,000. MOTION: Councilmember Grantham moved the City Council authorize the sole source purchase of a 1,500 gpm Type I fire engine from Pierce Manufacturing in an amount not to exceed $445,000. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) D-3 AUTHORIZATION FOR FUNDING TO DEFEND LAWSUIT ENTITLED LINKER & PATTERSON VS. CITY OF MORRO BAY; (CITY ATTORNEY) City Attorney Robert Schultz stated a lawsuit was recently filed against the City in regard to the City's denial of application for a subdivision lot split at 735 Cabrillo Place in Morro Bay. The two plaintiffs were the applicants and are the property owners of 735 Cabrillo Place in Morro Bay. The City tendered the lawsuit to our insurance carrier, California Joint Powers Insurance Authority (CJPIA). The CJPIA has determined that the lawsuit does not trigger any potential for covered liability within the Memorandum of Coverages, and therefore will not afford coverage for this case. Mr. Schultz recommended the City Council authorize $7,500 out of the Risk Management Fund to fund the defense of the aforementioned lawsuit. MOTION: Councilmember Grantham moved the City Council authorize $7,500 out of the Risk Management Fund to fund the defense of the Linker & Patterson vs. City of Morro Bay lawsuit. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) 14 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — DECEMBER 10, 2007 ADJOURNMENT The meeting adjourned at 10:47 p.m. Recorded by: Bridgett Bauer City Clerk 15 City of Morro Bay '.'6 F�Morro Bay, CA 93442 (k5) 772-6200 P CITY OF MORRO BAY CITY COUNCIL NOTICE OF CANCELED MEETING THE REGULAR CITY COUNCIL MEETING SCHEDULED FOR MONDAY, NOVEMBER 26, 2007 HAS BEEN CANCELED The next regularly scheduled meeting will be held on Monday, December 10, 2007, 6:00 p.m., Veterans Hall. FINANCE ADMINISTRATION 595 Harbor Street 595 Harbor Street HARBOR DEPT. 1275 Embarcadero Road CITY ATTORNEY 955 Shasta Avenue FIRE DEPT. PUBLIC SERVICES 715 Harbor Street 955 Shasta Avenue POLICE DEPT. RECREATION & PARKS 970 Morro Bav Boulevard 1001 Kennedv Wav ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — NOVEMBER 13, 2007 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Peters called the meeting to order at 6:00 p.m PRESENT: Janice Peters Mayor Melody DeMeritt Councilmember Rick Grantham Councilmember William Peirce Councilmember Betty Winholtz Councilmember STAFF: Andrea Lueker Robert Schultz Jamie Boucher Janeen Burlingame John DeRohan Bruce Keogh Steve Knuckles Rob Livick Susan Slayton Dylan Wade ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR'S REPORTS & ANNOUNCEMENTS Interim City Manager City Attorney Deputy City Clerk Management Analyst Police Chief Wastewater Division Manager Fire Captain Engineer Finance Director Senior Civil Engineer 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 would be held on Wednesday, November 21, 2007 at the Community Center.. He said Dial -A -Ride would provide rides and dinners would be delivered to those who are homebound. Mr. Roth also announced the dates of the Caroling Cop Cars. Keith Taylor announced the groundbreaking of the new fire station would be held on November 18, 2007 along with the Public Safety Open House. Ariane Leiter, President of the Firefighters Association, thanked Council for their consideration of Item D-2 (Discussion on the Formation of a Committee to Investigate Contracting with Cal Fire), and read a letter from the Association regarding fire rescue services in the City. u ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — NOVEMBER 13, 2007 The following people expressed support for the Morro Bay Police Department, and noted the officers are still the lowest paid in the County even with a 3% salary increase: Mel Bernisey, Claire Grantham, Garry Johnson, Paul Chapman, Ken Vesterfelt, and Dan Reddell. Mel Bernisey stated the Dial -A -Ride buses are handicap -accessible. Liz Reeve, President of the Morro Bay Garden Club announced the Holiday Home Tour would be held on December 9, 2007; proceeds are going towards an effort to provide a scholarship for a Morro Bay High School graduate to study horticulture and agriculture. Patrick Manning expressed opposition to the proposed project at 485-495 South Bay Boulevard stating it will impact both the gateway to the estuary and what makes Morro Bay a small safe town. Claire Grantham requested Council consider some revenue generating ideas to support the City's economy. ® Garry Johnson stated Morro Bay Beautiful picked up 300 pounds of trash where the snowy plover protective fencing was removed. He also expressed the need for more recycling bins around the City. n David Nelson referred to the Ocean Protection Council Report and discussed the renovation of the power plant and its cooling towers. Ken Vesterfelt requested the City's financial status be reviewed at an upcoming Council meeting for public information. He also noted eucalyptus trees are a nuisance that can cause property damage. Grant Crowl expressed concern with the Planning Commission approval of a thud floor roof deck at 2764 Alder Avenue, which will be over bulk and scale. Tom Laurie stated there is a morale. problem within the City's employees and Council should consider a pay increase for all employees. He said it is absurd to hire a consultant to perform a study on City restructuring. Jim Nance stated the City is in financial crisis and should first consider the City's infrastructure and then consider salary increases for its public safety employees. 4 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — NOVEMBER 13, 2007 John Barta announced the Morro Bay Merchant's Holiday Street Faire would be held on November 25, 2007. He said the money made from this faire is used on advertising for the business community in Morro Bay. Mr. Barta referred to Item D-I (Consideration of an Upgrade to the New World Systems Financial Software) and noted it is. time for the City to look at other alternatives. Jan (no last name) announced the Maxine Lewis Homeless Shelter fundraiser would be held on December 8, 2007, and encouraged participation in this fundraiser at the South Bay Community Center. Richard Margetson stated the Maxine Lewis Homeless Shelter fundraiser is completely based on donations. He said a DVD would be run on Channel 20 relating to the homeless situation in the County. Bill Black stated there are too many parks in the City, and he would prefer more police officers than paying to maintain these parks. ® Mayor Peters closed the hearing for public comment. Mayor Peters called for a break at 7:00 p.m.; the meeting resumed at 7:10 p.m. DECLARATION OF FUTURE AGENDA ITEMS Mayor Peters requested to agendize a discussion on low-income assistance on wastewater treatment user rates; Councilmember DeMeritt and Councilmember Peirce concurred. Councilmember Winholtz requested a status report on the AGP contract and discussion on providing web streaming of Council meetings; Councilmember Peirce and Mayor Peters concurred. Councilmember Peirce requested to agendize a discussion on charging utility companies a fee when a hazardous condition is not mitigated and City staff responds to emergency calls; Councilmember DeMeritt and Mayor Peters concurred. Councilmember Grantham requested to agendize a discussion on a utility user tax as a revenue source; Councilmember Peirce and Councilmember Winholtz concurred. Councilmember Grantham requested to agendize a discussion on a Public Safety Assessment District; Councilmember Winholtz concurred. iJ ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — NOVEMBER 13, 2007 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 THE MINUTES OF THE OCTOBER 22, 2007 CITY COUNCIL MEETING; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 FINANCIAL STATUS AND CASH & INVESTMENT REPORTS; (FINANCE) RECOMMENDATION: Receive report for information. A-3 RESOLUTION NO. 58-07 ADOPTING THE MEMORANDUM OF UNDERSTANDING WITH THE SEIU UNIT AND RELATED COMPENSATION; (ADMINISTRATION) ® RECOMMENDATION: Adopt Resolution No. 58-07. r� U A4 RESOLUTION NO. 59-07 ADOPTING THE MEMORANDUM OF UNDERSTANDING WITH THE POLICE OFFICERS ASSOCIATION AND RELATED COMPENSATION; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 59-07. A-5 RESOLUTION NO. 56-07 AUTHORIZING SUBMISSION OF PROPOSITION IB TRANSIT GRANT APPLICATIONS; AND RESOLUTION NO. 57-07 AUTHORIZING SUBMISSION OF RURAL TRANSIT FUND GRANT APPLICATIONS; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution Nos. 56-07 and 57-07. A-6 ALLOCATION OF FUNDS FOR THE NORTH MAIN STREET TRUNK LINE REPAHUREPLACEMENT PROJECT; (PUBLIC SERVICES) RECOMMENDATION: Allocate $30,000 from unallocated sewer fund reserves for the further condition assessment of existing facilities; flow modeling and monitoring; and, preliminary engineering efforts for the repair or replacement of the North Main Street jointly owned trunk line. 3 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — NOVEMBER 13, 2007 A-7 ORDINANCE NO. 534 ADOPTING THE 2007 CALIFORNIA BUILDING CODE INCLUDING THE PLUMBING, ELECTRICAL, MECHANICAL, ENERGY AND FIRE CODES AND OTHERS PROPERLY RELATED THERETO - SECOND READING/ADOPTION; (PUBLIC SERVICES) RECOMMENDATION: Adopt Ordinance No. 534. Councilmember Winholtz pulled Items A-2, A-5 and A-6 on the Consent Calendar. MOTION: Councilmember Winholtz moved the City Council approve the Consent Calendar with the exception of Items A-2, A-5 and A-6. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) A-2 FINANCIAL STATUS AND CASH & INVESTMENT REPORTS; (FINANCE) Councilmember Winholtz requested clarification on the Financial Status and Cash & Investment reports. ® Councilmember DeMeritt also requested clarification on these reports, noting she would like to see more information that would provide the City's bottom line. Mayor Peters stated she would like to see a more concise and clear report that would be easier for Council and the public to understand. MOTION: Councilmember Winholtz moved the City Council continue this item until Council Members have met with the Finance Director, and return to Council utilizing a format agreeable by Council. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) A-5 RESOLUTION NO. 56-07 AUTHORIZING SUBMISSION OF PROPOSITION 1B TRANSIT GRANT APPLICATIONS; AND RESOLUTION NO. 57-07 AUTHORIZING SUBMISSION OF RURAL TRANSIT FUND GRANT APPLICATIONS; (ADMINISTRATION) Councilmember Winholtz asked if the items in this report had been prioritized. Management Analyst Janeen Burlingame responded the items are not prioritized, and are listed in two different funding years. 2 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — NOVEMBER 13, 2007 MOTION: Councilmember Winholtz moved the City Council approve Item A-5 of the Consent Calendar. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) A-6 ALLOCATION OF FUNDS FOR THE NORTH MAIN STREET TRUNK LINE REPAUVREPLACEMENT PROJECT; (PUBLIC SERVICES) Councilmember Winholtz asked why this item was not considered at the JPA meeting. Senior Civil Engineer Dylan Wade stated some of the work has been done jointly with the IPA, and this is a due diligent process for the Morro Bay portion of the project. Councilmember Winholtz stated for economical and political reasons she would prefer to have two different lines down the same street. MOTION: Councilmember Peirce moved the City Council approve Item A-6 of the Consent Calendar. The motion was seconded by Councilmember Grantham and carried with Councilmember Winholtz voting no. (4-1) 0 B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 CONTINUED PUBLIC HEARING ON A SIX -LOT SUBDIVISION AT CORAL AVENUE AND SAN JACINTO STREET; (PUBLIC SERVICES) Associate Planner Rachel Grossman stated on September 10, 2007, the City Council held a public hearing to consider the applicant's appeal of the Planning Commission's denial of a six -lot subdivision at 2783 Coral Avenue. After consideration of the appeal, the City Council made a motion to uphold the appeal and approve the requested six -lot subdivision at 2783 Coral Avenue, with additional conditions of approval. The additional conditions of approval include a maximum height limit of the residential units shall be limited to 14-feet, the trees along San Jacinto Street shall be protected, and the lot configuration shall be consistent with plan'design number five. Based on direction from the City Council, the applicant redesigned the six -lot subdivision to reflect the lot configuration depicted in plan design five. The applicant resubmitted the revised lot configuration and staff found the revised submittal is not consistent with the Subdivision Ordinance, and would require a variance in order to be approved. The original six -lot configuration is- consistent with all Subdivision Ordinance requirements and with recommended conditions of approval, can be found consistent with the Local Coastal Plan, and would not have a significant impact on the environment. Ms. Grossman recommended the City Council reconsider the six -lot configuration previously presented with inclusion of conditions of approval relative to maximum residential unit height and ® tree removal. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING—NOVEMBER 13, 2007 Mayor Peters opened the hearing for public comment. Robert Shriver stated eucalyptus trees are not urban forest trees. He said these trees have weak branch attachment and shallow roots that can easily cause property damage in i heavy wind. Mr. Shriver stated this type of tree is a nuisance and should be removed wherever construction will take place. David Nelson expressed support for a five -lot subdivision that matches the housing in the Cloisters Subdivision. Mayor Peters closed the public comment hearing. Councilmember Grantham stated some of the trees on this property are already dead and others are causing root damage to other properties. He said a six -lot subdivision would be better for the City. Councilmember Winholtz stated she supports a six -lot subdivision. She said eucalyptus trees could be cropped or trimmed rather than removing them. Councilmember DeMeritt stated there should be a deed restriction on the property requiring Council approval prior to a tree removal. She said she supports a six -lot subdivision. Councilmember Peirce stated he supports placing a deed restriction requiring Council approval prior to a tree removal. He also supports a six -lot subdivision. Mayor Peters stated she also supports a six -lot subdivision, and a deed restriction requiring Council approval for the removal of the trees. MOTION: Councilmember Peirce moved the City Council approve the original configuration of a six -lot subdivision with a 14-foot height limit; and, place a deed restriction on the property requiring Council approval prior to a tree removal on San Jacinto Street. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) Mayor Peters called for a break at 8:10 p.m.; the meeting resumed at 8:20 p.m. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING.—NOVEMBER 13, 2007 B-2 PUBLIC HEARING FOR ADOPTION OF RESOLUTION NO. 55-07 . INCREASING WASTEWATER USER FEES; (PUBLIC SERVICES) Senior Civil Engineer Dylan Wade stated at the August 13, 2007 City Council meeting, Council adopted the Draft Revenue Program prepared by Carollo Engineers. At this meeting, Council was presented with five scenarios for increasing wastewater user fees. After discussion and deliberation on this matter, Council directed staff to set a public hearing for the adoption of a new wastewater user fee schedule. The Council voted to select the rate increase scenario that would raise user fees for both residential and non- residential customers 50% on July 1, 2008 with an annual 1% rate adjustment and an annual 7.25% rate adjustment for residential non-residential sewer rates, respectively. The proposed rate increases are necessary to finance the wastewater treatment plant upgrade project contained in the Facility Master Plan to tertiary treatment standards. In addition, the revenue generated would be used for collection system capital improvements identified in the 2006 Sewer Collections System Master Plan. W. Wade recommended the City Council conduct a public hearing, and approves Resolution No.55-07 adopting a 500/a wastewater user fee increase. ® Mayor Peters opened the hearing for public comment. u Jim Nance asked how people on fixed and low -incomes are going to be able to afford the proposed rate increase. He also requested the City aggressively pursue grants to help offset the payer rates. Judy Brown stated citizens were not aware of the importance of the Proposition 218 notice, and would like clarification prior to the wastewater rate increase. Marley Turner stated she would be receiving an increase in her income from social security that will be less than 3%, and with the proposed 50% increase in wastewater user fees will equate to her taking a cut in pay. John Barta expressed concern with the City's approval for a tertiary treatment upgrade that was not required by law, which has caused a bigger increase in wastewater user fees than necessary. Nancy Bast stated past wastewater user fees was supposed to have been saved for future wastewater treatment plant upgrades and requested clarification on where these fees have gone. She said the City should borrow money for the upgrade because the current residents should not bare the burden of future residents. Ms. Bast also noted an alternative water source for landscaping would be ideal in order to lower water rates. 10 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —NOVEMBER 13, 2007 Michael Durrick stated communications about rate increases to the public should be consistent. He also said single-family condominiums should receive the same amount of water allocation as single-family and multi -family units. Mr. Durrick stated residential users should have lower rates than commercial users; and, there should be an incentive for those that conserve and use less water. Donald Rapucchi requested clarification on federal funding for the wastewater treatment plant upgrade, and also the process of the Proposition 218 mailers and why they were not included in the water bills. David Nelson stated the upgrade to the treatment plant is timely, and the City should look for federal funding to support the cost. He'said 6,000 houses should not bear the cost of this upgrade to keep the estuary clean. Lanny McKay expressed his support for the upgrade and the fees assessed. Susan Mullen expressed concern for those on fixed and low incomes and how they will ® be able to afford the proposed increase. She requested the City consider a volume -based rate or dedicate funds from the General Fund to assist these people. Ms. Mullen stated she supports tertiary treatment and water reclamation. She said more public information was required for such a high increase in fees. r Mayor Peters closed the public comment hearing Councilmember DeMeritt stated she supports a rate increase of 50% now and 3% later that would equate to $40.62 by 2014. She said in the meantime the City could apply for grants and the state might pass another bond that would support infrastructure. Councilmember Grantham stated he supports staff s recommendation. Councilmember Peirce stated he would like to pursue federal funding and low-income subsidies. He said the sewer system needs to be upgraded and he supports staff recommendation. Councilmember Winholtz stated this increase is not for the sewer plant but for the infrastructure only. She said all the repairs do not need to be made immediately, and the proposed rate would over -burden rate payers too soon. Councilmember Winholtz stated she would like to set $36.00 as a goal. 11 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — NOVEMBER 13, 2007 Mayor Peters stated the reason for raising the fees as recommended is to provide enough money to repair the infrastructure. She said it would not be fiscally responsible to finance these costs. MOTION: Councilmember DeMeritt moved the City Council adopt Resolution No. 55-07 adopting a wastewater use fee increase with a change in Section 4 that the 5% increase be changed to a 3% annual increase. The motion was seconded by Mayor Peters. Mayor Peters stated her concern with the 3% increase is that it would not be enough and Council would have to increase the fees in the near future. Councilmember Winholtz stated it makes sense to borrow money for such a large investment that would be paid for through the years. Councilmember DeMeritt stated she supports a fee increase of 50% now to get the money accumulated in order to begin repairs to the infrastructure, and then increase at 3% while ® seeking further funding through other resources. VOTE: The motion failed with Councilmember Grantham, Councilmember Peirce, Councilmember Winholtz and Mayor Peters voting no. (14) MOTION: Councilmember Grantham moved the City Council adopt Resolution No. 55-07 adopting a 50% wastewater user fee increase. The motion was seconded by Councilmember Peirce and carried with Councilmember DeMeritt and Councilmember Winholtz voting no. (3-2) C. UNFINISHED BUSINESS — NONE. D. NEW BUSINESS D-1 CONSIDERATION OF AN UPGRADE TO THE NEW WORLD SYSTEMS FINANCIAL SOFTWARE; (FINANCE) Finance Director Susan Slayton stated on May 13, 2002, Council adopted Resolution No. 29-02, which authorized the purchase of New World Systems financial product at a non - to -exceed price of $250,000 without knowing that the product was nearing the end of its useful life. The software has since been re -written for a Microsoft platform that greatly improves the functionality of the system. The company has agreed to supply the software to us at no cost with the understanding that we will commit to an 8-year maintenance ® agreement and allow them to promote Morro Bay as a demonstration site. Ms. Slayton 12 E MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — NOVEMBER 13, 2007 recommended the City Council discuss and approve the request to upgrade the existing financial software at a not -to -exceed cost of $175,000. MOTION: Councilmember Grantham moved the City Council approve the request to upgrade the existing financial software at a not -to -exceed cost of $175,000 with the cost coming solely from the General Fund. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) D-2 DISCUSSION ON THE FORMATION OF A COMMITTEE TO INVESTIGATE CONTRACTING WITH CAL FIRE; (FIRE) Fire Captain Steve Knuckles stated the Morro Bay Fire Fighters Association (MBFFA) would like to partner with the City and jointly research the benefits of a Cal Fire contract through the establishment of an ad -hoc committee. Captain Knuckles stated the department recognizes there may be potential economies and efficiencies that a regional fire service could deliver. He said it seems prudent to investigate options with Cal Fire in conjunction with current reorganization consideration, and recommended Council provide direction regarding the formation of a committee to investigate contracting with Cal Fire. MOTION: Councilmember Winholtz moved the City Council authorize staff to form a committee with the addition of Councilmember DeMeritt and Councilmember Peirce to investigate contracting with Cal Fire, and report back to the City Council within six months. The motion was seconded by Mayor Peters and carried unanimously. (5-0) D-3 DISCUSSION ON A MANAGEMENT STUDY AND CITY RESTRUCTURING; (CITY ATTORNEY) City Attorney Robert Schultz stated based upon previous discussions, it was his understanding that Council would like to see a study done that identifies opportunities for improvement at various levels within the City of Morro Bay organization. The scope of such a study would include an examination of processes and procedures, effectiveness and efficiency of service delivery, organizational design and staffing levels as well as other resources currently provided. The study is intended to provide a top -down review to guide and prioritize organizational improvement efforts. Mr. Schultz presented four proposals received, and recommended the City Council choose a firm, and authorize staff to negotiate and enter into an Agreement to perform an Organizational Analysis of the City structure. 13 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —NOVEMBER 13, 2007 The City Council requested staff obtain information on references; the number of hours it would take to provide this study; estimated costs; and, how long would it take for Management Partners to come up to speed with business in California cities. MOTION: Councilmember Peirce moved the City Council direct staff to contact Springsted, Incorporated and Management Partners, Incorporated and obtain information as outlined by Council, and return to Council with this information at the December 10, 2007 City Council meeting. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) ADJOURNMENT The meeting adjourned at 10:40 p.m. Recorded by: /1 Jamie Boucher Deputy City Clerk E 14 ® City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING — NOVEMBER 13, 2007 CLOSED SESSION — NOVEMBER 13, 2007 CITY HALL CONFERENCE ROOM - 4:00 P.M. 595 HARBOR ST., MORRO BAY, CA CS-1 GOVERNMENT CODE SECTION 54956.9(Cl: CONFERENCE WITH LEGAL COUNSEL DUE TO ANTICIPATED LITIGATION: Initiation of litigation exists based upon existing facts and the advice of legal counsel as to two ® (2) matters. 11 • Parties: City of Morro Bay and LAFCO Issue: Determining whether to file for Reconsideration related to the LAFCO Decision of the City's SOI. • Parties: City of Morro Bay and IRS Issue: Determining whether to Appeal Audit determination. CS-2 GOVERNMENT CODE SECTION 54956.8; REAL PROPERTY TRANSACTIONS: Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property as to two (2) parcels. • Property: Embarcadero/Market. Negotiating Parties: Market Pavilion and City of Morro Bay. Negotiations: Voluntary Purchase and Sale. Property: Morro Bay Dunes. Negotiating Parties: Doug Claassen and City of Morro Bay. Negotiations: Lease Terms and Conditions. CS-3 GOVERNMENT CODE SECTION 54957: PERSONNEL ISSUES: Discussions regarding Personnel Issues including one (1) public employee ® regarding appointment, specifically the City Manager. CS-4 GOVERNMENT CODE SECTION 54957.6; CONFERENCE WITH LABOR NEGOTIATOR: Conference with City Attorney, the City's Designated Representative, for the purpose of reviewing the City's position regarding the terms and compensation paid to the City Manager and giving instructions to the Designated Representative. CS-5 GOVERNMENT CODE SECTION 54957, PERSONNEL ISSUES: Discussions regarding Personnel Issues including two (2) public employees regarding evaluation, specifically the City Attorney and Interim City Manager. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. 11 PUBLIC SESSION - NOVEMBER 13, 2007 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 COUNCn.MEMBERS 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 THE MINUTES OF THE OCTOBER 22, 2007 CITY COUNCIL MEETING; (ADMINISTRATION) ® RECOMMENDATION: Approve as submitted. A-2 FINANCIAL STATUS AND CASH & INVESTMENT REPORTS; (FINANCE) RECOMMENDATION: Receive report for information. A-3 RESOLUTION NO. 58-07 ADOPTING THE MEMORANDUM OF UNDERSTANDING WITH THE SEW UNIT , AND RELATED COMPENSATION; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 58-07. A4 RESOLUTION NO. 59-07 ADOPTING THE MEMORANDUM OF UNDERSTANDING WITH THE POLICE OFFICERS ASSOCIATION AND RELATED COMPENSATION; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 59-07. A-5 RESOLUTION NO. 56-07 AUTHORIZING SUBMISSION OF PROPOSITION III TRANSIT GRANT APPLICATIONS; AND RESOLUTION NO. 57-07 AUTHORIZING SUBMISSION OF RURAL TRANSIT FUND GRANT ® APPLICATIONS; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution Nos. 56-07 and 57-07. A-6 ALLOCATION OF FUNDS FOR THE NORTH MAIN STREET TRUNK LINE REPAIR/REPLACEMENT PROJECT; (PUBLIC SERVICES) RECOMMENDATION: Allocate $30,000 from unallocated sewer fund reserves for the further condition assessment of existing facilities; flow modeling and monitoring; and, preliminary engineering efforts for the repair or replacement of the North Main Street jointly owned trunk line. A-7 ORDINANCE NO. 534 ADOPTING THE 2007 CALIFORNIA BUILDING CODE INCLUDING THE PLUMBING, ELECTRICAL, MECHANICAL, ENERGY AND FIRE CODES AND OTHERS PROPERLY RELATED THERETO - SECOND READING/ADOPTION; (PUBLIC SERVICES) RECOMMENDATION: Adopt Ordinance No. 534. B. PUBLIC HEARINGS REPORTS & APPEARANCES B-I CONTINUED PUBLIC HEARING ON A SIX -LOT SUBDIVISION AT ® CORAL AVENUE AND SAN JACINTO STREET; (PUBLIC SERVICES) RECOMMENDATION: Approve the lot configuration originally presented to the City Council at their regular meeting held on September 10, 2007. 4 B-2 PUBLIC HEARING FOR ADOPTION OF RESOLUTION NO. 55-07 ® INCREASING WASTEWATER USER FEES; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 55-07. C. UNFINISHED BUSINESS — NONE. D. NEW BUSINESS D-I CONSIDERATION OF AN UPGRADE TO THE NEW WORLD SYSTEMS FINANCIAL SOFTWARE; (FINANCE) RECOMMENDATION: Discuss and approve the request to upgrade the existing financial software at a not -to -exceed cost of $175,000. D-2 DISCUSSION ON THE FORMATION OF. A COMMITTEE TO INVESTIGATE CONTRACTING WITH CAL FIRE; (FIRE) RECOMMENDATION: Discuss and direct staff accordingly. D-3 DISCUSSION ON A MANAGEMENT STUDY AND CITY RESTRUCTURING; (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. 5 ® MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION —NOVEMBER 13, 2007 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 Melody DeMeritt Rick Grantham William Peirce Betty Winholti Andrea Lueker Robert Schultz Councilmember Councilmember Councilmember Councilmember Interim City Manager City Attorney MOTION: Councilmember Peirce moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Grantham and unanimously carried. (5-0) Mayor Peters read the Closed Session Statement. ® CS-1 GOVERNMENT CODE SECTION 54956.9(C): CONFERENCE WITH LEGAL COUNSEL DUE TO ANTICIPATED LITIGATION: Initiation of litigation exists based upon existing facts and the advice of legal counsel as to two (2) matters. • Parties: City of Morro Bay and LAFCO Issue: Determining whether to file for Reconsideration related to the LAFCO Decision of the City's SOI. CS-2 E • Parties: City of Morro Bay and IRS Issue: Determining whether to Appeal Audit determination. TRANSACTIONS: Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property as to two (2) parcels. Property: Embarcadero/Market. Negotiating Parties: Market Pavilion and City of Morro Bay. Negotiations: Voluntary Purchase and Sale. • Property: Morro Bay Dunes. Negotiating Parties: Doug Claassen and City of Morro Bay. Negotiations: Lease Terms and Conditions. ® CS-3 GOVERNMENT CODE SECTION 54957; PERSONNEL ISSUES: Discussions regarding Personnel Issues including one (1) public employee regarding appointment, specifically the City Manager. CS-4 GOVERNMENT CODE SECTION 54957.6; CONFERENCE WITH LABOR NEGOTIATOR: Conference with City Attorney, the City's Designated Representative, for the purpose of reviewing the City's position regarding the terms and compensation paid to the City Manager and giving instructions to the Designated Representative. CS-5 GOVERNMENT CODE SECTION 54957; PERSONNEL ISSUES: Discussions regarding Personnel Issues including two (2) public employees regarding evaluation, specifically the City Attorney and Interim City Manager. The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:55 p.m. MOTION: Councilmember DeMeritt 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. E J ® 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 22, 2007 CLOSED SESSION — OCTOBER 22, 2007 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. Personnel discussions regarding the appointment of one (1) public employee, specifically the City Manager. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. ® PUBLIC SESSION — OCTOBER 22, 2007 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 COUNCILMFMBERS 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 reasonablearrangements 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. El u E A-] APPROVAL OF MINUTES FOR THE SEPTEMBER 24, 2007 AND OCTOBER 8, 2007 CITY COUNCIL MEETINGS; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 AWARD OF CONTRACT FOR FIRE STATION 53 APPARATUS BAY REPLACEMENT PROJECT; (PUBLIC SERVICES) RECOMMENDATION: Award the project contract to Specialty Construction, Inc. in the amount of $1,685,000. A-3' RESOLUTION NO. 54-07 ACCEPTING ROBERT HENDRIX'S RESIGNATION AS CITY MANAGER AND APPROVING APPOINTMENT OF ANDREA LUEKER AS INTERIM CITY MANAGER; (CITY ATTORNEY) RECOMMENDATION: Adopt Resolution No. 54-07. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 CONTINUED PUBLIC HEARING ON A BED AND BREAKFAST/M XED- USE PROJECT LOCATED AT 214 BEACH STREET; (PUBLIC SERVICES) RECOMMENDATION: Continue to a date uncertain. B-2 APPEAL OF THE PLANNING COMMISSIONS APPROVAL OF A CELL SITE AT 545 SHASTA AVENUE; (PUBLIC SERVICES) RECOMMENDATION: Deny the appeal and uphold the Planning Commission's approval of a wireless telecommunications facility at 545 Shasta Avenue. B-3 ORDINANCE NO. 534 ADOPTING THE 2007 CALIFORNIA BUILDING CODE INCLUDING THE PLUMBING, ELECTRICAL, MECHANICAL, ENERGY AND FIRE CODES AND OTHERS PROPERLY RELATED THERETO - FIRST READING/INTRODUCTION; (CITY ATTORNEY) RECOMMENDATION: Approve first reading and introduction of Ordinance No. 534. 9 ® B-4 EXTENSION OF AN INTERIM URGENCY ORDINANCE MODIFYING THE DEVELOPMENT REVIEW FOR PARCELS IN THE R-1 DISTRICTS ZONE THAT EXCEED 2,500 SQUARE FEET PENDING COMPLETION OF STUDIES AND THE PREPARATION OF AN UPDATE TO THE CITY'S ZONING CODE; (CITY ATTORNEY) l RECOMMENDATION: Adopt Interim Urgency Ordinance No. 535. C. UNFINISHED BUSINESS — NONE. D. NEW BUSINESS D-1 AUTHORIZATION FOR STAFF TO ENTER INTO AN AGREEMENT FOR EXECUTIVE RECRUITMENT SERVICES WITH AVERY AND ASSOCIATES INAN AMOUNT NOT TO EXCEED $24,600; (CITY ATTORNEY) RECOMMENDATION: Authorize staff to enter into an agreement with Avery and Associates to conduct an executive search for City Manager in an amount not to exceed $24,000. 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 22, 2007 CITY HALL CONFERENCE ROOM - 5:00 P.M. C Mayor Peters called the meeting to order at 5:00 p.m PRESENT: Janice Peters Mayor Melody DeMeritt Councilmember Rick Grantham Councilmember William Peirce Councilmember Betty Winholtz Councilmember STAFF: Andrea Lueker Acting City Manager Robert Schultz City Attorney CLOSED SESSION MOTION: Councilmember Winholtz moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember DeMeritt 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. CS-2 GOVERNMENT CODE SECTION 54957, PERSONNEL ISSUES. Personnel discussions regarding the appointment of one (1) public employee, specifically the City Manager. The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:50 p.m. MOTION: Councilmember DeMeritt 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. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 22, 2007 VETERANS MEMORIAL HALL - 6:00 P.M. C� Mayor Peters called the meeting to order at 6:00 p.m PRESENT: Janice Peters . Mayor Melody DeMeritt Councilmember Rick Grantham Councilmember William Peirce Councilmember Betty Winholtz Councilmember STAFF: Andrea Lueker Robert Schultz Bridgett Bauer Rick Algert Bruce Ambo Bill Boucher John DeRohan Dan Doris Rob Livick Mike Pond Mike Prater Susan Slayton ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE Acting City Manager City Attorney City Clerk Harbor Director Public Services Director Capital Projects Manager Police Chief Building Official City Engineer Fire Chief Planning 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 took the following action on Item CS-1: Council reached a tentative agreement with the SEIU Unit and Peace Officer Association, and awaits the execution of the agreements and approval at the next City Council meeting; and Item CS-2, Council discussed the City Manager position. PUBLIC COMMENT Marla Jo Bruton presented slides of problematic sewer lines in the City. Richard Sadowski also reviewed slides of problematic sewer lines in the City. Keith Taylor announced a Public Safety Open House would be held on November 18'h at City Park. 2 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 22, 2007 The following people expressed concern with the present state of the Morro Bay Police Department, and requested Council compensate its Police Officer's with a competitive salary: Jack Barrett, Bill Black, Mick Theis, Ken Vesterfelt, Bryan Millard, Doug Riddell, Dan Reddell, Dale Reddell, Claire Grantham, Dan Costley, Garry Johnson, and Lanny McKay. Paul McGill announced his cab business "Surf Cab" is planning on doing business in the City. Roger Ewing stated the Police Department has received new cars and equipment, and because of these costs there are no funds to maintain the officers we have or hire new police officers. Mayor Peters closed the hearing for public comment. Mayor Peters called for a break at 7:00 p.m.; the meeting resumed at 7:10 p.m. DECLARATION OF FUTURE AGENDA ITEMS ® Mayor Peters requested to agendize a discussion on the formation of a committee to investigate contracting with Cal Fire; Councilmember DeMeritt and Councilmember .Peirce concurred. Mayor Peters requested to agendize discussion on City restructure; Councilmember DeMeritt and Councilmember Peirce concurred. Councilmember Winholtz requested to agendize a discussion on the annexation of the portions of the bay and beaches that are a part of the City's sphere of influence (January); Mayor Peters and Councilmember DeMeritt concurred. Councilmember Winholtz requested to agendize a discussion on the removal of the proposed roundabout project at San Jacinto and Highway One from the work list; Councilmember DeMeritt and Councilmember Grantham concurred. Councilmember Winholtz requested to agendize a status report on the $400,000 funds for roadwork; Councilmember DeMeritt and Mayor Peters concurred. Councilmember Grantham requested to agendize a discussion on the planning permit fee for waterfront projects; Mayor Peters and Councilmember Winholtz concurred. 3 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING = OCTOBER 22, 2007 Councilmember Grantham requested to agendize a discussion on placing a ballot measure to increase the transient occupancy tax on the 2008 General Election ballot; Councilmember DeMeritt and Councilmember Peirce concurred. Councilmember Grantham requested to agendize a discussion on implementing parking meters; Councilmember Winholtz and Councilmember Peirce concurred. Councilmember Grantham requested to agendize the review of wireless telecommunications facility regulations; Mayor Peters and Councilmember DeMeritt concurred. Councilmember DeMeritt requested to agendize a presentation on the City website format (December); Councilmember DeMeritt and Councilmember Winholtz concurred. A._ CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are ® approved without discussion. A-1 APPROVAL OF MINUTES FOR THE SEPTEMBER 24, 2007 AND OCTOBER 8, 2007 CITY COUNCIL MEETINGS; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 AWARD OF CONTRACT FOR FIRE STATION 53 APPARATUS BAY REPLACEMENT PROJECT; (PUBLIC SERVICES) RECOMMENDATION: Award the project contract to Specialty Construction, Inc. in the amount of $1,685,000. A-3 RESOLUTION NO. 54-07 ACCEPTING ROBERT HENDRDCS RESIGNATION AS CITY MANAGER AND APPROVING APPOINTMENT OF ANDREA LUEKER AS INTERIM CITY MANAGER; (CITY ATTORNEY) RECOMMENDATION: - Adopt Resolution No. 54-07. Councilmember DeMeritt pulled Item A-2 from the Consent Calendar. MOTION: Councilmember DeMeritt moved the City Council approve Items A-1 and ® A-3 of the Consent Calendar. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 22, 2007 A-2 AWARD OF CONTRACT FOR FIRE STATION 53 APPARATUS BAY REPLACEMENT PROJECT; (PUBLIC SERVICES) Councilmember DeMeritt asked for information on Specialty Construction, Incorporated. Capital Projects Manager Bill Boucher reviewed past projects that were performed by this company. MOTION: Councilmember Peirce moved the City Council award the project to Specialty Construction, Incorporated in the amount of $1,685,000; and designate funds for Phase I and Phase II of this project from the proceeds of the sale of the Cloisters property. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 . CONTINUED PUBLIC HEARING ON A BED AND BREAKFAST/MDCED- USE PROJECT LOCATED AT 214 BEACH STREET; (PUBLIC SERVICES) ® MOTION: Mayor Peters moved the City Council continue the public hearing on a Bed and Breakfast/Mixed Use project located at 214 Beach Street to the December 10, 2007 City Council meeting. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) B-2 APPEAL OF THE PLANNING COMMISSIONS APPROVAL OF A CELL SITE AT 545 SHASTA AVENUE; (PUBLIC SERVICES) Planning Manager Mike Prater stated on August 20, 2007, the Planning Commission approved the applicant's request for Coastal Development Permit and Conditional Use Permit approvals for the erection of a wireless telecommunications facility at 545 Shasta Avenue. The approval was conditioned upon the applicant maintaining the height of the existing steeple and cross, and providing back up power in the event of a power failure. Ann Travers and Barbara Nordin appealed the Planning Commission's approval of the wireless telecommunications site based on potential health implications of wireless telecommunications facilities, and requested a moratorium be placed until appropriate regulations are included in the Municipal Code to guide the placement of wireless telecommunications facilities. Mr. Prater recommended the City Council deny the appeal and uphold the Planning Commission's approval of a wireless telecommunications facility at 545 Shasta Avenue. ® Tricia Knight, agent for Sprint/Nextel and applicant, stated she is available for questions from the City Council. 5 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 22, 2007 E Ann Travers, appellant, stated a moratorium should be put into place until appropriate regulations are included in the City's municipal code to guide the placement of wireless telecommunications facilities. Ms. Travers also expressed concern with the potential health implications of wireless telecommunications facilities in residential zones. Mayor Peters opened the hearing for public comment. The following people expressed support for the appellant noting the potential health hazards that may be caused by a wireless telecommunications facility in a residential area, and noted a moratorium should be put into place until appropriate regulations are included in the City's municipal code to guide the placement of wireless telecommunications facilities: Barbara Nordin, Andrea Bersie, Denise Ray and Roger Ewing. Walter Schob, member of St. Peters Episcopal Church, stated the proposed wireless telecommunications facility would have no visual impacts to the community; and it will give an emergency capability for cell phone use. Harriett Linville, Rector of St. Peters Episcopal Church, stated based on professional. opinion, the cell site poses no safety or health concerns to the community and will provide emergency capability for cell phone use. Mayor Peters closed the public comment hearing. Tricia Knight, agent, stated the application for this use complies with current City codes. Ann Travers, appellant, stated there are more appropriate sites for this use and the City should explore further regulations. Barbara Nordin, appellant, requested a refund for the appeal application fee if the appeal is approved. Councilmember Grantham stated he would like future cell site requests to come to the City so the City can benefit from this use. Councilmember Winholtz stated she is in support of the appeal, and noted regulations and zoning for this use should be considered. ll ® _ MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 22, 2007 Councilmember DeMeritt stated she is in support of the appeal. She said there is no proof that there is no significant gap of service. Councilmember DeMeritt stated regulations are needed for this use, and City properties that are not near residential area zones would be ideal. Councilmember Peirce stated he is not comfortable with including residential areas for this use, and noted regulations and zoning should be considered prior to future requests. Mayor Peters stated further regulations need to be considered for this use, and commercial sites would be a preferable site rather than residential zones. MOTION: Councilmember DeMeritt moved the City Council uphold the appeal and deny the approval of a wireless telecommunications facility at 545 Shasta Avenue with the following findings: 1) no significant gap in service has been shown in that area; 2) the City needs time to update the Morro Bay Municipal Code to reflect new technology; 3) the applicant has not shown that there are other alternatives including support for other City -owned ® facilities; 4) the applicant has not shown that the site will increase the coverage; and, 5) the applicant has not shown that it is compatible or appropriate for the neighborhood. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) B-3 ORDINANCE NO. 534 ADOPTING THE 2007 CALIFORNIA BUILDING CODE INCLUDING THE PLUMBING, ELECTRICAL, MECHANICAL, ENERGY AND FIRE CODES AND OTHERS PROPERLY RELATED THERETO - FIRST READING01TRODUCTION; (CITY ATTORNEY) Building Official Dan Doris stated every three years the International Code Council reviews and revises the International Building Code and other related codes. Then the California Building Standards Commissions revises portions of the International Codes, which become law on January 1, 2008. In addition to the adoption of the new state codes, staff is recommending the adoption of a Fireworks Code, a Burning in Residential Areas Code, and Water Quality with On -Site Retention requirements and Frontage Improvement clarifications. Mr. Doris recommended the City Council introduce and conduct the first reading of Ordinance No. 534 amending Title 14 of the Morro Bay Municipal Code to incorporate the new California State approved model codes, incorporate new Fireworks code, amend the language to Chapter 14.60 and 14.62 and amend frontage improvements sections. Mayor Peters opened the hearing for public comment; there were no comments, and Mayor Peters closed the public comment. hearing. 7 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 22, 2007 Councilmember Winholtz requested the following amendment to page 36 - Section 14.44.020 — B. Sidewalk improvements shall not be required for properties within the single-family (R-I and R-2 zoning) ....."; Council concurred. Fire Chief Mike Pond requested an amendment to the first page of the Ordinance to include the Fire Code in the third "Whereas"; Council concurred. MOTION: Councilmember Winholtz moved the City Council approve the first reading and introduction of Ordinance No. 534 amending Title 14 of the Morro Bay Municipal Code as amended. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) Acting City Manager Andrea Lueker read Ordinance No. 534 by number and title. B4 EXTENSION OF AN INTERIM URGENCY ORDINANCE MODIFYING THE DEVELOPMENT REVIEW FOR PARCELS IN THE R-1 DISTRICTS ZONE THAT EXCEED 2,500 SQUARE FEET PENDING COMPLETION OF STUDIES AND THE PREPARATION OF AN UPDATE TO THE CITY'S ZONING CODE; (CITY ATTORNEY) City Attorney Robert Schultz stated on September 24, 2007, the City Council adopted Interim Urgency Ordinance No. 533 for 45 days. He recommended Council hold a public hearing, and adopt Ordinance No 535 which would extend the previously enacted 45-day Ordinance modifying the development review for parcels in the R-1 District Zone that exceed 2,500 square feet pending completion of studies and the preparation of an update to the City's zoning code. Mayor Peters opened the hearing for public comment. John Barta referred to Government Code Section 65858 ® stating: "The legislative body shall not adopt or extend any interim ordinance pursuant to this section unless the ordinance contains legislative findings that there is a current and immediate threat to public health, safety, or welfare ....". Mr. Barta expressed his opposition to the adoption of this Ordinance stating there is no immediate threat to the public health, safety or welfare of the community. Mayor Peters closed the public comment hearing. N MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 22, 2007 MOTION: Councilmember Winholtz moved the City Council approve Interim Urgency Ordinance No. 535 by number and title only. The motion was seconded by Mayor Peters and carried unanimously. (5-0) Acting City Manager Andrea Lueker read Ordinance No. 535 by number and title only. Mayor Peters called for a break at 8:30 p.m.; the meeting resumed at 8:40 p.m. C. UNFINISHED BUSINESS —NONE. D. NEW BUSINESS D-1 AUTHORIZATION FOR STAFF TO ENTER INTO AN AGREEMENT FOR EXECUTIVE RECRUITMENT SERVICES WITH AVERY AND ASSOCIATES IN AN AMOUNT NOT TO EXCEED $24,000; (CITY ATTORNEY) City Attorney Robert Schultz stated in response to Robert Hendrix submitting his �. resignation as City Manager, staff sent a request for proposals to four recruitment firms operating primarily in California that specialize in public sector executive -level; three firms submitted their proposals. Mr. Schultz recommended the City Council authorize staff to enter into an agreement with Avery and Associates to conduct an executive search for City Manager in an amount not to exceed $24,000. MOTION: Councilmember Peirce moved the City Council authorize staff to enter into an agreement with Avery and Associates to conduct an executive search for City Manager in an amount not to exceed $24,000. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) ADJOURNMENT The meeting adjourned at 9:15 p.m. Recorded by: Bridgett. Bauer City Clerk L(� W • 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 8, 2007 CLOSED SESSION — OCTOBER 8, 2007 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA CS-1 GOVERNMENT CODE SECTION 54956.8; REAL PROPERTY CS-2 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: Morro Dunes RV Park Negotiating Parties: City and Doug Claassen Negations: Lease Terms Discussions regarding Personnel Issues including two (2) public employees regarding evaluation, specifically the City Attorney and the City Manager. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. L PUBLIC SESSION — OCTOBER 8, 2007 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 SEPTEMBER 10, 2007 CITY COUNCIL MEETING; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 RESOLUTION.NO. 47-07 IMPLEMENTING DEVELOPMENT IMPACT FEE PROGRAM AND AMENDING THE MASTER FEE SCHEDULE; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 47-07. A-3 RESOLUTION NO. 50-07 ADOPTING AN AMENDMENT TO CITY COUNCIL POLICY AND PROCEDURES CREATING AUTHORITY FOR SPEAKER SLIPS AT HEARINGS AND ESTABLISHING PROCEDURES FOR THE CORRESPONDENCE OF INDIVIDUAL COUNCIL MEMBERS; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 50-07. A-4 RESOLUTION NO. 52-07 APPROVING A POLICY FOR REIMBURSEMENT FOR TRAVEL AND EXPENSES OF ELECTED AND APPOINTED OFFICIALS; (FINANCE) ® RECOMMENDATION: Adopt Resolution No. 52-07. A-5 RESOLUTION NO. 53-07 ESTABLISHING FIXED AMOUNT APPEAL FEE OF $250; (PUBLIC SERVICES) �J RECOMMENDATION: Adopt Resolution No. 53-07. A-6 RESOLUTION NO. 48-07 IMPLEMENTING PARKING MANAGEMENT PLAN AND RECOMMENDATIONS; (PUBLIC SERVICES) RECOMMENDATION:. Adopt Resolution No. 48-07. A-7 PREPARATION AND ADOPTION OF THE SANITARY SEWER MANAGEMENT PLAN; (PUBLIC SERVICES) RECOMMENDATION: Adopt the prepared elements of the Sanitary Sewer Management Plan (SSMP); approve the tentative schedule; and, direct staff to prepare the SSMP in conjunction with the Public Works Advisory Board. 3 . B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-I PRESENTATION ON SHIPS TO REEFS INC., AND CONSIDERATION OF SENDING A RESOLUTION IN SUPPORT; (HARBOR) RECOMMENDATION: Discuss and direct staff accordingly. C. UNFINISHED BUSINESS C-I CONSIDERATION OF COST AND IMPLEMENTATION ISSUES RELATED TO CHANGES IN TROLLEY PROGRAM FOR THE 2008 SEASON AND ADOPTION OF RESOLUTION 49-07 AUTHORIZING IN -LIEU PARKING FEE FUNDS BE APPROPRIATED FOR THE PARKING MANAGEMENT PLAN RECOMMENDATION ON TROLLEY EXPANSION; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 49-07. C-2 REPORT ON TIME -LINE AND OTHER ISSUES RELATED TO CONDUCTING A CITY REORGANIZATION AND EFFICIENCY STUDY; (ADMINISTRATION) RECOMMENDATION: Discuss and direct staff accordingly. ® D. NEW BUSINESS D-I REPORT FROM VISION 2020 IMPLEMENTATION COMMITTEE 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 — OCTOBER 8, 2007 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Peters called the meeting to order at 5:00 p.m PRESENT: Janice Peters Mayor Melody DeMeritt Councilmember Rick Grantham Councilmember William Peirce Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix City Manager Robert Schultz City Attorney CLOSED SESSION MOTION: Councilmember Winholtz moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember DeMeritt 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: Morro Dunes RV Park Negotiating Parties: City and Doug Claassen Negations: Lease Terms CS-2 GOVERNMENT CODE SECTION 54957; 'PERSONNEL ISSUES. Discussions regarding Personnel Issues including two (2) public employees regarding evaluation, specifically the City Attorney and the City Manager. The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:50 p.m. MOTION: Councilmember DeMeritt 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. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 8, 2007 VETERANS MEMORIAL HALL - 6:00 P.M. 11 11 Mayor Peters called the meeting to order at 6:00 p.m PRESENT: Janice Peters Mayor Melody DeMeritt Councilmember Rick Grantham Councilmember William Peirce Councilmember Betty Winholtz Councilmember ABSENT: None STAFF: Andrea Lueker Robert Schultz Bridgett Bauer Rick Algert Bruce Ambo Janeen Burlingame John DeRohan Mike Pond Susan Slayton Dylan Wade ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE Assistant City Manager City Attorney City Clerk Harbor Director Public Services Director Management Analyst Police Chief Fire Chief Finance Director Senior Civil Engineer 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; the Closed Session meeting was continued to after the Regular City Council meeting. PUBLIC COMMENT Bill Morem of The Tribune shared memories of Stan Thompson. Lynda Merrill stated she attended the bulk and scale workshop and supports the comments made by Dr. Tefii who said the current City planning ordinances encourage big box designs. She said implementing Dr. Tefii's ideas are a vnn-w n solution to preserving the City's small town atmosphere. 2 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — OCTOBER 8, 2007 Richard Sadowski stated the three-year timeline for the wastewater treatment plant upgrade is too long. He said there are several sections where sewage is leaking that needs immediate attention. Mr. Sadowski stated he reviewed a sample of videotape inspections and written logs that were performed on various lines of the sewer system, and found the conditions were worst than expected. He said serious pollution in the soil is occurring all over the City. Marla Jo Bruton described defects found on videotapes of the sewer lines in different sections of the City. She said the written inspection logs do not include all of the detail of the damage that the corresponding tapes reveal. Ms. Bruton stated a detailed report would be provided to the City with recommendations on possible sources of funding and how to stop the pollution of the City's groundwater, creeks, bay and ocean. Jim Nance referred to low-income rates for water and sewer, and recommended the City encourage water conservation by not charging ratepayers for water they do not use. Captain Steve Knuckles stated there would be an event to benefit the Alisa Ann Rush Burn Foundation on October 11's. He stated October 7`s — 13'h is "Fire Prevention Week" ® and encouraged all to identify escape plans in case of a fire and check smoke detectors. Captain Knuckles stated a Public Safety Week Open House would be held on November 18 sponsored by the Fire Department, Police Department, Harbor Department and Coast Guard. Gordon Wiley expressed concern with the number of police officers who are leaving the City, and the City should find some way to keep the officers employed at the City. Claire Grantham stated free flu shots would be provided at Sierra Vista and Twin Cities Hospitals on October 27's. She also expressed concern with the loss of police officers due to the low pay scale, and said the City needs to compensate its police officers at a rate comparable to other agencies in the County. Susan Heinemann paid tribute to Stan Thompson. Bob Tefft addressed Item A-6 (Parking Management Plan) stating there are several street - ends in the City that is valuable real estate and should be used for uses other than parking lots. He said the parking lots in the City are substandard and do not meet code. Dr. TefR stated the endorsement of the exclusive use of in -lieu parking fees to fund parking improvements and expansion is discriminatory to local businesses. He requested Council pull this item from the Consent Calendar and send it back to consultants and ask them to do it right. 3 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 8, 2007 The following people expressed opposition to Item A-2 (Resolution No. 47-07 Implementing Development Impact Fee Program and Amending the Master Fee Schedule) noting the fees are excessive; a credit should be allowed for square footage for rebuilds and garages; and the fees should not be imposed until January 2008: Richard Kleinhammer, Joan Solu, Jeff Gregory, and Stanley Craig. Mayor Peters closed the public comment hearing. Mayor Peters called for a break at 7:01 p.m.; the meeting resumed at 7:11 p.m. DECLARATION OF FUTURE AGENDA ITEM — 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 10, 2007 CITY COUNCIL MEETING; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 RESOLUTION NO. 47-07 IMPLEMENTING DEVELOPMENT IMPACT FEE .PROGRAM. AND AMENDING THE MASTER FEE SCHEDULE; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 47-07. A-3 RESOLUTION NO. 50-07 ADOPTING AN AMENDMENT TO CITY COUNCIL POLICY AND PROCEDURES CREATING AUTHORITY FOR SPEAKER SLIPS AT HEARINGS AND ESTABLISHING PROCEDURES FOR THE CORRESPONDENCE OF INDIVIDUAL COUNCIL MEMBERS; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 50-07. A4 RESOLUTION NO. 52-07 APPROVING A POLICY FOR REIMBURSEMENT FOR TRAVEL AND EXPENSES OF ELECTED AND APPOINTED OFFICIALS; (FINANCE) ® RECOMMENDATION: Adopt Resolution No. 52-07. 4 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 8, 2007 A-5 RESOLUTION NO. 53-07 ESTABLISHING FDCED AMOUNT APPEAL FEE OF $250; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 53-07. A-6 RESOLUTION NO. 48-07 IMPLEMENTING PARKING MANAGEMENT PLAN AND RECOMMENDATIONS; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 48-07. A-7 PREPARATION AND ADOPTION OF THE SANITARY SEWER MANAGEMENT PLAN; (PUBLIC SERVICES) RECOMMENDATION: Adopt the prepared elements of the Sanitary Sewer Management Plan (SSMP); approve the tentative schedule; and, direct staff to prepare the SSMP in conjunction with the Public Works Advisory Board. ® Councilmember DeMeritt pulled Item A -I from the Consent Calendar; Mayor Peters pulled Item A-2; and Councilmember Winholtz pulled Items A-3, A-4, A-6 and A-7. 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-1 APPROVAL OF MINUTES FOR THE SEPTEMBER 10, 2007 CITY COUNCIL MEETING; (ADMINISTRATION) Councilmember DeMeritt made the following correction to the minutes of September 10, 2007 (page 8): Councilmember DeMeritt stated this is not theright time to """ these lots, and the City should eensider ebtaining a lean and hold the subdivided lets with a lien the City should consider obtainine a loan usinit the lots as collateral and hold the subdivided lots until the building market improves. MOTION: Councilmember DeMeritt moved the City Council approve Item A -I as amended. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) 5 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 8, 2007 A-2 RESOLUTION NO. 47-07 IMPLEMENTING DEVELOPMENT IMPACT FEE PROGRAM AND AMENDING THE MASTER FEE SCHEDULE; (PUBLIC SERVICES) Mayor Peters asked who is presently in the pipeline for building permits. Public Services Director Bruce Ambo responded that anyone who filed for a building permit by September 24, 2007. Mayor Peters also asked for clarification on square footage that is being charged with impact fees. Mr. Ambo responded fees are only charged on new square footage. MOTION: Mayor Peters moved the City Council approve Item A-2 of the Consent Calendar. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) A-3 RESOLUTION NO. 50-07 ADOPTING AN AMENDMENT TO CITY COUNCIL POLICY AND PROCEDURES CREATING AUTHORITY. FOR ® SPEAKER SLIPS AT HEARINGS AND ESTABLISHING PROCEDURES FOR THE CORRESPONDENCE OF INDIVIDUAL COUNCIL MEMBERS; (ADMINISTRATION) Councilmember Winholtz suggested the following amendments under Section 5.4 (Use of City Letterhead): ...If Councilmembers use their title, position, or City letterhead to express a personal opinion, the official City position must be stated clearly so the audience understands the differencetrelationshin between the official City position and the tnineF viewpoint of the Councilmember..... MOTION: Councilmember Winholtz moved the City Council approve Item A-3 of the Consent Calendar as amended. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) A4 RESOLUTION NO. 52-07 APPROVING A POLICY FOR REIMBURSEMENT FOR TRAVEL AND EXPENSES OF ELECTED AND APPOINTED OFFICIALS; (FINANCE) Councilmember Winholtz asked for clarification on Item A (Authorized Expenses) where it states City funds, equipment, supplies (including letterhead), titles, and staff time must only be used for authorized City business.... City Attorney Robert Schultz responded letterhead should only be used for business ® purposes. 3 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 8, 2007 Councilmember Winholtz asked where acknowledgements fall under expenses. Mayor Peters responded it would fall under Item #4 (Recognizing Service to the City). Councilmember Winholtz requested to remove Item #5 (Attending City Events). MOTION: Councilmember Winholtz moved the City Council approve Item A4 of the Consent Calendar as amended. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) A-6 RESOLUTION NO. 48-07 IMPLEMENTING PARKING MANAGEMENT PLAN AND RECOMMENDATIONS; (PUBLIC SERVICES) Councilmember Winholtz addressed the recommendations made by Dr. Tefft: 1) parking lots need to meet code; 2) include street ends in the Plan; and 3).endorsing the exclusive use of parking in -lieu funds. ® Mayor Peters stated she would like to add. the timing of delivery trucks on the Embarcadero; Council concurred. Councilmember DeMeritt stated shared and grandfathered parking is a way of giving the City flexibility to be decided on a case -by -case basis. MOTION: Councilmember Winholtz moved the City Council approve Item A-6 of the Consent Calendar as amended. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) A-7 PREPARATION AND ADOPTION OF THE SANITARY SEWER MANAGEMENT PLAN; (PUBLIC SERVICES) Councilmember Winholtz requested the dates of April 6, 2009 and May 2, 2009 be included to the Sanitary Sewer Management Plan Task Development Schedule. The City Council also asked to be added to the SSO Reporting Chain of Communication in case of a spill. MOTION: Councilmember Winholtz moved the City Council approve Item A-7 of the Consent Calendar as amended. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) 7 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 8, 2007 B. PUBLIC HEARINGS REPORTS & APPEARANCES B-1 PRESENTATION ON SHIPS TO REEFS INC., AND CONSIDERATION OF SENDING A RESOLUTION IN SUPPORT; (HARBOR) Harbor Director Rick Algert stated the California Ships to Reefs Inc. has been meeting with City staff, Port San Luis Harbor District and many other community groups in San Luis Obispo to promote creation of artificial reefs in San Luis Obispo County by sinking cleaned surplus vessels on sandy bottom habitat. On September 6, 2007 Ships to Reefs Inc. made a presentation to the City's Harbor Advisory Board and the Board unanimously supported the concept of the Ships to Reefs proposal. At this time, the best site in the Morro Bay area is considered to be in un-granted state tidelands approximately one mile north of the entrance to the Morro Bay harbor approximately one mile from the beach in 120 feet of water. The State Lands Commission manages that site and the City would not be involved in permitting or management of that site. Mr. Algert recommended the City Council receive the presentation from the California Ships to Reefs representative, accept public comment, and adopt Resolution No. 51-07 supporting the process for creating environmentally sound ® artificial reefs with cleaned and diver -rigged surplus/derelict vessels in San Luis Obispo County. Eleanor Rewerts, Vice President of Administration of California Ships to Reefs, presented the Ships to Reefs proposal for Council and public information. Mayor Peters opened the hearing for public comment. The following people expressed opposition to the consideration of creating environmentally sound artificial reefs with cleaned and diver -rigged surplus/derelict vessels in San Luis Obispo County: Joey Racano, Noah Smukler, George Taylor, Marla Jo Bruton, Richard Sadowski, and Gwen Taylor. Ed Ewing expressed support for this proposal stating it will create a habitat for fishing. Mayor Peters closed the public comment hearing. Councilmember Peirce stated he has dove around a sunken ship and it was a great experience. He said if this is done right, it could be beneficial to divers and the environment. Councilmember Winholtz stated she would like the state legislature to review the insurance and liability issues. She said based on her philosophy on recycling, she ® questions if this is the best use for this resource. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 8, 2007 Councilmember Grantham stated he could support this proposal if only the metal portion of the ship is used, and it provides a clean environment that would enhance a fish habitat. Councilmember DeMeritt stated she is supportive of this proposal because there are already dying reefs worldwide, and fish are losing habitat_ everywhere. She said she attended a presentation where they said they mean to do no harm to the environment. Councilmember DeMeritt stated to be a practical environmentalist one needs to adapt to the reality of the planet. Mayor Peters stated she is supportive of this proposal because it is being carefully reviewed by the Environmental Protection Agency and other environmental organizations. She said it appears to be considerate of the environment, and this is a way to recycle something in a positive way that will provide a fish habitat. MOTION: Councilmember Grantham moved the City Council adopt Resolution No. 51-07 supporting the process for creating environmentally sound artificial reefs with cleaned and diver -rigged surplus/derelict vessels in San Luis Obispo County. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) Mayor Peters called for a break at 8:10 p.m.; the meeting resumed at 8:20 p.m. C. UNFINISHED BUSINESS C-1 CONSIDERATION OF COST AND IMPLEMENTATION ISSUES RELATED TO CHANGES IN TROLLEY PROGRAM FOR THE 2008 SEASON AND ADOPTION OF RESOLUTION 49-07 AUTHORIZING IN -LIEU PARKING FEE FUNDS BE APPROPRIATED FOR THE PARKING MANAGEMENT PLAN RECOMMENDATION ON TROLLEY EXPANSION; (ADMINISTRATION) Management Analyst Janeen Burlingame stated at the June 25, 2007 City Council meeting, the Council considered recommendations from the Parking Management and Implementation Plan which included recommending separating the Route 1 Downtown/Embarcadero route into two routes so the headway could be shortened, encouraging more people to ride the trolley from public parking areas near trolley stops. The Council expressed support for expanding service to add a third trolley route dedicated along the Embarcadero as described in the Parking Management Plan and reaffirmed this at the joint City Council/Planning Commission study session on September 17, 2007. Ms. Burlingame recommended the City Council: 1) authorize staff to use the 1985 trolley for the third route for the 2008 season until a new trolley is ® procured and ready to go into service; 2) authorize staff to pursue grant funds and Z MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — OCTOBER 8, 2007 Purchase a new trolley for the third route; and 3) adopt Resolution No. 49-07 authorizing Parking In -Lieu funds be used for the Parking Management Plan recommendation for trolley expansion. Councilmember DeMeritt suggested using the 1985 trolley on the Embarcadero route while researching the purchase of an alternative fuel vehicle. Councilmember Peirce stated he would consider a hybrid over an electric vehicle, which would not be practical. Councilmember Winholtz stated she would support using the 1985 trolley for the Embarcadero route until a new trolley is purchased. She said she would like to consider purchasing a smaller vehicle to use on the State Park route. Mayor Peters stated there might be other vehicles available for the Embarcadero route. 'MOTION: Mayor Peters moved the City Council: 1) authorize staff to use the 1985 trolley for the third route for the 2008 season until a new trolley is procured and ready to go into service; 2) authorize staff to pursue grant funds and purchase a new trolley for the third route; and 3) adopt Resolution No. 49-07 authorizing Parking In -Lieu funds be used for the Parking Management Plan recommendation for trolley expansion. The motion was seconded by Councilmember Peirce and carried with Councilmember DeMeritt and Councilmember Winholtz voting no. (3-2) C-2 REPORT ON TIME -LINE AND OTHER ISSUES RELATED TO CONDUCTING A CITY REORGANIZATION AND EFFICIENCY STUDY; (ADMINISTRATION) This item was continued to a future City Council meeting. D. NEW BUSINESS D-1 REPORT FROM VISION 2020 IMPLEMENTATION COMMITTEE The City Council received a presentation from Stuart McElhinney regarding the Vision 2020 Implementation Committee. He said the goal is to have a public forum presenting the Vision 2020 Report and the findings of the Committee. No action was taken on this item. 10 MINUTES - MORRO BAY CITY COUNCIL REGULAR MIsETING — OCTOBER 8, 2007 ADJOURNMENT The City Council adjourned to Closed Session at 9:45 p.m. Recorded by: &1� ` Bridgett Bauer City Clerk E 11 City of Morro Bay City Council Agenda Mission Statement The City of Mono Bay is dedicated to the preservation and enhancement of the quality of life The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public REGULAR MEETING — SEPTEMBER 24, 2007 CLOSED SESSION — SEPTEMBER 24, 2007 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; 833 Embarcadero Negotiating Parties: City and Caldwell and/or Lease Negotiations: Lease terms CS-2 GOVERNMENT CODE SECTION 54957: PERSONNEL ISSUES. Discussions regarding personnel issues including 2 (two) public employees regarding scheduling evaluations, specifically the City Attorney and the City Manager. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. ® PUBLIC SESSION — SEPTEMBER 24, 2007 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 RECOMMENDATION TO USE PARK IN LIEU FUNDS FOR THE COLEMANIROCK ENHANCEMENT PLAN AND ASPHALT REPAIR AT LILA KEISER PARK; (RECREATION & PARKS) RECOMMENDATION: Council approve the use of $67,000 in Park in Lieu funds for repair of the Lila Keiser Parking Lot as well as complete an enhancement plan for the Morro Creek to Target Rock area. A-2 REPORT BACK TO CITY COUNCIL ON THE TRANSIT TRIENNIAL PERFORMANCE AUDIT; (ADMINSITRATION) RECOMMENDATION: Receive report for information and direct staff to continue implementing the performance audit recommendations. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 REPORT TO COUNCIL FOR PROPOSED USE OF AB 1913 COPS GRANT FUNDING; (POLICE) RECOMMENDATION: Adopt Resolution 45-07 authorizing the spending plan for the COPS grant program monies. B-2 RESOLUTION ADOPTING DEVELOPMENT IMPACT FEE PROGRAM AND ® AMENDING THE MASTER FEE SCHEDULE; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution 47-07 approving the development impact fees set forth in the Public Facilities Fee Study dated September 10, 2007. B-3 CONTINUED PUBLIC HEARING ON A BED AND BREAKFAST/MIXED- USE PROJECT LOCATED AT 214 BEACH STREET; (PUBLIC SERVICES) RECOMMENDATION: Continue this hearing item to the October 22, 2007 City Council meeting. C. UNFINISHED BUSINESS C-1 AN INTERIM URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA TEMPORARILY MODIFYING THE DEVELOPMENT REVIEW FOR PARCELS IN THE R-1 DISTRICTS ZONE THAT EXCEED 2,500 SQUARE FEET PENDING COMPLETION OF STUDIES AND THE PREPARATION OF AN UPDATE TO THE CITY'S ZONING CODE; (CITY ATTORNEY) ® RECOMMENDATION: Adopt Ordinance 533 0 C-2 DIRECTIONAL SIGNAGE IMPLEMENTATION PROGRAM; (PUBLIC ® SERVICES) RECOMMENDATION: Approve the directional signage implementation program and authorize staff to place the order for the signage. D. NEW BUSINESS D-1 REVIEW OF RESULTS FOR REQUEST FOR PROPOSALS ON LEASE SITE 87-88/87W-88W, LOCATED AT 833 EMBARCADERO (OUTRIGGER) AND AUTHORIZATION FOR THE CALDWELL/REDICAN PARTNERSHIP TO APPLY FOR DEVELOPMENT PERMITS ON LEASE SITE 87-88/87W- 88W; (HARBOR) RECOMMENDATION: Adopt Resolution 46-07 authorizing Caldwell/Redican to apply for development permits on City Lease Site 87-88/87W-88W, located at 833 Embarcadero. D-2 APPROVAL OF POLICY FOR REIMBURSEMENT FOR TRAVEL AND EXPENSES FOR ELECTED AND APPOINTED OFFICIALS; (CITY ATTORNEY) ® RECOMMENDATION: Direct staff to bring back a Resolution adopting an Expense Reimbursement Policy for City Council and other members of the legislative body as defined by law. D-3 AUTHORIZATION TO CONDUCT A SPACE NEEDS ASSESSMENT FOR THE CORPORATION YARD AND WASTEWATER TREATMENT PLANT EXPANSION; (PUBLIC SERVICES) RECOMMENDATION: Allocate $33,000 from unallocated reserves and authorize Public Services to execute a contract with RRM Design Group in the amount of $49,700 for the assessment of existing facilities, for the conceptual building layouts, for the conceptual site layouts, and preparation of a master plan document. D-4 DISCUSSION OF AMENDMENT TO COUNCIL POLICY REGARDING PUBLIC COMMENT; (COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. D-5 CONSIDERATION OF CHANGING APPEAL FEES TO A FLAT FEE; (COUNCIL) RECOMMENDATION: Change from a sliding scale fee based on project costs to ® a flat fee. D-6 CONSIDERATION OF A FUNDRAISER TO COLLECT FUNDS FOR EVENTS; (COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. E. ADJOURNMENT THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TU1IE 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. .0 5 MINUTES - MORRO BAY CITY COUNCIL qF CLOSED SESSION — SEPTEMBER 24, 2007 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Peters called the meeting to order at 5:00 p.m PRESENT: Janice Peters Mayor Melody DeMeritt Councilmember Rick Grantham 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 Grantham 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; 833 Embarcadero Negotiating Parties: City and Caldwell and/or Leage Negotiations: Lease terms CS-2 GOVERNMENT CODE SECTION 54957; PERSONNEL ISSUES. Discussions regarding personnel issues including 2 (two) public employees regarding scheduling evaluations, specifically the City Attorney and the City Manager. 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 Grantham and unanimously carried. (5-0) The meeting adjourned at 5:45 p.m. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 24, 2007 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Peters called the meeting to order at 6:00 p.m. PRESENT: Janice Peters Mayor Melody DeMeritt Councilmember Rick Grantham Councilmember William Peirce Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix City Manager Andrea Lueker Assistant City Manager Robert Schultz City Attorney Jamie Boucher Deputy City Clerk Rick Algert Harbor Director Bruce Ambo Public Services Director John DeRohan Police Chief Mike Pond Fire Chief Susan Slayton Finance Director Dylan Wade Senior Civil Engineer ® 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-1 (Interim Urgency Ordinance Temporarily Modifying the Development Review for Parcels in the R-I Districts Zone that Exceed 2,500 Square Feet): Ray McKelligott, Bob Tefli, and Anne Reeves. The following people expressed opposition to Item C-1: John Barta, Dan Reddell, and Kirk Najarian. The following people referred to Item D-1 (Review of Results for Request for Proposals on Lease Site 87-88/87W-88W, Located at 833 Embarcadero), and expressed support for the Request for Proposal submitted by Violet Leage of the Outrigger Restaurant: Violet Leage; Debbie Collins, Chuck Krebs, John Barta, Robert Luellyn, Maridee Bell, Gene Doughty- 2 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 24, 2007 Keith Taylor stated the Avocado Margarita Festival was a great success, and thanked staff for their participation in this event. Neil Farrel, Art Can Committee, shared pictures of the artists' renderings for the Art Can Project that would take place on October 13`s and 10. Garry Johnson shared the new "grabbers" provided to Morro Bay Beautiful. He announced Dom's Restaurant offers free coffee to those who participate in Morro Bay Beautiful on Monday mornings. Joey Racano, Ocean Outfall Group, stated Governor Arnold Schwarzenegger is responsible for the Marine Life Protection Act (MLPA) Initiative Process that gave the City its new State Marine Reserve at the east estuary, wherein take of all living marine resources is prohibited. He said the power plant is violating the MLPA process with once -through cooling. ® Susan Heinemann announced a "Paw Prints" fundraiser would be held on September 29, 2007 at Lemos Ranch to raise funds for a Morro Bay Dog Park. Dannie Tope addressed Item A-] (Recommendation to Use Park In Lieu Funds for the Coleman/Rock Enhancement Plan and Asphalt Repair at Lila Keiser Park), and asked if it is legal to use funds from one project for another project. Lanny McKay stated tourism is the greatest source of funds in this City. He expressed concern with the lack of staffing in the Police Department, and requested support through "Friends of the Police Department". Mayor Peters closed the hearing for public comment. Mayor Peters called for a break at 7:00 p.m.; the meeting resumed at 7:10 p.m. DECLARATION OF FUTURE AGENDA ITEMS Councilmember DeMeritt requested to agendize a presentation item in order to show a 15-minute DVD on "Water Crisis in California"; Councilmember Winholtz and Mayor Peters concurred. Mayor Peters requested to agendize a discussion on the costs and benefits of sharing Coastal Commission Representation with the City of Pismo Beach; Councilmember ® Grantham and Councilmember Peirce concurred. 3 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 24, 2007 Mayor Peters requested to agendize a discussion on noise abatement provisions of the Municipal Code as they pertain to kennels and garden machinery noise; Councilmember Grantham and Councilmember Winholtz concurred. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. AA RECOMMENDATION TO USE PARK IN LIEU FUNDS FOR THE COLEMAN/ROCK ENHANCEMENT PLAN AND ASPHALT REPAIR AT LILA KEISER PARK; (RECREATION & PARKS) RECOMMENDATION: Council approve the use of $67,000 in Park in Lieu funds for repair of the Lila Keiser Parking Lot as well as complete an enhancement plan for the Morro Creek to Target Rock area. ® A-2 REPORT BACK TO CITY COUNCIL ON THE TRANSIT TRIENNIAL PERFORMANCE AUDIT; (ADMINSITRATION) 1 RECOMMENDATION: Receive report for information and direct staff to continue implementing the performance audit recommendations. Councilmember Winholtz pulled Items A-1 and A-2 from the Consent Calendar. A -I RECOMMENDATION TO USE PARK IN LIEU FUNDS FOR THE COLEMAN/ROCK ENHANCEMENT PLAN AND ASPHALT REPAIR AT LELA KEISER PARK; (RECREATION & PARKS) Councilmember Winholtz stated stiff had clarified her concerns with keeping these funds separate. Assistant City Manager Andrea Lueker and Harbor Director Rick Algert reviewed the plans and funding for these projects. MOTION: Councilmember Winholtz moved the City Council approve Item A-1 of the Consent Calendar. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) El ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 24, 2007 A-2 REPORT BACK TO CITY COUNCIL ON THE TRANSIT TRIENNIAL PERFORMANCE AUDIT; (ADMINSITRATION) Councilmember Winholtz requested clarification on the North Coast Transit Plan. Management Analyst.Janeen Burlingame reviewed the Plan for clarification. MOTION: Councilmember Peirce moved the City Council approve Item A-2 of the Consent Calendar. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) B. PUBLIC HEARINGS, REPORTS & APPEARANCES B-1 REPORT TO COUNCIL FOR PROPOSED USE OF AB 1913 COPS GRANT FUNDING; (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. Additionally, the legislation requires an annual report 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 adopt Resolution No. 45-07 accepting $100,000 from the State of California Citizens Option for Public Safety Program. Mayor Peters opened the hearing for public comment; there were no comments, and Mayor Peters closed the public comment hearing. MOTION: Councilmember Peirce moved the City Council adopt Resolution No. 45-07 accepting $100,000 from the State of California Citizens Option for Public Safety Program with the provision that if it is not practical to change the Novell System software to Windows Operating System, the money will be moved to the Miscellaneous Equipment Upgrade Replacement. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) 11 ® MINUTES - MORRO BAY CITY COUNCIL . REGULAR MEETING — SEPTEMBER 24, 2007 B-2 RESOLUTION ADOPTING DEVELOPMENT IMPACT FEE PROGRAM AND AMENDING THE MASTER FEE SCHEDULE; (PUBLIC SERVICES) Public Services Director Bruce Ambo stated on September 10, 2007, the City Council opened the public hearing on the draft development impact fee program and directed staff to prepare either a resolution or ordinance implementing the impact fee program. State law requires a 60-day period before the impact fees go into effect. The 60-day period is a minimum amount of time, and more time may be granted if the Council chooses to do so. Mr. Ambo recommended the City Council adopt Resolution No. 47-07 establishing development impact fees for all development within the City of Morro Bay. Mayor Peters opened the hearing for public comment. Al Hoyt stated he is the architect for the Embarcadero Landing project located at.501 Embarcadero. He said this project has been in process for the past four years, and is pending final approval from the Coastal Commission. Mr. Hoyt stated if these impact fees were approved, the total impact on this project would be $76,000. ® Joan Solu stated she is the owner of the Days Inn and she and her husband are exploring the opportunity of rebuilding the hotel with the addition of a much -needed conference center. She said if these fees were approved, the impact on their proposed project would be $250,000 along with off -site improvements that would make this project unaffordable. Ms. Solu recommended the City look at the long-term benefits of increasing the fees proportionately over time so that they will not negatively impact a City that is already experiencing a negative growth rate. Greg Mead stated he recently moved to Morro Bay from Mammoth Lake where the development impact fees were recently raised and all building ceased because of the excessive fees. He said he would hope the City Council would not raise the fees when there is a recession, and would cause the loss of many jobs. Mr. Mead requested garages not be included in the square footage of a proposed project. John Barta stated the proposed increase in development impact fees will cause people to go elsewhere to build; will cause the housing market to drop; and rental housing will increase. Jeff Gregory stated he has several projects in the pipeline for permitting and the proposed impact fees are too exuberant and he may not be able to pursue these projects. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 24, 2007 Kirk Najarian stated the proposed development impact fees are extremely excessive and would have to be passed down to the homebuyers and consumers, and will negatively impact affordable housing and commercial building. Dan Reddell stated the imposition of these outrageous fees would cause a burden on Morro Bay lot owners. He said the City failed to notify lot owners of this increase in fees, which is unethical. Mr. Reddell stated the fees should be charged per lot and not per square foot, and requested the Council modify the resolution to make it more reasonable. Michael Coss stated this proposed fee increase would negatively impact his project, which includes plans for low-income work force housing. He said the fee increase would affect the community because people will not be able to build, purchase or rent housing in this City. John Hesch expressed opposition to the proposed development impact fee increase noting it would negatively impact the City. June French stated she would like to remodel her house to make it wheelchair accessible, ® however, with the proposed fee increase she will not be able to follow through with her plans. Joseph Anderton stated he was able to purchase a home in Morro Bay eight years ago and the earthquake caused major damages that FEMA would not cover. He said the proposed fee increase would make it unaffordable to repair the damage. E Ed Crye stated he and his family have been in the construction business in Morro Bay for four generations. He said the proposed fee increase would cause problems for their business and their livelihood and requested the Council consider raising the fees at a minimal amount overtime. Keith Gaffney stated young families would not be able to afford to live in Morro Bay with the increases proposed by Council. He requested Council consider an alternative approach other than the proposed fee increases. Reg Baldwin stated there are positive cash flow impacts on new development in Morro Bay, and requested Council consider these positive impacts before running development out of town with the proposed development impact fees. Karen Roza requested the timing and an alternative approach other than the proposed impact fees so there can be affordable housing in the City. 7 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 24, 2007 Lanny McKay stated the proposed fee increase is paying for fees that were not charged for infrastructure created in the past. Scott Crabtree stated the proposed impact fees are lunacy. Mayor Peters closed the public comment hearing. Councilmember Grantham stated he would like the park fees cut in half, which would be more reasonable. He said he supports the fee increases because they have not been raised in several years, and should not affect anyone who has permits submitted. Councilmember DeMeritt stated she supports the proposed development impact fees. She said these fees have not been raised in years and yet the Police and Fire Departments need funding, and the infrastructure needs improvement. Councilmember DeMeritt stated permits obtained after sixty days should be imposed the increased development impact fees, otherwise the permits in the pipeline should pay the current fees. ® Councilmember Winholtz stated she does not support modifying the park fees. She does support the proposed development impact fees to be imposed on permits obtained after sixty days. Councilmember Peirce stated the fees should be based on what the added square footage would cost in infrastructure, and could support modifying the park fees. He said he would like the new development impact fees to start January 1, 2008. Mayor Peters stated the City is woefully below the cities in the County in its development impact fees. She said the housing market is depressed and she would like to increase the proposed fees by half, and review again in one year. MOTION: Mayor Peters moved the City Council implement half of the proposed development impact fees, and review the fees in one year; and, implement these fees on permits obtained after six months and not currently in the pipeline. The motion was seconded by Councilmember Grantham. Councilmember Winholtz stated she could not support this motion because it is defeating the purpose. She said the categories should be reviewed individually instead of reducing all fees by half. fi MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — SEPTEMBER 24, 2007 Councilmember DeMeritt stated she could not support this motion because the fees were proposed on a legitimate conservative estimate prepared by a consultant hired by the City and paid for by taxpayer's money. VOTE: The motion carried with Councilmember DeMeritt and Councilmember Winholtz voting no. (3-2) MOTION: Councilmember Winholtz moved the City Council maintain all categories as is except Parks and General Government; and, they absorb the downward reduction and keep it in the same ratio as approved by the Public Services Director. The motion was seconded by Councilmember Peirce and carried with Councilmember DeMeritt voting no. (4-1) B-3 CONTINUED PUBLIC HEARING ON A BED AND BREAKFAST/MIXED- USE PROJECT LOCATED AT 214 BEACH STREET; (PUBLIC SERVICES) MOTION: Councilmember Winholtz moved the City. Council continue this item to ® the October 22, 2007 City Council meeting. The motion was seconded by Councilmember. DeMeritt and carried unanimously. (5-0) is C. UNFINISHED BUSINESS C-1 AN INTERIM URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA TEMPORARILY MODIFYING THE DEVELOPMENT REVIEW FOR PARCELS IN THE R-1 DISTRICTS ZONE THAT EXCEED 2,500 SQUARE FEET PENDING COMPLETION OF STUDIES AND THE PREPARATION OF AN UPDATE TO THE CITY'S ZONING CODE; (CITY ATTORNEY) City Attorney Robert Schultz introduced for Council review Interim Urgency Ordinance No. 533 temporarily modifying the development review for parcels in the R-1 districts zone that exceed 2,500 square feet pending completion of studies and the preparation of an update to the City's Zoning Ordinance. MOTION: Councilmember DeMeritt moved the City Council adopt Interim Urgency Ordinance No. 533 temporarily modifying the development review for parcels in the R-1 districts zone that exceed 2,500 square feet pending completion of studies and the preparation of an update to the City's Zoning Ordinance. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) L] ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 24, 2007 C-2 DIRECTIONAL SIGNAGE IMPLEMENTATION PROGRAM; (PUBLIC SERVICES) Public Services Director Bruce Ambo stated the purpose of the directional signage program is to facilitate the movement of pedestrian, vehicular and bicycle traffic for unfamiliar visitors into, out and around the City to various points of interest, attractions or public facilities. The thrust of the directional signage program would be to get motorists off the freeway and into the community and divert traffic to underutilized parking areas to the north and south ends of the Embarcadero near the Front Street and Boat Launch/Tidelands Park parking areas. A new trolley would run the entire Embarcadero route from the Rock to Tidelands Park in 15-minute headways, making it more convenient and easier to wait for the trolley to come in to the central Embarcadero area or enjoy the scenic ride to the Rock A public information campaign is underway in coordination with the City Promotions Committee for developing a web -based map of the parking areas in the Embarcadero and downtown areas for both the City and the Chamber of Commerce. This map would also include travel bus, recreational vehicle and boat trailer parking areas. Mr. Ambo recommended the City Council approve the directional signage implementation program and authorize staff to place the order for the signage. MOTION: Councilmember Winholtz moved the City Council approve the directional signage implementation program, and authorize staff to place the order for the signage. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) D. NEW BUSINESS D-1 REVIEW OF RESULTS FOR REQUEST FOR PROPOSALS ON LEASE SITE 87-88/87W-88W, LOCATED AT 833 EMBARCADERO (OUTRIGGER) AND AUTHORIZATION FOR THE CALDWELL/REDICAN PARTNERSHIP TO APPLY FOR DEVELOPMENT PERMITS ON LEASE SITE 87-88/87W- 88W; (HARBOR) Harbor Director Rick Algert stated this summer, the City requested proposals from all interested parties to submit plans for redevelopment of City Lease Site 87-88/87W-88W, which is currently leased to Violet Leage until April 10, 2010. On September 4, 2007, a Selection Panel interviewed the proposers and scored the proposals. The proposals were evaluated based on maximization of public benefits in the proposed project, the proposing party's potential to bring the project to completion and successfully operate on the lease sites and financial capability/experience. Mr. Algert recommended the City Council adopt Resolution No. 46-07 authorizing Burt Caldwell and Doug Redican to apply for development permits on City Lease Site 87-88/87W-88W located at 833 Embarcadero. 10 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 24, 2007 Councilmember Winholtz stated she supports the smaller businesses on the Embarcadero, and her preference is Alternative #1 submitted by Violet Leage. The remaining Council was in support of staff's recommendation. MOTION: Councilmember DeMeritt moved the City Council adopt Resolution No. 46-07 authorizing Burt Caldwell and Doug Redican to apply for development permits on City Lease Site 87-88/87W-88W located at 833 Embarcadero. The motion was seconded by Councilmember Grantham and carried with Councilmember Winholtz voting no. (4-1) D-2 APPROVAL OF POLICY FOR REIMBURSEMENT FOR TRAVEL AND EXPENSES FOR ELECTED AND APPOINTED OFFICIALS; (CITY ATTORNEY) City Attorney Robert Schultz stated Assembly Bill 1234 (AB 1234), which has been ® codified in the California Government Code Section 53232, et seq., became effective in 2006. Part of AB 1234 required ethics training by elected and certain appointed legislative body members who receive compensation. Another portion of AB 1234 creates new state requirements related to expense reimbursement. Under the law prior to AB 1234's passage, the general rule was that City officials could be reimbursed for reasonable expenses incurred in conducting City business (per diem travel expenses were permissible.) For the City Council and other legislative body members as defined in the Brown Act, AB 1234 limits reimbursement to actual and necessary expenses. AB 1234 also requires the City to adopt an Expense Reimbursement Policy, which specifies the types of activities that qualify for reimbursement and which sets forth reasonable reimbursement rates for travel, meals, lodging and other actual and necessary expenses. Where rates are not set forth in the policy, the reimbursable rates default to those specified in the Internal Revenue Service guidelines. Mr. Schultz recommended the City Council direct staff to return with a resolution adopting an Expense Reimbursement Policy for City Council and other members of the legislative body as defined by law. E MOTION: Councilmember DeMeritt moved the City Council direct .staff to return with a resolution adopting an Expense Reimbursement Policy for City Council and other members of the legislative body as defined by law. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) 11 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 24, 2007 El D-3 AUTHORIZATION TO CONDUCT A SPACE NEEDS ASSESSMENT FOR THE CORPORATION YARD AND WASTEWATER TREATMENT PLANT EXPANSION; (PUBLIC SERVICES) Senior Civil Engineer Dylan Wade stated during the recent master planning process for the Wastewater Treatment Plant Upgrade, several space uses and needs were identified. In a recent letter, Carollo Engineers recommended the City of Morro Bay's Collections Division relocate from their existing facility, which is housed on the Wastewater Treatment Plant site. As this building has outlived its useful life, and it is necessary to build a replacement building, it is a convenient time to relocate the facility offsite. Additionally, the Wastewater Treatment Plant upgrade anticipates requiring additional space for. new facilities, specifically the oxidation ditches. One location proposed by Carollo Engineers for these new facilities is in the existing City's Corporation Yard. Mr. Wade recommended the City Council allocate $33,000 from unallocated reserves; and, authorize the Public Services Director to execute a standard consultant contract approved by the City Attorney with RRM Design Group in the amount of $49,700 for assessment of existing facilities, conceptual building layouts, conceptual site layouts, and preparation of a master plan document. Mayor Peters stepped down from this item due to a conflict of interest. MOTION: Councilmember Peirce moved the City Council allocate $33,000 from unallocated reserves; and, authorize the Public Services Director to execute a standard consultant contract approved by the City Attorney with RRM Design Group in the amount of $49,700 for assessment of existing facilities, conceptual building layouts, conceptual site layouts, and preparation of a master plan document. The motion was seconded by Councilmember Grantham and carried with Mayor Peters abstaining. (4-0-1) D-4 DISCUSSION OF AMENDMENT TO COUNCIL POLICY REGARDING PUBLIC COMMENT; (COUNCIL) Mayor Peters stated the City Council's public comment policy works well with the 3- minute limit in most instances. However, when issues of major public concern are on the agenda, it is sometimes necessary to limit the time spent on public comment so that there is sufficient time to complete the agenda. Other government entities have solved this by providing speaker slips to be filled out in advance of the agenda item, so that a fair determination of the time needed for public comment can be set, and all speakers can adjust the length of their remarks accordingly. Mayor Peters requested the City Council discuss amending the City Council's public comment policies. 12 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 24, 2007 Councilmember Grantham and Councilmember DeMeritt stated they did not feel that speaker slips are necessary. MOTION: Mayor Peters moved the City Council direct staff to return with a resolution amending, the City Council Policies and Procedures Manual implementing a speaker slip policy during Public Comment where there are more than ten people who want to speak on a specific item. Councilmember Winholtz stated she would second the motion if there were an addition to the speaker slips that the speaker is in favor or opposed to a specific issue. Mayor Peters accepted this amendment to her motion. VOTE: The motion carried with Councilmember DeMeritt and Councilmember Grantham voting no. (3-2) D-5 CONSIDERATION OF CHANGING APPEAL FEES.TO A FLAT FEE; (COUNCIL) Councilmember Winholtz stated to put the current appeal fee (sliding scale depending on the cost of the project with a minimum of $120) into context; all local San Luis Obispo cities were contacted. An average of the cities' fees was $264.50. Councilmember Winholtz stated the City's minimum fee is within the realm of affordability, but the sliding scale can price residents out of the process. She requested the City Council consider changing the appeal fees from a sliding scale fee based on project costs to a flat fee. MOTION: Councilmember Peirce moved the City Council direct staff to return with an ordinance changing the appeal fee to a flat fee of approximately $250. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) D-6 CONSIDERATION OF A FUNDRAISER TO COLLECT FUNDS FOR EVENTS; (COUNCIL) Mayor Peters stated the Morro Bay.Chamber of Commerce is doing an excellent job of developing new events to bring more visitors, and thus more transient occupancy tax and sales tax revenue to Morro Bay. More events result in more demand for City support services such as facilities, barricades, police presence, etc. Due to the City's current budget situation, the City is no longer able to provide all these services without some ® reimbursement. Many organizations and cities have had impressive success with annual 13 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEP'ITAMER 24, 2007 fundraiser performances, and Morro Bay could also utilize this idea. The concept is a variety show type performance featuring all local talent, including music and dance, with an emphasis on fun. All profits, after payment of costs, would go into a separate fund to be accessed for support of local events such as the 4a' of July, Harbor Festival, Kite Festival, etc. Mayor Peters requested the City Council consider a fundraiser to collect funds for special events. MOTION: Mayor Peters moved the City Council support a fundraiser to collect funds for special events as a City event. The motion was seconded by Councilmember Peirce. Councilmember DeMeritt stated Council should be careful with using City funds and City staff to do something that could be perceived as supporting an individual. Councilmember Winholtz requested a committee be formed and return with more information on another entity that could support this event. Mayor Peters withdrew her motion; Councilmember Peirce withdrew his second. Mayor Peters stated she would form a committee and return to Council with more information. MOTION: Councilmember Peirce moved the City Council waive the fee for the use of the Veterans' Memorial Building. The motion was seconded by Councilmember Grantham and carried with Councilmember DeMeritt voting no. (4-1) ADJOURNMENT The meeting adjourned at 10:54 p.m. Recorded by: Jamie Boucher Deputy City Clerk 14 ® City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of 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 10, 2007 CLOSED SESSION — SEPTEMBER 10, 2007 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: SEC EmbarcaderolMarket Street Negotiating Parties: City and Hartzell Trust Negotiations: Involuntary purchase terms IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. E ® PUBLIC SESSION — SEPTEMBER 10, 2007 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCILMEMBERS ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period, the following rules shall be followed: • When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments are to be limited to three minutes. • All remarks shall be addressed to Council, as a whole, and not to any ® individual member thereof. • The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or staff. • Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering. • Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting. • Your participation in City Council meetings is welcome and your courtesy will be appreciated. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 772-6205. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are ® approved without discussion. 2 A-1 APPROVAL OF THE MINUTES FOR THE AUGUST 27, 2007 CITY ® COUNCIL MEETING; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 APPROVAL OF FINDINGS FOR DENIAL OF APPLICANT'S APPEAL OF PLANNING COMMISSION DENIAL OF PROPOSED LOT SPLIT AT 735 CABRILLO PLACE; (PUBLIC SERVICES) RECOMMENDATION: Approve findings for denial of applicant's appeal of Planning Commission denial of proposed lot split at 735 Cabrillo Place. A-3 RESOLUTION NO. 44-07 AUTHORIZING COOPERATIVE PURCHASING AGREEMENTS; (FINANCE) RECOMMENDATION: Adopt Resolution No. 44-07. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 APPLICANT'S APPEAL OF PLANNING COMMISSION DENIAL OF SIX - LOT SUBDIVISION AT SAN JACINTO - CLOISTERS PUBLIC SAFETY SITE; (PUBLIC SERVICES) ® RECOMMENDATION: Uphold the appeal of Planning Commission's denial of six -lot subdivision at San Jacinto and Coral Avenue. B-2 APPEAL OF PLANNING COMMISSION DENIAL TO AMEND THE PERMIT CONDITIONS AT 555 MAIN STREET; (PUBLIC SERVICES) RECOMMENDATION: Uphold the Planning Commission decision and deny the appeal to amend the permit conditions at 555 Main Street. B-3 CONSIDERATION OF A COMPREHENSIVE DEVELOPMENT IMPACT FEE PROGRAM; (PUBLIC SERVICES) RECOMMENDATION: Approve the Public Facilities Fee Study, and direct staff to collect the new impact fees upon issuance of a Building Permit. C. UNFINISHED BUSINESS C-1 CONSIDERATION OF A MEMORANDUM OF AGREEMENT BETWEEN THE CITY AND SAN LUIS OBISPO COUNTY ON PROCESSING DEVELOPMENT PROPOSALS IN THE UNINCORPORATED AREAS IN THE PERIPHERY OF THE CITY — LAFCO; (PUBLIC SERVICES) ® RECOMMENDATION: Approve the Memorandum of Agreement, and authorize the Mayor to execute the agreement. ® C-2 FURTHER DISCUSSION ON ALTERNATIVES FOR POLICY ON CORRESPONDENCE OF INDIVIDUAL COUNCIL MEMBERS TO OTHER PUBLIC AGENCIES; (ADMINISTRATION) RECOMMENDATION: This item has been pulled from the agenda. D. NEW BUSINESS D-1 DISCUSSION OF MORRO BAY MUNICIPAL CODE SECTION 14.44 IN REGARD TO FRONTAGE IMPROVEMENTS - CURBS, GUTTERS AND SIDEWALKS IN RESIDENTIAL AREAS; (PUBLIC SERVICES) RECOMMENDATION: Discuss and direct staff accordingly. D-2 REPORT ON THE MINIMUM STANDARD AND LEGAL REQUIREMENTS FOR ESTABLISHING A RESIDENTIAL BUILDING MORATORIUM AND OTHER CITIES' EXPERIENCES; (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. r COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED .TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST AT CITY HALL, LIBRARY, AND MILLS STATIONERY.' IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. rd ® MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION — SEPTEMBER 10, 2007 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Peters called the meeting to order at 5:00 p.m PRESENT: Janice Peters Mayor Melody DeMeritt Councilmember Rick Grantham Councilmember William Peirce Councilmember Betty Winholtz Councilmember STAFF: Andrea Lueker Assistant 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: SEC Embarcadero/Market Street Negotiating Parties: City and Hartzell Trust Negotiations: Involuntary purchase terms The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:35 p.m. MOTION: Councilmember Peirce moved the meeting be adjourned. The motion was seconded by Councilmember Grantham and unanimously carried. (5-0) The meeting adjourned at 5:35 p.m. �J r� MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 10, 2007 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Peters called the meeting to order at 6:00 p.m PRESENT: Janice Peters Mayor Melody DeMeritt Councilmember Rick Grantham Councilmember William Peirce Councilmember Betty Winholtz Councilmember STAFF: Andrea Lueker Robert Schultz Bridgett Bauer Rick Algert Bruce Ambo John DeRohan Rachel Grossman Rob Livick Mike Pond Mike Prater Susan Slayton Dylan Wade ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR'S REPORTS & ANNOUNCEMENTS Assistant City Manager City Attorney City Clerk Harbor Director Public Services Director Police Chief . Assistant Planner City Engineer Fire Chief Planning Manager Finance Director Civil Engineer 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 Richard Sadowski submitted two reports regarding the Wastewater Collection and Conveyance Systems and the discrepancies with the Joint Powers Agreement between the City of Morro Bay and the Cayucos Sanitary District. He.said with the State Marine Reserve designation outside Estero Bay, the health and pollution issues facing the community are going to require a regional approach. Mr. Sadowski described a proposed plan called the "Blue Carpet Treatment Plan for Estero Bay." Don Doubledee addressed Item D-1 (Discussion of Morro Bay Municipal Code Section 14.44 in Regard to Frontage Improvements - Curbs, Gutters And Sidewalks in Residential Areas) and stated the requirement of curbs, gutters and sidewalks will significantly change the character of the City. He said the requirements of the Americans 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 10, 2007 with Disabilities Act (ADA) laws have changed drastically over the years, and requested the City become updated with the current ADA laws, find out what other cities are doing to be in compliance with ADA laws, and obtain more community feedback on this requirement. Joey Racano referred to the new State Marine Reserve (SMR) at the Morro Bay East - Estuary and stated an SMR provides the greatest level of protection towards species and ecosystems allowing no take of any kind. He said the 250 acres of eelgrass beds makes Morro Bay's estuary rank high in the nation's estuaries. Mr. Racano noted the power plant's once-thru cooling continues to be a violation to the estuary by destroying 33% of the living marine organisms where take is prohibited. Jim Nance expressed support for Item D-1, stating curbs. and gutters should be a requirement for building a new house. He also referred to Item D-2 (Report on the Minimum Standard and Legal Requirements for Establishing a Residential Building Moratorium and Other Cities' Experiences) and requested the City place a full building moratorium in effect until the City's infrastructure is improved. Mr. Nance referred to Item B-1 (Applicant's Appeal of Planning Commission Denial of Six -Lot Subdivision at ® San Jacinto - Cloisters Public Safety Site) and requested the City Council uphold the Planning Commission's decision. Claire Grantham expressed concern with the lack of staffing and issues within the Police Department, and noted the City needs to support this department. Garry Johnson also addressed issues facing the Police Department and stated the City needs to support this department. He also encouraged citizens become involved in the Neighborhood Watch Program. Tom Hook addressed Item B-3 (Consideration of a Comprehensive Development Impact Fee Program) and noted if impact fees are raised it will make it more difficult for young families to move to Morro Bay, Susan Heinemann announced the 'Paw Print" and "Adopt -a -Pet" events would be held on September 29th at Lemos Pet & Feed to support the Morro Bay dog park. Lynda Merrill asked a question about the Closed Session item on Real Property, and expressed concern that the City may be considering the purchase of more property. 3 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 10, 2007 Ann Calhoun addressed Item C-1 (Consideration of a Memorandum of Agreement Between the City and San Luis Obispo County on Processing Development Proposals in the Unincorporated Areas in the Periphery of the City — LAFCO) and requested the City place in the Memorandum of Agreement to maintain local control of the Chevron beach area, which is also an area where dogs are allowed. Dan Reddell addressed Item D-2 and noted if a moratorium is placed on building, it will cost the General Fund $800,000. He also expressed concern with the low pay scale of the City's police officers and the shortfall of staff in the Police Department. Mr. Reddell urged the City Council to not stop the economic flow within the City. Joe Anderton addressed Item D-2 and noted the number of local contractors and subcontractors that are employed by building homes in the City, and the economic impact it would cost if a moratorium is imposed. Roger Ewing expressed support for a 45-day building moratorium in order to give the City the ability to obtain a long-term vision of the character of the City. ® Grant Crowl shared photographs of large houses and stated there should be a moratorium on these houses to maintain the character of Morro Bay. He also addressed the number of A -frame signs that are being displayed in the City. Dorothy Cutter expressed support for a moratorium in order to take time to consider the character of the City and it's infrastructure. Dale Reddell expressed opposition to a building moratorium and noted the history of moratoriums have never solved any of the City's problems. Nancy Johnson announced September 18th is the celebration "Dalia Days". Mayor Peters closed the hearing for public comment. Mayor Peters called for a break at 7:00 p.m.; the meeting resumed at 7:05 p.m. DECLARATION OF FUTURE AGENDA ITEMS Councilmember Winholtz requested to agendize a discussion on changing appeal fees to a flat fee, and she will provide information on this issue. Councilmember Peirce requested to agendize a discussion on regulating newspaper racks ® on the Embarcadero; Councilmember Peters and Councilmember DeMeritt concurred. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 10, 2007 Councilmember DeMeritt requested to agendize a discussion on potential changes to the Municipal Code that would protect the Cabrillo Street neighborhood in November; Councilmember Winholtz and Mayor Peters concurred. Mayor Peters requested to agendize a discussion on a fundraiser to help collect funds for events; Councilmember DeMeritt and Councilmember Peirce concurred. Mayor Peters requested to agendize a discussion on a local Business Improvement District; Councilmember Peirce and Councilmember Grantham 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 THE MINUTES FOR THE AUGUST 27, 2007 CITY COUNCIL MEETING; (ADMINISTRATION) ® RECOMMENDATION: Approve as submitted. is A-2 APPROVAL OF FINDINGS FOR DENIAL OF APPLICANT'S APPEAL OF PLANNING COMMISSION DENIAL OF PROPOSED LOT. SPLIT AT 735 CABRILLO PLACE; (PUBLIC SERVICES) RECOMMENDATION: Approve findings for denial of applicant's appeal of Planning Commission denial of proposed lot split at 735 Cabrillo Place. A-3 RESOLUTION NO. 44-07 AUTHORIZING COOPERATIVE PURCHASING AGREEMENTS; (FINANCE) RECOMMENDATION: Adopt Resolution No. 44-07. Councilmember Winholtz pulled Item A-1 from the Consent Calendar. A-1 APPROVAL OF THE MINUTES FOR THE AUGUST 27; 2007 CITY COUNCIL MEETING; (ADMINISTRATION) Councilmember Winholtz requested the City Council approve the minutes of August 27, 2007 with the following amendments: 5 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 10, 2007 DECLARATION OF FUTURE AGENDA ITEM Councilmember Grantham requested to agendize a status report on the abuse or negative financial impact on refunding appeal fees anywhere between six months and one year: Councilmember Winholtz and Mayor Peters concurred. Page 6 - Councilmember Winholtz's comments on Item B-I (Applicant's Appeal Of Planning Commission Denial Of Proposed Lot Split At 735 Cabrillo Place): Councilmember Winholtz stated the protection of the character of neighborhoods is within the context of the General Plan. She said the previous Conditions, Covenants and Restrictions for this neighborhood set a minimum of 900 9,000 square feet, which is no longer valid but sets the intent for this neighborhood. Councilmember Winholtz stated she is opposed to this appeal and supports upholding the law of the General Plan. 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 APPLICANT'S APPEAL OF PLANNING COMMISSION DENIAL OF SIX - LOT SUBDIVISION AT SAN JACINTO - CLOISTERS PUBLIC SAFETY SITE; (PUBLIC SERVICES) Associate Planner Rachel Grossman stated on August 6, 2007, a public hearing was held before the Planning Commission, during which time the applicant requested a Coastal Development Permit, Conditional Use Permit and Tentative Vesting Tract Map approvals for the subdivision of an existing lot into six legal lots. The Planning Commission denied the subdivision based upon concerns expressed regarding tree removal, the number of lots proposed and the access road design. The applicant seeks reversal of the Planning Commission's decision, which prevents the requested subdivision of the subject property. Ms. Grossman recommended the City Council uphold the appeal and approve the requested six -lot subdivision at 2783 Coral Avenue. Paul Reichardt of EDA Designs, representing the applicant, reviewed the designs prepared for this property for Council information. Mayor Peters opened the hearing for public comment l R ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 10, 2007 Peter Wightman stated the major concern of the surrounding neighbors is the proposed height limit of the project. He said the neighboring height limit is 14-feet and he requested Council consider maintaining the 14-foot maximum height limit with no two- story structures for this subdivision. Mr. Wightman expressed concern with the removal of the eucalyptus trees on this property. Marla Jo Bruton stated there were many years of court litigation regarding the development of this property. She said the height limit was set at 14-feet in- order to maintain a view of the dunes. Ms. Bruton stated this property was meant for a fire station, and this project should be denied. Richard Sadowski stated this property has a 100-year flood study and building should not be permitted at this location. Joey Racano submitted a report to Council on the virtues of eucalyptus trees. He said the community has spoken loud and clear about deforestization in the City. Mr. Racano stated this property is a part of the Environmentally -Sensitive Habitat Act, and this proposal will be appealed to the Coastal Commission. ® Keith Taylor expressed support for this proposed subdivision. He asked what is more important, trees or the safety of the City's citizens. Mr. Taylor reminded the Council of the 65% vote in support of Measure Q. Roy Kline expressed support to_ uphold the appeal of the Planning Commission's denial of this project. He said the 17-foot height limit would not impede any views, and noted the eucalyptus trees should be removed for safety purposes. Dorothy Cutter requested the City Council uphold the decision of the Planning Commission's denial of this project because six lots is too many for this property. Dan Reddell stated money from the sale of this property would go towards Phase 11 of the Fire Department Rebuild Project. He said it is a well laid out plan and the Fire Department needs this profit. Mr. Reddell stated trees are a renewable resource and can be replanted. Dale Reddell requested Council support the City's Fire Department by upholding the appeal to the Planning Commission's denial of this project. Mayor Peters closed the public comment hearing. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 10, 2007 Councilmember Winholtz stated she would like to deny this proposal without prejudice and reconsider a non-traditional plan within the lay of the trees with curbs and gutters and a 14-foot height limit. She expressed concern with the lack of on -street parking that is proposed. Councilmember Winholtz stated she supports maintaining the character of the surrounding neighborhood. Councilmember Peirce stated all the trees would be removed if there were a fire station built at this location. He stated parking should not be a problem with a 20-foot street and no sidewalks. Councilmember Peirce stated he is in support of the proposed plan because Council requested staff to return with a plan including six lots. Councilmember Grantham stated the proposed plans fit the character of the surrounding neighborhood. He expressed support for the proposed six lots at 14 or 17-foot height limit. Councilmember Grantham stated this project should be approved so that the public safety needs of the City can be addressed. Councilmember DeMeritt stated eucalyptus trees do provide important habitat and tree cover, and expressed support in the preservation of the trees along San Jacinto Street. ® She said five larger lots would sell for more money, and should be set at a 14-foot height limit. Councilmember DeMeritt stated the City should consider obtaining a loan using the lots as collateral and hold the subdivided lots until the building market improves. Mayor Peters stated she supports the proposed six lots with a 14-foot height limit, and the suggested plan design #5. MOTION: Mayor Peters moved the City Council uphold the appeal and approve the requested six -lot subdivision at 2783 Coral Avenue, with a 14-foot height limit and plan design #5. The motion was seconded by Councilmember .Grantham. Councilmember Winholtz stated she would be voting against this motion because she would like to see a more creative design plan. Councilmember DeMeritt requested an amendment to the motion to protect the trees along San Jacinto Street; Mayor Peters and Councilmember Grantham accepted the amendment to the motion. VOTE: The motion carried with Councilmember Winholtz voting no. (4-1) ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 10, 2007 B-2 APPEAL OF PLANNING COMMISSION DENIAL TO AMEND THE PERMIT CONDITIONS AT 555 MAIN STREET; (PUBLIC SERVICES) Planning Manager Mike Prater stated the owner and applicant, Michael Coss, has requested an amendment to the permit conditions that would allow the release of the final two single-family residences before continuing with the apartments and commercial buildings. The Planning Commission considered this request and denied the applicant the amendment. Mr. Prater recommended the City Council uphold the Planning Commission decision and deny the appeal. Michael Coss, owner and applicant, stated in order for the apartments to be built and financing secured, the original financing company has requested the single-family homes must be sold to release funding for the apartments/commercial portion of the project. He said the sequencing and timing of what comes first is the issue that needs to be addressed. Mayor Peters opened the hearing for public comment. Leah Pauley, Coast National Bank, stated the bank funding for this project was for three ® of the five single-family residences with a lien on the vacant property where the apartments are to be built. She said the loan was fora two-phase process, first the single- family houses would be built and sold, and part of the profit from that sale would go towards building the apartments. She said otherwise, the applicant would not qualify for fiinding of the full project. • Jim Randine requested the applicant receive a final inspection on the two houses that have been built so that the applicant can receive financing for the remainder of the project, which includes low-income housing. Roy Kline requested the City trust the applicant by allowing him to move forward with this project. Dorothy Cutter stated it was a condition of this project that affordable housing would be built, and requested the City do whatever necessary to obtain this affordable housing. Natalie Tartalia, real estate agent, stated they are doing everything they can to sell these houses, and requested Council's support to allow the applicant to move forward with this project. Barbara Coss stated they are doing everything they can to build affordable housing in the City, and requested Council's support in order for them to provide this housing. 0 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 10, 2007 Mayor Peters closed the public comment hearing. Councilmember Peirce stated if the units were released, he would like some assurance that the affordable housing would be built. Councilmember Grantham stated he would like this project to move forward and make sure the City's interest is taken into consideration. Councilmember DeMeritt stated the City needs affordable workforce housing, and expressed concern with this project going under foreclosure. Councilmember DeMeritt stated she would not uphold this appeal. Councilmember Winholtz stated there is money available in the Housing Trust Fund, and she will not uphold this appeal. MOTION: Councilmember DeMeritt moved the City Council uphold the Planning Commission decision and deny the appeal without prejudice. The motion ® was seconded by Councilmember Winholtz and carried with Councilmember Peirce voting no. (4-1) LJ Mayor Peters called for a break at 8:40 p.m.; the meeting resumed at 8:50 p.m. B-3 CONSIDERATION OF A COMPREHENSIVE DEVELOPMENT IMPACT FEE PROGRAM; (PUBLIC SERVICES) Public Services Director Bruce Ambo stated on March 7, 2006, the City Council directed staff to develop a request for proposal (RFP) for a development impact fee program for Council review and approval. On August 28, 2006, the Council directed the RFP be solicited to study water, sewer, streets, and law enforcement and fire protection facilities. The Council awarded a contract to MuniFinancial on January 8, 2007 for an analysis of revenue enhancement opportunities and development impact fee options. The Council subsequently directed that MuniFinancial prepare a comprehensive development impact fee justification study after hearing impact fee options on April 23, 2007. Mr. Ambo recommended the City Council approve the Public Facilities Fee Study, and direct staff to collect the new impact fees upon issuance of a building permit. Marshall Eyerman, MuniFinancial, stated the primary policy objective of a public facilities fee program is to ensure that new development pays the capital costs associated with growth. He reviewed the report, which presents an analysis of the need for public facilities to accommodate new development in the City of Morro Bay. 10 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 10, 2007 Mayor Peters opened the hearing for public comment. Dan Reddell stated the City's population has not changed in years, and these fees are unreasonable for those who want to develop on the few vacant lots left. He suggested looking at alternative ways to raise funds to support the City's infrastructure. Dale Reddell stated the proposed fees are staggering for someone who would like to build a house, and it will negatively affect low-income housing. He suggested all vacant lot owners should be notified of these proposed impact fees. Mayor Peters closed the public comment hearing. Councilmember Winholtz stated she supports an increase in development impact fees, with perhaps an exemption for remodels. She also noted there could be a benefit for contractors to build affordable housing. Councilmember Peirce stated without an increase in impact fees the City is subsidizing ® new construction with the General Fund, which the City cannot afford to do. He said he would like to set a threshold for minor additions. Councilmember Grantham stated he supports the development impact fees with a threshold for minor additions. CJ Councilmember DeMeritt stated these are impact fees that will result in $643,000 next year if the same amount of construction goes on as this year. Mayor Peters stated this increase in impact fees would help cover costs of services provided to the community. MOTION: Councilmember DeMeritt moved the City Council approve the Public Facilities Fee Study with escalator fees; direct staff to return with an ordinance or resolution implementing these fees; and, implement a minor threshold. The motion was seconded by Councilmember Winholtz and failed with Councilmember Grantham, Councilmember Peirce and Mayor Peters voting no. (2-3) 11 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING— SEPTEMBER 10, 2007 MOTION: Councilmember DeMeritt moved the City Council approve the Public Facilities Fee Study with escalator fees; direct staff to return with an ordinance or resolution implementing these fees; and exempts garages when implementing a minor threshold. The motion was seconded by Councilmember Winholtz and failed with Councilmember Grantham, Councilmember Peirce and Mayor Peters voting no. (2-3) MOTION: Councilmember Peirce moved the City Council approve the Public Facilities Fee Study with escalator fees; direct'staff to return with an ordinance or resolution implementing these fees; and, implementing a 500 square foot minimum threshold. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) C. UNFINISHED BUSINESS C-1 CONSIDERATION OF A MEMORANDUM OF AGREEMENT BETWEEN THE CITY AND SAN LUIS OBISPO COUNTY ON PROCESSING ® DEVELOPMENT PROPOSALS IN THE UNINCORPORATED AREAS IN THE PERIPHERY OF THE CITY — LAFCO; (PUBLIC SERVICES) Public Services Director Bruce Ambo stated the City has been involved in the Local Agency Formation Commission (LAFCO) Municipal Service Review/Sphere of Influence (MSR/SOI) for the past several months. LAFCO and County staff do not believe that the City should have a Sphere of Influence at this time (except for a portion of the back bay waters), and emphasize that subsequent proposals for modifying the sphere can be made at any time in the future. The City Planning Commission and City Council unanimously disagreed with eliminating the current sphere in its entirety, and requested further modifications that would reduce the sphere to a more realistic area of community expansion. The Memorandum of Agreement (MOA) is a byproduct of the MSR/SOI process, and while LAFCO staff facilitated and drafted the document, they are not a party to the agreement and it is solely between the City and County. Mr. Ambo recommended the City Council approve the MOA, and authorize the Mayor to execute the agreement. Paul Hood and David Church, Local Agency Formation Commission, were available for questions of the City Council. 12 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 10, 2007 MOTION: Councilmember Winholtz moved the City Council adopt the Memorandum of Agreement between the City and the County with the addition to Page 7, Section 4.1 as follows: Chevron/Texaco Properties is approximately 3,200 acres of land that is zoned agriculture abutting the northeast area of the City on the east side of Hiphwav One. The motion was seconded by Councilmember DeMeritt and carried with Councilmember Peirce voting no. (4-1) MOTION: Mayor Peters moved the City Council accompany with the Memorandum of Agreement a letter advising LAFCO that the City is not in favor of losing its Sphere of Influence. The motion was seconded by Councilmember Grantham. Councilmember Winholtz stated she would not support this motion because she believes the City is well protected with this Memorandum of Agreement. VOTE: The motion carried with Councilmember Winholtz voting no. (4-1) ® C-2 FURTHER DISCUSSION ON ALTERNATIVES FOR POLICY ON CORRESPONDENCE OF INDIVIDUAL COUNCIL MEMBERS TO OTHER PUBLIC AGENCIES; (ADMINISTRATION) C This item was pulled from the agenda. D. NEW BUSINESS D-1 DISCUSSION OF MORRO BAY MUNICIPAL CODE SECTION 14.44 IN REGARD TO FRONTAGE IMPROVEMENTS - CURBS, GUTTERS AND SIDEWALKS IN RESIDENTIAL AREAS; (PUBLIC SERVICES) City Engineer Rob Livick stated past practice has been to only require the installation of sidewalk for development projects within the R-3, R-4, Commercial and Industrial Zoning Districts. Additionally, sidewalks were required for subdivisions and residential projects on the fast three lots east of Main Street within the North Main Street Specific Plan area. Recent review of Chapter 14.44 of the City's Municipal Code for "Building Regulations — Frontage Improvements — Curbs, Gutters, Sidewalks, Streets and Street Trees" has resulted in Public Services Engineering staff requiring the installation of frontage improvements for most development projects even within the residential zoning districts. Mr. Livick recommended the City Council forward this issue for Planning Commission or Public Works Advisory Board review, or direct.staff accordingly. 13 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 10, 2007 Mayor Peters stated she would like this requirement to be waived until the Planning Commission and/or Public Works Advisory Board review the code. Councilmember Winholtz stated she is opposed to this because it goes against the General Plan, which states.sidewalks are exempt in the R-I zone. Councilmember Peirce stated Morro Bay is more rural than urban, and these requirements should be exempt in residential neighborhoods. Councilmember Grantham stated he does not support the current code as it stands. Councilmember DeMeritt stated Council should direct staff to amend the error in the Municipal Code. MOTION: Councilmember Winholtz moved the City Council direct staff to amend the Morro Bay Municipal Code to match the General Plan that would exclude the requirement of sidewalks in R-1 zoning. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) D-2 REPORT ON THE MINIMUM STANDARD AND LEGAL REQUIREMENTS FOR ESTABLISHING A RESIDENTIAL- BUILDING MORATORIUM AND OTHER CITIES' EXPERIENCES; (PUBLIC SERVICES) City Attorney Robert Schultz stated at the August 27, 2007 City Council meeting, staff was asked to return to Council with an explanation on the limitation on the City's ability to enact an urgency ordinance establishing a development moratorium. Government Code Section 65858 contains procedures the City must follow prior to adoption of an interim ordinance establishing a development moratorium. The Moratorium Power basically allows a local government to adopt a development "freeze" or other zone change immediately, without following normal rezoning procedures such as preparing an Environmental Impact Report, noticing and holding a public hearing, adopting an ordinance over two meetings at least five days apart, and allowing thirty days before the ordinance goes into effect. Mr. Schultz recommended the City Council discuss this item and direct staff accordingly. Councilmember DeMeritt stated building moratoriums are not unusual in California. She said they are generally specific in nature and have to do with building and zoning requirements. Councilmember DeMeritt stated because the City's proposed Zoning Ordinance is being held up with the Coastal Commission and there are various interpretations of what should be allowed, perhaps it would be a good idea to place a is short-term moratorium on residential building. 14 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — SEPTEMBER 10, 2007 Councilmember Grantham stated he would not support a moratorium because it will cause a loss of jobs and would be a bad economic decision. Councilmember Peirce stated a moratorium is usually placed in an urgent situation, which this is not. He said the economic impacts would not be outweighed by what would be gained. Councilmember Winholtz stated instead of a moratorium, perhaps there should be public review for residential plans over a certain amount of square footage in order to address the issue of mansionization. MOTION: Councilmember DeMeritt moved the City Council direct staff to bring back an urgency ordinance that would require a heightened review for building permits on new residential homes over 2,500 square feet. The motion was seconded by Councilmember Winholtz and carried with Councilmember Grantham voting no. (4-1) ADJOURNMENT The meeting adjourned at 11:00 p.m. �(Recorded by:: }— �Jti"�'`°�vv1 Bridgett Bauer City Clerk L- J 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 27, 2007 CLOSED SESSION — AUGUST 27, 2007 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: Morro Dunes RV Park Negotiating Parties: City and Doug Claassen Negations: Lease 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. u PUBLIC SESSION — AUGUST 27, 2007 VETERANS MEMORIAL BALL - 6:00 P.M. ® 209 SUREST., 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 THE MINUTES FOR THE AUGUST 13, 2007 CITY ® COUNCIL MEETING; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 RESOLUTION NO. 41-07 FOR APPLICATION/AUTHORIZED ® REPRESENTATIVE FOR SMALL COMMUNITY WASTEWATER_ GRANT PROGRAM; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 41-07. A-3 RESOLUTION NO. 43-07 AUTHORIZING . SUBMITTAL OF AN APPLICATION TO THE HOME INVESTMENT PARTNERSHIPS PROGRAM; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 43-07. A4 AUTHORIZATION OF CONTRACT FOR SERVICES ON CORPORATION YARD SPACE PLAN; (PUBLIC SERVICES) RECOMMENDATION: This item has been pulled from the agenda. A-5 AUTHORIZATION FOR STAFF TO ATTEND THE REGIONAL WATER QUALITY CONTROL BOARD HEARING ON WASTEWATER TREATMENT PLANT GRANT; (PUBLIC SERVICES) RECOMMENDATION: This item has been pulled from the agenda. ® A-6 AUTHORIZATION NO. 42-07 FOR THE CITY OF MORRO BAY TO ENTER INTO AN AMENDMENT TO GRANT AGREEMENT 905-128-980 WITH THE DEPARTMENT OF BOATING AND WATERWAYS FOR STATE PARK MARINA REHABILITATION PROJECT PLANNING; {HARBOR) RECOMMENDATION: Adopt Resolution No. 42-07. A-7 ORDINANCE NO. 532 AMENDING SECTION 9.28.030-I REGARDING CONSTRUCTION HOURS ON WEEKENDS - SECOND READING/ ADOPTION; (CITY ATTORNEY) RECOMMENDATION: Adopt Ordinance No. 532. A-8 ACCEPTANCE OF LETTER OF RESIGNATION FROM ONE PUBLIC WORKS ADVISORY BOARD MEMBER; (ADMINISTRATION) RECOMMENDATION: Receive and accept letter of resignation. B. PUBLIC HEARINGS REPORTS & APPEARANCES B-I APPLICANT'S APPEAL OF PLANNING COMMISSION DENIAL OF PROPOSED LOT SPLIT AT 735 CABRILLO PLACE; (PUBLIC SERVICES) ® RECOMMENDATION: Uphold the appeal and approve the requested lot split at 735 Cabrillo Place. 3 B-2 APPROVAL OF CONDITIONAL USE PERMIT FOR DEMOLITION OF EXISTING STRUCTURES LOCATED AT 575 AND 591 EMBARCADERO ® ROAD, AND SUBSEQUENT CONSTRUCTION OF MIXED -USE BUILDING INCLUDING SIX HOTEL SUITES AND TWO COMMERCIAL SUITES; (PUBLIC SERVICES) RECOMMENDATION: Approve the Concept Plan for the development proposed at 575 and 591 Embarcadero based upon the findings and conditions adopted by the Planning Commission. B-3 CONTINUED PUBLIC HEARING ON A BED AND BREAKFAST/MIXED- USE PROJECT LOCATED AT 214 BEACH STREET; (PUBLIC SERVICES) RECOMMENDATION: Continue public hearing to the September 10, 2007 City Council meeting. C. UNFINISHED BUSINESS C-I FOLLOW-UP TO MORATORIUM ORDINANCE ON MEDICAL MARIJUANA DISPENSARIES; (CITY ATTORNEY) RECOMMENDATION: This item has been pulled from the agenda. C-2 APPROVAL OF ANNUAL WATER REPORT AND ANNUAL WATER ® ALLOCATION PROGRAM; (PUBLIC SERVICES) RECOMMENDATION: Approve the Annual Water Report, and adopt the same water allocation program as last year. C-3 CONSIDERATION OF ,CONTRACT TO COMPLETE A COMPARATIVE STUDY OF . CITY COST EFFICIENCY AND EFFECTIVENESS; (ADMINISTRATION) RECOMMENDATION: Review financial requirements, timing and operational implications of the project, and if feasible, approve the project. D. NEW BUSINESS D-I DISCUSS CITY POLICY AUTHORIZING APPEAL FEE REFUNDS; (CITY COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. D-2 PROPOSAL TO CONSIDER AMENDMENT TO ZONING ORDINANCE REGARDING CONDO CONVERSIONS; (CITY COUNCIL) ® RECOMMENDATION: Discuss and direct staff accordingly. 17 D-3 DISCUSSION OF AMENDMENT TO COUNCIL POLICY REGARDING ® PUBLIC COMMENT; (CITY COUNCIL) RECOMMENDATION: This item has been pulled from the agenda. l 11 D4 DISCUSSION OF ESTABLISHING A POLICY ON CORRESPONDENCE BY INDIVIDUAL COUNCIL MEMBERS TO OTHER PUBLIC AGENCIES; (CITY COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. D-5 REVIEW OF LEGISLATIVE ITEMS PLACED FOR CONSIDERATION AT THE ANNUAL LEAGUE OF CALIFORNIA CITIES BUSINESS MEETING; (CITY COUNCIL) RECOMMENDATION: Review and discuss legislative items placed for consideration at the Annual League of California Cities Business Meeting. D-6 SELECT NEW FUTURES LIAISON COMMITTEE MEMBERS; (CITY COUNCIL) RECOMMENDATION: Members. E. ADJOURNMENT Discuss and make selection of NEW Future Committee 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 PARTICH'ATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. MINUTES - MORRO BAY CITY COUNCIL ® CLOSED SESSION — AUGUST. 27, 2007 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Peters called the meeting to order at 5:00 p.m. PRESENT: Janice Peters Mayor Melody DeMeritt Councilmember Rick Grantham 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 Grantham 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. CS-2 Property: Morro Dunes RV Park Negotiating Parties: City and Doug Claassen Negations: Lease Terms 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 5:50 p.m. MOTION: Councilmember Peirce moved the meeting be adjourned. The motion was seconded by Councilmember Grantham and unanimously carried. (5-0) The meeting adjourned at 5:50 p.m. E MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — AUGUST 27, 2007 VETERANS MEMORIAL HALL 6:00 P.M. - Mayor Peters called the meeting to order at 6:00 p.m. PRESENT: Janice Peters Mayor Melody DeMeritt Councilmember Rick Grantham 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 Joan Drake Housing Programs Coordinator Rachel Grossman Associate Planner Mike Pond Fire Chief Susan Slayton 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 Marla Jo Bruton referred to a report that she submitted to the City Council regarding common types of damage that occur with clay sewer lines and the environmental impacts it causes the City. Richard Sadowski addressed the importance of implementing a building moratorium until the wastewater treatment plant and the infrastructure is upgraded. Joey Racano referred to the State Marine Reserve in the east estuary, and stated there is a slight delay with the implementation of the Marine Life Protection Act Initiative process because it is so complex. He said this is due to the overlapping of State Parks jurisdiction, which raises many questions pertaining to preservation of our precious coastal natural resources. Mr. Racano stated once through cooling.from the power plant ® is destroying larvae in the estuary and causing entrainment. He said the implementation of the MLPA and removal of the power plant will help with the City's eco-tourism business. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 27, 2007 Jim Nance addressed the sewer rate upgrades and recommended instead of charging the citizens, the City should contract a grant writer to find federal or state grant funding to pay for this government -mandated operation; substantially increase the golf course sewer and water rates; increase commercial high user rates; increase building impacts fees; notice increase in water bills; and implement a building moratorium until above is completed. The following people addressed Item C-3 (Consideration of Contract to Complete a Comparative Study of City Cost Efficiency and Effectiveness) expressing opposition to hiring a consultant and noting this study should be performed in-house; it was also suggested these funds be used to increase the Police force, and improve the City infrastructure: Hal Tune, Ray McKelligott, Lynda Merrill, Dannie Tope, and Gary Luttrell. Bill Woodson addressed Item C-3 and stated he is impressed with the employees of the City, and it is appropriate to invest in a study of the City's services. He said it should be asked why the City has such financially woes. Mr. Woodson stated all departments should be included in this study with a third parry analysis. ® Reg Baldwin stated by raising development impact fees to lower sewer impact fees will raise housing costs and not encourage low-income housing. Ray McKelligott addressed Item D-2 (Proposal to Consider Amendment to Zoning Ordinance Regarding Condominium Conversions) and stated this proposed amendment would create mobile homes as the principal low-income housing in Morro Bay. Lynda Merrill addressed Item D-1 (Discuss City Policy Authorizing Appeal Fee Refunds) and expressed support for authorizing a policy to refund appeal fees. Ms. Merrill also expressed support for Item D-2 stating condominium conversions allow for people to have a sense of ownership and they participate more in their community. Garry Johnson stated he arranged a meeting between the merchants and the Police Department to discuss alleviating gangs from Morro Bay. He expressed support for the Police Department and said the City needs to maintain a strong police force. Nancy Johnson announced the Celebration of Dahlia Days on September le at St. Timothy's Parish Hall. Mayor Peters closed the hearing for public comment. Mayor Peters called for a break at 7:05 p.m.; the meeting resumed at 7:15 p.m r 3 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — AUGUST 27, 2007 DECLARATION OF FUTURE AGENDA ITEMS Councilmember Grantham requested to agendize a status report on the abuse or negative financial impact on refunding appeal fees anywhere between six months and one year; Councilmember Winholtz and Mayor Peters concurred. Councilmember DeMeritt requested to agendize a discussion on the legal basis for a building moratorium on residential building at the next Council meeting; 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 APPROVAL OF THE MINUTES FOR THE AUGUST 13, 2007 CITY COUNCIL MEETING; (ADMINISTRATION) ® RECOMMENDATION: Approve as submitted. A-2 RESOLUTION NO. 41=07 FOR APPLICATION/AUTHORIZED REPRESENTATIVE FOR SMALL COMMUNITY WASTEWATER GRANT PROGRAM; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 41-07. A-3 RESOLUTION NO. 43-07 AUTHORIZING SUBMITTAL OF AN APPLICATION TO THE HOME INVESTMENT PARTNERSHIPS PROGRAM; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 43-07. A4 AUTHORIZATION OF CONTRACT FOR SERVICES ON CORPORATION YARD SPACE PLAN; (PUBLIC SERVICES) This item has been pulled from the agenda. A-5 AUTHORIZATION FOR STAFF TO ATTEND THE REGIONAL WATER QUALITY CONTROL BOARD HEARING ON WASTEWATER TREATMENT PLANT GRANT; (PUBLIC SERVICES) ® RECOMMENDATION: This item has been pulled from the agenda. 9 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING —AUGUST 27, 2007 A-6 AUTHORIZATION NO. 42-07 FOR THE CITY OF MORRO BAY TO ENTER INTO AN AMENDMENT TO GRANT AGREEMENT #05-128-980 WITH THE DEPARTMENT OF BOATING AND WATERWAYS FOR STATE PARK MARINA REHABILITATION PROJECT PLANNING; (HARBOR) RECOMMENDATION: Adopt Resolution No. 42-07. A-7 ORDINANCE NO. 532 AMENDING SECTION 9.28.030-I REGARDING CONSTRUCTION HOURS ON WEEKENDS - SECOND READING/ ADOPTION; (CITY ATTORNEY) RECOMMENDATION: Adopt Ordinance No. 532. A-8 ACCEPTANCE OF LETTER OF RESIGNATION FROM ONE PUBLIC WORKS ADVISORY BOARD MEMBER; (ADMINISTRATION) RECOMMENDATION: Receive and accept letter of resignation. MOTION: Councilmember Peirce moved the City Council approve the Consent ® Calendar. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) �fie)11[al: t1_`.1 Zrek :itila) B-1 APPLICANT'S APPEAL OF PLANNING COMMISSION DENIAL OF PROPOSED LOT SPLIT AT 735 CABRILLO PLACE; (PUBLIC SERVICES) Associate Planner Rachel Grossman stated the applicant proposes to subdivide an existing 13,159 square foot lot into two legal lots that would be 6,002 square feet and 7,157 square feet. The requested subdivision is consistent with all requirements contained within the updated Subdivision Ordinance. On June 18, 2007, the Planning Commission continued the applicant's request for a Coastal Development Permit and parcel map approvals for a lot split, and requested staff return with findings for denial. On July 2, 2007, the Planning Commission approved findings for denial for the proposed lot split. The applicant seeks reversal of the Planning Commission's decision, which prevents him from subdividing the property. Ms. Grossman recommended the City Council uphold the appeal and approve the requested lot split at 735 Cabrillo Place. - Cathy Novak, representing the applicant/appellant, stated the grounds for this appeal are that the Planning Commission's denial of the Tentative Map was based on inadequate and improper findings. These findings concluded that the subdivision is incompatible ® with development patterns, lot sizes, shapes, open space, development type and density in the neighborhood. She said there is no provision defined in the Subdivision Ordinance that a subdivision must meet a neighborhood character standard. The General Plan MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — AUGUST 27, 2007 requires that a lot be of sufficient size, accessible from a public street and sufficient services to meet the build out demand. It additionally requires consistency with the Zoning Ordinance, other City policies and suitability for the type and density of the development. In considering the need for single-family homes and State mandates, it is more advantageous to provide two reasonable size lots for home construction than one large mansion. This subdivision design is consistent with the General Plan, pertinent requirements of the Subdivision Ordinance and other ordinances/laws and plans of the City as referenced in the Findings for Approval provided by staff in the Planning Commission Report dated June 18, 2007. Ms. Novak stated she would respectfully request that the City base its decision on the substantial evidence presented to approve this tentative map and uphold the appeal. Jason Linker, applicant/Appellant, stated he has grown up in Morro Bay and is vested as a property owner and business owner. He said his intent is to improve the properties that he has invested in. Mr. Linker requested the City Council uphold the City codes and ordinances by approving his request for a lot split, or take action to change the laws. Mayor Peters opened the hearing for public comment. ® The following people expressed support to approve the appeal and allow the applicant to subdivide an existing 13,159 square foot lot into two legal lots: Kim Linker, Carl Davis, Dannie Tope, Patrick Patterson, Erika Barnes, Ray Coskey, Jim McRoberts, Trevor Smith, Rich Huntington, Troy Leage, Tim Cowan, *and Keith Gaffney. The following people expressed opposition to allowing the subdivision of an existing 13,159 square foot lot into two legal .lots noting it would be inconsistent with the. neighborhood: Joseph Antinello, Skip Barnhardt, Cathy Phipps, Ruth Bianchi, Jim Bianchi, Sandy Barnhardt, Tom Cahill, Nathan Wallenstein, Dan Glesman, Robert Tefft, Karyn Convertini, Ray McKelligott, Roy Kline, and Roger Ewing. Mayor Peters closed the public comment hearing. Councilmember Winholtz stated the protection of the character of neighborhoods is within the context of the General Plan. She said the previous Conditions, Covenants and Restrictions for this neighborhood set a minimum of 9,000 square feet, which is no longer valid but sets the intent for this neighborhood. Councilmember Winholtz stated she is opposed to this appeal and supports upholding the law of the General Plan. Councilmember Peirce stated although a lot split would provide a smaller house, it would not be affordable housing. He said he is opposed to the appeal because there are no ® benefits for the neighborhood, and would create too much impact on the neighborhood. N. MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — AUGUST 27, 2007 Councilmember Grantham stated this is a bad time to talk about density of property when the City does not have a Police Department that can adequately protect the City at present. He said he is opposed to the appeal because there 'are no benefits to the neighborhood. Councilmember DeMeritt stated this proposal is not about State mandates and creating housing, and does not support low-income housing. She said subdivision is a privilege granted by the City Council. Councilmember DeMeritt stated this neighborhood is built with incredible yards and spaces in between, and the only way to save a neighborhood like this is with Council's discretion. She said she is opposed to granting this appeal. Mayor Peters stated this proposed lot split would create the fifth smallest lot in the surrounding area from Luisita Street to the State Park. She said it is the City Council's job to maintain the integrity of neighborhoods. Mayor Peters stated a granny unit would be allowed on this property if housing would be a concern. She said she is opposed to granting this appeal. MOTION: Councilmember Peirce moved the City Council deny the appeal for a lot split at 735 Cabrillo Place, and direct staff to return with findings for denial. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) B-2 APPROVAL OF CONDITIONAL USE PERMIT FOR DEMOLITION OF EXISTING STRUCTURES LOCATED AT 575 AND 591 EMBARCADERO ROAD, AND SUBSEQUENT CONSTRUCTION OF MIXED -USE BUILDING INCLUDING SIX HOTEL SUITES AND TWO COMMERCIAL SUITES; (PUBLIC SERVICES) Associate Planner Rachel Grossman stated the proposed project would demolish the existing buildings and replace them with two mirror image mixed -use structures that would include a total of two commercial suites and a six -room hotel with public lateral access. The applicant is requesting flexibility in height because significant public benefit would be provided. The Planning Commission reviewed the proposed project on April 2, 2007, and voted to continue the project, date uncertain, in order to provide the applicant an opportunity to redesign the proposed project based on Commissioner comments. The project returned to the Planning Commission on July 16, 2007 for further review and discussion and subsequently approved. Upon approval by the City Council the applicant would seek Coastal Development Permit approval from the Coastal Commission before returning to the Planning Commission for precise plan approval. Ms. Grossman recommended the City Could approve the Concept Plan for the development proposed at 575 and 591 Embarcadero based upon the findings and conditions approved by the ® Planning Commission. Smith Held approached Council noting he was available to answer.questions. 7 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 27, 2007 Mayor Peters opened the hearing for public comment; there were no comments, and Mayor Peters closed the public comment hearing. Councilmember Peirce stated this proposed building would provide a view where the existing building does not. He said he is favorably impressed and supports this Concept Plan. Councilmember Winholtz stated she is hesitant on granting the proposed 25-foot height; however, the plan offers the benefit of a public restroom. She said as a full benefit, she would like the restroom to be open every day 24 hours per day. Councilmember Grantham stated he sees the public'restroom as a full benefit to the public. He said the proposed plan is an improvement to the existing use, and he supports this Concept Plan. Councilmember DeMeritt stated she has a concern with parking with the increase of guest quarters being built on the Embarcadero. She said she would like the addition of a trolley route with 10-minute headways on the Embarcadero prior to this project being ® built. Councilmember DeMeritt stated she appreciates the view corridor that this project will provide, and the proposed restroom is a public benefit. El Mayor Peters stated the proposed view corridor is a huge benefit to the community and tourists. She said there would be risk of illicit activity by having the restroom open 24 hours per day, and having them open during business hours should be sufficient. MOTION: Councilmember DeMeritt moved the City Council approve the Concept Plan for the development proposed at 575 and 591 Embarcadero based upon the findings and conditions approved by the Planning Commission. The motion was seconded by Councilmember Grantham and carried with Councilmember Winholtz voting no. (4-1) Mayor Peters called for a break at 8:45 p.m.; the meeting resumed at 8:55 p.m. B-3 CONTINUED PUBLIC HEARING ON A BED AND BREAKFAST/MDCED- USE PROJECT LOCATED AT 214 BEACH STREET; (PUBLIC SERVICES) Planning Manager Mike Prater stated the applicant has requested a continuance for personal reasons and a chance to complete the information previously requested by the City Council. E3 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — AUGUST 27, 2007 MOTION: Councilmember DeMeritt moved the City Council continue the public hearing on a Bed and Breakfast/Mixed-Use Project located at 214 Beach Street to the September 10, 2007 City Council meeting. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) C. UNFINISHED BUSINESS C-I FOLLOW-UP TO MORATORIUM ORDINANCE ON MEDICAL MARIJUANA DISPENSARIES; (CITY ATTORNEY) This item was pulled from the agenda. C-2 APPROVAL OF ANNUAL WATER REPORT AND ANNUAL WATER ALLOCATION PROGRAM; (PUBLIC SERVICES) Public Services Director Bruce Ambo stated the City Council requested an update on the number of water equivalency units issued from January 2007 to present. A total of 33.78 water equivalency units were issued (commercial — 1.66 water equivalency units; multi- family — 11.96 water equivalency units; and single family residential — 20.16 water ® equivalency units). For the entire year of 2006 a total of 48.22 water equivalency units were issued. It is projected that the City will be below the 230 water equivalency units recommended for allocation, which breaks down to 100 water equivalency units for residential and 130 water equivalency units for commercial and industrial uses. The allocation and target goals continue to be consistent with Ordinance No. 266. Mr. Ambo recommended the City Council adopt the same water allocation program as last year. r Councilmember DeMeritt stated she does not see that the same amount of allocations are necessary since there is a drought, and recommended the residential water equivalency units be lowered to half (50 units). MOTION: Councilmember DeMeritt moved the City Council accept the 2006 Annual Water Report with an amendment to residential water allocations from 100 water equivalency units to 50 units for this year. Councilmember Peirce requested an amendment to the motion to include a report from staff if the 50 units are approaching; Councilmember DeMeritt accepted the amendment to her motion. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) 0 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING —AUGUST 27, 2007 C-3 CONSIDERATION OF CONTRACT TO COMPLETE A COMPARATIVE STUDY OF CITY COST EFFICIENCY AND EFFECTIVENESS; (ADMINISTRATION) City Manager Robert Hendrix stated this report explores the costs and other implications involved in contracting with an expert to perform a study and comparative analysis of the Morro Bay City organization. The suggested study goal would be to achieve a sustainable and substantial reduction in General Fund costs over two years while minimizing impacts on residents, employees and other City constituents. Mr. Hendrix recommended the City Council review financial requirements, timing and operational implications of the project and if feasible, approve the project; direct the City Manager to select a contractor, and return to the City Council with a budget adjustment funding the study and analysis. Councilmember Peirce stated the City could prepare this study without a consultant. Councilmember Winholtz stated efficiency and effectiveness needs to be studied; ® however, she is not sure it is affordable at this time. Councilmember Grantham stated a study should be conducted on all departments, and prepared by a consultant. Councilmember DeMeritt stated the City has good management and should use their expertise in performing an in-house efficiency study first, and use a consultant if further study is needed. Mayor Peters stated the Morro Bay Municipal Code has a section on reorganization of offices that states it is under the purview of the City Manager. She agreed that an in- house study should be conducted first, and consider a consultant if necessary. MOTION: Mayor Peters moved the City Council direct the City Manager to pursue an in-house study of City cost efficiency and effectiveness. The motion was seconded by Councilmember DeMeritt and carried with Council member Grantham voting no. (4-1) 10 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 27, 2007 D. NEW BUSINESS D-1 DISCUSS CITY POLICY AUTHORIZING APPEAL FEE REFUNDS; (CITY COUNCIL) Councilmember Winholtz stated at the last Council meeting a resident requested the City Council refund his appeal fee because his appeal was upheld and the last time he made a successful appeal, his fee was refunded. Currently, the fee is not a set amount; there is a minimum of $120, and it goes up on a percentage depending on the cost of the project. Councilmember Winholtz recommended the City Council decide under what circumstances, if any, it is appropriate for the City to refund appellant fees. MOTION: Councilmember Winholtz moved the City Council approve to reimburse the first applicant who files an appeal of a Planning Commission decision to the City Council if the appeal is approved. The motion was seconded by Councilmember DeMeritt and carried with Mayor Peters voting no. (4-1) D-2 PROPOSAL TO CONSIDER AMENDMENT TO ZONING ORDINANCE REGARDING CONDOMINIUM CONVERSIONS; (CITY COUNCIL) Councilmember Winholtz stated at a recent Planning Commission meeting it was noted by the Planning Manager that there are a number of applications for conversion to condominium. She noted a rash of conversions signals a loss of rental units, which is the community's most affordable type of housing. Councilmember Winholtz requested the City Council discuss the latest revision of the Subdivision Ordinance; in particular, but not restricted to application requirements, tenant provisions, and required findings, and improvement standards. MOTION: Councilmember Peirce moved the City Council direct staff to investigate State requirements for the conversion of condominiums and rental housing, and return to Council. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) D-3 DISCUSSION OF AMENDMENT TO COUNCIL POLICY REGARDING PUBLIC COMMENT; (CITY COUNCIL) This item was pulled from the agenda. �J 11 MINUTES - MORRO BAY CITY COUNCIL - REGULAR MEETING — AUGUST 27, 2007 D-4 DISCUSSION OF ESTABLISHING A POLICY ON CORRESPONDENCE BY INDIVIDUAL COUNCIL MEMBERS TO OTHER PUBLIC AGENCIES; (CITY COUNCIL) City Manager Robert Hendrix stated at the August 13, 2007 City Council meeting, Council requested an agenda item proposing a policy standard for council member correspondence directed to other public agencies. The primary goal of the policy standard is to ensure that a clear distinction is created in correspondence between correspondence created by individual members of the Council for their individual purpose and correspondence sent by the Mayor or other members of Council as a result of Council action and consistency with established City policy positions. Mr. Hendrix recommended the City Council review the proposed policy standard for council member correspondence to government agencies, and direct staff to prepare the language to be included in the City Council Policies and Procedures. MOTION: Councilmember Peirce moved the City Council direct staff to return to Council with subsequent information as discussed by Council regarding letters sent out by the City Council on City letterhead. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) D-5 REVIEW OF LEGISLATIVE ITEMS PLACED FOR CONSIDERATION AT THE ANNUAL LEAGUE OF CALIFORNIA CITIES BUSINESS MEETING; (CITY COUNCIL) The 2007 League of California Cities Annual Business Meeting will be held on September 8, 2007. The League encourages each City Council to consider the resolutions that will be considered at the Business Meeting, and determine a City position so that the City voting delegate can represent the City's position on each resolution. MOTION: Councilmember Peirce moved the City Council direct the Mayor to vote with the League of California Cities only if it is in regards to policy and not financial. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) D-6 SELECT NEW FUTURES LIAISON COMMITTEE MEMBERS; (CITY COUNCIL) Councilmember DeMeritt stated in January 2006, the City Council appointed members to the NEW Futures Committee to develop recommendations for the City regarding alternative possible uses of the Morro Bay Power Plant site. The purpose of the Liaison Committee would be to achieve face-to-face contact with management level employees isof Dynegy to discuss future plans for the power plant site in order to plan for impacts on the City. 12 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 27, 2007 Councilmember DeMeritt requested the City Council appoint members to a Liaison Committee and direct staff to seek contact with high-level management at Dynegy Energy to set a time for a meeting. MOTION: Councilmember DeMeritt moved the City Council appoint the following people to serve on the NEW Futures Liaison Committee to meet with management level staff at Dynegy: Rachel Aljilani, Homer Alexander, Councilmember DeMeritt, Councilmember Peirce, Robert Schultz and Robert Hendrix. The motion was seconded by Mayor Peters and carried unanimously. (5-0) MOTION: Councilmember DeMeritt moved the City Council direct staff to work with a representative from the Morro Bay Power Plant to seek contact with the management level staff at Dynegy and set up meetings. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) ADJOURNMENT The meeting adjourned at 10:34 p.m. ® Recorded by: Brid ett )Tauer 8 City Clerk 11 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. AMENDED AGENDA REGULAR MEETING — AUGUST 13, 2007 CLOSED SESSION — AUGUST 13, 2007 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 three (3) parcels: Property: Lease Site 30W/33W Negotiating Parties: City and Coakley Negations: Lease Terms Property: Lease Site 34W Negotiating Parties: City and Arnold Negations: Lease Terms Property: Lease Site 35 W-36W Negotiating Parties: City and Maritime Logistics Negations: Lease Terms IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. PUBLIC SESSION — AUGUST 13, 2007 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 JULY 9, 2007 REGULAR CITY ® COUNCIL MEETING; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. 2 A-2 QUARTERLY INVESTMENT REPORT; (FINANCE) RECOMMENDATION: Receive report for information. A-3 PRELIMINARY DESIGN CONTRACT AWARD FOR LIFT STATION #3 REPLACEMENT; (PUBLIC SERVICES) RECOMMENDATION: Authorize Public Services Director to execute standard consultant contract with the Wallace Group for topographic survey, preliminary design documents, final design documents, and bid phase support services. A-4 ORDINANCE NO. 530 ADOPTING ADMINISTRATIVE CITATION PROGRAM FOR MUNICIPAL CODE VIOLATIONS — SECOND READING/ ADOPTION; (CITY ATTORNEY) RECOMMENDATION: Adopt Ordinance No. 530. A-5 RESOLUTION NO. 40-07: INTENT TO ANNEX CITY- CONTROLLED/OWNED PROPERTIES IN THE CHORRO VALLEY; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 40-07. ® A-6 REJECTION OF REQUEST FOR PROPOSALS FOR OPERATION OF TRANSIT SERVICES IN SAN LUIS OBISPO COUNTY RELATING TO THE MORRO BAY DIAL -A -RIDE AND TROLLEY SERVICES; (ADMINISTRATION RECOMMENDATION: Reject the proposals submitted; extend the existing Operations & Management Agreement through fiscal year 2008/2009; and authorize the City Manager to open negotiations with MV Transportation. A-7 PROCLAMATION DECLARING SEA OTTER AWARENESS WEEK; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. B. PUBLIC HEARINGS, REPORTS & APPEARANCES B-I ORDINANCE NO. 532 AMENDING SECTION 9.28.030(I) OF THE MORRO BAY MUNICIPAL CODE REGARDING CONSTRUCTION HOURS ON WEEKENDS - FIRST READING /INTRODUCTION; (CITY ATTORNEY) RECOMMENDATION: Approve first reading and introduction of Ordinance No. 532. c B-2 DISCUSSION AND APPROVAL OF THE REVISED DRAFT REVENUE PROGRAM BY CAROLLO ENGINEERS, AND DISCUSSION OF ® PROPOSED SEWER RATE INCREASE SCENARIOS; (PUBLIC SERVICES) RECONIN11ENDATION: Adopt the Revenue Program; select the preferred Revenue Program rate increase scenario; and set a date for a public hearing for adoption of the proposed sewer rate increase based on the preferred Revenue Program rate increase scenario. B-3 PUBLIC HEARING ON CURRENT WATER ISSUES: A) APPROVAL OF NITRATE NOTIFICATION PLAN B) STATUS REPORT ON WATER RESOURCES AVAILABILITY AND WATER CONSERVATION PLAN C) 2006 ANNUAL WATER REPORT UPDATE RECOMMENDATION: Receive reports; open for public comment; and, direct staff accordingly. C. UNFINISHED BUSINESS C-1 CONSIDERATION OF CONTRACT TO COMPLETE A COMPARATIVE STUDY OF CITY COST EFFICIENCY AND EFFECTIVENESS; (ADMINISTRATION) RECOMMENDATION: Consider contract to complete a comparative study of City cost efficiency and effectiveness, and direct staff accordingly. ® D. NEW BUSINESS D-1 DECISION TO AUTHORIZE APPEARANCE AND COMMENT BY CITY COUNCIL MEMBER ON THE TOPIC OF STATE PARK ROAD AND OTHER ISSUES TO BE DETERMINED, AT CALIFORNIA STATE PARK AND RECREATION COMMISSION MEETING ON FRIDAY, AUGUST 24, 2007 AT 9:00 A.M. IN THE CAYUCOS ROOM OF THE INN AT MORRO BAY; (CITY COUNCIL) RECOMMENDATION: Discuss and take appropriate action. 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 NVITH 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! City of Morro Bay Morro Bay, CA 93442 (805) 772-6200 NOTICE OF SPECIAL MEETING NOTICE IS HEREBY GIVEN that the Morro Bay City Council will be holding a Closed Session Meeting on Wednesday, August 8, 2007 at 3:00 a.m. to be held in the City Hall Conference Room located at 595 Harbor Street, Morro Bay, California. The City Council will be discussing: ® 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. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. DATED: August 2, 2007 \46,, Bridgett 4er, City Clerk ® FINANCE 595 Harbor Street ADMINISTRATION 595 Harbor Street FIRE DEPT. 715 Harbor Street HARBOR DEPT. CITY ATTORNEY POLICE DEPT. 1275 Embarcadero Road 955 Shasta Avenue 870 Morro Bay Boulevard PUBLIC SERVICES 955 Shasta Avenue RECREATION & PARKS 1001 Kennedy Way ® MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION — AUGUST 13, 2007 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Peters called the meeting to order at 5:00 p.m PRESENT: Janice Peters Mayor Melody DeMeritt Councilmember Rick Grantham Councilmember William Peirce Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix City Manager Robert Schultz City Attorney CLOSED SESSION MOTION: Councilmember Winholtz moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember DeMeritt 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 three (3) parcels: • Property: Lease Site 30W/33W Negotiating Parties: City and Coakley Negations: Lease Terms • Property: Lease Site 34W Negotiating Parties: City and Arnold Negations: Lease Terms • Property: Lease Site 35W-36W Negotiating Parties: City and Maritime Logistics Negations: Lease Terms 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 DeMeritt and unanimously carried. (5-0) 0 The meeting adjourned at 5:50 p.m. C 1 r MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 13, 2007 VETERANS MEMORIAL HALL -.6:00 P.M. Mayor Peters called the meeting to order at 6:00 p.m. PRESENT: Janice Peters Mayor Melody DeMeritt Rick Grantham William Peirce Betty Winholtz STAFF: Robert Hendrix Robert Schultz Jamie Boucher Bruce Ambo Bill Boucher Janeen Burlingame Bruce Keogh Steve Knuckles Susan Slayton Dylan Wade Councilmember Councilmember Councilmember Councilmember City Manager City Attorney Deputy City Clerk Public Services Director Capital Projects Manager Management Analyst Wastewater Treatment Plant Manager Acting Fire Chief Finance Director Senior Civil Engineer 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 informational meeting would be held on August 22, 2007 and the topic will be on Scams, Swindles and Elder Abuse. Keith Taylor requested an update from staff on the progress of the rebuild of Fire Station 53. Richard Sadowski addressed concerns with the Wastewater Treatment Plant Collection System, noting the clay pipes are old and have defects that cause infiltration during wet weather, and exfiltration during dry weather. He said the movement of soil causes cracks and separation of the pipe joints that can go undetected for years and causes major pollution problems to the City. Mr. Sadowski stated the capacity of the sewage input should be known prior to the upgrade of the treatment plant. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 13, 2007 Marla Bruton addressed the increase in development that are creating impacts to the Wastewater Treatment Plant. She recommended the City implement a moratorium on new development until the defects to the sewage pipes is resolved. Dave Klinzman stated the Rotary Club of Morro Bay sponsors and supports the community through scholarships and events, and announced the 21" Annual Rotary Club Golf Tournament would be held on September 8, 2007. He said Rotary Club Members are actively recruiting sponsors or players for this event. Bill Woodson expressed support for Item D-I and recommended the City offer the State Parks and Recreation Commission a ride around town in the trolley. He requested the Council be flexible on State Park road plans, and coordinate a one-way road and a path from the campground to the golf course connector, or a raised boardwalk. Mr. Woodson stated other issues that could be considered are the Morro Bay Golf Course, upgrade to the Parks sewer system, and acknowledge the trolley connection to the campground. Peter Candela, CEO for the Chamber of Commerce, announced upcoming events in the City. ® Vicky Landis announced her resignation on the Public Works Advisory Board. Lynda Merrill expressed support for Item A-7 (Proclamation Declaring Sea Otter Awareness Week); and support for Item D-1 and having a Council representative at the State Parks and Recreation Commission meeting. She also expressed concern with people building their houses to maximum capacity and not having room to walk their dogs. Bob TefR stated he attended the Community Workshop on Neighborhood Compatibility Standards. He referred to the public notice for this workshop and stated the discussion was to be based on specific issues and to make progress in the mandated residential building design standards. Dr. TefR requested the Council refocus the process of a workshop in order to get back on the topic of size, bulk, scale and character of City neighborhoods. Dawn Borst, concession holder for Bayside Cafe, addressed Item D-I and requested the Council representative at the State Parks and Recreation Commission meeting not support concessions to be sold to larger corporations. Dorothy Cutter referred to the Community Workshop on Neighborhood Compatibility Standards and said the City needs to take control on the bulk and scale of its neighborhoods. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —AUGUST 13, 2007 Ann Reeves referred to the Community Workshop on Neighborhood Compatibility Standards and said she would like the next workshop to present solutions and alternatives to bulk and scale. Roger Ewing stated he filed an appeal on a City action to save landmark trees and prevailed before the Planning Commission. He said in the past it was a common courtesy and practice to refund the appellant's fee if the appeal was prevailed; this practice has since been minimized by policy. Mr. Ewing stated Morro. Bay is a small town that does not need to be run by policy, and there are times when policy should be set aside and basic human existence should be allowed to flow. He requested the City Council initiate a resolution that would grant his appeal refund based on the principal of fairness. Ray McKelligott agreed that the appeal fee should be refunded to Roger Ewing. Berna Parish stated she is passionate about the quality of life that Morro Bay has with neighborhood compatibility, bulk, size and scale. ® Mayor Peters closed the public comment hearing. Mayor Peters called for a break at 7:00 p.m.; the meeting resumed at 7:10 p.m. 1 DECLARATION OF FUTURE AGENDA ITEMS Councilmember DeMeritt requested to agendize a discussion on a building moratorium based on the lack of State Water, and pending the court decision on State Water; Mayor Peters, Councilmember Winholtz and Councilmember Grantham concurred. Councilmember Winholtz requested to agendize a discussion on the refund of appeal fees, and will prepare a report. Councilmember Winholtz requested to agendize a discussion on the definition of landmark trees, and will prepare a report; Councilmember DeMeritt concurred. Councilmember Winholtz requested to agendize a discussion regarding an amendment to the Zoning Ordinance regarding condominium conversion, and will prepare a report. Mayor Peters requested to agendize a discussion on establishing a policy on public comment, and will prepare a report; Councilmember Grantham and Councilmember Peirce concurred. 4 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 13, 2007 Mayor Peters requested to agendize a discussion on establishing a policy or procedure on Council Members distributing information to outside agencies; Councilmember Winholtz and Councilmember Peirce concurred. 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 9, 2007 REGULAR CITY COUNCIL MEETING; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 QUARTERLY INVESTMENT REPORT; (FINANCE) ® RECOMMENDATION: Receive report for information. A-3 PRELIMINARY DESIGN CONTRACT AWARD FOR LIFT STATION #3 . REPLACEMENT; (PUBLIC SERVICES) RECOMMENDATION: Authorize Public Services Director to execute standard consultant contract with the Wallace Group for topographic survey, preliminary design documents, final design documents, and bid phase support services. A4 ORDINANCE NO. 530 ADOPTING ADMINISTRATIVE CITATION PROGRAM FOR MUNICIPAL CODE VIOLATIONS — SECOND READING/ ADOPTION; (CITY ATTORNEY) RECOMMENDATION: Adopt Ordinance No. 530. A-5 RESOLUTION NO. 40-07: INTENT TO ANNEX CITY- CONTROLLED/OWNED PROPERTIES IN THE CHORRO . VALLEY; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 40-07. 11 61 C MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 13, 2007 A-6 REJECTION OF REQUEST FOR PROPOSALS FOR OPERATION OF TRANSIT SERVICES IN SAN LUIS OBISPO COUNTY RELATING TO THE MORRO BAY DIAL -A -RIDE AND TROLLEY SERVICES; (ADMINISTRATION) RECOMMENDATION: Reject the proposals submitted; extend the existing Operations & Management Agreement through fiscal year 2008/2009; and authorize the City Manager to open negotiations with MV Transportation. A-7 PROCLAMATION DECLARING, SEA OTTER AWARENESS WEEK; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. Councilmember DeMeritt pulled Item A-2 of the Consent Calendar; Councilmember Winholtz pulled Items A-3, A-5 and A-6. MOTION: Councilmember Winholtz moved the City Council approve Items A-1, A-4, and A-7 of the Consent Calendar. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) A-2 QUARTERLY INVESTMENT REPORT; (FINANCE) MOTION: Councilmember DeMeritt 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 PRELIMINARY DESIGN CONTRACT AWARD FOR LIFT STATION #3 REPLACEMENT; (PUBLIC SERVICES) Councilmember Winholtz reviewed this item for public information, noting Lift Station #3 is located at the corner of Quintana Road and South Bay Boulevard and repairs are funded and being addressed. 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) 2 MWUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 13, 2007 A-5 RESOLUTION NO. 40-07: INTENT TO ANNEX CITY- CONTROLLED/OWNED PROPERTIES IN THE CHORRO VALLEY; (PUBLIC SERVICES) Councilmember Winholtz asked if the annexation of the beach and back bay properties would be discussed at another time? Public Services Director Bruce Ambo reviewed the timeline of the annexation of these properties. 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 REJECTION OF REQUEST FOR PROPOSALS FOR OPERATION OF TRANSIT SERVICES IN SAN LUIS OBISPO COUNTY RELATING TO THE MORRO BAY DIAL -A -RIDE AND TROLLEY SERVICES; (ADMINISTRATION) ® Councilmember Winholtz reviewed this item for public information, noting the Dial -A -Ride costs are covered by grants and government money; however, the trolley costs are not. E MOTION: Councilmember Winholtz 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 ORDINANCE NO. 532 AMENDING SECTION 9.28.030(n OF THE MORRO BAY MUNICIPAL CODE REGARDING CONSTRUCTION HOURS ON WEEKENDS - FIRST READING /INTRODUCTION;.(CITY ATTORNEY) City Attorney Robert Schultz stated at the June 25, 2007 City Council meeting, Council directed staff to bring back an amendment to the City's Municipal Code prohibiting construction hours to 7:00 p.m. - 8:00 a:m. on weekends except in case of urgent necessity in the interest of public health and safety, and then only with a permit from the Public Services Department; which permit may be granted for a period not to exceed three days or less while the emergency continues and which permit may be renewed for a period of three days or less while the emergency continues. Mr. Schultz recommended the City Council move for first reading and introduction of Ordinance No. 532 amending Morro Bay Municipal Code Section 9.28.030(1) regarding construction hours on weekends. h MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 13, 2007 Mayor Peters opened the hearing for public comment; there were no public comments, and Mayor Peters closed the public comment hearing. MOTION: Councilmember Peirce moved the City Council approve the first reading and introduction of Ordinance No. 532 amending Morro Bay Municipal Code Section 9.28.030(I) regarding construction hours on weekends. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) City Manager Robert Hendrix read Ordinance No. 532 by number and title only. B-2 DISCUSSION AND APPROVAL OF THE REVISED DRAFT REVENUE PROGRAM BY CAROLLO ENGINEERS, AND DISCUSSION OF PROPOSED SEWER RATE INCREASE SCENARIOS; (PUBLIC SERVICES) Wastewater Treatment Plant Manager Bruce Keogh stated at the May 14, 2007 City Council meeting, Carollo Engineers presented the findings of the Revenue Program based on an upgrade project to full secondary treatment. At subsequent meetings, the Council and Sanitary District Board voted for an upgrade project that includes full tertiary ® treatment and partial composting. Carollo has revised the Revenue Program to include the project costs for the selected tertiary treatment and partial composting options. John Johnson, Carollo Engineers, stated this report presents the findings of the revised Revenue Program for consideration and discussion by the City Council, and to provide the public with the cost implications for monthly sewer charges and connection fees as a result of the project costs contained in the Facility Master Plan for upgrading the Wastewater Treatment Plant to tertiary treatment. The purpose of the Revenue Program is to estimate the rate impacts to the existing sewer rate structure for financing the upgraded and rehabilitated treatment plant. Senior Civil Engineer Dylan Wade reviewed the anticipated pipe replacement schedule with a 50-year life cycle, and the projected wastewater expenditures and reserves based upon current revenues. Mr. Keogh recommended the City Council adopt the Revenue Program; select the preferred Revenue Program rate increase scenario; and set a date for a public hearing for adoption of the proposed sewer rate increase based on the preferred Revenue Program rate increase scenario. Mayor Peters opened the hearing for public comment. l N MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 13, 2007 Bob Tefit suggested allowing citizens who may want to assist those who may have an undue impact with the rate increases by volunteering funds on their monthly water bills and those funds would go into a special assistance fund. Roger Ewing stated there are low-income citizens who will not be able to afford an increase, and there should be a community effort to assist them. He said residents have been. subsidizing development in the community due to low impact fees, and requested Council consider increasing impact fees. Jim Nance agreed that citizens have been subsidizing developers because the impact fees have not been enough to support the infrastructure. He said the City should investigate high water users and increase their fees accordingly. Noah Smukler stated the Surfrider Foundation supports the long-term goal of recycling water and use it as an alternative water source. He said they also support conservation, and fees that are reflective of water use. Mayor Peters closed the public comment hearing. ® Councilmember Winholtz stated she supports Scenario A in order to build-up the reserves over time and maintain lower rates for the ratepayers. She does not support placing extra funds towards the environmental impact report immediately, and use the funds that have been budgeted for this use for as long as possible. Councilmember Winholtz stated her philosophy is to do a little bit at a time as the money comes in for the upgrade of the Wastewater Treatment Plant. Councilmember Peirce stated he does not feel qualified to make changes to staffs recommendation on the upgrade of the Wastewater Treatment Plant. Councilmember Grantham stated he supports staff's recommendation on financing and rate increase. He expressed concern with the impact the rate increase is going to have on local businesses as well as the citizens. Councilmember Grantham stated based on the condition of the Wastewater Treatment Plant equates to more money that is going to be needed in the short term. Councilmember DeMeritt stated the problem is with what has been found with the damaged clay pipes that create infiltration and exfiltration. She said it is time to stop being timid with impact fees and favoring development over the citizens. Councilmember DeMeritt stated she supports Scenario C that increases rates by 3% per year, and set the impact fees at $9,500. She said Council should adopt a policy for an application process for low-income users. Councilmember DeMeritt stated it is important ® for citizens to know that the increase goes towards projects and not to salary increases E MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 13, 2007 Mayor Peters stated she supports Scenario D, which would allow the upgrade of the Wastewater Treatment Plant without another loan payment. She said she supports staffs concerns with the infrastructure and the potential emergencies that would cost more than moving forward with the upgrade of the treatment plant. MOTION: Mayor Peters moved the City Council approve Rate Schedule Scenario D, which increases residential and non-residential by 50% on July 1, 2008, and then 1.00% yearly for residential and 7.25% for non-residential through 2014-15; and, adopt the Revenue Program. The motion was seconded by Councilmember Peirce. Councilmember DeMeritt suggested Council not approve this motion, and approve Rate Schedule Scenario C based on the fact that development impact fees may cover some of the costs of the treatment plant upgrade; and the fact that the reserve could be reduced to $300,000; and the conservative estimates are assuming the worse. VOTE: The motion carried with Councilmember DeMeritt and Councilmember Winholtz voting no. (3-2) ® MOTION: Mayor Peters moved the City Council schedule the public hearing for adoption of the proposed sewer rate increases for November 12, 2007. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) Mayor Peters called for a break at 8:55 p.m.; the meeting resumed at 9:10 p.m. B-3 PUBLIC HEARING ON CURRENT WATER ISSUES: A) APPROVAL OF NITRATE NOTIFICATION PLAN Capital Projects Manager Bill Boucher stated as a result of the excess amounts of nitrates found in the City's water source in November 2006, staff was directed to develop a standard procedure for public notifications in the event of a future recurrence. The Nitrate Notification Plan is intended to provide prompt and effective outreach to the community as a whole in order to minimize the public health risk. Mr. Boucher stated staff and the Public Works Advisory Board recommend the City Council adopt the proposed Nitrate Notification Plan. Mayor Peters opened the hearing for public comment. 10 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 13, 2007 Noah Smukler, Public Works Advisory Board Member, requested the City Council continue discussion on how to be proactive to make sure this problem does not happen in the future. He said the Surfrider Foundation advocates for the self-sufficiency of the community's water supply and feel the wells are of vital importance to the City. Mr. Smukler stated State Water should not be so reliable that there are not other viable options. Mayor Peters closed the public comment hearing. MOTION: Councilmember Winholtz moved the City Council adopt the Nitrate Notification Plan as amended within the legal boundaries as allowed. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) B) STATUS REPORT ON WATER RESOURCES AVAILABILITY AND WATER CONSERVATION PLAN Capital Projects Manager Bill Boucher stated with the current local and regional climatic ® conditions and recent events relating to the delivery of State Water, the City Council directed staff to prepare a report on this matter. The citizens of Morro Bay are served by three potable water resources: local groundwater, deliveries from the State Water Project and the Desalination Facility. Each of these resources has its individual and respective quality and quantity properties and matters that impact the reliability of deliveries to the community. While State Water routinely provides about 75% of the community supply, this resource has an annual two -week maintenance shutdown period each November during which time the City must be able to rely upon the other resources. Climatic conditions and environmental constraints promise to affect delivery capabilities now and into the future. Mr. Boucher recommended the City Council receive this report for information, and direct staff accordingly. 2 Mayor Peters opened the hearing for public comment. Noah Smukler stated water is the most critical resource the City has, and communities around the world are addressing these issues. He said there is a need to focus on the development and enhancement of local water supply and local water management techniques. Mr. Smukler noted State Water and the desalination plant are viable emergency resources but they are the most expensive options, and local conservation techniques and low impact development will be a stable foundation for local water. 11 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 13, 2007 Peter Risley stated there is a need to develop and maintain our local water resources because it is the most cost effective resource. He said the City should focus on maintaining its wells and prevent water pollution and not depend on outside water resources. Mayor Peters closed the public comment hearing. Councilmember Winholtz stated she would like the City to publish a reminder in .the water bills of the City's mandatory conservation requirements. Councilmember DeMeritt expressed concern with the health and safety of the City's water supply. She stated she would like signs posted at City intersections encouraging water conservation, and would like a discussion at the next City Council meeting on establishing a building moratorium. Councilmember DeMeritt and Councilmember Winholtz both donated $50 from their discretionary funds to go towards signs on water conservation. MOTION: Councilmember DeMeritt moved the City Council direct staff to post as . many signs as discretionary funds will allow urging water conservation in Morro Bay. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) C) 2006 ANNUAL WATER REPORT UPDATE This item was continued to the August 27, 2007 City Council meeting. C. UNFINISHED BUSINESS C-1 CONSIDERATION OF CONTRACT TO COMPLETE A COMPARATIVE STUDY OF CITY COST EFFICIENCY AND EFFECTIVENESS; (ADMINISTRATION) This item was continued to the August 27, 2007 City Council meeting. 12 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — AUGUST 13, 2007 D. NEW BUSINESS D-1 DECISION TO AUTHORIZE APPEARANCE AND COMMENT BY CITY COUNCIL MEMBER ON THE TOPIC OF STATE PARK ROAD AND OTHER ISSUES TO BE DETERMINED, AT CALIFORNIA STATE PARK AND RECREATION COMMISSION MEETING ON FRIDAY, AUGUST 24, 2007 AT 9:00 A.M. IN THE CAYUCOS ROOM OF THE INN AT MORRO BAY; (CITY COUNCIL) Councilmember Winholtz stated the California State Department of Parks and Recreation (DPR) Commission would be holding a public meeting at the Inn at Morro Bay on August 24, 2007. This meeting does provide for public comment on any DPR topic, and since there are two DPR properties within the boundary of the City, it is to the City's benefit to address the Commission and offer information that may be of interest to the Commission. There are particular items in both the City and Morro Bay State Park's General Plan that should be emphasized as important; in particular: a) maintain vehicular access, at least partial, to Lower State Park Road; b) build the raised boardwalk for pedestrians along Lower State Park Road; c) update the Commission on new hunting hours: and d) sensitize them to our unique setting. Councilmember Winholtz prepared a draft letter for Council review, and recommended the City Council vote on this or an amended letter to be read during public comment on behalf of the City Council. MOTION: Mayor Peters moved the City Council approve the letter with additional items mentioned, and designate Councilmember Winholtz to be the Council delegate and greeter at the State Department of Parks and Recreation Commission meeting. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) I�Li]i1;Lt�171�YY The meeting adjourned at 10:54 p.m. Recorded by: amie Boucher Deputy City Clerk 13 0 O City of Morro Bay Morro Bay, CA 93442 (805) 772-6200 CITY OF MORRO BAY CITY COUNCIL NOTICE OF CANCELED MEETING THE REGULAR CITY COUNCIL MEETING SCHEDULED FOR MONDAY, JULY 23, 2007 HAS BEEN CANCELED The next regularly scheduled meeting will be held on Monday, August 13, 2007, 6:00 p.m., Veterans Hall. ® FINANCE ADMINISTRATION 595 Harbor Street 595 Harbor Street HARBOR DEPT. 1275 Embarcadero Road CITY ATTORNEY 955 Shasta Avenue FIRE DEPT. 715 Harbor Street POLICE DEPT. 870 Morro Bay Boulevard PUBLIC SERVICES 955 Shasta Avenue RECREATION & 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 — JULY 9, 2007 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER (Cotmcilmember Grantham will be making a telephone appearance for this meeting from 2940 Ironwood, Morro Bay) 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-] APPROVAL OF MINUTES FOR THE JUNE 25, 2007 REGULAR CITY COUNCIL MEETING; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 NEW FUTURES REPORT ON PHASE I— HISTORY, LAND USE, AND COMMUNITY DESIRES FOR FUTURE USES OF POWER PLANT SITE; (COUNCIL) ® RECOMMENDATION: Receive report for information. u B-2 ORDINANCE NO. 530 ADOPTING ADMINISTRATIVE CITATION PROGRAM FOR MUNICIPAL CODE VIOLATIONS - FIRST READING/INTRODUCTION; (CITY ATTORNEY) RECOMMENDATION: Approve first reading and introduction of Ordinance No.- 530 adopting an Administrative Citation Program for municipal code violations. B-3 ORDINANCE NO. 532 AMENDING CHAPTER 12 OF THE MORRO BAY MUNICIPAL CODE REGARDING CONSTRUCTION HOURS - FIRST READING/INTRODUCTION; (CITY ATTORNEY) RECOMMENDATION: Approve first reading and introduction of Ordinance No. 532 amending Chapter 12 of the Morro Bay Municipal Code regarding construction hours. E ® C. UNFINISHED BUSINESS C-1 ORDINANCE NO. 531 AMENDING SECTION 12.08.070 OF CHAPTER 12.08 OF THE MORRO BAY MUNICIPAL CODE PROHIBITING THE TRIMMING AND CUTTING OF CITY TREES DURING NESTING SEASON; SECOND READING/ADOPTION; (CITY ATTORNEY) RECOMMENDATION: Adopt Ordinance No. 531 amending Section 12.08.070 of Chapter 12.08 of the Morro Bay Municipal Code prohibiting the trimming and cutting of City trees during nesting season. C-2 RESOLUTION NO. 39-07 AMENDING MAJOR VEGETATION GUIDELINES; (CITY ATTORNEY) RECOMMENDATION: Adopt Resolution No. 39-07. D. NEW BUSINESS D-1 TRANSIT TRIENNIAL PERFORMANCE AUDIT PRESENTATION; (ADMINISTRATION) RECOMMENDATION: Receive presentation on Transit Triennial Performance Audit. ® _ D-2 QUARTERLY. INVESTMENT REPORT; (FINANCE) RECOMMENDATION: This item has been pulled from the agenda. D-3 SCHEDULE COUNCIL STUDY SESSION ON PARKING MANAGEMENT PLAN REPORT; (PUBLIC SERVICES) RECOMMENDATION: Consider scheduling a study session to thoroughly discuss and consider the Parking Management Plan. D4 RESOLUTION NO. 37-07 APPROVING TWO SUBLEASE AGREEMENTS FOR LEASE SITE 124-128/124W-128W LOCATED AT 1215 EMBARCADERO; (HARBOR) RECOMMENDATION: Adopt Resolution No. 37-07. D-5 RESOLUTION NO. 38-07 APPROVING AMENDMENT #1 TO THE LEASE AGREEMENT FOR LEASE SITE 34W LOCATED ADJACENT TO 225 MAIN STREET; (HARBOR) RECOMMENDATION: Adopt Resolution No. 38-07. n 3 ® D-6 APPOINTMENT OF VOTING DELEGATE AND ALTERNATES AT THE LEAGUE OF CALIFORNIA CITIES ANNUAL CONFERENCE BUSINESS MEETING; (ADMINISTRATION) RECOMMENDATION: Select a voting delegate and two alternate voting delegates to vote at the League of California Cities Annual Conference Business Meeting on September 8, 2007. D-7 CONSIDERATION OF CONTRACT TO COMPLETE A COMPARATIVE STUDY OF CITY COST . EFFICIENCY AND EFFECTIVENESS; (ADMINISTRATION) RECOMMENDATION: Consider contract to complete a comparative study of City cost efficiency and effectiveness, and direct staff accordingly. D-8 RESPONSE TO 2006-2007 GRAND JURY FINAL REPORT; (CITY ATTORNEY) RECOMMENDATION: Review and evaluate the findings and recommendations of the 2006-2007 Grand Jury Final Report as they relate to the City, and direct staff to forward Council's action to the Presiding Judge of the Superior Court. ® D-9 AMENDMENT TO CERTAIN JOB SPECIFICATIONS; (ADMINISTRATION) RECOMMENDATION: Approve the amended job specification for the Harbor Operations Manager and supplemental job description for the existing Wastewater Division Manager. E. ADJOURNMENT THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TUVIE 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 DISABI FI ES 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. S ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JULY 9, 2007 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Peters called the meeting to order at 6:00 p.m. PRESENT: Janice Peters Mayor Melody DeMeritt William Peirce Betty Winholtz ABSENT: Rick Grantham STAFF: Robert Hendrix Andrea Lueker Robert Schultz Bridgett Bauer Rick Algert Bruce Ambo Janeen Burlingame John DeRohan Mike Pond Susan Slayton ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE Councilmember Councilmember Councilmember Councilmember City Manager Assistant City Manager City Attorney City Clerk Harbor Director Public Services Director Management Analyst Police Chief Fire Chief Finance Director PLEDGE OF ALLEGIANCE MAYOR'S REPORTS & ANNOUNCEMENTS CLOSED SESSION REPORT — There was no Closed Session report. PUBLIC COMMENT Keith Taylor stated the Fire Muster was a great success, and thanked those who supported this event. He said $1,500 is being submitted to the Ann Rausch Bum Foundation Youth Summit from this event. The following people expressed support for Items C-1 and C-2 noting the importance of adopting an ordinance to save trees since they are habitats for local birds and butterflies; they provide sun and wind barriers; and should be protected as part of the City's historic landmarks: Dan Konecht, Bill Woodson, Roger Ewing, Joey Racano, David Nelson, Debbie Heifel, Bev Hardy, Susan Shaw, Nancy Dunn, Beverly Abbey, Bob Tefft, Michael Durick, Noah Smukler, Nancy Bast, Mary Jo DeSio, Lionel Johnston, Ray McKelligott and Susan Heinemann. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JULY 9, 2007 The following people expressed concern with Item D-5 noting this lease site is a danger to the public and a liability; it creates noise pollution; it has a parking problem; and the City should charge in -lieu parking fees or hold the developer accountable for providing the spaces necessary for this location: Dorothy Cutter, Candy Goettich, Gary Freeman, and Michael Durick. Lynda Merrill expressed concern with the water leak at Morro Bay Golf Course, and requested the City consider assisting with this problem because this is a revenue source for the City. Joan Solu thanked those who helped with the Ride of a Lifetime on the last day of school at Del Mar School. David Nelson thanked those who supported CAPE during the discussions on expansion of the power plant. He said the second circuit court denied a re -hearing on the phase two ordinances, which is a huge victory and proves the power plant is harming the estuary. Mr. Nelson stated the lot on Bonita and Main Street should be kept as commercial property. ® Noah Smukler addressed the City's dependency for water from the State Water Project and noted the Surfrider Foundation has been promoting the improvements and protection of the City's current water supply and looking into the future with other water supplies. He supports the City as it moves forward with the upgrade to the Wastewater Treatment Plant with tertiary treatment and a future reclamation program in providing more water for the City. Ray McKelligott expressed support for the appeal filed on the Planning Commission decision to allow the removal of the eucalyptus trees on Dunes Street. Gary Raine expressed support for private property rights noting that there are cases where trees can cause damage to a person's property and they should be able to remove these trees. Mayor Peters closed the hearing for public comment. Mayor Peters called for a break at 7:28 p.m.; the meeting resumed at 7:40 p.m. DECLARATION OF FUTURE AGENDA ITEM Councilmember DeMeritt requested to agendize discussion on historic preservation as reported in the Grand Jury Report; Councilmember Winholtz concurred. 2• ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JULY % 2007 Mayor Peters requested to agendize the review of the City's travel reimbursement policy; Councilmember Peirce and Councilmember DeMeritt concurred. MOTION: Councilmember.DeMeritt moved the City Council direct staff to place the discussion on water connection (impact) fees on the August 13, 2007 City Council meeting agenda. The motion was seconded by Councilmember Winholtz and carried unanimously. (4-0) 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 JUNE 25, 2007 REGULAR CITY COUNCIL MEETING; (ADMINISTRATION) Councilmember DeMeritt requested the following amendment to the minutes of June 25, 2007 City Council meeting under Future Agenda Items: ® "Councilmember DeMeritt requested to agendize a discussion of water conservation as it relates to Municipal Code 13-04 Section VII to see what Council should do to start mandatory conservation measures. She also requested that Council agendize this for the July meeting." MOTION: Councilmember Winholtz moved the City Council approve Item A -I of the Consent Calendar as amended. The motion was seconded by Councilmember Peirce and carried unanimously. (4-0) B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 NEW FUTURES REPORT ON PHASE I — HISTORY, LAND USE, AND COMMUNITY DESIRES FOR FUTURE USES OF POWER PLANT SITE; (COUNCIL) City Attorney. Robert Schultz stated the NEW Futures Committee was appointed by the City Council on January 25, 2006. Soon after appointment, the Committee divided into four sub -committees designed to address separate topics of importance in evaluating any alternative use of the power plant property: site, regulators, communications, and finance. The Committee members have been working diligently on their assignment since the Committee's formation and are now providing Council with their final report. Mr. Schultz recommended the Council review this final report from the NEW Futures Committee and ® provide direction. 3 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JULY 9.2007 Michael Lucas shared the history of the Morro Bay Power Plant site. Sandra Brazil shared redevelopment scenarios of the Mono Bay Power Plant site (Appendix A of the New Futures Report.) Rachel Aljilani addressed case studies of adaptive reuse and sustainable approaches to redevelopment (Appendix C of the New Futures Report.) Ross Stilleson reviewed the structure of the power plant, regional identity and historical preservation. Mayor Peters opened the hearing for public comment. Joey Racano thanked the Committee for their hard work in preparing this report. David Nelson stated it would be wonderful if the City could become one and focus its energy on allowing these ideas to come true. He said the detriment of what this plant is ® causing to the estuary should be stopped. Noah Smukler addressed the impact the power plant has on the health of the estuary. He expressed gratitude to the Committee for their hard work on this report, and stated these are the visions necessary as a society on this planet to go into the future. Ken Haggard addressed the historical pattern of the power plant. Bill Woodson stated he has worked in this industry, and although he would like to see these changes, the cost to the City would be phenomenal. He said there should be a new power plant with a Memorandum of Understanding that it provides the property with a cleared site in order to provide the resources shared by the Committee. Mayor Peters closed the public comment hearing. Councilmember DeMeritt acknowledged the NEW Futures Committee for all of their hard work, and recommended forming a liaison committee with two members from NEW Futures, two members of the City Council and two City management employees in order to look at the future of the site with the owners of the power plant. Councilmember Peirce stated he supports appointing a liaison committee to keep investigating the power plant site and maintain conversations with the power plant company. E MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JULY 912007 Councilmember Winholtz stated the community would benefit from the Committee's hard work, and also supports appointment of a liaison committee to continue dialogue with the power plant company. Mayor Peters expressed gratitude for the report prepared by the NEW Futures Committee that includes illustrations of possibilities of the power plant site that are wonderful. The City Council requested the appointment of a liaison committee be agendized on the August 27 h agenda. Council discussed financial funding and monies designated for specific items that roll back into the General Fund at the end of the fiscal year. MOTION: Councilmember DeMeritt moved the City Council direct staff to charge the Council's operating budget to pay for printing costs of the NEW Futures Committee Report. The motion was seconded by Councilmember Peirce and carried unanimously. (4-0) B-2 ORDINANCE NO. 530 ADOPTING ADMINISTRATIVE CITATION ® PROGRAM FOR MUNICIPAL CODE VIOLATIONS - FIRST READING/INTRODUCTION; (CITY ATTORNEY) City Attorney Robert Schultz stated many cities, including Morro Bay, have become increasingly frustrated with using the criminal citation process for code enforcement violations. The two primary tools currently used by enforcement officers to gain compliance are criminal citations and/or civil abatements. Both typically involve considerable staff time and court proceedings. As an alternative, City staff has prepared an Administrative Citation Program Ordinance, which would allow enforcement of all City code violations. through a City -administered citation or administrative hearing proceeding. The new Administrative Citation Program Ordinance would make the City's code enforcement program more effective using existing resources. The proposed new ordinance would reduce the cost of code enforcement and allow the City to recover some of its costs. Mr. Schultz recommended the City Council review and move for first reading and introduction of Ordinance No. 530 by number and title only. Mayor Peters opened the hearing for public comment. John Barta stated the proposed Ordinance is fundamentally flawed noting it does not address presumption of innocence. He said a fine must be paid prior to a hearing and rules of evidence do not apply. Mr. Barta stated the right of discovery is not allowed in a hearing, and there are no due process rights addressed in this proposed Ordinance. 5 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — JULY 9, 2007 Stuart McElhinney stated a complaint driven process should be out of the purview of any law enforcement process because generally complaints are disputes between neighbors. He said there is nothing in the Ordinance that addresses voluntary cooperation. Mr. McElhinny stated since this is an enforcement driven process, there should be opportunity for rebuttal. John Lemons referred to Section Four of the Ordinance and stated this section deals with the potential for any terms or conditions of any prior City ordinance(s), motion, resolution, rule, or regulation governing the same subject matter can be repealed. He said it is inconceivable to approve to repeal an unidentifiable amount of inconsistencies in an unidentifiable amount of ordinances. Mayor Peters closed the public comment hearing. Councilmember Winholtz stated she attended a hearing at Animal Regulations that appeared typical to this proposed Ordinance, and said it was efficient and fair. She said she supports including a warning to allow for the correction of the situation. ® Mayor Peters stated a warning should be sufficient to resolve the situation. She said this Ordinance should allow citizens to respect the rules and regulations of the City and allow for some control. MOTION: Councilmember Winholtz moved the City Council approve the first reading and introduction of Ordinance No. 530 adopting Administrative Citation Program for Municipal Code Violations with an amendment to Section 4 changing the last word "repealed" to "superceded". The motion was seconded by Councilmember DeMeritt and carried unanimously. (4-0) City Manager Robert Hendrix read Ordinance No. 530 by number and title only. B-3 ORDINANCE NO. 532 AMENDING CHAPTER 12. OF THE MORRO BAY MUNICIPAL CODE REGARDING CONSTRUCTION HOURS - FIRST READING/INTRODUCTION; (CITY ATTORNEY) This item was continued to the August 13, 2007 City Council meeting. E ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JULY 9, 2007 C. UNFINISHED BUSINESS C-1 ORDINANCE NO. 531 AMENDING SECTION 12.08.070 OF CHAPTER 12.08 OF THE MORRO BAY MUNICIPAL CODE PROHIBITING THE TRIMMING AND CUTTING OF CITY TREES DURING NESTING SEASON; SECOND READING/ADOPTION; (CITY ATTORNEY) City Attorney Robert Schultz stated at the June 25, 2007 Council meeting, Council accepted public comment and then moved for first reading and introduction of Ordinance No. 531 amending Section 12.08.070 - Tree Removal by City for Cause as follows: ... Except in the case of an emergency as determined by the Director of Public Services, no tree shall be trimmed or removed during nesting season, which is ' in the tree. The nesting season is generalb, February 1 through June 30. Mr. Schultz recommended the City Council approve the second reading and adoption of Ordinance No. 531. ® MOTION: Councilmember Winholtz moved the City Council approve the second reading and adoption of Ordinance No. 531 amending Section 12.08.070 of Chapter 12.08 of the Morro Bay Municipal Code prohibiting the trimming and cutting of City trees during nesting season. The motion was seconded by Mayor Peters and carried unanimously. (4-0) C-2 RESOLUTION NO. 39-07 AMENDING MAJOR VEGETATION GUIDELINES; (CITY ATTORNEY) City Attorney Robert Schultz stated at the June 11, 2007 City Council meeting, Council directed staff to bring back a resolution amending the Major Vegetation Removal, Replacement and Protection Guidelines to prohibit tree removal during nesting season. He recommended the Council amend the guidelines as follows: C. Vegetation Protection Policy: 1. Except in the case of an emergency as determined by the Director of Public Services, no tree should be removed during nesting season, which is February 1 through June 30. Mr. Schultz recommended the City Council adopt Resolution No. 39-07 amending the ® Major Vegetation Guidelines. 7 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JULY 9, 2007 MOTION: Councilmember Peirce moved the City Council adopt Resolution No. 39-07 amending the Major Vegetation Guidelines. The motion was seconded by Councilmember Winholtz and carried unanimously. (4-0) MOTION: Councilmember Peirce moved the City Council designate the eucalyptus trees on Dunes Street as City landmark trees. The motion was seconded by Councilmember DeMeritt and carried unanimously. (4-0) MOTION: Councilmember DeMeritt moved the City Council add the following to the Major Vegetation Guidelines: 20 Will not adversely affect the scenic beauty or. the character of the surrounding neighborhood. The motion was seconded by Councilmember Winholtz. Councilmember DeMeritt amended her motion by stating the Major Vegetation Guidelines will not adversely affect the character of the surrounding neighborhood (striking scenic beauty); Councilmember Winholtz accepted the amendment. VOTE: (4-0) ® D. NEW BUSINESS 11 D-1 TRANSIT TRIENNIAL PERFORMANCE AUDIT PRESENTATION; (ADMINISTRATION) Management Analyst Janeen Burlingame stated the overall finding of the performance audit is the Morro Bay Dial -a -Ride (MBDAR) continues to provide an essential transportation service in the City, and the City has been successful in keeping the costs of the transit service down. Although ridership has decreased slightly and there has been a reduction in the system's efficiency and productivity, MBDAR remains a very productive and efficient service.when compared to other demand response systems operating in San Luis Obispo County. In addition, the audit found that the trolley is also operating efficiently. Ms. Burlingame introduced Ann Lawler who performed the audit, to give Council an overview of the audit report. Ann Lawler, Lawler Consulting, reviewed the Transit Triennial Performance Audit Report for Council information. 8 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JULY 9, 2007 MOTION: Councilmember Winholtz moved the City Council receive and file the Transit Triennial Performance Audit Report, and request staff return to Council in September 2007 with options of pros and cons on the recommendations. provided by the auditor. The motion was seconded by Councilmember Peirce and carried unanimously. (4-0) Mayor Peters called for a break at 9:29 p.m.; the meeting resumed at 9:35 p.m. D-2 QUARTERLY INVESTMENT REPORT; (FINANCE) This item was pulled from the agenda_ D-3 SCHEDULE COUNCIL STUDY SESSION ON PARKING MANAGEMENT PLAN REPORT; (PUBLIC SERVICES) City Manager Robert Hendrix stated the Parking Management Plan was continued for ftrrther consideration at the June 25, 2007 City Council meeting. A number of potentially significant technical and policy issues were raised. Staff thought the Council might want to focus specifically on the issues raised in the Parking Management Plan without the time ® pressure and distractions of other agenda items. Therefore, staff is asking the Council to consider scheduling a Study Session to thoroughly discuss and consider the Parking Management Plan. Consensus of the City Council was to schedule a Study Session to consider the Parking Management Plan with the Planning Commission on August 20, 2007 at 4:00 p.m. No further action was taken on this item. D-4 RESOLUTION NO. 37-07 APPROVING TWO SUBLEASE AGREEMENTS FOR LEASE SITE 124-128/124W-128W LOCATED AT 1215 EMBARCADERO; (HARBOR) Harbor Director Rick Algert stated the current leaseholder for Lease Site 124-128/124W- 128W, Darby Neil, is requesting approval of a sublease agreement with Surachete Korwais, doing business as the Thai Boat and Seafood Market. Mr. Korwais has been operating the Thai Boat and Seafood Market from a portion of Lease Site 128 under a sublease agreement since 1999, which expired when the lease was assigned to Mr. Neil and has been operating under a holdover in the interim. Due to the fact that this lease site is in the process of submitting plans for improvements on the site, the sublease is for one-year with a holdover provision not to extend beyond the term of the master lease (6-30-12). Mr. Algert recommended the City Council adopt Resolution No. 37-07 approving two sublease ® agreements for portions of Lease Site 124-128/124W-128W located at 1215 Embarcadero 0 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING, — JULY 9, 2007 between Darby Neil and Virg's Landing, Inc., and Darby Neil and Surachete Korwais doing business as the Thai Boat and Seafood Market. MOTION: Councilmember Peirce moved the City Council adopt Resolution No. 37-07 approving two sublease agreements for Lease Site 124-128/124W-128W located at 1215 Embarcadero between Darby Neil and Virg's Landing, Inc., and Darby Neil and Surachete Korwais doing business as the Thai Boat and Seafood Market. The motion was seconded by Councilmember DeMeritt and carried unanimously. (4-0) D-5 RESOLUTION NO. 38-07 APPROVING AMENDMENT #1 TO THE LEASE AGREEMENT FOR LEASE SITE 34W LOCATED ADJACENT TO 225 MAIN STREET; (HARBOR) Harbor Director Rick Algert stated Lease Site 34W is a water lease site located south of Tidelands Park between the large wooden "cannery" dock and Bayside Marina. Currently, Lease Site 34W contains a 4-slip berthing system and the tenant has committed to completing additional repairs and improvements within the next two years of the proposed ® 10 year lease extension. The City encourages continuation and enhancement of marine - dependent uses such as boat slips and boat repair facilities, and Mr. Algert recommended the City Council adopt Resolution No. 38-07 approving amendment #1 to the lease agreement for the Lease Site 34W located adjacent to 225 Main Street. MOTION: Mayor Peters moved the City Council continue this item to the August 13, 2007 City Council Closed Session meeting. The motion was seconded by Councilmember Winholtz and carried unanimously. (4-0) D-6 APPOINTMENT OF VOTING DELEGATE AND ALTERNATES AT THE LEAGUE OF CALIFORNIA CITIES ANNUAL CONFERENCE BUSINESS MEETING; (ADMINISTRATION) MOTION: Councilmember Peirce moved the City Council schedule the review of legislative items placed for consideration at the Annual League of California Cities Business Meeting. The motion was seconded by Councilmember Winholtz and carried unanimously. (4-0) MOTION: Councilmember Peirce moved the City Council appoint Mayor Peters to serve as voting delegate at the League of California Cities Annual Conference Business Meeting. The motion was seconded by Councilmember DeMeritt and carried unanimously. (4-0) 10 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JULY 9, 2007 MOTION: Councilmember Peirce moved the City Council appoint Councilmember Winholtz as alternate voting delegate at the League of California Cities Annual Conference Business Meeting. The motion was seconded by Mayor Peters and carried unanimously. (4-0) D-7 CONSIDERATION OF CONTRACT TO COMPLETE A COMPARATIVE STUDY OF CITY COST EFFICIENCY AND EFFECTIVENESS; (ADMINISTRATION MOTION: Councilmember DeMeritt moved the City Council continue the consideration of contract to complete a comparative study of City cost efficiency and effectiveness to the August 13, 2007 City Council Meeting. The motion was seconded by Councilmember Peirce and carved unanimously. (4-0) D-8 RESPONSE TO 2006-2007 GRAND JURY FINAL REPORT; (CITY ATTORNEY) ® City Manager Robert Hendrix stated the 2006/2007 San Luis Obispo County Grand Jury Final Report includes references, findings and. recommendations about the services and operations of the City of Morro Bay. The California Penal Code requires that each agency to which findings and recommendations are directed must, within 90 days of the release of the report, respond to the Presiding Judge of the Superior Court with comments on the findings and recommendations in the report. The Final Report addresses the issue of Historic Preservations and "for comparison purposes" reviewed the processes and procedures in place within the City of Morro Bay to preserve cultural and architectural resources. Mr. Hendrix recommended the City Council: 1) review. the Final Report; 2) evaluate the findings and recommendations as they relate to the City; 3) approve this staff report with attachments as the response of the City Council to the Presiding Judge; and, 4) direct the City Clerk to forward a copy of this report with attachments and the minute order reflecting City Council action on this item to the Presiding Judge of the Superior Court. MOTION: Councilmember Peirce moved the City Council approve this staff report with attachments as the response of the City Council to the Presiding Judge; and direct the City Clerk to forward a copy of this report with attachments and the minute order reflecting City Council action on this item to the Presiding Judge of the Superior Court. The motion was seconded by Councilmember DeMeritt and carried unanimously. (4-0) C MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JULY 9, 2007 D-9 AMENDMENT TO CERTAIN JOB SPECIFICATIONS; (ADMINISTRATION) Assistant City Manager Andrea Lueker submitted for Council review, consideration and approval an amended job specification for the Harbor Operations Manager, and a supplemental job description for the existing Wastewater Division Manager to encompass the wastewater treatment plant upgrade project duties. Councilmember Winholtz stated she would like to see the old job description as a comparison, and she is not ready to discuss this item. Councilmember DeMeritt expressed concern with the issue of finances and equity of all employees. MOTION: Mayor Peters moved the City Council approve the job specification for the Wastewater Division Manager. The motion was seconded by Councilmember Peirce and carried unanimously. (4-0) MOTION: Mayor Peters moved the City Council approve the job specification for the Harbor Operations Manager. The motion was seconded by Councilmember Peirce and carried with Councilmember Winholtz voting no, (3-1) MOTION: Mayor Peters moved the City Council direct staff to refrain from salary increases until the Council has reviewed the entire salary structure of the City. The motion was seconded by Councilmember DeMeritt and carried unanimously. (4-0) mgmI mg lkyj1CV1111 The meeting adjourned at 11:01 p.m. Recorded by: Bridgett Bauer City Clerk r L 12 ® City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life. The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING — JUNE 25, 2007 CLOSED SESSION — JUNE 25, 2007 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. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. 11 PUBLIC SESSION — JUNE 25, 2007 ® 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 JUNE 11, 2007 CITY COUNCIL MEETING; (ADMINISTRATION) ® RECOMMENDATION: Approve as submitted. B-1 APPEAL OF A PLANNING COMMISSION APPROVAL OF A BED AND BREAKFAST/MIXED-USE PROJECT LOCATED AT 214 BEACH STREET; (PUBLIC SERVICES) RECOMMENDATION: Uphold the Planning Commission conditions of approval and deny the appeal. B-2 FURTHER DISCUSSION OF ALTERNATIVE TREATMENT PROCESSES FOR THE WASTEWATER TREATMENT PLANT UPGRADE PROJECT AND CONSIDERATION TO APPROVE A SPECIFIC TREATMENT ALTERNATIVE PROCESS FOR THE WASTEWATER TREATMENT PLANT UPGRADE; (PUBLIC SERVICES) RECOMMENDATION: Provide direction to staff on a preferred treatment alternative or identify areas for further study. B-3 CONSIDERATION OF THE PARKING MANAGEMENT AND IMPLEMENTATION PLAN; (PUBLIC SERVICES) RECOMMENDATION: Adopt the Parking Management and Implementation Plan, or provide further direction for modification. ® B-4 ORDINANCE NO. 530 ADOPTING ADMINISTRATIVE CITATION PROGRAM FOR MUNICIPAL CODE VIOLATIONS; FIRST READING/INTRODUCTION; (CITY ATTORNEY) RECOMMENDATION: Approve first reading and introduction of Ordinance No. 530 by number and title only. B-5 ORDINANCE NO. 531 AMENDING SECTION 12.08.070 OF CHAPTER 12.08 OF THE MORRO BAY MUNICIPAL CODE PROHIBITING THE TRIMMING AND CUTTING OF CITY TREES DURING NESTING SEASON; FIRST READING/INTRODUCTION; (CITY ATTORNEY) RECOMMENDATION: Approve first reading and introduction of Ordinance No. 531 by number and title only. B-6 RESOLUTION NO. 35-07 DIRECTING THE LEVY OF THE ANNUAL ASSESSMENT FOR THE CLOISTERS LANDSCAPE AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT; (RECREATION & PARKS) RECOMMENDATION: Adopt Resolution No. 35-07. 3 B-7 RESOLUTION NO. 36-07 DIRECTING THE LEVY OF THE ANNUAL ® ASSESSMENT FOR THE NORTH POINT NATURAL AREA LANDSCAPE AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT; (RECREATION & PARKS) RECOMMENDATION: Adopt Resolution No. 36-07. C. UNFINISHED BUSINESS C-1 RESOLUTION NO. 34-07 AMENDING MAJOR VEGETATION GUIDELINES; (CITY ATTORNEY) RECOMMENDATION: Adopt Resolution No. 34-07. C-2 2006 ANNUAL WATER REPORT UPDATE; (PUBLIC SERVICES) RECOMMENDATION: Adopt the same water allocation program as last year. D. NEW BUSINESS —NONE. E. ADJOURNMENT ® THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TIME SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 772-6200 FOR FURTHER INFORMATION. COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST AT CITY HALL, LIBRARY, AND MILLS STATIONERY. IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. 4 ® MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION — JUNE 25, 2007 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Peters called the meeting to order at 5:00 p.m PRESENT: Janice Peters Mayor Melody DeMeritt Councilmember Rick Grantham 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 DeMeritt 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. The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:43 p.m. MOTION: Councilmember Peirce moved the meeting be adjourned. The motion was seconded by Councilmember DeMeritt and unanimously carried. (5-0) The meeting adjourned at 5:43 p.m. 2 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 25, 2007 VETERANS MEMORIAL HALL - 6:00 P.M. u Mayor Peters called the meeting to order at 6:00 p.m PRESENT: Janice Peters Mayor Melody DeMeritt Councilmember Rick Grantham Councilmember William Peirce Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix Andrea Lueker Robert Schultz Bridgett Bauer Rick Algert Bruce Ambo John DeRohan Bruce Keogh Rob Livick Mike Pond Mike Prater Susan Slayton City Manager Assistant City Manager City Attorney City Clerk Harbor Director Public Services Director Police Chief WWTP Division Manager City Engineer Fire Chief Planning Manager 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 Cathy Novak and Janice House shared some special attributes about Grace Melton. Hank Roth announced the next Neighborhood Watch informational meeting would be held on June 27, 2007, and the topic will be on Seniors and Crime Prevention. Biz Steinberg, Director of the Economic Opportunity Commission, gave an update on events sponsored by the EOC in July. She thanked the City for the funding received this next fiscal year, and the representation of Councilmember Grantham who serves on this Commission. 2 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 25, 2007 Don Maruska stated he has had the pleasure to work with the San Luis Obispo Science and Eco-System Alliance (SLOSEA) who will be obtaining data on areas such as the watershed, bay and estuary and near coastal region, and how to link that with the people who live here and help in revitalizing and sustaining the economy here. Professor Lynwood Pendleton, UCLA, stated he and colleagues are working to collect historical and on -going data on economic activities that depend on the waterfront, estuary and local ocean. He said last year they collected information from businesses, the harbor district and commercial fishermen on harbor activities; this summer they will be collecting information from visitors and residents, and businesses that cater to these people. Susan Brown, MV Transportation, stated they have obtained a grant through San Luis Regional Ride Share and with those funds donated free Dial -A -Ride tickets to seniors. She addressed the Parking Management Plan and requested parking limitations on the Embarcadero, and the placement of clear parking and trolley stop signs. She expressed opposition to angled parking on the Embarcadero. Matt Weedman stated trees should be left alone if they are not causing any problems and ® there is nothing wrong with them. Lynda Merrill addressed Item B-2 (Further Discussion of Alternative Treatment Processes for the Wastewater Treatment Plant Upgrade Project and Consideration to Approve a Specific Treatment Alternative Process for the Wastewater Treatment Plant Upgrade), and expressed concern with the budget and what the City can afford, as well as the cost to the public. She said the Western Snowy Plovers are building nests on the beach, and requested people continue to protect them. Ms. Merrill expressed concern with the proposed one-way streets and she is not in favor of the roundabout. Ed Biaggini expressed support for SLOSEA and said he would be available if they need help from the business community. He addressed Item B-3 (Consideration of the Parking Management and Implementation Plan) stating the Community Promotions Committee will be developing a city map to show public parking and trolley routes. Mr. Biaggini suggested the trolley brochure be printed on a heavier -stock paper. Reg Baldwin stated the police department is aware of a drug trafficking problem in his neighborhood, and was told to call the police when there was suspicious activity. He called the police department last week and the police officer said his partner was transporting a drunk driver to the County jail and there was no way he could protect and serve due to lack of manpower at that time. Mr. Baldwin stated the police department is the lowest paid in the County and have morale and manpower shortage problems. He ® requested Council place police protection and law enforcement as number one priority on the agenda. 3 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 25, 2007 Louise Baldwin stated she has witnessed a methamphetamine problem in her neighborhood within the last six months. She said she has witnessed safety hazards that have occurred and has concern with the safety of her family. Ms. Baldwin stated meth is on the rise in Morro Bay, and for every pound of meth there is six pounds of toxic waste, and expressed concern with where the toxic waste is going. She said an increase in police officers would make an impact in serving and protecting the community. Louise Baxley stated the City needs more police officers so there is a patrolman available when there is a call for help. James Henry asked if the restrooms would be open on the Embarcadero during the 4'" of July celebration. Mayor Peters closed the hearing for public comment. Mayor Peters called for a break at 6:58 p.m.; the meeting resumed at 7:11 p.m. ® DECLARATION OF FUTURE AGENDA ITEMS Ll Councilmember DeMeritt requested to agendize a discussion of water conservation as it relates to Municipal Code 13-04 Section VII to see what Council should do to start mandatory conservation measures. She also requested that Council agendize this for the July meeting. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES FOR THE JUNE 11, 2007 CITY COUNCIL MEETING; (ADMINISTRATION) MOTION: Councilmember Peirce moved the City Council approve Item A-1 of the Consent Calendar. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) 2 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 25, 2007 B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 APPEAL OF A PLANNING COMMISSION APPROVAL OF A BED AND BREAKFAST/MIXED-USE PROJECT LOCATED AT 214 BEACH STREET; (PUBLIC SERVICES) Planning Manager Mike Prater stated on February 5, 2007, the Planning Commission considered the proposed application at a regularly scheduled public hearing. During that hearing staff suggested the Commissioners specifically address the mix of uses proposed and identify any other areas of concern and continue the hearing. Two of the Commissioners had conflicts because they reside within proximity to the project site. Ultimately the Commission continued the project to address issues including signage, lighting, outdoor use, color/materials and utilities. The Commission held a second public hearing on May 7, 2007, the Planning Commission voted 2-1 to conditionally approve the project with added conditions. Based on policy, a 2-1 vote does not qualify as a quorum. Regardless, Steve Semas and Carla Borchard appealed the Planning Commission decision. Because there was a lack of Planning Commission quorum, the City Council considered this project as a proposal and not an appeal hearing, and will make the findings for the project. ® Mayor Peters opened the hearing for public comment. Jeff Edwards, representing the applicant, reviewed the proposed project noting it would be a remodel of an existing commercial building into two new commercial spaces downstairs as retail and cafd, and occupy an area less than 125 square feet for sidewalk cafd purposes and construct a new two -car garage structure at the rear. The second floor space will include a bed and breakfast style caretakers residential unit with a guest suite; this space will also allow office space for the cafd, and caretakers' quarters. The project was grandfathered twelve parking spaces with the re -use of the building based on prior uses allowed and was approved to make a payment of four spaces as in -lieu fees to meet the remaining peak demand uses. Steve Semas, appellant, stated he and Carla Borchard have appealed the Planning Commission decision and contend the project lacks the amount of parking to meet the needs of the proposed multi -businesses, and question the use of the grandfather parking clause based on building square footage and not location or original use. They also question zoning compliance relative to the retail store, guest suite, living quarters, and coffee house; and, have concerns with pedestrian and traffic safety. Mr. Semas requested the City Council deny the project as presented. Lynda Merrill asked if this project were approved, who would be responsible if there was ® an accident. She said the incline of Beach Street approaching this proposed project would be dangerous. 5 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 25, 2007 Carla Borchard expressed concern with the use of the parking lot that serves her restaurant across the street from this site. She said parking in -lieu fees would not resolve the parking problem, and the proposal does not support enough parking for the uses proposed.. Ed Biaggini stated parking and traffic is an issue at this location; otherwise, the proposed project is a good one. Gerald Luhr, Planning Commissioner, stated the parking in the rear of this building was going to be maintained as private parking, and the use of in -lieu fees was going to be used to mitigate public parking. Roger Ewing expressed opposition to this project based on the location. He said the caretaker's unit is too large, and the proposed outdoor seating inhibits pedestrian safety. Mr. Ewing stated the proposed project is a threat to the safety of the neighborhood and the parking problem in this location. ® John Barta stated the dilemma with this project is with the grandfathered parking and the parking required by ordinance, which is fundamentally unbalanced. L] Hawk Jackson stated he was approached to restore the vintage fixtures and furniture in this building. He said the owner of this building has great ideas on renovating this building that will bring in tourists and benefit the City. Jeff Edwards stated the applicant has not proposed parking in the lot across the street. He said he has not been aware of traffic problems at this location. Mr. Edwards stated a twelve -inch sidewalk is wide enough for outside seating and a bike rack. He said there are 30 on -street parking spaces. Mr. Edwards requested the City Council allow the owner to make an investment in the City. Mayor Peters closed the public comment hearing. Councilmember DeMeritt stated her concerns with this project are parking, safety, and loss of transient occupancy tax. She said it is the wrong project for this location. Councilmember DeMeritt stated the proposal should devote more space upstairs to a bed and breakfast with regular parking in the back and in -lieu fees paid up front. She said she would like to have a traffic study prepared for this location. 0 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 25, 2007 Councilmember Grantham stated this proposed project would take a building that is presently an eyesore and make it look better. He said he has concerns with safety and the lack of parking. Councilmember Grantham stated there should be three parking spaces and a handicap parking space in the rear; and, the traffic entering and leaving the building should be addressed with perhaps a right turn only. Councilmember Peirce stated he would support increasing parking spaces instead of collecting in -lieu fees, and maximize spaces in the off-street area. He said he would like to see a higher percentage of commercial use and less area used for the caretakers unit. Councilmember Winholtz stated a 4-way stop at the intersection to the east should be required, and a traffic study should be provided for both vehicles and pedestrians. She said she does not support this project because of the traffic safety for vehicles and pedestrians. Councilmember Winholtz stated public parking should be provided in the rear. She said the project should abide by code for mixed -use percentages, and it should meet with garbage and health standards. Mayor Peters stated added trees to this site would impede with the sight distance. She ® expressed concern with the type of business proposed for this location. Mayor Peters stated more space should be devoted to the bed and breakfast; parking should be provided in the rear for limited uses; and, a traffic study is needed. MOTION: Councilmember Peirce moved the City Council continue the public hearing on the consideration of a bed and breakfast/mixed-use project located at 214 Beach Street to the August 27, 2007 City Council meeting. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) Mayor Peters called for a break at 8:50 p.m.; the meeting resumed at 9:02 p.m B-2 FURTHER DISCUSSION OF ALTERNATIVE TREATMENT PROCESSES FOR THE WASTEWATER TREATMENT PLANT UPGRADE PROJECT AND CONSIDERATION TO APPROVE A SPECIFIC TREATMENT ALTERNATIVE PROCESS FOR THE WASTEWATER TREATMENT PLANT UPGRADE; (PUBLIC SERVICES) Wastewater Treatment Plant Division Manager Bruce Keogh stated this item is a continuation from the June 11, 2007 City Council meeting. At that meeting, there was a continued discussion on the various alternative treatment processes for the wastewater treatment plant upgrade project. Staff provided a spreadsheet showing the impacts to the isresidential and commercial sewer rates for the various treatment alternatives. The Council requested that the item be placed on this agenda for furlher discussion and ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 25, 2007 selection of a preferred tertiary treatment alternative. Mr. Keogh recommended the City Council provide direction to staff on a preferred treatment alternative or identify areas for further study. Mayor Peters opened the hearing for public comment. Noah Smukler stated the Surfrider Association advocates the highest level of treatment that will create the purest water source. He said the overall goal is to eliminate discharge into the ocean through a reclamation project. Ed Biaggini read a letter from Stan Trapp of Marina Square noting Council should decide on the least expensive tertiary treatment. Mr. Biaggini spoke for the Motel & Restaurant Association requesting the City consider the cost to the local businesses in determining an affordable treatment. John Barta stated the rates are going to be higher than originally stated by the City. He said if 50% of citizens' mail in their opposition to the rate increase, the City would not be able to increase the fees. ® Joey Racano stated Council should approve the MBR treatment with reclamation plan to keep the environment healthy. He said if the City does not go with a higher level of treatment, there is a possibility the City will have to go through this process again. Mr. Racano stated the City would be eligible for financial assistance if it goes with tertiary treatment with a reclamation plan. Mayor Peters closed the public comment hearing. Councilmember Winholtz stated the rates are increasing not only because of the wastewater treatment plant, but also because of the infrastructure. She said she would like the best quality of water for those who use the ocean for recreation and also for the wildlife. Councilmember Winholtz expressed concern with the odor caused by an Oxidation Ditch. Councilmember Peirce stated he supports the Oxidation Ditch and Filter, which would be more affordable for the ratepayers. Councilmember Grantham stated he supports the Oxidation Ditch and Filter because it is more affordable. Councilmember DeMeritt stated she knows the MBR would remove more pathogens and other contaminants; however, she is concerned with the cost to the ratepayers. E MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 25, 2007 Mayor Peters stated MBR would create rates that are not affordable for the citizens, and she supports the Oxidation Ditch and Filter. MOTION: Councilmember Peirce moved the City Council direct staff to move forward with the Oxidation Ditch and Filter treatment. The motion was seconded by Councilmember Grantham and carried with Councilmember Winholtz voting no. (4-1) B-3 CONSIDERATION OF THE PARKING MANAGEMENT AND IMPLEMENTATION PLAN; (PUBLIC SERVICES) Public Services Director Bruce Ambo stated the overall work program for the Parking Management Program was set in place by the City Council in October 2005 as a three- part program involving: 1) Circulation/Partial One -Way Embarcadero; 2) Delivery and Loading Options; and 3) the preparation of the Parking Management Plan itself. In January 2006, the Council held a public hearing on changing the circulation on the Embarcadero, and after receiving numerous complaints from the merchants decided to bring this topic back with this Parking Management Plan. Upon further consideration of the overall Parking Management Program in February 2006, the Council decided to table ® any further discussion on changing the circulation on the Embarcadero and to go forward with the preparation of the Parking Management Plan study. The contract was awarded on April 10, 2006 to TPG Consulting for the preparation of this Parking Management Plan. It is recommended that the City Council: 1) review and provide comments on the Parking Management Plan; b) consider the Advisory Board comments and recommendations on the Parking Management and Implementation Plan; c) adopt the Parking Management and Implementation Plan or provide further direction for modifications; d) direct staff to develop the Public Information Program, Directional Signage and Expanded Trolley components of the plan; and e) return with a work program for integrating these components into the overall work program. Mary Beattie of TPG Consulting stated the downtown and Embarcadero areas were surveyed during the peak and off-peak tourist season to determine the availability of parking supply and quantify demand. The major conclusion reached in the Parking Management Plan is that there is not a parking problem in Morro Bay. There are certain isolated times during special events and during the 3-month tourist season in peak lunch time hours where it is more difficult to find a convenient parking space, but there is an ample parking supply within generally a short two -block walking distance. A number of effective implementation strategies have been identified that are imbedded in the policy framework of this plan that can be used at any time when parking conditions become more problematic. However, at this time the quick fixes for next year include strengthening the public parking information program, installing directional signage, and isadding a new trolley and route along the Embarcadero that runs from the Rock to Tidelands Park with ten minute headways. Z ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — RUNE 25, 2007 Mayor Peters opened the hearing for public comment. Valerie Seymour stated the City should take away some of the parking in the key areas of the Embarcadero to encourage walking. She said recreational vehicle and bus parking should not be encouraged because they don't benefit local businesses. Ed Biaggini stated a trolley route along the Embarcadero should be considered. He said in -lieu parking fees would have an impact on development, and a shared parking plan would assist in the parking problem. John Barta suggested allowing people to make payments towards in -lieu fees to encourage business and also assist in the parking problem. Gerald Luhr, Planning Commissioner, stated the Commission suggested the plan be augmented and enhanced to include one-way traffic and angled parking in parts of the downtown area. He said this would allow for pedestrian enhancements that would create a walking district with ample parking. ® Tom Laurie stated it is premature to sign off on this plan and more public input should be allowed. He referred to commercial build -out, and the need for parking. Mr. Laurie addressed recreational vehicle parking on the Front Street parking lot. Mayor Peters closed the public comment hearing. Councilmember Grantham asked for clarification on angle parking on Morro Bay Boulevard. Councilmember DeMeritt stated there is a parking problem on the Embarcadero and one- way traffic on the Embarcadero was once discussed and tabled by Council. She said she supports parking in the north Embarcadero waterfront area that will join the Harborwalk; signs should be posted for trolley stops; there should be designated commercial loading/unloading areas; public information on the website should be expanded; the trolley brochures should be updated and include enhanced maps; and, parking on on- side of the Embarcadero should be removed. Councilmember DeMeritt stated she would like to adopt a long -tern Parking Management Plan. Councilmember Peirce stated Council should direct staff to develop the public information program with directional signage and the expanded trolley components of the plan; the "Ride the Trolley" theme on the City website and promotional site should be expanded; a third trolley route on the Embarcadero should be added; parking for those ® who cannot walk the entire Embarcadero should be maintained; and, designate parking for deliveries. 10 E MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 25, 2007 Councilmember Winholtz stated signage is needed. She said she supports a trolley route on the Embarcadero, and parking lot enhancements. Councilmember Winholtz stated she does not support angle parking or one-way traffic on Morro Bay Boulevard, and would rather pave streets than alter streets. She said the proposed plan should be altered. Mayor Peters stated there should be set delivery times from 7:00 a.m. to 11:00 am.; signage is needed; public information needs to be expanded; she supports a trolley route on the Embarcadero, and she supports the idea of shared parking. She said she would like to do something in order that in -lieu parking fees are not such a burden on businesses. MOTION: Councilmember DeMeritt moved the City Council direct staff to return with the near term goals as discussed by Council, and continue this public hearing to the August 13, 2007 City Council meeting. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) B4 ORDINANCE NO. 530 ADOPTING ADMINISTRATIVE CITATION PROGRAM FOR MUNICIPAL CODE VIOLATIONS; FIRST READINGANTRODUCTION; (CITY ATTORNEY) This item was continued to the July 9, 2007 City Council meeting. B-5 ORDINANCE NO. 531 AMENDING SECTION 12.08.070 OF CHAPTER 12.08 OF THE MORRO BAY MUNICIPAL CODE PROHIBITING THE TRIMMING AND CUTTING OF CITY TREES DURING NESTING SEASON; FIRST READING/INTRODUCTION; (CITY ATTORNEY) City Attorney Robert Schultz stated at the June 11, 2007 City Council meeting, Council directed staff to bring back the following change to the City's Tree Cutting Ordinance: Section 12.08.070 No tree shall be removed from a public right-of-way unless it interferes with the necessary improvement of the public right-of-way, the installation of public utilities or is a hazard to person or property outside the drip line of the tree at maturity, or creates such a condition as to constitute a hazard or an impediment to the progress or vision of anyone traveling on or within the public right-of-way. Mr. Schultz recommended the City Council move for fast reading and introduction of Ordinance No. 531 amending Section 12.08.070 of the Morro Bay Municipal Code entitled Tree Removal by City for Cause. 11 MINUTES - MORRO BAY CITY COUNCIL ® REGULAR MEETING — JUNE 25, 2007 Mayor Peters opened the hearing for public comment; there were no comments, and Mayor Peters closed the public comment hearing. MOTION: Councilmember Peirce moved the City Council approve the first reading and introduction of Ordinance No. 531 by number and title amending Section 12.08.070 of Chapter 12.08 of the Morro Bay Municipal Code prohibiting the trimming and cutting of City trees during nesting season. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) City Manager Robert Hendrix read Ordinance No. 531 by number and title only. B-6 RESOLUTION NO. 35-07 DIRECTING THE LEVY OF THE ANNUAL ASSESSMENT FOR THE CLOISTERS LANDSCAPE AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT; (RECREATION & PARKS) Assistant City Manager Andrea Lueker stated at the May 29, 2007 City Council meeting, Council adopted Resolution No. 28-07 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 25, 2007 as the hearing date on the proposed levy of assessment, noticed all property owners on record via fast class mail of the hearing, and published the notice in the local newspaper. The City Council must hold a protest/public hearing before considering the levy of the annual assessment. 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. 35-07 confirming the levy of assessment for Fiscal Year 2007-08. Mayor Peters opened the hearing for public comment; there were no comments, and Mayor Peters closed the public comment hearing. MOTION: Councilmember Peirce moved the City Council adopt Resolution No. 35-07 directing the levy of the annual assessment for the Cloisters Landscape and Lighting Maintenance Assessment District. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) 12 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 25, 2007 B-7 RESOLUTION NO. 36-07 DIRECTING THE LEVY OF THE ANNUAL ASSESSMENT FOR THE NORTH POINT NATURAL AREA LANDSCAPE AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT; (RECREATION & PARKS) Assistant City Manager Andrea Lueker stated at the May 29, 2007 City Council meeting, Council adopted Resolution No. 29-07 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 fmance 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 25, 2007 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 City Council must hold a protest/public hearing before considering the levy of the annual assessment. 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. 36-07 ® confirming the levy of assessment for Fiscal Year 2007-08. Mayor Peters opened the hearing for public comment; there were no comments, and Mayor Peters closed the public comment hearing. MOTION:. Councilmember Peirce moved the City Council adopt Resolution No. 36-07 directing the levy of the annual assessment for the North Point Natural Area Landscape and Lighting Maintenance Assessment District. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) C. UNFINISHED BUSINESS C-1 RESOLUTION NO. 34-07 AMENDING MAJOR VEGETATION GUIDELINES; (CITY ATTORNEY) This item was continued to the July 9, 2007 City Council meeting. C-2 2006 ANNUAL WATER REPORT UPDATE; (PUBLIC SERVICES) This item was continued to the July 9, 2007 City Council meeting. D. NEW BUSINESS — None. 13 l E 11 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 25, 2007 ADJOURNMENT The meeting adjourned at 11:02 p.m. Recorded by: Bridgett Bauer City Clerk 14 ® City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of 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 11, 2007 CLOSED SESSION — JUNE 11, 2007 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA CS-1 GOVERNMENT CODE SECTION 54956.9(A);CONFERENCE WITH ® LEGAL COUNSEL REGARDING PENDING LITIGATION • City of Morro Bay vs. Martony and Pekarek CS-2 GOVERNMENT CODE SECTION 54956.8: REAL PROPERTY TRANSACTIONS. INSTRUCTING CITY'S REAL PROPERTY NEGOTIATOR REGARDING THE PRICE AND TERMS OF PAYMENT FOR THE PURCHASE, SALE, EXCHANGE, OR LEASE OF REAL PROPERTY AS TO TWO (2) PARCELS. • Property: 575 and 591 Embarcadero, Lease Site 67/67W and 68/68W Negotiating Parties: O'Neill & Held and City of Morro Bay. Negotiations: Lease Terms and Conditions. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. 11 ® PUBLIC SESSION — JUNE 11, 2007 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 MAY 29, 2007 CITY COUNCIL ® MEETING; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 RESOLUTION NO. 32-07 ESTABLISHING ANNUAL PROPOSITION 4 APPROPRIATIONS LIMIT FOR FISCAL YEAR 2007/08; (FINANCE) RECOMMENDATION: Adopt Resolution No. 32-07. A-3 RESOLUTION NO. 33-07 AUTHORIZING THE ESTABLISHMENT OF A LINE OF CREDIT WITH FIRST BANK OF SAN LUIS OBISPO DESIGNATING TRANSACTION OFFICERS; (FINANCE) RECOMMENDATION: Adopt Resolution No. 33-07. A4 ROUNDABOUT CONSTRUCTION CONTRACT AWARD; (PUBLIC SERVICES) RECOMMENDATION: Award the project contract to V. Lopez, Jr. & Sons in the base bid amount of $90,482. ®- A-5 PRELIMINARY DESIGN CONTRACT AWARD TO CANNON ASSOCIATES FOR THE NUTMEG TANK AND COMMUNICATIONS SITE ADDITIONS; (PUBLIC SERVICES) E, RECOMMENDATION: Authorize the City Manager to execute a contract with Cannon Associates in the amount of $63,940. A-6 PRELIMINARY DESIGN CONTRACT AWARD TO WALLACE GROUP FOR THE LIFT STATION 92 REPLACEMENT; (PUBLIC SERVICES) RECOMMENDATION: Authorize the Public Services Director to execute a contract with the Wallace Group in the amount of $32,400. A-7 AUTHORIZATION TO FILL AN ENGINEERING TECHNICIAN VACANCY IN THE PUBLIC SERVICES DEPARTMENT; (PUBLIC SERVICES) RECOMMENDATION: Authorize to fill the upcoming Engineering" Technician vacancy. fe3 ® B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-I CONTINUED DISCUSSION OF THE WASTEWATER TREATMENT PLANT UPGRADE ALTERNATIVES; (PUBLIC SERVICES) RECOMMENDATION: Discuss the various tertiary treatment alternatives, and provide direction to staff. C. UNFINISHED BUSINESS — NONE. D. NEW BUSINESS D-I CONSIDERATION OF THE METHODS AND IMPLICATIONS OF IMPLEMENTING AN ADMINISTRATIVE CITATION PROGRAM FOR ENFORCEMENT OF CITY ORDINANCES; (CITY ATTORNEY) RECOMMENDATION: Discuss and direct staff accordingly. D-2 CONSIDERATION OF REVISION TO CITY TREE ORDINANCE AND TO GUIDELINES FOR REMOVAL OF MAJOR VEGETATION TO PROHIBIT TREE CUTTING DURING NESTING SEASON; (CITY ATTORNEY) ® RECOMMENDATION: Discuss and direct staff accordingly. D-3 CONSIDERATION OF BEGINNING ANNEXATION PROCEEDINGS ON AREAS 1,2, & 3, THE CHEVRON PROPERTY AND MOBILEHOME PARK; (PUBLIC SERVICES) RECOMMENDATION: Discuss and direct staff accordingly. E. ADJOURNMENT THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TIME SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 772-6200 FOR FURTHER INFORMATION. COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST AT CITY HALL, LIBRARY, AND MILLS STATIONERY. IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. 2 ® MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION — JUNE 11, 2007 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Peters called the meeting to order at 5:00 p.m. PRESENT: Janice Peters Mayor Melody DeMeritt Councilmember Rick Grantham 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 54956.9(A):CONFERENCE WITH LEGAL COUNSEL REGARDING PENDING LITIGATION • City of Morro Bay vs. Martony and Pekarek CS-2 GOVERNMENT CODE SECTION 54956.8: REAL PROPERTY TRANSACTIONS. INSTRUCTING CITY'S REAL PROPERTY NEGOTIATOR REGARDING THE PRICE AND TERMS OF PAYMENT FOR THE PURCHASE, SALE, EXCHANGE, OR LEASE OF REAL PROPERTY AS TO TWO (2) PARCELS. • Pro e : 575 and 591 Embarcadero, Lease Site 67/67W and 68/68W Negotiating Parties: O'Neill & Held and City of Morro Bay. Negotiations: Lease Terms and Conditions. The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:35 p.m. MOTION: Councilmember Peirce moved the meeting be adjourned. The motion was seconded by Councilmember Winboltz and unanimously carried. (5-0) 0 The meeting adjourned at 5:35 p.m. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 11, 2007 VETERANS MEMORIAL HALL - 6:00 P.M. C� 1] Mayor Peters called the meeting to order at 6:00 p.m. PRESENT: Janice Peters Mayor Melody DeMeritt Rick Grantham William Peirce Betty Winholtz STAFF: Robert Hendrix Robert Schultz Bridgett Bauer Rick Algert Bruce Ambo Bill Boucher John DeRohan Rob Livick Mike Pond Susan Slayton Dylan Wade Councilmember Councilmember Councilmember Councilmember City Manager City Attorney City Clerk Harbor Director Public Services Director Capital Projects Manager Police Chief City Engineer Fire Chief Finance Director Senior Civil Engineer 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 referred to Item A-4 (Roundabout Construction Contract Award), and expressed opposition to the Roundabout Project at the Morro Bay Boulevard and Quintana Road Intersection: Stuart McElhinny, Ray McKelligott, Dorothy Cutter, Gena Guglielmelli Roger Ewing Cindy Malmen Joey Racano Forrester Rupp Barbara I I , , Whalen, Marla Jo Bruton, Susan Stewart, Dale Domenghini, and Karen Perletta. Gerald Luhr expressed support for the Roundabout Project, which meets the standards for vehicles and large trucks, and will improve the safety of the intersection and enhance the gateway to the City. 2 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 11, 2007 Keith Taylor reviewed the various events that took place at the Fire Muster, and said everyone had a wonderful time. Richard Sadowski reviewed an incident during his employment with Cayucos Sanitary District. He said he would be working with the Governor's office on a bond that will help the infrastructure in Morro Bay and Cayucos as a regional plan. Dan Glesmann stated the Public Works Advisory Board would be hosting a briefing on Under Grounding Utilities in Residential Neighborhoods on June 20, 2007. Dorothy Cutter addressed Item D-1 (Consideration of the Methods and Implications of Implementing an Administrative Citation Program for Enforcement of City Ordinances) and stated a code enforcement officer should be hired and building citations should be discussed. She also requested the City Council agendize an update on mansionization. Peter Risley thanked the City for approving tertiary treatment for the wastewater treatment upgrade, and stated this approval will provide an environmentally clean wastewater system for the City. ® Roger Ewing addressed Item A-3 (Resolution No. 33-07 Authorizing the Establishment of a Line of Credit With First Bank of San Luis Obispo Designating Transaction Officers) and expressed concern that the City is seeking a line of credit with an outside bank. John Solu addressed Item D-3 (Consideration of Beginning Annexation Proceedings on Areas 1, 2, & 3, the Chevron Property and Mobilehome Park) and requested Council consider the viability of the City by not allowing LAFCO to block the City's sphere of influence. Joey Racano stated the Morro Bay East Estuary has been designated as a State Marine Reserve (SMR), which is the highest level of protection under the new Marine Life Protection Act Initiative. He said based on the Fish & Game website, the killing of all living marine resources is prohibited in this SMR. Mr. Racano stated the power plant is depriving the living marine resources with once through cooling which is unlawful. Marla Jo Bruton stated there is a strong emission of propane gas from the power plant facility adjacent to the bike path. She also requested Council cancel the 30-day clause on the Harborwalk Project. John Barta discussed the nature of property ownership. ® Mayor Peters closed the hearing for public comment. 3 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 11, 2007 Mayor Peters called for a break at 7:17 p.m.; the meeting resumed at 7:28 p.m. DECLARATION OF FUTURE AGENDA ITEMS Councilmember DeMeritt requested to agendize a discussion on the City website content and consistency; Councilmember Winholtz and Mayor Peters concurred. Councilmember DeMeritt requested to agendize a discussion on how to conserve gasoline; Councihmember 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 APPROVAL OF MINUTES FOR THE MAY 29, 2007 CITY COUNCIL MEETING; (ADMINISTRATION) ® RECOMMENDATION: Approve as submitted. A-2 RESOLUTION NO. 32-07 ESTABLISHING ANNUAL PROPOSITION 4 APPROPRIATIONS LIMIT FOR FISCAL YEAR 2007/08; (FINANCE) RECOMMENDATION: Adopt Resolution No. 32-07. A-3 RESOLUTION NO. 33-07 AUTHORIZING THE ESTABLISHMENT OF A LINE OF CREDIT WITH FIRST BANK OF SAN LUIS OBISPO DESIGNATING TRANSACTION OFFICERS; (FINANCE) RECOMMENDATION: Adopt Resolution No. 33-07. A-4 ROUNDABOUT CONSTRUCTION CONTRACT AWARD; (PUBLIC SERVICES) RECOMMENDATION: Award the project contract to V. Lopez, Jr. & Sons in the base bid amount of $90,482. 1, ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 11, 2007 A-5 PRELIMINARY DESIGN CONTRACT AWARD TO CANNON ASSOCIATES FOR THE NUTMEG TANK AND COMMUNICATIONS SITE ADDITIONS; (PUBLIC SERVICES) RECOMMENDATION: Authorize the City Manager to execute a contract with Cannon Associates in the amount of $63,940. A-6 PRELIMINARY DESIGN CONTRACT AWARD TO WALLACE GROUP FOR THE LIFT STATION #2 REPLACEMENT; (PUBLIC SERVICES) RECOMMENDATION: Authorize the Public Services Director to execute a contract with the Wallace Group in the amount of $32,400. A-7 AUTHORIZATION TO FILL AN ENGINEERING TECHNICIAN VACANCY IN THE PUBLIC SERVICES DEPARTMENT; (PUBLIC SERVICES) RECOMMENDATION: Authorize to fill the upcoming Engineering Technician vacancy. ® Councilmember Winholtz pulled Items A-2, A-5 and A-6 of the Consent Calendar; Councilmember DeMeritt pulled Items A-3, A-4 and A-7. 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 RESOLUTION NO. 32-07 ESTABLISHING ANNUAL PROPOSITION 4 APPROPRIATIONS LIMIT FOR FISCAL YEAR 2007/08; (FINANCE) Councilmember Winholtz pulled this item in error. 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 RESOLUTION NO. 33-07 AUTHORIZING THE ESTABLISHMENT OF A LINE OF CREDIT WITH FIRST BANK OF SAN LUIS OBISPO DESIGNATING TRANSACTION OFFICERS; (FINANCE) Councilmember DeMeritt requested staff clarification on the costs and the need for a line ® of credit. F1 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 11, 2007 Finance Director Susan Slayton responded there is no cost until the City were to use the line of credit. She said the reason for considering a line of credit is due to all of the capital projects that are coming on line -that may happen simultaneously, and would be used only in the case that is necessary. MOTION: Councilmember DeMeritt moved the City Council adopt Resolution No. 33-07 with the added condition that staff report to Council on the status of the line of credit. The motion was seconded by Councilmember Grantham. Councilmember Winholtz stated she would vote in opposition to this motion because it is not a wise budgeting technique. Councilmember DeMeritt requested to amend her motion by adding this line of credit only be used for capital projects; Councilmember Grantham did not accept the amendment to his second. Councilmember DeMeritt withdrew her motion; Councilmember Grantham withdrew his second. ® MOTION: Councilmember Peirce moved the City Council approve Item A-3 of the Consent Calendar. The motion was seconded by Councilmember Grantham and carried with Councilmember DeMeritt and Councilmember Winholtz voting no. (3-2) A4 ROUNDABOUT CONSTRUCTION CONTRACT AWARD; (PUBLIC SERVICES) Councilmember DeMeritt expressed her opposition to roundabouts in Morro Bay. She asked staff what was. changed from the original plans to the CalTrans approved plans. Capital Projects Manager Bill Boucher reviewed the plans using an overhead diagram. MOTION: Councilmember DeMeritt moved the City Council deny the award of the Roundabout Construction Contract. The motion was seconded by Councilmember Winholtz. Councilmember DeMeritt stated she is opposed to this proposed roundabout because she sees it as a hazard to pedestrians and cyclists. She said it is not traffic calming but traffic confusing and the design does not meet standard guidelines. Councilmember DeMeritt expressed concern that a roundabout will deter tourists and it will also be detrimental to ® the coffee shop on Quintana Road. 2 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 11, 2007 Councilmember Grantham stated a roundabout would provide an opportunity to provide a more efficient traffic flow. He said the pedestrians would not have to walk as far as they do in the current intersection. Councilmember Grantham also stated a roundabout would be more aesthetically pleasing for the entrance to the City. Councilmember Peirce stated there are not a lot of choices in improving this intersection, and he is in support of a roundabout. Mayor Peters stated tourists who come from larger cities are probably use to driving in roundabouts. She said a roundabout will provide a more attractive entrance to the City and will be an efficient way to control the traffic at this intersection. Mayor Peters stated she would like to discuss changing to the original plans with CalTrans. Councilmember Winholtz stated this is one of three roundabouts in the City that was proposed by RUDAT. She said it has been 7-8 years since this roundabout was first discussed, and she is not surprised that citizens forgot about this proposed plan. Councilmember Winholtz stated the Federal Highway Guidelines state that roundabouts are more dangerous for cyclists, and that businesses close to roundabouts do lose ® business. She expressed opposition to this plan stating it will be dangerous and put the City at risk and it will eventually be removed. Councilmember Winholtz stated it would be a courteous gesture to place a mock roundabout at this intersection so people can get use to it. u VOTE: The motion failed with Councilmember Grantham, Councilmember Peirce and Mayor Peters voting no. (2-3) MOTION: Councilmember Grantham moved the City Council approve Item A-4 of the Consent Calendar. The motion was seconded by Councilmember Peirce and carried with Councilmember DeMeritt and Councilmember Winholtz voting no. (3-2) A-5 PRELIMINARY DESIGN CONTRACT AWARD TO CANNON ASSOCIATES FOR THE NUTMEG TANK AND COMMUNICATIONS SITE ADDITIONS; (PUBLIC SERVICES) Councilmember Winholtz stated she has concern with this contract because of financial impact, and there is not enough money budgeted for this project. She also expressed concern that this proposed tank will be nine times the size of the current tank and is on a ridgeline, and is not a good location for a tank this size. 7 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 11, 2007 Senior Civil Engineer Dylan Wade reviewed the proposed plans for the Nutmeg Tank for Council information, noting that the current tank is undersized for the population that it serves. MOTION: Councilmember Grantham 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 PRELIMINARY DESIGN CONTRACT AWARD TO WALLACE GROUP FOR THE LIFT STATION #2 REPLACEMENT; (PUBLIC SERVICES) Councilmember Winholtz expressed her support for this project because it has a greater financial buffer. MOTION: Councilmember Winholtz 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-7 AUTHORIZATION TO FILL AN ENGINEERING TECHNICIAN VACANCY ® IN THE PUBLIC SERVICES DEPARTMENT; (PUBLIC SERVICES) Councilmember DeMeritt asked for clarification on what appears as the creation of a new position, and asked if there would be any increase in General Fund expenditures City Engineer Rob Livick reviewed the job description for this position and stated the salary would be the same as the Engineering Technician III position. MOTION: Councilmember Grantham moved the City Council approve Item A-7 of the Consent Calendar. The motion was seconded by Councilmember Peirce and carried with Councilmember Winholtz voting no. (4-1) Mayor Peters called for a break at 9:26 p.m.; the meeting resumed at 9:15 p.m. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 CONTINUED DISCUSSION OF THE WASTEWATER TREATMENT PLANT UPGRADE ALTERNATIVES; (PUBLIC SERVICES) Wastewater Division Manager Bruce Keogh stated this item is a continuation from the May 29, 2007 City Council meeting. The City Council discussed various alternative treatment processes for the wastewater treatment plant upgrade project, and made a ® motion that the Morro Bay/Cayucos Sanitary District Wastewater Treatment Plant 0 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 11, 2007 upgrade meet tertiary standards with the intention to move towards reclamation and continued discussion on the selection of a preferred tertiary treatment alternative. Mr. Keogh recommended the City Council discuss the various tertiary treatment alternatives, and provide direction to staff on a preferred treatment alternative or identify areas for further study. Mayor Peters opened the hearing for public comment. John Barta stated secondary treatment will remove 7 parts per million of solid; tertiary treatment will remove 2 additional parts per million particles. How much will the ratepayers have to pay for the additional 2 parts per million? Ray McKelligott stated the City should approve tertiary treatment with reclamation. Noah Smukler stated tertiary treatment would provide the City with a new water supply. He requested the City settle the Joint Powers Agreement with Cayucos Sanitary District. Michelle Mayda, NRDC, stated the community should be happy with the decision to go with tertiary treatment. She requested the City finalize the agreement with Cayucos Sanitary District in order for the upgrade process to continue in an expedient manner, and also to secure grant funding, which the NRDC would be happy to support. Mayor Peters closed the public comment hearing. MOTION: Councilmember Peirce moved the City Council continue this item to the June 25, 2007 City Council meeting. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) C. UNFINISHED BUSINESS — NONE. D. NEW BUSINESS D-I CONSIDERATION OF THE METHODS AND IMPLICATIONS OF IMPLEMENTING AN ADMINISTRATIVE CITATION PROGRAM FOR ENFORCEMENT OF CITY ORDINANCES; (CITY ATTORNEY) City Attorney Robert Schultz stated many cities, including Morro Bay, have become increasingly frustrated by the use of the criminal citation process for code enforcement violations. For most violations, the fast tool available to enforcement officers is that of voluntary compliance. The officer will contact the alleged violator; explain the Code requirements, and request voluntary compliance. When the enforcement officers are ® unable to obtain voluntary compliance, they are left with very few tools with which to E ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — NNE 11, 2007 resolve the problems. Mr. Schultz provided an Administrative Citation Program Ordinance for Council review that would make the City's code enforcement program more effective using existing resources. The proposed new ordinance would reduce the cost of code enforcement and allow the City to recover some of its costs, while providing an effective way of obtaining compliance with the City's municipal code. Mr. Schultz recommended the City Council review the draft Administrative Citation Program Ordinance for municipal code violations, and direct staff to return the ordinance for first reading and introduction. Consensus of the City Council was to: 1) in Section 1.03.050(H) change three days to five days and clarify work days or calendar days; 2) add a warning provision and definition section; and, 3) direct staff to return the ordinance for first reading and introduction. MOTION: Councilmember Grantham moved the City Council approve the draft Administrative Citation Program Ordinance for municipal code violations with amendments made by Council, and direct staff to return the amended Ordinance for first reading and introduction. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) D-2 CONSIDERATION OF REVISION TO CITY TREE ORDINANCE AND TO GUIDELINES FOR REMOVAL OF MAJOR VEGETATION TO PROHIBIT TREE CUTTING DURING NESTING SEASON; (CITY ATTORNEY) City Attorney Robert Schultz stated Councilmember Winholtz brought forth a discussion item at the May 14, 2007 City Council meeting amending the City Tree Ordinance to not allow tree cutting during nesting season. The following are the proposed changes to Morro Bay Municipal Code Section 12.08.070 (Tree removal by City for cause) made by Councilmember Winholtz: C. Vegetation Protection Policy: 1. Except in the case of an emergency as determined by the Director of Public Services, no tree should be removed during nesting season, which is February 1 through June 30. MOTION: Councilmember Winholtz moved the City Council direct staff to return the amendment to Section 12.08.070 of the Morro Bay Municipal Code for first reading and introduction. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) 10 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JUNE 11, 2007 MOTION: Councilmember Winholtz moved the City Council return the amended Major Vegetation Guidelines to Council for approval. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) D-3 CONSIDERATION OF BEGINNING ANNEXATION PROCEEDINGS ON AREAS 1,2, & 3, THE CHEVRON PROPERTY AND MOBILEHOME PARK; (PUBLIC SERVICES) Public Services Director Bruce Ambo stated the City Council heard the LAFCO presentation at the May 29, 2007 City Council meeting and had similar concerns to the Planning Commission. The Council agreed that the Sphere of Influence should be reduced, but was concerned with essentially eliminating the entire sphere (with the exception of 100 acres in the back bay). Concerns were expressed that much of the City's critical water infrastructure in wells and tanks (including emergency communication facilities) are outside the City limits, which limits the City's ability to gain better control of potentially impacting activities from neighboring properties, and permitting implications beyond the City's direct control. There was also concern about the unknown status of the Chevron property once the, site is decommissioned and transferred to the real estate division within the next two years. In general, the Council had serious questions about the LAFCO Sphere of Influence (SOI) analysis and did not agree with the rationale of eliminating the City's sphere. Consequently, the Council added an item under Future Agenda Items for consideration at this meeting on annexing: 1) Areas 1, 2, 3 and 4 from the LAFCO SOI/MSR report, 2) the mobile home park on Highway 41, and 3) the Chevron property in its entirety. Mr. Ambo recommended the City Council: 1) provide further direction to staff on whether to initiate annexation proceedings; 2) specify which geographical areas are to be included in the City's Sphere of Influence and/or annexation program; 3) direct staff to broaden the geographical area of analysis beyond City boundaries in the current update of the General Plan/Local Coastal Plan; and 4) strengthen Agricultural Zoning Regulations for water quality protections. Consensus of the City Council was to not move forward with annexation proceedings at this time, and no further action was taken on this item. ADJOURNMENT - The meeting adjourned at 10:45 p.m. Recorded by: Bridgett Bauer City Clerk 11 ® City of Morro Bay City Council Agenda Mission Statement The City of Mono Bay is dedicated to the preservation and enhancement of the quality of life. The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING — MAY 29, 2007 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. 0 El 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 MAY 10, 2007 BUDGET WORKSHOP AND THE MAY 14, 2007 REGULAR CITY COUNCIL MEETING; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 RESOLUTION NO. 31-07 ADOPTING THE 2007-2009 OPERATING BUDGETS AND APPROPRIATING FUNDS FOR FISCAL YEAR 2007/08; (FINANCE) RECOMMENDATION: Adopt Resolution No. 31-07. A-3 RESOLUTION NO. 30-07 APPROVING THE CITY OF MORRO BAY TO ENTER INTO A GRANT AGREEMENT WITH THE UNITED STATES DEPARTMENT OF AGRICULTURE FOR PURCHASE OF FIRST RESPONDER EQUIPMENT; (HARBOR) RECOMMENDATION: Adopt Resolution No. 30-07. A-4 STATUS REPORT ON FIRE STATION PROJECT; (PUBLIC SERVICES) RECOMMENDATION: Receive report for information. A-5 RESOLUTION NO. 26-07 APPROVING OFFER OF DEDICATION FOR SIDEWALK AT 210 ATASCADERO ROAD; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 26-07. A-6 RESOLUTION NO. 27-07 APPROVING OFFER OF DEDICATION FOR SEWER EASEMENT AT 520 ATASCADERO ROAD; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 27-07. 2 A-7 PROCLAMATION DECLARING MAY 2007 AS "VOLUNTEER MONTH'; ® (RECREATION & PARKS) RECOMMENDATION: Adopt Proclamation. A-8 PROCLAMATION DECLARING JUNE 5. 2007 AS "HUNGER AWARENESS DAY'; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-I LAFCO MUNICIPAL SERVICE REVIEW ON SPHERE OF INFLUENCE, - (PUBLIC SERVICES) RECOMMENDATION: Review the Municipal Service Review and Sphere of Influence report, and provide future direction to staff. B-2 FURTHER DISCUSSION OF ALTERNATIVE TREATMENT PROCESSES FOR THE WASTEWATER TREATMENT PLANT UPGRADE PROJECT AND CONSIDERATION TO APPROVE A SPECIFIC TREATMENT ALTERNATIVE PROCESS FOR THE WASTEWATER TREATMENT PLANT ® UPGRADE; (PUBLIC SERVICES) RECOMMENDATION: Discuss and direct staff accordingly. B-3 RESOLUTION NO. 28-07 APPROVING THE ENGINEER'S REPORT AND DECLARING THE INTENT TO LEVY THE ANNUAL ASSESSMENT FOR THE CLOISTERS LANDSCAPE AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT; (RECREATION & PARKS) RECOMMENDATION: Adopt Resolution No. 28-07. B4 RESOLUTION NO. 29-07 APPROVING THE ENGINEER'S REPORT AND DECLARING THE INTENT TO LEVY THE ANNUAL ASSESSMENT FOR THE NORTH POINT NATURAL AREA LANDSCAPE AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT; (RECREATION & PARKS) RECOMMENDATION: Adopt Resolution No. 29-07. C. UNFINISHED BUSINESS C-1 2006 ANNUAL WATER REPORT; (PUBLIC SERVICES) RECOMMENDATION: Adopt the same water allocation program as last year. 3 ® D. NEW BUSINESS - NONE. E. ADJOURNMENT LL-1 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 REGULAR MEETING — MAY 29, 2007 VETERANS MEMORIAL HALL - 6:00 P.M. 11 u Mayor Peters called the meeting to order at 6:00 p.m. PRESENT: Janice Peters Mayor Melody DeMeritt Councilmember Rick Grantham 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 Bill Boucher Capital Projects Manager Bruce Ambo Public Services Director John DeRohan Police Chief Bruce Keogh WWTP Division Manager Rob Livick City Engineer Mike Pond Fire Chief Mike Prater Planning Manager Susan Slayton Finance Director Dylan Wade Senior Civil Engineer ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR'S REPORTS & ANNOUNCEMENTS CLOSED SESSION REPORT — None. PUBLIC COMMENT Keith Taylor announced the Fire Muster would be held on the weekend of June 2-3, 2007 at City Park, and shared the different events and items that will be available for purchase. Richard Sadowski requested Council place an emergency building moratorium in Morro Bay in order to enforce the Endangered Species Act and the Clean Water Act. He stated he attended a meeting of the Board of Supervisors and expressed concern of the continual violation of federal law in Morro Bay and the county of the coastal side. Mr. Sadowski addressed problems with the Morro Bay/Cayucos Sanitary District Joint Powers Authority stating he has asked for a copy of the comprehensive sewer flow study, and also asked why he was fired from the Cayucos Sanitary District. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 29, 2007 Marla Jo Bruton stated she also attended the Board of Supervisors meeting, which was not videotaped or broadcast as usual, and was regarding the five-year budget forecast. She said the City should be looking towards capital improvement funds that can be diverted away from non -essential pet projects. Ms. Bruton stated the City is responsible for the protection of public health and safety by providing water quality, water supply and wastewater sanitation infrastructure. Rick Keller stated Harvey. Wasserman who is a green activist and the author of "Solartopia" would be at the San Luis Sustainability Group on June 3`d to discuss going green and becoming better solar stewards. Priscilla Ko addressed the immigration bill and equal opportunity. She said the United States could no longer afford to give away money because it is a burden to our economy, public services and education at the cost of $9 billion dollars per year. Ms. Ko stated this is a matter of national security that is susceptible to terrorists. She requested people contact their Congress representative. to increase the immigration quotas. ® Grant Crowl stated the mansionization workshop was a great success and positive experience. Joey Racano stated the Art Can Project was a wonderful event, which provided the City with beautiful works of art. Mr. Racano stated 30 environmental groups under the umbrella of the State Marine Reserve have petitioned the Coastal Commission to protect our State Marine Reserve from fireworks. Jim Nance addressed the City's mission statement and said the City should consider this statement and do what is necessary to take care of its infrastructure. John Barta addressed property rights and the democratic process. Mayor Peters closed the hearing for public comment. DECLARATION OF FUTURE AGENDA ITEMS Councilmember DeMeritt requested a discussion on the connection hook-up fees for water and sewer; Councilmember Winholtz and Mayor Peters concurred if it is not discussed as a part of the wastewater treatment plant upgrade discussion. Councilmember Peirce requested to agendize the consideration of beginning annexation proceedings on Areas 1,2 & 3, the Chevron property and Rancho Coalinga Mobilehome ® Park; Council concurred. 2 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 29, 2007 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 MAY 10, 2007 BUDGET WORKSHOP AND THE MAY 14, 2007 REGULAR CITY COUNCIL MEETING: (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 RESOLUTION NO. 31-07 ADOPTING THE 2007-2009 OPERATING BUDGETS AND APPROPRIATING FUNDS FOR FISCAL YEAR 2007/08; (FINANCE) RECOMMENDATION: Adopt Resolution No. 31-07. ® A-3 RESOLUTION NO. 30-07 APPROVING THE CITY OF MORRO BAY TO ENTER INTO A GRANT AGREEMENT WITH THE UNITED STATES DEPARTMENT OF AGRICULTURE FOR PURCHASE OF FIRST RESPONDER EQUIPMENT; (HARBOR) RECOMMENDATION: Adopt Resolution No. 30-07. A4 STATUS REPORT ON FIRE STATION PROJECT; (PUBLIC SERVICES) RECOMMENDATION: Receive report for information. A-5 RESOLUTION NO. 26-07 APPROVING OFFER OF DEDICATION FOR SIDEWALK AT 210 ATASCADERO ROAD; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 26-07. A-6 RESOLUTION NO. 27-07 APPROVING OFFER OF DEDICATION FOR SEWER EASEMENT AT 520 ATASCADERO ROAD; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 27-07. 3 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 29, 2007 A-7 PROCLAMATION DECLARING MAY 2007 AS "VOLUNTEER MONTH'; (RECREATION & PARKS) RECOMMENDATION: Adopt Proclamation. A-8 PROCLAMATION DECLARING TUNE 5, 2007 AS "HUNGER AWARENESS DAY'; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. Councilmember Winholtz pulled Items A-1 and A-2 from the Consent Calendar; Councilmember DeMeritt pulled Item A-3; and Mayor Peters pulled Items A-7 and A-8. MOTION: Councilmember Winholtz moved the City Council approve Items A-4, A-5 and A-6 of the Consent Calendar. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) A-1 APPROVAL OF MINUTES FOR THE MAY 10, 2007 BUDGET WORKSHOP ® AND THE MAY 14, 2007 REGULAR CITY COUNCIL MEETING; (ADMINISTRATION) Councilmember Winholtz requested the following amendments: May 10, 2007 City Council budget meeting: Councilmember Winholtz stated she supports taking $10,000 out of Council services funds, and also taking $500 from each Council Members contingency funds €ef May 14, 2007 City Council meeting: DECLARATION OF FUTURE AGENDA ITEM Councilmember Winholtz requested to agendize the consideration of amending the City Tree Ordinance to not allow tree cutting on pFivate property during nesting season. MOTION: Councilmember Winholtz moved the City Council approve the minutes for the May 10, 2007 budget workshop, and the minutes for the May 14, 2007 regular City Council meeting as amended. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) r] ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 29, 2007 A-2 RESOLUTION NO. 31-07 ADOPTING THE 2007-2009 OPERATING BUDGETS AND APPROPRIATING FUNDS FOR FISCAL YEAR 2007/08; (FINANCE) Cduncilmember Winholtz requested the City Council not vote in favor to approve the adoption of the 2007-2009 budgets because of past approvals of deficit budgets and drawing on reserves to cover City expenses. She suggested staff return with options on how to change this current policy. MOTION: Councilmember Peirce moved the City Council approve Item A-2 of the Consent Calendar. The motion was seconded by Councilmember Grantham and carried with Councilmember Winholtz voting no. (4-1) A-3 RESOLUTION NO. 30-07 APPROVING THE CITY OF MORRO BAY TO ENTER INTO A GRANT AGREEMENT WITH THE UNITED STATES DEPARTMENT OF AGRICULTURE FOR PURCHASE OF FIRST RESPONDER EQUIPMENT; (HARBOR) ® Councilmember DeMeritt asked if this is a second vehicle or the original vehicle that was requested last year. Harbor Director Rick Algert responded it is the original vehicle that Council approved in last year's budget. MOTION: Councilmember DeMeritt 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-7 PROCLAMATION DECLARING MAY 2007 AS "VOLUNTEER MONTH'; (RECREATION & PARKS) Mayor Peters pulled this proclamation for public information. MOTION: Councilmember Peirce moved the City Council approve Item A-7 of the Consent Calendar. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) A-8 PROCLAMATION DECLARING JUNE 5, 2007 AS "HUNGER AWARENESS DAY'; (ADMINISTRATION) Mayor Peters pulled this proclamation for presentation and public awareness. El W ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 29, 2007 MOTION: Councilmember Peirce moved the City Council approve Item A-8 of the Consent Calendar. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) Mayor Peters called for a break at 7:15 p.m.; the meeting resumed at 7:24 p.m. B. PUBLIC HEARINGS, REPORTS & APPEARANCES B-1 LAFCO MUNICIPAL SERVICE REVIEW ON SPHERE OF INFLUENCE; (PUBLIC SERVICES) The City Council received a presentation from Paul Hood and David Church from the San Luis Obispo Local Agency Formation Commission (LAFCO) on the Sphere of Influence update for the City of Morro Bay. LAFCO staff is required to update the Sphere of Influence and Municipal Service Review (SOI/MSR) every five years. LAFCO has completed the SOI/MSR update and has open the public comment period for comments on their findings and recommendations. LAFCO would like the City to enter ® into a Memorandum of Agreement with the County that sets forth a process for communication between the two jurisdictions for future development within the Sphere. Mayor Peters opened the hearing for public comment. Marla Jo Bruton asked who owns the beach property adjacent to Highway One on the frontage of the Chevron property and the easement that goes out to the ocean; and does LAFCO have jurisdiction over Cayucos. Bill Woodson stated his most important disagreement with the proposed Sphere of Influence is the exclusion of the Chevron property at the northern perimeter of the City. He said this property provides the City an open space greenbelt'buffer that is scenic, beautiful and valuable. Mr. Woodson stated to contend that the City should not have influence over this property is unacceptable. He expressed concern with future developments that could occur on this property. Steve MacElvaine, owner of Rancho Coalinga Mobilehome Park, stated the Water Quality Control Board has suggested he hook up to the City's water treatment facility when it is upgraded. He said he would have to go through the annexation process for this to occur, and he must be in the Sphere of Influence to go through the annexation process. Mr. MacElvaine stated LAFCO has suggested not including his property in the Sphere of Influence, and the City should provide services to his Mobilehome Park without annexation through a user agreement if a threat of public health and safety is documented. He said it is ® not in the City's best interest to surrender this Sphere of Influence line. M MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 29, 2007 Jim Nance stated along with the properties discussed previously, the Tri-W property should also be included in the Morro Bay Sphere of Influence. Joey Racano concurred with the previous speakers in saving local control. He said open space is at a premium in this area and we should have every right in the say of what goes on in the area surrounding us. Mr. Racano stated the City has attributes it must protect now and in the future. He urged the City to maintain local control in this matter and other issues. John Barta asked who does the City trust more to regulate development on the edges of our community? Mayor Peters closed the public comment hearing. Councilmember Winholtz stated she is glad that Area 4 is included in the Sphere of Influence; she is not attached to Area 3 (Chorro Flats); Highway 41 to Rancho Coalinga should be put back into the Sphere of Influence; as well as the property in the northern portion of the City. She said the City should negotiate with the Board of Supervisors ® regarding the Chevron property. Councilmember Peirce stated City facilities including water tanks should be annexed as City property. He also said the City should discuss annexation with Chevron for their property. Councilmember Peirce stated Area 1 is mandatory to be within the City's Sphere of Influence. Councilmember Grantham stated the City should have influence on the Chevron property. Councilmember DeMeritt stated Council should direct staff to place in writing to maintain Areas 1, 2 and 3 in the Sphere of Influence. Mayor Peters agreed that Areas 1, 2 and 3 should be maintained in the City's Sphere of Influence. MOTION: Mayor Peters moved the City Council direct staff to inform LAFCO in writing to include Areas 1, 2 & 3 and the entire Chevron property in the Morro Bay Sphere of Influence. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) Mayor Peters called for a break at 9:00 p.m.; the meeting resumed at 9:10 p.m. u 7 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 29, 2007 B-2 FURTHER DISCUSSION OF ALTERNATIVE TREATMENT PROCESSES FOR THE WASTEWATER TREATMENT PLANT UPGRADE PROJECT AND CONSIDERATION TO APPROVE A SPECIFIC TREATMENT ALTERNATIVE PROCESS FOR THE WASTEWATER TREATMENT PLANT UPGRADE; (PUBLIC SERVICES) Wastewater Treatment Plant Manager Bruce Keogh stated this report presents a comparison of the various treatment alternatives presented in the draft Facility Master Plan prepared by Carollo Engineers and the Wastewater Treatment Alternatives Analysis in the Chorro Valley prepared by Cannon Associates. The consultants have prepared and presented a thorough analysis of the various upgrade alternatives that range from an upgrade to meet full secondary treatment standards to advanced tertiary treatment for creek discharge. 'The report also presents estimated project costs, water quality criteria, and various issues related to the various treatment alternatives. Senior Civil Engineer Dylan Wade reviewed the estimated project costs for Council information. He recommended the City Council discuss the various wastewater treatment alternatives and provide direction on a preferred treatment altemative(s) or identify areas ® for further study. Mayor Peters opened the hearing for public comment. Joey Racano stated secondary treatment is a dinosaur and Council should only consider tertiary treatment. He said regional full tertiary with reclamation is receiving funding, and he encouraged the City to consider a regional plan with Los Osos. Mr. Racano'stated he agrees with Councihnember DeMeritt that the present Joint Powers Agreement should be revised. Marla Jo Bruton stated the ocean protection activists are working towards cleaning up the ocean and watershed, and providing a healthy environment for humans and endangered species. She urged Council to approve full tertiary treatment with reclaimed water. John Barta stated full secondary treatment would cost the City $16.9 million; add $1.5 million for tertiary treatment; or, Chorro Valley for $42 million plus $5.5 million for the existing treatment plant. He said the issue of a regional plan with Los Osos should not be considered. Mr. Barta urged the Council to take their time in making this decision. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 29, 2007 Bill Woodson expressed support for tertiary treatment because Morro Bay is a pristine, unique and beautiful place. He said tertiary treatment would give the plant management more flexibility in redundancy in assuring that the product that is put out in the ocean would be at standards of providing a quality product. He agreed that a regional plan with Los Osos is a bad idea. Noah Smukler expressed support for tertiary treatment stating it would be an investment in the health of the community's environment and future water supply. He said the sooner the reclamation phase is entered into this project the easier it will be to work it in and more money will be saved. Roger Ewing expressed support for a full tertiary treatment and reclamation project. He said his concern is with the quality and availability of water for the future of Morro Bay. Mr. Ewing stated he would like to see the reclaimed water from the treatment plant go to the Chorro Valley in order to replenish the wells. He said he agrees with Councilmember DeMeritt that the present Joint Powers Agreement should be revised in order to bring our water rights into the 21 u century. ® Mayor Peters closed the public comment hearing. Councilmember DeMeritt stated she supports tertiary treatment and reclamation. She said her support is based on the Urban Water Management Plan accepted by the City Council in February 2006, which states the City has little or no control on the availability of State Water and should not be relied upon as the sole source of water for the community. Councilmember DeMeritt stated tertiary treatment is right for the ocean and its resources. Councilmember Grantham stated he supports tertiary treatment and reclamation in order to provide an adequate supply of water in the future. Councilmember Peirce stated he supports the recommendation of the Regional Water Quality Control Board to provide tertiary treatment now and provide reclamation in the future. Councilmember Winholtz stated she supports tertiary treatment now and progressing towards reclamation. Mayor Peters stated she supports providing tertiary treatment while directing staff to continue investigating the costs and pursuing grants for reclamation. 0 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 2% 2007 MOTION: Councilmember DeMeritt moved that the Morro Bay/Cayucos Sanitary District Wastewater Treatment Plant upgrade meet tertiary standards with the intention to move towards reclamation. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) B-3 RESOLUTION NO. 28-07 APPROVING THE ENGINEER'S REPORT AND DECLARING THE INTENT TO LEVY THE ANNUAL ASSESSMENT FOR THE CLOISTERS LANDSCAPE AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT; (RECREATION & PARKS) Assistant City. Manager Andrea Lueker stated on May 14, 2007, the City Council adopted Resolution No. 21-07, which initiated the proceedings to levy the annual assessment to fund the maintenance of the Cloisters Park and Open Space. Staff was directed to.have an Engineers Report prepared, detailing the estimated annual assessment for the parcel owners for fiscal year 2007/08. Upon adoption of Resolution No. 28-07, the next and final step in the annual levy of assessment process is the protest hearing/public hearing after which the City Council actually orders the levy of assessment. Ms. Lueker recommended the City Council adopt Resolution No. 28-07 declaring the intent to levy ® the annual assessment for the maintenance of the Cloisters Park and Open Space and approving the Engineers Report. Mayor Peters opened the hearing for public comment; there were no comments, and Mayor Peters closed the public comment hearing. MOTION: Councilmember Peirce moved the City Council adopt Resolution No. 28-07 approving the Engineer's Report and declaring the intent to levy the annual assessment for the Cloisters Landscape and Lighting Maintenance Assessment District. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) B4 RESOLUTION NO. 29-07 APPROVING THE ENGINEER'S REPORT AND DECLARING THE INTENT TO LEVY THE ANNUAL ASSESSMENT FOR THE NORTH POINT NATURAL AREA LANDSCAPE AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT; (RECREATION & PARKS) Assistant City Manager Andrea Lueker stated on May 14, 2007, the City Council adopted Resolution No. 22-07, which initiated the proceedings to levy the annual assessment to fund the maintenance of the North Point Natural Area. Staff was directed to have an Engineers Report prepared, detailing the estimated annual assessment for the parcel owners for fiscal year 2007/08. Upon adoption of Resolution No. 29-07, the next and ® final step in the annual levy of assessment process is the protest hearing/public hearing 10 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 29, 2007 after which the City Council actually orders the levy of assessment. Ms. Lueker recommended the City Council adopt Resolution No. 29-07 declaring the intent to levy the annual assessment for the maintenance of the North Point Natural Area and approving the Engineers Report. Mayor Peters opened the hearing for public comment; there were no comments, and Mayor Peters closed the public comment hearing. MOTION: Councilmember Peirce moved the City Council adopt Resolution No. 29-07 approving the Engineer's Report and declaring the intent to levy the annual assessment for the North Point Natural, Area Landscape and Lighting Maintenance Assessment District. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) MOTION: Councilmember Winholtz moved the City Council approve to go beyond 11:00 p.m. The motion was seconded by Councilmember DeMeritt and carried with Councilmember Peirce voting no. (4-1) C. UNFINISHED BUSINESS C-I 2006 ANNUAL WATER REPORT; (PUBLIC SERVICES) This item was continued to an upcoming City Council meeting. D. NEW BUSINESS —None. P0f11U610L111►11 The meeting adjourned at 11:05 p.m. Recorded by: Bridgett Bauer City Clerk El 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 — MAY 14, 2007 CLOSED SESSION — MAY 14, 2007 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA CS-1 GOVERNMENT CODE SECTION 54956.9(b); CONFERENCE WITH LEGAL COUNSEL DUE TO ANTICIPATED LITIGATION. Significant ® exposure to litigation pursuant to subdivision (b) of Section 54956.9 as to one matter: JOHN PARKER vs. CITY OF MORRO BAY IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. 11 PUBLIC SESSION — MAY 14, 2007 ® 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 APRIL 23, 2007 CITY COUNCIL ® MEETING; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. ® A-2 RESOLUTION NO. 23-07 APPROVING SUBLEASE AGREEMENT FOR A PORTION OF LEASE SITE 53-56/53W-56W LOCATED AT 501 EMBARCADERO BETWEEN ESTERO LANDING, INC. AND MARK KOCINA, DOING BUSINESS AS MORRO BAY SAILING ADVENTURES; (HARBOR) RECOMMENDATION: Adopt Resolution No. 23-07. A-3 ORDINANCE NO. 529 EXPANDING THE BOUNDARIES OF THE "CENTRAL TRAFFIC DISTRICT" TO INCLUDE MAIN STREET FROM BEACH STREET TO RADCLIFFE STREET - ADOPTION; (PUBLIC SERVICES) RECOMMENDATION: Adopt Ordinance No. 529. A4 RESOLUTION NO. 25-07 AWARD OF CONTRACT FOR THE HARBORWALK PROJECT; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 25-07. A-5 RESOLUTION NO. 24-07 AMENDING COUNCIL POLICIES AND PROCEDURES MANUAL REGARDING EX PARTE COMMUNICATIONS: ® (CITY ATTORNEY) RECOMMENDATION: Adopt Resolution No. 24-07. A-6 PROCLAMATION DECLARING MAY 20-26, 2007 AS "NATIONAL PUBLIC WORKS WEEK'; (PUBLIC SERVICES) RECOMMENDATION: Adopt Proclamation. A-7 PROCLAMATION DECLARING THE CITY'S APPRECIATION FOR TYLER FRASER'S WATER QUALITY CONTRIBUTION TO THE COMMUNITY; (PUBLIC SERVICES) RECOMMENDATION: Adopt Proclamation. A-8 PROCLAMATION DECLARING MAY 12-20, 2007 AS "NATIONAL TOURISM WEEK"; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. A-9 PROCLAMATION DECLARING JUNE 2007 AS "MAKE -A -WISH FOUNDATION MONTH OF JOY"; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. 3 B. PUBLIC HEARINGS, REPORTS & APPEARANCES ® B-1 PRESENTATIONS ON THE WASTEWATER TREATMENT PLANT UPGRADE PROJECT (PUBLIC SERVICES): A. DRAFT REVENUE PROGRAM AND PROPOSED RATE PROJECTIONS - CAROLLO ENGINEERS; B. CITY WASTEWATER TREATMENT ALTERNATIVES ANALYSIS IN THE CHORRO VALLEY — CANNON ASSOCIATES. RECOMMENDATION: Receive presentations and direct staff accordingly. B-2 RESOLUTION NO. 21-07 INITIATING PROCEEDINGS TO LEVY THE ANNUAL ASSESSMENT FOR THE CLOISTERS LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT; (RECREATION & PARKS) RECOMMENDATION: Adopt Resolution No. 21-07. B-3 RESOLUTION NO. 22-07 INITIATING PROCEEDINGS TO LEVY THE ANNUAL ASSESSMENT FOR THE NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT; (RECREATION & PARKS) ® RECOMMENDATION: Adopt Resolution No. 22-07. C. UNFINISHED BUSINESS —NONE. D. NEW BUSINESS -NONE. E. ADJOURNMENT THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TIME SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 772-6200 FOR FURTHER INFORMATION. COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST AT CITY HALL, LIBRARY, AND MILLS STATIONERY. IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. E NOTICE OF SPECIAL MEETING NOTICE IS HEREBY GIVEN that the Morro Bay City Council will be holding a Special Meeting on Monday, May 14, 2007 at 5:30 a.m. to be held at the Veterans' Memorial Building, 209 Surf Street, Morro Bay, California. The City Council will be conducting interviews to fill one vacancy on the Harbor Advisory Board. ® 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 8, 2007 Bridgett foluer, City Clerk ® MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION — MAY 14, 2007 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Peters called the meeting to order at 5:00 p.m. PRESENT: Janice Peters Mayor Melody DeMeritt Councilmember Rick Grantham 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 Winboltz and unanimously carried. (5-0) Mayor Peters read the Closed Session Statement. CS-1 LEGAL COUNSEL DUE TO ANTICIPATED LITIGATION. Significan exposure to litigation pursuant to subdivision (b) of Section 54956.9 as to one matter: • JOHN PARKER vs. CITY OF MORRO BAY The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:28 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 5:28 p.m. ® MINUTES - MORRO BAY CITY COUNCIL SPECIAL MEETING — MAY 14, 2007 VETERANS MEMORIAL HALL - 5:30 P.M. E Mayor Peters called the meeting to order at 5:30 p.m. PRESENT: Janice Peters Mayor Melody DeMeritt Councilmember Rick Grantham Councilmember William Peirce Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix City Manager Bridgett Bauer City Clerk Rick Algert Harbor Director The City Council interviewed William Luffee and Brittany Bechtel to fill the one vacancy on the Harbor Advisory Board. The City Council appointed William Luffee to serve a two-year term as the Marine - Oriented Business Representative on the Harbor Advisory Board. The meeting adjourned at 5:52 p.m. 2 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 14, 2007 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Peters called the meeting to order at 6:00 p.m PRESENT: Janice Peters Mayor Melody DeMeritt Councilmember Rick Grantham 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 Bill Boucher Capital Projects Manager Bruce Keogh Wastewater Treatment Plant Manager Tim Olivas Police Commander Mike Pond Fire Chief Susan Slayton Finance Director Dylan Wade Senior Civil Engineer 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 a Neighborhood Watch informational meeting would be held on May 23, 2007, and the topic will be on reporting suspicious activities. Keith Taylor announced the fast Morro Bay Fire Muster would be held on the weekend of June 2-3, 2007. Claire Grantham thanked the Police Department for the experience of the Citizens Volunteer Program. 11 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 14. 2007 Cathy Novak announced May is California Museum Month, and she encouraged all to support their local museums by visiting and attending special events at the various museums. Richard Sadowski addressed the sewer flow study and flow meters. He requested the City Council consider his claim and move forward with a regional plan. Garry Johnson stated the Morro Bay Fire Muster is a sanctioned event with firemen from all over the state to compete for points, and the proceeds will benefit a bum foundation for children. He also said Morro Bay Beautiful has purchased new trashcans for the Art Can Project. Susan Skelton stated the Compassionate Caregivers medicinal marijuana dispensary helped her through treatment of chemotherapy for ovarian cancer. She requested the City Council consider reopening this dispensary for those who are in need of this medication. Neil Farrell shared pictures of some of the artwork that will take place on Memorial Day ® weekend during the Art Can Project. Bill Woodson addressed Item A-4 (Resolution No. 25-07 Award of Contract for the Harborwalk Project), and requested this item be pulled from the Consent Calendar in order to review information on the Harborwalk Project for public information. Carrie Filler stated ECOSLO has been donated an electric scooter that will be raffled off at $10 per ticket at SLO Bicycles in San Luis Obispo. Grant Crowl announced the Residents Against Mansionization in Morro Bay Workshop would be held on May 19, 2007 at the library. Mary Jo Britton stated the upgrade to the wastewater treatment plant to tertiary treatment is critical to protecting public health, marine life and the tourist -dependent economy. She said tertiary treatment at this time would benefit Morro Bay and Cayucos from currently available grant opportunities. Ms. Britton stated tertiary treatment would allow for replenishing the water aquifer that State Parks and the golf course has expressed an interest in purchasing reclaimed water. She said tertiary treatment has a better ability to handle large influxes from tourist events that would benefit the community by not dumping into the ocean. Betty Forsythe expressed gratitude for living in such a wonderful community. 0 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —MAY 14, 2007 Joey Racano stated the estuary eastern portion has been upgraded as a State Marine Reserve, which receives the highest level of protection under the historic Marine Life Protection Act process. He addressed the ramifications of fireworks being shot next to a heron rookery, and suggested moving the fireworks back to the high school. Ilon Perlman urged the City Council to approve full tertiary treatment due to the drought, and rather than pouring water into the ocean, it would be better to use it as reclaimed water. He said he requested the Board of Supervisors support to approve using reclaimed water at the Morro Bay Golf Course. Nancy Johnson announced the Morro Bay Garden Club is sponsoring Dr. Joe Sabol, a renowned dahlia expert, on May 15, 2007 at St. Timothy's Hall. Mayor Peters closed the hearing for public comment. Mayor Peters called for a break at 7:15 p.m.; the meeting resumed at 7:25 p.m. DECLARATION OF FUTURE AGENDA ITEM ® Councilmember Winholtz requested to agendize the consideration of amending the City Tree Ordinance to not allow tree cutting during nesting season; Councilmember DeMeritt 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 MINUTES FOR THE APRIL 23, 2007 CITY COUNCIL MEETING; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 RESOLUTION NO. 23-07 APPROVING SUBLEASE AGREEMENT FOR A PORTION OF LEASE SITE 53-56/53W-56W LOCATED AT 501 EMBARCADERO BETWEEN ESTERO LANDING, INC. AND MARK KOCINA, DOING BUSINESS AS MORRO BAY SAILING ADVENTURES; (HARBOR) RECOMMENDATION: Adopt Resolution No. 23-07. Ll ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —MAY 14, 2007 A-3 ORDINANCE NO. 529 EXPANDING THE BOUNDARIES OF THE "CENTRAL TRAFFIC DISTRICT" TO INCLUDE MAIN STREET FROM BEACH STREET TO RADCLIFFE STREET - ADOPTION; (PUBLIC SERVICES) RECOMMENDATION: Adopt Ordinance No. 529. A4 RESOLUTION NO. 25-07 AWARD OF CONTRACT FOR THE HARBORWALK PROJECT; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 25-07. A-5 RESOLUTION NO. 24-07 AMENDING COUNCIL POLICIES AND PROCEDURES MANUAL REGARDING EX PARTE COMMUNICATIONS; (CITY ATTORNEY) RECOMMENDATION: Adopt Resolution No. 24-07. ® A-6 PROCLAMATION DECLARING MAY 20-26, 2007 AS "NATIONAL PUBLIC WORKS WEEK"; (PUBLIC SERVICES) RECOMMENDATION: Adopt Proclamation. A-7 PROCLAMATION DECLARING THE CITY'S APPRECIATION FOR TYLER FRASER'S WATER QUALITY CONTRIBUTION TO THE COMMUNITY; (PUBLIC SERVICES) RECOMMENDATION: Adopt Proclamation. A-8 PROCLAMATION DECLARING MAY 12-20, 2007 AS "NATIONAL TOURISM WEEK'; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. A-9 PROCLAMATION DECLARING JUNE 2007 AS "MAKE -A -WISH FOUNDATION MONTH OF JOY'; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. Councilmember Winholtz pulled Item A-3 from the Consent Calendar; and Mayor Peters ® pulled Items A-4, A-7 and A-8. Ci ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —MAY 14. 2007 MOTION: Councilmember DeMeritt moved the City Council approve Items A-1, A- 2, A-5, A-6 and A-9 of the Consent Calendar. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) A-3 ORDINANCE NO. 529 EXPANDING THE BOUNDARIES OF THE "CENTRAL TRAFFIC DISTRICT" TO INCLUDE MAIN STREET FROM BEACH STREET TO RADCLIFFE STREET - ADOPTION; (PUBLIC SERVICES) Councilmember Winholtz asked if this has any impact on the parking study. Public Services Director Bruce Ambo responded there would be no impact. MOTION: Councilmember Winholtz moved the City Council approve Item A-3 of the Consent Calendar. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) ® A4 RESOLUTION NO. 25-07 AWARD OF CONTRACT FOR THE HARBORWALK PROJECT; (PUBLIC SERVICES) Mayor Peters pulled this item for public information. Senior Civil Engineer Dylan Wade gave an update on the Harborwalk Project. MOTION: Councilmember Peirce moved the City Council approve Item A-4 of the Consent Calendar. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) A-7 PROCLAMATION DECLARING THE CITY'S APPRECIATION FOR TYLER FRASER'S WATER QUALITY CONTRIBUTION TO THE COMMUNITY; (PUBLIC SERVICES) Mayor Peters presented this Proclamation acknowledging appreciation to Tyler Fraser for volunteering his time to the City. MOTION: Councilmember Peirce moved the City Council approve Item A-7 of the Consent Calendar. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) II ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 14, 2007 A-8 PROCLAMATION DECLARING MAY 12-20, 2007 AS "NATIONAL TOURISM WEEK'; (ADMINISTRATION) Mayor Peters presented this Proclamation to a representative of the Visitors and Conference Bureau. MOTION: Councilmember Peirce moved the City Council approve Item A-8 of the Consent Calendar. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 PRESENTATIONS ON THE WASTEWATER TREATMENT PLANT UPGRADE PROJECT (PUBLIC SERVICES): A. DRAFT REVENUE PROGRAM AND PROPOSED RATE PROJECTIONS - CAROLLO ENGINEERS ® Wastewater Treatment Plant Division Manager Bruce Keogh stated this report presents the findings of the Revenue Program for consideration and discussion by the City Council, and to provide the public with the cost implications for monthly sewer charges and connection fees as a result of the project costs contained in the Facility Master Plan for upgrading the treatment plant. The purpose of the Revenue Program is to estimate the rate impacts to the existing sewer rate structure for the upgrade and rehabilitation of the existing plant and the collection system capital improvements identified in the recently adopted Sewer System Master Plan. Mr. Keogh recommended the City Council receive the presentation from John Johnson of Carollo Engineers, and direct staff to set a public hearing on the revised rate structure. John Johnson, Carollo Engineers, stated the Revenue Program is a mandate from the State Water Resources Control Board for anybody applying for a State Revolving Fund Loan and to develop the rates for the first year of operation. He said the preliminary. assumptions in the Revenue Program are that the City's share of an upgrade project to full secondary treatment is $22M resulting in an annual payment of $1.4M at 2.5% over 20 years. Staff is continuing to work with Carollo on various scenarios as to when the new rate structure will need to be implemented. Increasing the rates as early as possible will allow staff to use the saved dollars on interim projects that would otherwise require additional financing. Mayor Peters opened the hearing for public comment. u ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 14, 2007 Jim Nance stated his concern is the fixed income and low-income residents will not be able to pay the increased fees. He said the City should consider discounts that are offered by other utilities, and a fee for over -usage should be charged. Joey Racano stated full secondary treatment should have been implemented years ago. He stated since secondary treatment is a 35 year -old minimum standard, there is a good chance that tertiary treatment will soon be the benchmark. Mr. Racano urged the Council to approve full tertiary treatment, and said the City would qualify for monies that it would not be qualified for with a regional plan. Bill Martony referred to reclaimed water uses, and noted there is a water line that goes from Morro Bay to the avocado ranch on Highway 41. He said it does not make sense to have a sewer plant on prime ocean front property when there is another option to perhaps relocate the plant in a joint venture with Los Osos. Marla Jo Bruton suggested the City consider a regional solution for a sewage treatment plant. She said what needs to be done is clean the ocean and the aquifers, noting that ® 40% of the deceased otters are located right where the primary sewage is dumped. Ms. Bruton stated the City should become proactive in taking care of its community and the environment. Bill Woodson stated further clarification is needed on the treatment plant upgrade, as well as the proposed increases to the fees charged to the citizens. Ilon Perlman stated wastewater is worthless, and could become a replacement for potable water. He said the City should present a plan before the public to advise them that it is in their best interest to put forward quality water. Noah Smukler stated the Surfrider Foundation supports a full tertiary treatment upgrade of the wastewater treatment plan, as well as supporting reclamation of water. He said the delay of tertiary treatment is only going to increase the cost of this project, and noted there is a grant available for a reclamation project through the NRDC. Carrie Filler stated the property owners who are building large houses should pay higher rates, and there should be a charge for over -usage of water. Rick Keller stated $142 per day is a small price to pay for a better water system. He also expressed the need for an improved infrastructure in the City. Ed Biaggini stated the community should be further educated on the rate increases. 0 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —MAY 14, 2007 John Barta stated legal discharge requirements could be done at the cost of $9M that would bring the City into full secondary standards, along with a 55% buffer added by the consultants. He said the rates could proportionately increase if Council approves a plan other than the least expensive. Mr. Barta urged the Council to not consider a tertiary treatment upgrade, and consider a gray water plan. Mayor Peters closed the public comment hearing. Mayor Peters called for a break at 9:05 p.m.; the meeting resumed at 9:15 p.m. Councilmember DeMeritt stated she would like staff to obtain comparables from other cities on connection rates and sewage fees. Councilmember Winholtz stated she would like to increase the fees now, and not in 2014; and, would also like to consider development fees. She said she supports charging a variable rate for over -usage of water to promote conservation. Councilmember Winholtz stated she does not support setting aside $400,000 annually when the state requires $110,000. ® Mayor Peters stated the City is seeking grants to assist with funding. She said there are always variables in charging for over -usage of water. Mayor Peters stated the project is ahead of schedule at this time and there is no reason to rush into a decision until all information is received and understood. Councilmember Peirce stated he supports charging for over -usage for water consumption but not charge a higher rate for the sewer. This item was received for information, and no action was taken at this time. B. CITY WASTEWATER TREATMENT ALTERNATIVES ANALYSIS IN THE CHORRO VALLEY — CANNON ASSOCIATES. Wastewater Treatment Plant Division Manager Bruce Keogh stated this report presents the Wastewater Treatment Alternatives Analysis in the Chorro Valley prepared by Cannon Associates. The Cannon study updates the Phase II CDBG Wastewater Reclamation Feasibility study that was completed in 1999. The update completed by Cannon Associates concludes that the construction of a stand-alone treatment facility in the Chorro Valley with a creek discharge is a viable option; they did not identify a fatal flaw, which would prevent development of a stand-alone Wastewater Treatment Plant for the City. Mr. Keogh recommended the City Council accept the Wastewater Treatment Alternatives Analysis in the Chorro Valley by Cannon Associates, and continue the public hearing to May 29, 2007 for consideration of a comparison of treatment alternatives for the Chorro Valley and the ® upgrade project. 10 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —MAY 14, 2007 Larry Kraemer, Cannon Associates, stated the Phase II Boyle study and this update identify two potential advantages of the beneficial reuse of treated effluent for creek enhancement. He noted augmenting flow in Chorro Creek would enhance wildlife habitat along the creek corridor and the Morro Bay Estuary and could assist the City in supplementing future water supplies. Rebekah Oulton, Cannon Associates, reviewed the regulatory requirements for the discharge into Chorro Creek. Mayor Peters opened the hearing for public comment. Bill Martony asked why the Morro Valley is not being considered which has a greater need of water for agriculture. Bill Woodson asked what would happen to the existing facility if a new plant were built at another location. ® John Barta stated it would take a lot of energy to pump water over the hill to Chorro Valley. Mayor Peters closed the public comment hearing. MOTION: Councilmember Peirce moved the City Council accept the Wastewater Treatment Alternatives Analysis in the Chorro Valley by Cannon Associates and continue the public hearing until the May 29, 2007 City Council meeting for consideration of a comparison of treatment alternatives for the Chorro Valley and the "inside the fence" upgrade project. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) 11 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MAY 14, 2007 B-2 RESOLUTION NO. 21-07 INITIATING PROCEEDINGS TO LEVY THE ANNUAL ASSESSMENT FOR THE CLOISTERS LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT; (RECREATION & PARKS) Assistant City Manager Andrea Lueker stated Resolution No. 21-07 serves as the initiation of the annual assessment proceedings and orders an Engineer's Report detailing the proposed costs for the maintenance of the Cloisters Park and Open Space for the purpose of assessing private property owners of Tract Map No. 1996 (excluding the City's property). The Resolution also gives notice that a public hearing on the intent to levy the assessment, review and acceptance of the Engineer's Report will be held on May 29, 2007. Ms. Lueker recommended the City Council adopt Resolution No. 21-07 initiating proceedings to levy the annual assessment for the Cloisters Landscaping and Lighting Maintenance Assessment District. Mayor Peters opened the hearing for public comment; there were no public comments and Mayor Peters closed the public comment hearing. ® MOTION: Councilmember Peirce moved the City Council adopt Resolution No. 21- 07 initiating proceedings to levy the annual assessment for the Cloisters Landscaping and Lighting Maintenance Assessment District. The motion was seconded by Councilmember Winholtz and carried unanimously. (5- 0) B-3 RESOLUTION NO.22-07 INITIATING PROCEEDINGS TO LEVY THE ANNUAL ASSESSMENT FOR THE NORTH POINT NATURAL AREA LANDSCAPING AND LIGHTING MAINTENANCE ASSESSMENT DISTRICT; (RECREATION & PARKS) Assistant City Manager Andrea Lueker stated Resolution No. 22-07 serves as the initiation to the annual assessment proceedings and orders an Engineer's Report detailing the proposed costs for the maintenance of the North Point Natural Area for the purpose of assessing private property owners of Tract Map No. 2110 (excluding the City's property). The Resolution also gives notice that a public hearing on the intent to levy the assessment, review and acceptance of the Engineer's Report will be held on May 29, 2007. Ms. Lueker recommended the City Council adopt Resolution No. 22-07 initiating proceedings to levy the annual assessment for the North Point Natural Area Landscaping and Lighting Maintenance Assessment District. Mayor Peters opened the hearing for public comment; there were no public comments and Mayor Peters closed the public comment hearing. �J 12 �J E E MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —MAY 14, 2007 MOTION: Councilmember Peirce moved the City Council adopt Resolution No. 22- 07 initiating proceedings to levy the annual assessment for the North Point Natural Area Landscaping and Lighting Maintenance Assessment District. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) C. UNFINIS14ED BUSINESS — None. D. NEW BUSINESS — None. ADJOURNMENT The meeting adjourned at 10:52 Recorded by: Bridgett Sauer City Clerk 13 City of Morro Bay Morro Bay, CA 93442 (805) 772-6200 NOTICE OF BUDGET WORKSHOP NOTICE IS HEREBY GIVEN that the Morro Bay City Council will be holding a Budget Workshop on Thursday, May 10, 2007 at 7:00 a.m. to be held in the Veterans Memorial Building, 209 Surf Street, Morro Bay, California. If necessary, the Budget Workshop will be continued to Thursday, May 17, 2007 at 7:00 a.m. and will also be held in the Veterans ® Memorial Building as stated above. The City Council will be reviewing the proposed budget for fiscal year 2007-2008. DATED: May 1, 2007 Bridgett 0auer, City Clerk 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. FINANCE ADMINISTRATION FIRE DEPARTMENT PUBLIC SERVICES 595 Harbor Street 595 Harbor Street 715 Harbor Street 590 Morro Bay Boulevard isHARBOR DEPARTMENT POLICE DEPARTMENT RECREATION & PARKS 1275 Embareadero Road 870 Morro Bay Boulevard 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 lifer The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. SPECIAL MEETING — MAY 10, 2007 VETERANS MEMORIAL HALL - 7:00 P.M. 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER PRESENTATION OF 2007 — 2009 BIENNIAL BUDGET ® COMMENTS FROM CITIZENS' OVERSIGHT COMMITTEE PRESENTATION ON LOCAL TRANSACTION TAX BUDGET PUBLIC COMMENT PERIOD COUNCIL QUESTIONS AND DISCUSSION DIRECTION TO STAFF TO BRING BACK RESOLUTION ADOPTING 2007/2008 'OPERATING BUDGET AT THE MAY 29, 2007 CITY COUNCIL MEETING ADJOURNMENT 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 ® SPECIAL MEETING — MAY 10, 2007 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Peters called the meeting to order at 6:00 p.m PRESENT: Janice Peters Mayor Melody DeMeritt Councilmember Rick Grantham Councilmember William Peirce Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix Andrea Lueker Bridgett Bauer Rick Algert Bruce Ambo John DeRohan Mike Pond Susan Slayton City Manager Assistant City Manager City Clerk Harbor Director Public Services Director Police Chief Fire Chief Finance Director A. ESTABLISH QUORUM AND CALL TO ORDER B. MOMENT OF SILENCE ® C. PLEDGE OF ALLEGIANCE D. PRESENTATION OF 2007 — 2009 BIENNIAL BUDGET The City Council received a presentation of the proposed biennial budget for fiscal year 2007-2009. E. COMMENTS FROM CITIZENS OVERSIGHT COMMITTEE ON THE LOCAL TRANSACTION TAX BUDGET The City Council received a presentation from Joyce Lundy of the Measure Q Citizens Oversight Committee. She stated the Oversight Committee carefully reviewed the material that the citizens received during the fall campaign to increase the sales tax one- half percent. Based on that review, the Committee concluded that the following four areas is where the funds should be spent: 1) replace the fire station; 2) equipment for public safety employees; 3) improve streets; and 4) repair storm drains to avoid runoff into the estuary. After receiving direction from the City Council, the City's professional staff budgeted the money as follows: Projected revenue for the first year = $650,000, and to be allocated at $390,000 (60%) to the Fire Department; $97,500 (15%) for street improvements; $97,500 (15%) to repair storm drains; and $65,000 (101/6) for public safety. The Committee also reviewed the preliminary general fund budget, and feel the additional funds generated by the one-half percent sales tax increase overall will not be used to pay for any general fund expenses that would be considered as on -going ,1i operating expenses. Because the Finance Department set up a separate fund to track both ® the revenue that will be generated from the sales tax increase and the corresponding expenses, the use of the money will be very transparent. MINUTES - MORRO BAY CITY COUNCIL SPECIAL MEETING —MAY 10, 2007 F. PUBLIC COMMENT PERIOD Mayor Peters opened the hearing for public comment. Dan Glessman stated the 2007-2009 proposed budget for the general fund shows that expenditures will out -pace revenue along with continued deferred maintenance. He referred to the April 2007 consultant's report on revenue enhancement opportunities and development fees recognizes the City nets a small percentage from housing development in property tax while infrastructure and services has intensified. Mr. Glessman stated the report's direction looks as if the citizens will be hit with higher fees and taxes to support the general fund in addition to significant increase in essential fees such as water and wastewater treatment projects. He said investing in the promotion of the City's tourism would be a wise economic investment. Mr. Glessman recommended the consideration of contracting services that are now done in-house. Ed Biaggini, Community Promotions Committee, requested the City Council allocate $40,000 for Community Promotions for fiscal year 2007-08, and also requested funding for the Visitors and Conference Bureau at the requested amount based on the fair share ® formula. He said events would increase tourism and requires promotion in order to be successful. Mr. Biaggini stated the proposed income revenue in transient occupancy tax is conservative, and the amount of revenue received from transient occupancy tax this year shows an increase from last year. Jonni Biaggini, Executive Director of the San Luis Obispo County Visitors and Conference Bureau, stated the City's return of investment in the VCB shows a significant increase in tourism, and requested the City participate as a fair share partner. She said the City should consider a 5% increase in transient occupancy tax per year as conservative. Peter Candela, CEO of Chamber of Commerce, stated the Chamber took an aggressive stance by bringing in more events, and advertising is important to promote these events. He requested the City Council consider allocating an additional $40,000 for Community Promotions funds. Stan Trapp expressed concern with the present economic danger from sluggish sales, and stated the City needs to create an increased revenue stream. He stated promotion and advertising funds are needed in order to increase tourism, and requested the City Council allocate funds to the Visitors and Conference Bureau and Community Promotions in order to promote the City. John Weiss stated advertising and promotion is an investment in the City due to the ® increase in tourism and transient occupancy tax. Mr. Weiss stated the goal for the Chamber of Commerce is to benefit its members, many who are in the tourism business. 2 MINUTES - MORRO BAY CITY COUNCIL SPECIAL MEETING — MAY 10, 2007 He said the partnership between the business community and the City has improved, and requested the Council continue its support by funding the promotion of this community. Mayor Peters closed the public comment hearing. G. COUNCIL QUESTIONS AND DISCUSSION Councilmember DeMeritt stated Council should add condition #6 to the budget resolution wherein the City Council will review General Fund employee vacancies on a case -by - case basis. She said she does not support the increase to Council's budget, and expressed concern with the increase in the election fund. Councilmember DeMeritt stated she supports allocating $20,000 for community promotions now, and $20,000 at the mid -year budget review. She said she would support allocating $2,000 to the Central Coast Natural History Museum, and $1,500 to Hotline. Councilmember Peirce stated he would support taking $10,000 out of Council services funds and $2,000 out of supplies to go towards community promotions. He also supports funding $20,000 towards community promotions now, and $20,000 at the mid -year budget review. ® Councilmember Winholtz stated she supports taking $10,000 out of Council services funds, and also taking $500 from each Council Members contingency funds. She said she agrees with waiting until the mid -year budget to further allocate funds for community promotions. Councilmember Winholtz stated she supports adding a condition to the budget resolution placing a hiring freeze on all employee vacancies. She said the City should return the funds to San Luis Obispo Council of Governments and not build the roundabout and use those funds elsewhere. Councilmember Winholtz stated she supports purchasing two police cars per year, and the election funds should remain as proposed. Councilmember Grantham stated he supports allocating Measure Q funds to purchase police cars. He said he supports allocating $10,000 towards community promotions at this time, and wait until the mid -year budget review to further allocate funds for community promotions. Mayor Peters stated she agrees with placing the condition in the budget resolution that the Council will review General Fund employee vacancies on a case -by -case basis. She also supports allocating $12,000 for community promotions from the City Council services fund. Mayor Peters stated it is the City's responsibility to provide its citizens with public safety, and that is where money should be spent. She said there is potential revenue within the next year, and the transient occupancy tax will go up with events. Mayor Peters stated she supports allocating $20,000 to community promotions now, and the remainder at the mid -year budget review. She said fimds for the Visitors and Conference Bureau are not available now, but perhaps there will be funds at mid -year. She said she ® supports allocating $2,000 to the Central Coast Natural History Museum, and $1,500 to Hotline. 3 l E E MINUTES - MORRO BAY CITY COUNCIL SPECIAL MEETING — MAY 10, 2007 H. DIRECTION TO STAFF TO BRING BACK RESOLUTION ADOPTING 2007/2008 OPERATING BUDGET AT THE MAY 29, 2007 CITY COUNCIL MEETING MOTION: Councilmember Peirce moved the City Council direct staff to return with a resolution approving the Fiscal Year 2007/2008 budget with the following amendments: 1) allocating $20,000 to the Community Promotions budget with $12,000 coming from Council services funds; 2) amend resolution by adding a condition wherein the City Council will review General Fund employee vacancies; and 3) amend the aid -to -agencies funds by allocating $2,000 to the Central Coast Natural History Association and allocating $1,500 to Hotline. The motion was seconded by Councilmember Grantham. Councilmember Winholtz stated she would vote in opposition to this resolution because the proposed budget lacks information. VOTE: The motion carried with Councilmember Winholtz voting no. (4-1) I. ADJOURNMENT The meeting adjourned at 9:15 p.m. Recorded by: Bridgett Bauer City Clerk M ® City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life. The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING — APRIL 23, 2007 CLOSED SESSION — APRIL 23, 2007 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. e Property: Lease Site 87-88/87W-88W; 833 Embarcadero Negotiating Parties: City and Violet Leage Negations: Lease Terms IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. u ® PUBLIC SESSION — APRIL 23, 2007 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 mmutes. • 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 APRIL 9, 2007 CITY COUNCIL MEETING; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 QUARTERLY CASH & INVESTMENT REPORT; (FINANCE) RECOMMENDATION: Accept report as submitted. A-3 RESOLUTION NO. 19-07 APPROVING SUBLEASE FOR A PORTION OF LEASE SITE 67/67W LOCATED AT 575 EMBARCADERO; (HARBOR) RECOMMENDATION: Adopt Resolution No. 19-07. A4 RESOLUTION NO. 20-07 APPROVING ASSIGNMENT OF LEASE SITE 86/86W AND APPROVAL OF A SUBLEASE AGREEMENT FOR A PORTION OF LEASE SITE 86/86W LOCATED AT 801 EMBARCADERO; (HARBOR) RECOMMENDATION: Adopt Resolution No. 20-07. A-5 ORDINANCE NO. 526 AUTHORIZING AMENDMENT OF CONTRACT WITH PUBLIC EMPLOYEES RETIREMENT SYSTEM (PERS) TO ADD THE ® BENEFIT (4TH LEVEL SURVIVOR) FOR PERS MISCELLANEOUS EMPLOYEES; (ADMINISTRATION) r� RECOMMENDATION: Adopt Ordinance No. 526. A-6 2006 ANNUAL WATER REPORT; (PUBLIC SERVICES) RECOMMENDATION: Adopt the 2006 Annual Water Report. A-7 AWARD OF CONTRACT FOR FIRE STATION 53 ADMINISTRATIVE/LIVING QUARTERS PROJECT ARCHITECTURAL DESIGN; (PUBLIC SERVICES) RECOMMENDATION: Award the design contract to Fraser Seiple Architects in the amount of $189,800.00. A-8 AUTHORIZATION TO NEGOTIATE PURCHASE OF A USED BACKHOE FOR WATER FUND EQUIPMENT REPLACEMENT; (PUBLIC SERVICES) RECOMMENDATION: This item has been pulled from the agenda. W ® A-9 STATUS ON FIRE STATION PROJECT; (PUBLIC SERVICES) RECOMMENDATION: Receive report for information. A-10 APPROVAL FOR MAYOR TO ATTEND LEAGUE OF CALIFORNIA CITIES LEGISLATIVE ACTION DAYS IN SACRAMENTO ON MAY 16-17, 2007; (ADMINISTRATION) RECOMMENDATION: Approve Mayor's attendance at the League of California Cities Legislative Days. A-11 PROCLAMATION DECLARING MAY 2007 AS "BIKE MONTH"; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. A-12 PROCLAMATION DECLARING APRIL 30 - MAY 4, 2007 AS "DIAL -A - RIDE WEEK"; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. B. PUBLIC HEARINGS, REPORTS & APPEARANCES ® B-1 PRESENTATION ON 2050 LONG-TERM REGIONAL PLANNING PROCESS; (CITY COUNCIL) RECOMMENDATION: Receive presentation for information. B-2 ORDINANCE NO. 529 EXPANDING THE BOUNDARIES OF THE "CENTRAL TRAFFIC DISTRICT" TO INCLUDE MAIN STREET FROM BEACH STREET TO RADCLIFFE STREET; FIRST READING AND INTRODUCTION; (PUBLIC SERVICES) RECOMMENDATION: Approve first reading and introduction of Ordinance No. 529. C. UNFINISHED BUSINESS C-1 REVIEW OF MUNICIPAL REVENUE ENHANCEMENT OPPORTUNITIES AND DEVELOPMENT IMPACT FEES RECOMMENDATION: Discuss and direct staff accordingly. D. NEWBUSINESS—NONE. n ® E. ADJOURNMENT C u THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TIME SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 772-6200 FOR FURTHER INFORMATION. COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST AT CITY HALL, LIBRARY, AND MILLS STATIONERY. IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. 5 ® MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION — APRIL 23, 2007 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Peters called the meeting to order at 5:00 p.m. PRESENT: Janice Peters Mayor Melody DeMeritt Councilmember Rick Grantham Councilmember William Peirce Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix City Manager Robert Schultz City Attorney CLOSED SESSION MOTION: Councilmember DeMeritt moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Grantham 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: Lease Site 87-88/87W-88W; 833 Embarcadero Negotiating Parties: City and Violet Leage Negations: Lease Terms The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:40 p.m. MOTION: Councilmember Peirce moved the meeting be adjourned. The motion was seconded by Councilmember Winholtz and unanimously carried. (5-0) The meeting adjourned at 5:40 p.m. u ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 23, 2007 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Peters called the meeting to order at 6:00 p.m PRESENT: Janice Peters Mayor Melody DeMeritt Councilmember Rick Grantham Councilmember William Peirce Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix Andrea Lueker Robert Schultz Bridgett Bauer Rick Algert Bruce Ambo Bill Boucher Janeen Burlingame Tim Olivas Mike Pond Mike Prater Susan Slayton City Manager Assistant City Manager City Attorney City Clerk Harbor Director Public Services Director Capital Projects Manager Management Analyst Police Commander Fire Chief Planning Manager 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 remembered Paul Twedt, Jr., and shared stories on his kind character and participation in the community: John Barta, Nancy Castle, Roger Ewing, Bob Lloyd and Steve Mathieu. Hank Roth announced the Neighborhood Watch informational meeting will be held on April 25`h and the topic will be on observation skills. Keith Taylor announced the Wings of Freedom Tour would be held on May 91h at the San Luis Obispo Airport. 2 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 23, 2007 Nancy Johnson announced the 21' Annual Spring Garden Tour "Gardens by the Sea" would be held on April 29`". She also said the Morro Bay Garden Club will be holding a meeting on May 15 , and the topic will be on how to grow dahlias (the City flower). Ken Vesterfelt announced the Morro Bay Car Show is sold out again this year. He also stated the Police Department should receive a percentage of Measure Q funds. Mr. Vesterfelt noted that police officers walked the precincts during election season to help get this Measure passed, and deserves the support of the City. He reviewed recent incidents that have taken place in the City, and the need for improvement in the safety of the community. Michael Robertson from Green Build, a non-profit organization, addressed green building and sustainable design. He shared a kiosk that will be displayed in the City's Public Services Department that will offer information on building with recyclable materials and energy proficient measures. Noah Smukler acknowledged Earth Day 2007 and said the health of our community is based on our water supply and the health of our watershed. He also addressed the ® importance of tertiary water treatment plant upgrade to provide another source of water for the community and a healthier environment for the bay. David Weisman introduced Diane Wilson who is renowned around the world for the environment. Diane Wilson addressed the impact on the fisheries due to mercury super fund sites Jessie Arnold discussed the need for labeling on genetically engineered food. Grant Crowl announced a "Residents Against Mansionization in Morro Bay" workshop would be held on May 19'b at the Morro Bay Library. Roger Ewing addressed Item C-1 (Review of Municipal Revenue Enhancement Opportunities and Development Impact Fees) and urged the Council to consider increasing the development impact fees, and also placing a moratorium on issuing building permits until these fees are aligned with the rest of the County. Joey Racano stated the SLO Coastal Alliance has worked together with other agencies and sportsmen's groups for additional protection of the estuary while the MLPA process is in effect. He said there is a state marine reserve designation in the Morro Bay estuary, which does not allow the disturbance of biological processes allowed. 9 Mayor Peters closed the hearing for public comment. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 23, 2007 Mayor Peters called for a break at 7:16 p.m.; the meeting resumed at 7:30 p.m. DECLARATION OF FUTURE AGENDA ITEMS Councilmember Winholtz requested to agendize an item to consider changing construction hours on weekends to begin at 8:00 a.m.; Councilmember Peirce and Mayor Peters concurred. Councilmember Winholtz requested to agendize an item to consider changing appeal fees to a flat fee, and noted she would provide the staff report; Councilmember DeMeritt concurred. Councilmember Winholtz requested to agendize an item to discuss Council Members reports. 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 APRIL 9, 2007 CITY COUNCIL MEETING; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 QUARTERLY CASH & INVESTMENT REPORT; (FINANCE) RECOMMENDATION: Accept report as submitted. A-3 RESOLUTION NO. 19-07 APPROVING SUBLEASE FOR A PORTION OF LEASE SITE 67/67W LOCATED AT 575 EMBARCADERO; (HARBOR) RECOMMENDATION: Adopt Resolution No. 19-07. A-4 RESOLUTION NO. 20-07 APPROVING ASSIGNMENT OF LEASE SITE 86/86W AND APPROVAL OF A SUBLEASE AGREEMENT FOR A PORTION OF LEASE SITE 86/86W LOCATED AT 801 EMBARCADERO; (HARBOR) RECOMMENDATION: Adopt Resolution No. 20-07. 4 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 23, 2007 A-5 ORDINANCE NO. 526 AUTHORIZING AMENDMENT OF CONTRACT WITH PUBLIC EMPLOYEES RETIREMENT SYSTEM (PERS) TO ADD THE BENEFIT (4TH LEVEL SURVIVOR) FOR PERS MISCELLANEOUS EMPLOYEES; (ADMINISTRATION) RECOMMENDATION: Adopt Ordinance No. 526. A-6 2006 ANNUAL WATER REPORT; (PUBLIC SERVICES) RECOMMENDATION: Adopt the 2006 Annual Water Report. A-7 AWARD OF CONTRACT FOR FIRE STATION 53 ADMINISTRATIVE/LIVING QUARTERS PROJECT ARCHITECTURAL DESIGN; (PUBLIC SERVICES) RECOMMENDATION: Award the design contract to Fraser Seiple Architects in the amount of $189,800.00. ® A-8 AUTHORIZATION TO NEGOTIATE PURCHASE OF A USED BACKHOE FOR WATER FUND EQUIPMENT REPLACEMENT; (PUBLIC SERVICES) RECOMMENDATION: This item has been pulled from the agenda. A-9 STATUS ON FIRE STATION PROJECT; (PUBLIC SERVICES) RECOMMENDATION: Receive report for information. A-10 APPROVAL FOR MAYOR TO ATTEND LEAGUE OF CALIFORNIA CITIES LEGISLATIVE ACTION DAYS IN SACRAMENTO ON MAY 16-17, 2007; (ADMINISTRATION) RECOMMENDATION: Approve Mayor's attendance at the League of California Cities Legislative Days. A-11 PROCLAMATION DECLARING MAY 2007 AS 'BIKE MONTH"; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. �J E ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 23, 2007 A-12 PROCLAMATION DECLARING APRIL 30 - MAY 4, 2007 AS "DIAL -A- . RIDE WEEK"; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. Councilmember DeMeritt pulled Items A-2 and A-7 from the Consent Calendar; Councilmember Winholtz pulled Items A-3, AA, A-6 and A-10; Mayor Peters pulled Items A-11 and A-12. MOTION: Councilmember Peirce moved the City Council approve Items A-1, A-5 and A-9 of the Consent Calendar. The motion was seconded by . Councilmember Grantham and carried unanimously. (5-0) A-2 QUARTERLY CASH & INVESTMENT REPORT; (FINANCE) Councilmember DeMeritt stated although State Law does not require governmental agencies to report cash and investments to governing bodies, does that forbid that ® reporting. She said she would like to continue receiving the cash report that shows fund balances. Finance Director Susan Slayton responded it is not forbidden to report this information, and it may be reported on a quarterly basis. �J MOTION: Councilmember DeMeritt 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 RESOLUTION NO. 19-07 APPROVING SUBLEASE FOR A PORTION OF LEASE SITE 67/67W LOCATED AT 575 EMBARCADERO; (HARBOR) Councilmember Winholtz referred to the staff report that stated "Most of the CiVs newer leases allow for administrative approval of subleases," and asked if this was approved by Council. City Attorney Robert Schultz responded it was approved in the Master Lease Policy. 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) 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 23, 2007 A4 RESOLUTION NO. 20-07 APPROVING ASSIGNMENT OF LEASE SITE 86/86W AND APPROVAL OF A SUBLEASE AGREEMENT FOR A PORTION OF LEASE SITE 86/86W LOCATED AT 801 EMBARCADERO; (HARBOR) Councilmember Winholtz asked why the percentage of gross rental applicable was not filled in on this lease. City Attorney Robert Schultz responded that this is an old lease, which does not require a gross rental percentage. MOTION: Councilmember Winholtz moved the City Council approve Item A4 of the Consent Calendar. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) A-6 2006 ANNUAL WATER REPORT; (PUBLIC SERVICES) ® Councilmember Winholtz stated she is not ready to approve this report until the State Water report is delivered to the City. Special Projects Manager Bill Boucher gave an update on the State Water Project. MOTION: Councilmember Grantham moved the City Council continue consideration of the 2006 Annual Water Report to the May 29, 2007 City Council meeting. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) A-7 AWARD OF CONTRACT FOR FIRE STATION 53 ADMINISTRATIVE/LIVING QUARTERS PROJECT ARCHITECTURAL DESIGN; (PUBLIC SERVICES) Councilmember DeMeritt requested the new fire station be built as sustainable as possible. MOTION: Councilmember DeMeritt moved the City Council approve Item A-7 of the Consent Calendar. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) 7 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 23, 2007 11 A-10 APPROVAL FOR MAYOR TO ATTEND LEAGUE OF CALIFORNIA CITIES LEGISLATIVE ACTION DAYS IN SACRAMENTO ON MAY 16-17, 2007; (ADMINISTRATION) Councilmember Winholtz requested clarification of the format of this conference. Mayor Peters stated this conference is based on the League of California Cities' recommendation on issues. She said she would review the outcome of the conference for Council information upon her return. MOTION: Councilmember Winholtz moved the City Council approve Item A-10 of the Consent Calendar. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) A-11 PROCLAMATION DECLARING MAY 2007 AS "BIKE MONTH"; (ADMINISTRATION) Mayor Peters announced Bike Month for public information. MOTION: Councilmember Peirce moved the City Council approve Item A -I I of the Consent Calendar. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) A-12 PROCLAMATION DECLARING APRIL 30 - MAY 4, 2007 AS "DIAL -A - RIDE WEEK"; (ADMINISTRATION) Mayor Peters announced Dial -A -Ride Week for public information. MOTION: Councilmember Peirce moved the City Council approve Item A-12 of the Consent Calendar. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 PRESENTATION ON 2050 LONG-TERM REGIONAL PLANNING PROCESS; (CITY COUNCIL) The City Council received a presentation from Steve DeVincenzi of San Luis Obispo Council of Governments, on the 2050 long -tern regional planning process. 3 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 23, 2007 Mayor Peters opened the hearing for public comment; there was no comment, and Mayor Peters closed the public comment hearing. This was an informational item, and Council took no action. B-2 ORDINANCE NO. 529 EXPANDING THE BOUNDARIES OF THE "CENTRAL TRAFFIC DISTRICT" TO INCLUDE MAIN STREET FROM BEACH STREET TO RADCLIFFE STREET; FIRST READING AND INTRODUCTION; (PUBLIC SERVICES) Public Services Director Bruce Ambo stated adoption of Ordinance No. 529 expands the boundaries of the "Central Traffic District" to include Main Street from Beach Street to Radcliffe Street. The speed limit within the district, unless otherwise established and posted, is 25 mph pursuant to the California Vehicle Code's requirement for a "business district." As discussed at the February 26 and March 12, 2007 City Council meetings, limited sight distances referenced in past traffic reports, Highway 1 on -off ramps, and recent commercial development along the referenced section of Main Street makes inclusion of this street segment into the central traffic district appropriate. Staff was also directed to alter the intersection signal at Main and Quintana Road to remove the right turn green on Quintana Road; and, install a "no -right turn on red" sign as appropriate for a period of six months. Mr. Ambo recommended the City Council conduct a public hearing, and set a second hearing on May 14, 2007 for further discussion or adoption of Ordinance No. 529. He further recommended the City Council review the quote for signal modification work and appropriate the required funding. Mayor Peters opened the hearing for public comment; there was no comment, and Mayor Peters closed the public comment hearing. Councilmember Peirce stated the Quintana Road area should also be included in the business district. MOTION: Councilmember Peirce moved the City Council approve the first reading and introduction of Ordinance No. 529 expanding the boundaries of the "Central Traffic District" to include Main Street from Beach Street to Radcliffe Street. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) City Manager Robert Hendrix read Ordinance No. 529 by number and title only. Councilmember Winholtz stated she would like to have a no -turn on red from Quintana ® Road onto Main Street. 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 23, 2007 Councilmember Peirce stated he would like to receive suggestions from CalTrans on the traffic signal; Councilmember Grantham, Councilmember DeMeritt and Mayor Peters concurred. MOTION: Councilmember Peirce moved the City Council direct the Traffic Advisory Committee to review the traffic signalization at Quintana Road and Main Street. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) Mayor Peters called for a break at 9:05 p.m.; the meeting resumed at 9:15 p.m. C. UNFINISHED BUSINESS C-1 REVIEW OF MUNICIPAL REVENUE ENHANCEMENT OPPORTUNITIES AND DEVELOPMENT IMPACT FEES Public Services Director Bruce Ambo stated the City does not currently collect impact fees on the majority of the development activity in the community, which is residential infill development, additions and remodels. Impact fees are generally only collected through the subdivision process involving new residential development, and are limited to the areas of water, sewer, traffic and storm drainage impacts. It has also been a considerable time since there was a nexus study justifying these fees in conformance with the State requirements. The current impact fee program does not collect fees on other impacted City services including fire, police, general government and parks. Mr. Ambo recommended the City Council provide direction to staff to: 1) develop a comprehensive development impact fee program that includes single family and other residential development; and 2) adopt the revenue enhancement program with any direction to reprioritize program components, and return with a specific work program and schedule to implementation of the overall revenue enhancement program for the City. Marshall Eyerman, Principal Consultant from MuniFinancial presented to the City Council an analysis of revenue enhancement opportunities, and the review of the City's existing development impact fees. MOTION: Councilmember DeMeritt moved the City Council approve spending $20,000 to develop a comprehensive development impact fee program. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) ® D. NEW BUSINESS — None. 10 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 23, 2007 I,1a0]11ZVIL11i►1 The meeting adjourned at 9:57 p.m. Recorded by: Bridgett Bauer City Clerk to 11 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 — APRIL 9, 2007 CLOSED SESSION — APRIL 9, 2007 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA ® CS-1 Discussions regarding Personnel Issues including one (1) public regarding evaluation, specifically the City Manager. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. u PUBLIC SESSION — APRIL 9, 2007 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 MARCH 26, 2007 CITY COUNCIL 0 MEETING; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 RESOLUTION NO. 18-07 ESTABLISHING AN URBAN FOREST MANAGEMENT PLAN; (CITY ATTORNEY) RECOMMENDATION: Adopt Resolution No. 18-07. A-3 PROCLAMATION DECLARING APRIL 2007 AS "MONTH OF THE CHILD'; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. B. PUBLIC HEARINGS. REPORTS & APPEARANCES — NONE. C. UNFINISHED BUSINESS C-1 APPROVAL OF FISH & GAME COMMISSION LETTER REGARDING HUNTING REGULATIONS IN THE BACK BAY ® RECOMMENDATION: Approve sending proposed letter to the Department of Fish & Game Commission regarding hunting regulations in the back bay. l C-2 REPORT ON EX PARTE COMMUNICATIONS; (CITY ATTORNEY) RECOMMENDATION: Discuss and direct staff accordingly. D. NEW BUSINESS D-1 CONSIDERATION OF APPLICATION FOR THE HARBOR ADVISORY BOARD; (ADMINISTRATION) . RECOMMENDATION: This item has been pulled from the agenda. D-2 REPORT ON INITIATIVE ORDINANCES PASSED AT GENERAL ELECTION HELD ON NOVEMBER 7, 2006; (CITY ATTORNEY) RECOMMENDATION: Review information provided by staff on the initiative ordinances passed at the General Election held on November 7, 2006; discuss and direct staff accordingly. 3 D-3 DISCUSSION ON ABANDONMENT OF RIGHT-OF-WAY POLICIES AND PROCEDURES; (PUBLIC SERVICES) RECOMMENDATION: Discuss abandonment of right-of-way policies and procedures, and direct staff accordingly. D4 REVIEW OF HARBOR DEPARTMENT LEASE MANAGEMENT POLICY; (HARBOR) RECOMMENDATION: Review Harbor Department Lease Management Policy; discuss and direct staff accordingly. D-5 DISCUSSION ON THE NORTH EMBARCADERO WATERFRONT (NEW) FUTURES COMMITTEE GAINING NON-PROFIT STATUS; (CITY COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. D-6 CONSIDERATION OF PARTICIPATION IN MUNICIPAL PRODUCTIVITY WORKSHOP; (ADMINISTRATION) RECOMMENDATION: Discuss and direct staff accordingly. ® D-7 CONSIDERATION OF 2007-2008 FISCAL YEAR PROPOSED MEASURE Q PRIORITIES; (FINANCE) 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. 4 C E MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION — APRIL 9, 2007 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 Melody DeMeritt Rick Grantham William Peirce Betty Winholtz Robert Hendrix Robert Schultz Councilmember Councilmember Councilmember Councilmember City Manager City Attorney MOTION: Councilmember DeMeritt 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 (1) public employee regarding evaluation, specifically the City Manager. The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:50 p.m. MOTION: Councilmember Peirce moved the meeting be adjourned. The motion was seconded by Councilmember Grantham and unanimously carried. (5-0) The meeting adjourned at 5:50 p.m. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 9, 2007 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Peters called the meeting to order at 6:00 p.m PRESENT: Janice Peters Mayor Melody DeMeritt Councilmember Rick Grantham 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 Susan Slayton 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 Keith Taylor announced the Wings of Freedom Tour event would be held on May 9`6 at the San Luis Obispo Regional Airport. He addressed Item D-7 (Consideration of 2007- 2008 Fiscal Year Proposed Measure Q Priorities) stating citizen priorities were for the fire department, public safety, storm drains and streets. Mr. Taylor stated this fire department is the busiest station in the county, and should receive $450,000 from the Measure Q funds. Ariane Leiter, President of the Morro Bay Fire Fighters Association, recommended the City Council follow the spending priorities for Measure Q funds as designated by Chief Pond. David Weisman announced the Earth Day Celebration would be held on April 22nd at the San Luis Obispo Public Library with Diane Wilson as guest speaker. 11 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 9, 2007 The following people requested the City Council reconsider the request for a lease extension on Lease Site Lease Site 87-88/87W-88W: Violet Leage, Patrick Lynch, Cathy Wells, Dannie Tope, Bill Yates, Mark Quisenberry, Dale (tourist), and John Barta. Fred Harpster addressed the City's designation as a bird sanctuary stating it is unrealistic that a city with 10,000 habitants has no detrimental affect on any wildlife in its locale. He said the four largest causes for the death of birds are windows, domestic cats, high- tension wires and automobiles. He said the designation of a bird sanctuary is to market the City and to attract tourism, and has nothing to do with enhancing the bird population or its habitat. Hilary Saner announced the Clean Air Bike Rally would be held on April 14°i starting at the Estero Bay United Methodist Church. Betty Forsythe expressed the importance that Measure Q funds go toward the City's public safety. ® Grant Crowl stated the trench is still open across the street from his house. He also requested placing a note on water bills addressing community street parking. Roger Ewing addressed Item D-7 stating there was overwhelming community support to fund the fire department and infrastructure with Measure Q funds. He said police cars are not a necessary cost. Joe King announced himself as a member of the community, and noted his interest in helping to make the City a better place to live. Dana McClish addressed Item A-2 (Resolution No. 18-07 Establishing an Urban Forest Management Plan) stating this plan refers to private property rights, which should be an item for public discussion. John Barta addressed Item D-2 (Report on Initiative Ordinances Passed at General Election Held on November 7, 2006), and noted the primary election is scheduled for June 3, 2008. Mayor Peters closed the hearing for public comment. Mayor Peters called for a break at 7:07 p.m.; the meeting resumed at 7:22 p.m. 3 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 9, 2007 DECLARATION OF FUTURE AGENDA ITEMS Mayor Peters requested the discussion of an efficiency study and cost; Councilmember Grantham and Councilmember 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 APPROVAL OF MINUTES FOR THE MARCH 26, 2007 CITY COUNCIL MEETING; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 RESOLUTION NO. 18-07 ESTABLISHING AN URBAN FOREST MANAGEMENT PLAN; (CITY ATTORNEY) ® RECOMMENDATION: Adopt Resolution No. 18-07. A-3 PROCLAMATION DECLARING APRIL 2007 AS "MONTH OF THE CHILD'; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. Councilmember DeMeritt pulled Item A-2 of the Consent Calendar; Mayor Peters pulled Item A-3. MOTION: Councilmember Winholtz 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. 18-07 ESTABLISHING AN URBAN FOREST MANAGEMENT PLAN; (CITY ATTORNEY) Councilmember DeMeritt suggested the following amendments to Resolution No. 18-07: "NOW, THEREFORE, BE IT RESOLVED THAT the City Council finds and declares again and formalizes it in this resolution that it is in the best interest of the City and its residents to establish an Draft Urban Forest Management Plan by May 2008 which will may include:..." 2 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 9, 2007 Councilmember Grantham expressed concern with the intrusion of private property rights in this plan. MOTION: Councilmember DeMeritt moved the City Council adopt Resolution No. 18-07 Establishing An Urban Forest Management Plan as amended by Council. The motion was seconded by Councilmember Winholtz and carried with Councilmember Grantham voting no. (4-1) A-3 PROCLAMATION DECLARING APRIL 2007 AS "MONTH OF THE CHILD"; (ADMINISTRATION) Mayor Peters announced Month of the Child for public information. 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) ® B. PUBLIC HEARINGS, REPORTS & APPEARANCES — NONE. C. UNFINISHED BUSINESS u C-1 APPROVAL OF FISH & GAME COMMISSION LETTER REGARDING HUNTING REGULATIONS IN THE BACK BAY Councilmember Winholtz stated in 2005, in response to public demand, the City Council sent a letter to the Department of Fish & Game (DFG) Commission requesting a change in hours and boundaries of the waterfowl hunting area on the National Morro Bay Estuary. The request was denied, and the hours were increased. In 2006, Council continued to receive complaints regarding waterfowl hunting on the Estuary. The City Council at its March 26, 2007 meeting voted to send a letter to the DFG Commission before its annual deliberation on hunting regulations for the coming year. Councilmember Winholtz requested Council review the letter and either approve sending this letter or an amended version thereof. Council made the following amendments to the letter: (Second Paragraph) "As you know, the City of Morro Bay (population 10,350)...." (Last Paragraph) "We respectfully request your consideration and possible adoption of the proposed change —to eliminate waterfowl hunting ffea on Morro Bay...." 5 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 9, 2007 . MOTION: Councilmember Grantham moved the City Council approve sending a letter to the Department of Fish & Game Commission regarding hunting regulations in the back bay with the amendments discussed by the City Council. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) C-2 REPORT ON EX PARTE COMMUNICATIONS; (CITY ATTORNEY) City Attorney Robert Schultz stated an ex parte communication is an "off-the-record," private communication between a decision -maker and any person concerning a matter that is pending or impending before a board. Such communications occur in the absence of other parties and without notice to other parties. These communications can range from phone calls, to written correspondence and emails, to site visits or tours. Ex pane communications in quasi-judicial matters do pose the risk of violating a party's due process right to an impartial decision -maker and the right to have knowledge of all the information upon which a decision is based. Because the City has no formal law or policy addressing the issue or providing guidance to the City's decision -making bodies, ® the creation of such a law or policy seems appropriate. Mr. Schultz recommended the City Council review the information provided and direct staff accordingly. The City Council reviewed the ex parte communication policies of other cities, and discussed what they would like in the City's proposed policy. Mr. Schultz clarified Council's intention as follows: 1) the Council would like to adopt an ex parte communication policy; 2) policy is to be limited to interested parties; 3) the plan is to be applied to any information discussed. MOTION: Councilmember Peirce moved the City Council approve the formation of an ex -pane communication policy as discussed by Council, and directed the City Attorney to return with a resolution adopting such policy. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) Mayor Peters called for a break at 8:31 p.m.; the meeting resumed at 8:37 p.m. G 0 D. NEW BUSINESS D-1 CONSIDERATION OF APPLICATION FOR THE HARBOR ADVISORY BOARD; (ADMINISTRATION) - This item was pulled from the agenda. D-2 REPORT ON INITIATIVE ORDINANCES PASSED AT GENERAL ELECTION HELD ON NOVEMBER 7, 2006; (CITY ATTORNEY) City Attorney Robert Schultz stated on November 7, 2006, the required number of qualified voters in the City of Morro Bay voted in favor of Measure "R" and Measure "S". He said Measure "R" amended the Morro Bay Municipal Code to require that council members who would seek to serve in the office of mayor before the normal expiration of their term must resign from their council seat at a time that would allow their replacement to be elected by the people no later than the same election wherein the mayoral election would occur. Measure "S" amends the Morro Bay Municipal Code to have the general municipal election held at the time of the statewide primary election with a runoff election, if necessary, to follow in the November election. The City Council received this report for information, and no action was taken. D-3 DISCUSSION ON ABANDONMENT OF RIGHT-OF-WAY POLICIES AND PROCEDURES; (PUBLIC SERVICES) City Attorney Robert Schultz stated at the March 12, 2007 Council meeting, Councilmember Winholtz requested discussion in regard to abandonment of the right-of- way on Olive Street. He noted the term "vacation" means the complete or partial abandonment or termination of the public right to use a street, highway, or public service easement. A public service easement is an easement acquired for public use by dedication or otherwise, for sewers, pipelines, electrical or water transmission lines, storm drains, drainage canals, and other limited use public easements other than for street or highway purposes. While retention of unusable rights -of -way should be avoided, all proposed vacations or abandonments must be carefully investigated since reacquisition, if the land is needed at a later date, can be difficult and expensive. Mr. Schultz recommended the City Council review the information provided and direct staff accordingly. The City Council received this report for information, and no action was taken. D-4 REVIEW OF HARBOR DEPARTMENT LEASE MANAGEMENT POLICY; (HARBOR) Harbor Director Rick Algert reviewed general background information on the Harbor Department Lease Management Policy and on the Tidelands granted property for City Council information. ® The City Council received this report for information, and no action was taken. 7 E MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 9, 2007 D-5 DISCUSSION ON THE NORTH EMBARCADERO WATERFRONT (NEW) FUTURES COMMITTEE GAINING NON-PROFIT STATUS; (CITY COUNCIL) Councilmember DeMeritt stated the Finance Sub -Committee of the North Embarcadero Waterfront (NEW) Futures Committee has contacted several people and organizations about opportunities to raise money for any future processes for NEW Futures. The Committee thought it would have access to grant money from foundations interested in redevelopment or rehabilitation of industrial sites. The consensus opinion that has become accepted by the Committee is the need to become a separate non-profit group, and to begin the process of re -forting the NEW Futures Group into a larger, separate group of .committed residents with non-profit status. Councilmember DeMeritt recommended the City Council allow the NEW Futures Group to begin the process of becoming a non-profit entity separate from the City. MOTION: Councilmember DeMeritt moved the City Council allow the NEW Futures Group to begin the process of becoming a non-profit entity separate from the City. The motion was seconded by Mayor Peters and carried unanimously. (5-0) D-6 CONSIDERATION OF PARTICIPATION IN MUNICIPAL PRODUCTIVITY WORKSHOP; (ADMINISTRATION) City Manager Robert Hendrix stated the City received information regarding a "GOVERNING" Management Workshops on Budgeting for Results; Better, Faster, Cheaper, and, Real -Life Measures for Real -Life Managers. This conference would be offered in Phoenix from April 17-19, 2007. Members of the Council had expressed interest in the concept of measuring efficiency as a means of improving the City's costs while also improving service. Mr. Hendrix recommended the City Council decide whether sufficient benefit exists to authorize a member of Council or City staff to attend this conference. The City Council declined participation in this workshop; no further action was taken. E 8 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 9, 2007 D-7 CONSIDERATION OF 2007-2008 FISCAL YEAR PROPOSED MEASURE Q PRIORITIES; (FINANCE) City Manager Robert Hendrix stated the City Council has made assurances to voters about priorities for use of funds derived from the additional half -cent sales tax approved as Measure Q. He said he recently met with the City's Department Directors to discuss the 2007-08 fiscal budget issues. The City general fund remains under fiscal stress, and equipment and maintenance needs continue to be deferred wherever possible. In past years reduction in staffing was required to balance available revenue. This year the budget discussion included how best to apply the funds coming from the local sales tax, keeping faith with the voters, adhering to the wishes of the City Council and also making practical sense when considered as part of the overall spending program. Mr. Hendrix recommended the City Council approve the recommended priorities and proposed uses of Measure Q funds in the 2007-2008 fiscal year budget. Councilmember Grantham stated it was never mentioned that Measure Q funds would be used for recreation & parks, harbor safety or sidewalks. He said the priorities received from the surveys were first for the fire department, second for the police department, and third for street improvements. Councilmember Grantham stated the Measure Q Oversight Committee has been formed to be sure that Measure Q funds are used for these priorities. Councilmember DeMeritt shared a recap of the "Importance of Uses of the Revenue Measure" that listed the top ten uses by the level of response from the survey. Based on this list, she stated she supports Measure Q funds be used for the fire department and infrastructure. Councilmember Peirce stated along with the other priorities, it is appropriate to include a percentage go towards the police department. He said for the first year, the City should maintain the priorities received from the surveys as promised to the citizens. Councilmember Winholtz stated the fire department should be first priority, but streets should also be considered as an important use of Measure Q funds. Mayor Peters suggested Measure Q funds be distributed as follows: fire department - $400,000; police department - $150,000; storm drains - $80,000; and streets - $50,000. Councilmember DeMeritt suggested the following percentages: 60% to the fine department; 30 to storm drains and streets; and 1 Oto public safety emergency. W MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — APRIL 9, 2007 Councilmember Winholtz stated she would prefer the percentage be split between storm drains and streets. Councilmember Grantham recommended allocating 50% to the fire department, 15% to storm drains, 15% to streets, 15% to the police department, and 5% to public safety. MOTION: Mayor Peters moved the City Council allocate 60/0/o to the fire department, 30% to storm drains and streets, and 10% to public safety. The motion was seconded by Councilmember DeMeritt. Councilmember Winholtz and Councilmember Grantham stated they would vote in opposition because they did not agree with the percentage breakdown. VOTE: The motion carried with Councilmember Grantham and Councilmember Winholtz voting no. (3-2) ADJOURNMENT The meeting adjourned at 9:47 p.m. Recorded by: &A�� Bridgett Bauer City Clerk E 1101 ® 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 26, 2007 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCILMEMBERS ANNOUNCEMENTS & PRESENTATIONS ® CLOSED SESSION REPORT PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period, the following rules shall be followed: • When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments are to be limited to three minutes. • All remarks shall be addressed to Council, as a whole, and not to any individual member thereof. • The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or staff. • Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering. • Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting. ® • Your participation in City Council meetings is welcome and your courtesy will be appreciated. ® In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 772-6205. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES FOR THE REGULAR CITY COUNCIL MEETING OF MARCH 12, 2007; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 RESOLUTION NO. 17-07 APPROVING AMENDMENT #1 TO THE LEASE AGREEMENT FOR MOORING ZONE A1-4, LOCATED OFF SHORE OF 699 EMBARCADERO WITH MORRO BAY MARINA; (HARBOR) ® RECOMMENDATION: Adopt Resolution No. 17-07. A-3 AUTHORIZATION TO SEND LETTER TO CAL TRANS REQUESTING IMPROVEMENTS AT THE INTERSECTION OF MAIN AND RADCLIFFE STREET; (PUBLIC SERVICES) RECOMMENDATION: Approve sending letter to Cal Trans requesting improvements at the intersection of Main and Radcliffe Street. A4 RECOMMENDATION TO USE PARK IN LIEU FUNDS FOR THE DEL MAR ROLLER HOCKEY RINK; (RECREATION & PARKS) RECOMMENDATION: Approve the use of up to $5,000 of Park -in -Lieu funds to repair and paint the Del Mar Roller Hockey Rink. A-5 DRAFT LETTER REGARDING APPOINTMENT TO STATE FISH & GAME COMMISSION; (HARBOR) RECOMMENDATION: Approve sending letter to Governor Schwarzenegger regarding appointment to the State Fish & Game Commission. ® A-6 PROCLAMATION DECLARING THE MONTH OF APRIL 2007 AS "FAIR HOUSING MONTH"; (PUBLIC SERVICES) RECOMMENDATION: Adopt Proclamation. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 REPORT ON NITRATES FROM GREG THOMAS, M.D., SAN LUIS OBISPO COUNTY HEALTH OFFICER; (PUBLIC SERVICES) RECOMMENDATION: Receive presentation for information. B-2 APPROVAL OF MORRO BAY BEAUTIFUL'S ART CAN PROJECT IN ACCORDANCE WITH THE PUBLIC ART POLICY; (RECREATION & PARKS) RECOMMENDATION: Approve Morro Bay Beautiful's Art Can Project in Accordance with the Public Art Policy. C. UNFINISHED BUSINESS C-1 RESOLUTION NO. 18-07 AMENDING POLICIES AND PROCEDURES ® REGARDING EX PARTE COMMUNICATIONS; (CITY ATTORNEY) RECOMMENDATION: Adopt Resolution No. 18-07. D. NEW BUSINESS D-1 STATUS REPORT ON FIRE STATION PROJECT; (PUBLIC SERVICES) RECOMMENDATION: Receive report for information. D-2 DISCUSSION ON SENDING A LETTER TO THE STATE DEPARTMENT OF FISH & GAME REGARDING BACK BAY HUNTING; (CITY COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. D-3 CONSIDER DIRECTING STAFF PARTICIPATION IN THE "COOL CITY" WEB SEMINARS; (CITY COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. E. 3 ® E. ADJOURNMENT u 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 REGULAR MEETING — MARCH 26, 2007 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Peters called the meeting to order at 6:00 p.m PRESENT: Janice Peters Mayor Melody DeMeritt Councilmember Rick Grantham Councilmember William Peirce Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix Andrea Lueker Robert Schultz Bridgett Bauer Bruce Ambo Bill Boucher Frank Cunningham John DeRohan Sue Lichtenbaum Mike Pond Susan Slayton City Manager Assistant City Manager City Attorney City Clerk Public Services Director Capital Projects Manager City Engineer . Police Chief Harbor Business Coordinator Fire Chief Finance Director ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR'S REPORTS & ANNOUNCEMENTS CLOSED SESSION REPORT — There were no Closed Session agenda items. PUBLIC COMMENT Hank Roth announced the next Neighborhood Watch meeting is scheduled on March 28a' and the topic will be "How to deter burglars and vandals". Keith Taylor encouraged support for the local PTA by attending a fundraiser at Del Mar Elementary_ School on April I". He also requested the City Council place on a future agenda the breakdown and disbursement of Measure Q funds. Betty Forsythe encouraged the community to shop local. She also expressed her appreciation for living life in Morro Bay. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 26, 2007 Grant Crowl expressed concern with an open trench located across the street from his house that has been open for over a month. He stated he would like the City Council to schedule a public workshop for citizens to be able to address their ideas and concerns within the City. Mr. Crowl noted he has seen many A -frame signs around town that are not legal unless you have street -front property. He also announced an energy -saving event on April I" where participants will turn off all power at 8:00 for five minutes. Peter Risley expressed concern with the cost of water and sewer bills and future cost for proper drinking water, as well as the administration of the City's water situation. The following people expressed concern with the City Council's action denying the request for a lease extension on Lease Site 87-88/87W-88W, and requested the City Council reconsider their decision: Violet Leage, Maridee Leage, Jack Franklin and George Leage. John Weiss announced upcoming Chamber of Commerce events. Roger Ewing addressed Item D-2 (Discussion on Sending a Letter to the State Department of Fish & Game Regarding Back Bay Hunting), and requested Council remember how many people expressed opposition to hunting in the back bay when drafting the letter to the Department of Fish & Game. He also addressed Item A-5 (Draft Letter Regarding Appointment to State Fish & Game Commission), stating Mr. de la Motte is an avid supporter of hunting in the back bay, and should not be promoted for a position on the Fish & Game Commission. Mayor Peters closed the hearing for public comment. DECLARATION OF FUTURE AGENDA ITEMS Councilmember DeMeritt requested the following future agenda items: 1) a report on the initiative ordinances passed a last year's General Election; 2) resolution establishing an Urban Forest Management Plan; and 3) discussion on the New Futures Committee gaining non-profit status; Councilmember Winholtz and Mayor Peters concurred on all three items. Councilmember Peirce requested the discussion on improving the Morro Rock and Target Rock parking lots. Mayor Peters called for a break at 7:03 p.m.; the meeting resumed at 7:15 pm. 2 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 26, 2007 A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES FOR THE REGULAR CITY COUNCIL MEETING OF MARCH 12, 2007; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 RESOLUTION NO. 17-07 APPROVING AMENDMENT #1 TO THE LEASE AGREEMENT FOR MOORING ZONE A1-4, LOCATED OFF SHORE OF 699 EMBARCADERO WITH MORRO BAY MARINA; (HARBOR) RECOMMENDATION: Adopt Resolution No.17-07. A-3 AUTHORIZATION TO SEND LETTER TO CAL TRANS REQUESTING ® IMPROVEMENTS AT THE INTERSECTION OF MAIN AND RADCLIFFE STREET; (PUBLIC SERVICES) RECOMMENDATION: Approve sending letter to Cal Trans requesting improvements at the intersection of Main and Radcliffe Street. A-4 RECOMMENDATION TO USE PARK IN LIEU FUNDS FOR THE DEL MAR ROLLER HOCKEY RINK; (RECREATION & PARKS) . RECOMMENDATION: Approve the use of up to $5,000 of Park -in -Lieu funds to repair and paint the Del Mar Roller Hockey Rink. A-5 DRAFT LETTER REGARDING APPOINTMENT TO STATE FISH& GAME COMMISSION; (HARBOR) RECOMMENDATION: Approve sending letter to Governor Schwarzenegger regarding appointment to the State Fish & Game Commission. A-6 PROCLAMATION DECLARING THE MONTH OF APRIL 2007 AS "FAIR HOUSING MONTH"; (PUBLIC SERVICES) RECOMMENDATION: Adopt Proclamation. 3 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 26, 2007 Councilmember DeMeritt pulled Item A-3 from the Consent Calendar; Mayor Peters pulled Item A-4; and Councilmember Winholtz pulled Item A-5. MOTION: Councilmember Peirce moved the City Council approve Items A-1, A-2, and A-6 of the Consent Calendar. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) A-3 AUTHORIZATION TO SEND LETTER TO CAL TRANS REQUESTING IMPROVEMENTS AT THE INTERSECTION OF MAIN AND RADCLIFFE STREET; (PUBLIC SERVICES) Councilmember DeMeritt recommended amendments to the proposed letter to Cal Trans requesting improvements at the Radcliffe/Main Street intersection. MOTION: Councilmember DeMeritt moved the City Council approve Item A-3 of the Consent Calendar as amended. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) ® A4 RECOMMENDATION TO USE PARK IN LIEU FUNDS FOR THE DEL MAR ROLLER HOCKEY RINK; (RECREATION & PARKS) Mayor Peters asked how often the Del Mar roller hockey rink is used, and perhaps Council should consider this location for another use. Councilmember Grantham stated he spoke with Andrea Lueker who noted there is no formal use of the rink. Councilmember Winholtz stated although it is used informally, it should be maintained and kept safe for use as a roller hockey rink. Councilmember DeMeritt agreed that it should be maintained for those who do use the rink. MOTION: Councilmember Peirce moved the City Council approve Item A-4 of the Consent Calendar. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) 4 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 26, 2007 A-5 DRAFT LETTER REGARDING APPOINTMENT TO STATE FISH & GAME COMMISSION; (HARBOR) Councilmember Winholtz stated she is not in support of the recommended applicant until she knows who else has applied for this seat on the Fish & Game Commission. Councilmember DeMeritt also stated she is not in support of this applicant. Councilmember Grantham stated he heard this applicant speak, and he is not in support of his application. Mayor Peters stated she would send her own letter of support of appointing Mr. de la Motte to the State Fish & Game Commission. Councilmember Peirce stated hunting in the back bay is not within the city limits, and he could support Mr. de la Motte if he can help the City's fishing fleet. ® MOTION: Mayor Peters moved the City Council approve Item A-5 of the Consent Calendar. The motion was seconded by Councilmember Peirce and failed with Councilmember DeMeritt, Councilmember Grantham and Councilmember Winholtz voting no. (2-3) B. PUBLIC HEARINGS, REPORTS & APPEARANCES B-1 REPORT ON NITRATES FROM GREG THOMAS, M.D., SAN LUIS OBISPO COUNTY HEALTH OFFICER; (PUBLIC SERVICES) The City Council received a presentation from Gregory Thomas, M.D., San Luis Obispo County Health Officer, on health concerns related to nitrate and nitrites in water. Mayor Peters opened the hearing for public comment. Dawn Feurberg stated distilled water is the best water to purchase in order to lower nitrate levels. She expressed concern that the nitrates are coming from excessive use of fertilizers used in farming, and stated the City should consider testing the groundwater for herbicides and pesticides in the summer when the nitrate levels are high, and during the shutdown of State Water in November. Ms. Feurberg referred to an article that noted nitrates could cause harmful health effects at certain levels. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 26, 2007 Noah Smukler stated nitrates are an important issue that should be considered. He said he supports the concept of increasing herbicide and pesticide monitoring, and noted the importance of preparing a prevention plan in order to control the impact on the community. Ilon Perlman stated it is likely that when nitrate levels rise, so do pesticide levels. He said protocols and full spectrum testing is necessary to provide healthy water for the community. Ginger Hendrix stated the desalination plant couldn't provide enough water for the community's needs. She also requested further testing of herbicides and pesticides of the City's groundwater. Mayor Peters closed the public comment hearing. Councilmember Winholtz stated copies of the information provided by Dr. Thomas should be forwarded to the Public Works Advisory Board. Mayor Peters suggested increasing the testing for herbicides and pesticides in the City's groundwater. This was an informational item, and Council did not take action. B-2 APPROVAL OF MORRO BAY BEAUTIFUL'S ART CAN PROJECT IN ACCORDANCE WITH THE PUBLIC ART POLICY; (RECREATION & PARKS) Assistant City Manager Andrea Lueker stated the City Council adopted a Public Art Policy in February 2006 in order to set forth standardized policies and procedures for the acceptance of donated artwork to the City. Pursuant to the Public Art Policy, the Art Can Project has been presented to the City's Advisory Boards and Commissions for their comments and recommendations. Ms. Lueker recommended the City Council receive a presentation from the proponents of the Art Can Project, and consider the comments and recommendations of the Advisory Boards and Commissions prior to their approval of the Art Can Project. The City Council received a presentation from Neil Farrell and Jayne Behman on the Art Can Project. Mayor Peters opened the hearing for public comment. u 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —MARCH 26, 2007 Bill Woodson, Treasurer of Morro Bay Beautiful, expressed his support for this project. Mayor Peters closed the public comment hearing. MOTION: Councilmember Peirce moved the City Council approve the Art Can Project proposed by Morro Bay Beautiful for 20 cans, and that it be in accordance with the City's Public Art Policy. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) C. UNFINISHED BUSINESS C-1 RESOLUTION. NO. 18-07 AMENDING POLICIES AND PROCEDURES REGARDING EX PARTE COMMUNICATIONS; (CITY ATTORNEY) City Attorney Robert Schultz stated the City Council at its February 13, 2007 meeting requested staff to review and amend City policies regarding ex parte communications. He said he reviewed City policies regarding ex parte communications and proposed additional language to Council policies for Council consideration. Mr. Schultz recommended the City Council review the additional language regarding ex parte communications, and adopt Resolution No. 18-07 amending policies and procedures regarding ex parte communications. The City Council requested staff continue this item to the April 9, 2007 City Council meeting with information received from other cities on their ex parte communication policies and procedures. No further action was taken on this item. D. NEW BUSINESS D-1 STATUS REPORT ON FIRE STATION PROJECT; (PUBLIC SERVICES) Capital Projects Manager Bill Boucher reviewed the status on the following Fire Department Projects: 1) Fire Station 53 - Harbor Street Apparatus Bay Project; 2) Station 54 — Bonita Street Apparatus Bay Project; and 3) Fire Station 53 — Harbor Street Administrative/Living Quarters Project. This was an informational item, and Council did not take action. �J 7 ® MINUTES - MORRO_BAY CITY COUNCIL REGULAR MEETING — MARCH 26, 2007 D-2 DISCUSSION ON SENDING A LETTER TO THE STATE DEPARTMENT OF FISH & GAME REGARDING BACK BAY HUNTING; (CITY COUNCIL) City Attorney Robert Schultz presented the letter sent to the State Department of Fish & Game regarding hunting in the back bay on June 13, 2005. He requested Council review and discuss this letter, and direct staff as to whether another letter should be sent to Fish & Game, and what the contents of the letter should include. MOTION: Councilmember DeMeritt moved the City Council draft a letter to the State Department of Fish & Game Commission in opposition to hunting in the back bay, and request this topic be placed on their agenda scheduled in the summer for consideration. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) D-3 CONSIDER DIRECTING STAFF PARTICIPATION IN THE "COOL CITY" WEB SEMINARS; (CITY COUNCIL) Councilmember DeMeritt announced the League of California Cities is providing an interactive virtual podium seminar on April 11, 2007 from 11:00 am. to 12:30 p.m. called "Can Small Cities be Cool?" The virtual tour presentation of successful initiatives in other small cities and towns outline the research findings and provides strategies to assist in building community vitality. Councilmember DeMeritt stated registration for this seminar is $89, and encouraged the participation of the City's elected officials, advisory boards, department heads, public services staff, and the public. MOTION: Councilmember DeMeritt moved the City Council approve registration in the "Cool Cities" virtual podium seminar; invite the public, and encourage participation by the City's elected officials, commission and advisory board members, department heads, and Public Services staff if possible. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) ADJOURNMENT The meeting adjourned at 9:21 p.m. Recorded by: dc')O�M,— Bridgett uer 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 — MARCH 12, 2007 CLOSED SESSION —MARCH 12, 2007 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. Wwj 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 67-68/67W-68W; 575 and 591 Embarcadero Negotiating Parties: City and Held/O'Neill Negations: Lease Terms Property: Lease Site 87-88/87W-88W; 833 Embarcadero Negotiating Parties: City and Violet Leage Negations: Lease Terms IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. ® PUBLIC SESSION —MARCH 12, 2007 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCILMEMBERS ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period, the following rules shall be followed: • When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments are to be limited to three minutes. • All remarks shall be addressed to Council, as a whole, and not to any ® individual member thereof. • The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or staff. • Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering. • Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting. • Your participation in City Council meetings is welcome and your courtesy will be appreciated. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 772-6205. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are ® approved without discussion. 2 ® A -I APPROVAL OF MINUTES FOR THE REGULAR CITY COUNCIL MEETINGS ON FEBRUARY 13, 2007 AND FEBRUARY 26, 2007; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 RESOLUTION NO. 15-07 RELATING TO THE CLASSIFICATION, COMPENSATION AND TERMS OF EMPLOYMENT OF MANAGEMENT EMPLOYEES OF THE CITY OF MORRO BAY; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 15-07. A-3 RESOLUTION NO. 16-07 RELATING TO THE CLASSIFICATION, COMPENSATION AND TERMS OF EMPLOYMENT OF CONFIDENTIAL EMPLOYEES OF THE CITY OF MORRO BAY; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 16-07. A-4 ORDINANCE NO. 522 ADOPTING AMENDMENTS TO TITLE 16 OF THE MORRO BAY MUNICIPAL CODE UPDATING THE CITY'S SUBDIVISION REGULATIONS AND REPEALING SECTION 17.49 RELATED TO COMMUNITY HOUSING PROJECTS; (PUBLIC SERVICES) RECOMMENDATION: Adopt Ordinance No. 522. A-5 FINDINGS OF APPROVAL FOR A REQUESTED VARIANCE AND CONDITIONAL USE PERMIT FOR A RESIDENCE LOCATED AT 340 OLIVE STREET; (PUBLIC SERVICES) RECOMMENDATION: Adopt the findings of approval for a variance and conditional use permit for a residence located at 340 Olive Street. A-6 RESOLUTION NO. 12-07 APPROVING THE SAN LUIS OBISPO COUNCIL OF GOVERNMENTS COOPERATIVE AGREEMENT FOR GRANT FUNDING; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 12-07. A-7 RESOLUTION NO. 13-07 AUTHORIZING EXECUTION OF LEASE AMENDMENT #3 ON LEASE SITE 144-144W AT 1287 EMBARCADERO; (HARBOR) RECOMMENDATION: Adopt Resolution No. 13-07. 97 ® A-8 RESOLUTION NO. 14-07 APPROVING A SUBLEASE AGREEMENT FOR A PORTION OF LEASE SITE 113 W LOCATED ADJACENT TO 1215 EMBARCADERO; (HARBOR) RECOMMENDATION: Adopt Resolution No. 14-07. A-9 RESOLUTION NO. 11-07 ADOPTING AMENDMENT TO THE MAJOR VEGETATION GUIDELINES DEFINITION; (CITY ATTORNEY) RECOMMENDATION: Adopt Resolution No. 11-07. A-10 PROCLAMATION DECLARING MARCH 11 —17, 2007 AS "GIRL SCOUTS MAKE THE WORLD A BETTER PLACE" WEEK; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. A-11 PROCLAMATION DECLARING MARCH 2O07 AS "AMERICAN RED CROSS MONTH"; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. A-12 PROCLAMATION DECLARING MARCH 20, 2007 AS "ARBOR DAY"; ® (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. B. PUBLIC HEARINGS, REPORTS & APPEARANCES 2 B-I COUNTY PRESENTATION ON UPDATE TO THE CONSERVATION ELEMENT OF THE COUNTY GENERAL PLAN RECOMMENDATION: Receive presentation for information. C. UNFINISHED BUSINESS —NONE. D. NEW BUSINESS D-I DISCUSSION ON EXTENDING THE CENTRAL BUSINESS DISTRICT ON MAIN STREET FROM QUINTANA ROAD TO HIGHWAY 41; (COUNCIL) RECOMMENDATION: Discuss and direct staff accordingly. 4 D-2 PROPOSED EXCEPTION TO THE CITY COUNCIL POLICY REQUIRING PUBLIC SERVICE DEPARTMENT ADMINISTRATION OF ALL CAPITAL PROJECTS TO ADMINISTER THE DEL MAR PARK TENNIS COURT PROJECT WITHIN THE DEPARTMENT OF RECREATION AND PARKS AND FURTHER EXPEDITING THE PROJECT; (CITY COUNCIL) RECOMMENDATION: Allow the exception to the policy requiring the Public Services Department to administer all capital projects and to allow the Recreation & Parks Department to administer the Del Mar Park Tennis Court Project. D-3 CITY COUNCIL CONSIDERATION OF A TOWN HALL MEETING FOR BUSINESS CONCEPT AND ANY PLANNING NEEDED FOR SUCH A MEETING; (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. 11 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 — MARCH 12, 2007 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 Melody DeMeritt Rick Grantham William Peirce Betty Winholtz Robert Hendrix Robert Schultz Councilmember Councilmember Councilmember Councilmember City Manager City Attorney MOTION: Councilmember Grantham moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Peirce 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 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 67-68/67W-68W; 575 and 591 Embarcadero Negotiating Parties: City and Held/O'Neill Negations: Lease Terms • Property: Lease Site 87-88/87W-88W; 833 Embarcadero. Negotiating Parties: City and Violet Leage Negations: Lease Terms The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:56 p.m. MOTION: Councilmember Grantham moved the meeting be adjourned. The motion was seconded by Councilmember Peirce and unanimously carried. (5-0) 0 The meeting adjourned at 5:56 p.m. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —MARCH 12, 2007 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Peters called the meeting to order at 6:00 p.m PRESENT: Janice Peters Mayor Melody DeMeritt Councilmember Rick Grantham Councilmember William Peirce Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix Andrea Lueker Robert Schultz Bridgett Bauer Rick Algert Bruce Ambo Frank Cunningham Steve Knuckles Tim Olivas Mike Prater Susan Slayton City Manager Assistant City Manager City Attorney City Clerk Harbor Director Public Services Director City Engineer Acting Fire Chief Acting Police Chief Planning Manager 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 Bill Newman addressed Item D-2 (Proposed Exception to the City Council Policy Requiring Public Service Department Administration of all Capital Projects to Administer the Del Mar Park Tennis Court Project Within the Department of Recreation and Parks and Further Expediting the Project) and requested Council's support of this item in order to expedite this project. Colby Cromer also addressed Item D-2 stating $150,000 of City funds was committed to this project several years ago, and it was augmented with a competitive grant with the State to serve this regional need. He said tennis courts have been dedicated for Del Mar Park for many years, and would be used by people of all ages. El ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 12, 2007 Barbara Riddell, Friends of the Library, announced a book by author Mary Moses, who has been very involved in Morro Bay community efforts, will be a special lottery prize at the next Friends of the Library meeting on Friday March 16. Marla Jo Bruton stated she has been in contact with Californians Aware that does seminars on the Ralph M. Brown Act. She expressed concern with the lack of the City's noticing for public participation in City meetings. Ms. Bruton stated the Wastewater Treatment Plant Upgrade needs public input, especially since discussion will include tertiary treatment. Ken Vesterfelt shared a drawing and information on the progress of his new project on Morro Bay Boulevard. Ginger Hendricks stated her experience with submitting plans for a remodel on their home was a frustrating process. She said the City should consider affordable solutions for housing remodels that can maintain the character of the house. Melinda Rice announced citizens are working on a historical event and a local non- partisan project called Caring for America that will be chaired by Grace Melton, and donations will be given to the Morro Bay Teen Center. John Bafford announced the annual Easter Egg Hunt sponsored by the Morro Bay Eagles would be held at Del Mar Park on April 7, 2007. Mayor Peters closed the hearing for public comment. Mayor Peters called for a break at 7:00 p.m.; the meeting resumed at 7:15 p.m. DECLARATION OF FUTURE AGENDA ITEMS Councilmember Winholtz requested to agendize discussion on abandonment of right-of- way on Olive Street; Councilmember DeMeritt concurred. Mayor Peters requested a status report on the fire station project be given at each meeting. Mayor Peters also requested the discussion on ways to expedite Public Services projects. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are ® approved without discussion. 3 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —MARCH 12, 2007 A-1 APPROVAL OF MINUTES FOR THE REGULAR CITY COUNCIL MEETINGS ON FEBRUARY 13, 2007 AND FEBRUARY 26, 2007; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 RESOLUTION NO. 15-07 RELATING TO THE CLASSIFICATION, COMPENSATION AND TERMS OF EMPLOYMENT OF MANAGEMENT EMPLOYEES OF THE CITY OF MORRO BAY; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 15-07. A-3 RESOLUTION NO. 16-07 RELATING TO THE CLASSIFICATION, COMPENSATION AND TERMS OF EMPLOYMENT OF CONFIDENTIAL EMPLOYEES OF THE CITY OF MORRO BAY; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 16-07. A-4 ORDINANCE NO. 522 ADOPTING AMENDMENTS TO TITLE 16 OF THE MORRO BAY MUNICIPAL CODE UPDATING THE CITY'S SUBDIVISION REGULATIONS AND REPEALING SECTION 17.49 RELATED TO COMMUNITY HOUSING PROJECTS; (PUBLIC SERVICES) RECOMMENDATION: Adopt Ordinance No. 522. A-5 FINDINGS OF APPROVAL FOR A REQUESTED VARIANCE AND CONDITIONAL USE PERMIT FOR A RESIDENCE LOCATED AT 340 OLIVE STREET; (PUBLIC SERVICES) RECOMMENDATION: Adopt the findings of approval for a variance and conditional use permit for a residence located at 340 Olive Street. A-6 RESOLUTION NO. 12-07 APPROVING THE SAN LUIS OBISPO COUNCIL OF GOVERNMENTS COOPERATIVE AGREEMENT FOR GRANT FUNDING; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 12-07. 4 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —MARCH 12, 2007 A-7 RESOLUTION NO. 13-07 AUTHORIZING EXECUTION OF LEASE AMENDMENT #3 ON LEASE SITE 144-144W AT 1287 EMBARCADERO; (HARBOR) RECOMMENDATION: Adopt Resolution No. 13-07. A-8 RESOLUTION NO. 14-07 APPROVING A SUBLEASE AGREEMENT FOR A PORTION OF LEASE SITE 113W LOCATED ADJACENT TO 1215 EMBARCADERO; (HARBOR) RECOMMENDATION: Adopt Resolution No. 14-07. A-9 RESOLUTION NO. 11-07 ADOPTING AMENDMENT TO THE MAJOR VEGETATION GUIDELINES DEFINITION; (CITY ATTORNEY) RECOMMENDATION: Adopt Resolution No. 11-07. A-10 PROCLAMATION DECLARING MARCH 11 —17, 2007 AS "GIRL SCOUTS ® MAKE THE WORLD A BETTER PLACE" WEEK; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. A-I1 PROCLAMATION DECLARING MARCH 2O07 AS "AMERICAN RED CROSS MONTH"; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. A-12 PROCLAMATION DECLARING MARCH 20, 2007 AS "ARBOR DAY'; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. Councilmember Winholtz pulled Items A-1, A-2, A-6 and A-8 from the Consent Calendar; Mayor Peters pulled Items A-10 and A-11; Councilmember DeMeritt pulled Item A-12. MOTION: Councilmember DeMeritt moved the City Council approve Items A-3, A-4, A-5, A-7 and A-9 of the Consent Calendar. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 12, 2007 A-1 APPROVAL OF MINUTES FOR THE REGULAR CITY COUNCIL MEETINGS ON FEBRUARY 13, 2007 AND FEBRUARY 26, 2007; (ADMINISTRATION) Councilmember Winholtz requested the addition of Board of Supervisor James R. Patterson's presentation of a Resolution of Appreciation for her participation on the San Luis Obispo Council of Governments and San Luis Obispo Regional Transit Authority Boards be added to Public Comment of the February 26, 2007 City Council minutes. MOTION: Councilmember Winholtz moved the City Council approve Item A-1 of the Consent Calendar as amended. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) A-2 RESOLUTION NO. 15-07 RELATING TO THE CLASSIFICATION, COMPENSATION AND TERMS OF EMPLOYMENT OF MANAGEMENT EMPLOYEES OF THE CITY OF MORRO BAY; (ADMINISTRATION) ® Councilmember Winholtz asked if the fiscal impact on this item was approximately $3,000; Assistant City Manager Andrea Lueker responded in the affirmative. 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-6 RESOLUTION NO. 12-07 APPROVING THE SAN LUIS OBISPO COUNCIL OF GOVERNMENTS COOPERATIVE AGREEMENT FOR GRANT FUNDING; (PUBLIC SERVICES) Councilmember Winholtz requested clarification on the projects listed in the staff report. City Engineer Frank Cunningham stated the funds were allocated on the North Main Street Bike Path; any unused funds will be maintained and allocated for other projects. He said the Waterfront Boardwalk and Roundabout projects are not a part of this Cooperative Agreement. Councilmember DeMeritt addressed the Radcliffe/Main Street Intersection and asked if the allocated funds would cover the project. Mr. Cunningham responded funding would be $15,000 from San Luis Obispo Council of Governments and $15,000 of City funds. She also asked if a technical representative from San Luis Obispo Council of Governments has reviewed a diagram of the proposed Roundabout. Mr. Cunningham ® responded probably not based on the Cooperative Agreement Funding portion of the project. 131 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — MARCH 12, 2007 MOTION: Councilmember Winholtz 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 RESOLUTION NO. 14-07 APPROVING A SUBLEASE AGREEMENT FOR A PORTION OF LEASE SITE 113W LOCATED ADJACENT TO 1215 EMBARCADERO; (HARBOR) Councilmember Winholtz asked who is the applicant of the sublease agreement. The City Council heard from Zoe Ann Anders and Annie Clapp, doing business as Big Rock Charters. MOTION: Councilmember Winholtz moved the City Council approve Item A-8 of the Consent Calendar. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) ® A-10 PROCLAMATION DECLARING MARCH 11 —17, 2007 AS "GIRL SCOUTS MAKE THE WORLD A BETTER PLACE" WEEK; (ADMINISTRATION) Mayor Peters presented the Proclamation to Girl Scout Troop 308. MOTION: Councilmember Peirce moved the City Council approve Item A-10 of the Consent Calendar. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) A-11 PROCLAMATION DECLARING MARCH 2O07 AS "AMERICAN RED CROSS MONTH"; (ADMINISTRATION) MOTION: Councilmember Peirce moved the City Council approve Item A-11 of the Consent Calendar. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) A-12 PROCLAMATION DECLARING MARCH 20, 2007 AS "ARBOR DAY"; (ADMINISTRATION) Councilmember DeMeritt urged citizens to take this opportunity to plant trees throughout the City. rl MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —MARCH 12, 2007 MOTION: Councilmember DeMeritt moved the City Council approve Item A-12 of the Consent Calendar. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 COUNTY PRESENTATION ON UPDATE TO THE CONSERVATION ELEMENT OF THE COUNTY GENERAL PLAN The City Council received a presentation from Chuck Stevenson and James Caruso of the San Luis Obispo County Department of Planning and Building on the Conservation Element Update. Mayor Peters opened the hearing for public comment; there being no comments, Mayor Peters closed the public comment hearing. No action was taken on this item. .� C. UNFINISHED BUSINESS — None. D. NEW BUSINESS D-I DISCUSSION ON EXTENDING THE CENTRAL BUSINESS DISTRICT ON MAIN STREET FROM QUINTANA ROAD TO HIGHWAY 41; (COUNCIL) City Engineer Frank Cunningham stated at the February 26, 2007 City Council meeting, during the update discussion on the Radcliffe/Main Street intersection, it was suggested to improve safety at the intersection by lowering the speed limit. City Council requested a follow-up discussion occur regarding he proposal to lower the speed limit from 30 mph to 25 mph by extending the Central Business District on Main Street from Quintana Road to Highway 41. Mr. Cunningham stated the City Traffic Safety Advisory Committee recommends against extending the Central Business District along Main Street; however, if any such extension were in the City Council's interest, that it not extend beyond the Main Street/Highway One bridge. Mr. Cunningham further recommended a letter be sent to Cal Trans District 5 to facilitate farther intersection improvements. MOTION: Councilmember DeMeritt moved the City Council direct staff to extend the 25 mph speed limit beyond the bridge by Radcliffe Avenue, and continue discussion on the letter to Cal Trans to the next meeting after review by the City Engineer, City Attorney and herself The motion was ® seconded by Councilmember Winholtz and carried unanimously. (5-0) MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING —MARCH 12, 2007 D-2 PROPOSED EXCEPTION TO THE CITY COUNCIL POLICY REQUIRING PUBLIC SERVICE DEPARTMENT ADMINISTRATION OF ALL CAPITAL PROJECTS TO ADMINISTER THE DEL MAR PARK TENNIS COURT PROJECT WITHIN THE DEPARTMENT OF RECREATION AND PARKS AND FURTHER EXPEDITING THE PROJECT; (CITY COUNCIL) Assistant City Manager Andrea Lueker stated the City Council adopted Resolution No. 33-04 on April 26, 2004 establishing capital project management through the Public Services Department. She said the Del Mar Park Tennis Court project is a funded capital project whose position is behind several other large capital projects. Prior to the adoption of Resolution No. 33-04, the Recreation and Parks Department staff was successful in completion of a number of capital projects. Ms. Lueker recommended the City Council allow the exception to the policy requiring the Public Services Department to administer all capital projects and to allow the Recreation and Parks Department to administer the Del Mar Park Tennis Court project. MOTION: Councilmember Winholtz moved the City Council allow the exception to the policy requiring the Public Services Department to administer all capital projects and to allow the Recreation and Parks Department to administer the Del Mar Park Tennis Court project. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) D-3 CITY COUNCIL CONSIDERATION OF A, TOWN HALL MEETING FOR BUSINESS CONCEPT AND ANY PLANNING NEEDED FOR SUCH A MEETING; (CITY COUNCIL) MOTION: Mayor Peters moved the City Council schedule a Town Hall Meeting later in the year with the concept of the business community. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) ADJOURNMENT The meeting adjourned at 8:17 p.m. Recorded by: Bridgett Bauer ® City Clerk 6 ® 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 26, 2007 CLOSED SESSION — FEBRUARY 26, 2007 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. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. ® PUBLIC SESSION — FEBRUARY 26, 2007 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 CITY COUNCIL MEETING ON FEBRUARY 13, 2007; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 REQUEST TO FILL VACANT POSITION - ACCOUNT CLERK I; (FINANCE) RECOMMENDATION: Authorize the Finance Director to start the recruitment to fill the Account Clerk I position. A-3 RESOLUTION NO. 08-07 ADOPTING A CALIFORNIA PUBLIC EMPLOYEE'S DEFERRED COMPENSATION PLAN; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 08-07. A4 APPROVAL OF SAN LUIS OBISPO COUNCIL OF GOVERNMENTS COOPERATIVE AGREEMENT FOR GRANT FUNDING; (PUBLIC SERVICES) , RECOMMENDATION: This item has been pulled from the agenda. A-5 RESOLUTION NO. 09-07 ACCEPTING FINAL MAP FOR APPROVED 7- LOT RESIDENTIAL CLUSTER DEVELOPMENT LOCATED AT 3000 HEMLOCK AVENUE; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 09-07. A-6 RESOLUTION NO. 11-07 ADOPTING AMENDMENT TO THE MAJOR VEGETATION GUIDELINES DEFINITION; (CITY ATTORNEY) RECOMMENDATION: Adopt Resolution No. 11-07. A-7 PROCLAMATION DECLARING MARCH 2O07 AS "GRAND JURY AWARENESS MONTH'; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. A-8 PROCLAMATION DECLARING FEBRUARY 27, 2007 AS "SPAY DAY USA'; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. 3 ® B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 APPEAL OF PLANNING COMMISSION'S DENIAL OF A VARIANCE FOR A RESIDENCE LOCATED AT 340 OLIVE STREET; (PUBLIC SERVICES) RECOMMENDATION: Uphold the decision of the Planning Commission and deny the appeal. B-2 CONSIDERATION OF SAN LUIS OBISPO COUNCIL OF GOVERNMENTS NORTH COAST SCENIC BYWAY CORRIDOR PLAN, SCENIC BYWAY LOGO AND BYWAY COMMUNITY GATEWAY PROGRAM; (PUBLIC SERVICES) RECOMMENDATION: Open the public hearing; receive public testimony; and, consider recommendations for adoption by the San Luis Obispo Council of Governments Board. B-3 ORDINANCE NO. 522 ADOPTING AMENDMENTS TO TITLE 16 OF THE MORRO BAY MUNICIPAL CODE UPDATING THE SUBDIVISION REGULATIONS AND ENVIRONMENTAL DOCUMENT - FIRST READING AND INTRODUCTION; (PUBLIC SERVICES) ® RECOMMENDATION: Open the public hearing for review of the draft Subdivision Regulations of the Morro Bay Municipal Code Update; receive public testimony; approve the Negative Declaration; and, approve Ordinance No. 522 for first reading and introduction. E B-4 AMENDMENT TO MASTER FEE SCHEDULE TO INCLUDE RENTAL OF THE MORRO BAY TEEN CENTER; (RECREATION & PARKS) RECOMMENDATION: Approve the Morro Bay Teen Center rental guidelines and amendment to the Master Fee Schedule for rental of the Morro Bay Teen Center. B-5 RESOLUTION NO. 10-07 APPROVING AMENDMENT TO THE PUBLIC EMPLOYEE RETIREMENT SYSTEM (PERS) CONTRACT (4TH LEVEL SURVIVOR BENEFIT FOR PERS MISCELLANEOUS EMPLOYEES); AND ORDINANCE NO. 526 AUTHORIZING AMENDMENT- FIRST READING AND INTRODUCTION RECOMMENDATION: Adopt Resolution No. 10-07, and approve Ordinance No. 526 for first reading and introduction. 4 C. UNFINISHED BUSINESS C-I REPORT ON STATUS OF INTERSECTION OF RADCLIFFE AND MAIN STREETS; (PUBLIC SERVICES) RECOMMENDATION: Discuss and direct staff accordingly. D. NEW BUSINESS D-1 REQUEST OF THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY (CSCDA) TO WAIVE A TAX AND EQUITY FISCAL RESPONSIBILITY ACT PUBLIC HEARING FOR THE ISSUANCE OF REVENUE BONDS FOR HEALTH FACILITIES OWNED OR OPERATED BY THE OPTIONS FAMILY OF SERVICES ("OPTIONS"); (CITY ATTORNEY) RECOMMENDATION: Deny the request of the California Statewide Communities Development Authority to waive a public hearing for the issuance of revenue bonds for the financing of health facilities owned or operated by the Options Family of Services. D-2 STATUS OF CITY COUNCIL CONSIDERATION OF AN OFF -LEASH DOG PARK; (RECREATION & PARKS) RECOMMENDATION: Discuss and direct staff accordingly. E. ADJOURNMENT THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TIME SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 772-6200 FOR FURTHER INFORMATION. COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST AT CITY HALL, LIBRARY, AND MILLS STATIONERY. IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE ® MEETING. 5 ® MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION — FEBRUARY 26, 2007 CITY HALL CONFERENCE ROOM - 5:00 P.M. El E Mayor Peters called the meeting to order at 5:00 p.m PRESENT: Janice Peters Mayor Melody DeMeritt Councilmember Rick Grantham 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 Grantham 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. The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:10 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 5:10 p.m. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 26. 2007 VETERANS MEMORIAL HALL - 6:00 P.M. u Mayor Peters called the meeting to order at 6:00 p.m. PRESENT: Janice Peters Mayor Melody DeMeritt Rick Grantham William Peirce Betty Winholtz STAFF: Robert Hendrix Andrea Lueker Robert Schultz Bridgett Bauer Rick Algert Bruce Ambo Frank Cunningham John DeRohan Rachel Grossman Mike Pond Mike Prater Susan Slayton Councilmember Councilmember Councilmember Councilmember City Manager Assistant City Manager City Attorney City Clerk Harbor Director Public Services Director City Engineer Police Chief Associate Planner Fire Chief Planning Manager 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 San Luis Obispo County Board of Supervisor James R. Patterson, District 5, presented Councilmember Winholtz with a Resolution of Appreciation for her participation on the San Luis Obispo Council of Governments and San Luis Obispo Regional Transit Authority Boards for the past two years. The following people requested Council support for a permanent fenced off -leash dog park at Del Mar Park: Rick Gilligan, Anita Ayoub, Sue Dietrich, Joe Feginess, Kim Burt, Lisa Harper -Henderson, Joe Hoeflich, and Jane von Kaye. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 26, 2007 The following people expressed concern with the dangerous intersection at Radcliffe and Main Street, and requested Council consider the following recommendations: 1) turning off the right turn signal at Quintana Road and no right turn on a red light; 2) address the conflicting speed limits in the area; 3) consider re-routing the eastern extreme of Radcliffe over into an easement owned by CalTrans; 4) consider the placement of a stoplight at Highway 41; 5) prohibit parking on the right side of Radcliffe by painting the curb red; and, 6) work with CalTrans for a solution to the problem: Ron Brizner, Warren Linville, David South, Amy Colerman, Julie Thomas, and Ann Miranda. The following people requested the City Council schedule a public hearing on obtaining goals and policies on a proposed ordinance relating to building bulk, size and scale and to permit residents to present their findings and recommendations: Bob Tem Dorothy Cutter, and Liz Klinzman. Keith Taylor stated the CPR class sponsored by the Morro Bay Fire Department, Sierra Vista and the American Heart Association was a huge success. He also announced a promotion sponsored by Circuit City called Firedog that will be awarding up to $100,000 to fire departments that are nominated by members of their community, and the ® nominator also has a chance to win $10,000 in home electronics. He listed reasons of how our Fire Department would benefit from this award, and requested citizen participation. Joey Racano shared a map of the Estero Bay Hydrologic Unit that shows the communities involved with the same water source, and requested Council consider the review of a regional wastewater treatment facility. Lisa Harper -Henderson expressed support for tertiary treatment for the wastewater treatment plant. Matt Makowetski referred to a neighboring residence that was denied a building permit by the Planning Commission for a remodel of a single-family residence. He said there is a residence in the same neighborhood that is much larger with the same setbacks. Mr. Makowetski stated the City needs an architectural review board to maintain consistency in the City's neighborhoods. Barbara Riddell, Friends of the Library, announced an informational talk on the remodel of the Morro Bay Library on February 27`s at 6:30 p.m. Mayor Peters closed the hearing for public comment. Mayor Peters called for a break at 7:15 p.m.; the meeting resumed at 7:20 p.m. 3 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 26, 2007 DECLARATION OF FUTURE AGENDA ITEMS Mayor Peters requested to agendize the following items: 1) Council discussion on implications of extending the boundary of the Central Business District North along Main to the Highway 41 intersection and extending a 25 mph speed limit in this area as well (Councilmember Peirce and Councilmember DeMeritt concurred); 2) Council discussion on a proposed exception to the City Council Policy requiring Public Service Department Administration of all Capital Projects Administer the Del Mar Park Tennis Court Project within the Department of Recreation and Parks and further expediting the project (Councilmember Winholtz and Councilmember DeMeritt concurred); 3) City Council consideration of Town Hall Meeting for Business Concept and any planning needed for such a meeting (Councilmember Peirce and Councilmember Grantham concurred); and 4) City Council presentation on "Community Broadband" Program (Councilmember Peirce concurred). Councilmember DeMeritt requested to agendize consideration of directing staff participation in the "Cool City" web seminars (Councilmember Winholtz concurred). ® A. CONSENT CALENDAR E Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES FOR THE REGULAR CITY COUNCIL MEETING ON FEBRUARY 13, 2007; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 REQUEST TO FILL VACANT POSITION - ACCOUNT CLERK I; (FINANCE) RECOMMENDATION: Authorize the Finance Director to start the recruitment to fill the Account Clerk I position. A-3 RESOLUTION NO. 08-07 ADOPTING A CALIFORNIA PUBLIC EMPLOYEE'S DEFERRED COMPENSATION PLAN; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 08-07. 2 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 26, 2007 A4 APPROVAL OF SAN LUIS OBISPO COUNCIL OF GOVERNMENTS COOPERATIVE AGREEMENT FOR GRANT FUNDING; (PUBLIC SERVICES) RECOMMENDATION: This item has been pulled from the agenda. A-5 RESOLUTION NO. 09-07 ACCEPTING FINAL MAP FOR APPROVED 7- LOT RESIDENTIAL CLUSTER DEVELOPMENT LOCATED AT 3000 HEMLOCK AVENUE; (PUBLIC SERVICES) RECOMMENDATION: Adopt Resolution No. 09-07. A-6 RESOLUTION NO. 11-07 ADOPTING AMENDMENT TO THE MAJOR VEGETATION GUIDELINES DEFINITION; (CITY ATTORNEY) RECOMMENDATION: Adopt Resolution No. 11-07. ® A-7 PROCLAMATION DECLARING MARCH 2O07 AS "GRAND JURY AWARENESS MONTH'; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. A-8 PROCLAMATION DECLARING FEBRUARY 27, 2007 AS "SPAY DAY USA'; (ADMINISTRATION) RECOMMENDATION: Adopt Proclamation. Councilmember DeMeritt pulled Item A-6 from the Consent Calendar; Mayor Peters pulled Items A-7 and A-8. MOTION: Councilmember Peirce moved the City Council approve Items A-2, A-3 and A-5 of the Consent Calendar. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) A-6 RESOLUTION NO. 11-07 ADOPTING AMENDMENT TO THE MAJOR VEGETATION GUIDELINES DEFINITION; (CITY ATTORNEY) Councilmember DeMeritt referred to Resolution No. 11-07, 7's Whereas, that states "the City of Morro Bay also recognizes that residents in already -developed single family zones should have the freedom to determine the nature of their private landscaped ® surroundings." She recommended the City Council delete this section of the Resolution, 5 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 26, 2007 and also delete Section 7 (Item c) of the Major Removal, Replacement and Protection Guidelines, (exceptions which are not considered major vegetation), which states: "Trees in single family residential zones on lots occupied only by a single family detached dwelling associated accessory structures shall not require a Coastal Development Permit for removal." She expressed concern with these added exceptions because it seems to confine this to undeveloped land, street trees and commercial property. Council discussed the various issues related to the amendment to the Major Vegetation Guidelines, and concurred to continue this item for further discussion. MOTION: Councilmember DeMeritt moved the City Council continue this item to the March 12, 2007 City Council meeting. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) A-7 PROCLAMATION DECLARING MARCH 2O07 AS "GRAND JURY AWARENESS MONTH'; (ADMINISTRATION) MOTION: Councilmember Peirce moved the City Council approve Item A-7 of the ® Consent Calendar. The motion was seconded by Councilmember Winholtz and carved unanimously. (5-0) Mayor Peters presented the Proclamation to representatives of the San Luis Obispo County Grand Jury. A-8 PROCLAMATION DECLARING FEBRUARY 27, 2007 AS "SPAY DAY USA"; (ADMINISTRATION) MOTION: Councilmember Peirce moved the City Council approve Item A-8 of the Consent Calendar. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) Mayor Peters presented the Proclamation to Diana Duncan of the Homeless Animal Rescue Team. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 APPEAL OF PLANNING COMMISSION'S DENIAL OF A VARIANCE FOR A RESIDENCE LOCATED AT 340 OLIVE STREET; (PUBLIC SERVICES) Planning Associate Rachel Grossman stated the applicant proposes to convert an existing substandard two -car garage into habitable space and construct a new code compliant two - car garage that would encroach into the required rear and exterior yard setbacks. On ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 26, 2007 January 2, 2007, the Planning Commission approved the issuance of a Conditional Use Permit for a 395 square foot addition to an existing non -conforming residence, but denied the applicant's request for a variance to allow construction of a two -car garage that would encroach into the required rear and exterior side yard setbacks. Ms. Grossman recommended the City Council receive public testimony, and uphold the decision of the Planning Commission and deny the appeal. Cathy Novak, representing the applicant, stated a famous local artist, Aaron Kirkpatrick, built this house in 1928. The applicant has kept the house in tact with original hardware, exterior lights and many other historic amenities, and it is their goal to keep the house character as close as possible to the original style. The applicant proposes to build a two - car garage directly in front of the existing garage to enable him to use the old garage area to add two bedrooms, a bath and a laundry room to the existing one bedroom home. She noted changing the remodel project as proposed to another alternative would amount to substantial costs. The existing garage area is not wide enough for a standard two -car garage so the additional area would have to come out of the kitchen and require significant interior remodeling. Also, as proposed by the Planning Commission, the ® existing house is not structurally sufficient to build a second story so it would be a large undertaking to construct a second level. Ms. Novak stated this is not a special privilege because there are other properties in the vicinity that do not meet the 20-foot setback and some even have structures in the right-of-way. The City allows for reduced setbacks in the R-1 zone when 50% or more of the homes in that block have reduced setbacks. The project is consistent with the LCP by keeping the character of the house; however, if the house is redesigned with a garage on the western side or a second story, it would change the character, bulk and scale and be more difficult to determine that it is consistent with the LCP. Ms. Novak requested the City Council take into consideration what is reasonable and feasible in this situation to add a garage and modest space to this house, and support the request of the applicant by upholding the appeal. Mayor Peters opened the hearing for public comment. Gary Lasater, applicant, stated this house was built by a local artist that included an art studio that was built to capture the light from the north with large pane windows. He said this house was not built for a family, and his family needs more space for his children and grandchildren. Mr. Lasater stated along with the proposed remodel, he would like to maintain the history, character and charm of this house. John Parker stated this home is an excellent example of Spanish architecture, which was popular in Morro Bay in the 1920's. He said the proposed variance would maintain the character of this house. Mr. Parker stated the Council should approve this appeal if they ® want to maintain its historic character. 7 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 26, 2007 Keith Taylor expressed support for the variance because it does not change the integrity of character of the house. Mayor Peters closed the public comment hearing. Councilmember Peirce stated the placement of the garage on the western side would destroy the character of the house. He said the proposed plans for the garage would only bring it out a couple of feet with plenty of room to park along with maintaining the character of the house. Councilmember Winholtz suggested giving the whole length of Olive Street, on the south side, ten feet in order to relieve the need for a variance. Councilmember Grantham stated he supports this appeal because it fits well in the neighborhood. He noted the neighbors support the project, and the trees look great. Councilmember DeMeritt stated she loves older homes and would support this appeal in order to maintain the historic value of this home. She also noted she supports ® Councilmember Winholtz recommendation of expanding Olive Street in the future. Mayor Peters stated this is a beautiful home with a good layout. She said the proposed plans would maintain the look and value that it has as a historic building. Mayor Peters expressed support for granting the appeal. u Councilmember Winholtz stated she would vote in opposition of this appeal because there should be no special privilege when there are other alternatives available to this project. MOTION: Councilmember Peirce moved the City Council tentatively uphold the appeal, and direct staff to return to Council with appropriate findings for approval. The motion was seconded by Councilmember DeMeritt and carried with Councilmember Winholtz voting no. (4-1) B-2 CONSIDERATION OF SAN LUIS OBISPO COUNCIL OF GOVERNMENTS NORTH COAST SCENIC BYWAY CORRIDOR PLAN, SCENIC BYWAY LOGO AND BYWAY COMMUNITY GATEWAY PROGRAM; (PUBLIC SERVICES) San Luis Obispo Council of Governments representative Darren Brown presented the San Luis Obispo North Coast Scenic Byway Update for Council information. E? ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 26, 2007 Mayor Peters opened the hearing for public comment; there being no comments. Mayor Peters closed the public comment hearing. Councilmember Winholtz stated she was on the sub -committee for this program and recommended the following: 1) the Sea West Ranch owned by the Department of State Parks be added to the second map in the document; 2) the Morro Bay State Park Marina and Museum of Natural History, Black Mountain, and the fact the State Park was a CCC built facility be included in the document; 3) Cayucos should be included; and 4) San Simeon State Park Interpretative Center has maps that divert traffic on Highway 46 to Highway 101, and it should coordinate with other roadways. MOTION: Councilmember Grantham moved the City Council approve the San Luis Obispo North Coast Scenic Byway Draft Logo and Corridor Plan. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) B-3 ORDINANCE NO. 522 ADOPTING AMENDMENTS TO TITLE 16 OF THE MORRO BAY MUNICIPAL CODE UPDATING THE SUBDIVISION ® REGULATIONS AND ENVIRONMENTAL DOCUMENT - FIRST READING AND INTRODUCTION; (PUBLIC SERVICES) Planning Manager Mike Prater presented the updated Subdivision Ordinance with amendments made by the City Council at its January 22, 2007 meeting. He recommended the City Council open the public hearing for review of the draft Subdivision Regulations of the Morro Bay Municipal Code update; receive public testimony; approve the Negative Declaration; and consider approving the first reading and introduction of Ordinance No. 522 by number and title only. Mayor Peters opened the hearing for public comment. John Parker recommended several amendments to the Subdivision Ordinance. Mayor Peters closed the public comment hearing. MOTION: Councilmember Grantham moved the City Council approve the Negative Declaration; and, approve the first reading and introduction of Ordinance No. 522 adopting amendments to Title 16 of the Morro Bay Municipal Code updating the Subdivision Regulations and Environmental Document with revisions to Section 17.49.070 (Tenant Protection Provisions), Items 7 and 9, stating that notification to vacate will be given 180 days prior to intent to vacate. The motion was seconded by Councilmember Winholtz ® and carried unanimously. (5-0) 7 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 26, 2007 City Manager Robert Hendrix read Ordinance No. 522 by number and title only. B-4 AMENDMENT TO MASTER FEE SCHEDULE TO INCLUDE RENTAL OF THE MORRO BAY TEEN CENTER; (RECREATION & PARKS) Assistant City Manager Andrea Lueker stated the Morro Bay Teen Center has been open to 7`s — 12`' grade students since January 2002. The facility has been used by an increasing number of youth in the area as well as those visiting free of charge. Since the opening of the Teen Center, there have been numerous inquires about the possibility of renting the facility for events. After much review, staff is supporting limited rental ability to the public. Since the building was funded for the express Xurpose of use by teens, the rental guidelines limits rentals to those who cater to the 7 — 12's grade age group. Rentals will also be limited to a manageable number of teens and a City Teen Center staff person as well as a chaperone supplied by the renter will be required. Staff believes that opening the rental of the Teen Center would be beneficial to the local community in providing another safe venue for teens, generate some income to the ® Recreation & Parks Department which may allow for added hours of general operation and possibly increase the attendance to the Teen Center by attracting some students to come back during normal operation hour after attending a private event. Ms. Lueker recommended the City Council approve the Morro Bay Teen Center guidelines and amendment to the Master Fee Schedule for rental of the Morro Bay Teen Center. Mayor Peters opened the hearing for public comment; there being no comments, Mayor Peters closed the public comment hearing. MOTION: Councilmember Grantham moved the City Council approve the Morro Bay Teen Center rental guidelines and amendment to the Master Fee Schedule for rental of the Morro Bay Teen Center. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) B-5 RESOLUTION NO. 10-07 APPROVING AMENDMENT TO THE PUBLIC EMPLOYEE RETIREMENT SYSTEM (PERS) CONTRACT (4TH LEVEL SURVIVOR BENEFIT FOR PERS MISCELLANEOUS EMPLOYEES); AND ORDINANCE NO. 526 AUTHORIZING AMENDMENT- FIRST READING AND INTRODUCTION Assistant City Manager Andrea Lueker stated Resolution No. 10-07 and Ordinance No. 526 is to enact the benefit provided in Section 14.9.5 of the Memorandum of Understanding (MOU) between the City of Morro Bay and the Service Employee's ® International Unit (SEIU). The MOU was adopted by the City Council on November 13, ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 26, 2007 2006 by Resolution No. 57-06. This benefit provides certain survivors of a member who dies before retirement a month payment. The benefit would go into effect May 5, 2007. Ms. Lueker recommended the City Council adopt Resolution No. 10-07, which is a resolution of intention to amend the Public Employee Retirement System (PERS) contract in regard to the 4a' Level Survivor Benefit for PERS Miscellaneous employees. Mayor Peters opened the hearing for public comment; there being no comments, Mayor Peters closed the public comment hearing. MOTION: Councilmember Grantham moved the City Council adopt Resolution No. 10-07: Intention to amend the PERS contract in regard to the 4'° Level Survivor Benefit for PERS Miscellaneous employees; and, approve the first reading and introduction of Ordinance No. 526 to enact the benefit provided in Section 14.9.5 of the Memorandum of Understanding between the City of Morro Bay and the Service Employee's International Unit. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) ® City Manager Robert Hendrix read Ordinance No. 526 for first reading and introduction only. Mayor Peters called for a break at 9:08 p.m.; the meeting resumed at 9:13 p.m. C. UNFINISHED BUSINESS C-1 REPORT ON STATUS OF INTERSECTION OF RADCLIFFE AND MAIN STREETS; (PUBLIC SERVICES) City Engineer Frank Cunningham stated staff was directed by City Council on November 13, 2003 to continue to pursue realignment of the road when funds were available, and to continue to work with CalTrans in an effort to install a 3-way stop sign at the intersection. Staff was also directed to install cautionary signs in both recommendations. There was also a request to increase police presence to make people aware of the traffic/intersection problem and slow down. All of the requested operational and safety improvements were completed within weeks of the request. Staff has continued to monitor accidents at the intersection. Staff has also continued to monitor potential development in the general area that would either contribute significant funding towards the realignment project or would be actually conditioned to construct the realignment. There have been some potential significant development inquiries in the form of pre - applications, but no formal applications to date. There is currently $54,060 in the Traffic ® Impact Fund allocated to the realignment of Radcliffe Street at Main Street that has been 11 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 26, 2007 collected from past development. The recently awarded Development Impact Fee Study may have a significant impact to the rate at which impact fees are generated for projects like this. Mr. Cunningham recommended the City Council review and discusses this issue, and direct staff accordingly. Councilmember DeMeritt referred to a public comment that suggested the City change the stoplight at Quintana Road and Main Street to remove the green light to turn right, and a sign stating no right turn on a red light in order to slow traffic for a trial period. She also referred to the realignment map and suggested realigning the street just beyond the CalTrans easement. Councilmember DeMeritt also suggested removing the southbound 30 mph sign on Main Street. She also supports extending the 25 mph speed limit in this area. Councilmember Peirce stated the slow to 25 mph crossing sign is not enforceable, but was placed there in the hopes of slowing drivers down. He suggested extending the 25 mph speed limit to Highway 41. ® MOTION: Councilmember DeMeritt moved the City Council direct staff to remove the 30 mph sign across from Lemos Ranch; change the stoplight at Quintana Road and Main Street to remove the green light to turn right, and install a sign stating no right turn on a red light, for a period of six months; request visible and frequent enforcement of the speed limit at this intersection; and, bring back to Council a discussion on implications of extending the boundary of the Central Business District North along Main Street to the Highway 41 intersection and extending a 25 mph speed limit in this area. The motion was seconded by Councilmember Winholtz. Councilmember Peirce expressed concern with the change to the stoplight at Quintana Road and Main Street that it may cause traffic to back-up on Quintana. VOTE: The motion carried with Councilmember Peirce voting no. (4-1) E 12 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 26, 2007 u D. NEW BUSINESS D-1 REQUEST OF THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY (CSCDA) TO WAIVE A TAX AND EQUITY FISCAL RESPONSIBILITY ACT PUBLIC HEARING FOR THE ISSUANCE OF REVENUE BONDS FOR HEALTH FACILITIES OWNED OR OPERATED BY THE OPTIONS FAMILY OF SERVICES ("OPTIONS"); (CITY ATTORNEY) City Attorney Robert Schultz stated the Options Family of Services (Options) is a non- profit corporation that provides a "sober living" residential treatment or group homes in residential neighborhoods in Santa Barbara and San Luis Obispo counties. Options has submitted applications to the California Statewide Communities Development Authority (CSCDA) to issue up to $4.5 million of its bonds for purposes such as this. CSCDA is a joint exercise of -powers authority consisting of numerous California cities, counties and special districts, including the City of Morro Bay. The Authority, pursuant to its Joint Exercise of Powers Agreement, is authorized to issue bonds in order to promote economic development, including the financing of facilities owned and operated by organizations described in Section 5010(3) of the Internal Revenue Code of 1986, which Options is such an organization. Mr. Schultz recommended the City Council deny the request of the CSCDA to waive a public hearing for the issuance of revenue bonds for the financing of health facilities owned or operated by Options. MOTION: Councilmember Grantham moved the City Council deny the request of the California Statewide Communities Development Authority (CSCDA) to waive a public hearing for the issuance of revenue bonds for the financing of health facilities owned or operated by the Options Family of Services ("Options"). The motion was seconded by Councilmember Peirce and failed with Councilmember DeMeritt, Councilmember Winholtz and Mayor Peters voting no. (2-3) MOTION: Councilmember Winholtz moved the City Council agree to waive a public hearing for the issuance of revenue bonds for the financing of health facilities owned or operated by the Options Family of Services ("Options"). The motion was seconded by Councilmember DeMeritt and carried with Councilmember Grantham and Councilmember Peirce voting no. (3-2) 13 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 26, 2007 D-2 STATUS OF CITY COUNCIL CONSIDERATION OF AN OFF -LEASH DOG PARK; (RECREATION & PARKS) Assistant City Manager Andrea Lueker in February 2006, staff was asked to bring an update to the City Council regarding the status of establishing an off -leash dog park in Morro Bay. Following discussion, Council made a motion to officially designate the northwest corner of Del Mar Park for an off -leash dog park; use the tennis court site as an interim location; and, directed staff to look into insurance methods and forming a non- profit group. That action resulted in significant public comment at the following Council meeting and the Council asked that the item come back for discussion at the April 10, 2006 meeting. At the April 10"' meeting, the Council directed staff to investigate and return to Council with information on what is required from CEQA and other regulations to construct a formal, temporary, fenced dog park at the site where tennis courts are proposed to be constructed at Del Mar Park in the future. Staff returned to the May 22, 2006 City Council meeting informing the Council that any new improvements would be considered "development" under the City's Zoning Code and the Coastal Act. Because the project is determined as "development", the City must address a number of issues, Rely through the Coastal Development Permit process. Following discussion at the May 22Id meeting, the City Council made a motion to approve the Morro Bay Pups to start the permit process for a temporary fenced dog park at the Del Mar Park proposed tennis court site while continuing to look for an alternative site. Ms. Lueker recommended the City Council review and discuss this issue, and direct staff accordingly. Mayor Peters stated the community needs a dog park, and suggested it be located where the tennis courts are proposed, and when the tennis courts are approved to be built, locate the dog park at the northwest comer of the park. Councilmember DeMeritt expressed support for Mayor Peters' suggestion. Councilmember Winholtz stated she would prefer to locate the dog park at the northwest corner of the park as a permanent location. Councilmember Peirce stated this should be a City project so that it will be open for public use, and not only for those who belong to Morro Bay Pups. Councilmember Grantham stated the City should look at alternative locations for a permanent dog park. 14 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 26, 2007 MOTION: Mayor Peters moved the City Council establish the dog park as a City project; it shall be fenced at its current location at Del Mar Park until the tennis courts may be built, with a proposed alternate site at the northwest corner of Del Mar Park after the tennis courts are built; that a Memorandum of Understanding be established between Morro Bay Pups and the City on establishing responsibilities for the dog park; and, that the Master Plan be amended to address these changes. The motion was seconded by Councilmember DeMeritt. Councilmember Winholtz stated she would vote in opposition to this motion because she does not support a temporary dog park. VOTE: The motion carried with Councilmember Grantham and Councilmember Winholtz voting no. (3-2) ADJOURNMENT The meeting adjourned at 10:45 p.m. Recorded by: Lilo`L Jo ue�1/ Bridgett Bauer City Clerk E 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 — FEBRUARY 13, 2007 CLOSED SESSION — FEBRUARY 13, 2007 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA ® CS-1 GOVERNMENT CODE SECTION 54957.6. CONFERENCE WITH I IN 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. 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: Morro Dunes RV Park Negotiating Parties: City and Doug Claassen Negations: Lease Terms IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ® ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. ® PUBLIC SESSION — FEBRUARY 13, 2007 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCILMEMBERS ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period, the following rules shall be followed: • When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments are to be limited to three minutes. • All remarks shall be addressed to Council, as a whole, and not to any ® individual member thereof. • The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or staff. • Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering. • Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting. • Your participation in City Council meetings is welcome and your courtesy will be appreciated. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 772-6205. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are ® approved without discussion. 2 ® A -I APPROVAL OF MINUTES FOR THE REGULAR CITY COUNCIL MEETINGS OF JANUARY 8, 2007 AND JANUARY 22, 2007, AND THE SPECIAL MEETING OF JANUARY 29, 2007; (ADMINISTRATION) • RECOMMENDATION: Approve as submitted. A-2 RESOLUTION NO. 07-07 ADOPTING MID -YEAR BUDGET ADJUSTMENTS FOR FISCAL YEAR 2006/07; (FINANCE) RECOMMENDATION: Adopt Resolution No. 07-07. A-3 AUTHORIZATION FOR ATTENDANCE AT THE C-MANC ANNUAL MEETING IN WASHINGTON DC; (HARBOR) RECOMMENDATION: Approve authorization for a two -person delegation to attend C-MANC's Washington Week meetings. A4 ACCEPTANCE OF NOTIFICATION OF RESIGNATION FROM ONE HARBOR ADVISORY BOARD MEMBER; (ADMINISTRATION) RECOMMENDATION: Accept notification of resignation from Tom Laurie who was appointed to the Harbor Advisory Board. PUBLIC HEARINGS B-I PUBLIC HEARING ON WATER OUTAGE PROCESS AND PUBLIC NOTICE PROCEDURES FOR SAFETY EMERGENCY ISSUES - CONTINUED FROM JANUARY 8, 2007; (PUBLIC SERVICES) RECOMMENDATION: Conduct a public hearing on the City's water outage process and public notice procedures for safety emergency issues. B-2 ORDINANCE NO. 525 EXTENDING INTERIM URGENCY ORDINANCE PLACING A MORATORIUM ON MARIJUANA DISPENSARIES WITHIN THE CITY; (CITY ATTORNEY) RECOMMENDATION: Adopt Ordinance No. 525. B-3 CONSIDERATION OF SAN LUIS OBISPO COUNCIL OF GOVERNMENTS NORTH COAST SCENIC BYWAY CORRIDOR PLAN, SCENIC BYWAY LOGO AND BYWAY COMMUNITY GATEWAY PROGRAM; (PUBLIC SERVICES) RECOMMENDATION: This item has been pulled from the agenda. 3 ® REPORTS & APPEARANCES B-4 COUNTY ENVIRONMENTAL HEALTH STAFF PRESENTATION ON MOSQUITO ABATEMENT PROGRAM RECOMMENDATION: Receive presentation for information. B-5 LOCAL AGENCY FORMATION COMMISSION PRESENTATION ON THE SPHERE OF INFLUENCE MUNICIPAL SERVICE REVIEW PROCESS FOR THE CITY OF MORRO BAY RECOMMENDATION: Receive presentation for information. UNFINISHED BUSINESS C-1 REPORT ON EX-PARTE CONTACT POLICY; (COUNCIL) RECOMMENDATION: Direct staff to bring back a policy statement to be included in the City's Policy and Procedures Manual. ® D-1 SET DATE FOR JOINT MEETING WITH NEW PLANNING COMMISSION; (COUNCIL) RECOMMENDATION: Consider date to meet with the Planning Commission. D-2 DISCUSSION ON CREATING AN URBAN FOREST MANAGEMENT PLAN AND AMENDING THE DEFINITION OF MAJOR VEGETATION; (COUNCIL) RECOMMENDATION: Adopt the idea of pursuing an Urban Forest Management Plan and amend the current definition of Major Vegetation until such a plan is developed and implemented. 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—FEBRUARY 13, 2007 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Peters called the meeting to order at 5:00 p.m PRESENT: Janice Peters Mayor Melody DeMeritt Councilmember Rick Grantham 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 Grantham 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. 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: Morro Dunes RV Park Negotiating Parties: City and Doug Claassen Negations: Lease Terms 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 DeMeritt and unanimously carried. (5-0) The meeting adjourned at 5:55 p.m. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 13, 2007 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Peters called the meeting to order at 6:00 p.m PRESENT: Janice Peters Mayor Melody DeMeritt Councilmember Rick Grantham Councilmember William Peirce Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix Andrea Lueker Robert Schultz Bridgett Bauer Rick Algert Bruce Ambo Bill Boucher John DeRohan Mike Pond Susan Slayton City Manager Assistant City Manager City Attorney City Clerk Harbor Director Public Services Director Capital Projects Manager 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 Nancy Bast reviewed the City's history stating in the early 1990's, the City Council created a Tree Advisory Board, which was charged with developing a Tree Ordinance that addressed issues such as protecting and replacing trees on public and private land. She said the Board has since been rescinded, and she requested the Council consider the City's Tree City USA designation when reviewing the Urban Forest Management Plan. John Parker requested an item be placed on a future agenda discussing the City's plan on reimbursement to the public for the lost historical information that is occurring at the archeological site at SLO-165. He said the City should consider purchasing and preserving another archeological site in order to let the community know it values its heritage resources. E ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 13, 2007 Betty Forsythe shared a scrapbook of the Morro Bay Library from the time period of 1922 — 1985. Jill Turbone and Joe Eister addressed the advantages of a live performing theater in Morro Bay. Barry Dorfman reported on a survey he received regarding the placement of a liquid natural gas terminal in Morro Bay. Tim Olivas, Morro Bay Police Department, announced the Tour of California bike race will be going through Morro Bay next Thursday, and there will be some traffic delays. Roger Ewing expressed support for Item D-2 (Discussion on Creating an Urban Forest Management Plan and Amending the Definition of Major Vegetation) noting how important it is to preserve the City's designation of Tree City USA. He also addressed Item B-5 (Local Agency Formation Commission Presentation on the Sphere of Influence Municipal Service Review Process for the City of Morro Bay) and requested the back bay be added to the City's sphere of influence. ® Keith Taylor recommended the City Council discuss the allocation of Measure Q funds, and have the Oversight Committee review these recommendations prior to allocation. Noah Smukler expressed the importance to shop local, and announced there is a Farmers Market on Thursday afternoons by Spencer's Market and a Downtown Market on Saturday afternoons. He also expressed support for adopting an Urban Forest Management Plan. Marla Bruton expressed concern with Council's action in approving the Public Services Reorganization with salary increases. Jim Schemmer addressed Council's discussion on priorities and expressed support of Council's direction to review height, size and bulk of building in Morro Bay. Mayor Peters closed the hearing for public comment. Mayor Peters called for a break at 7:05 p.m.; the meeting resumed at 7:15 p.m. DECLARATION OF FUTURE AGENDA ITEMS - None. 3 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 13, 2007 A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are approved without discussion. A-1 APPROVAL OF MINUTES FOR THE REGULAR CITY COUNCIL MEETINGS OF JANUARY 8, 2007 AND JANUARY 22, 2007, AND THE SPECIAL MEETING OF JANUARY 29, 2007; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 RESOLUTION NO. 07-07 ADOPTING MID -YEAR BUDGET ADJUSTMENTS FOR FISCAL YEAR 2006/07; (FINANCE) RECOMMENDATION: Adopt Resolution No. 07-07. A-3 AUTHORIZATION FOR ATTENDANCE AT THE C-MANC ANNUAL ® MEETING IN WASHINGTON DC; (HARBOR) RECOMMENDATION: Approve authorization for a two -person delegation to attend C-MANC's Washington Week meetings. �J A4 ACCEPTANCE OF NOTIFICATION OF RESIGNATION FROM ONE HARBOR ADVISORY BOARD MEMBER; (ADMINISTRATION) RECOMMENDATION: Accept notification of resignation from Tom Laurie who was appointed to the Harbor Advisory Board. Mayor Peters pulled Item AA from the Consent Calendar; and Councilmember Winholtz pulled Item A-2. MOTION: Councilmember Peirce moved the City Council approve Items A-3 and A- 4 of the Consent Calendar. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) 17 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 13, 2007 A-1 APPROVAL OF MINUTES FOR THE REGULAR CITY COUNCIL MEETINGS OF JANUARY 8, 2007 AND JANUARY 22, 2007, AND THE SPECIAL MEETING OF JANUARY 29, 2007; (ADMINISTRATION) Mayor Peters requested an addendum to her comments in the minutes of the January 29, 2007 Special City Council meeting under Introduction of City Goals and Fiscal Objections for Fiscal Years 2007-2009. MOTION: Councilmember Peirce moved the City Council approve Item A-1 of the Consent Calendar as amended. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) A-2 RESOLUTION NO. 07-07 ADOPTING MID -YEAR BUDGET ADJUSTMENTS FOR FISCAL YEAR 2006/07; (FINANCE) Councilmember Winholtz suggested Council remove the budget adjustments previously made to upgrade personnel positions in the Public Services Department in order to maintain ® City reserves. MOTION:. Councilmember Winholtz moved the City Council remove the budget adjustments previously made to upgrade personnel positions in the Public Services Department. The motion was seconded by Councilmember DeMeritt. I] City Attorney Robert Schultz stated this motion is not valid since the City Council approved this adjustment by motion at a previous Council meeting, and would have to reconsider this item in order to make changes. Councilmember Winholtz withdrew her motion; Councilmember DeMeritt withdrew her second. MOTION: Councilmember Peirce moved the City Council approve Item A-2 of the Consent Calendar. The motion was seconded by Councilmember Grantham and carried with Councilmember DeMeritt and Councilmember Winholtz voting no. (3-2) 5 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 13, 2007 B. PUBLIC HEARINGS B-1 PUBLIC HEARING ON WATER OUTAGE PROCESS AND PUBLIC NOTICE PROCEDURES FOR SAFETY EMERGENCY ISSUES - CONTINUED FROM JANUARY 8, 2007; (PUBLIC SERVICES) Capital Projects Manager Bill Boucher stated since the submission of the January 8, 2007 staff report, staff has discussed the matter with the Public Works Advisory Board, the San Luis Obispo County Health Department, the State Department of Health Services and a number of citizens. These discussions have resulted in a change in staffs recommendation to include door-to-door notification for any future drinking water nitrate concentrations exceeding the allowable level in addition to media and public agency contact. Mr. Boucher recommended the City Council conduct a public hearing on this matter, and as a result approve the procedures for nitrate public notification. Mayor Peters opened the hearing for public comment. ® Dawn Feurberg expressed support for staffs recommendations and requested Council accept them. She said there is still work to be done with the nitrate issue, and expressed concern that there will be zero state emergency water available to the City next November. Ms. Feurberg requested the City Council support staff in further training in assessing water issues in the City. Sharilyn Petit reviewed studies and affects on the body in consuming high nitrates. She expressed concern with the amount of pesticides and herbicides that might be found in the City's water, and asked what type of testing is being performed for these chemicals. Nicole McKay stated more young families have moved to Morro Bay within the last five years. She said water quality should be a top priority and is of utmost importance to the citizens of Morro Bay. Ginger Hendrix requested the assurance of safe water, and stated the City should focus on what is best for our town. Pia Laurie suggested there be no more hook-ups to the water system since the City cannot guarantee safe drinking water. She requested staff provide a summary of the water emergency that took place in November. Richard Keller stated without healthy water there is no town. He requested the Council accept the report provided by staff, and direct staff to provide a detailed notification plan ® that explains all of the procedures involved when notified of an emergency. 0 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 13, 2007 Jesse Franklin stated water is the basic source of life and requested the City to do the right thing by providing safe drinking water. Ann Calhoun asked where the nitrates are coming from, and is the Regional Water Quality Control Board testing the groundwater basins. Amelia Miguel stated the City is liable for the health and welfare of its citizens, and requested the Council empower City staff to become educated and more up-to-date on water quality issues. Barry Dorfman stated there are two issues: 1) having a safe water system; and 2) the need of a notification plan. He said there is a need for a more cohesive plan by City staff, and the County Health Department should be more involved. Noah Smukler stated the quality of the City's water supply and the watershed is the foundation to the quality of life and economic prosperity. He expressed the importance ® of looking at the long-term situation and identifying the sources of pollution that are in the watersheds. Mr. Smukler stated there is an opportunity to further the water supply by upgrading the sewage treatment plant at a tertiary level. E Bill Moylan asked about the possibility of a regional sewage treatment plant for Morro Bay, Cayucos and Los Osos. He also asked why the Regional Water Quality Control Board did not come down on the City for having polluted water. Ilan Perlman stated he predicted to the Regional Water Quality Control Board that Morro Bay well water would have high nitrates. He said the City's focus should be on communications with the public, and investigate the unpredictability of nitrates in the ground water. Marla Bruton asked how much the Vashon Street water break cost the City. She noted there was no posting of the water emergency at City buildings. Ms. Bruton stated the filters at the desalination plant were not being cleaned as required. Donna Berg stated she gave her baby tap water without knowing of the high nitrates and she is upset that she put her baby's health at risk. She requested future notification of health safety emergencies, and to keep the nitrates low (5 parts per million). 7 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 13, 2007 Joey Racano stated the City should pay more attention to important resources such as water. He said once through cooling is the best technology, and there should be no intakes or outfall. He said the City would qualify for grants, and should consider going with regional full tertiary treatment. Sandra Brazil requested the City consider the Hispanics when noticing an emergency. Mayor Peters closed the public comment hearing. The City Council referred to and discussed questions asked by the public. Councilmember DeMeritt stated she would like to add doctor's offices, daycare providers, and phone calls to City officials to the notification plan. She also requested notification of the closure of State Water be sent out ahead of time, and flyers of emergency notification be prepared ahead of time. Mayor Peters stated the City's Neighborhood Watch Program is established to assist in ® emergency notification. She said she would like this notification plan be used universally for all emergencies. MOTION: Councilmember Winholtz moved the City Council: 1) approve the Nitrate Public Notification Plan as presented, with a monthly report from Public Services on the progress of the Plan, and obtain feedback on how to modify the Plan; 2) return to Council for approval of the updated Notification Plan; 3) have a health officer attend a Council meeting; and 4) direct staff to identify educational opportunities in this particular area. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) Mayor Peters called for a break at 8:30 p.m.; the meeting resumed at 8:40 p.m. B-2 ORDINANCE NO. 525 EXTENDING INTERIM URGENCY ORDINANCE PLACING A MORATORIUM ON MARIJUANA DISPENSARIES WITHIN THE CITY; (CITY ATTORNEY) City Attorney Robert Schultz stated the City Council initially granted an Interim Urgency Ordinance for 45 days, and recommends the City Council open the public hearing and adopt Interim Urgency Ordinance No. 525 which would extend the 45-day moratorium for an additional 10 months and 15 days in order for staff to be able to develop regulations for medical marijuana dispensaries. 11 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 13, 2007 Mayor Peters opened the hearing for public comment; there being no comment, Mayor Peters closed the public comment hearing. MOTION: Councilmember Winholtz moved the City Council adopt Interim Urgency Ordinance No. 525 which would extend the 45-day moratorium for an additional 10 months and 15 days in order for staff to be able to develop regulations for medical marijuana dispensaries. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) City Manager Robert Hendrix read Ordinance No. 525 by number and title only. B-3 CONSIDERATION OF SAN LUIS OBISPO COUNCIL OF GOVERNMENTS NORTH COAST SCENIC BYWAY CORRIDOR PLAN, SCENIC BYWAY LOGO AND BYWAY COMMUNITY GATEWAY PROGRAM; (PUBLIC SERVICES) This item was pulled from the agenda- 0 REPORTS & APPEARANCES B-4 COUNTY ENVIRONMENTAL HEALTH STAFF PRESENTATION ON MOSQUITO ABATEMENT PROGRAM The City Council received a presentation from representatives of the San Luis Obispo County Environmental Health Department on the Mosquito Abatement Program in Morro Bay and around the County. No action was taken on this item. B-5 LOCAL AGENCY FORMATION COMMISSION PRESENTATION ON THE SPHERE OF INFLUENCE MUNICIPAL SERVICE REVIEW PROCESS FOR THE CITY OF MORRO BAY The City Council received a presentation from Paul Hood and David Church of the San Luis Obispo Local Agency Formation Commission on the Sphere of Influence Municipal Service Review Process for the City of Morro Bay. Mayor Peters opened the hearing for public comment. Kathy Kellet stated she would like the grass island south to the entrance of the back bay is marina, and west across to the sand spit to be included in the sphere of influence. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 13. 2007 Penny Harrington noted an incident with gunfire in the back bay and expressed concern that there was no agency to report the incident to. She requested the area around the marina and in the back bay is included in the sphere of influence. Peter Risley requested those areas that affect the economy and eco-tourism in the City should be included in the sphere of influence. MOTION: Councilmember Winholtz moved the City Council recommend to the Local Agency Formation Commission that they include the following study areas: 1) the southern line that extends from the marina west to the sand spit; 2) the corridor out Highway 41 that extends to, but not beyond, Rancho Coalina; and 3) the agricultural area off Little Morro Creek Road. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) C. UNFINISHED BUSINESS 0 C-1 REPORT ON EX-PARTE CONTACT POLICY; (COUNCIL) Councilmember Winholtz stated an ex parte communication is an "off the record' or private communication between a committee member and any person concerning a matter that is pending or impending before a committee. Such communications occur in the absence of other parties and without notice to other parties. These communications can range from phone calls to written correspondence and emails, to site visits and tours. Councilmember Winholtz stated in the interest of due process and fairness to both an applicant and the public, an ex parte communication policy should be adopted. MOTION: Councilmember Winholtz moved the City Council direct the City Attorney to return with language for an ex-parte policy to be included in Council Policies and Procedures relating to quasi-judicial decisions. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) D. NEW BUSINESS D-1 SET DATE FOR JOINT MEETING WITH NEW PLANNING COMMISSION; (COUNCIL) The City Council scheduled to meet with the Planning Commission on March 5, 2007 at ® 6:00 p.m. 10 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 13, 2007 D-2 DISCUSSION ON CREATING AN URBAN FOREST MANAGEMENT PLAN AND AMENDING THE DEFINITION OF MAJOR VEGETATION; (COUNCIL) Councilmember DeMeritt stated an Urban Forest Management Plan provides a framework of strategy and policy to improve and enrich the vitality of a city's urban forest and to strengthen and clarify the role of the supporting departments who plan and manage the health of the urban forest. This plan would recommend direction and actions for Morro Bay to envision and create a cohesive, integrated, and sustainable approach to preserving and enhancing the City's forest resources. Councilmember DeMeritt recommended the City Council adopt the idea of pursuing an Urban Forest Management Plan and amend the current definition of Major Vegetation until such a plan is developed and implemented. MOTION: Councilmember DeMeritt moved the City Council direct staff to begin the process of designing an Urban Forest Management Plan for Morro Bay, and forward to the Public Works Advisory Board for discussion as soon as possible. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) MOTION: Councilmember DeMeritt moved the City Council amend Item A(6) of the Major Vegetation Guidelines as follows: "Any tree measured at four and one-half feet (41/2') vertically above the ground which is equal to or greater than 20 6 inches d.b.h. (. ppr-,..,:mately c f m—f reftee); any sprout clump of five or more stems each of which is greater than 4-2 6 inches d.b.h. (approximately 3 feet in eifeumfiar-eaee); or any group consisting of five or more trees on one parcel, each of which is greater than 4-2 6 inches d.b.h. (appre)dmately 3 feed in eir erenee). The motion was seconded by Councilmember Winholtz. Councilmember Peirce suggested the revised Major Vegetation Guidelines return to Council for approval. Councilmember DeMeritt amended her motion to include Council's approval of the revised Guidelines; Councilmember Winholtz amended her second. VOTE: The motion carried unanimously. (5-0) C 11 11 11 C� MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — FEBRUARY 13, 2007 ADJOURNMENT The meeting adjourned at 10:40 p.m. Recorded by: ca a�t Bridgett Bauer City Clerk 12 City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life. The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. SPECIAL MEETING — JANUARY 29, 2007 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA I. ESTABLISH QUORUM AND CALL TO ORDER II. INTERVIEWS FOR PUBLIC WORKS ADVISORY BOARD ® III. PUBLIC COMMENT IV. MID -YEAR BUDGET ADJUSTMENTS FOR FISCAL YEAR 2006/2007 V. PUBLIC SERVICES DEPARTMENT PERSONNEL CHANGES VI. FIVE-YEAR PROJECTION ON CITY FINANCES VII. INTRODUCTION OF CITY GOALS AND FISCAL OBJECTIVES FOR FISCAL YEARS 2007-2009 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. E F9� City of Morro Bay Morro Bay, CA 93442 (805) 772-6200 NOTICE OF SPECIAL MEETING NOTICE IS HEREBY GIVEN that the Morro Bay City Council will be holding a Special Meeting on Monday, January 29, 2007 at 5:30 p.m. to be held in the Veterans Memorial Building located at 209 Surf Street, Morro Bay, California. The City Council will be discussing: ➢ Interviews for Public Works Advisory Board ➢ Introduction of City Goals and Fiscal Objectives for Fiscal Years 2007 - 2009 ➢ Mid -Year Budget Adjustments for Fiscal Year 2006/2007 ➢ Public Services Department Personnel Changes DATED: January 25, 2007 Bridgett uer, City Clerk 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. ® FINANCE ADMINISTRATION FIRE DEPT. PUBLIC SERVICES 595 Harbor Street 595 Harbor Street 715 Harbor Street 955 Shasta Avenue HARBOR DEPT. 1275 Embareadero Road CITY ATTORNEY POLICE DEPT. RECREATION & PARKS 955 Shasta Avenue 970 Morro Bay Boulevard 1001 Kennedy Way MINUTES - MORRO BAY CITY COUNCIL ® SPECIAL MEETING — JANUARY 29, 2007 VETERANS MEMORIAL HALL - 5:30 P.M. Mayor Peters called the meeting to order at 6:00 p.m PRESENT: Janice Peters Mayor Melody DeMeritt Councilmember Rick Grantham 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 Susan Slayton Finance Director ESTABLISH QUORUM AND CALL TO ORDER PLEDGE OF ALLEGIANCE MAYOR'S REPORTS & ANNOUNCEMENTS I. INTERVIEWS FOR PUBLIC WORKS ADVISORY BOARD Council appointed by ballot Dan Glessman and Noah Smukler to serve on the Public Works Advisory Board. Mayor Peters called for a break at 5:55 p.m.; the meeting resumed at 6:00 p.m. IL FIVE-YEAR PROJECTION ON CITY FINANCES City Manager Robert Hendrix reviewed a power point presentation of a five-year projection on revenues and expenses in the General Fund. III. INTRODUCTION OF CITY GOALS AND FISCAL OBJECTIONS FOR FISCAL YEARS 2007-2009 City Manager Robert Hendrix gave an overview of the 2007-2008 work priorities. Council received departmental budget reviews from the City's department heads. ® Mayor Peters called for a break at 7:15 p.m.; the meeting resumed at 7:25 p.m. Mayor Peters opened the hearing for public comment. ® MINUTES - MORRO BAY CITY COUNCIL SPECIAL MEETING — JANUARY 29, 2007 The following people requested the City Council consider the review of building height, bulk and scale as a top priority in order to maintain the character of neighborhoods in the City: Dorothy Cutter, Bill Luffee, Grant Crowell, Dave Klinzman, Matt Makawetzky, Liz Klinzman, Lee Ledge, and Joyce Tobler. Keith Taylor requested Council consider Phase 2 of the Fire Department Project as a top priority. Ed Biaggini, Chair of the Community Promotions Committee, stated tourist occupancy in the City compared to neighboring cities in 2006 shows a drop in business in Morro Bay. He requested the Council consider investing in tourism by funding an additional $50,000 to the Community Promotions Committee budget for marketing purposes. Noah Smukler stated tourism should be promoted in the City. He also said the natural beauty and cultural assets of the City must be maintained. Sue Flood shared pictures of neighborhoods with out -of -scale houses Jane von Koehe stated tennis courts were promised years ago and have yet to be ® accomplished. She also said an off -leash dog park is needed in the City. Mayor Peters closed the public comment hearing Councilmember DeMeritt stated building big houses does not bring in more revenue to the City. She said a review of zoning should be considered expeditiously. Councilmember Grantham asked staff about particular projects that are underway at this time. Councilmember Peirce stated the review of building bulk and scale is important, but should not be considered as a number one priority. Councilmember Winholtz stated building bulk and scale at least within the R-1 zone should be reviewed within the next four to five months. Mayor Peters stated the review of building bulk and scale should start as soon as possible within the R-1 zone. MOTION: Councilmember Winholtz moved the City Council direct staff to begin the process of addressing height, bulk and scale in the R-1 zone within four months. The motion was seconded by Councilmember DeMeritt and ® carried unanimously. (5-0) FA MINUTES - MORRO BAY CITY COUNCIL Is SPECIAL MEETING — JANUARY 29, 2007 Councilmember DeMeritt stated her list of priorities is to obtain a balanced budget, build new revenues, work on projects that would preserve the character of the City, make progress on those things that must be done, follow the public's desires on Measure Q funds (tear down and build the fire station and pave streets), allow the public to plan those things planned by them and approved by Council (dog park, maritime museum, live theater), and stop needless projects (roundabout). Mayor Peters stated that based on discussions with department heads, she suggests prioritizing the Measure Q funds on a percentage apportionment to the promised uses being Fire Department, street maintenance, storm drains and Police Department. V. MID -YEAR BUDGET ADJUSTMENTS FOR FISCAL YEAR 2006/2007 Finance Director Susan Slayton presented the requested budget adjustments, and a mid- year budget performance report for funds with adopted budgets and a departmental breakdown report on the General Fund to show how each department is performing. The requested additions to appropriations are for unanticipated costs, routine costs that were missed in the original budget, and adjustments to streamline operations. Ms. Slayton recommended the City Council consider public comments, receive input from staff, and approve the proposed changes. ® MOTION: Councilmember DeMeritt moved the City Council approve to fund no more than $40,000 to Community Promotions Committee for the City's marketing plan. The motion was seconded by Councilmember Peirce. Mayor Peters expressed concern with this funding and the funding demands of the Visitors and Conference Bureau, which the City cannot fund both. VOTE: The motion carried unanimously. (5-0) MOTION: Councilmember Peirce moved the City Council approve the fiscal year 2006/07 mid -year budget adjustments; and, direct staff to return to Council with a resolution to authorize the approved budget adjustments. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) Mayor Peters suggested setting up a separate bank account for Measure Q funds. Councilmember DeMeritt suggested continuing this discussion at the March 13, 2007 City Council meeting. MOTION: Councilmember Winholtz moved the City Council direct staff to set up a ® separate bank account for Measure Q funds. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) 3 MINUTES - MORRO BAY CITY COUNCIL ® SPECIAL MEETING — JANUARY 29, 2007 VI. PUBLIC SERVICES DEPARTMENT PERSONNEL CHANGES Public Services Director Bruce Ambo requested the City Council consider the following reclassifications in the Public Services Department: a) reclassify the Office Assistant IV to Administrative/Utilities Technician; b) authorize the promotion of the Assistant Planner to Associate Planner; c) reclassify the Senior Planner to Planning Manager; d) reclassify the Associate Civil Engineer to Senior Civil Engineer; and e) approve the amended Capital Projects Manager job specifications and salary range. Councilmember Winholtz stated she does not support pay increases due to the morale of other employees. She said she would prefer to fill the code enforcement vacancy or hire a part-time planner rather than approve reclassifications. Councilmember Peirce stated the pay increases go along with the change of job classifications, which is required for these positions. Councilmember Grantham stated he is concerned with not replacing positions that are vacated; however, he would reluctantly support this proposal. ® Councilmember DeMeritt stated she could not support this as proposed because they are automatic reclassifications, and also due to the moral of other employees. She said she would support a pay increase for an associate engineer and deny the other requests. MOTION: Councilmember Grantham moved the City Council approve the following: a) reclassify the Office Assistant IV to Administrative/Utilities Technician; b) authorize the promotion of the Assistant Planner to Associate Planner; c) reclassify the Senior Planner to Planning Manager; d) reclassify the Associate Civil Engineer to Senior Civil Engineer; and e) approve the amended Capital Projects Manager job specifications and salary range. The motion was seconded by Councilmember Peirce and carried with Councilmember DeMeritt and Councilmember Winholtz voting no. (3-2) ADJOURNMENT The meeting adjourned at 9:25 p.m. Recorded by: A&X.A_� Bridgett Bauer ® City Clerk 0 r L 0 City of Morro Bay Morro Bay, CA 93442 (805) 772-6200 NOTICE OF SPECIAL MEETING NOTICE IS HEREBY GIVEN that the Morro Bay City Council will be holding Special Meetings on Wednesday. January 24, 2007 at 6:00 p.m. to be held in the Veterans' Memorial Building located at 209 Surf Street, Morro Bay, California. The City Council will be conducting interviews to fill vacancies on the Planning Commission, Public Works Advisory Board, Harbor Advisory Board, Community Promotions Committee, and Citizens Oversight Committee. DATED: January 19, 2007 I Bridgett Bauer, City Clerk is FINANCE ADMINISTRATION 595 Harbor Street 595 Harbor Street HARBOR DEPT. 1275 Embarcadero Road CITY ATTORNEY 955 Shasta Avenue FIRE DEPT. PUBLIC SERVICES 715 Harbor Street 955 Shasta Avenue POLICE DEPT. RECREATION & PARKS 970 Morro Bay Boulevard 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 — JANUARY 22, 2007 CLOSED SESSION — JANUARY 22, 2007 CITY HALL CONFERENCE ROOM - 5:00 P.M. 595 HARBOR ST., MORRO BAY, CA CS-1 GOVERNMENT CODE SECTION 54956.8; REAL PROPERTY TRANSACTIONS. Instructing City's real property negotiator regarding the price and terms of payment for the purchase, sale, exchange, or lease of real property as ® to two (2) parcels. Property: 1205 Embarcadero, Lease Site 122-123/122W-123W. Negotiating Parties: George Leage and City of Morro Bay. Negotiations: Lease Terms and Conditions. Property: Embarcadero and Market Street property. Negotiating Parties: West Millennium Homes and City of Morro Bay. Negotiations: Voluntary Purchase and Sale/ENA/DA. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. u PUBLIC SESSION — JANUARY 22, 2007 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 PUBLIC SERVICES DEPARTMENT PERSONNEL CHANGES; (PUBLIC ® SERVICES) RECOMMENDATION: a) reclassify the Office Assistant IV to Administrative/Utilities Technician; b) authorize the promotion of the Assistant Planner to Associate Planner; c) reclassify the Senior Planner to Planning Manager; d) reclassify the Associate Civil Engineer to Senior Civil Engineer; and, e) approve the amended Capital Projects Manager job specifications and salary range. A-2 CHANGES TO ACCOUNTING PERSONNEL JOB DESCRIPTIONS; (FINANCE) RECOMMENDATION: Approve the job descriptions as amended. A-3 RESOLUTION NO. 06-07 ADOPTING MEMORANDUM OF UNDERSTANDING WITH THE MORRO BAY FIRE FIGHTERS AND RELATED COMPENSATION; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 06-07. A-4 APPROVAL OF BUDGET CALENDAR FOR FISCAL YEAR 2007-2009; (FINANCE) ® RECOMMENDATION: Approve the schedule of events leading to adoption of the bi-annual budget. A-5 RESOLUTION NO. 04-07 APPROVING MORRO BAY GARBAGE SERVICE INTERIM YEAR RATE ADJUSTMENT APPLICATION AND ADJUSTING SOLID WASTE COLLECTION RATES; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 04-07. A-6 RESOLUTION NO. 05-07 APPROVING SUBMISSION OF STATE TRANSIT ASSISTANCE GRANT APPLICATIONS; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 05-07. A-7 NOTICE OF COMPLETION FOR SOUTH BAY BOULEVARD OVERLAY PROJECT; (PUBLIC SERVICES) RECOMMENDATION: Accept the project as completed by Union Asphalt, Inc., and authorize the filing of the Notice of Completion. A-8 PROCLAMATION DECLARING FEBRUARY 2007 AS "AMERICAN HEART MONTH"; (FIRE) ® RECOMMENDATION: Adopt Proclamation. 3 A-9 INVESTMENT REPORT— DECEMBER 2006; (FINANCE) ® RECOMMENDATION: Receive report for information. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-I COMMUNITY DEVELOPMENT BLOCK GRANT CLOSEOUT OF HOUSING REHABILITATION GRANT; (PUBLIC SERVICES) RECOMMENDATION: Obtain public input, and authorize staff to submit the reports with a final closeout letter to CDBG to close the grant. B-2 CONSIDERATION OF NORTH COAST TRANSIT PLAN; (ADMINISTRATION) RECOMMENDATION: Conduct a public hearing, and adopt the plan with the exceptions listed in the staff report. B-3 INTRODUCTION OF CITY GOALS AND FISCAL OBJECTIVES FOR FISCAL YEARS 2007 - 2009 AND CONTINUATION TO JANUARY 29, 2007; (FINANCE) RECOMMENDATION: Consider the suggestions and input; receive testimony ® from Advisory Group Representatives and members of the public; and, continue the discussion to Monday, January 29, 2007 at 6:00 p.m. in the Veterans' Memorial Building. B-4 CONSIDERATION OF SAN LUIS OBISPO COUNCIL OF GOVERNMENTS NORTH COAST SCENIC BYWAY CORRIDOR PLAN, SCENIC BYWAY LOGO AND BYWAY COMMUNITY GATEWAY PROGRAM; (PUBLIC SERVICES) RECOMMENDATION: This item has been pulled from the agenda. B-5 ORDINANCE NO. 522 ADOPTING AMENDMENTS TO TITLE 16 OF THE MORRO BAY MUNICIPAL CODE UPDATING THE SUBDIVISION REGULATIONS AND ENVIRONMENTAL DOCUMENT - FIRST READING AND INTRODUCTION; (PUBLIC SERVICES) RECOMMENDATION: Approve first reading and introduction of Ordinance No 522. C. UNFINISHED BUSINESS —NONE. n D. NEW BUSINESS ® D-I MID -YEAR BUDGET ADJUSTMENTS FOR FISCAL YEAR 2006/2007; (FINANCE) RECOMMENDATION: Conduct a public hearing regarding the proposed budget adjustments; approve the proposed changes; and, direct staff to return with a resolution to authorize the approved budget adjustments. D-2 REQUEST FOR CITY AUTHORIZATION TO APPLY FOR A PERMIT FOR AN OUTDOOR MARITIME MUSEUM IN THE FRONT STREET PARKING LOT; (PUBLIC SERVICES) RECOMMENDATION: Discuss and direct staff accordingly. D-3 DISCUSSION AND STATUS OF AD -HOC COMMITTEE WORK PROGRAMS - A) NEW FUTURES COMMITTEE WORK PROGRAM; AND B) VIEW SHED PROTECTION AD -HOC COMMITTEE WORK PROGRAM. RECOMMENDATION: Review reports, discuss and direct staff accordingly. ® D4 DISCUSSION ON SENDING A LETTER TO THE STATE DEPARTMENT OF FISH & GAME REGARDING BACK BAY HUNTING; (HARBOR) RECOMMENDATION: Discuss and direct staff accordingly. D-5 REPORT ON EX-PARTE CONTACT POLICY; (CITY COUNCIL) RECOMMENDATION: Direct staff to bring back a policy statement to be included in the City's Policy and Procedures Manual. 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 1091139am Y ila 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 22, 2007 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Peters called the meeting to order at 5:00 p.m PRESENT: Janice Peters Mayor Melody DeMeritt Councilmember Rick Grantham Councilmember William Peirce Councilmember (arrived at 5:10 p.m.) Betty Winholtz Councilmember STAFF: Robert Hendrix City Manager Robert Schultz City Attorney CLOSED SESSION MOTION: Councilmember Winholtz moved the meeting be adjourned to Closed Session. The motion was seconded by Councilmember Grantham 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 as to two (2) parcels. Property: 1205 Embarcadero, Lease Site 122-123/122W-123W. Negotiating Parties: George Leage and City of Morro Bay. Negotiations: Lease Terms and Conditions. Property: Embarcadero and Market Street property. Negotiating Parties: West Millennium Homes and City of Morro Bay. Negotiations: Voluntary Purchase and Sale/ENA/DA. The meeting adjourned to Closed Session at 5:00 p.m. and returned to regular session at 5:40 p.m. MOTION: Councilmember Grantham moved the meeting be adjourned. The motion was seconded by Councilmember Winholtz and unanimously carried. (5-0) The meeting adjourned at 5:40 p.m. 11 Ll 11 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 22, 2007 VETERANS MEMORIAL HALL - 6:00 P.M. Mayor Peters called the meeting to order at 6:00 p.m PRESENT: Janice Peters Mayor Melody DeMeritt Councilmember Rick Grantham Councilmember William Peirce Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix Andrea Lueker Robert Schultz Bridgett Bauer Rick Algert Bruce Ambo Bill Boucher Janeen Burlingame Frank Cunningham John DeRohan Rachel Grossman Mike Pond Mike Prater Susan Slayton ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR'S REPORTS & ANNOUNCEMENTS City Manager Assistant City Manager City Attorney City Clerk Harbor Director Public Services Director Capital Projects Manager Management Analyst City Engineer Police Chief Assistant Planner Fire Chief Senior 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 The following people expressed support for Item D-2 (Request for City Authorization to Apply for a Permit for an Outdoor Maritime Museum in the Front Street Parking Lot): Baxter Boyington, Sid Bennett, Garry Johnson, David Weisman, Cecelia Boudreau, Dana McClish, Gary Ream, Roger Castle, Larry Newland, Shaun Harris, Keith Kelsey, Judy Ann Cross, James Moody, Roger Ewing, Ed Griggs, and Steve Rebuck. Keith Taylor read a letter from Friends of the Fire Department requesting that the City Council place the completion of the Harbor Street Fire Station project as a top priority. MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 22, 2007 Betty Forsythe addressed the importance of funding for the completion of the Harbor Street Fire Station project. Jim Nance addressed government funding and the increase in citizens' services fees. Ed Biaggini, Chairman of the Community Promotions Committee, announced the Committee voted unanimously to request an immediate increase to its budget by $50,000. He noted the decrease in tourism in the past year and requested the City Council agendize this request in order to promote tourism. Anita Ayoub, Member of Morro Bay Pups, expressed concern with the conditions required of them in order to have a dog park at Del Mar Park. Bill Newman, Morro Bay New Futures Committee Member, reported on the Committee's progress and said they will have a complete report to Council by July 2007. Marla Bruton expressed concern with the City's water, the water main breaks and the sewer system. She stated she had requested GPS records for the sewer system from staff and received incomplete records. David Weisman, Community Promotions Committee Member, reported on the marketing plan for the City. Susan Brown, General Manager for Dial -A -Ride, announced services provided by Dial - A -Ride. Roger Ewing addressed Item A-] (Public Services Department Personnel Changes) and requested Council considers the financial consequences that go along with this item. He also addressed the presentation made by LAFCO at last week's Planning Commission meeting on annexing property outside of Morro Bay, and he noted they presented a map that included the back bay, which he supports. Ken Vesterfelt expressed support for the funding of public safety and promoting the City. Alex Beattie stated the wild turkeys by the State Park should be protected and promoted by the City. He also expressed opposition to not maintaining the three -minute public comment allotment. John Barta, Co -Chairman of the View Shed Protection Ad -Hoc Committee, stated the Committee voted 6-5 that private view protection should not be pursued. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 22, 2007 Dorothy Cutter, Member of the View Shed Protection Ad -Hoc Committee, stated the majority of the Committee voted to not pursue private view protection. Joey Racano stated the proposed maritime museum is a smoke screen for the power plant to remain in the City. He also stated he protested the Winter Bird Festival because of the leadership in charge of the Festival, and how they should have nothing to do with nature based on certain actions taken against the environment in the area. Bill Woodson, Board Member for the Morro Bay Bird Festival, fully endorsed the principles and how the Festival is managed. Mayor Peters closed the hearing for public comment. Mayor Peters called for a break at 7:12 p.m.; the meeting resumed at 7:28 p.m DECLARATION OF FUTURE AGENDA ITEMS Councilmember DeMeritt requested to agendize the discussion on the creation of an ® urban forestry management plan using a phased approach; Councilmember Winholtz concurred. 11 Councilmember Winholtz requested to agendize the status of an off -leash dog park at Del Mar Park; Councilmember Peirce 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-] PUBLIC SERVICES DEPARTMENT PERSONNEL CHANGES; (PUBLIC SERVICES) RECOMMENDATION: a) reclassify the Office Assistant IV to Administrative/Utilities Technician; b) authorize the promotion of the Assistant Planner to Associate Planner; c) reclassify the Senior Planner to Planning Manager; d) reclassify the Associate Civil Engineer to Senior Civil Engineer; and, e) approve the amended Capital Projects Manager job specifications and salary range. M ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 22, 2007 A-2 CHANGES TO ACCOUNTING PERSONNEL JOB DESCRIPTIONS: (FINANCE) RECOMMENDATION: Approve the job descriptions as amended. A-3 RESOLUTION NO. 06-07 ADOPTING MEMORANDUM OF UNDERSTANDING WITH THE MORRO BAY FIRE FIGHTERS AND RELATED COMPENSATION; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 06-07. A-4 APPROVAL OF BUDGET CALENDAR FOR FISCAL YEAR 2007-2009; (FINANCE) RECOMMENDATION: Approve the schedule of events leading to adoption of the bi-annual budget. A-5 RESOLUTION NO. 04-07 APPROVING MORRO BAY GARBAGE SERVICE ® INTERIM YEAR RATE ADJUSTMENT APPLICATION AND ADJUSTING SOLID WASTE COLLECTION RATES; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 04-07. A-6 RESOLUTION NO. 05-07 APPROVING SUBMISSION OF STATE TRANSIT ASSISTANCE GRANT APPLICATIONS; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 05-07. A-7 NOTICE OF COMPLETION FOR SOUTH BAY BOULEVARD OVERLAY PROJECT; (PUBLIC SERVICES) RECOMMENDATION: Accept the project as completed by Union Asphalt, Inc., and authorize the riling of the Notice of Completion. A-8 PROCLAMATION DECLARING FEBRUARY 2007 AS "AMERICAN HEART MONTH'; (FIRE) RECOMMENDATION: Adopt Proclamation. E ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 22, 2007 A-9 INVESTMENT REPORT — DECEMBER 2006; (FINANCE) RECOMMENDATION: Receive report for information. Mayor Peters pulled Items A-1 and A-2 to be discussed in conjunction with Item D-1 (Mid - Year Budget Adjustments For Fiscal Year 2006/2007); Councilmember Winholtz pulled Items A-4, A-5, and A-6 from the Consent Calendar; and Councilmember DeMeritt pulled Item A-9. MOTION: Councilmember Peirce moved the City Council approve Items A-3, A-7 and A-8 of the Consent Calendar. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) A-1 PUBLIC SERVICES DEPARTMENT PERSONNEL CHANGES; (PUBLIC SERVICES) Public Services Director Bruce Ambo reviewed the requested personnel amendments in ® the Public Services Department. MOTION: Councilmember Winholtz moved the City Council continue discussion on this item to the January 29, 2007 Special City Council meeting. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) u A-2 CHANGES TO ACCOUNTING PERSONNEL JOB DESCRIPTIONS: (FINANCE) Finance Director Susan Slayton reviewed the requested job description amendments in the Finance Department. MOTION: Councilmember DeMeritt moved the City Council approve Item A-2 of the Consent Calendar. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) A4 APPROVAL OF BUDGET CALENDAR FOR FISCAL YEAR 2007-2009; (FINANCE) Councilmember Winholtz requested clarification on why "spring break" was listed on the budget calendar. Finance Director Susan Slayton responded it was when staff might take family vacations. R ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 22, 2007 MOTION: Councilmember Winholtz moved the City Council approve Item A-4 of the Consent Calendar. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) A-5 RESOLUTION NO. 04-07 APPROVING MORRO BAY GARBAGE SERVICE INTERIM YEAR RATE ADJUSTMENT APPLICATION AND ADJUSTING SOLID WASTE COLLECTION RATES; (ADMINISTRATION) Councilmember Winholtz asked why the proposed increase is higher than the cost of living increase. City Manager Robert Hendrix responded it is consistent with the contract the City entered into with Morro Bay Garbage Service. Councilmember DeMeritt requested the mini -can service charge not be raised in order to encourage recycling. MOTION: Councilmember DeMeritt moved the City Council direct Morro Bay Garbage Service to revise their rate schedule with no rate increase on mini -can service. The motion was seconded by Councilmember Winholtz ® and failed with Councilmember Grantham, Councilmember Peirce and Mayor Peters voting no. (2-3) MOTION: Mayor Peters moved the City Council approve Item A-5 of the Consent Calendar. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) A-6 RESOLUTION NO. 05-07 APPROVING SUBMISSION OF STATE TRANSIT ASSISTANCE GRANT APPLICATIONS; (ADMINISTRATION) Councilmember Winholtz stated she would like to see one vehicle removed from the City's request list, and perhaps obtaining a generator in another way. MOTION: Councilmember Peirce moved the City Council approve Item A-6 of the Consent Calendar. The motion was seconded by Councilmember Grantham and carried with Councilmember Winholtz voting no. (4-1) A-9 INVESTMENT REPORT — DECEMBER 2006; (FINANCE) Councilmember DeMeritt requested clarification on the investment report. Finance Director Susan Slayton reviewed the City's Investments for December 2006. 7 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 22, 2007 MOTION: Councilmember Grantham moved the City Council approve Item A-9 of the Consent Calendar. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 COMMUNITY DEVELOPMENT BLOCK GRANT CLOSEOUT OF HOUSING REHABILITATION GRANT; (PUBLIC SERVICES) Housing Programs Coordinator Joan Drake stated the Community Development Block Grant (CDBG) established a Housing Rehabilitation Program in four target income group areas of Morro Bay. All 27 people on the waiting list were offered applications; I applications were received. A total of $146,956 was disbursed; $137,088 for four, no - interest, deferred payment loans and $9,868 for two grants. The remaining 5 applicants did not meet required qualifications. Ms. Drake recommended the City Council open the hearing for public comment, and authorize staff to submit the reports with a final closeout letter to CDBG to close the grant. ® Mayor Peters opened the hearing for public comment; there being no comment, Mayor Peters closed the public comment hearing. MOTION: Councilmember Peirce moved the City Council authorize staff to submit the reports with a final closeout letter to Community Development Block Grant to close the grant. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) B-2 CONSIDERATION OF NORTH COAST TRANSIT PLAN; (ADMINISTRATION) Management Analyst Janeen Burlingame stated in October 2005, the San Luis Obispo Council of Governments (SLOCOG) awarded a contract to IBI Consulting Group to develop the North Coast Plan, which would include an update of the City's Short Range Transit Plant (SRTP). The SRTP is a five-year action plan with recommendations for improvements to operate transit services more efficiently and effectively with the existing resources available. Ms. Burlingame stated the Public Works Advisory Board recommends the City Council adopt Recommendation #3 only with regard to bullets 1, 3 and 4 pertaining to limiting subscription bookings to 4045% of daily trips and establishing a 20 minute pick up window as the City already creates subscription trip templates each week. Doug Langille with IBI Group presented the draft plan to the City Council. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 22, 2007 Mayor Peters opened the hearing for public comment. Joe Hoeflich stated one of the target groups not included in the report was relating to those with disabilities. Mayor Peters closed the public comment hearing. Councilmember Winholtz stated based on this report, Morro Bay has one of the lowest median income and highest poverty levels in the area, and she is grateful to the City and San Luis Obispo Council of Governments for this grant. She also suggested amendments relating to a needed commuter van to Atascadero State Hospital, and the consideration of children's passes. Councilmember Peirce complimented the management of Dial -A -Ride for their quality of service. He expressed support for the Public Works Advisory Board recommendation on the North Coast Transit Plan. Councilmember Grantham, Councilmember DeMeritt and Mayor Peters also expressed support for the Public Works Advisory Board recommendations. MOTION: Councilmember Winholtz moved the City Council approve the North Coast Transit Plan with the following amendments: a) Page vii, amend the last point in Recommendation 413 to read "If need and interest are sufficient, Ride -On should organize a varpool on a demonstration basis through interested employers, i.e. Atascadero State Hospital'; and add Recommendation #16 to read: "Children's' passes are to be considered at the appropriate time." The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) B-3 INTRODUCTION OF CITY GOALS AND FISCAL OBJECTIVES FOR FISCAL YEARS 2007 - 2009 AND CONTINUATION TO JANUARY 29, 2007; (FINANCE) City Manager Robert Hendrix requested the City Council consider the assembled suggestions and input, and receive testimony from advisory group representatives, interested parties and other members of the public. He also recommended the City Council continue discussion on this item to the January 29, 2007 Special City Council meeting. Mayor Peters opened the hearing for public comment. 0 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 22, 2007 Alex Beattie expressed opposition to hunting in the bay, and stated the City should obtain control over property that affects citizens and tourists in the State Park area, which is in the City's sphere of influence. Rick Gilligan, Morro Bay Pups Board Member, requested Council add to the list of priorities the off -leash dog park within the City of Morro Bay. Nancy Johnson, Chair of Planning Commission, stated the Commission voted unanimously to request the consideration of another planner position to handle long-term planning issues. Bill Woodson, Vice -Chair of the Planning Commission, also requested Council's consideration of adding another planner to staff. He reviewed the Public Services tracking project list. Joe Hoeflich requested the Council add an off -leash dog park to the priority list. John Weiss requested Council consider making an investment by increasing funds for ® promoting the City in order to benefit businesses and City events. He noted an increase in promotions would benefit the City with increases to the City's tax base that would support other priorities. Ed Biaggini stated the Council should consider generating more revenue and increasing business opportunity in the City. Stan Trapp stated the Council should concentrate on increasing revenue for the City as opposed to mitigating expenses. Roger Ewing requested Council consider the simple needs of residents, which would include the need for a code enforcement officer, a high school resource officer, street paving, and tree trimming. Mayor Peters closed the public comment hearing. Councilmember DeMeritt stated she would like the priority list to be reduced by considering what the City must do legally this year, how will it fit in the budget, and what would be of environmental benefit. Councilmember Peirce stated the priorities requested by residents in the passing of Measure Q should be considered, i.e. an increase in fire safety. 10 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 22, 2007 MOTION: Councilmember Peirce moved the City Council continue the consideration of City goals and fiscal objectives for Fiscal Years 2007-08 and 2008-09 to the January 29, 2007 Special City Council meeting. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) B-4 CONSIDERATION OF SAN LUIS OBISPO COUNCIL OF GOVERNMENTS NORTH COAST SCENIC BYWAY CORRIDOR PLAN, SCENIC BYWAY LOGO AND BYWAY COMMUNITY GATEWAY PROGRAM; (PUBLIC SERVICES) This item was pulled from the agenda. B-5 ORDINANCE NO. 522 ADOPTING AMENDMENTS TO TITLE 16 OF THE MORRO BAY MUNICIPAL CODE UPDATING THE SUBDIVISION REGULATIONS AND ENVIRONMENTAL DOCUMENT - FIRST READING AND INTRODUCTION; (PUBLIC SERVICES) ® Senior Planner Mike Prater stated the City Council has worked through all of the chapters of the proposed Subdivision Ordinance and directed staff to return with substantial revisions to Chapters 10 and 12. Council has also requested additional information comparing various elements to better understand the consequences before making a decision that best fits the community's needs. Mr. Prater recommended the City Council open the public hearing for review of the draft Subdivision Regulations of the City's Municipal Code Update-, receive public testimony; approve the Negative Declaration; and, consider adopting Ordinance No. 522 for first reading and introduction by number and title. Mayor Peters opened the hearing for public comment. James Maul stated this proposed ordinance would allow him to build the way he would Re. He requested Council consider adding more open space and less on -site parking requirements to the ordinance. Mayor Peters closed the public comment hearing. Councilmember Winholtz reviewed suggested amendments to the proposed Subdivision Ordinance. Mayor Peters called for a break at 8:48 p.m.; the meeting resumed at 8:55 p.m. Councilmember DeMeritt also reviewed suggested amendments to the proposed ® Subdivision Ordinance. ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 22, 2007 MOTION: Councilmember Peirce moved the City Council direct staff to amend Ordinance No. 522 as indicated by Council, and return this item as a public hearing. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) C. UNFINISHED BUSINESS — NONE D. NEW BUSINESS D-1 MID -YEAR BUDGET ADJUSTMENTS FOR FISCAL YEAR 2006/2007; (FINANCE) Finance Director Susan Slayton presented the requested budget adjustments, and a mid- year budget performance report for funds with adopted budgets and a departmental breakdown report on the General Fund to show how each department is performing. The requested additions to appropriations are for unanticipated costs, routine costs that were ® missed in the original budget, and adjustments to streamline operations. Ms. Slayton recommended the City Council receives input from staff regarding recommended adjustments, and approve the proposed changes. u MOTION: Councilmember Winholtz moved the City Council continue discussion on this item to the January 29, 2007 Special City Council meeting. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) D-2 REQUEST FOR CITY AUTHORIZATION TO APPLY FOR A PERMIT FOR AN OUTDOOR MARITIME MUSEUM IN THE FRONT STREET PARKING LOT; (PUBLIC SERVICES) Assistant Planner Rachel Grossman stated the applicants are requesting that the City Council grant authorization for them to apply for a Conditional Use Permit (CUP) for the construction of an outdoor Maritime Museum within portions of the Front Street right-of- way and the City's Front Street parking lot. The project site is governed by the Waterfront Master Plan and is located within the Visitor Serving/Special Design Criteria Overlay zone district, where the establishment of an indoor museum is permitted with the approval of a Minor Use Permit. Due to the outdoor nature of the proposed Maritime Museum, a CUP is required. In addition, since the project site is located within the original jurisdiction of the California Coastal Commission (CCC), the project is also required to obtain a Coastal Development Permit from the CCC subsequent to obtaining a 12 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 22, 2007 CUP from the City. Ms. Grossman recommended the City Council review and discuss the positive and negative aspects of the project, and direct staff accordingly. MOTION: Councilmember Winholtz moved the City Council direct staff to move forward with the proposed Maritime Museum project. The motion was seconded by Councilmember Grantham. Councilmember Peirce stated the concept of this project has been approved by past City Councils with no avail. Mayor Peters expressed concern that the costs that the applicant cannot provide will fall on the Citv. Councilmember DeMeritt stated the proposed parking lot sits empty most of the time, and the north Embarcadero businesses would like to have something to capture visitors' attention. She said the City should promote tourism with projects like this. ® VOTE: The motion carried unanimously. (5-0) D-3 DISCUSSION AND STATUS OF AD -HOC COMMITTEE WORK PROGRAMS - A) NEW FUTURES COMMITTEE WORK PROGRAM; AND Councilmember DeMeritt reviewed the status report provided by the Morro Bay North Embarcadero Waterfront (NEW) Futures Committee, which included the background of the Committee, the project assumptions and limitations associated with the power plant, work completed by the Committee and work ahead for the Committee. B) VIEW SHED PROTECTION AD -HOC COMMITTEE WORK PROGRAM. Mayor Peters reviewed the status report provided by the View Protection Ad -Hoc Committee. She noted the Committee unanimously agreed that this was a fmal report and they would not meet on this issue again. Councilmember Winholtz suggested the Planning Commission review the background information from this Committee. Councilmember Grantham stated he does not feel the City is in the business of regulating views, and he philosophically does not support moving forward with this issue. 13 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 22, 2007 Councilmember DeMeritt stated the topic of this group should have been anti- mansionization. She said their report would be good information for the Planning Commission to read. Councilmember Peirce stated he is reluctant to send this information to the Planning Commission. MOTION: Mayor Peters moved the City Council direct staff to add the floor area ratios (FAR) concept to the discussion of variable height, size, bulk and setbacks. The motion was seconded by Councihnember DeMeritt and carried with Councilmember Grantham and Councilmember Peirce voting no. (3-2) D-4 DISCUSSION ON SENDING A LETTER TO THE STATE DEPARTMENT OF FISH & GAME REGARDING BACK BAY HUNTING; (HARBOR) This item was pulled from the agenda ® MOTION: Councilmember Winholtz moved the City Council go beyond 11:00 p.m. The motion was seconded by Councilmember DeMeritt and carried with Councilmember Peirce voting no. (4-1) D-5 REPORT ON EX -PARTS CONTACT POLICY; (CITY COUNCIL) MOTION: Councilmember Winholtz moved the City Council continue this item to the February 13, 2007 City Council meeting. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) ADJOURNMENT The meeting adjourned at 11:05 p.m. Recorded by: Bridgett Bauer � City Clerk 11 14 City of Morro Bay City Council Agenda Mission Statement The City of Morro Bay is dedicated to the preservation and enhancement of the quality of life. The City shall be committed to this purpose and will provide a level of municipal service and safety consistent with and responsive to the needs of the public. REGULAR MEETING — JANUARY 8, 2007 CLOSED SESSION — JANUARY 8, 2007 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 Attorney. IT IS NOTED THAT THE CONTENTS OF CLOSED SESSION MEETINGS ARE CONFIDENTIAL AND EXEMPT FROM DISCLOSURE. PUBLIC SESSION — JANUARY 8, 2007 VETERANS MEMORIAL HALL - 6:00 P.M. 209 SURF ST., MORRO BAY, CA ESTABLISH QUORUM AND CALL TO ORDER MOMENT OF SILENCE PLEDGE OF ALLEGIANCE MAYOR AND COUNCILMEMBERS ANNOUNCEMENTS & PRESENTATIONS CLOSED SESSION REPORT PUBLIC COMMENT PERIOD - Members of the audience wishing to address the Council on City business matters (other than Public Hearing items under Section B) may do so at this time. To increase the effectiveness of the Public Comment Period, the following rules shall be followed: • When recognized by the Mayor, please come forward to the podium and state your name and address for the record. Comments are to be limited to three minutes. • All remarks shall be addressed to Council, as a whole, and not to any ® individual member thereof. • The Council respectfully requests that you refrain from making slanderous, profane or personal remarks against any elected official, commission and/or staff. • Please refrain from public displays or outbursts such as unsolicited applause, comments or cheering. • Any disruptive activities that substantially interfere with the ability of the City Council to carry out its meeting will not be permitted and offenders will be requested to leave the meeting. • Your participation in City Council meetings is welcome and your courtesy will be appreciated. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk, (805) 772-6205. Notification 72 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. COUNCIL DECLARATION OF FUTURE AGENDA ITEMS A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are ® approved without discussion. 2 ® A -I APPROVAL OF MINUTES FOR THE REGULAR CITY COUNCIL MEETINGS ON NOVEMBER 13, 2006 AND DECEMBER 11, 2006, AND SPECIAL MEETING ON DECEMBER 6, 2006; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 INVESTMENT REPORT - NOVEMBER 2006; (FINANCE) RECOMMENDATION: Receive report for information. A-3 RESOLUTION NO. 01-07 ADOPTING THE CITY'S INVESTMENT POLICY: (FINANCE) RECOMMENDATION: Adopt Resolution No. 01-07. A4 RESOLUTION NO. 02-07 ADOPTING AGREEMENT WITH STATE BOARD OF EQUALIZATION TO ALLOW THE HDL COMPANIES TO EXAMINE HALF CENT (MEASURE Q) SALES TAX INFORMATION FOR THE BENEFIT OF THE CITY; (FINANCE) RECOMMENDATION: Adopt Resolution No. 02-07. ® A-5 RESOLUTION NO. 03-07 PROVIDING WORKER'S COMPENSATION COVERAGE FOR CERTAIN CITY VOLUNTEERS PURSUANT TO THE PROVISIONS OF SECTION 3363.5 OF THE LABOR CODE; (ADMINISTRATION) 11 RECOMMENDATION: Adopt Resolution No. 03-07. A-6 BUILDING INSPECTION DIVISION PERSONNEL CHANGES; (PUBLIC SERVICES) RECOMMENDATION: Approve the amended Building Official job specifications, and authorize promotion and replacement of the Building Inspector. B. PUBLIC HEARINGS. REPORTS & APPEARANCES B-1 HEARING ON WATER OUTAGE PROCESS AND PUBLIC NOTICE PROCEDURES FOR SAFETY EMERGENCY ISSUES; (PUBLIC SERVICES) RECOMMENDATION: Conduct public hearing and approve procedures for nitrate public notification. 3 B-2 APPEAL OF THE PLANNING COMMISSIONS CONDITIONS FOR A 9 VARIANCE LOCATED AT 630 AVALON STREET; (PUBLIC SERVICES) RECOMMENDATION: Uphold the Planning Commission's conditions of approval and deny the appeal. C. UNFINISHED BUSINESS C-I DEVELOPMENT IMPACT FEE PROGRAM OPTIONS AND CONTRACT AWARD; (PUBLIC SERVICES) RECOMMENDATION: Award a contract to Munifmancial in the amount of $25,000 and authorize the City Manager to execute a contract for justification of the existing development impact fee program; identification of recovery opportunities to mitigate the impacts of development; and, augment the budget to allocate $9,000 respectively from the General Fund, Water and Collections funds for this project. D. NEW BUSINESS D-1 CONSIDERATION OF THE CURRENT FIRE STATION PROJECT CONCEPT AND DISCUSSION OF AN ALTERNATIVE PROJECT THAT INCLUDE ALL ASPECTS OF THE REBUILD PROJECT; (PUBLIC SERVICES) RECOMMENDATION: Discuss and direct staff accordingly; and, approve an amendment to the existing design contract with Fraser-Seiple Architects to complete the Phase 1 Apparatus Bay Project plans and specifications. D-2 INTERIM URGENCY ORDINANCE NO. 524 PLACING A MORATORIUM ON MARIJUANA DISPENSARIES WITHIN THE CITY; (CITY ATTORNEY) RECOMMENDATION: Adopt Interim Urgency Ordinance No. 524 to place a 45-day moratorium on the establishment of Medical Marijuana Dispensaries in the City of Morro Bay in order to give Staff and Council an opportunity to consider and study all aspects of this subject prior to imposing regulations. D-3 RESPONSE TO CITY COUNCIL REQUEST FOR REPORT ON THE STATUS OF CONTRACT NEGOTIATIONS WITH AGP VIDEO; (ADMINISTRATION) RECOMMENDATION: Discuss and direct staff accordingly. D-4 CITY COUNCIL DISCRETIONARY APPOINTMENTS TO VARIOUS BOARDS AND COMMITTEES; (ADMINISTRATION) RECOMMENDATION: Make appropriate Council appointments to various ® Boards and Committees. 13 0 E. ADJOURNMENT THIS AGENDA IS SUBJECT TO AMENDMENT UP TO 72 HOURS PRIOR TO THE DATE AND TIME SET FOR THE MEETING. PLEASE REFER TO THE AGENDA POSTED AT CITY HALL FOR ANY REVISIONS OR CALL THE CLERK'S OFFICE AT 772-6200 FOR FURTHER INFORMATION. COPIES OF STAFF REPORTS OR OTHER PUBLIC DOCUMENTATION RELATING TO EACH ITEM OF BUSINESS REFERRED TO ON THIS AGENDA ARE ON FILE IN THE OFFICE OF THE CITY CLERK AND AVAILABLE FOR PUBLIC INSPECTION AND REPRODUCTION AT COST AT CITY HALL, LIBRARY, AND MILLS STATIONERY. IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN A CITY MEETING, PLEASE CONTACT THE CITY CLERK'S OFFICE AT LEAST 24 HOURS PRIOR TO THE MEETING TO INSURE THAT REASONABLE ARRANGEMENTS CAN BE MADE TO PROVIDE ACCESSIBILITY TO THE MEETING. 5 ® MINUTES - MORRO BAY CITY COUNCIL CLOSED SESSION — JANUARY 8, 2007 CITY HALL CONFERENCE ROOM - 5:00 P.M. Mayor Peters called the meeting to order at 5:00 p.m PRESENT: Janice Peters Mayor Melody DeMeritt Councilmember Rick Grantham 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 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 Grantham and unanimously carried. (5-0) The meeting adjourned at 5:50 p.m. 0 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 8, 2007 VETERANS MEMORIAL HALL - 6:00 P.M. E Mayor Peters called the meeting to order at 6:00 p.m PRESENT: Janice Peters Mayor Melody DeMeritt Councilmember Rick Grantham Councilmember William Peirce Councilmember Betty Winholtz Councilmember STAFF: Robert Hendrix Andrea Lueker Robert Schultz Bridgett Bauer Rick Algert Bruce Ambo Bill Boucher Janeen Burlingame Frank Cunningham John DeRohan Mike Pond Mike Prater Susan Slayton City Manager Assistant City Manager City Attorney City Clerk Harbor Director Public Services Director Capital Projects Manager Management Analyst City Engineer 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. PUBLIC COMMENT The following people expressed support for placing a moratorium on marijuana dispensaries within the City: Nick Mendoza, Julie Ditmore, Nathan Ditmore, Anthony Randazo, Mary Lou Pritchard, and Lanny McKay. Katrina Swanson requested Council consideration to allow medical marijuana dispensaries in the City to assist those with chronic pain and illness. 2 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 8, 2007 Bill Woodson reported on Morro Bay Beautiful activities. He said the membership fee is S10.00 and they meet every Monday morning at Dom's prior to picking up trash. Jim Nance thanked the City for the Housing Rehabilitation Program. He addressed Item C-1 (Development Impact Fee Program Options and Contract Award) and stated the City should consider selecting a committee to examine the City's infrastructure and implementation of impact fees, and perhaps recapture these fees through developers. Ed Biaggini expressed concern with the lack of business activity in the City in 2006. Keith Taylor addressed Item D-I (Consideration of the Current Fire Station Project Concept and Discussion of an Alternative Project that Include all Aspects of the Rebuild Project) noting 65% of voters voted in support of Measure Q, and the top priority was for the fire station. He requested Council support in pursuing the second phase of the fire station rebuild project. David Weisman, Vice -Chairman of the Community Promotions Committee, announced SLOSEA whose goal is to study the environmental economy of the City. ® Garry Johnson addressed environmental facts on disposable products. David Nelson stated it is the City Council's duty to protect the estuary by opposing the modernization of the old power plant. Ken Vesterfelt announced the Cruisin' Car Show already has 285 cars registered, and the Firemen's Muster would be held in the City between June I't — 3`d this year. He noted there is low water pressure in North Morro Bay at this time. Joey Racano expressed opposition to the City's decision to give the power plant a 50-year lease extension, which will destroy the estuary. He said he would be protesting the Winter Bird Festival because of the hypocrisy of inviting people to the City to enjoy the nature of its birds while destroying the estuary. Mr. Racano also announced his candidacy to the State Central Committee Delegate in the 33`d Assembly District. Mayor Peters closed the hearing for public comment. Mayor Peters called for a break at 7:06 p.m.; the meeting resumed at 7:15 p.m. 3 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 8, 2007 DECLARATION OF FUTURE AGENDA ITEMS Councilmember DeMeritt requested to agendize discussion on sending a letter to the State Department of Fish & Game regarding hunting in the back bay; Councilmember Winholtz and Mayor Peters concurred. Councilmember DeMeritt requested to agendize discussion on sending a letter to the Regional Water Quality Control Board regarding the existing power plant NPDES permit; Councilmember Winholtz and Mayor Peters concurred. Councilmember Winholtz requested to agendize discussion on an Ex-Parte Contact Policy; Councilmember DeMeritt and Mayor Peters concurred. Councilmember Winholtz requested to agendize discussion on holding a transit unmet needs hearing; there was not consensus to agendize this item. A. CONSENT CALENDAR Unless an item is pulled for separate action by the City Council, the following actions are ® approved without discussion. A-1 APPROVAL OF MINUTES FOR THE REGULAR CITY COUNCIL MEETINGS ON NOVEMBER 13, 2006 AND DECEMBER 11, 2006, AND SPECIAL MEETING ON DECEMBER 6, 2006; (ADMINISTRATION) RECOMMENDATION: Approve as submitted. A-2 INVESTMENT REPORT - NOVEMBER 2006; (FINANCE) RECOMMENDATION: Receive report for information. A-3 RESOLUTION NO. 01-07 ADOPTING THE CITY'S INVESTMENT POLICY; (FINANCE) RECOMMENDATION: Adopt Resolution No. 01-07. A4 RESOLUTION NO. 02-07 ADOPTING AGREEMENT WITH STATE BOARD OF EQUALIZATION TO ALLOW THE HDL COMPANIES TO EXAMINE HALF CENT (MEASURE Q) SALES TAX INFORMATION FOR THE BENEFIT OF THE CITY; (FINANCE) 0 RECOMMENDATION: Adopt Resolution No. 02-07. 19 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 8, 2007 A-5 RESOLUTION NO. 03-07 PROVIDING WORKER'S COMPENSATION COVERAGE FOR CERTAIN CITY VOLUNTEERS PURSUANT TO THE PROVISIONS OF SECTION 3363.5 OF THE LABOR CODE; (ADMINISTRATION) RECOMMENDATION: Adopt Resolution No. 03-07. A-6 BUILDING INSPECTION DIVISION PERSONNEL CHANGES; (PUBLIC SERVICES) RECOMMENDATION: Approve the amended Building Official job specifications, and authorize promotion and replacement of the Building Inspector. Councilmember Winholtz pulled Items A-1, A-3, A-5 and A-6 from the Consent Calendar, Councilmember DeMeritt pulled Item A-2. ® MOTION: Councilmember Peirce moved the City Council approve Item A4 of the Consent Calendar. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) A-1 APPROVAL OF MINUTES FOR THE REGULAR CITY COUNCIL MEETINGS ON NOVEMBER 13, 2006 AND DECEMBER 11, 2006, AND SPECIAL MEETING ON DECEMBER 6, 2006; (ADMINISTRATION) Councilmember Winholtz noted citizens had requested their comments be included on the water nitrate item of the December 11, 2006 minutes. There was not consensus from the Council to amend the minutes. MOTION: Councilmember Winholtz 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 INVESTMENT REPORT - NOVEMBER 2006; (FINANCE) Councilmember DeMeritt requested clarification on the balance noted on the LAIF account. Finance Director Susan Slayton responded it is normal to draw funds from this account to ® meet cash flow needs. 5 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 8, 2007 MOTION: Councilmember DeMeritt moved the City Council approve Item A-2 of the Consent Calendar. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) A-3 RESOLUTION NO. 01-07 ADOPTING THE CITY'S INVESTMENT POLICY; (FINANCE) Councilmember Winholtz requested to add the definition of LAIF on page 9 of the glossary; and for information, noted an amendment to page 4. MOTION: Councilmember Winholtz moved the City Council approve Item A-3 of the Consent Calendar with the addition of the definition of LAIF in the glossary. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) A-5 RESOLUTION NO. 03-07 PROVIDING WORKER'S COMPENSATION COVERAGE FOR CERTAIN CITY VOLUNTEERS PURSUANT TO THE ® PROVISIONS OF SECTION 3363.5 OF THE LABOR CODE; (ADMINISTRATION) Councilmember Winholtz requested clarification on the fiscal impact of adding volunteers to the Worker's Compensation coverage. Assistant City Manager Andrea Lueker stated the coverage of adding all of the volunteers to Worker's Compensation coverage is $240 per year. She said this would substitute another policy that is $1,200 per year for accident insurance, which the City would discontinue. Councilmember DeMeritt requested to add the word "identified" volunteers to the title and first "Whereas" of the resolution; Council concurred. Councilmember Grantham expressed support for covering the City's volunteers under Worker's Compensation; however, the definition of volunteer should be clear. MOTION: Councilmember Winholtz moved the City Council approve Item A-5 of the Consent Calendar as amended. The motion was seconded by Councilmember DeMeritt and carried unanimously. (5-0) 3 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 8, 2007 A-6 BUILDING INSPECTION DIVISION PERSONNEL CHANGES; (PUBLIC SERVICES) Councilmember Winholtz asked when a job is hired within, and when is it advertised for the general public. City Attorney Robert Schultz responded the personnel rules and regulations describe promoting within the City. MOTION: Councilmember Winholtz moved the City Council approve Item A-6 of the Consent Calendar. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) Mayor Peters called for a break at 9:00 p.m.; the meeting resumed at 9:10 p.m. B. PUBLIC HEARINGS, REPORTS & APPEARANCES ® B-1 HEARING ON WATER OUTAGE PROCESS AND PUBLIC NOTICE PROCEDURES FOR SAFETY EMERGENOY ISSUES; (PUBLIC SERVICES) Staff was not present to introduce this item due to a water emergency, and Mayor Peters opened the hearing for public comment. Noah Smukler stated this hearing could be a gateway to contributing to potential challenges that the City may face in the future. He said the City should take a leadership role to make sure operations do not contribute to the potential of poisoning the City's water supply. Mr. Smukler stated this is an opportunity to hold up the idea of a tertiary or reclamation sewer treatment plant to increase water security and help to maintain future water supply. Joey Racano stated nitrate levels have doubled in Morro Bay. He said high nitrate levels could be fatal to children, and the City should have a better plan for emergency notification of its citizens. Bill Moyer expressed concern with the nitrate levels in Morro Bay and discussed the Los Osos sewer issue. Dawn Feuerberg stated a monthly newsletter should be distributed in water bills to the citizens advising of the City's switch to State water. She said dissemination of emergency notices should be delivered door to door when there is a problem with the ® quality of water. 7 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 8, 2007 Lars Tomonich stated high nitrate levels are a potential indication to larger problems. He said he found fish with tumors in the bay due to the high nitrates in the bay. Peter Risley expressed concern with the City's lack of notification of a dangerous situation with the high nitrate levels found in the City's water. He also expressed concem with the City's finances and infrastructure. Alon Perlman stated it would be valuable to test other water systems and conduct a larger spectrum of testing. Roger Ewing stated the issue at hand is the City's emergency notification process, and added the City should consider using volunteers to assist in emergency notification. Ray McKelligott stated immediate notification is necessary in the case of the safety of the City's drinking water. Jeff Hoefflich stated his wife was made ill by the contaminated water, and expressed concern with the lack of public notification. ® Mayor Peters closed the public comment hearing. Councilmember Peirce stated Council should know the various levels of emergencies. Councilmember Winholtz stated staff should meet with concerned citizens prior to the next meeting in order to devise a better plan, and she would like to be included in this meeting. Councilmember DeMeritt stated the nitrates found in the wells are the same as found in the bay. She said nitrate levels are high in the Morro wells, and there is a proposed study on fertilizers used in Little Morro Valley, which should be included in the next discussion on this issue. Councilmember Grantham stated reverse -osmosis does assist in water quality. He said there are safeguards with various levels of water quality, and everyone should be concerned with water quality. Mayor Peters stated the notification process would be discussed at the next meeting. E El MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 8, 2007 MOTION: Councilmember Winholtz moved the City Council direct staff to include in the next report the answers to questions from Council; meet with at least three residents and a Council Member in order to create the next report; and, improve the recommendations included in the report. The motion was seconded by Councilmember DeMeritt. Councilmember DeMeritt requested an amendment to the motion to include the proposed fertilizer study in Little Morro Valley. Councilmember Winholtz accepted the amendment to the motion. Councilmember Winholtz also requested to add to the motion to continue this item to the February 13, 2007 City Council meeting, and she would volunteer to meet with staff and the three citizens prior to the February 13, 2007 meeting. Councilmember DeMeritt accepted the amendment to the motion. VOTE: The motion carried unanimously. (5-0) ® B-2 APPEAL OF THE PLANNING COMMISSIONS CONDITIONS FOR A VARIANCE LOCATED AT 630 AVALON STREET; (PUBLIC SERVICES) Senior Planner Mike Prater stated on November 6, 2006, the Planning Commission considered the proposed application at a regularly scheduled public hearing. After considering public testimony, the Planning Commission moved to approve the variance requests with the added condition the staircase could not encroach into the area of the garage opening. As an alternative, a spiral staircase would fit and could be approved without the need for Council action. Mr. Prater recommended the City Council uphold the Planning Commissions conditions of approval and deny the appeal. John Belsher, attorney for the appellant, reviewed the history of the various permits for the remodel of this residence. He stated his client is appealing the Planning Commission decision and contends the project could not be built without slightly extending into the garage entrance of the driveway. John MacDonald, architect, stated there was no way to build a stairway that meets code without extending into the garage entrance. Julie Kelly, appellant, stated the alternative of having her garage door as a front entrance is not acceptable, and a spiral staircase is not feasible. She stated she has been working ® on this project for three years and the building permit has not expired. 0 ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 8, 2007 Mayor Peters opened the hearing for public comment; there being no comment, Mayor Peters closed the public comment hearing. Consensus of the City Council was to uphold the Planning Commission's conditions of approval and deny the appeal. MOTION: Councilmember Grantham moved the City Council uphold the Planning Commission's conditions of approval and deny the appeal. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) C. UNFINISHED BUSINESS C-1 DEVELOPMENT IMPACT FEE PROGRAM OPTIONS AND CONTRACT AWARD; (PUBLIC SERVICES) Public Services Director Bruce Ambo stated on March 7, 2006 the City Council directed staff to develop a Request for Proposals (RFP) for a development impact fee program for ® Council review and approval. On August 28, 2006 the Council directed that the RFP be solicited to study water, sewer, streets, law enforcement and fire protection facilities and to include second dwelling units and multi -family housing. Impact fees for storm water management were not included in the work scope but may be added in this development fee opportunities/constraints analysis for an additional cost of $5,000 per impact fee program. Mr. Ambo recommended the City Council award a contract to Munifinancial in the amount of $25,000 and authorize the City Manager to execute a contract for: a) justification of the existing development impact fee program; b) identification of recovery opportunities to mitigate the impacts of development; and c) augment the budget to allocate $9,000 respectively from the General Fund, Water and Collections funds for this project. C MOTION: Councilmember Peirce moved the City Council award a contract to Munifinancial in the amount of $25,000 and authorize the City Manager to execute a contract for justification of the existing development impact fee program; identification of recovery opportunities to mitigate the impacts of development; and, augment the budget to allocate $9,000 respectively from the General Fund, Water and Collections funds for this project. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) 10 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 8, 2007 D. NEW BUSINESS D-1 CONSIDERATION OF THE CURRENT FIRE STATION PROJECT CONCEPT AND DISCUSSION OF AN ALTERNATIVE PROJECT THAT INCLUDE ALL ASPECTS OF THE REBUILD PROJECT; (PUBLIC SERVICES) Fire Chief Mike Pond stated the redevelopment of the Fire Station 53 property at 715 Harbor Street is currently being pursued in a two -phased approach: first is to replace the existing apparatus bay using a 75% grant from the State Office of Emergency Services (OES) with 25% City matching funds, then in phase 2 to replace the administration/dormitory facilities. Sources of full funding for the second phase have not been identified, although proceeds from the sale of the "Cloisters" property have been earmarked for part of that effort. Chief Pond recommended the City Council approve an amendment to the existing design contract with Fraser-Seiple Architects to complete the Phase 1 Apparatus Bay Project plans and specifications. MOTION: Councilmember Peirce moved the City Council direct staff to proceed with Phase 1 of the Fire Station Project, and dedicate funding not to exceed $195,000 for the architects. The motion was seconded by Councilmember Winholtz and carried unanimously. (5-0) MOTION: Councilmember Peirce moved the City Council direct staff to return to Council with funding sources for the design of Phase II of the Fire Station Project. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) D-2 INTERIM URGENCY ORDINANCE NO. 524 PLACING A MORATORIUM ON MARIJUANA DISPENSARIES WITHIN THE CITY; (CITY ATTORNEY) City Attorney Robert Schultz stated the City has approved one Medical Marijuana Dispensary at 780 Market Street. This location is in the General Commercial zoning district, where the sale of drugs (medical marijuana) is allowed by right; and, the only permit required in both the Central and Commercial District for such a dispensary is a business license and the City cannot regulate or place conditions on the business. There is another application pending for another Medical Marijuana Dispensary at 2040 Main Street, which is in the Mixed Commercial/Residential Zone and a minor use permit is required. Staff issued a minor use permit since the sale of drugs (medical marijuana) is allowable in this zone district, and it was appealed to the Planning Commission. The City has received a number of inquiries regarding regulations and requirements for the establishment of Medical Marijuana Dispensaries, and indicated their intent to locate and operate such a facility in Morro Bay. Mr. Schultz recommended the City Council ® MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 8, 2007 consider Interim Urgency Ordinance No. 524 imposing a moratorium on Medical Marijuana Dispensaries in order to give staff and Council an opportunity to consider and study all aspects of this subject prior to imposing regulations. MOTION: Mayor Peters moved the City Council adopt Interim Urgency Ordinance No. 524 to place a 45-day moratorium on the establishment of Medical Marijuana Dispensaries in the City of Morro Bay in order to give Staff and Council an opportunity to consider and study all aspects of this subject prior to imposing regulations. The motion was seconded by Councilmember Peirce and carried unanimously. (5-0) D-3 RESPONSE TO CITY COUNCIL REQUEST FOR REPORT ON THE STATUS OF CONTRACT NEGOTIATIONS WITH AGP VIDEO; (ADMINISTRATION) City Manager Robert Hendrix stated he and Steve Mathieu of AGP Video discussed this issue and agreed more time is needed to discuss certain terms of the contract, and requested this issue be continued to the February 26, 2007 City Council meeting. ® MOTION: Councilmember Winholtz moved the City Council continue this item to the February 26, 2007 City Council meeting. The motion was seconded by Councilmember Grantham and carried unanimously. (5-0) D-4 CITY COUNCIL DISCRETIONARY APPOINTMENTS TO VARIOUS BOARDS AND COMMITTEES; (ADMINISTRATION) The City Council made the following appointments: COUNCIL SUBCOMMITTEE ON EMPLOYEE GRIEVANCES Bill Peirce Member Rick Grantham Member INTEGRATED WASTE MANAGEMENT AUTHORITY Melody DeMeritt Rick Grantham Designee Alternate COUNTY WATER RESOURCES ADVISORY COMMITTEE Betty Winholtz Delegate City Manager (or his designee) Alternate SAN LUIS OBISPO REGIONAL TRANSIT AUTHORITY Janice Peters Betty Winholtz Delegate Alternate 12 MINUTES - MORRO BAY CITY COUNCIL REGULAR MEETING — JANUARY 8, 2007 SAN LUIS OBISPO AREA COORDINATING COUNCIL (SLOCOG) Janice Peters Delegate Betty Winholtz Alternate CMC CITIZENS' ADVISORY COMMITTEE (2-year term) Rick Grantham Member AIR POLLUTION CONTROL DISTRICT Bill Peirce Member ECONOMIC OPPORTUNITY COMMISSION (3-year term) Rick Grantham Member ECONOMIC VITALITY CORPORATION Rick Grantham Member NATIONAL ESTUARY PROGRAM Melody DeMeritt Member Janice Peters Alternate CITY SELECTION COMMITTEE Janice Peters Member LEGISLATIVE DELEGATE Janice Peters Member JPA SUB -COMMITTEE Bill Peirce Member Betty Winholtz Member MOBILE HOME RENT CONTROL SUB -COMMITTEE Betty Winholtz Member Rick Grantham Member ADJOURNMENT - The meeting adjourned at 10:50 p.m. Recorded by: \� Bridgett Bauer ® City Clerk 13